Angela Ahrendts - Former CEO of Burberry발음듣기
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Angela Ahrendts - Former CEO of Burberry
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You all know I was just in England two weeks ago and as part of that you came to the talk at the London School of Economics and then the next day we met at Heathrow Airport.발음듣기
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When you said you're going to be in this area we're like well we would love you to do the same thing with the team just talk about what you're doing etcetera, etcetera.발음듣기
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I mean fashion, the world of fashion is this world, I mean it's not obvious to most people how does someone get in to it and especially get to the level that you've gotten.발음듣기
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I think the greatest thing that anybody can do when they're young is discover their passion and what they love.발음듣기
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I know it sounds really, really terrible but I love stuff and I love to shop and I love fashion magazines and I love to sow and create.발음듣기
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It was the only industry I had to get in to but I went to university and signed up for all these design classes and realized I really wasn't that creative.발음듣기
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We have Christopher Bailey who's the Chief Creative Officer and he is so creative and so brilliant and his whole creative team does all those videos but then, so that's on my right and on my left we have the chief financial officer, we have our chief operating officer, we have a number of our teams that have just arrived as well.발음듣기
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I am half left brain analytical, I am half right brain creative and that was actually one of the reasons that I wanted to chat with Sal.발음듣기
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Because I said someday as you guys start to take over the world, you're going to have to also start to introduce some right brain curriculum and the Burberry Foundation would be honored to help you start creating some of those things when you're already down the road [unintelligible].발음듣기
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[Angela] Yeah, again I'm absolutely a merchant and I will tell you the reason Christopher and I created the foundation is this, because we are both creative thinkers.발음듣기
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[Angela] We feel very strongly that the curriculum specifically in America has become so left brain, so much of the arts and things have been cut out.발음듣기
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We need and so many times they're getting lost out of the system, so we created the Burberry Foundation.발음듣기
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We give 1% of our profits into the Burberry Foundation and what we do is, we try and pick up the youth that is starting to fall out of the system because they think they're dumb because they don't.발음듣기
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A professor tells you this and you just go to New York and then you're not even 30 and you're the president of Donna Karan?발음듣기
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[Angela] Probably not and I will tell you I'm really guilty because I'm not great talking about myself, I'm just not because I'm only as good always as the great teams that are around me and no different than you guys.발음듣기
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Yes, I think what happens always is when you discover who you are and you discover your passion and then it's not work at your life and so you just get in to that zone.발음듣기
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I was so fortunate that met the right people, things fell into place, absolutely worked my butt off because I was single, alone in New York and why not.발음듣기
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I just find if a member of my family says "Hey, I'm going to go to New York and I'm going to go work in fashion," like "Okay, I'll see if I can help support you at some point or …"발음듣기
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I mean how did you break in and then obviously left such a big mark with people that by the time you weren't even 30 you're a president of a major fashion organization?발음듣기
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[Angela] It's funny, I don't think of any different than a great athlete or a musician or a …발음듣기
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I didn't jump around, this is all that I've done and I have always been so passionate about it.발음듣기
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I think when you direct your energy and you become so passionate and you unite people, right?발음듣기
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My father used to always say, "Take off your rose-colored glasses" and I would always say "No".발음듣기
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Now I don't have to, I can keep dreaming but the important thing I've learned is though I have to get enough people, right?발음듣기
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I have to surround myself with enough people that can help execute that dream now and that's all that I've ever done.발음듣기
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I don't want to over simplify it but I found my zone, I absolutely love what I do, it is not work at all.발음듣기
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Everywhere that I've been because it's not work and the Monterey at Burberry or anywhere that I've been because the stronger companies get then the more they can do and the bigger influence they have.발음듣기
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At Burberry we've always said that we have the power to touch and transform lives through the power of our performance.발음듣기
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I'm from the heart of Midwest, real strong family faith up bringing and I have been raised to give.발음듣기
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That's how I was raised and so why wouldn't you apply that back in business and so it just ...발음듣기
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[Angela] Thank you. I do want because the interesting about this and why we video them is I think just the Khan Academy user base, there's a lot of young people out there who would say "How do I do that?"발음듣기
