THE SECRET BEHIND PATAGONIA
Yvon Chouinard
the creator of Patagonia, establishes a non-traditional way of conducting
business that differs from other businesses.
His unique and informal management style has proved to assist in the
company’s three to eight percent annual increase and annual sales of nearly
$540 million. Chouinard started his
business as Chouinard Equipment in 1972 based out of Ventura, California. After the business took off, Chouinard Equipment
was later renamed to Patagonia, which “was intended to reflect the mysticism of
far off lands and adventurous places located not quite on the map.”Yvon Chouinard has always had a love for
the outdoors and staying active. Even
now he encourages it through his employees. Chouinard proclaims “it is not uncommon to see barefoot employees walking
the campus, and the day’s surf report is posted above the desk at reception.” Chouinard even offers his employees areas to
perform yoga or aerobics, whereas most other businesses require ‘business
casual’ attire and a scheduled time for breaks.
Patagonia’s Four Core Values include: Quality, Integrity,
Environmentalism and Not Bounded by Convention.
Chouinard hires individuals who are self-motivated and that can be
considered a “friend” to his other colleagues.
As a manager he is extremely flexible and promotes employees to go perform activities such as surfing and climbing. Chouinard addresses in the article that by
keeping the company private, “he has been able to make strategic moves that fit
his agenda and future goals.”The main goal of the company is not to
make money, but share a love for the outdoors.
Although many of us would like to think that every other company selling
their products is doing it for the good of the people, many of them will do
anything to make a profit. Patagonia's statement includes, “Build the best product, cause no unnecessary harm, use
business to inspire and implement solutions to the environmental crisis.” For most business strategies, their focus is
on “decreasing costs and increasing revenues.”
However, for Patagonia the spotlight is set on the environment. Patagonia demonstrates its true care for the
environment by donating one percent of their total sales to an environmental
organization. This has helped the
company tremendously; bringing in much more business because people recognized
their “environmental consciousness.” Patagonia stresses a decentralized way of
management. A decentralized management incorporates the idea of the middle and first line
managers making important decisions.
Rather than a centralized management that is presented in many other
businesses, decentralization allows for Patagonia to utilize individuals for
their expertise. They are able to
perform many tasks within a business because of their broad-based management
team. The non-traditional management
style that Patagonia establishes is something that many other managers can take
into consideration. Although Patagonia
has encouraged a different form of management; different does not necessarily
mean wrong. They have encouraged an
active and fun workplace while still performing properly. Their “environmental consciousness” has
doubled their revenue since 2008. Through
it all, they continue to reassure Patagonia’s main goal; it isn’t just about
making money, but sharing their love for the outdoors.
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