Valuetainment - Episode 232： Billionaire Entrepreneur Tells The Ugly Side of Running a Business

00:00:00.000 30 seconds, one time for the underdog, ignition sequence start, let me see you put em up, reach the sky, touch the stars, up above, cause it's one time for the underdog, one time for the underdog.

00:00:17.300 I'm Patrick Bedeby, host of Alletainment, and today we're going to be sitting down with Chip Wilson, the founder of Lululemon, $4 billion net worth.

00:00:24.700 He's going to talk about how he took his business, Lululemon, from zero to doing $12 billion of revenues per year.

00:00:31.920 So when they started Lululemon, they were 1%, 1% of their customers were men.

00:00:37.240 They went from 1% in 1998 to 30% in 2018.

00:00:42.240 How do you do that?

00:00:43.100 I'm so curious to find out more about how the CEO and founder, Chip Wilson, did it.

00:00:47.520 So with that being said, it's great to be with you today.

00:00:51.300 Thanks for having me, cool.

00:00:51.860 For some of you that don't know, when Chip and I were talking for a few weeks about wanting to do this interview, we were thinking about doing it in our Speedos today, but we thought it was inappropriate, maybe you'd be uncomfortable.

00:01:01.420 And that is an inside joke, because one thing about Chip's work environment is, if he had it his way, why don't you tell the rest of us?

00:01:08.180 If he had it your way, what would you wear?

00:01:09.740 Three-piece, maybe Armani suit, or what would it look like?

00:01:13.300 I mean, I guess from living a lifetime as a competitive swimmer, you know, when I was young, it's funny how I'm 63 years old and still define myself as a competitive swimmer.

00:01:21.180 But, you know, living that life in a Speedo was, you know, just the most comfortable thing ever.

00:01:26.120 And I think the cold water and swimming always kind of cooled me down.

00:01:29.960 So when I actually went to put clothes on, it was exceedingly uncomfortable, and I felt I was always sweating.

00:01:35.300 So the Speedo felt where life really happened for me.

00:01:38.120 So how wild is that? You like to have the least amount of clothes on, but your business is to put clothes on people, right?

00:01:44.000 That's a pretty interesting dynamic.

00:01:46.520 Yeah, but it was the context of knowing that that's how all clothing should fit.

00:01:50.520 Like, you should be naked, you shouldn't ever think about your clothing.

00:01:53.500 I like that.

00:01:54.020 Especially in athletics.

00:01:54.880 I like that.

00:01:55.200 If you want to win that event, you shouldn't have to think about what you're wearing.

00:01:58.640 So is that like, are you thinking about coming up with a new league, like new competitive sports type of thing?

00:02:03.280 Is that a next project after Lululemon, or is that just an idea?

00:02:06.340 No, that's just a design concept.

00:02:09.240 So New York Times don't write about it and say he's going to do something like that.

00:02:12.880 So look, let's get into it.

00:02:14.280 And before talking business, one of the things I'm always curious about is a person like you, you've made it to the top.

00:02:21.100 Everybody's looking at you saying, well, one day I'd love to have a story like yours.

00:02:23.920 We have a lot of young entrepreneurs who follow value to them, a lot of executives and people that run businesses.

00:02:28.120 Some will run, you know, a million at the low revenue, upwards of $100 million per year,

00:02:32.840 and they want to find out how to scale their business.

00:02:34.260 But prior to going there, your personality is very different than Mark Cuban's personality.

00:02:39.300 But your net worth is slightly more than his.

00:02:41.400 This is not a dynamic, you're loud, you're this.

00:02:44.500 You're very subtle, very calm, very, your temperament is an interesting temperament that you have.

00:02:48.680 If I was in high school with you, we're in 10th grade.

00:02:51.640 Right.

00:02:51.980 We're best friends.

00:02:53.220 We hang out together.

00:02:54.900 Who's Chip?

00:02:55.660 Chip would have been an athlete, a competitive swimmer who really would like to play football,

00:03:00.120 but almost too good a competitive swimmer to quit to play football, recognizing I'm getting too big to swim.

00:03:06.880 So in other words, I can only do sprints, I can't do long distance.

00:03:10.740 I'm a mediocre student, but I live for athletics.

00:03:14.560 So it seems like the only reason I'm going to school is phys ed.

00:03:19.060 For you at that time?

00:03:19.900 Yeah, yeah, yeah.

00:03:20.320 My dad was one of those original hippies, you know, the organic food and the self-development.

00:03:26.440 Wow.

00:03:27.100 You know, living in the Esalen Institute in California and going to the Est here in the 70s.

00:03:31.740 And so I was a little bit of a function of that in the inquiry about it,

00:03:35.760 but definitely thought my dad was very weird at the time.

00:03:38.760 And now, of course, I see almost everything he told me actually has come to fruition.

00:03:43.600 And life actually is about good food and knowing yourself.

00:03:47.420 Isn't that amazing?

00:03:48.180 Yeah.

00:03:48.340 So now you have a hippie as a dad, but you're extremely competitive. 0.72

00:03:53.140 How does that happen?

00:03:54.360 What caused that?

00:03:55.600 Was it just your DNA?

00:03:57.160 Or was your house a house of let's play Monopoly and see who wins?

00:04:01.320 Let's play cards and see it.

00:04:02.420 Let's play backgammon and see who wins.

00:04:04.520 Where did that competitive fire come to chip?

00:04:06.660 Or was it just part of your DNA?

00:04:08.600 Yeah, I think it's part of DNA.

00:04:10.520 It doesn't mean it has to be there forever in life.

00:04:13.040 You know, I actually think Lululemon was built on not competitive.

00:04:17.560 Actually, for everyone winning, which was far different than the other athletic companies.

00:04:22.280 So it took me 40 years to get to that point.

00:04:25.120 And, you know, for me to win, everyone has to win.

00:04:27.580 For you to win, everyone has to win.

00:04:29.120 Yeah.

00:04:29.220 So were you ever an extremely super competitive guy that maybe you push some people away from you?

00:04:36.060 Or there was never that part of you?

00:04:37.980 It was just an internal composed type of a competitor.

00:04:40.200 No, definitely I wanted to win.

00:04:42.040 I mean, there was that, I think it's the testosterone as a kid, but as a child.

00:04:47.320 But I think there's a time when you realize, okay, well, I have a choice.

00:04:51.320 I can compete to win or I can, that's a good question.

00:04:56.060 Why did I change?

00:04:58.080 I changed because winning only got me a win, a small wins.

00:05:03.240 But actually being inclusive and bringing everyone in, I started to see that could bring me a bigger win.

00:05:09.680 So to you, competitiveness, does it mean that you're a solo competitor?

00:05:14.120 I know you're a swimmer, but are you somebody that also follows team sports?

00:05:17.360 Not anymore.

00:05:18.860 Only because I don't like the whole drugs and the media excitement about it.

00:05:23.980 It seems like my love of the pure sport has gone, which is probably why I love rugby more than anything else right now.

00:05:30.780 The rugby sevens, I think, that are being played in Hong Kong and Vancouver around.

00:05:34.460 It's that English gentlemanly sport where you kind of give it all and you can like crack a guy's head, but he's still your best friend.

00:05:43.280 Was there a tipping point where that shift was made on your mind or no?

00:05:46.300 Like, for instance, when Lululemon first got started, was the chippy side of you still there?

00:05:51.320 Because, I mean, your manifesto when you wrote it, that sounds like a pretty competitive guy's manifesto.

00:05:56.540 You said one day we would like to make Pepsi and Coca-Cola with cigarettes is today.

00:06:02.020 Great marketing, I think it's a terrible product, something like that.

00:06:05.640 Yeah, Coke and Pepsi are the tobacco of the future.

00:06:08.420 Great marketing, terrible product.

00:06:10.600 But really where I was coming from is I felt like I didn't care so much about making money,

00:06:14.920 but Lululemon was a platform, a social health platform.

00:06:17.980 I see what you're saying.

00:06:18.660 I totally feel that, by the way.

00:06:20.040 Yeah.

00:06:20.420 I totally feel that.

00:06:21.200 You know how you get an athlete that lasts a long time in the league and you kind of say,

00:06:24.780 well, look at the perfect LeBron James.

00:06:26.060 He's got the great body, but this guy's got the discipline to condition himself and he gets along with people, etc., etc.

00:06:31.560 You come across like a guy extremely capable.

00:06:34.600 He pays attention to numbers, creative, but at the same time, people actually like working with this guy.

00:06:39.940 You've got a chippy side that you don't mind having a tough conversation, 1.00

00:06:42.280 but you're still somebody that's likable enough where people say,

00:06:44.740 I want to be around a guy like this.

00:06:46.580 So you could be called an anomaly to some people as a CEO,

00:06:51.100 but that's a whole different conversation we could have.

00:06:52.960 So, okay, so you're an athlete.

00:06:55.200 You know, you come out.

00:06:56.200 I think you started a couple other businesses before Lululemon actually happened.

00:06:59.420 And what was it you were doing prior to Lululemon that led to, you know, saying,

00:07:03.720 well, why don't we start a new business called Lululemon?

00:07:05.860 Well, I fell into the surf business by mistake.

00:07:09.120 I was living in Canada, no competition.

00:07:11.740 Quicksilver and Billabong had just come from Australia into California.

00:07:15.300 OP was here.

00:07:16.600 It was just at the fledgling start of that.

00:07:18.540 My mom was a sewer. 1.00

00:07:19.800 I was a big guy.

00:07:21.320 Clothing was very tight at that time, very uncomfortable.

00:07:24.240 I kind of took the concept to Canada.

00:07:26.540 And because I was such a big guy, I started making,

00:07:29.360 and there was no real lycra at the time that I knew of outside of Speedos,

00:07:34.020 that I started making larger, longer shorts for men.

00:07:38.520 I went into that business.

00:07:40.220 And then as that became a commodity business,

00:07:42.340 in other words, it went from zero to 500 companies,

00:07:45.360 too much product, too few consumers.

00:07:48.880 Then I morphed into skateboarding.

00:07:50.900 Same thing happened and morphed into snowboarding.

00:07:53.260 Then when that became a commodity product,

00:07:55.240 I was just in the right place at the right time to sell to a public company,

00:07:58.840 got some money out, could sit back and go, now what?

00:08:02.320 And then that's when you said, let's try to do Lululemon.

00:08:05.460 Yeah, and I'd always had this thing where if I saw three things

00:08:09.440 in a very short amount of time,

00:08:11.440 I knew it was something that was going to happen, 100%.

00:08:15.160 So I kind of walked by a telephone post,

00:08:18.760 and there was a little sign there for a yoga class,

00:08:20.700 which I'd never seen before, I'm in a coffee shop,

00:08:23.680 and I hear two women talk about a yoga class.

00:08:26.160 And I go and read the newspaper, and there's an article about yoga.

00:08:29.900 And I went, this is going to happen.

00:08:32.460 I'm the type of person that looks for that kind of thing.

00:08:34.920 My success seems to have been like just being five to seven years ahead

00:08:38.220 of the normal consumer trend.

00:08:40.820 Where did the name come from, by the way?

00:08:43.440 Lululemon.

00:08:44.020 Yeah.

00:08:44.300 When I had West Beach, which was my former West Beach snowboard,

00:08:48.480 I had a skateboard brand I had called Homeless.

00:08:52.400 Homeless.

00:08:53.040 Homeless, yeah.

00:08:54.540 So I was making it, I was selling to Europe and Japan,

00:08:59.160 and then I went to register the brand because I thought,

00:09:02.020 okay, this is actually going to go.

00:09:03.260 But I couldn't register Homeless because HOM is French for male,

00:09:07.800 and it would have been impossible to trademark.

00:09:10.720 Snowboarding was going straight up,

00:09:12.480 and skateboarding was, like I said, becoming a commodity product.

00:09:16.800 So I went, I'm not going to do Homeless anymore.

00:09:18.820 I'm not going to do it.

00:09:20.060 So I told everybody, and that year I was over in Japan,

00:09:23.120 and I'm showing them the snowboard line,

00:09:24.620 and after I do it, they turn to me and they go,

00:09:27.120 Mr. Chipsan, we're homeless.

00:09:29.580 I said, I told you guys I'm not doing it.

00:09:32.020 And I told them the reasons why again.

00:09:35.120 And next year, the same thing.

00:09:36.640 Show them the snowboard line.

00:09:38.380 Mr. Chipsan, we're homeless.

00:09:40.540 Told them the same thing.

00:09:41.940 And you got to get at that time,

00:09:43.380 it was kind of like the Japanese yen was the highest ever.

00:09:46.880 They were buying all of America. 0.66

00:09:48.900 Pebble Beach, the...

00:09:50.140 What year is it, 97, 98?

00:09:51.420 Yeah, 95, 94, 96, something in there.

00:09:56.540 So they phoned me up a couple months later,

00:09:58.420 and they said, Mr. Chipsan,

00:09:59.820 we want to buy name Homeless from you. 1.00

00:10:02.600 And I went, and so I thought,

00:10:04.100 I'm selling complete air because I'm not making it anymore.

00:10:06.560 I don't own the trademarks to it.

00:10:08.380 And I'm desperate for money.

00:10:10.800 So I gave them a price I thought was absolutely ridiculous.

00:10:14.280 I said, yes.

00:10:15.740 And I went, oh, you know,

00:10:16.840 that's the easiest money I ever made.

00:10:19.400 So I thought, well,

00:10:20.220 why did they like that name so much?

00:10:22.080 And I went, oh, you know,

00:10:24.600 like the Jap... 0.99

00:10:25.180 There's five big Japanese trading firms,

00:10:27.540 and they were all starting to make clothing

00:10:30.060 with American-sounding names.

00:10:32.720 But I think for the 20-year-old or the young teenager,

00:10:35.580 they knew that it was more an authentic North American name

00:10:38.960 if it had an L in it,

00:10:40.240 because the L doesn't exist in the Japanese language.

00:10:43.420 I started to think of alliterations,

00:10:45.220 and I went, this time,

00:10:45.980 if I ever have another company,

00:10:47.240 I'm going to put three Ls in it,

00:10:48.880 and if I can sell it to the Japanese,

00:10:50.500 I'll get three times as much.

00:10:52.940 Of course, it was all in my subconscious, I think.

00:10:55.280 So then what did you put together?

00:10:56.720 I mean, how did Lulu come in mind?

00:10:58.440 It just went la, la, la, la, la, la,

00:10:59.500 and just, I don't know, one day,

00:11:01.100 and it's especially with the word lemon at that time,

00:11:03.540 because it was very well connected

00:11:04.900 to Detroit poor quality, right, of cars.

00:11:07.920 Wow.

00:11:08.580 So actually, it was maybe just on the precipice

00:11:12.280 of that being a name which could be used again

00:11:14.980 and putting Lulu and Lemon together

00:11:17.140 seemed to be like a super fresh name.

00:11:19.380 So it was like a formula.

00:11:20.320 You literally were looking for a name

00:11:21.480 with three Ls in it.

00:11:22.520 Right.

00:11:23.060 Lulu Lemon.

00:11:23.940 Right.

00:11:24.220 Like when you started it,

00:11:25.160 did you think it was going to turn into

00:11:27.040 what it is today?