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If you had advice for someone who's 16 years old or 20 years old and they find this world intriguing, what should they develop in themselves?발음듣기
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[Angela] Well, and I always say to the fashion industry is deceiving because everybody just thinks it's only this creative part where in a company like Burberry there are 18 different departments that comprise the company.발음듣기
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I think sometimes the fashion industry gets a short, it's the short stick sometimes when they think "It's just fashion, it's just ..."발음듣기
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In order to create and here's my thing I always say that what we're doing is we're creating a great brand and a great company and we happen to the in business of fashion.발음듣기
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[Sal] I mean following on that but I do want to think about, well what in your mind is, what does a brand mean?발음듣기
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I've heard multiple definitions of a brand and how would you view Burberry's brand and how would you view our brand in the same, they're very similar. (Angela laughing)발음듣기
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[Angela] To me a great brand and here's my thing, think of yourself and when you interact with products.발음듣기
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What coffee do you drink every morning or you might walk into Starbucks or you might walk in the ...발음듣기
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How do you feel about and so you want to be a part of that brand because you're proud to be a part of that brand because that brand makes you feel a certain way.발음듣기
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Those are all of the attributes of a great brand, honesty, integrity, authenticity, quality but always doing what you …발음듣기
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In that way we are absolutely because your users they have to trust what you're telling them.발음듣기
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[Angela] To me it's a part of what a great brand is and in Burberry's case and that's how we measure it.발음듣기
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If you could talk a little bit about that rejuvenation before you got there and then when you took over the job and what do you tell yourself?발음듣기
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We had our own weaving facility in the North of England, we had our own factory to produce all of those coats.발음듣기
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Whenever we talked about global warming and they gave me all the reasons why we couldn't do that.발음듣기
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As you grow bigger and bigger what is your core products proposition and don't ever lose it.발음듣기
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Then also what is your core purpose and because I don't believe people just want to work, I think people all want deeper meaning in their lives.발음듣기
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People want to make stuff that has meaning and has a purpose and so we created our core values which are to protect, explore, and inspire.발음듣기
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We didn't come up with those, we took those out of a book that Thomas Burberry wrote 158 years ago when he was 21 years old and he founded the company.발음듣기
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We always say his spirit lives on and it should because it was his company, it was his vision and he created that waterproof gabardine fabric to protect the military in the trenches that's why he created the trench coat, etcetera.발음듣기
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We went back and revitalized our core and we took that category which was about 22% of the business, seven and a half, eight years ago today it's half of the business.발음듣기
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When you watch a runway show, nearly every item that goes down has some type of a trench coat or some type of.발음듣기
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On that and then as you move and continue to innovate and get new products, I'm sure everyday someone comes to you "Hey, we should have a line of whatever it might be", how do you decide?발음듣기
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One is we always say that we are a creative thinking company and everything we do is driven by intuition.발음듣기
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Because we always say that we do value feeling over knowing because if we only focused on knowing, we'd never move forward because you can't prove something that hasn't been done before.발음듣기
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Does that mean that you feel or collectively not just you, the whole organization feels like something is the right direction but what if someone says, "Hey, but look everyone who's gone in to this phase before has failed or there's 800 players already in that market that they got zero margin on what they're doing."발음듣기
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When we talked about retail led growth brought in the consultant company told that, I said, "Tell me every key market in the world that has, where are peers have at least two stores and we have none."발음듣기
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Then tell me their productivity per square foot so we had a strategy, put all the hard metrics behind it and but the gut …발음듣기
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Our instincts were, and we were 75% wholesale when I started, today we are 75% retail, our own stores direct to consumer.발음듣기
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Our instincts said, we had to go direct to consumer, we had to control the brand, the environment, everything.발음듣기
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Again brought in the firm but we did that on every strategy and they would reaffirm etcetera.발음듣기
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Very first been in the company six months strategies are done, everything's outlined, we know exactly where we're going.발음듣기
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At the very end they told the board and we said that that point in time we would double the revenue and the profits in five years.발음듣기
