1 Motivating Excellence Through Love Michael Yonker Director Finance, Strategic Planning and Costing- Nike Global Footwear November 13, 2008

2 Agenda IntroductionIntroduction My Role at NikeMy Role at Nike What does it mean to be a good leader?What does it mean to be a good leader? Why does it even matter?Why does it even matter? How do you become one?How do you become one? Q/AQ/A

3 Who am I... Small town guy from rural OregonSmall town guy from rural Oregon Linfield College graduate in 1980Linfield College graduate in 1980 Work experienceWork experience —Arthur Andersen —InFocus Corporation —Wieden+Kennedy —Pixelworks —Nike present Married 28 years, father of threeMarried 28 years, father of three Personal interests include running,Personal interests include running, skiing and fishing skiing and fishing

4 Airbags Materials Costing Sourcing Strategy Finance/Accounting My Role at Nike Global Footwear

5 Good leaders, enable the journey of discovery together What does it mean to be a good leader?

6 Good leaders, enable the journey of discovery together

7  People want to matter  People have a story they want to share  People want to be heard  People want to make a difference  People want to contribute What does it mean to be a good leader? Our job as leaders is to enable that to happen

8  The days of tops down control and centralized knowledge are numbered, knowledge velocity is key  We must enable the collective intellect of the group to be set free to optimize results and stay ahead of the game Why does it even matter?

9 Did You Know? Why does it even matter? That China will soon be the #1 English speaking nation in the world In China you are one in a million... Which means there are 1300 people just like you. That the top 25% of India’s population in terms of IQ... Is greater than the entire population of the United States. TRANSLATED That means India has more honor students than the United States has kids... That the Top Ten in Demand jobs in 2010, didn’t even exist in We are preparing students for jobs that don’t even exist today... That will use technologies that haven’t even been invented yet... In order to solve problems we don’t even know are problems yet...

10 Did You Know? Why does it even matter? That half of what a student learns in their freshman year is obsolete by the time they reach their junior year in college... That after three years of employment, on average 95% of employees shut down, leave their ability to think and their desire to innovate at home...

11 Did You Know? Why does it even matter? That doesn’t leave much left from which to create and sustain a competitive business advantage, unless you know how to tap into it better than your competition

12 How Do You Become A Good Leader?  Starts with a “servant’s heart”...  Effective leaders don’t “declare” their leadership  People choose to follow...  To be the greatest in the kingdom of heaven, first you have to be a servant of all

13  Starts with a “servant’s heart”...  What is God’s greatest commandment?  Interestingly, the business world often seeks the opposite through control, intimidation and manipulation  If everything else is based on it, it must be important  “METL” (Motivating Excellence Through Love) How Do You Become A Good Leader?

14  “METL”...  Companies are made up of people “neighbors”  Every single one of them has an innate desire or need to be loved... love knows no boundaries  Why, because God put it there.  If people know you have their best interest at heart FIRST, they will rise to the occasion How Do You Become A Good Leader?

15  “METL”... A Case Study in the Making How Do You Become A Good Leader? May 1, 2 & 3,

16 How Do You Go About Leading?  “METL”...  Building up people’s self esteem and confidence creates much more effective employees

17 How Do You Go About Leading?  Your word is the most valuable thing you bring to the table everyday...  Pick your words very carefully, they are extremely powerful  Once used, they cannot be completely retracted  They can motivate or they can tear down  Don’t underestimate the power of affirmation...the Palanka story

18 How Do You Go About Leading?  You will reap what you sow... ethical behavior  Your life is an open book  Each day is a new page  What book are people reading when they see you?  You are a teacher every day by your actions and words... What are people learning from you?  “Consistency” in your behavior is key, people are testing you whether you know it or not

19 How Do You Go About Leading?  Pride is the integrity killer...  Pride comes before the fall... and great is the fall  Whether it’s in business like AA&Co or Enron  Or in personal relationships -- lying, cheating, adultery  Mixed with the appropriate level of Humility and you get Confidence  Someone who is smart, yet approachable  Someone who is able to admit mistakes and learn  Someone who is quick to listen, slow to speak  Someone who is being real and transparent

20  Humility reminds us of the responsibility that comes with leadership keeping it in the right perspective.  The “power of influence” is a gift granted to you by others who TRUST you  Therefore, it comes with a high degree of responsibility;  And, needs to be cared for wisely.  It can be withdrawn much faster than it is originally given or earned How Do You Go About Leading?

21 “You do not lead by hitting people over the head... that’s assault, not leadership.” Dwight D. Eisenhower What is Leadership?

22 What is Leadership?  Leadership is NOT about power  Its about setting vision and hope for the future  And, then ENABLING excellence in those who FOLLOW you to achieve a higher result.

23 What is Leadership? In summary:  Starts with a servants heart  Pick your words wisely  Ethical behavior  Confidence with the right mix of humility right mix of humility

24 What is Leadership? In summary:  Starts with a servants heart  Pick your words wisely  Ethical behavior  Confidence with the right mix of humility right mix of humility ? Questions ?