Nike, Just Do It

Philip H. Knight
Founder & CEO, Nike, Inc.
Bowerman Drive
Beaverton, OR 97005-6453
Phone: 503-671-6453
Fax: 503-671-6300

Mr. Dennis Dwyer,
Senior Manager, Footwear Division
Research and Development
Subject: Managing Across Nike, Inc., Footwear Division

Dear Dennis,

Welcome to Nike, Inc. Footwear Division. Our year-to-date footwear sales represent 54% of total revenues for the Nike, brand and its subsidiaries. Your role in research and development strategically supports our company’s objectives as it strives to continuously outdistance our competitors in a capricious consumer market.
Your critical partnerships within the organization will include Vice President and CFO, Donald W. Blair, President, Mark G. Parker, Divisional Vice President and General Manager, Craig Zanon, Vice President, New Business Development, Clare L. Hamill, General Manager, Kirk Richardson, and our new Director of Communications, Jack Gold. These committed, knowledgeable, trend-setting groups of managers are here to support you and your teams. They are the chief cornerstones from which to build your network.

Within any organization there are two types of power structures, the formal structure, or chain of command; and the informal structure, the subculture. The former represents Nike’s senior management, their purpose, mission, and vision. The chief cornerstones of competitive advantage include innovation, quality, cost control, and speed. These qualities are often implemented more efficiently and effectively by informal, dynamic, and synergistic cross-functional teams. While senior management would like to believe their philosophy permeates the organization, it would be naive to do so.

Although you are new to your job, I feel it is important that I disclose some information I recently obtained concerning the R & D environment. Unfortunately, the previous administration had exploited the position leaving the R&D department guarded towards the new leadership. The resulting internal politics has reportedly resulted in mistrust, resistance, and power plays. I’ve often wondered how “honest, church-going, child-rearing, ethical people mutate into beings that reflect the lowest common denominators of human existence – all for the assumed benefits of what the next promotion or raise may bring.” (Sciacca, 2004) Overall the department has begun to heal. Shadows of suspicion and whispers of doubt will soon give way to organizational regeneration as you employ your strong interpersonal, technical, and leadership skills to rebuild trust.

Our senior management team is willing to accept the long-term consequences for the political environment that had permeated this division. In order to mitigate the scope, intensity, and duration of those consequences, we are committed to providing a compatible organizational infrastructure which includes fundamental skills, extensive training and education, and adequate incentives and rewards. We will commit the resources necessary to acquire needed technology and bring about any necessary changes in the organizational infrastructure.

Dennis, your task is to maximize Nike’s human potential in order to execute the processes required to achieve Nike’s strategic objectives. Assembling and maintaining cross-functional teams will enable your division to realize success through the effective collaboration of Nike’s global employee population. Encourage employee involvement, work to obtain buy-in from many sources. Earlier, I introduced you to key individuals within the organization whose strategic alliances are critical to your success. Now, I would like to introduce you to key influencer’s that will help answer the questions; who, what, where, how, and when?
You will need to purchase, process, inventory, manufacture, promote, and market raw materials. To do this, you will need influence, input, and help from various departments. Locate strategic alliances within the engineering, purchasing, manufacturing, accounting, technology, sales, marketing, and distribution departments. To maximize your division’s objectives, allow me to make a few recommendations.
Our CIO, Gordon Steele sits on Nike’s executive management board. Steele’s incredible insight reveals that, “Business transitions are sometimes more difficult to understand than the technology. So business and IT have to solve problems collectively.” (Asia Intelligence Wire, 2004) Steele will be a strong ally as he has gained the department’s trust and is well-respected throughout the entire organization.

I would advise the inclusion of a few inventors. There are two renowned groups that I highly recommend. Goodwin, Hogan, Buchanan, and Allen, applied for a patent on October 27, 2004 for an “invention that includes a method for forming a resilient bladder structure for use in the sole of footwear.” (Europe Intelligence Wire, 2004) These men are dedicated, innovative, powerfully focused, and work particularly well together. Beating these men to the patent office by a mere twenty-one hours are, Tinker Hatfield, Aveni, and Park. (European Patents, 2004) The brainstorming sessions between these two groups is highly energetic, competitive, and refreshingly innovative. Their creative genius and penchant for playing devils advocate has given Nike, Inc. a true competitive advantage.

