Running a company: Nike CFO Blair speaks
Phil Murphy, WG'06
Issue date: 1/31/05 Section: News
The Wharton Leadership Lectures committee proudly welcomed a distinguished alumnus home last Thursday in the latest edition of its popular speakers' series. Don Blair, current VP, CFO and Corporate Treasurer of Nike, Inc., entertained an enthusiastic audience with some of the lessons on leadership that he has learned throughout his career. The only CFO on this year's Leadership Lectures schedule, Blair received his B.S. in Economics from the University of Pennsylvania and his M.B.A. from Wharton.
Blair has led Nike's finance division since joining the firm in 1999. Nike, with annual revenues in excess of $13 billion, is the largest sports and fitness company in the world. Prior to joining Nike, Blair held a number of financial management positions with PepsiCo, Inc. Acknowledging that "Thursday afternoon was typically reserved for beer drinking" when he was at Wharton, Blair appreciated the large turnout and conducted a memorable and insightful session.
Blair began his speech by identifying some of the core principles upon which Nike is built. According to Blair, "Nike reflects the brand, and the brand represents innovation, inspiration, creativity and energy." As such, Nike seeks employees who possess and lead with these attributes. Blair also talked about the "distributed leadership model" employed at Nike that was inspired by the company's co-founders, Bill Bowerman and Phil Knight. At Nike, leadership does not come only from its top executives. Instead, the firm distributes the responsibilities of leadership to virtually every employee at the firm, allowing the company to remain grounded in its entrepreneurial roots despite its evolution into a global corporate giant.
Blair discussed what he believes to be seven of the most important leadership principles for business executives. Although he humbly suggested that these principles "could be found in most leadership books at the Penn Bookstore," Blair was able to distinctively convey his viewpoints through his personal experiences.
Leadership starts with leadership identity. Blair believes that people cannot effectively lead others until they understand themselves and their goals. In his words, "if you think you can change the world, you can!"
Get the right people on your team and help them succeed. Using a sports analogy, Blair advised the audience to assemble basketball teams - not track teams - when constructing teams in the business world. Great basketball teams consist of a mix of athletes with complementary skills, whereas great track teams are typically a collection of talented individuals. A great leader, according to Blair, must also have a developmental mindset and be able to make the tough decisions to change the composition of an ineffective team.
Focus on important goals and outcomes, and don't get lost in the process. Blair described what he calls the importance/urgency matrix, which segments business activities into four categories: important/urgent, important/not urgent, urgent/not important, and not important/not urgent. He believes one of the most common pitfalls for business executives is to spend too much attention on issues which are urgent but not important. On the contrary, effective leaders are successful in devoting more attention to important issues that are not urgent.
Master the fundamentals. Blair believes the best leaders are not only broad thinkers but also functionally deep in their respective fields.
Do the right thing. "Don't make any decisions you wouldn't want to see on the front page of The Wall Street Journal," joked Blair. Beyond the risk management benefits, Blair noted that basing all decisions on a strong ethical foundation is the only way to establish credibility with the people you are leading.
Maintain objectivity. Blair believes a critical component of leadership is the ability not to succumb to groupthink. The best leaders continually challenge their own ideas and those of the majority.
Learn lessons from your own history. Blair believes that reflecting on your actions and decisions, as well as seeking feedback from others, are essential to developing your leadership skills.
Blair has led Nike's finance division since joining the firm in 1999. Nike, with annual revenues in excess of $13 billion, is the largest sports and fitness company in the world. Prior to joining Nike, Blair held a number of financial management positions with PepsiCo, Inc. Acknowledging that "Thursday afternoon was typically reserved for beer drinking" when he was at Wharton, Blair appreciated the large turnout and conducted a memorable and insightful session.
Blair began his speech by identifying some of the core principles upon which Nike is built. According to Blair, "Nike reflects the brand, and the brand represents innovation, inspiration, creativity and energy." As such, Nike seeks employees who possess and lead with these attributes. Blair also talked about the "distributed leadership model" employed at Nike that was inspired by the company's co-founders, Bill Bowerman and Phil Knight. At Nike, leadership does not come only from its top executives. Instead, the firm distributes the responsibilities of leadership to virtually every employee at the firm, allowing the company to remain grounded in its entrepreneurial roots despite its evolution into a global corporate giant.
Blair discussed what he believes to be seven of the most important leadership principles for business executives. Although he humbly suggested that these principles "could be found in most leadership books at the Penn Bookstore," Blair was able to distinctively convey his viewpoints through his personal experiences.
Leadership starts with leadership identity. Blair believes that people cannot effectively lead others until they understand themselves and their goals. In his words, "if you think you can change the world, you can!"
Get the right people on your team and help them succeed. Using a sports analogy, Blair advised the audience to assemble basketball teams - not track teams - when constructing teams in the business world. Great basketball teams consist of a mix of athletes with complementary skills, whereas great track teams are typically a collection of talented individuals. A great leader, according to Blair, must also have a developmental mindset and be able to make the tough decisions to change the composition of an ineffective team.
Focus on important goals and outcomes, and don't get lost in the process. Blair described what he calls the importance/urgency matrix, which segments business activities into four categories: important/urgent, important/not urgent, urgent/not important, and not important/not urgent. He believes one of the most common pitfalls for business executives is to spend too much attention on issues which are urgent but not important. On the contrary, effective leaders are successful in devoting more attention to important issues that are not urgent.
Master the fundamentals. Blair believes the best leaders are not only broad thinkers but also functionally deep in their respective fields.
Do the right thing. "Don't make any decisions you wouldn't want to see on the front page of The Wall Street Journal," joked Blair. Beyond the risk management benefits, Blair noted that basing all decisions on a strong ethical foundation is the only way to establish credibility with the people you are leading.
Maintain objectivity. Blair believes a critical component of leadership is the ability not to succumb to groupthink. The best leaders continually challenge their own ideas and those of the majority.
Learn lessons from your own history. Blair believes that reflecting on your actions and decisions, as well as seeking feedback from others, are essential to developing your leadership skills.