#186 Phil Knight Nike

In "Shoe Dog," Phil Knight recounts the tumultuous journey of founding Nike, from selling Japanese running shoes out of his car to building a brand and a culture that challenged conformity. Starting with just $1,200 and facing constant financial struggles, Knight's relentless pursuit of a meaningful, passion-driven life led to seven years of toil before he could work on Blue Ribbon (Nike's original name) full-time. His story is one of unwavering determination, underscored by the mantra "keep going, don't stop," even when faced with the prospect of losing everything. Knight's narrative is a testament to the power of believing in one's crazy idea and the importance of creating something that connects with humanity. Despite the challenges, including legal battles and near-bankruptcy, Knight's entrepreneurial spirit and his team's dedication transformed Nike into an iconic company. Ultimately, "Shoe Dog" is a reflection on the highs and lows of business, the value of a calling over a career, and the enduring belief that giving up doesn't mean stopping—it means pushing forward with even greater resolve.

• Phil Knight describes his early morning routine, emphasizing the solitude and difficulty of starting the day.
• Reflects on the strangeness of returning home after a long absence and feeling disconnected from his achievements.
• Contemplates the meaning of success and his desire for a life that is meaningful, purposeful, creative, and importantly, different.
• Expresses a longing to capture the essence of play in his life, which he associates with happiness and beauty.

"I was up before the others, before the birds, before the sun. I drank a cup of coffee, wolfed down a piece of toast, put on my shorts and sweatshirt, and laced up my running shoes." This quote sets the scene for Phil Knight's morning routine, highlighting his commitment to starting his day with a run, regardless of the early hour or solitude.

"Like all of my friends, I wanted to be successful. Unlike my friends, I didn't know what that meant." Phil Knight expresses a common desire for success but feels uncertain about what success truly means to him, suggesting a deeper search for purpose beyond conventional achievements.

"I wanted mine to be meaningful and purposeful and creative and important. Above all, different." This quote encapsulates Phil Knight's drive for a life that stands out and has a significant impact, showing his ambition to create something unique and lasting.

• Phil Knight shares his internal struggle with feeling like a child despite his accomplishments and yearns to pursue something greater.
• He recalls the moment during his run when he envisions the life he wants to lead, one filled with the thrill of play and the excitement of competition.
• Reflects on his past ambitions and the realization that he may not achieve his dream of being a great athlete.
• Considers the possibility of experiencing the joy of play through business and decides to chase his "crazy idea" with dedication.

"I simply didn't want to lose." This quote reveals Phil Knight's competitive nature and his fear of failure, which motivates him to chase his dreams with determination.

"Maybe, I thought, just maybe, I need to take one more look at my crazy idea." Phil Knight contemplates revisiting his entrepreneurial idea, which he refers to as "crazy," indicating a mix of doubt and hope.

"It will work, by God, I'll make it work. No maybes about it." Phil Knight's resolve strengthens as he runs, and he becomes convinced that he will succeed in making his idea a reality, demonstrating his unwavering commitment to his vision.

• Phil Knight introduces "Shoe Dog," a memoir by the creator of Nike, and explains why he considers it the perfect biography.
• Discusses the structure of the book, its focus on the struggle and journey of entrepreneurship, and the personal insights it offers.
• Compares "Shoe Dog" to other biographies, highlighting its unique approach to storytelling and the lessons it imparts.

"That was an excerpt from the book that I'm going to talk to you about today, which is Shoe Dog, a memoir by the creator of Nike, and it was written by Phil Knight." Phil Knight introduces "Shoe Dog" as the subject of discussion, indicating that the memoir is a personal account of the creation of Nike.

"It's an absolute fantastic book, and I believe that great books should be reread." Phil Knight praises "Shoe Dog" for its quality and recommends rereading great books, suggesting that one's perspective changes over time.

"I believe it's the best advice, maybe the only advice any of us should ever give." Phil Knight reflects on the advice he gave himself to keep going and not stop, considering it the most valuable guidance for anyone pursuing a goal.

• Phil Knight recounts his college days, where a research paper on shoes sparked his interest in Japanese running shoes and eventually turned into an obsession.
• Despite indifference from his classmates and professor, he continues to think about his paper and the potential of his idea.
• Phil Knight draws inspiration from historical figures and applies their wisdom to his journey, such as Edwin Land's advice on overcoming indifference.