Our chief complaints came from our production and maintenance departments. Their consternation has come from mandates for implementation without their vital input during the decision-making process. The collective experience, training, and years of trial and error can save you from making unnecessarily risky, costly, and/ or adverse decisions. They are well-attuned to what our people and our machines can and can not do. Involve them early in the decision-making process. Their complete buy-in is critical to our success.

When we introduced our latest Air Zoom soccer shoes, it was the creative efforts of our marketing department that enabled us to become the 2004 Globes Winners for Best Activity Generating Brand Loyalty. We kicked the campaign off with a press conference with Chile’s national soccer team. Our marketing team cleverly engaged the media by having the soccer team demo the shoe “via actual soccer drill with the media. Reporters could win Total 90 apparel prizes for their efforts.” (Promo, 2004) Innovative, anticipatory, and fast, a marketing specialist is a must-have for your team.

Dennis, I have been candid with you regarding the political landscape within your division. There are several strategies for revitalizing the political environment that I hope you will consider before launching into your first substantial research and development project:
Create a task-force for the transformation effort.

Discover how to include more voices in the development, improvement and execution of organizational systems, processes, and practices.
Employ collaborative inquiry to promote relationship, innovation and foster change rapidly.

Probe the organizational:
History
Heroes
Success stories

Probe to understand what it was about Nike that individuals were passionate about in the past.
What it is about Nike that they are passionate about now?
What is their vision for the future?

Striving to improve project management, Nike enhances the alignment of business, research and development, and IT with the use of technology tools. Our Mercury software has capabilities that collect pertinent information regarding a particular project’s resources and budget so that we can consistently align a research and development project with maximized solutions. “This allows us to know what projects we are currently working on, who is assigned to those projects, and what the impact will be on our budget.” (Asian, 2004) To manage effectively across the organization, acute awareness regarding the interdependency of departments, partnerships, culture, and subcultures is critical. At Nike, you have unparalleled tools, resources, technology, and people.

Just Do It!
Cordially,

Phil Knight
Founder & CEO, Nike, Inc.
References

Asia Intelligence Wire. (2004, October 26) Just Do It. Financial Times Information Limited.
Retrieved October 26, 2004 from http://premium.hoovers.com . http://apollolibrary.com

Cook, L. ( 2003, March) Maintaining Change: The Maintenance Function and the Change. New
Technology, Work & Employment. 18 (1) 35. Retrieved October 31, 2004 from Ebcohost
database. http://apollolibrary.com

Europe Intelligence Wire (2004, October 27) Nike Hires Brand Chief from Lowe. Financial
Times Information Limited. Retrieved October 30, 2004 from Hoover’s database.

http://apollolibrary.com

European Patents (2004, October, 26) Article of Footwear Including a Tented Upper.
Micropatent, LLC. Retrieved October 30, 2004 from Hoover’s database.

http://apollolibrary.com

European Patents (2004, October 26) Resilient Bladder for Use in Footwear and Method of
Making. Micropatent, LLC. Retrieved October 30, 2004 from http://premium.hoovers.com

http://apollolibrary.com

Gunasekaran, A., Marri, H. B., McGaughey, R., & Grieve, R. J. ( 2001, March/April)
Implications of Organization and Human Behavior on the Implementation of CIM in
SME’s: an Empirical Analysis. International Journal of Computer Integrated
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database. http://apollolibrary.com

Harmon, R., Damodar, G., & Deshpande, S. (2002) Lessons Learnt in Work Teams. Production,
Planning, and Control. 13 (4) 362 Retrieved October 31, 2004 from Ebcohost database.

http://apollolibrary.com

Promo. (2004, October 25) 2004 Globes Winners. Primedia Business Magazines & Media, Inc.
Retrieved October 26, 2004 from http://premium.hoovers.com . http://apollolibrary.com

Sciacca, B. (2004) Don’t Turn Your Back on Organizational Politics. Pennsylvania CPA
Journal.Retrieved October 26, 2004 from RDS Business Suite. http://apollolibrary.com