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They, the guy, that I won't mention the company on video but the guy sense up at the end of the meeting and the board says, "Well how do you feel about this going through it?"발음듣기
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[Angela] We had them come in and for six months we had them work with us on validating these strategies.발음듣기
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[Sal] Right, and so the strategy was based through as a number strategy where you're looking at the retail density in different geographies and how productive those stores are.발음듣기
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Well and that was the other part of the thing I just forgot so one was intuition but the other is balance.발음듣기
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The foundation was a soft strategy, the culture was the soft, all of the [company] had been, free lunch, the benefits for all of these stuff, or all the soft strategies and we said that these will enable those.발음듣기
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The consulting firm didn't work with us on the soft things, they only worked with us on the hard.발음듣기
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When they told the board there's only 5% probability, the board kind of like we're nuts but we actually achieved the plan a year early.발음듣기
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That we had to build a team, we had to unite and connect this culture and they had to believe in the dream, right?발음듣기
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We were 3,200 people then and some of them, we had people then with the 30 years, 40 years right?발음듣기
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That's the positive energy that comes around something when you are breaking new ground or trying to do something transformative like you are.발음듣기
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If they don't believe, and I told them upfront after that six months I said, "If you do not believe that we're going to do this, then maybe you should go now."발음듣기
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We used our instincts, we confused our self to the facts and then we build a very balanced strategy, hard and soft, very balance teams.발음듣기
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We need creative's but we need operational excellence and the strategies were built that way.발음듣기
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In every country, in every region because I don't think you'll build a great brand that resonates and touches people without both.발음듣기
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[Sal] Right, I mean through that process were there moments where you yourself were like "Gee, I don't know if this is going to happen."발음듣기
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[Angela] Yeah but you have to because you are on, you are disrupting a sector that is so overdue to be disrupted, it is so overdue.발음듣기
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The next generation is in your hands and they need you to do this, the country needs you to do what you're doing.발음듣기
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You got to do it and you got to keep going and you got to get your reach out there, you are engaging.발음듣기
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[Sal] Can you Skype in to our company updates, it would be very … (people laughing) Let's do this.발음듣기
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[Angela] I mean that is how I feel and if you, and it's not going to be easy but don't stop.발음듣기
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We knew that and this year they'll be pretty close to 100 million people that go into burberry.com and you guys we're up to, a lot but for a luxury brand that's a lot.발음듣기
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[Angela] It's a lot and not all buying but engaging and spreading what the brand's about, etcetera.발음듣기
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I mean the whole world is becoming mobile and it's crazy all the metrics of the consumers that are engaging and that's probably a challenge to you guys too.발음듣기
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We do as we get big, areas get sloppy so we still have to drive a lot of efficiencies out of the business.발음듣기
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We call it commercial procurement we're building, we build tons of stores a year so we've hired some additional expertise to make sure we're doing that in the most efficient way in.발음듣기
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I mean right now if you ask any of our executives around the world, they know those are the three things that we're focused on this year.발음듣기
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We just did our trading update a couple weeks ago and our retail business was up 13% on a really, really big base and …발음듣기
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[Angela] No, no, our largest competitor put up a 3% retail business and they're the biggest in the sector.발음듣기
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Because there are 10,000 people around the world that are so passionate about this company and so passionate about our performance and creating again a great brand, a really great company but they also know that every time we open a flagship store ...발음듣기
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We created a program to help the youth in the Chicago area with our programs Burberry Beyond, etcetera.발음듣기
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We've done it in New York, we've done it in Beijing, we're getting ready to do it in Shanghai.발음듣기
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Anytime we open up this huge luxury store which could come across a little, elitist if you will, we always make sure that the company also, like in New York we said we're lighting up Manhattan with a store.발음듣기
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Well we're also going to light up people's lives when we gave the million dollars to the Robin Hood Foundation and put our program in place for the chartered schools, etcetera.발음듣기
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[Sal] When you look at the organization, you must be looking at people "Oh, look at him, look at her."발음듣기