00:11:28.440 Was there a vision that this is something

00:11:30.020 everybody needs to use?

00:11:31.300 Because I'd seen what had happened

00:11:34.140 in the surfskate snowboard industry

00:11:35.780 when I got into it and how quickly it grew,

00:11:38.380 my first yoga class was with six people,

00:11:41.040 and within a month, it was 30 people.

00:11:43.020 That was faster than I'd seen

00:11:44.820 in the surfskate snowboard business,

00:11:46.440 but I had no idea it would be as big as it was.

00:11:49.540 But I knew I was in it first.

00:11:51.960 I knew I had a new business model

00:11:53.620 of eliminating the wholesale person in the middle,

00:11:57.460 and I knew I was probably one of the only people

00:12:00.000 in the world that was really thinking

00:12:01.240 of technical clothing outside of mountain gear.

00:12:04.300 Because I'd come from the snowboard industry,

00:12:06.220 and now, you know, to think of like being in the gym

00:12:08.980 and actually thinking about that in the same kind of form

00:12:11.560 as mountain survival clothing was an interesting context.

00:12:15.340 You seem very methodical.

00:12:16.780 Have you read the book Blue Ocean Strategy?

00:12:19.040 Yes, but a long time ago.

00:12:21.180 Long time ago?

00:12:21.860 Yeah.

00:12:22.160 I read 100 books a year,

00:12:23.480 so it gets lost in what information comes from what book.

00:12:28.060 It almost sounds like that's what you did.

00:12:30.240 You had a blue ocean.

00:12:31.320 I mean, it almost seems like you came out

00:12:33.160 and, you know, you had a blue ocean.

00:12:34.880 By the way, who came after you that's,

00:12:36.540 would you say, would you put as a competitor of Lululemon?

00:12:39.260 Well, probably the closest that came was Athleta.

00:12:44.040 They started off on online, and then The Gap bought them.

00:12:48.060 Yeah, I'd say that's as close as it came.

00:12:50.020 Of course, everyone's morphed into

00:12:52.400 and, you know, created an aura of competition

00:12:55.180 around Lululemon, which I think Lululemon

00:12:57.340 definitely had the chance to move out of that.

00:12:59.480 I mean, you know, we were seven years ahead of anybody,

00:13:03.260 and then, you know, we had the chance in probably 210

00:13:05.740 to really own the whole space of mindfulness

00:13:08.700 the same way that Lululemon did for yoga.

00:13:11.240 But, you know, a company gets big.

00:13:12.860 You get people that don't want to change.

00:13:14.960 I'd kind of lost my voting power on the board

00:13:17.540 to be able to go, no, this is the future.

00:13:20.500 I couldn't prove the future,

00:13:22.140 and it's so easy for metric people to prove the past.

00:13:25.240 So, and they get very nervous about investing in the future,

00:13:29.700 especially if they're a public company

00:13:32.020 and they're really concerned with quarterly results.

00:13:35.200 And so, why don't we transition with that?

00:13:37.020 Because I know you mentioned The Gap,

00:13:38.460 your new book called Little Black Stretchy Pants.

00:13:41.700 The cover is an incredible cover.

00:13:43.400 You have this whole, and by the way,

00:13:45.400 I mean, you talk about, you know,

00:13:47.260 the fact that when you made these pants,

00:13:48.860 one of the things about a woman is the fact 1.00

00:13:50.420 that they're uncomfortable when they wear their pants,

00:13:52.860 that, you know, they're just worried at yoga,

00:13:54.280 but they don't want to wear it in the streets

00:13:55.340 because athleisure, there's a different word.

00:13:58.200 The whole camel toe goes away, 1.00

00:14:00.000 and you were thinking about designing it

00:14:01.540 in a way where people get comfortable,

00:14:03.180 and they go in the streets and sport it.

00:14:05.460 But, you know, when you're talking about

00:14:07.160 some of the creativity that goes away in the business,

00:14:11.460 would you say some of that was

00:14:13.000 when you brought in Christine Day?

00:14:15.000 Because in the book, you talk about Christine Day,

00:14:17.000 the existing CEO at the time,

00:14:18.420 that you had a bit of a direct conversation with.

00:14:21.260 Can you walk me a little bit

00:14:22.440 through what happened there?

00:14:23.560 We were a company that,

00:14:25.240 one, I had three kids under the age of two

00:14:27.760 when I kind of decided I was going to like...

00:14:30.180 Three kids under the age of two.

00:14:31.480 Under the age of two, yeah.

00:14:32.000 So it was kind of like,

00:14:33.400 Lululemon was a cash cow.

00:14:34.900 Didn't need any money.

00:14:36.480 But I needed advice,

00:14:38.100 and I wanted to, you know, to transition.

00:14:40.360 And my job as an entrepreneur,

00:14:42.080 I thought from the book, The E-Myth, 0.79

00:14:43.820 was always to move myself out of...

00:14:46.500 Technical?

00:14:46.780 Like, no, no, move myself out of day-to-day operations

00:14:51.280 and get above so I could, like,

00:14:53.020 be that seven years in the future.

00:14:54.900 Christine Day was a great, you know,

00:14:57.500 CEO for the first couple of years.

00:14:59.780 But then it became obvious to me

00:15:01.620 that there's a real difference

00:15:03.060 between what a CEO is

00:15:04.440 and what a chief operating officer is.

00:15:07.300 The CEO has to keep the culture and the vision.

00:15:10.000 I think that's their number one job, to me.

00:15:12.440 The COO is somebody who runs the company

00:15:15.320 and runs the operation, the metrics.

00:15:17.960 So what became clear to me after a while

00:15:21.020 was that I had an operator metric CEO.

00:15:24.040 So there's an obvious clash

00:15:25.540 because I'm looking for things seven years in the future

00:15:28.560 and position the company seven years in the future,

00:15:30.940 and a metric CEO will want to be, you know,

00:15:33.840 provide the numbers for Wall Street that quarter.

00:15:37.020 When that happens and they're bonused that way,

00:15:41.040 then they're going to operate in a short-term fashion.

00:15:45.800 And the easiest way to do that,

00:15:47.680 especially with a great brand like Lululemon,

00:15:49.820 you just lower the expenses.

00:15:52.640 In other words, the great kind of people you have,

00:15:56.480 the great level of quality you have,

00:15:58.080 really easy to cut down for a couple of years,

00:16:00.720 raise the prices.

00:16:02.260 It looks like the CEO's a genius.

00:16:04.020 When I look at it and I go,

00:16:06.820 those are called bad profits.

00:16:08.640 In the long run, that's going to kill you,

00:16:10.380 which is exactly what happened to Lululemon.

00:16:12.800 So let me ask you.

00:16:14.300 So CEO and COO,

00:16:17.240 the role of a COO is purely operational

00:16:19.700 on a daily basis to you.

00:16:21.420 So what is the role of a CMO?

00:16:23.920 I know it's marketing,

00:16:24.960 but is it pretty specific to you on how you gauge?

00:16:26.980 Because you seem like you're pretty meticulous

00:16:28.780 on what you expect from each role

00:16:31.180 and define each role.

00:16:32.380 What do you look at a CMO or a president?

00:16:35.260 Is a president different than a CMO?

00:16:36.680 I'm actually curious to know what you think about that.

00:16:38.760 Well, I think a lot of these,

00:16:40.180 when you're talking about president,

00:16:42.080 COO, CEO,

00:16:43.760 a lot of those are like indicating

00:16:45.480 that that person's next in line.

00:16:47.540 I don't know where president fits in

00:16:49.960 because I've never really had a president.

00:16:51.800 I've had the COO.

00:16:53.580 But if you put someone's COO,

00:16:55.540 it's really like saying,

00:16:56.420 okay, if the CEO got hit by a bus,

00:16:59.880 the COO is in there.

00:17:01.400 And it's an indication to the public market

00:17:04.460 that you've got somebody ready and in place ready

00:17:07.020 to step into that position.

00:17:09.360 Because in a public board,

00:17:12.100 the number one job that they have

00:17:13.980 is to have a great CEO.

00:17:16.540 Their number two job

00:17:17.760 is to have a pipeline for that CEO.

00:17:20.160 Wow.

00:17:20.520 So no one who's going to replace them.

00:17:23.100 Sure.

00:17:23.740 And what is that typical timeline?

00:17:25.460 Is there a set timeline or not necessarily?

00:17:27.540 Well, it really depends on who your CEO is.

00:17:30.800 I mean, in most cases,

00:17:32.080 a CEO will last like four to five years.

00:17:34.440 Okay.

00:17:34.680 And it's really, in my belief,

00:17:37.280 that the CEO's number one job

00:17:40.780 from the book Good to Great,

00:17:43.020 a number five leader,

00:17:44.440 is develop someone who's better than and under them.

00:17:48.080 Such that whenever they leave,

00:17:50.060 actually the company runs better.

00:17:52.300 That's, to me, is a level five CEO.

00:17:54.800 Let me ask you,

00:17:55.720 did Christine Day follow you as a CEO? 0.97

00:17:58.780 Is that when you stepped down as a chairman and CEO

00:18:01.860 and then she came?

00:18:02.740 Or had you already had other CEOs after you

00:18:05.260 before bringing Christine Day in?

00:18:07.420 Yeah, I was CEO.

00:18:08.840 And then when we went public,

00:18:10.260 I became chairman.

00:18:11.300 And we hired a CEO who worked for Reebok.

00:18:16.980 Bob Mears was his name.

00:18:18.340 And he did a great job helping us with our production

00:18:21.660 because that was probably our bald neck at the time.

00:18:24.080 He was still an East Coast kind of executive

00:18:26.020 and wasn't quite right for us,

00:18:28.200 but he was kind of what I'd call a pretty face

00:18:30.720 for going public.

00:18:32.240 In other words,

00:18:32.860 Interesting.

00:18:33.160 The people that are going,

00:18:34.360 that are investing when you go public,

00:18:36.300 they've got a thousand companies to look at.

00:18:38.240 So they want to know that there's somebody in there

00:18:40.300 that's kind of done it before

00:18:41.600 or kind of been in a public company,

00:18:43.400 kind of understands it.

00:18:44.560 It's kind of like they need a babysitter or some,

00:18:47.720 it's part of their due diligence.

00:18:49.740 Do you think it's almost mathematically impossible

00:18:52.480 for a founder of a company

00:18:55.820 to be happy with any CEO he or she hires?

00:18:59.720 Because as a founder,

00:19:00.840 you're the heartbeat, right?

00:19:02.740 And so to you,

00:19:03.860 everything is like,

00:19:04.780 do you know what we've put into this?

00:19:06.280 Do you know what this logo means?

00:19:07.680 Do you know what the stories behind the system?

00:19:09.420 Do you know behind the culture of this?

00:19:11.080 Do you know why we look at vision first?

00:19:13.140 Do you think it's difficult for a founder

00:19:15.580 and a visionary like yourself

00:19:17.740 to have anybody that follows you

00:19:19.600 and say,

00:19:19.860 I'm happy with the CEO?

00:19:20.700 Well, I think specifically

00:19:22.300 if the visionary founder

00:19:25.620 got more of a creative mind like I do,

00:19:28.380 any great creative person is never happy.

00:19:31.820 If they're happy,

00:19:33.320 they're the wrong creative person.

00:19:35.020 Got it.

00:19:35.480 The minute a creative person has created something,

00:19:37.800 they're unhappy with it.

00:19:40.560 I mean, really,

00:19:42.340 and they should be.

00:19:43.840 So my job then is to like,

00:19:46.800 if okay, great,

00:19:47.440 I'm a creative person

00:19:48.520 and I'm so I'm an analytical creative person.

00:19:51.680 So my job then is to surround myself

00:19:54.400 with structural social people.

00:19:57.220 So in any kind of dynamics,

00:19:58.820 there has to be that balance.

00:20:00.980 So if I'm that,

00:20:02.480 as I knew I was a,

00:20:04.120 you know,

00:20:04.740 visionary,

00:20:06.080 creative,

00:20:06.940 analytical person,

00:20:08.520 then I needed my CEO

00:20:09.880 to be the very opposite,

00:20:11.760 which in almost all cases,

00:20:14.480 they have been.

00:20:15.700 And I think that

00:20:16.900 that system worked out beautiful

00:20:18.600 until it didn't.

00:20:20.000 I mean,

00:20:20.340 the real story about that

00:20:21.900 is that I lost my control of the board.

00:20:24.880 And I think for anybody going

00:20:26.760 to get private equity

00:20:28.100 and then to go public,

00:20:29.840 right when you go to get,

00:20:31.780 go with private equity,

00:20:32.920 you've got to know

00:20:33.500 what your board of directors

00:20:35.340 and the governance

00:20:36.240 is going to look like

00:20:37.060 when you're public,

00:20:37.960 not when you're just taking on

00:20:40.120 private equity money.

00:20:41.300 Because that's where really

00:20:42.360 all the power lays

00:20:43.360 is when the entrepreneur

00:20:44.240 first sells their company.

00:20:46.240 So I didn't do that.

00:20:47.600 It's my fault.

00:20:48.620 You know,

00:20:48.940 I have,

00:20:49.660 I lost control of the board.

00:20:51.260 Is that when you sold

00:20:51.700 48% of the stakes?

00:20:53.020 Is that what you were saying?

00:20:53.800 That event was kind of

00:20:54.780 how things changed?

00:20:55.620 Yeah,

00:20:55.880 which was great.

00:20:56.680 It was all,

00:20:57.140 that was all perfect.

00:20:58.820 But I just didn't see

00:20:59.520 the long-term ramifications

00:21:00.980 of not being digging in

00:21:02.480 and finding out

00:21:03.580 what the governance structure

00:21:04.520 was going to be

00:21:05.160 when we went public.

00:21:06.600 Naturally,

00:21:07.120 when you go public,

00:21:08.020 and this is like

00:21:08.780 really,

00:21:09.340 really fascinating,

00:21:10.760 you end up,

00:21:11.580 I had no idea

00:21:12.640 that we needed

00:21:13.200 more board of directors

00:21:14.140 than we already had.

00:21:15.380 You know,

00:21:15.600 I get told like a month before,

00:21:17.820 I'm a very in-the-depth

00:21:20.400 creative person,

00:21:21.440 so it's not like

00:21:22.720 I've gone out

00:21:23.340 and been to Harvard.

00:21:24.660 I've had an economics degree,

00:21:26.060 but that didn't mean

00:21:26.680 I knew somebody

00:21:27.440 that could be

00:21:28.060 on the public board of directors,

00:21:29.700 the United States

00:21:30.380 board of directors.

00:21:31.180 My board that I had

00:21:32.400 elected more people

00:21:33.540 because you've got to have

00:21:34.460 three people on the governance,

00:21:35.880 three people on the audit,

00:21:36.940 and three people

00:21:38.200 on the compensation committee.

00:21:42.060 Just the nature

00:21:43.500 of who wants to be

00:21:45.320 on a board,

00:21:47.040 the mindset of that person

00:21:49.140 is not necessarily

00:21:51.480 a creative person.

00:21:53.420 In other words,

00:21:54.220 almost the way

00:21:55.400 the boards are set up

00:21:56.500 kills a creative person.

