Lessons from Patagonia

Frequently cited as the Bible of the purpose-driven space, Let My People Go Surfing by founder of Patagonia, Yvon Chouinard, details the ‘education of a reluctant businessman’. In his long-awaited memoir, legendary climber and environmentalist Yvon, shares the persistence and courage that went into being head of one of the happiest, most respected and environmentally responsible companies on earth.

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Patagonia was founded on passion an

d purpose

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Chouinard’s idea for Patagonia was built on his own passion for nature and climbing, this meant that he knew his target customer, as well as the problems and needs of his niche inside out.

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Initially working as a blacksmith, Cho

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uinard also had experience with creating and designing his own climbing equipment. He realised that most of the equipment he was using came from European countries that took a different approach to mountaineering than what he was looking for. They had designed it to help you conquer mountains as if the process was a battle to be overcome, and he found that such items often damaged the environment or left residue and litter in the process.

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Chouinard opted to create products that worked in synergy with nature, and even though his products were more expensive than the competition to begin with, the radical redesign of the way things were done soon attracted a loyal fan-base. As well as making products that were kinder to the environment, they were lighter, stronger and more functional.

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At first, the margins were tight and there wasn’t a huge amount of profit, as most start-ups in the product space find when they initially launch. However Chouinard’s main focus was on process, and he was mostly only interested in being able to earn enough to continue his passions, as well as refining products fit for the purpose.

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With the help of friends, the company grew steadily and in 1970 it eventually became the largest climbing hardware supplier in the US. Chouinard’s philosophy was evident from the beginning, when in spite of their success, he scrapped their most popular product because of its inadvertent effects on the environment.

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When he was climbing, Chouinard had noticed that pitons were left dug into the sides of the mountains. Phasing them out meant a big initial revenue loss, however they diverted their focus towards producing Aluminium chocks instead, which was in keeping with the company’s values around putting nature first.

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Becoming a reluctant businessman

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Chouinard had to become a businessman to repair and grow the company, without sacrificing his founding principles. Having previously considered himself a surfer and climber, he realised he needed to up-skill in order to learn to lead and strategise. Stepping up and stabilising Patagonia in this way was what allowed them to start earning profit.

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In the process, Chouinard was always keen to make sure that his staff were equally passionate about their work, and that it didn’t become stale and boring. As well as using authentic selection criteria, the company introduced time off for surfing, climbing and outdoor activities - which fed back into Patagonia by contributing to the development of innovative new products and groundbreaking apparel, from people on the front line.

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The pitfalls of rapid expansion

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Patagonia strove to be different, but it still needed to grow like other companies, and as is so often the case, its rapid expansion began to cause problems. New staff were being brought on board without being properly trained, and things began to fall apart.

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Eventually, this lead to an episode where Patagonia had to fire 20% of its staff, and the tool division Chouinard Equipment had to file for bankruptcy. Patagonia needed to reprioritise, they had to look beyond rapid growth and profit, and go back to their original philosophy, as well as code of ethics.

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They started to look for organic ways to grow, and shifted the focus towards sustainable growth and long-term vision, rather than quick wins and short term profit. The company also joined its first grass roots cause in the 1980s and backed a project to protect the Ventura River, which was in danger of vanishing due to damming. This left local species of fish without any breeding grounds.

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Every year since 1986, the company has donated part of its profits to an environmental cause, and its catalogue was one of the first anywhere to be printed entirely on recycled paper.

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Communicating philosophy & functionality

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Patagonia’s core values remain flexible enough for them to operate as a guiding set of principles that help them to navigate uncertain terrain. It doesn’t make goods that are designed to be thrown away or subscribe to the culture of blind consumption, and this was communicated in a way that was authentic, by people within the company who were customers themselves. The success of their marketing was due to the fact that it was often honest, and without embellishment.

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Functionality was another key pillar of Patagonia’s products. Instead of making endless variations of the same bag for example, they focused their resources on making one great product, designed to last a lifetime. They were constantly looking for ways to add value, and were one of the first multinational companies to insist on using more organic cotton. This was difficult in the beginning as most suppliers did not meet the standards they were looking to introduce to the market, but their efforts to work with suppliers to find solutions paid off.

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Happiness is an inside job

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More than just the products, a huge part of the success of Patagonia layswith its people. The goal of Patagonia’s HR department is to have the majority of its employees also be customers. They realised that whilst you may be able to teach business, passion is harder to come across. They sought out people who genuinely loved the outdoors, and ensured that they were always treated with respect.

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This is why the motto of the HR department is ‘let them go surfing’, allowing employees to have a progressively flexible, rather than fixed schedule, as well as onsite healthcare and child care, and a proper work-life balance.

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As a company, they don’t want their employees to be coerced by managers, or feel that they cannot speak out and question authority. They sought visionary leaders who lead by example and inspired team members, rather than a top-down management that told them what to do.

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Non-linear progress

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Their journey most certainly has not been perfect, and even today, Patagonia continues to re-evaluate its policies and stance in accordance with the ever-evolving landscape. One thing that stands out is that as a company, they take a holistic approach to problem solving, that gives them a clearer and wider point of view. For example, Patagonia supports Planned Parenthood, given that one of the biggest threats to the environment is overpopulation.

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One of the many reasons Patagonia’s approach is so inspiring, is that it fights the notion that all businesses need to be focused predominantly on profit and growth. By developing a strong and authentic philosophy, creating superior products, and working with passionate partners, they have become one of the most successful privately-owned leaders in the market, without selling out and selling their soul.

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Patagonia are a living and breathing example of the values housed under spaces like x+why, whereby profit does not have to come at the expense of people and planet, and where purpose and process are as important as outcome, if not more so.

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