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What are the traits that you're seeing in those people that are really striking you as someone who might be able to one day step into your shoes?발음듣기
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We look at it honestly in all levels of the company and I would even say probably less my shoes, right?발음듣기
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Because that would mostly be a lot of my [direct report], etcetera so I would tell you at every level of the company and we hire for it as well.발음듣기
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We always say we don't want tissue rejection because it's tough to bring people into your culture.발음듣기
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I would tell you with anybody going to the next level, there is transparency, trust, our core values, all those soft things we talked about.발음듣기
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We always say that we can teach people anything but we can't teach them to care, we can't teach them to feel and when you're in a human business and you're communicating like we're communicating, they have to be authentic.발음듣기
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Because then only if they really know who they are, can they build very balance teams around them and it's a real self-reflective phase that they go through but they will become better leaders having peace and confidence with who they are and to thy self be true.발음듣기
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I tell investors you would be so surprised at every decision I don't make everyday. (Sal laughs)발음듣기
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I have to try trust the people we brought in and I have to give them very simple clear messages.발음듣기
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The three things we're going to do this year and all the metrics behind it and uniting everyone but it is trust, intuition, great communication, authenticity, people have to feel them or they will never rise as a leader in the company.발음듣기
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I mean you talk about personality fit and cultural fit, do you trust them, but is there some way that you can screen for that?발음듣기
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It's funny because in that book it says, "Oh, we don't need programmers anymore, we need inventors."발음듣기
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I mean in my mind the learning to factor a polynomial or to do the basics of algorithm, that's like a painter learning how to paint.발음듣기
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The real expression is when you actually create something so I actually think we're more similar.발음듣기
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[Angela] You're taking what most people would take as a traditional left-brain and you're adding fun to it, you're adding energy to it.발음듣기
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You're making it, you're combining, you're making it more of a right, left brain exercise not just an analytical exercise.발음듣기
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I will ask you again because it was so inspiring in the Dopamine, just start, we're talking about Dopamine earlier and you got us all very excited.발음듣기
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I mean, just parting words, advice for the team here and people look good greater Khan Academy community.발음듣기
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We'd met a couple of different times and I had the honor of sitting next to him at the luncheon table.발음듣기
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He was talking about all of his different philanthropic efforts etcetera and to the who's who of the UK if you will.발음듣기
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He looked at me like how did I know about this and nobody in the room knew about it and these are huge big executives running Glaxo and every big company in the UK.발음듣기
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He then went on to share with them what you were doing and why that he felt strongly and his foundation was investing, etcetera.발음듣기
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'"I believe you have the ability to create one of the greatest brands and one of the greatest companies in the world."발음듣기
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There is a tremendous need and you are filling that need and it's in a different way but you're using and you're leveraging the technology that exist today, as he did.발음듣기
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He then sent a follow up note afterwards saying, "Could we continue the conversation, I found it fascinating, etcetera."발음듣기
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I shared this with you because at this young age that you are, to have someone of his vision and his caliber believe in you, you know you're on the right track.발음듣기
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I just think that I am absolutely nothing in comparison to the people that are watching you, the people that are following you, the lives that you're impacting.발음듣기
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You will create a phenomenal brand, you will create an amazing company and you are in the mist of disrupting a sector that is so desperately in need of being fixed.발음듣기
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You're doing it in such a modern way, leveraging everything that exist today and my counsel to you is just don't stop and don't slow down.발음듣기
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Stay focused, keep the right pace but do truly understand that what you're doing has far greater meaning than anything you've ever done in your lives before.발음듣기
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I am so honored to be here to chat with you and just I am so thankful for what you're doing, I really am.발음듣기
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I mean this was, I mean for me personally when we met in Heathrow with my $6 shirt on, that by itself was a really powerful.발음듣기
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She has authority here but we were transfixed and blown away by meeting you then and this I think I could speak for everyone where this was incredibly inspiring and motivating for all of us so thank you so much.발음듣기
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