00:21:58.280 It's very metric-driven,

00:22:00.960 it's very by-the-book,

00:22:02.680 the litigation system

00:22:03.860 in the United States

00:22:04.600 is phenomenal,

00:22:05.960 so everything,

00:22:07.420 nothing can kind of

00:22:08.260 get documented,

00:22:09.100 everything can kind of

00:22:09.920 get talked about.

00:22:10.900 There's no real love

00:22:12.520 or caring about

00:22:13.920 the non-metrics

00:22:15.000 of innovation,

00:22:16.580 culture, brand,

00:22:18.100 because you can never

00:22:19.380 get sued for it.

00:22:20.720 So the board of directors

00:22:21.640 doesn't really care.

00:22:23.040 A creative founder

00:22:24.820 who's, that's their,

00:22:26.540 that's what they really

00:22:27.360 bring to the board of directors,

00:22:29.040 loses their power

00:22:30.200 because what they say

00:22:31.520 is one versus

00:22:33.160 almost eight other people.

00:22:34.600 When that happened to you,

00:22:35.780 what did you do?

00:22:36.720 You know,

00:22:37.000 when a creative person

00:22:37.780 loses the ability

00:22:38.840 to keep being creative

00:22:39.740 because you're being driven

00:22:40.380 by logical people,

00:22:41.220 how did you handle that?

00:22:42.220 I didn't really know

00:22:43.180 what was happening.

00:22:44.480 I felt like,

00:22:45.600 like we had these directors

00:22:47.820 that were coming

00:22:48.560 to our company

00:22:49.440 because they went,

00:22:50.740 man,

00:22:51.080 Lululemon is like

00:22:51.960 creating the number one

00:22:53.060 metrics in the world

00:22:54.040 in apparel.

00:22:54.820 I mean,

00:22:55.440 it was off the charts.

00:22:57.460 And I thought

00:22:57.960 that they would want

00:22:58.760 to come to the company

00:22:59.720 to learn why that was

00:23:01.820 because directors don't,

00:23:03.860 to a great extent,

00:23:04.660 don't really need the job.

00:23:05.880 Most of them

00:23:06.260 are quite wealthy

00:23:07.060 and they're trying

00:23:08.200 to give back

00:23:08.920 and I really honor that.

00:23:10.220 After a while,

00:23:11.120 that kind of gets lost.

00:23:13.320 Non-creative people

00:23:14.920 can't handle

00:23:15.780 the unknown

00:23:17.260 that creative people

00:23:18.280 bring into the process.

00:23:19.820 I always believe

00:23:20.520 in this thing,

00:23:21.060 the law of attraction,

00:23:21.960 and I think that

00:23:23.180 they want more people

00:23:24.800 like them

00:23:25.620 surrounded them

00:23:26.880 in the board.

00:23:27.500 Like them,

00:23:28.060 not like you.

00:23:28.720 Yeah, right.

00:23:29.620 And they also want

00:23:30.500 a CEO like that

00:23:32.020 because they know

00:23:33.320 how to talk

00:23:33.920 to that CEO.

00:23:34.820 Do you think

00:23:35.480 it's almost like

00:23:36.300 a company starts,

00:23:38.060 you are the most

00:23:39.580 important person

00:23:40.240 in a company

00:23:40.760 because you're

00:23:41.280 the creative,

00:23:41.960 visionary founder,

00:23:42.720 right?

00:23:42.980 And as a company

00:23:43.640 starts going past

00:23:44.440 the maturity phase,

00:23:45.220 it's almost like

00:23:45.960 the board of directors,

00:23:46.900 the directors,

00:23:47.500 the money people

00:23:48.060 want to get rid of you

00:23:49.540 because you're almost

00:23:50.240 getting in the way

00:23:51.320 of them increasing

00:23:52.200 the data,

00:23:52.860 the X factor,

00:23:53.540 so they can make

00:23:54.340 the most on their money

00:23:55.220 in return.

00:23:55.700 Do you think

00:23:55.940 it's almost like

00:23:56.420 you're getting in the way

00:23:57.360 as a creative founder?

00:23:58.720 Do you think

00:23:59.280 they look at it

00:23:59.980 that way?

00:24:00.520 I think they do.

00:24:01.900 I think they're,

00:24:02.660 but they don't know

00:24:03.540 that they think that way.

00:24:04.660 That's the interesting thing.

00:24:05.480 It's a very subconscious thing.

00:24:07.200 But I know

00:24:07.980 they're smart people

00:24:09.140 and I know

00:24:09.620 they've been in

00:24:10.140 big businesses

00:24:10.800 and I know

00:24:11.520 that they,

00:24:12.880 you know,

00:24:13.120 whatever business

00:24:14.020 they were in,

00:24:14.600 they knew that

00:24:15.080 there had to be

00:24:15.920 a right balance

00:24:17.320 between creative

00:24:18.900 and analytic

00:24:19.560 or metric,

00:24:20.540 you know,

00:24:21.020 a metric over here.

00:24:22.460 Safety,

00:24:23.140 security,

00:24:24.400 don't rock the boat,

00:24:25.820 be careful

00:24:26.440 versus,

00:24:28.000 you know,

00:24:28.360 the creative person

00:24:29.580 who's out on this end.

00:24:31.100 So you've got to have

00:24:32.040 both these

00:24:32.600 and it's a teeter-totter

00:24:33.640 and you've got to balance.

00:24:34.580 Sometimes it goes up and down,

00:24:35.840 up and down.

00:24:36.400 Interesting.

00:24:37.220 So then I'll have

00:24:38.220 a follow-up question

00:24:38.860 for someone like you.

00:24:39.740 Say I'm your protege.

00:24:41.780 I look up to you

00:24:42.680 and you've chosen

00:24:43.340 to mentor me

00:24:43.880 for no reason

00:24:44.420 just to want to mentor me,

00:24:45.420 right?

00:24:46.180 And I'm coming to you

00:24:47.380 and I'm speaking to you

00:24:48.160 and you say,

00:24:48.540 Pat,

00:24:48.700 you're literally too competitive.

00:24:50.220 And I'm like,

00:24:50.580 but you don't understand,

00:24:51.320 Chip,

00:24:51.580 you know,

00:24:52.060 we're going to build,

00:24:52.700 everybody needs to have this.

00:24:53.980 This is just amazing.

00:24:55.500 But Pat,

00:24:55.980 I'm just telling you,

00:24:56.540 you're literally too competitive.

00:24:57.480 Your edge is too much.

00:24:58.360 Your edge is too this,

00:24:59.140 right?

00:24:59.880 So for me,

00:25:00.940 I'll come and say,

00:25:02.020 well,

00:25:02.240 Chip,

00:25:02.920 where were you

00:25:03.660 when you were my age,

00:25:05.480 right?

00:25:05.760 What were you thinking

00:25:06.600 about when you were my age?

00:25:08.200 And then you're going

00:25:08.900 to come back and say,

00:25:09.740 but you don't understand,

00:25:10.600 Pat,

00:25:10.760 it's too much

00:25:11.300 or you're going to

00:25:11.780 drive people away

00:25:12.420 by being this competitive.

00:25:13.820 So do you think

00:25:14.560 it's almost similar

00:25:15.640 like when I asked

00:25:16.500 and I said,

00:25:17.380 how competitive were you?

00:25:18.400 I'm very competitive

00:25:19.060 but I had to learn

00:25:19.680 how to collaborate

00:25:20.300 and bring people together

00:25:21.360 and rather making it

00:25:22.520 about the team.

00:25:23.360 Do you think

00:25:23.800 this is a very common trend

00:25:25.440 that happens?

00:25:26.020 I have my own board

00:25:26.820 and my board,

00:25:27.960 these are people

00:25:28.380 that have made money.

00:25:29.820 These are people

00:25:30.300 that have done

00:25:30.920 fairly well for themselves

00:25:32.400 so they're not coming in

00:25:33.460 because they're just

00:25:34.700 an advisory board,

00:25:36.120 an uncle

00:25:36.620 that makes 600 grand

00:25:38.020 here that's doing

00:25:38.500 you a favor.

00:25:38.960 These are people

00:25:39.300 that have made

00:25:39.780 200 million,

00:25:40.920 100 million,

00:25:41.500 50 million.

00:25:42.100 They've done well

00:25:42.620 for themselves.

00:25:43.320 So they look at it

00:25:44.260 as an X factor,

00:25:45.120 right?

00:25:45.400 Do you think

00:25:45.860 the longer you're in business

00:25:46.980 it becomes more logical

00:25:48.060 and the emotional side

00:25:48.980 goes away?

00:25:49.680 Would you say

00:25:50.060 there was an element

00:25:50.820 of paranoia with you

00:25:52.140 or no?

00:25:52.700 You were pretty free-spirited

00:25:53.880 let's trust everybody

00:25:55.000 good environment.

00:25:56.140 I definitely trust everybody.

00:25:58.500 I think

00:25:58.780 give before expectation

00:26:00.500 a return.

00:26:01.440 I think if I had somebody

00:26:02.500 who was that competitive

00:26:03.520 I would probably

00:26:04.380 let them go

00:26:05.200 or I would coach them.

00:26:07.160 What I'm really looking for

00:26:08.260 is I'm looking for leaders

00:26:09.440 that can create

00:26:10.080 other leaders.

00:26:11.040 Of course.

00:26:11.640 So in other words

00:26:12.320 if people aren't going

00:26:13.120 to look up to that

00:26:13.900 competitive person

00:26:14.860 and go

00:26:15.280 that's somebody

00:26:16.240 I can learn from

00:26:17.260 and that I can move

00:26:18.100 to the next level from

00:26:19.060 and where everyone's

00:26:20.440 inclusive and everyone

00:26:21.440 wins in it

00:26:22.200 then it probably

00:26:23.680 wouldn't be the right

00:26:24.440 culture for Lululemon.

00:26:25.700 Got it.

