Home Back Issues January 2011 Keen approaches $200M in revenue

Keen approaches $200M in revenue

| Print |  Email
Articles - January 2011
Thursday, December 16, 2010
By Cory Mimms
0111_Tactics01
PHOTOS BY JUAN-CARLOS DELGADO

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.

Keen Footwear keenfootwear.com
CEO: James Curleigh
Headquarters: Portland
Founded: 2003
Employees: 250
Number of shoes: 20 million sold in 50 countries

 

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.

0111_Tactics02

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.

 

More Articles

Speeding up science

News
Tuesday, February 25, 2014
02.25.14 Thumbnail MedwasteBY JOE ROJAS-BURKE | OB BLOGGER

The medical research enterprise wastes tens of billions of dollars a year on irrelevant studies. It’s time to fix it.


Read more...

Closing the gap: Community colleges and workforce training

News
Thursday, March 27, 2014
03.27.14 thumb collegeBY MARY SPILDE | OP-ED CONTRIBUTOR

Community college career, technical and workforce programs present an opportunity to bring business and education together as never before.


Read more...

Branching out

March 2014
Tuesday, February 25, 2014
DSC04185BY LINDA BAKER

A blueberry bush is a blueberry bush — except when it’s a blueberry tree.


Read more...

Leader's bookshelf

Contributed Blogs
Friday, March 14, 2014
02.06.14 BooksBY TOM COX | OB BLOGGER

Five books that will make you a better leader.


Read more...

How to help your staff solve their own problems

Contributed Blogs
Friday, March 21, 2014
03.21.14 thumb coxcoffeeTOM COX | OB BLOGGER

During a recent talk to HR Directors, I asked if they saw leaders trying to solve every problem, instead of delegating to and empowering staff. Every head nodded. Every single one.


Read more...

The 2014 List: The Top 33 Small Companies to Work, For in Oregon

March 2014
Thursday, February 27, 2014

100best14logoWebOur 100 Best Companies project turned 21 this year, so pop open the Champagne. Our latest survey gives us plenty to cheer.

 


Read more...

Wheel man

March 2014
Tuesday, February 25, 2014
BY LINDA BAKER

Les Schwab has put a premium on customer service since 1952, when legendary namesake Les Schwab founded the company with one store in Prineville. (Schwab died in 2007.) But if the corporate principles remain essentially the same, the world around this iconic Oregon business has changed dramatically.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS