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|Articles - January 2011|
|Thursday, December 16, 2010|
By Cory Mimms
When James Curleigh became the CEO of Keen Footwear in 2008, he found a monster lurking in the cubicles of the corporate office in Portland. Keen had an innovative product — a sandal that protected your toe — but innovation without results leaves hope as your strategy, and according to Curleigh, “Hope is not a strategy.” He didn’t focus on the recession, which was in full swing; he focused inward on what he named “Operation Slay the Hydra.”
“The energy was there but the execution was not,” Curleigh says. He identified nine areas that needed improvement and — like the nine heads of a hydra — each problem area would regenerate unless the monster was killed for good. Curleigh formed an action team with nine members, each of which was responsible for slaying one head of the monster. As a result, Keen’s processes were streamlined and Curleigh was able to focus on growth.
The 7-year-old company grew between 15% and 40% per year and is on its way to hitting $200 million in revenue. It not only survived the recession but managed to expand during its worst months. Regions, such as Mexico, remained out of reach. Curleigh and his team concluded it wasn’t feasible to expand there but Curleigh kept it in the back of his mind.
In the months following, Curleigh focused on managing Keen’s growth and shifted from using distributors to subsidiaries. “Strategically, it worked,” he says, and they came out of 2008 with the most intact balance sheet they had ever had; inventory was low, receivables were under control and management was efficient. Curleigh then focused on the product and brand.
Keen has products for young people, old people, men and women, every season and every region. This large demographic allows them to maintain a steady revenue stream. Curleigh balances the needs of the brand against the needs of its leadership. When the leadership is too strong they make poor decisions for the brand and try to force growth, and when the brand is stronger than the leadership the team can’t direct the growth intelligently.
Keen opened its first retail store in August in Portland’s Pearl District. Curleigh uses the store as a think tank. All the corporate employees spend time working in the store to help them learn what customers want. Above the store sits Keen’s corporate office. A drum set rests in one corner, the employees are dressed casually, and bicycles sporting Keen license plates are parked in the reception area. Curleigh promotes a relaxed work environment where his team has the freedom to develop new ideas.
They are also analyzing the company’s environmental impact. Keen did not begin with sustainability in mind, but as the company has grown so have its goals. Companies born this century are finding it easier to be sustainable because they are “growing up” with it in mind, Curleigh says.
Not only does it make their brand appealing to environmentally conscious consumers, it also saves money. Keen’s corporate offices cost very little to furnish because Curleigh used repurposed materials such as pallet wood and bleachers from a high school he acquired for free.
Curleigh sees the company’s youth as an advantage. When you’re young, you’re not afraid to take risks. After months of listening to why Mexico was too difficult a market, Curleigh had had enough. The words of Bob Dylan echoed in his mind: “When you got nothing, you got nothing to lose.”
Curleigh launched the brand into Mexico in early 2009, partnering with sporting goods retailer Deportes Marti, which is based in Mexico City. The region’s revenue went from zero dollars to a few million in a relatively short period. Roughly 65% of Keen’s business is in the U.S., 10% in Canada, 10% in Europe, and 15% is spread through other regions. The company this year began making its Portland Boot at a manufacturing plant in North Portland.
Keen’s brand is still developing, but the shoes are selling and the corporation is growing. Still, Curleigh wants to keep the attitude of a young, scrappy company. “We want to stay David among the Goliaths,” he says.
Thursday, May 29, 2014
BY LINDA BAKER
Remember mood rings? A team of scientists at Oregon State University has designed what might be considered a 21st-century analog of the ’70s jewelry fad: a bracelet that reveals one’s exposure to pollutants.
Thursday, May 29, 2014
BY KIM MOORE
A conversation about credit unions with the CEOs of Advantis Credit Union and OSU Federal Credit Union, followed by June's Powerlist.
Thursday, June 05, 2014
BY HANNAH WALLACE | OB BLOGGER
What does it take to launch and run one of these mobile food businesses?
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Monday, June 30, 2014
Oregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.
Thursday, May 29, 2014
BY MIKE GREEN
An old profession is new again.
Monday, July 07, 2014
BY TOM COX | OB BLOGGER
Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.
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