00:26:26.080 And that's one of the reasons

00:26:27.100 why when you had a chance

00:26:28.320 to but maybe it is

00:26:29.340 I don't know

00:26:29.680 maybe you can correct me

00:26:30.500 with this

00:26:30.820 where you almost

00:26:32.320 you were twice the size

00:26:33.880 of a price point

00:26:34.860 of Under Armour

00:26:36.280 and you sat with

00:26:38.340 Plank

00:26:39.180 I believe

00:26:39.840 and you guys talked

00:26:41.100 about doing a deal

00:26:41.720 together

00:26:42.060 but you said the company

00:26:42.880 was a little too

00:26:43.820 over the edge

00:26:44.960 or I don't know

00:26:45.780 what word you used

00:26:46.760 but

00:26:46.940 Yeah and that

00:26:47.520 all gets overblown

00:26:49.020 I didn't ever

00:26:49.860 talk to Kevin Plank

00:26:51.260 Okay that's what

00:26:51.960 the article was written

00:26:52.800 that you sat down

00:26:53.580 and you spoke to him

00:26:54.500 Whatever

00:26:55.120 if that was an article

00:26:56.280 that was a media person

00:26:57.680 creating a story

00:26:58.880 in order to sell

00:26:59.740 sensationalism

00:27:00.680 in order to sell

00:27:01.600 marketing clicks

00:27:02.780 in order to pay

00:27:03.720 their mortgage

00:27:04.260 and their kids

00:27:04.940 let's be clear on that

00:27:06.640 No

00:27:07.220 the only statement

00:27:08.060 I made is that

00:27:08.980 you know

00:27:09.680 I went

00:27:10.040 you know

00:27:10.500 in my own mind

00:27:11.280 I went down

00:27:11.900 we talked

00:27:12.500 and I went

00:27:13.320 wow

00:27:13.620 wouldn't it be neat

00:27:14.620 if we could put

00:27:15.840 this great men's company

00:27:16.840 together with this

00:27:17.580 great woman's company

00:27:18.280 So you actually saw it

00:27:19.380 Obvious

00:27:19.840 I mean Nike

00:27:20.420 was the big

00:27:21.240 the big nut

00:27:22.900 you know

00:27:23.240 we were both good

00:27:24.020 at opposite ends

00:27:24.940 of that

00:27:25.380 so it made sense

00:27:27.080 to like think about it

00:27:28.160 it would be stupid

00:27:28.880 of me not to like

00:27:29.700 contemplate that

00:27:30.400 that would be

00:27:30.940 a good move

00:27:31.800 but this

00:27:32.720 the cultures

00:27:33.420 were just too diverse 1.00

00:27:34.820 one ultra male

00:27:36.240 win at all costs

00:27:37.300 and Lululemon

00:27:38.440 was everyone wins

00:27:39.500 It almost sounds like

00:27:40.920 because I know

00:27:41.360 in the book

00:27:41.800 you talk a lot

00:27:42.460 about the fact

00:27:43.040 that there's

00:27:43.400 three different

00:27:43.960 types of women 1.00

00:27:45.420 and one is

00:27:46.900 a superwoman

00:27:47.740 the other one

00:27:48.480 is a balanced woman

00:27:49.620 and then

00:27:50.640 Power Woman 0.99

00:27:51.520 Power Woman 0.99

00:27:52.140 can you

00:27:52.560 can you talk

00:27:53.220 a little bit

00:27:53.700 about on that

00:27:55.320 because

00:27:56.060 I mean

00:27:56.840 you talk about

00:27:57.340 September 28

00:27:58.640 32 years old

00:27:59.960 that's very specific

00:28:01.400 you know

00:28:02.400 it's

00:28:02.620 for a target market

00:28:03.460 for a target market

00:28:04.480 you got very specific

00:28:05.740 on who was

00:28:06.500 the ideal target market

00:28:07.760 for you

00:28:08.180 and it's detailed

00:28:09.760 owns a cat

00:28:11.380 it's thinking about

00:28:12.760 possibly getting married

00:28:14.400 but not yet

00:28:15.320 it's athletic

00:28:16.500 takes care of her body

00:28:17.700 you were that detailed

00:28:19.120 about who your customer was

00:28:20.440 that's incredible

00:28:21.340 I believe

00:28:22.320 as a

00:28:23.100 to start a company

00:28:24.320 you've got to know

00:28:25.080 the real subconscious

00:28:26.460 of the customer

00:28:27.260 that's buying it

00:28:28.060 and for me

00:28:29.360 that 32 year old

00:28:30.700 was our iconic

00:28:31.660 like that was our

00:28:32.820 I don't know

00:28:33.900 Tiger Woods

00:28:34.640 LeBron James

00:28:35.420 whatever you want it to be

00:28:36.580 we didn't have to go out

00:28:37.580 and buy

00:28:37.940 you know

00:28:38.820 big money sponsorship

00:28:40.700 ours was just to make sure

00:28:42.060 that

00:28:42.380 that 32 year old

00:28:43.900 loved everything

00:28:44.560 that we did

00:28:45.200 it's interesting

00:28:46.100 because everything

00:28:47.080 we do is segmented

00:28:48.300 every time we go

00:28:49.140 on the computer

00:28:49.800 anything we say

00:28:51.000 it's all

00:28:51.700 segmented

00:28:53.020 so

00:28:53.280 in branding

00:28:54.780 then I had to figure out

00:28:56.380 well

00:28:56.640 who is our customer

00:28:58.480 and so

00:28:59.160 then that's when

00:29:00.100 I came up with

00:29:01.040 just like

00:29:01.820 I'm sorry

00:29:02.260 just like Gen X

00:29:03.200 Gen Y

00:29:03.860 you know

00:29:04.500 that type of thing

00:29:05.400 I came up with

00:29:06.100 Superwoman

00:29:06.720 was a certain age

00:29:07.840 a certain mindset

00:29:08.700 and that was the mother

00:29:09.800 of these Supergirls

00:29:11.080 that were

00:29:11.480 these highly educated

00:29:13.560 daughters

00:29:14.120 of these Powerwoman 0.92

00:29:15.500 they created a whole new world

00:29:17.380 that had never existed before

00:29:18.740 and that was a

00:29:19.520 really a 24 to 32 year old woman 0.99

00:29:22.180 that was

00:29:23.180 highly educated

00:29:24.800 professional

00:29:25.300 with no children

00:29:26.220 owned a condo

00:29:27.360 and very fit

00:29:29.020 traveled the world

00:29:30.120 because before that age

00:29:31.860 in 1998

00:29:32.520 you know

00:29:33.160 you could say

00:29:34.220 all women 0.66

00:29:35.760 got

00:29:36.120 you know

00:29:37.240 had babies at 24

00:29:38.440 and left the workforce

00:29:39.960 so it was a major shift

00:29:42.000 in the way the world occurred

00:29:43.340 and I was putting language

00:29:45.240 to what I saw in reality

00:29:47.440 so

00:29:47.820 did you like

00:29:48.780 I want to know the process

00:29:49.900 because for me

00:29:50.620 I'm in the financial industry

00:29:51.740 so

00:29:52.060 who's your ideal client

00:29:53.580 27 to 35

00:29:54.500 married with kids

00:29:55.740 you know

00:29:56.480 ambitious

00:29:57.680 certain drive

00:29:58.720 that they have

00:29:59.340 we have certain things

00:30:00.440 that we look at

00:30:01.060 but for you

00:30:01.800 what was your processing

00:30:03.580 of coming out

00:30:04.660 with who would be

00:30:05.180 the perfect ideal candidate

00:30:06.240 for you

00:30:06.680 was it research

00:30:07.520 was it you sitting down

00:30:09.120 and thinking about

00:30:09.560 did you collaborate

00:30:10.260 with other people

00:30:10.940 on your board

00:30:11.500 or your home office

00:30:12.300 or your marketing team

00:30:13.180 how did you come out

00:30:14.220 with that number

00:30:15.100 in Africa

00:30:15.860 I know

00:30:16.520 so much charity money

00:30:18.580 was moving in there

00:30:19.500 because the goal

00:30:20.300 was to educate women 0.64

00:30:21.620 because everyone knew

00:30:23.300 a better educated woman

00:30:25.300 will wait longer

00:30:26.080 to have children

00:30:26.760 and have fewer children

00:30:27.720 so when I woke up

00:30:29.060 one day

00:30:29.420 and I saw

00:30:30.040 something in the paper

00:30:31.240 that said

00:30:31.820 60% of the graduates

00:30:33.500 at a university

00:30:34.200 are women 0.97

00:30:34.780 like in 1998

00:30:36.360 I knew

00:30:37.580 there was a massive

00:30:39.420 change in the world

00:30:40.660 and maybe I was

00:30:41.520 the first person

00:30:42.340 to see it

00:30:43.000 where really

00:30:44.100 I think that was

00:30:44.900 the inflection point

00:30:45.920 for women being

00:30:46.820 more powerful than men

00:30:48.140 but it's 20 years ago

00:30:49.920 then you kind of

00:30:50.620 got to go

00:30:51.060 okay if these girls 1.00

00:30:52.040 are now 22 years old

00:30:53.480 what are they going

00:30:54.940 to grow into

00:30:55.580 like what's going

00:30:56.200 to happen

00:30:56.540 well they are

00:30:57.880 they are going

00:30:58.640 to have condos

00:30:59.480 they are going

00:30:59.900 to be well dressed

00:31:00.820 they're going

00:31:01.120 to have money

00:31:01.760 28 year old woman

00:31:03.460 before that

00:31:04.060 didn't have any money

00:31:04.980 because they had

00:31:05.700 two kids

00:31:06.320 and their husband

00:31:07.020 was out working

00:31:07.760 and they were

00:31:08.640 struggling on a mortgage

00:31:09.660 and there was

00:31:10.260 nothing there

00:31:10.900 but the minute

00:31:12.200 that these women

00:31:13.500 are still single

00:31:14.360 and they're still

00:31:15.220 just growing

00:31:15.780 their career

00:31:16.500 and rather than

00:31:18.220 leaving the workforce

00:31:19.500 at 24

00:31:20.240 and now they're

00:31:20.720 28, 30, 32

00:31:22.300 making not

00:31:23.460 just like

00:31:23.980 30,000 a year

00:31:25.240 but 80, 90, 100,000

00:31:27.100 there's a lot

00:31:28.160 of disposable income

00:31:29.160 there

00:31:29.500 so then I went

00:31:30.340 okay

00:31:30.700 I knew yoga was coming

00:31:32.200 I knew there was

00:31:32.820 a lot of other things

00:31:33.600 kind of put in place

00:31:34.540 and I knew that

00:31:36.100 there was now

00:31:37.140 the ability

00:31:37.740 to buy a very

00:31:38.640 very high quality

00:31:39.840 athletic product

00:31:40.900 that had never

00:31:41.900 been made before

00:31:42.780 so that was your process

00:31:44.460 and on how you came

00:31:45.140 out with that

00:31:45.560 so do you have a system

00:31:47.180 on how you make decisions

00:31:48.120 like in your mind

00:31:49.160 is there a system

00:31:49.980 that you have

00:31:50.420 on how you make

00:31:50.980 any kind of a decision

00:31:51.980 I know one of my

00:31:53.160 biggest issues

00:31:54.540 and other people

00:31:55.780 maybe other entrepreneurs

00:31:56.980 will find this

00:31:57.840 is again

00:31:58.440 being a creative person

00:31:59.680 being five to seven

00:32:00.680 years in the future

00:32:01.600 almost everything

00:32:03.140 I think is going

00:32:04.200 to happen

00:32:04.760 is it's almost

00:32:05.980 like a feeling

00:32:06.880 because it's

00:32:08.220 a million touch points

00:32:09.700 not any one

00:32:10.940 specific thing

00:32:11.900 and I say that

00:32:13.320 you know

00:32:13.880 six percent of women

00:32:15.000 out of university

00:32:15.720 were graduates

00:32:17.620 but that was like

00:32:18.540 that took me

00:32:19.500 over the edge

00:32:20.120 of probably a thousand

00:32:21.160 different touch points

00:32:22.180 that I probably had

00:32:23.080 internally

00:32:23.700 but I didn't know

00:32:24.980 how to express

00:32:25.980 expressing you know

00:32:27.380 like a color

00:32:28.200 to a blind person

00:32:29.320 is like very difficult

00:32:30.500 and it's the same

00:32:31.420 kind of thing

00:32:32.120 and why creative

00:32:33.680 creative people

00:32:34.620 inside a company

00:32:35.780 have to be protected

00:32:36.880 because sometimes

00:32:38.900 they're wrong

00:32:39.480 and when they go wrong

00:32:41.060 then the metric people

00:32:42.700 just love to go

00:32:43.740 oh I knew you'd be wrong

00:32:44.900 of course

00:32:45.320 I'm going to be wrong

00:32:46.220 every now and again

00:32:47.200 but that gives them

00:32:48.320 the ability to jump in

00:32:49.420 take control

00:32:50.160 put parameters

00:32:50.960 around the creative person

00:32:52.140 and the creativity

00:32:53.460 never comes back

00:32:54.600 and I'd say

00:32:55.520 this is the biggest

00:32:56.340 downfall of American

00:32:57.700 public companies

00:32:58.700 interesting

00:32:59.300 not knowing

00:33:00.200 how to nurture

00:33:01.140 the creative minds

00:33:02.260 and allowing data

00:33:03.240 to crush the creative

00:33:04.440 machine of coming up

00:33:06.120 with the next idea

00:33:06.920 is that kind of

00:33:07.780 what you're saying

00:33:08.220 right my statement

00:33:08.920 would be

00:33:09.320 you have to have

00:33:10.140 a CEO

00:33:10.660 that understands

00:33:11.500 creative so well

00:33:12.940 that they can

00:33:14.080 protect creative

00:33:15.000 from the metric

00:33:16.740 finance machine

00:33:18.700 that is usually

00:33:20.120 they're usually

00:33:21.100 better spoken

00:33:22.080 they're usually

00:33:22.660 better educated

00:33:23.680 they can prove

00:33:24.620 their data

00:33:25.180 because they have

00:33:26.260 metrics from the past

00:33:27.880 where when the

00:33:29.020 creative person

00:33:30.200 does something wrong

00:33:31.420 or you know

00:33:32.520 it doesn't work out

00:33:33.620 they can

00:33:34.500 then they have to

00:33:35.480 start proving the future

00:33:36.720 and if you have

00:33:37.920 eight of nine people

