Question

Employees at many successful companies start the day by checking the economic forecast.92Patagonia’s employees start the day by checking the weather forecast. The outdoor clothing company encourages its workforce to take time from the work day to get outside and get active. For Patagonia, linking employees with the natural environment is a major part of the culture.

New hires are introduced to this mindset very quickly. Soon after starting at Patagonia, marketing executive Joy Howard was immediately encouraged to go fly fishing, surfing, and rock climbing all around the world. She notes that all this vacationing is not just playing around—it’s an important part of her job. “I needed to be familiar with the products we market,” she said. Other practices support this outdoors-oriented, healthy culture. The company has an on-site organic café featuring locally grown produce. Employees at all levels are encouraged through an employee discount program to try out activewear in the field. Highly flexible hours ensure that employees feel free to take the occasional afternoon off to catch the waves or get out of town for a weekend hiking trip.

Are there bottom-line benefits to this organizational culture? Patagonia CEO Rose Marcario thinks so: “People recognize Patagonia as a company that’s . . . looking at business through a more holistic lens other than profit.” However, she is quick to add, “Profit is important; if it wasn’t, you wouldn’t be talking to me.”

Patagonia’s culture obviously makes for an ideal workplace for some people—but not for others who don’t share its values. People who are just not outdoor types would likely feel excluded. While the unique mission and values of Patagonia may not be for everyone, for its specific niche in the product and employment market, the culture fits like a glove.

QUESTIONS

1. What key dimensions of its culture do you think make Patagonia successful? How does the organization help to foster this culture?

2. Does Patagonia use strategies to build its culture that you think could work for other companies? Is the company a useful model for others that are not so tied to a lifestyle? Why or why not?

Answer 1

1. Unlike other companies that want its employees to stay indoors and work. Patagonia lets people go outside and be with nature. They have a strategic purpose behind it to be familiar with the products, that they sell. This familiarity would help in two ways, firstly it would keep the employees happy, motivated and secondly, they would be able to know what lacks in their product, or what needs improvement, unlike asking feedback from customers. Here, the gap between customer experience and what the company intends to do offer is reduced.

Thus, the key dimension, of open culture, participation in the work, flexibility, and fun are some of the key dimensions which make them successful.

Organization as stated, allow its people to try their activewear in the field. Breaks are given, where people are encouraged to be with nature. The same is followed by new recruits.

This all activities, where their products are positioned is helpful to understand to offer customers a better product. Plus, it also acts as a good marketing point, as employees stand by its quality. It also makes the people in the company satisfied, stress-free, and happy. Thus, engaging both stakeholders is the reason for their success.

2. Yes, there are strategies and it involves bridging the gap between what customer experiences and what the company wants to offer. If the company itself becomes a customer, then it would be able to gauge the customer's need in a better way. This is what Patagonia has been trying to do. The same can be applied by other companies, being a customer of your own company.

Patagonia being an outdoor clothing company is allowing its people to step outside. For an eCommerce, they should allow employees to be sellers or buyers upon it, etc.

Although it may not be the same fun as going out in nature, but still it is effective in the participative organization.

The contemporary leadership is fresh and the ideas too. Thus, startups or new companies must try flexible ways to govern the people. Especially the ones who are not rigidly based on a lifestyle. For example, health tracking gadgets and wearable companies can also use the same model. It would help its employees engaged in the work, better their products, and help as a unique marketing strategy. Thus, companies who are not gigantic enough to change must adopt models that make them flexible, keep the employees happy and customers satisfied