Tuesday, March 22, 2011

Big Bang Spotlight: Yvon Chouinard

Yvon Chouinard is the founder of a company called Patagonia. The company primarily deals with outdoor gear, equipment and clothing. Although in recent years, they have expanded into new markets. He has a truly interesting biography that is sure to catch the attention of many. I have posted the link below that I used to find my most of my information. You may explore the link and see the amazing success story for yourself. Unfortunately, it is a rather long article. Fortune does an excellent job chronicling the life of how an explorer became an executive. Again, it is rather interesting, and you may enjoy reading it on your own time.

http://money.cnn.com/magazines/fortune/fortune_archive/2007/04/02/8403423/index.htm

However, I would like to discuss a few of the more important concepts that are materially relevant to us. These topics include: ethics, motivational theory and how it impacts performance, designing a motivating work environment, and decision making. Yvon is a fantastic leader that has several characteristics that set him apart from other leadership figureheads. Unfortunately, we will not have enough time to discuss these intricacies. Regardless of time constraints, we will begin by addressing ethics.

In an attempt to avoid covering another group’s subject matter, I will be brief in my discussion of ethics. Yvon Chouinard is a business man who seems to have “figured it out.” He understood that business was not just about making money. He didn’t want the pursuit of endless growth to become his main concern. He wanted to serve the needs of his customers. Yvon knew that if he did things the right way, the profits would come. He also knew that profits could be attained legally and ethically. Chouinard was not interested in cutting corners, making “shady” business deals, or selling his soul to increase revenues. True to the explorer within him, he believed that “reaching the summit had nothing to do with where you arrived and everything to do with how you got there.” Many think that business ethics is common sense, and that it’s not a worthy attribute that sets leaders apart. If this were the case, why are so many frauds still exposed today? These ethics “beacons of hope” serve as a reminder that success can be achieved by playing by the rules.

Although Yvon Chouinard does not specifically address this issue, he has also paid close attention to the motivation of his employees. In chapter 5 we learned about the various theories of motivation. One of the needs based theories is Maslow’s Hierarchy of Needs. Yvon clearly meets his employees’ lower level needs through the salaries they receive and the safe working conditions he has provided to them. He also succeeds in satisfying the social needs of his workers by providing extensive opportunities to socialize. Daycare centers are also made available so that bonds with children can be maintained and strengthened. Esteem needs practically take care of themselves. Workers believe that they are doing meaningful work. Their love for the company and its purpose creates a strong bond that unites and empowers each individual. Therefore, each employee feels more important, respected, and appreciated. Patagonia does an excellent job meeting self-actualization needs. Patagonia receives multitudes of applications every year. The people who apply to Patagonia legitimately want to come to the company to make an impact on the world. The company offers all the resources and accommodations necessary to create ingenious and revolutionary products. Employees want to be all that they can be, both professionally and personally. At Patagonia, they have the ability to achieve personal goals in addition to developing their career. As a result of Yvon’s actions, his employees have high morale and perform at impressive levels.

In chapter 6, we discussed how managers can design a motivating work environment. Patagonia is arguably one of the most motivating work environments the business world can offer. Imagine being able to take breaks to surf the next big wave. Think about “testing” equipment while hiking in the mountains. Try to picture experiencing the latest outdoor gear while camping. These are outlandish things that actually happen. Chouinard enjoys life and wants his people to enjoy life as well. While these are amazing things, Yvon does address issues that are pertinent to what we have discussed in class. By further researching the company, I have found that Yvon uses job enrichment to get his employees more engaged in their work. By having more control and freedom in the creation process, they experience more productivity and creativity.

Employees have strong task significance because they feel that their work affects many people. Not only does it affect their fellow co-workers, their work also affects the general public. Employees understand that they are creating quality products that end users will experience and enjoy. Throughout the process, the company stays true to Yvon Chouinard’s focus on sustainability. Employees also know that the environment is a stakeholder that must be catered to. Each product is carefully designed while considering the environmental impact it may have. In short, employees realize that the work they do is important.

Although we have yet to cover Chapter 11, Yvon provides a glimpse into the future of decision making. He has always had a vision of a business world that operates efficiently and cohesively with the biological world. In his campaign to bring harmony to the earth, Yvon has made substantial progress in the area of sustainability. He has taken the “green” concept to another level by implementing sustainability aspects in every level of the organization. As we will learn, there are multiple types of decisions that need to be made in an organization. Yvon deals primarily with strategic decisions. He is a visionary. He has developed concepts that he believes will take the company and the world to a better place. During his journey, he has explored new products, different methods of product transportation, unique product enhancements, and intuitive business processes. He continues to deal with new product lines. Patagonia is beginning to enter the surfing market. While Patagonia is deeply entrenched in the hiking, outdoors, and generally cold environments, Yvon sees an opportunity on the horizon, "We're getting into the surf market, because it's never going to snow again, and the waves are going to get bigger and bigger." While I do not want to spoil the surprise for those who have not read Chapter 11 yet, I assure you that Yvon Chouinard is an exceptional leader that has used his visionary mentality and excellent decision making abilities to propel himself to the top of the food chain.