00:33:39.580 on your board of directors

00:33:40.600 that are sitting there

00:33:41.400 they're going to go

00:33:42.160 yeah we'll go with

00:33:43.560 this person

00:33:44.560 that can prove something

00:33:45.440 so you would say

00:33:47.000 somebody like you

00:33:47.920 is living in a future

00:33:48.980 truth

00:33:49.500 sure

00:33:49.860 sure

00:33:50.260 100%

00:33:50.820 so you're a future

00:33:52.160 truth guy yourself

00:33:53.160 sure

00:33:53.680 unbelievable

00:33:54.520 that's an interesting

00:33:55.640 way of so

00:33:56.060 so what do you do

00:33:57.040 with that

00:33:57.300 is it kind of like

00:33:58.040 politics

00:33:58.860 where it's like

00:33:59.240 democrats and republicans

00:34:00.300 they both kind of

00:34:00.860 need each other

00:34:01.380 to keep it balanced

00:34:02.700 or do you kind of

00:34:03.460 have to separate

00:34:04.180 creative fully

00:34:05.040 from logic

00:34:05.620 and don't let them

00:34:06.340 clash

00:34:06.660 because if you're

00:34:07.740 a creative founder

00:34:08.460 you have no choice

00:34:09.200 but to sit in that

00:34:09.920 board

00:34:10.140 and when you're

00:34:10.540 chairman of the board

00:34:11.940 and not allow

00:34:12.600 these guys to tell you

00:34:13.480 well what happened

00:34:14.000 last quarter

00:34:14.640 well what's going on

00:34:15.560 based on your numbers

00:34:16.380 you did

00:34:16.720 three quarters ago

00:34:18.000 or two years ago

00:34:18.700 it looks like

00:34:19.120 this is what's going

00:34:19.700 to happen

00:34:19.980 what do you do

00:34:21.100 to make sure

00:34:21.620 you don't have

00:34:22.200 your creative guys

00:34:23.300 heart be broken

00:34:24.140 at least you know

00:34:24.720 their ideas be broken

00:34:25.840 both sides have

00:34:26.980 to appreciate each other

00:34:28.160 and the great analogy

00:34:30.000 is just getting married

00:34:31.000 men and women

00:34:32.220 are not supposed

00:34:33.780 to be alike

00:34:34.540 on any kind of level

00:34:35.760 I mean there's

00:34:36.700 some crossover

00:34:37.940 but they have

00:34:39.260 an end vision

00:34:40.040 and an end goal

00:34:40.960 and in my mind

00:34:42.600 that's always

00:34:43.360 we want to raise

00:34:44.380 great children

00:34:45.180 that are productive

00:34:46.080 in the world

00:34:46.780 and that we love

00:34:47.860 and we love them

00:34:48.880 right

00:34:49.460 we want to be

00:34:50.360 great grandparents

00:34:51.120 that's the end goal

00:34:52.340 so you have

00:34:53.420 these two people

00:34:54.120 that almost can look

00:34:55.140 at life entirely

00:34:56.100 different ways

00:34:57.000 and even within that

00:34:58.380 you can have

00:34:58.860 one metric

00:34:59.460 and one creative person

00:35:00.620 you can have

00:35:01.340 one nurse 0.89

00:35:02.480 one engineer

00:35:03.240 do you know

00:35:03.640 what I mean

00:35:04.000 it's all over the place

00:35:05.080 but these people

00:35:06.340 because they have

00:35:07.080 a common end goal

00:35:08.260 they know

00:35:08.820 they need each other

00:35:09.700 to get there

00:35:10.420 and it's a synergy thing

00:35:12.520 one plus one

00:35:13.380 equals three

00:35:14.080 but if you just have

00:35:15.700 a metric board

00:35:16.620 then it's one

00:35:17.520 just have a bunch

00:35:18.440 of creative people

00:35:19.280 it's just one

00:35:20.400 I mean that has

00:35:21.380 that's the big opening

00:35:22.880 I'm trying to

00:35:23.640 really

00:35:24.660 well one of ten

00:35:25.740 big openings

00:35:26.280 I'm trying to

00:35:26.980 say in my book

00:35:28.080 so you know

00:35:28.580 one of the questions

00:35:29.120 I asked you earlier

00:35:29.800 that I'd like to bring up

00:35:30.920 is you know

00:35:32.120 so many times

00:35:33.140 a company has

00:35:34.360 a certain direction

00:35:36.200 they've gone product wise

00:35:37.440 hypothetically

00:35:38.120 like maybe

00:35:38.660 you know

00:35:39.360 some companies say

00:35:40.180 we're going to go

00:35:40.640 low income

00:35:41.180 we're going to go

00:35:41.600 middle America

00:35:42.160 we're going to go

00:35:42.800 upper class

00:35:43.680 we're going to go

00:35:44.140 affluent

00:35:44.520 because we're Goldman Sachs

00:35:45.740 and you have to come in

00:35:46.400 with a minimum

00:35:46.780 of ten million

00:35:47.500 and then you change

00:35:49.080 your philosophy

00:35:49.820 right

00:35:50.220 you went from

00:35:51.080 one percent men

00:35:52.020 ninety nine percent

00:35:53.120 women 1.00

00:35:53.480 now you're

00:35:53.940 thirty percent men

00:35:55.060 seventy percent women

00:35:56.300 that's not an easy

00:35:57.900 thing to do

00:35:58.540 how did you guys

00:35:59.900 make that big

00:36:01.180 of a transition

00:36:01.840 from one to thirty

00:36:02.680 well actually

00:36:03.300 I think it's not

00:36:04.120 good enough

00:36:04.780 I think it's actually

00:36:05.820 one of the big

00:36:06.860 failings of Lululemon

00:36:08.980 and a missed opportunity

00:36:11.180 I would call it

00:36:12.000 definitely when we

00:36:13.460 started off in yoga

00:36:14.420 there was

00:36:15.080 most men

00:36:16.000 were quite

00:36:16.900 slight

00:36:17.860 if I can put it

00:36:18.960 that way

00:36:19.360 and when I'm not

00:36:20.200 effeminate

00:36:21.140 but slight

00:36:21.980 because they were

00:36:23.080 in such good shape

00:36:24.040 but they were usually

00:36:24.620 on the small end

00:36:25.620 of things

00:36:26.020 and really in hot yoga

00:36:27.860 at that time

00:36:28.560 all you wore

00:36:29.340 I mean really

00:36:29.980 a lot of the men

00:36:30.600 that came

00:36:31.000 actually did wear

00:36:31.820 Speedos

00:36:32.360 and then we started

00:36:33.460 making you know

00:36:34.080 kind of short

00:36:34.620 kind of shorts

00:36:35.400 but it wasn't like

00:36:36.740 men needed

00:36:37.360 a lot of clothing

00:36:38.460 in those hot things

00:36:39.480 so that was

00:36:40.160 the genesis

00:36:40.860 of where we came from

00:36:43.000 and then women 0.99

00:36:43.880 just because

00:36:44.780 nobody else

00:36:45.640 was doing

00:36:46.100 women's

00:36:46.700 beautiful athletic

00:36:47.640 clothing

00:36:48.020 that was technical

00:36:48.740 we really

00:36:49.760 the market

00:36:50.540 was so big

00:36:51.360 we couldn't really

00:36:52.040 like build

00:36:52.680 on the men's

00:36:53.300 that much

00:36:53.900 of course

00:36:54.240 I come from

00:36:54.900 men's

00:36:55.480 surfskate

00:36:56.020 snowboarding

00:36:56.540 business

00:36:56.880 that was the

00:36:57.620 whole thing

00:36:58.060 so I was

00:36:59.180 quite cognizant

00:37:00.320 that the future

00:37:01.080 was there

00:37:01.620 and there was

00:37:02.040 a time to do it

00:37:02.880 probably around

00:37:03.620 2008

00:37:04.460 you could start

00:37:05.380 to see the

00:37:05.840 inflection point

00:37:06.660 where all these

00:37:07.880 women were looking 1.00

00:37:08.680 so good

00:37:09.560 coming into the gym

00:37:10.600 and men

00:37:11.560 like kind of

00:37:12.160 had to step

00:37:12.740 up the plate

00:37:13.420 you know

00:37:13.940 it was kind of

00:37:14.480 like

00:37:14.640 wow

00:37:15.100 I can't wear

00:37:15.840 like this baggy

00:37:16.780 holy

00:37:17.140 like grey stuff

00:37:18.840 that I haven't

00:37:19.620 washed in three

00:37:20.380 weeks

00:37:20.720 like

00:37:21.040 no

00:37:21.740 you know

00:37:22.040 like I gotta

00:37:22.640 you know

00:37:22.980 this

00:37:23.180 and I think

00:37:23.900 people stopped

00:37:24.640 going to bars

00:37:25.840 at that time

00:37:26.520 they stopped

00:37:27.020 drinking

00:37:27.540 they stopped

00:37:28.240 you know

00:37:28.740 I mean

00:37:29.220 it is a general

00:37:29.920 trend

00:37:30.180 year

00:37:30.420 did you say

00:37:30.880 this

00:37:31.060 coming from

00:37:31.680 you

00:37:31.860 that means

00:37:32.140 you actually

00:37:32.460 studied this

00:37:32.980 oh wait

00:37:33.320 yeah 2008

00:37:34.140 anything had to do

00:37:34.880 with the drop

00:37:35.740 of the market

00:37:36.200 or not at all

00:37:36.860 it had nothing

00:37:37.360 with the 38% 0.81

00:37:38.460 okay

00:37:38.720 got it

00:37:39.840 no actually

00:37:40.500 the one thing

00:37:41.560 about that

00:37:42.020 is I think

00:37:42.500 that instead

00:37:43.380 of people doing

00:37:44.060 gambling and

00:37:44.680 drinking and

00:37:45.240 smoking

00:37:45.560 they actually

00:37:46.200 moved to

00:37:46.720 athletics

00:37:47.080 even more

00:37:47.760 as a coping

00:37:48.520 mechanism

00:37:49.080 so the market

00:37:50.020 crash in essence

00:37:50.900 what you're

00:37:51.520 thinking

00:37:52.160 I don't know

00:37:53.080 what data

00:37:53.460 you have

00:37:53.760 I'd be curious

00:37:54.260 to know more

00:37:54.720 the market

00:37:55.520 crash

00:37:56.000 made us

00:37:56.520 healthier

00:37:57.060 yeah

00:37:57.500 I mean

00:37:57.960 we went

00:37:59.340 to a different

00:38:00.000 form of

00:38:00.760 coping with it

00:38:01.580 so around

00:38:02.520 that time

00:38:03.060 then you

00:38:03.440 we could

00:38:04.060 I could easily

00:38:05.400 see that

00:38:06.080 the men's market

00:38:06.920 was never

00:38:08.120 going to be

00:38:08.560 as big

00:38:08.960 as the woman's

00:38:09.600 market

00:38:09.820 because women 0.99

00:38:10.560 just have

00:38:11.520 more clothing

00:38:12.200 they've got

00:38:12.600 more pieces

00:38:13.200 to cover up

00:38:13.940 yeah

00:38:14.160 the bottom line

00:38:15.040 that is a good

00:38:15.560 point

00:38:15.740 and they're

00:38:16.320 colder

00:38:16.720 and so they

00:38:17.760 you know

00:38:18.140 they think

00:38:18.640 much differently

00:38:19.320 well some men

00:38:20.060 would want

00:38:20.580 less pieces

00:38:21.240 to be covered up

00:38:21.960 right

00:38:22.140 but that's a

00:38:22.520 completely

00:38:22.780 different market

00:38:23.440 yeah

00:38:24.080 I mean

00:38:25.160 like Paul right

00:38:25.940 here sitting

00:38:26.320 behind the camera

00:38:26.980 but please

00:38:28.500 go ahead

00:38:28.820 I'm sorry

00:38:29.300 so then there

00:38:31.140 was an inflection

00:38:31.820 time though

00:38:32.320 that was time

00:38:33.060 to like set

00:38:33.700 the base

00:38:34.240 for men's

00:38:35.720 and at the

00:38:37.020 time

00:38:37.540 we were just

00:38:38.920 coming out

00:38:39.380 of being

00:38:39.680 constrained

00:38:40.360 by a

00:38:41.440 retail store

00:38:42.880 I mean

00:38:43.540 e-commerce

00:38:44.120 was just

00:38:45.100 eking out

00:38:45.980 in 2005

00:38:47.100 6 7

00:38:48.160 do you know

00:38:48.460 what I mean

00:38:48.900 and it was

00:38:50.000 mostly a

00:38:50.640 commodity product

00:38:51.620 it was like

00:38:52.340 nuts and bolts

00:38:53.460 or Kleenex

00:38:54.460 or something

00:38:54.880 like that

00:38:55.460 not something

00:38:56.500 that was

00:38:56.860 tactile

00:38:57.260 you could

00:38:57.820 hold

00:38:58.260 you know

00:38:58.660 that you

00:38:58.940 needed to

00:38:59.380 fit

00:38:59.700 and all

00:39:00.000 that type

00:39:00.440 of stuff

00:39:00.760 so

00:39:01.000 we were just

00:39:02.020 kind of

00:39:02.320 moving into

00:39:02.820 that era

00:39:03.380 but it was

00:39:04.280 easy to see

00:39:05.000 that you know

00:39:05.740 because we

00:39:06.200 couldn't make

00:39:06.780 like 50%

00:39:07.620 of our store

00:39:08.260 or 40%

00:39:08.880 of our store

00:39:09.400 men's

00:39:09.960 but e-commerce

00:39:10.980 was going to

00:39:11.500 allow that

00:39:12.020 platform to

00:39:12.760 happen

00:39:13.060 all we had

00:39:13.900 to do

00:39:14.200 was show

00:39:14.720 it in

00:39:15.020 our stores

00:39:15.540 and allow

00:39:16.180 the freedom

00:39:17.180 and the

00:39:17.540 breathability

00:39:18.140 for men

00:39:19.120 to go online

00:39:19.800 and start

00:39:20.260 buying it

00:39:21.280 and we

00:39:21.860 could have

00:39:22.200 been 10

00:39:22.880 years ahead

00:39:23.420 of Nike

00:39:23.900 or Under Armour

00:39:25.040 or Ideas

00:39:25.660 anybody else

00:39:26.340 because nobody

00:39:27.700 else was doing

00:39:29.120 the vertical

00:39:29.660 model

00:39:30.020 missing the

00:39:30.640 middle man

00:39:31.160 we had the

00:39:31.980 opportunity to

00:39:32.520 make a much

00:39:33.280 much better

00:39:33.820 quality product

00:39:34.640 at a much

00:39:35.180 better price

00:39:35.940 which we did

00:39:37.300 mostly until

00:39:38.260 we you know

00:39:39.320 got you know

00:39:40.620 quarterly reports

00:39:41.960 you know

00:39:42.420 from the Wall

00:39:42.960 Street

00:39:43.220 going back

00:39:44.200 to these

00:39:44.620 logical

00:39:45.740 board and

00:39:46.500 directors

00:39:46.920 it's like

00:39:47.780 it's painful

