Invest in the spectacular leader and average ideaLooking for “And” leaders – can see that there needs to be strong financial acumen AND a commit to lower risk and be smart about ESG performance.those that can see complexity
TIMBERLAND:It was integrated Justice, service, environment –Timberland did not measure itself on triple bottom line – they wanted to be judged on traditional metrics – Ken had Two magazine covers at work – Two magazine covers at work – Two magazine covers at work – he had – Mickey Drexler – “Gap can do know Wrong” – greatest thing since sliced bread – “he wanted show that you better be humble if you want to play” “Woman’s ass with jeans “How Levi’s destroyed a great American brand” – bob Hoss- to remind that the day that Timberland stumbled on traditional metrics – they would be cooked
GRAPHIC Example # 1:Factory group – timberland had a a auditors, They would look at various violation in the factory – missing paint to child laborD, B violation – there were remedial plans- One factory had bad audit reports - they had a coming to jesus meeting – looked like factory did not share their values and were not going to improve- Jeff and Ken made decision to make the move!Move 6 million or 1/5 of volume to other places over 4 months timeThey did suffer in the short terms, but made a statement to company that they would live their values
EXAMPLE #2: Jeff came in the office one time – he brought a bottle of Kraft salad dressing – look at the back – 6 months from now, expectation is that 6 months now there will be a nutritional label on the back of our shoes- give ppl a transparent view of who Why do it? Why do it when no one else did?IT got done for 24 months! Timberland – shared it with the industry how they did- then help walmart to do it with the apparel.
Example #3 Jeff had a vision to create a joint venture – jointly owned for inner city stores- they wanted to give back to the community – the idea was to open jointly owned timberland stores in the inner city and only hire locals to man the stores and pay ppl going rate and hire students who only did well in school – so they opened first one in inner city DC – ran the store at a joint loss of million – second year, they story closed. They got a letter from Johnny Cochron- that they would be sued- joined Hard to be a great citizen! Panera Cares – great example of what
Would not frame the issues in terms of morals, or sustainability – Frame it in terms of good business practice – the majority of those that fall under sustainability – are good business choices- black and white – not greyBut it is really hard to create analytical view of ROI – majority of decisions require assumptions to be made that are squishy – utility rate changes have impact on sourcing and use of energyInternalizing externalities – hard to see payback in short timeframeEXAMPLETimbuk2 – if you manufacture in Philippines and Vietnam – going up cost 2x Ken asked – can we find a new liner?Cost of liners is a big deal Help me figure out what is a new liner -Full cycle – alternative materialsPush innovation if you keep thinking about challenge differently..
And to wrap up today– I’d like to point to the Harvard Business Review…and a recent HBR article titled Why Sustainability is the Key Driver of Innovation.The piece was written by the great business strategist and author, C.K. Pra-ha(accent)-lad — who sadly died last week. He argued thatthe current economic system has placed enormous pressures on our planet while catering to the needs of only about a quarter of the ppl in the world. That traditional approaches to business will collapse, and companies will have to develop innovative solutions”He said – “This will happen only when executives recognize a simple truth – Sustainability = Innovation”.I’d like to end there. We look forward to having you at our next Leader Lens on May 26 with David McConville.Thanks for joining us – and I’ll turn this back to Michael Tirrell
MICHAEL….AW – move to next slide when he introduces me