"The professor thought my crazy idea had merit. He gave me an A." This quote shows that despite the lack of interest from others, Phil Knight's professor recognized the potential in his idea, giving him a sense of validation.

"I had never really stopped thinking about that paper." Phil Knight's continued fixation on his research paper indicates the deep impact the idea had on him, hinting at the beginnings of his entrepreneurial journey.

"The things I love most, books, sports, democracy, free enterprise, started as crazy ideas." Phil Knight reflects on the origins of his passions, acknowledging that many great concepts were initially seen as "crazy ideas," inspiring him to pursue his own.

• Phil Knight shares his determination to follow through with his shoe business idea, despite the challenges of securing funding and convincing Japanese manufacturers.
• He emphasizes the importance of perseverance and the need to push through societal indifference, drawing parallels with the experiences of other entrepreneurs like FedEx's founder, Fred Smith.
• Phil Knight's narrative underscores the significance of inner conviction and the pursuit of an authentic life, as opposed to living by the expectations of others.

"Maybe the only answer, I thought, was to find some prodigious, improbable dream that seemed worthy, that seemed fun, that seemed a good fit, and chase it with an athlete's single-minded dedication and purpose." Phil Knight considers the possibility of finding a grand, fulfilling dream to pursue with the same dedication he would have applied to athletics, showcasing his desire for passion in his work.

"History is one long processional of crazy ideas." Phil Knight acknowledges that many of the world's greatest achievements began as ideas that were once considered outlandish, encouraging him to embrace his own unconventional concept.

"Let everyone else call your idea crazy. Just keep going. Don't stop." Phil Knight resolves to persist with his idea regardless of others' opinions, emphasizing the importance of determination and resilience in the face of doubt.

• Phil Knight discusses the influence of his father's conventional values and the unexpected support he receives for his travel plans, which aligns with his desire to explore the world.
• He recruits a friend, Carter, to join him on his travels, admiring Carter's decisive nature and ability to take action.
• Phil Knight's journey is marked by moments of self-reflection, as he continues to question his purpose and the meaning of his work.

"He said that he had always regretted not traveling more when he was young." Phil Knight's father expresses regret for not exploring more, which serves as a catalyst for Phil Knight to pursue his own adventures and avoid similar regrets.

"Carter never did mess around. See an open shot, take it." Phil Knight admires Carter's straightforward approach to life, seeing it as a valuable lesson in seizing opportunities without hesitation.

"Don't tell people how to do things. Tell them what to do and let them surprise you with their results." Phil Knight shares his management philosophy, inspired by General Patton, which emphasizes the importance of giving people the freedom to achieve goals in their own way.

• Phil Knight's travels provide him with a global perspective and exposure to different philosophies, such as Zen Buddhism, which influences his nonlinear approach to life and business.
• He encounters various historical and cultural landmarks that inspire him to reflect on his goals and the legacy he wants to leave.
• Phil Knight's journey is not just about business, but also about personal growth and understanding his place in the world.

"Reality is nonlinear, Zen says, no future, no past, all is now." Phil Knight contemplates the Zen philosophy that emphasizes living in the present, which challenges his linear thinking and impacts his approach to life.

"The man who moves a mountain begins by carrying away small stones." Phil Knight recalls the wisdom of Confucius, highlighting the importance of starting with small steps to achieve great tasks, a principle he applies to building his business.

"You're remembered for the rules you break." Phil Knight is inspired by General MacArthur's assertion that breaking the mold is what leads to a lasting legacy, informing his approach to innovation and entrepreneurship.

• Phil Knight regrets not journaling during the early days of Nike, recognizing the value of documenting thoughts and experiences for reflection and learning.
• He advises others to write down their journeys, as memories can fade and the significance of certain moments may be lost over time.
• The narrative concludes with a call to embrace one's "crazy ideas" and to persist through challenges, as history is shaped by those who dare to think differently.

"You have these thoughts that when you're living through them, they're so impactful at the time. You're like, there's no way I'm going to forget it. You're going to forget it. Write it down, document it." Phil Knight emphasizes the importance of preserving one's thoughts and experiences in writing, acknowledging that even the most impactful moments can be forgotten if not recorded.

"My other consolation was lunch. He hates his job so much." This quote illustrates Phil Knight's dissatisfaction with his accounting job, which contrasts sharply with his passion for his shoe business idea, underscoring the importance of pursuing work that aligns with one's interests and values.

