16th
let my people go surfing
The business book review-to-dos are piling up around here so it was about time to write one. A read from last fall was Let My People Go Surfing by Yvon Chouinard, founder and owner of Patagonia. Immediately I was intrigued by the name as well as learning about the culture of Patagonia since: a) I’ve used their gear all of my life and b) I’ve heard they’re one of the most environmentally responsible corporations in the world. In short, the read detailed the philosophies behind Chouinard’s and Patagonia’s battle business tenacity and drive to preserve the nature for generations to come.
The book opened with a detailed history of the company from before founding until present which was particularly interesting to read. It followed with a section on philosophies including: product design, image, management and environmental to name a few. While much of the philosophy is similar to everything I read today, Patagonia was trailblazing these ideas back in the ’80s! It was interesting to learn they were one of the first companies to offer on-site child care, promote conservation and drive profits through changes in product & package design, and as the title suggests, promote a flexible work schedule so employees could literally go surfing at 2 in the afternoon!
While I do enjoy general principles, some of the most interesting points were told through vignettes:
When high English customs duties prevented Patagonia from selling their pitons to the “dirtbag British climbers,” they would scuff up the pitons, soak them in vinegar and then leave them out in the sun. This would cause the steel to rust and then it could be imported to the UK as scrap metal. On the British side, the pitons were oiled and polished, allowing them to be sold at a marketable price. While this may not have been 100% legal as there was intent to deceive, I think its important to note the resourcefulness employed. It underscores that laws and definitions, no matter how seemingly concrete, are still open to some degree of interpretation.
During the early years when Patagonia was hanging on accounts receivable check to check, dealers would often place another order before paying their outstanding balance. Patagonia decided to ship a load of scrap metal instead of the next order COD for the amount of the outstanding balance. When the angry dealer called them about the order, they would calmly tell them that they were now in good standing, but only for COD orders. It may have been seemed like a dirty trick to the dealer but it worked well because it was properly incentivized.
In 1990, Patagonia was the target of a boycott by the Christian Action Council because of their support of Planned Parenthood. When this occurred, they used a strategy called “Pledge-a-Picket” where they would reward every picketer at their stores with a $10 donation to Planned Parenthood in the picketer’s name. Needless to say, the boycott failed. This sounds like the perfect way to quell any exterior boycott if you’re able to back it up if necessary, again being properly incentivized.
When discussing Chouinard’s rationale for being in business, “to make money we could give away,” Dr. Michael Kami remarked “I think that’s bullshit.” He went to say “If you’re really serious about giving money away, you’d sell the company for a hundred million or so, keep a couple million for yourselves, and put the rest in a foundation. That way you could invest the principal and give away six or eight million dollars every year. And, if you sold to the right buyer, they would probably continue your tithing program because its good advertising.” Its imperative to dig deep and define your goals and success criteria. Why do you do what you do in the way you do it? There may be an easier way to accomplish this feat, or you might have to do some self exploration to nail down your purpose.
In summary, I would recommend this book to anyone who’s used and loves their wares and wants to know how unique a corporation Patagonia is, business philosophy/purpose, interested in consumer understanding, environmental responsibility, or nature preservation.
