Yvon Chouinard's Journey to Protecting Patagonia's Values

#clippings #inbox

🪄Smart summary:

Yvon Chouinard, the founder of Patagonia, has transferred 100% of the company to a series of trusts and nonprofits to protect the company's values. Yvon's values include inventing his own game, asking for help, creating a responsible business, and leading an examined life. He also believes in taking responsibility for purchases, growing sustainably, and having a seven generation planning model. Yvon's life philosophy is to lead an examined life, clean up one's own act, do penance, support civil democracy, do good,

  1. A half century after founding Patagonia, Yvon Chouinard, the eccentric rock climber who became a reluctant billionaire has transferred 100% of the company to a series of trusts and nonprofits created to "protect the company’s values."

What are those values? What's his story?

  1. Yvon learned at an early age that it’s better to invent your own game. Then you can always be a winner.

But he had no business experience so he started asking people for free advice.

  1. He called up presidents of banks and said:

“I’ve been given these companies to run. And I’ve no idea what I’m doing. I think someone should help me.”

And they did.

  1. If you just ask people for help, if you just admit that you don’t know something, they will fall all over themselves trying to help.

  2. Yvon didn’t find any American company he could use as a role model.

Either it was too large and conservative, or it didn’t have the same values.

  1. One of his favorite sayings about entrepreneurship is:

“If you want to understand the entrepreneur study the juvenile delinquent.

The delinquent is saying with his actions, ‘this sucks, I’m going to do my own thing’.”

So he did.

  1. Patagonia exists to challenge conventional wisdom and present a new style of responsible business.

"We believe the accepted model of capitalism that necessitates endless growth, and deserves the blame for the destruction of nature, must be displace."

  1. Yvon looked to the Iroquois and their seven generation planning as models of stewardship and sustainability.

As part of their decision process, the Iroquois had a person who represented the seventh generation in the future.

  1. He began to make all decisions as though Patagonia would be in business for 100 years.

He would grow only at a rate we could sustain for that long.

  1. He wanted to create a society of product owners not consumers.

Owners take responsibility for their purchases, from proper cleaning to repairing, reusing and sharing.

Consumers take, make, dispose, and repeat – a pattern that is driving us toward ecological disaster.

  1. Yvon drew no distinction between his work and play, his labor and leisure; mind and body.

He simply pursued his vision of excellence through whatever he was doing.

  1. Yvon thought of himself as an "80 percenter."

He would dive in passionately into anything until he reached about an 80 percent proficiency level.

  1. "To go beyond that requires an obsession and degree of specialization that doesn’t appeal to me.

Once I reach that 80 percent level I like to go off and do something totally different."

  1. Yvon would summarize his life philosophy as follows:

  1. Lead an examined life.

  2. Clean up our own act.

  3. Do our penance.

  4. Support civil democracy.

  5. Do good.

  6. Influence other companies.

  1. Highly recommend reading Yvon’s book “Let my people go surfing” for more insights.