• Phil Knight reminisces about his time before Nike, highlighting his routine of fantasizing about travel during lunch breaks.
• He questions whether the best moments of his life are already behind him.
• Phil expresses a deep sense of dissatisfaction with his current life as an accountant.

"Each day at noon, I'd walk down to the street to a local travel agency and stand in front of the posters in the window... I'd ask the pigeons, can you believe it was only a year ago that I was surfing Waikiki?... Are the best moments of my life... Behind me?"

The quote reflects Phil's yearning for adventure and his concern that his life has peaked with his trip around the world.

• Bill Bowerman, Phil Knight's track coach, is integral to the creation of Nike.
• Bowerman's obsession with improving athletic shoes is a key driver in the development of lighter, better footwear.
• Bowerman's philosophy on lightness in shoes and its impact on performance is highlighted.

"It was Bauerman who first made me think, really think, about what people put on their feet... 1oz slice off a pair of shoes, he said, is equivalent to 55 pounds over 1 mile."

Bowerman's insight into the importance of shoe weight for athletes' performance is a foundational concept for Nike's product development.

• Phil's relationship with Bowerman is complex, marked by admiration, fear, and a deep desire for approval.
• Bowerman's frugality with praise and his approach to leadership and coaching are influential to Phil.
• The death of Phil's son and Bowerman's passing are deeply emotional events that are touched upon but not delved into.

"It is possible that everything I did in those days was motivated by some deep yearning to impress, to please Bauerman... I loved Bauerman and feared him, and neither of these initial impulses ever went away."

Phil's quote highlights the profound impact Bowerman had on his life, shaping his motivations and emotional responses.

• Bowerman's disdain for the title of coach and his self-identification as a "professor of competitive responses" reflect his broader educational goals.
• His innovative coaching strategies and emphasis on rest and recovery are considered revolutionary.
• Bowerman's training methods resulted in many sub-four-minute milers.

"He called himself a professor of competitive responses... to get you ready for struggles and competitions that lay ahead far beyond Oregon."

Bowerman's approach to coaching goes beyond athletic performance, preparing his athletes for life's broader challenges.

• Phil faces skepticism from his father regarding his shoe business venture.
• His mother's support is pivotal, exemplified by her purchase of a pair of running shoes from Phil.
• The early strategy for selling shoes involves directly engaging with the running community.

"I'd like to purchase one pair, please, she said, loud enough for him to hear."

Phil's mother's act of support not only provides encouragement but also legitimizes his business in the eyes of his skeptical father.

• Jeff Johnson's enthusiasm for running and his belief in the spiritual aspect of the sport make him an ideal first full-time employee for Blue Ribbon.
• Johnson's communication style is intense and frequent, showcasing his dedication to the company.
• The cultural perception of running during the 1960s is highlighted as an obscure activity, contrasting with its popularity today.

"In his heart of hearts, Johnson believed that runners are God's chosen... And thus he felt called to help runners reach their nirvana."

Jeff Johnson's fervent belief in the transformative power of running aligns with the ethos of the nascent Nike brand.

• Bowerman's relentless experimentation with shoes is a key component of Nike's product development.
• He uses his athletes as test subjects to refine shoe designs, sending feedback to manufacturers in Japan.
• Bowerman's success in writing a book about jogging indicates the growing interest in running as a recreational activity.

"Bauerman would note how the arches held up, how the soles gripped the cylinders, how the toes pinched in the instep."

Bowerman's meticulous attention to detail in shoe design contributes significantly to the performance of his athletes and the evolution of running shoes.

• Phil Knight reflects on his leadership style, considering whether it is influenced by Bowerman, his father, or historical figures he admires.
• He draws parallels between business and war, citing the need for pressurized grace in leadership.
• Knight's appreciation for silent, decisive leadership is evident in his approach to running Nike.

"Don't tell people how to do things, tell them what to do and let them surprise you with their results."

Phil's leadership philosophy emphasizes trust in his team's abilities and the importance of allowing them autonomy.

• The entrepreneurial journey is likened to alternating states of euphoria and terror.
• Phil's personal struggles, including a breakup and challenges with his business, are described.
• His determination and resilience in the face of adversity are emphasized.

"The best thing about startups. You only ever experience two emotions, euphoria and terror. And I find that a lack of sleep enhances them both."

This quote captures the intense emotional highs and lows that entrepreneurs like Phil Knight experience.

• Phil Knight discusses the effectiveness of a hands-off management approach, as employed by Cesar Ritz and Auguste Escoffier, and later by himself with Johnson.
• This approach involves giving employees clear instructions and then allowing them the freedom to execute and potentially exceed expectations.
• Phil links this to the innovative customer service approach taken by Johnson, which was crucial to building customer loyalty for Nike.

"I didn't answer Johnson and I didn't pester him. Having told him what to do, I hoped that he would surprise me, and he would definitely surprise him."

The quote explains Phil Knight's decision to trust Johnson's autonomy, reflecting a belief in empowering employees to take initiative and deliver results beyond what is expected.

• Johnson's meticulous record-keeping of customer details allowed for personalized service, building strong customer relationships.
• The index card system was used to track personal information, shoe size, and preferences, enabling targeted communication like birthday and Christmas cards, as well as notes of congratulations.
• This personalized attention created a loyal customer base and differentiated Nike from its competitors.

"Each new customer got his own index card, and each index card contained the customer's personal information, shoe size, and shoe preferences."

This quote highlights the methodical approach Johnson took to understand and cater to each customer's unique needs, setting a foundation for Nike's customer-centric business model.

• Customer feedback was directly used to inform product development, leading to innovations like the Frankenstein flat with full-length midsole cushioning.
• Johnson's responsiveness to customer needs, such as the desire for more cushion in running shoes, exemplified the company's dedication to product improvement.
• The creation of the first Nike showroom was a manifestation of this customer-focused innovation, providing a space that celebrated runners and their needs.

"Johnson then began aggregating customer feedback, using it to create new design sketches."

This quote reflects the importance of customer feedback in driving innovation at Nike, with Johnson's attentiveness to customer input leading to the development of new and improved products.

• Phil Knight draws a parallel between Nike's marketing strategy and that of Apple, as articulated by Steve Jobs.
• Both companies focused on celebrating the spirit of their customers rather than just promoting products, a strategy that resonated with their respective audiences.
• Nike's ads celebrated great athletes, while Apple's ads celebrated great thinkers and innovators, emphasizing the importance of aligning marketing with company values and customer aspirations.

"Nike's ads don't talk about their products. They celebrate great athletes."

The quote captures the essence of Nike's marketing approach, which is to honor the achievements and spirit of the athletes who use their products, rather than focusing solely on the products themselves.

• Phil Knight shares the precarious nature of Nike's early days, highlighting the constant fear of failure and financial instability.
• The narrative includes moments of faking confidence, such as claiming to have an East Coast office when none existed, to secure contracts and keep the business afloat.
• Knight's personal sacrifices, such as considering living in his office to save money, underscore the intense dedication required to build a startup.

"I tried to be nonchalant as I signed the papers and placed an order for 5000 more shoes which would cost $20,000 I didn't have."

This quote illustrates the bold risks Phil Knight took to grow Nike, often committing to large orders and business expansions despite severe financial constraints, demonstrating the gamble inherent in entrepreneurship.

• The story of naming a shoe "Cortez" after Adidas threatened legal action over the name "Aztec" reveals the competitive pressures and creative problem-solving in Nike's history.
• Knight's disdain for Adidas, driven by their market dominance and perceived arrogance, served as a motivational force.
• The internal rivalry within Adidas, between the founding brothers of Adidas and Puma, inadvertently created opportunities for Nike to rise in the market.

"I was developing an unhealthy contempt for Adidas. Or maybe it was healthy."

This quote conveys Phil Knight's complex feelings towards Adidas, oscillating between resentment and recognition that this rivalry pushed him to work harder and innovate.

• Phil Knight's personal life, including his work habits and competitive nature, is explored, revealing the sacrifices made in pursuit of his vision for Nike.
• The emotional toll of entrepreneurship is depicted through Knight's self-doubt, stress, and the constant battle between hope and fear for the company's future.
• Knight's decision to focus solely on Nike after seven years of juggling jobs illustrates the commitment required to achieve his dream of creating a meaningful legacy.

"I wanted to dedicate every minute of every day to blue ribbon I'd never been."

This quote encapsulates Phil Knight's desire to immerse himself entirely in his work with Nike, reflecting a level of dedication that often comes at the expense of personal balance and well-being.

• Phil Knight expresses regret over not documenting the early days of Nike more thoroughly, acknowledging that many details and memories have been lost to time.
• The importance of recording the journey of a startup is emphasized, as it captures the evolution of ideas, struggles, and triumphs that might otherwise be forgotten.
• The story serves as a reminder to preserve the history of one's endeavors for both personal reflection and as a lesson for future entrepreneurs.

