Reading Reflection #1

Shoe Dog by Phil Knight

One thing that surprised me was how low on capital and cash Phil Knights company was before they went public. Even though they were making sales like crazy and they were improving their sales every year they were still having problems with cash flow and getting more credit from banks. It made me appreciate these start up companies a lot more because anyone could see he had a successful company but when you dug deep into their finances they were barely scrapping by for many years.

What I most admired from Phil was his ability to share his vision with others. He knew what he wanted, and he was able to share that with others in a way that made the vision come alive for them. Although he says he was a lousy salesman, when it had to do with shoes he was the best because it was his passion and he had a vision for his company.

Phil’s leadership style was something that got the job done but at the same time I think it could have been more effective. Countless times his main employee, Johnson, would write asking for advice, suggestions, or encouragement and he never wrote back. I understand he was busy and wanted Johnson to learn things on his own and not be so dependent, but I think some of the disagreements he had later with Johnson and other employees could have been avoided with a little more encouragement and communication from his part.

Phil definitely encountered adversity and failure. I think the whole book talks about how difficult it was to “make it” as a big-time shoe provider. His company was facing at the time companies that had been in the game a lot longer and had a hold of the market. He faced almost losing a partnership with Onitsuka, which would have completely run him out of business. He faced almost going bankrupt because banks would not give him more credit or did not want business with them. What made him overcome the setbacks and disappointments was again his vision. He knew what his company could become, and he knew what he wanted, it was his passion, and had become his reason for existing and so he had the determination to fight until he made it. 

Two competencies Phil exhibited that I think were vital to his success was the ability to attract great talent and his relentlessness. Phil had the ability to share his vision for his company with others in a way that brought that vision to life. People could sense it was something different and could feel that vision becoming a reality. That ability combined with his laid-back nature helped him not only to attract great talent as far as athletes that would market his company, but more importantly the talented workers that would make the company great. He had great designers, lawyers, accountants, salesmen, etc. He also had become so consumed by his vision and passion that he would not allow himself to think of defeat. When a problem presented itself, he would think of Prefontaine and find a way to push harder and not give up.

One thing that was confusing to me was why Onitsuka was trying to cut Phil out. It seemed to me like it had been a good partnership and Phil was continuing to sell the tigers at an alarming rate. I was also confused on why Phil’s company was so low on cash when they had sales going through the roof.

First, I would ask Phil if he had to do it all over again was there any one thing that stands out that he would do differently. His story is a great one and it seems like things happened at the right time for him, but I am curious to know if there is anything he would have changed. Secondly, I’d ask, if getting an accounting degree helped his business. I also am looking into accounting and I am curious to know if it makes a difference for an entrepreneur to have those skills or is it the same to just outsource that work.

I believe Phil’s definition of hard work was putting in every second you had to your craft. He was a runner and long-distance runners spend lots of time running and when they are not running they are thinking about it and brainstorming on how to knock off even one second off their time. They are also working on recovering and preparing their bodies for the race, and at the end of the race when they feel like they have nothing left they have to find it in them to push a little harder. I couldn’t agree more if this were the definition he gave. I think hard work is trying to maximize your efficiency and your time. The more time and focus you devote the closer you are to achieving your results.