I wish I could talk more about Yvon Chouinard, yet time will not allow it. I have posted links to relatively short video clips that help paint a more complete picture of Yvon and Patagonia. His influence in the world of business is already becoming visible. He has begun mentoring the corporate giant Walmart. Chouinard has provided the company with invaluable insights and Walmart has actually modeled its own sustainability plans with Yvon’s help and guidance. Yvon Chouinard has proven that he truly is a “Big Bang” mover.

http://www.fastcompany.com/blog/tom-foster/fosters-blog/patagonia-founder-yvon-chouinard-and-tom-brokaw-talk-green-marketing-vi (2:39)

http://www.fastcompany.com/blog/tom-foster/fosters-blog/can-wal-mart-be-sustainable-ask-patagonia-founder-yvon-chouinard (2:01)

Regards,
Jarek Palmer

4 comments:

  1. Before this post I had never heard of the company Patagonia, but after reading your insights on the company and Yvon Chouinard it makes me wish I was working for them. You make it sound like Yvon is truly doing all the right things, especially when it comes to ethics and sustainability. It's ashame today that a lot of companies have to result to poor ethical practices in order to "get ahead." I always like to hear about transformational leaders that achieve success through ethically sound means. I was really shocked to hear that even Walmart is getting advice from Yvon for better sustainability methods. Clearly this company and leader are truly making an impact on society. I look forward to hearing more about this inspirational leader and getting a better glimpse at how he has helped the company reach the success that it has.

    By: Jason Dangles

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  2. Yvon Chouinard seems like a very smart and innovative man. I love that he has decided to take his business and organizational behavior knowledge to help other companies, like Wal-Mart as you mentioned. I hope Yvon Chouinard continues to teach his lessons to future companies and organizations. I believe that Chouinard would be a great professor at a University. Students would love to learn from him and expand their knowledge, before they head out into the work field. A professor with real life experiences is the best to learn from before they have seen what it is like and have faced those challenges that will soon face college students. I bet he would be filled with great stories.
    Yvon shows that even when one has power it can be used in the right way. So many companies get overwhelmed with greed and the feeling of power that they forget who made it all possible. CEO’s and top executives are only a little piece of the puzzle. The little man which are your employees, managers, super visors, customers, etc. are those who make the company run and operate smoothly on a day-to-day basis. Yvon Chouinard does an excellent job in taking care of his employees. He gives them incentives such as using the equipment of the company for family trips, a since of freedom in their job, wage increases, and safe working environment. All of these things are essential if a CEO wants to hang out to his current staff for a long period of time.
    I would love to work for a company that takes care of their employees and staff as much as Patagonia does. Maybe one day after I get my degree in Small Business Management and Entrepreneurship I can use the leadership tactics and attributes that Yvon has and apply them in some way to my future job in the business world.

    By: Mitchell Terry

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  3. After reviewing this article I cannot help but think of how similar Yvon Chouinard’s leadership style is to that of SAS’ Jim Goodnight. Both of these leaders seem to believe that their companies will achieve long-term strategic goals and a high quality product with satisfied employees. This is extremely important as we learned in class that workers which are more satisfied at work will in return be innovative, less stressed, and result in fewer turnovers for a company. This is evident as you stated that Patagonia offers its employees safe and engaging working conditions and even a daycare center, which is also similar to SAS. These are just two examples of the many benefits associated with being employed by Patagonia which in return satisfies employee’s motivational needs, and makes them absolutely love to show up for work everyday. In my opinion, the benefits observed at Patagonia will continue to spread to many corporations across America and the world as a company’s success truly lies in the hands of its employees.

    Zach Seibel

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  4. Yvon Chouinard seems to be the definition of a transformational leader and one that would be great to work for. His ability to motivate his employees through the impact they have on the world with the company's product is pretty amazing. The part I liked reading about most was the importance that he and his company place on sustainability. That is something that is so important in today's business world and I believe it should be constantly stressed in every company because it has an impact on our future. Overall, everything that this company and leader are about makes me want to work there as well. I truly hope more and more companies continue to follow suit.

    Posted By: Brittany Meredith

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