00:39:48.440 so let me

00:39:50.460 ask you

00:39:50.880 I see a

00:39:52.400 Lululemon

00:39:52.800 store in the

00:39:53.720 mall and

00:39:54.500 I'll generally

00:39:55.080 just look at

00:39:55.820 it and I'll

00:39:56.060 say well nice

00:39:56.640 stuff and I'll

00:39:57.120 walk away

00:39:57.600 in my mind

00:39:58.620 my wife

00:39:59.460 she'll stop 0.99

00:40:00.100 by Lululemon

00:40:00.700 and goes inside

00:40:01.820 and I'll say

00:40:02.140 I'll see you

00:40:02.500 there I'm going

00:40:02.800 to go to

00:40:03.720 Nike or

00:40:04.300 something like

00:40:04.760 that

00:40:05.000 you are a

00:40:06.460 big guy

00:40:06.940 I'm a big

00:40:07.660 guy

00:40:07.840 you just said

00:40:08.680 earlier that

00:40:09.160 some of the

00:40:09.520 customers that

00:40:10.100 were coming

00:40:10.460 in to want

00:40:10.920 to wear

00:40:11.640 Lululemon

00:40:12.220 they were

00:40:12.700 smaller

00:40:13.100 like I'm in

00:40:13.580 Argentina last

00:40:14.320 week and I'm

00:40:14.780 in Italy the

00:40:15.280 month before

00:40:15.800 and I go to

00:40:16.840 stores to buy

00:40:17.680 clothes I'm

00:40:18.100 like I need a

00:40:18.560 sports jacket

00:40:19.080 sir I'm

00:40:20.060 sorry man

00:40:20.480 we're not

00:40:20.780 going to find

00:40:21.140 any sports

00:40:21.660 jacket your

00:40:22.140 size in

00:40:22.520 Argentina or

00:40:23.240 in Italy

00:40:23.780 because what

00:40:24.780 it is you

00:40:25.140 know their

00:40:25.380 market is a

00:40:25.960 different market

00:40:26.480 do you wear

00:40:27.180 Lululemon

00:40:27.660 today yourself

00:40:28.480 are the

00:40:28.860 products built

00:40:29.440 for somebody

00:40:29.940 like you to

00:40:30.420 wear Lululemon

00:40:31.020 yeah it had

00:40:32.000 to work for

00:40:32.500 me so

00:40:33.220 okay so

00:40:33.720 you do

00:40:34.080 Lululemon

00:40:34.700 100%

00:40:35.680 okay

00:40:36.060 but I'm

00:40:37.020 really saying

00:40:37.680 at the

00:40:38.200 beginning of

00:40:39.060 like 1998

00:40:39.920 to 2002

00:40:41.000 the yogi

00:40:42.420 men were

00:40:42.920 quite small

00:40:43.780 and slight

00:40:44.380 right

00:40:44.820 so

00:40:45.140 so but

00:40:46.400 that morphed

00:40:47.300 really quickly

00:40:48.080 and and what

00:40:49.140 I'm saying is

00:40:49.740 really we just

00:40:50.680 Lululemon just

00:40:51.420 had to make

00:40:52.020 masculine stuff

00:40:53.000 but it made

00:40:54.180 the mistake of

00:40:54.860 it kept hiring

00:40:55.600 fashion designers

00:40:56.760 from I'd call

00:40:57.880 the east coast

00:40:58.760 of the US

00:41:00.040 who didn't have

00:41:00.680 the content

00:41:01.220 like the west

00:41:02.460 coast makes

00:41:03.180 things functional

00:41:03.960 and then makes

00:41:04.780 them beautiful

00:41:05.300 where the east

00:41:05.940 coast makes

00:41:06.480 them beautiful

00:41:07.020 and then makes

00:41:07.660 them fun

00:41:08.660 tries to make

00:41:09.400 them look

00:41:09.800 athletic

00:41:10.140 it's a whole

00:41:11.500 different distinction

00:41:12.340 interesting

00:41:12.860 interesting

00:41:13.620 so this means

00:41:14.540 now next time

00:41:15.280 I walk past

00:41:16.060 Lululemon

00:41:16.620 I have to go

00:41:17.300 inside

00:41:17.660 that's what

00:41:18.360 you're saying

00:41:18.720 I have to go

00:41:19.060 and see if I

00:41:19.360 can find

00:41:19.720 something

00:41:20.180 because these

00:41:20.980 ripped jeans

00:41:21.540 I mean you

00:41:21.900 just called

00:41:22.360 out my

00:41:22.680 ripped jeans

00:41:23.180 you're like

00:41:23.520 these guys

00:41:23.960 are wearing

00:41:24.240 ripped clothes

00:41:25.000 you know

00:41:25.300 going out

00:41:25.940 Paul we got

00:41:26.980 to stop

00:41:27.300 by Lululemon

00:41:27.860 and find

00:41:28.240 some tights

00:41:28.680 for you

00:41:29.000 well I don't

00:41:30.340 think actually

00:41:30.900 people even

00:41:31.780 wear jeans

00:41:32.340 anymore

00:41:32.820 like I think

00:41:33.720 that's

00:41:34.100 we've killed

00:41:34.820 it in the

00:41:35.260 women's business

00:41:36.240 and you see

00:41:37.360 VF Corporation

00:41:38.820 trying to sell

00:41:39.500 their jeans

00:41:39.920 business

00:41:40.320 and nobody

00:41:41.020 wants to buy

00:41:41.680 that

00:41:41.880 well the apparel

00:41:42.700 business itself

00:41:43.580 is so competitive

00:41:45.000 because how fast

00:41:45.800 things change

00:41:46.700 and if you don't

00:41:47.800 change with the

00:41:48.480 times

00:41:48.760 it's not a

00:41:49.780 thing that

00:41:50.560 one thing

00:41:51.040 lasts a long

00:41:51.780 time

00:41:52.020 so you have

00:41:52.400 to always be

00:41:52.940 adapting

00:41:53.380 constantly

00:41:54.100 would you agree

00:41:54.680 with that

00:41:54.980 no

00:41:55.180 I think

00:41:55.980 that's

00:41:56.380 two different

00:41:57.160 businesses

00:41:57.600 again

00:41:57.980 and that's

00:41:58.360 the fashion

00:41:58.960 of Zara

00:41:59.640 H&M

00:42:00.480 that's what

00:42:00.960 I'm talking

00:42:01.700 about that

00:42:02.200 sec

00:42:02.440 you know

00:42:03.060 it's like

00:42:03.660 we're on

00:42:04.640 the end

00:42:05.100 of like

00:42:05.700 technical

00:42:06.360 like

00:42:06.840 technical

00:42:08.620 advances

00:42:09.200 occur every

00:42:10.020 year

00:42:10.380 and again

00:42:11.460 where I'm

00:42:12.020 you know

00:42:12.600 I think

00:42:12.980 the future

00:42:13.500 of athletic

00:42:14.760 apparel

00:42:15.220 I look

00:42:15.660 at people

00:42:16.840 in the

00:42:17.120 Olympics

00:42:17.400 and I go

00:42:18.340 that is

00:42:19.240 the most

00:42:19.580 functional

00:42:20.120 apparel

00:42:20.640 there is

00:42:21.320 you know

00:42:21.960 it's

00:42:22.180 total

00:42:22.780 lycra

00:42:23.160 it's tight

00:42:23.900 under the

00:42:24.260 armpits

00:42:24.720 it's tight

00:42:25.100 in the

00:42:25.300 crotch

00:42:25.720 I mean

00:42:26.720 once you've

00:42:27.260 been in

00:42:27.700 something

00:42:27.940 like that

00:42:28.500 everything

00:42:29.360 else

00:42:29.700 feels

00:42:29.980 uncomfortable

00:42:30.540 even

00:42:31.380 but you

00:42:32.020 know

00:42:32.140 it's only

00:42:32.900 our social

00:42:33.520 norms

00:42:34.180 in North

00:42:34.880 America

00:42:35.320 that tells

00:42:35.820 us

00:42:35.980 it's not

00:42:36.460 if you

00:42:37.280 go into

00:42:37.560 Europe

00:42:37.860 you see

00:42:38.260 men

00:42:38.620 for years

00:42:39.700 have been

00:42:40.020 wearing

00:42:40.340 you know

00:42:40.700 lycra

00:42:41.200 to run

00:42:41.720 in

00:42:41.960 you know

00:42:42.380 for

00:42:42.680 you know

00:42:43.300 wear speedos

00:42:43.960 they don't

00:42:44.220 have any

00:42:44.560 problem

00:42:45.020 like

00:42:45.340 you know

00:42:45.720 like

00:42:45.960 well

00:42:46.300 I mean

00:42:46.760 maybe

00:42:47.020 you know

00:42:47.560 if you're

00:42:47.980 Iranian

00:42:48.340 it's

00:42:48.760 there

00:42:49.040 like

00:42:49.280 they don't

00:42:49.580 even

00:42:49.760 have

00:42:49.980 the

00:42:50.140 context

00:42:50.700 that

00:42:51.040 you know

00:42:51.780 that

00:42:51.980 they have

00:42:52.360 from

00:42:52.540 this

00:42:52.800 kind

00:42:53.300 of

00:42:53.360 religious

00:42:53.820 social

00:42:54.400 moral

00:42:54.820 thing

00:42:55.140 in

00:42:55.320 North

00:42:55.600 America

00:42:56.080 so

00:42:56.520 what

00:42:56.680 is

00:42:56.800 the

00:42:56.940 future

00:42:57.220 though

00:42:57.440 I mean

00:42:57.660 you know

00:42:57.860 you talk

00:42:58.240 to

00:42:58.360 Elon Musk

00:42:58.820 and Elon Musk

00:42:59.660 talks about

00:43:00.120 the future

00:43:00.540 and where

00:43:00.840 we're going

00:43:01.220 towards

00:43:01.520 and what

00:43:01.800 he thinks

00:43:02.140 is going

00:43:02.400 to happen

00:43:02.760 and you

00:43:03.920 you are

00:43:04.320 five

00:43:04.640 seven

00:43:04.980 years

00:43:05.240 ahead

00:43:05.560 what's

00:43:06.460 really

00:43:06.820 going

00:43:07.060 to

00:43:07.160 have

00:43:07.280 are we

00:43:07.540 going

00:43:07.680 to

00:43:07.760 have

00:43:07.920 like

00:43:08.100 smart

00:43:08.700 clothes

00:43:09.300 like

00:43:09.560 is it

00:43:09.800 going

00:43:09.920 to be

00:43:10.120 smart

00:43:10.620 technical

00:43:11.680 you know

00:43:12.440 athletic

00:43:12.900 gear

00:43:13.280 or

00:43:13.520 where

00:43:14.080 are we

00:43:14.280 going

00:43:14.600 yeah

00:43:15.140 I don't

00:43:15.580 really

00:43:15.900 believe

00:43:16.380 in all

00:43:16.680 the

00:43:16.860 wires

00:43:17.400 in

00:43:17.800 clothing

00:43:18.300 you

00:43:18.480 see

00:43:18.620 now

00:43:18.800 I

00:43:18.920 think

00:43:19.080 it

00:43:19.220 it's

00:43:19.720 making

00:43:19.980 clothing

00:43:20.360 very

00:43:20.720 uncomfortable

00:43:21.260 it's

00:43:21.780 heavy

00:43:22.160 it's

00:43:22.560 it's

00:43:23.140 it's

00:43:23.520 kind

00:43:23.840 of

00:43:23.960 it

00:43:24.320 kind

00:43:24.600 of

00:43:24.720 defeats

00:43:25.160 the

00:43:25.360 purpose

00:43:25.700 of

00:43:25.900 kind

00:43:26.080 of

00:43:26.180 wearing

00:43:26.420 clothing

00:43:26.820 that

00:43:27.000 feels

00:43:27.280 naked

00:43:27.640 I

00:43:28.420 do

00:43:28.640 feel

00:43:28.940 it's

00:43:29.160 going

00:43:29.280 to

00:43:29.360 be

00:43:29.520 Lycra

00:43:29.920 I

00:43:31.120 think

00:43:31.320 it's

00:43:31.480 going

00:43:31.580 to

00:43:31.680 be

00:43:32.060 a

00:43:32.260 complete

00:43:32.700 suit

00:43:33.080 top

00:43:33.400 to

00:43:33.560 bottom

00:43:33.860 it's

00:43:34.300 going

00:43:34.440 to

00:43:34.580 the

00:43:34.960 actual

00:43:35.380 fabric

00:43:35.820 will

00:43:36.000 be

00:43:36.160 temperature

00:43:36.580 control

00:43:37.160 it

00:43:37.440 will

00:43:37.580 handle

00:43:37.920 stink

00:43:38.400 I

00:43:39.140 think

00:43:39.400 you

00:43:39.800 can

00:43:39.960 see

00:43:40.540 you

00:43:41.460 know

00:43:41.580 the

00:43:41.720 Apple

00:43:42.020 watch

00:43:42.320 getting

00:43:42.600 bigger

00:43:42.940 but

00:43:43.160 I

00:43:43.300 think

00:43:43.500 it's

00:43:43.680 going

00:43:43.800 to

00:43:43.880 be

00:43:44.020 a

00:43:44.180 full

00:43:44.440 Apple

00:43:44.740 watch

00:43:45.160 here

00:43:45.400 with

00:43:45.680 ear

00:43:46.380 implants

00:43:46.980 here

00:43:47.560 I

00:43:48.380 think

00:43:48.620 the

00:43:48.840 phone

00:43:49.540 or

00:43:49.700 whatever

00:43:49.960 we

00:43:50.180 call

00:43:50.440 it

00:43:50.540 will

00:43:50.740 prick

00:43:51.700 into

00:43:52.060 our

00:43:52.380 skin

00:43:52.740 for

00:43:53.040 blood

00:43:53.440 and

00:43:53.740 moisture

00:43:54.220 and

00:43:54.580 salt

00:43:54.940 it

00:43:55.700 will

00:43:55.900 compare

00:43:56.940 that

00:43:57.240 against

00:43:57.540 big

00:43:57.820 data

00:43:58.200 it

00:43:58.480 will

00:43:58.620 send

00:43:58.900 that

00:43:59.160 to

00:43:59.560 our

00:44:00.320 doctors

00:44:00.820 only

00:44:01.140 when

00:44:01.400 we

00:44:01.720 or

00:44:02.300 I

00:44:02.940 mean

00:44:03.120 actually

00:44:03.400 the

00:44:03.560 big

00:44:03.740 data

00:44:04.060 just

00:44:04.360 will

00:44:05.300 tell

00:44:06.020 us

00:44:06.260 you

00:44:06.500 know

00:44:06.600 whether

00:44:06.800 we

00:44:07.040 need

00:44:07.220 to

00:44:07.360 check

00:44:07.660 in

00:44:07.800 with

00:44:07.940 a

00:44:08.060 doctor

00:44:08.360 or

00:44:08.560 not

00:44:08.760 but

00:44:08.960 I

00:44:09.100 also

00:44:09.340 think

00:44:09.640 you

00:44:09.920 know

00:44:10.020 from

00:44:10.220 a

00:44:10.380 fashion

00:44:10.940 point

00:44:11.280 of

00:44:11.420 view

00:44:11.580 there's

00:44:11.820 going

00:44:11.940 to

00:44:12.020 be

00:44:12.140 a

00:44:12.280 people

00:44:13.260 won't

00:44:13.520 be

00:44:13.700 designing

00:44:14.280 clothing

00:44:15.280 so

00:44:15.680 much

00:44:15.900 as

00:44:16.040 they'll

00:44:16.200 be

00:44:16.320 designing

00:44:16.720 apps

00:44:17.280 and

00:44:17.420 you'll

00:44:17.560 go

00:44:17.720 on

00:44:17.840 an

00:44:17.960 app

00:44:18.220 and

00:44:18.400 kind

00:44:18.660 of

00:44:18.760 pick

00:44:18.960 out

00:44:19.220 a

00:44:19.440 design

00:44:19.800 that

00:44:19.980 you

00:44:20.100 want

00:44:20.380 your

00:44:20.540 clothing

00:44:20.880 to

00:44:21.100 turn

00:44:21.340 to

00:44:21.520 that

00:44:21.740 day

00:44:21.900 so

00:44:22.380 by

00:44:22.600 color

00:44:22.980 design

00:44:23.480 that

00:44:23.680 that

00:44:24.780 that's

00:44:25.000 amazing

00:44:25.640 yeah

00:44:26.180 100%

00:44:27.580 we have

00:44:28.000 to

00:44:28.100 go

00:44:28.240 there

00:44:28.500 we

00:44:29.240 have

00:44:29.600 to

00:44:29.780 go

00:44:29.980 there

00:44:30.200 well

00:44:30.440 if

00:44:30.600 you

