What Can We Learn from Nike’s Face Plant?

Nike’s recent face plant highlights a crucial lesson: Design is not a cost center, but a value driver.

John Donahoe has spoken often and cryptically about Nike’s ‘innovation pipeline’. ‘Twas empty and now full.

There’s another way to read this. Instead of prioritizing and unleashing design-led excellence, protecting the business became Nike’s purpose.

The recipe? Recolor, reconstitute, react, and… restructure. 

During my 17 years at Nike, we thrived on a relentless drive for fresh ideas, bold risks, and an unwavering commitment to exceptional products and storytelling.

Design autonomy and leadership were a real thing. As real as the insanely talented people I worked with.

This ethos is best captured in a 1977 typed memo: “If we do the right things we'll make money damn near automatic.”

Somewhere along the road to $51 billion, ‘making damn money’ became the ethos.

This, of course, shifts design expectations. A fellow creative says it this way, “word on the street is that the question ‘is it good enough for Nike?’ has replaced ‘is it NIKE?’”

There’s something we can all learn from this. When companies divest from design, they risk losing the very essence that differentiates them in a crowded market.

Nike’s recent layoffs and divestment in design show that cutting corners on creativity leads to eroding brand identity and consumer loyalty — which leads to more cutting, and a vicious cycle.

For smaller brands, this is a huge opportunity. While giants like Nike and its shareholders err by underestimating the power of design, nimble and innovative brands can seize the moment.

By investing in unique, thoughtful user-led design, smaller companies can carve out a niche, attract a dedicated following, and stand out in ways that larger, more bureaucratic companies cannot.

The lesson is clear: Design is not optional. It’s the soul of your brand, the power of your products, and the magic of your customer’s experience.

Have the courage to empower it, invest in it, and let it loose.

The rest is still damn near automatic.