"How I wish on just one of those nights, I'd had a tape recorder or kept a journal."

This quote highlights the value Phil Knight places on capturing the fleeting moments and discussions that shaped Nike's direction, underscoring the significance of documentation in chronicling the life of a business.

• Blue Ribbon Sports, the precursor to Nike, faced financial difficulties and needed funding.
• They secured a new bank and credit, with a Japanese trading company endorsing their loans.
• Phil Knight resisted an IPO but eventually realized it was necessary.
• They offered debentures, which sold quickly, showing investor confidence and support from friends like Kale.

"We announced in June 1971 that Blue Ribbon will be offering 200,000 shares of debentures at $1 per. And this time the shares sold fast."

This quote highlights the initial success of their fundraising efforts through debentures, a precursor to the eventual IPO.

• "Shoe dogs" were individuals completely devoted to the shoe industry.
• Their obsession with every aspect of shoes was seen as a psychological disorder, but Knight understood it as a connection to humanity.
• Shoes were a way to be a part of every person's journey, enhancing the human experience.

"Shoe dogs, it seemed to me, simply wanted to be part of that journey."

This quote reflects the passion and dedication of those in the shoe industry, which Knight admired and shared.

• Bill Bowerman's innovations, like the waffle trainer, were crucial to Nike's success.
• Knight compared Bowerman to historic figures like Edison and da Vinci, emphasizing his impact on the industry.
• Nike faced a significant legal challenge when their main supplier cut them off, leading to a lawsuit in the U.S. and Japan.

"He was Edison in Menlo Park, da Vinci in Florence, Tesla in Wardenclyffe... the daedalus of sneakers."

Knight's comparison of Bowerman to these great inventors underscores Bowerman's transformative role in the athletic shoe industry.

• Facing supplier issues, Knight rallied his team by framing the crisis as an opportunity for independence and growth.
• Knight's speech turned despair into determination, emphasizing self-reliance and the potential for success on their own terms.

"We've got them right where we want them... It's time we faced facts. If we're going to succeed or fail, we should do it on our own terms, with our own ideas, our own brand."

This quote captures Knight's pivotal speech that motivated his team to embrace the challenge of building Nike independently.

• Nike's sales were growing, but the company was always on the verge of bankruptcy due to cash flow issues.
• Knight's mood and company's fate were tied to daily sales and the ability to convert product to cash quickly.
• An innovative pre-order discount program with retailers helped improve their financial situation.

"Our sales for 1973 rose to 50% to 4.8 million, a number that staggered me the first time I saw it on a piece of paper."

Despite impressive sales growth, the company's financial stability was always in question, as reflected in this quote.

• Knight's pitch to a potential in-house counsel highlighted Nike's anti-corporate, passionate, and rebellious culture.
• They aimed to create not just a brand, but a culture that fought against conformity and promoted meaningful work.

"You're one of us... We were the kind of people who wanted our work to be play, but meaningful play."

This quote illustrates the culture Knight was fostering at Nike, one that valued passion and purpose over corporate norms.

• Nike faced constant challenges, but Knight's philosophy was to keep pushing forward, even when over their heads.
• They continued to defy the bank's advice to slow down, instead accelerating growth and innovation.
• Knight pondered the purpose of Nike, ultimately defining it as contributing to society and not just avoiding failure.

"The problems are never going to stop. I realize there is no finish line."

Knight's acknowledgment of perpetual challenges underscores the relentless nature of business and the need for continuous problem-solving.

• Nike's early advertising focused on the spirit of athletics rather than the product itself, emphasizing personal commitment.
• Knight valued obsessiveness and determination over intelligence, aligning with his personal traits and business strategy.

"Beating the competition is relatively easy. Beating yourself is a never-ending commitment."

This tagline from an early Nike ad reflects the company's marketing philosophy and Knight's belief in the importance of personal challenge.

• After the IPO, Knight experienced a mix of emotions, including regret for not being able to relive the journey.
• He wished to share his experiences to inspire and advise future entrepreneurs, emphasizing the pursuit of a calling.
• Knight's final reflections included the importance of learning from regrets and understanding the value of perseverance.

"Sometimes knowing when to give up, when to try something else, is genius. Giving up doesn't mean stopping. Don't ever stop."

This quote encapsulates Knight's advice to entrepreneurs, highlighting the balance between determination and adaptability.