00:44:30.720 look

00:44:30.980 over

00:44:31.760 like

00:44:32.140 a

00:44:32.420 period

00:44:32.800 of

00:44:32.980 time

00:44:33.260 when

00:44:33.500 people

00:44:33.840 dressed

00:44:34.220 in

00:44:34.400 England

00:44:34.680 when

00:44:35.000 it

00:44:35.100 was

00:44:35.240 cold

00:44:35.820 and

00:44:36.100 no

00:44:36.560 one

00:44:36.700 was

00:44:36.880 athletic

00:44:37.380 and

00:44:37.660 nobody

00:44:37.900 sweat

00:44:38.360 and

00:44:38.560 you

00:44:39.400 know

00:44:39.540 it

00:44:39.680 was

00:44:39.840 like

00:44:40.120 all

00:44:40.580 the

00:44:40.720 clothing

00:44:41.100 and

00:44:41.260 the

00:44:41.420 jackets

00:44:41.860 and

00:44:42.160 everything

00:44:42.480 and

00:44:42.680 the

00:44:42.780 wool

00:44:42.960 and

00:44:43.080 everything

00:44:43.320 and

00:44:43.880 you

00:44:44.000 look

00:44:44.240 from

00:44:44.420 that

00:44:44.660 time

00:44:45.020 till

00:44:45.280 now

00:44:45.720 and

00:44:46.640 you

00:44:46.760 look

00:44:47.000 at

00:44:47.200 how

00:44:47.620 much

00:44:54.780 not

00:44:54.920 that

00:44:55.140 far

00:44:55.400 from

00:44:55.640 it

00:44:55.820 so

00:44:56.120 you

00:44:56.280 think

00:44:56.460 people

00:44:56.660 going

00:44:56.800 to

00:44:56.840 be

00:44:56.960 receptive

00:44:57.400 to

00:44:57.600 the

00:44:57.680 whole

00:44:57.820 chip

00:44:58.040 going

00:44:58.240 into

00:44:58.400 the

00:44:58.540 body

00:44:58.760 yeah

00:44:59.120 I

00:44:59.240 think

00:44:59.400 it'll

00:44:59.540 just

00:44:59.720 be

00:44:59.880 a

00:45:00.040 prick

00:45:00.300 I

00:45:00.760 think

00:45:00.960 it'll

00:45:01.200 be

00:45:01.420 something

00:45:01.680 is it

00:45:01.860 going to

00:45:02.040 track

00:45:02.400 me

00:45:02.560 like

00:45:02.780 where

00:45:02.940 I'm

00:45:03.120 at

00:45:03.300 is it

00:45:03.480 going to

00:45:03.620 be

00:45:03.680 like

00:45:03.820 a

00:45:03.920 tracking

00:45:04.240 system

00:45:04.600 that's

00:45:06.720 your

00:45:06.820 phone

00:45:07.140 that's

00:45:07.420 a

00:45:07.540 different

00:45:07.800 thing

00:45:08.120 than

00:45:08.260 I

00:45:08.400 think

00:45:08.640 what

00:45:08.800 I'm

00:45:08.980 talking

00:45:09.340 about

00:45:09.660 health

00:45:10.580 and

00:45:10.780 fitness

00:45:11.140 and

00:45:11.440 I

00:45:11.920 also

00:45:12.180 fully

00:45:12.500 believe

00:45:12.820 in

00:45:12.980 the

00:45:13.120 3D

00:45:13.520 printing

00:45:13.940 of

00:45:14.180 food

00:45:14.440 and

00:45:14.680 I

00:45:15.240 think

00:45:15.520 everybody

00:45:16.140 is

00:45:16.360 going

00:45:16.480 to

00:45:16.560 be

00:45:16.720 fit

00:45:17.000 20

00:45:17.280 years

00:45:17.560 from

00:45:17.740 now

00:45:17.920 I

00:45:18.040 don't

00:45:18.220 think

00:45:18.440 there

00:45:18.600 is

00:45:19.560 going

00:45:19.840 to

00:45:19.920 be

00:45:20.080 any

00:45:20.300 such

00:45:20.620 thing

00:45:20.980 as

00:45:21.300 people

00:45:22.260 that

00:45:22.500 are

00:45:22.620 overweight

00:45:23.080 or

00:45:23.360 have

00:45:23.620 issues

00:45:24.080 really

00:45:24.920 really

00:45:26.200 that

00:45:27.060 you

00:45:27.280 know

00:45:27.480 it's

00:45:28.080 so

00:45:28.320 maybe

00:45:28.540 because

00:45:28.760 for

00:45:28.940 us

00:45:29.120 Fitbit

00:45:29.480 like

00:45:29.680 I

00:45:29.800 look

00:45:29.980 at

00:45:30.080 this

00:45:30.240 here

00:45:30.460 right

00:45:30.660 we

00:45:31.200 had

00:45:31.340 everybody

00:45:31.640 at

00:45:31.820 our

00:45:31.900 home

00:45:32.040 office

00:45:32.280 all

00:45:32.420 of

00:45:32.520 a

00:45:32.600 put

00:45:32.860 Fitbit

00:45:33.200 next

00:45:33.480 thing

00:45:33.620 people

00:45:33.940 are

00:45:34.100 losing

00:45:34.300 10

00:45:34.560 pounds

00:45:34.800 in

00:45:34.900 a

00:45:34.980 month

00:45:35.080 15

00:45:35.360 pounds

00:45:35.580 in

00:45:35.680 a

00:45:35.760 month

00:45:35.900 one

00:45:36.200 of

00:45:36.300 the

00:45:36.340 things

00:45:36.500 I

00:45:36.620 talk

00:45:36.920 about

00:45:37.240 in

00:45:37.680 our

00:45:37.860 company

00:45:38.320 is

00:45:38.560 the

00:45:38.720 fact

00:45:38.920 that

00:45:39.140 visionaries

00:45:39.660 speak

00:45:39.940 a

00:45:40.100 language

00:45:40.440 that

00:45:40.680 very

00:45:40.960 few

00:45:41.260 people

00:45:41.680 speak

00:45:42.600 right

00:45:42.840 and

00:45:42.960 some

00:45:43.140 companies

00:45:43.640 instill a

00:45:44.400 certain

00:45:44.640 culture

00:45:45.040 that

00:45:45.200 you

00:45:45.340 can't

00:45:45.700 teach

00:45:46.040 that

00:45:46.220 language

00:45:46.580 to

00:45:46.740 somebody

00:45:47.080 you

00:45:47.300 can't

00:45:47.540 just

00:45:47.660 come

00:45:47.880 to

00:45:47.980 the

00:45:48.080 home

00:45:48.220 office

00:45:48.480 or

00:45:48.620 the

00:45:48.740 company

00:45:49.060 or

00:45:49.180 certain

00:45:49.460 culture

00:45:49.820 and speak

00:45:50.220 that

00:45:50.400 right

00:45:50.600 off

00:45:50.760 the

00:45:50.880 bat

00:45:51.140 it's

00:45:51.540 like

00:45:51.700 you

00:45:51.900 and

00:45:52.020 I

00:45:52.120 deciding

00:45:52.480 to

00:45:52.660 go

00:45:52.820 to

00:45:53.080 you

00:45:53.580 know

00:45:53.760 Portugal

00:45:54.260 and

00:45:54.500 speak

00:45:54.740 in

00:45:54.880 Portuguese

00:45:55.300 if

00:45:55.600 we

00:45:55.720 don't

00:45:55.900 know

00:45:56.120 it

00:45:56.220 we're

00:45:56.380 not

00:45:56.540 going

00:45:56.660 to

00:45:56.680 be

00:45:56.760 able

00:45:56.860 to

00:45:56.960 speak

00:45:57.120 that

00:45:57.260 language

00:45:57.540 did

00:45:57.780 you

00:45:57.940 have

00:45:58.160 a

00:45:58.300 certain

00:45:58.560 language

00:45:59.060 that

00:45:59.260 you

00:45:59.400 spoke

00:45:59.680 as

00:45:59.840 a

00:45:59.980 visionary

00:46:00.300 and a

00:46:00.640 founder

00:46:00.840 yourself

00:46:01.240 and

00:46:01.480 if

00:46:01.620 you

00:46:01.740 did

00:46:01.980 what

00:46:02.700 was

00:46:03.120 it

00:46:03.600 and

00:46:03.920 whatever

00:46:04.480 it

00:46:04.680 was

00:46:04.880 how

00:46:05.100 did

00:46:05.240 you

00:46:05.340 transfer

00:46:05.700 it

00:46:05.860 to

00:46:05.940 me

00:46:06.100 as

00:46:06.260 one

00:46:06.400 of

00:46:06.500 your

00:46:07.100 team

00:46:07.240 members

00:46:07.580 again

00:46:07.900 I've

00:46:08.200 read

00:46:08.820 probably

00:46:09.180 a

00:46:09.420 thousand

00:46:09.820 books

00:46:10.200 in

00:46:10.480 the

00:46:10.740 year

00:46:10.920 1997

00:46:11.660 and

00:46:12.400 out

00:46:12.940 of

00:46:13.060 those

00:46:13.320 I'm

00:46:14.360 sorry

00:46:14.560 hundred

00:46:14.800 books

00:46:15.200 out

00:46:15.420 of

00:46:15.520 the

00:46:15.580 hundred

00:46:15.740 books

00:46:16.100 there

00:46:16.640 were

00:46:16.780 five

00:46:17.140 things

00:46:17.500 that

00:46:17.680 kind

00:46:17.940 of

00:46:18.060 happened

00:46:18.840 that

00:46:19.080 I

00:46:19.180 went

00:46:19.340 oh

00:46:19.580 these

00:46:19.860 are

00:46:20.100 kind

00:46:20.620 of

00:46:20.720 encompass

00:46:21.100 all

00:46:21.380 the

00:46:21.540 other

00:46:21.740 95

00:46:22.200 and

00:46:22.660 so

00:46:22.920 one

00:46:23.300 of

00:46:23.420 them

00:46:23.540 was

00:46:23.720 Good

00:46:23.900 to

00:46:24.020 Great

00:46:24.240 by

00:46:24.460 Collins

00:46:25.020 The

00:46:25.740 Goal

00:46:26.020 by

00:46:26.220 Rosenblatt

00:46:27.060 A

00:46:27.380 Psychology

00:46:27.880 of

00:46:28.100 Achievement

00:46:28.640 It's

00:46:28.860 an audio

00:46:29.740 by

00:46:29.980 Brian

00:46:30.280 Tracy

00:46:30.660 Good

00:46:31.080 book

00:46:31.300 great

00:46:31.500 book

00:46:31.680 Yeah

00:46:31.860 really

00:46:32.240 We've

00:46:32.500 had

00:46:32.620 Brian

00:46:32.820 Tracy

00:46:33.080 to

00:46:33.260 form

00:46:33.440 yes

00:46:33.760 and

00:46:34.700 the

00:46:35.440 landmark

00:46:35.760 form

00:46:36.340 which

00:46:36.740 for

00:46:36.980 me

00:46:37.280 You

00:46:37.660 went

00:46:37.820 to

00:46:37.940 the

00:46:38.020 landmark

00:46:38.240 form

00:46:38.500 Yeah

00:46:38.660 sure

00:46:38.960 sure

00:46:39.440 and

00:46:40.180 I

00:46:40.320 phenomenal

00:46:41.140 from

00:46:41.780 learning

00:46:43.080 the definition

00:46:43.940 of

00:46:44.180 integrity

00:46:44.720 why I

00:46:45.760 complain

00:46:46.280 how I

00:46:46.900 communicate

00:46:47.440 how I

00:46:48.160 create

00:46:48.740 really

00:46:50.100 transformational

00:46:51.040 with

00:46:51.560 those

00:46:51.980 five

00:46:53.060 things

00:46:53.460 it was

00:46:53.800 like

00:46:54.100 oh

00:46:54.420 and

00:46:54.700 seven

00:46:55.040 habits

00:46:55.380 highly

00:46:55.660 highly

00:46:56.360 effective

00:46:56.760 people

00:46:57.120 we

00:46:57.440 created

00:46:57.840 like

00:46:58.060 about

00:46:58.300 30

00:46:58.620 terms

00:46:59.020 and

00:46:59.180 definitions

00:46:59.700 from

00:47:00.660 those

00:47:01.060 and

00:47:01.300 that's

00:47:01.580 what

00:47:01.680 we

00:47:01.960 that's

00:47:02.900 what

00:47:03.040 we

00:47:03.100 used

00:47:03.280 to

00:47:03.460 communicate

00:47:03.880 in

00:47:04.140 the

00:47:04.260 company

00:47:04.600 so

00:47:05.260 by

00:47:05.700 when

00:47:06.000 dates

00:47:06.380 conditions

00:47:06.940 of

00:47:07.160 satisfaction

00:47:07.840 you

00:47:08.640 know

00:47:08.760 what

00:47:08.980 is

00:47:09.120 you

00:47:09.260 know

00:47:09.360 you

00:47:09.480 can

00:47:09.620 complain

00:47:10.040 twice

00:47:10.460 but

00:47:10.660 then

00:47:10.820 you

00:47:10.920 have

00:47:11.060 to

00:47:11.160 take

00:47:11.400 action

00:47:11.860 what

00:47:12.440 is

00:47:12.640 action

00:47:13.080 everyone

00:47:14.100 we

00:47:14.440 had

00:47:14.760 one

00:47:15.120 definition

00:47:15.620 of

00:47:15.860 integrity

00:47:16.340 because

00:47:16.980 this is

00:47:17.160 actually

00:47:17.460 a pretty

00:47:17.720 funny

00:47:17.980 thing

00:47:18.280 everyone

00:47:18.720 thinks

00:47:19.060 they

00:47:19.200 have

00:47:19.400 integrity

00:47:19.880 but

00:47:20.960 everyone

00:47:22.300 has

00:47:22.540 a

00:47:22.660 different

00:47:22.880 definition

00:47:23.380 of

00:47:23.560 integrity

00:47:23.740 so

00:47:24.380 there's

00:47:25.300 no

00:47:25.460 integrity

00:47:25.920 so

00:47:26.640 I

00:47:26.740 think

00:47:26.880 a

00:47:27.060 company

00:47:27.440 has

00:47:28.160 to

00:47:28.300 define

00:47:28.700 integrity

00:47:29.300 and

00:47:30.100 for

00:47:30.320 Lew

00:47:30.580 Lemon

00:47:30.900 it

00:47:31.220 was

00:47:31.400 doing

00:47:31.680 what

00:47:31.860 we

00:47:32.020 say

00:47:32.240 we

00:47:32.420 were

00:47:32.540 going

00:47:32.700 to

00:47:32.800 do

00:47:33.080 when

00:47:33.580 we

00:47:33.780 say

00:47:34.020 we

00:47:34.200 will

00:47:34.400 do

00:47:34.640 it

00:47:34.880 and

00:47:35.520 how

00:47:35.920 it

00:47:36.320 was

00:47:36.700 expected

00:47:37.160 to be

00:47:37.480 done

00:47:37.860 and

00:47:38.620 if

00:47:38.760 we

00:47:38.900 can't

00:47:39.260 get

00:47:39.400 it

00:47:39.540 done

00:47:39.740 then

00:47:39.920 we

00:47:40.040 have

00:47:40.220 to

00:47:40.340 go

00:47:40.500 back

00:47:40.880 and

00:47:41.460 tell

00:47:41.660 everyone

00:47:42.000 immediately

00:47:42.500 and

00:47:43.300 fix

00:47:44.580 the

00:47:45.180 issue

00:47:45.420 that

00:47:45.620 we

00:47:45.800 caused

00:47:46.280 so

00:47:46.760 did

00:47:47.260 you

00:47:47.380 constantly

00:47:47.680 talk

00:47:47.980 about

00:47:48.140 this

00:47:48.320 over

00:47:48.500 and

00:47:48.620 over

00:47:48.740 again

00:47:49.160 in

00:47:49.280 your

00:47:49.420 staff

00:47:49.720 meetings

00:47:50.040 employees

00:47:50.460 resist

00:47:50.760 stuff

00:47:50.980 all

00:47:51.160 over

00:47:51.300 the

00:47:51.420 place

00:47:51.660 yeah

00:47:52.100 well

00:47:52.640 I

00:47:52.820 documented

00:47:53.400 it

00:47:53.740 and

00:47:54.100 you

00:47:54.440 know

00:47:54.620 but

00:47:54.900 of

00:47:55.140 course

00:47:55.420 when

00:47:55.800 you

00:47:55.960 bring

00:47:56.280 in

00:47:56.640 new

00:47:56.960 executives

00:47:57.460 from

00:47:57.740 the

00:47:57.900 outside

00:47:58.460 they

00:47:59.260 have

00:47:59.760 their

00:48:00.480 own

00:48:00.860 like

00:48:01.200 yeah

00:48:01.660 yeah

00:48:01.840 yeah

00:48:01.860 yeah

00:48:02.040 I

00:48:02.140 got

00:48:02.340 your

00:48:02.500 culture

00:48:02.880 yeah

00:48:03.180 yeah

00:48:03.480 yeah

00:48:03.620 and

00:48:03.820 they're

00:48:04.280 really

00:48:04.500 good

00:48:04.720 at

00:48:04.860 interviews

00:48:05.300 and

00:48:05.480 they're

00:48:05.620 going

00:48:05.820 yeah

00:48:06.060 we

00:48:06.300 yeah

00:48:06.880 we

00:48:07.080 believe

00:48:07.400 what

00:48:07.580 you're

00:48:07.720 saying

00:48:07.960 but

00:48:08.120 they

00:48:08.260 don't

00:48:08.500 really

00:48:08.780 do

00:48:09.000 it

00:48:09.140 and

00:48:09.360 I

00:48:09.840 really

00:48:10.140 wasn't

00:48:10.500 aware

00:48:10.780 of

00:48:10.940 that

00:48:11.080 kind

00:48:11.300 of

00:48:11.380 thing

00:48:11.560 at

00:48:11.660 the

00:48:11.780 time

00:48:12.080 our

00:48:12.360 meetings

00:48:12.740 started

00:48:13.040 to show

00:48:13.340 up

00:48:13.480 five

00:48:13.760 minutes

00:48:14.020 late

00:48:14.340 then

00:48:14.760 ten

00:48:15.000 minutes

00:48:15.280 late

00:48:15.600 twenty

00:48:16.220 people

00:48:16.600 would

00:48:16.720 be

00:48:16.840 waiting

00:48:17.180 and

00:48:17.720 we

00:48:18.360 never

00:48:18.700 did

00:48:18.940 that

00:48:19.140 before

00:48:19.440 meetings

00:48:19.800 always

00:48:20.220 started

00:48:20.520 directly

00:48:20.880 on

00:48:21.120 time

00:48:21.420 or

00:48:21.520 you'd

00:48:21.700 almost

00:48:21.940 be

00:48:22.120 fired

00:48:22.560 because

00:48:22.960 if

00:48:23.460 a

00:48:23.860 creative

00:48:24.220 meeting

00:48:24.520 starts

00:48:24.840 five

00:48:25.180 minutes

00:48:25.420 late

00:48:25.760 then

00:48:26.460 the

00:48:26.620 people

00:48:26.880 in

00:48:26.980 the

00:48:27.080 meeting

00:48:27.320 think

00:48:27.640 oh

00:48:28.000 I

00:48:28.400 can

00:48:28.540 get

00:48:28.720 production

00:48:29.180 you can

00:48:29.460 come

00:48:29.660 in

00:48:29.880 five

00:48:30.100 you know

00:48:30.400 like

00:48:30.620 five

00:48:31.260 days

00:48:31.560 late

00:48:31.840 if

00:48:32.500 it's

00:48:32.740 missing

00:48:33.140 you

00:48:33.420 miss

00:48:33.600 five

00:48:34.020 to

00:48:34.380 ten

00:48:34.600 days

00:48:34.940 of

00:48:35.100 a

00:48:35.340 winter

00:48:35.900 season

00:48:36.420 then

00:48:36.860 you

00:48:37.060 miss

00:48:37.360 those

00:48:37.600 days

00:48:37.920 to

00:48:38.120 sell

00:48:38.400 so

00:48:38.620 then

00:48:38.780 you

00:48:38.880 got

00:48:39.020 to

00:48:39.100 put

00:48:39.240 stuff

00:48:39.540 on

00:48:39.720 discount

00:48:40.260 then

00:48:41.080 your

00:48:41.440 margins

00:48:41.860 drop

00:48:42.340 then

00:48:42.860 your

00:48:43.220 quality

00:48:44.060 sales

00:48:46.420 staff

00:48:46.660 doesn't

00:48:46.940 want

00:48:47.100 to

00:48:47.200 be

00:48:47.380 with

00:48:47.660 a

00:48:48.060 company

00:48:48.280 that

00:48:48.500 discounts

00:48:48.960 so

00:48:49.600 they

00:48:49.840 leave

00:48:50.320 so

00:48:50.800 then

00:48:50.980 you

00:48:51.080 get

00:48:51.320 a

00:48:51.660 lower

00:48:52.940 quality

00:48:53.480 of

00:48:53.680 people

00:48:53.980 and

00:48:54.580 then

00:48:54.720 they

00:48:54.860 have

00:48:55.060 higher

00:48:55.320 turnover

00:48:55.820 so

00:48:56.100 then

00:48:56.260 your

00:48:56.420 training

00:48:56.760 costs

00:48:57.200 are

00:48:57.360 more

00:48:57.600 then

00:48:58.080 it's

00:49:02.500 it's

00:49:03.060 a

00:49:03.260 mountain

00:49:03.600 that

00:49:03.780 can

00:49:03.920 never

00:49:04.120 get

00:49:05.460 to

00:49:05.600 the

00:49:05.760 top

00:49:06.020 of

00:49:06.160 it

00:49:06.340 but

00:49:07.020 you

00:49:07.380 got

00:49:07.600 to

00:49:07.720 have

00:49:07.880 a

00:49:08.020 standard

00:49:08.440 were

00:49:08.960 you

00:49:09.080 a

00:49:09.240 fire

00:49:09.440 fast

00:49:09.840 type

00:49:10.080 of

00:49:10.180 a

00:49:10.300 leader

00:49:10.480 or

00:49:10.700 no

00:49:10.940 if

00:49:11.240 you

00:49:11.380 notice

00:49:11.620 somebody

00:49:11.900 doesn't

00:49:12.200 fit

00:49:12.360 the

00:49:12.480 culture

00:49:12.720 were

00:49:12.880 you

00:49:12.960 fire

00:49:13.180 fast

00:49:13.400 or

00:49:13.480 you

00:49:13.580 gave

00:49:13.760 people

00:49:14.040 two

00:49:14.660 three

00:49:14.920 four

00:49:15.140 chances

00:49:15.600 yeah

00:49:16.280 I

00:49:16.480 think

00:49:17.080 I

00:49:17.240 would

00:49:17.400 be

00:49:17.560 an

00:49:17.720 opening

00:49:18.040 for

00:49:18.300 a

00:49:18.440 person

00:49:18.740 changing

00:49:19.220 for

00:49:19.480 sure

00:49:19.780 but

00:49:19.980 at

00:49:20.220 a

00:49:20.240 certain

00:49:20.620 point

00:49:20.980 it

00:49:21.220 has

00:49:21.420 to

00:49:21.540 be

00:49:21.680 no

00:49:21.920 this

00:49:22.160 person

00:49:22.540 is

00:49:22.740 wrong

00:49:23.120 so

00:49:23.460 get

00:49:23.820 it

00:49:23.960 right

00:49:24.180 before

00:49:24.500 you

00:49:24.680 hire

00:49:24.980 them

00:49:25.140 even

00:49:25.380 so

00:49:25.600 you

00:49:25.720 know

00:49:25.820 it's

00:49:25.920 not

00:49:26.040 going

00:49:26.160 to

00:49:26.240 fit

00:49:26.380 or

00:49:26.560 because

00:49:26.900 you

00:49:26.940 know

00:49:27.000 how many

00:49:27.180 times

00:49:27.320 you

00:49:27.420 hire

00:49:27.600 somebody

00:49:27.900 it

00:49:28.020 just

00:49:28.100 doesn't

00:49:28.340 fit

00:49:28.500 culturally

00:49:28.920 I

00:49:29.300 made

00:49:29.700 that

00:49:29.980 mistake

00:49:30.420 I

00:49:30.600 mean

00:49:30.740 I

00:49:51.680 don't

00:49:52.180 anything

00:49:52.200 else

00:49:52.340 she

00:49:52.540 lying

00:49:52.980 about

00:49:53.200 a

00:49:53.380 thousand

00:49:53.740 other

00:49:54.000 things

00:49:54.380 in

00:49:54.500 the

00:49:54.620 company

00:49:54.940 and

00:49:55.560 it's

00:49:55.700 bad

00:49:55.960 for

00:49:56.140 the

00:49:56.280 culture

00:49:56.600 it's

00:49:56.820 bad

00:49:57.000 for

00:49:57.160 the

00:49:57.280 future

00:49:57.580 of

00:49:57.720 the

00:49:57.820 company

00:49:58.160 we

00:49:58.900 have

00:49:59.260 to

00:49:59.400 get

00:49:59.560 rid

00:49:59.720 of

00:49:59.820 that

00:49:59.980 person

00:50:00.420 now

00:50:00.700 so

00:50:00.940 lies

00:50:01.460 compromise

00:50:02.160 loose lips

00:50:02.780 you're not

00:50:03.200 with it

00:50:03.560 it's

00:50:03.780 that's

00:50:04.100 that's

00:50:04.500 a

00:50:04.600 term

00:50:04.840 for

00:50:05.220 termination

00:50:06.160 right

00:50:06.400 there

00:50:06.580 yeah

00:50:07.120 and I

00:50:07.360 think

00:50:07.640 that

00:50:07.880 because

00:50:08.600 that

00:50:08.880 never

00:50:09.160 stopped

00:50:09.760 and

00:50:09.900 the

00:50:10.020 board

00:50:10.180 of

00:50:10.280 directors

00:50:10.560 never

00:50:10.880 got

00:50:11.260 rid

00:50:21.680 that

00:50:21.900 is

00:50:22.140 unbelievable

00:50:22.660 let me

00:50:23.820 ask

00:50:24.060 you

00:50:24.180 do

00:50:24.360 you

00:50:24.500 have

00:50:24.760 all

00:50:25.060 of

00:50:25.180 this

00:50:25.300 stuff

00:50:25.500 from

00:50:25.620 the

00:50:25.760 five

00:50:25.960 books

00:50:26.120 in

00:50:26.240 1997

00:50:26.760 that

00:50:27.140 impacted

00:50:27.580 the

00:50:27.840 landmark

00:50:28.140 forum

00:50:28.620 the

00:50:29.120 Stephen

00:50:29.380 Covey

00:50:30.140 and

00:50:30.320 psychology

00:50:31.100 do you

00:50:31.800 have

00:50:32.020 that

00:50:32.160 on

00:50:32.280 a

00:50:32.420 PDF

00:50:32.800 which

00:50:33.080 you

00:50:33.200 would

00:50:33.340 give

00:50:33.520 to

00:50:33.660 your

00:50:33.800 guys

00:50:34.080 or

00:50:34.300 no

00:50:34.460 is

00:50:34.620 that

00:50:34.800 available

00:50:35.260 is

00:50:35.500 that

00:50:35.640 something

00:50:35.980 on

00:50:36.160 your

00:50:36.320 website

00:50:36.660 it's

00:50:37.120 if

00:50:38.120 it's

00:50:38.300 not

00:50:38.520 in

00:50:38.660 the

00:50:38.800 book

00:50:39.100 it's

00:50:39.480 you

00:50:40.000 can

00:50:40.160 go

00:50:40.280 to

00:50:40.400 my

00:50:40.620 website

00:50:41.060 that's

00:50:41.420 kind

00:50:41.580 of

00:50:41.700 an

00:50:41.880 appendix

00:50:42.400 to

00:50:42.580 the

00:50:42.740 book

00:50:42.980 and

00:50:43.140 you

00:50:43.260 can

00:50:43.400 find

00:50:43.700 the

00:50:43.940 linguistic

00:50:44.440 abstractions

00:50:46.560 so

00:50:46.760 the

00:50:46.960 terms

00:50:47.260 and

00:50:47.420 definitions

00:50:47.860 perfect

00:50:48.460 so

00:50:49.120 this

00:50:49.320 is

00:50:49.440 what

00:50:49.540 we're

00:50:49.680 going

00:50:49.820 to

00:50:49.900 do

00:50:50.020 just

00:50:50.900 for

00:50:51.080 that

00:50:51.260 part

00:50:51.580 we

00:50:52.160 are

00:50:52.320 going

00:50:52.480 to

00:50:52.580 leave

00:50:52.800 that

00:50:53.000 link

00:50:53.280 below

00:50:53.820 as

00:50:54.040 well

00:50:54.220 for

00:50:54.360 what

00:50:54.480 he

00:50:54.580 talked

00:50:54.780 about

00:50:54.920 in

00:50:55.040 1997

00:50:55.620 let's

00:50:56.100 make

00:50:56.240 sure

00:50:56.380 to

00:50:56.540 do

00:50:56.680 that

00:50:56.920 as far

00:50:57.580 as

00:50:57.660 the

00:50:57.780 book

00:50:57.940 goes

00:50:58.120 to

00:50:58.260 finish

00:50:58.500 it

00:50:58.620 up

00:50:58.720 if

00:50:59.060 you

00:50:59.200 could

00:50:59.360 speak

00:50:59.580 a

00:50:59.720 little

00:50:59.880 bit

00:51:00.000 about

00:51:00.200 the

00:51:00.340 book

00:51:00.480 what

00:51:00.620 could

00:51:00.780 you

00:51:00.880 say

00:51:01.000 about

00:51:01.160 this

00:51:01.320 book

00:51:01.540 here

00:51:01.700 well

00:51:02.080 it's

00:51:02.400 a

00:51:02.560 book

00:51:02.760 about

00:51:03.160 incredible

00:51:03.920 people

00:51:04.420 a

00:51:04.660 culture

00:51:05.680 that

00:51:06.140 was

00:51:06.420 really

00:51:06.700 based

00:51:07.140 on

00:51:07.660 self

00:51:08.600 development

00:51:09.080 of

00:51:09.320 people

00:51:09.700 giving

00:51:10.680 before

00:51:11.100 expectation

00:51:11.980 everyone

00:51:13.520 wins

00:51:14.200 it was

00:51:15.020 the

00:51:15.820 antithesis

00:51:16.500 of

00:51:16.760 everything

00:51:17.120 that

00:51:17.380 yoga

00:51:17.720 is

00:51:18.220 and

00:51:18.820 how

00:51:19.020 to

00:51:19.180 put

00:51:19.380 the

00:51:19.580 love

00:51:19.940 of

00:51:20.140 yoga

00:51:20.500 into

00:51:20.880 business

00:51:21.440 and

00:51:22.420 that

00:51:22.940 that

00:51:23.300 love

00:51:24.880 could

00:51:25.780 actually

00:51:26.120 make

00:51:26.400 more

00:51:26.720 profits

00:51:27.440 than

00:51:28.340 an

00:51:28.680 ordinary

00:51:29.160 business

00:51:29.720 that

00:51:29.960 was

00:51:30.120 built

00:51:30.440 on

00:51:30.760 just

00:51:31.440 metrics

00:51:32.020 so

00:51:32.620 you

00:51:33.120 know

00:51:33.360 usually

00:51:34.220 we'll

00:51:34.840 do

00:51:35.140 interviews

00:51:36.020 and it's

00:51:36.520 value

00:51:36.940 tainment

00:51:37.480 which is

00:51:38.160 it'll be some

00:51:39.100 entertainment

00:51:39.640 and it'll be some

00:51:40.500 value right

00:51:41.080 just so you know

00:51:42.180 for me

00:51:42.840 I have gotten

00:51:43.840 value from

00:51:44.500 sitting next to you

00:51:45.400 nonstop from

00:51:46.300 beginning to the end

00:51:47.140 so in my brain

00:51:48.380 I've taken 20-30

00:51:49.740 pages of notes

00:51:50.480 so you know

00:51:51.000 I'm gonna go back

00:51:51.520 and watch this

00:51:51.940 and take a bunch

00:51:52.420 of notes myself

00:51:53.060 are absolutely

00:51:54.400 incredible

00:51:55.280 for me

00:51:56.200 if I'm on your

00:51:57.020 side

00:51:57.520 and I watch

00:51:58.540 something like this

00:51:59.220 I can't

00:51:59.780 I'm re-watching

00:52:00.720 this myself

00:52:01.180 and taking notes

00:52:01.800 because of how many

00:52:02.360 things I could apply

00:52:03.040 to my business

00:52:03.660 to help you

00:52:04.280 grow your business

00:52:05.220 to the next level

00:52:05.800 you think this is

00:52:06.480 just an interview

00:52:07.160 we haven't even

00:52:08.280 gotten fully in the book

00:52:09.480 thank you so much

00:52:10.340 for your time

00:52:10.740 appreciate you

00:52:11.300 truly

00:52:11.560 thank you so much

00:52:12.460 powerful guy

00:52:13.080 this was great

00:52:13.520 thank you

00:52:14.060 thanks everybody

00:52:14.880 thanks everybody

00:52:14.900 for listening

00:52:15.440 and by the way

00:52:15.960 if you haven't

00:52:16.360 already subscribed

00:52:17.080 to Valuetainment

00:52:17.840 on iTunes

00:52:18.700 please do so

00:52:19.920 give us a 5 star

00:52:21.260 write a review

00:52:22.140 if you haven't already

00:52:22.940 and if you have

00:52:23.460 any questions

00:52:24.060 for me

00:52:24.540 that you may have

00:52:25.080 you can always

00:52:25.800 find me on Snapchat

00:52:26.700 Instagram

00:52:27.600 Facebook

00:52:28.300 or YouTube

00:52:28.980 just search my name

00:52:29.920 Patrick David

00:52:30.640 and I actually

00:52:31.740 do respond back

00:52:32.980 when you snap me

00:52:33.840 or send me a message

00:52:34.980 on Instagram

00:52:35.840 with that being said

00:52:36.660 have a great day today

00:52:37.660 take care everybody

00:52:38.340 bye bye

00:52:38.780 you

Valuetainment - December 19, 2018

Episode 232： Billionaire Entrepreneur Tells The Ugly Side of Running a Business

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Summary

Transcript