The Importance of Taking a Stand: My Conversation with Levi Strauss & Co. CEO Chip Bergh

Levi’s is one of my favorite brands. If I think back on the last thousand days, I have probably worn Levi’s 990 of those – maybe even more than that. Brand loyalty aside, I also really admire Levi Strauss & Co. President and CEO Chip Bergh for the work that he’s done to reinvigorate the company and his commitment to using his platform to be a force for good. I was really excited to sit down with Chip and learn a bit more about his journey and his approach to management on my latest episode of Never Stand Still (available on Facebook Watch and Apple Podcasts). Leadership and Levi’s? It doesn’t get much better than that.

Joining Levi’s in 2011, Chip became CEO at time when sales were rapidly declining. As a brand builder, Chip was attracted by the opportunity to turn one of America’s most iconic companies around. He’s done just that; Levi’s is experiencing its highest sales in a decade, they’re reinvesting back in marketing and they’re focused on winning in a multi-channel commerce environment.

Chip has revitalized the Levi’s brand by tapping into the company’s rich history, making bold commitments for social good, and setting a vision of becoming a technology company.

I really enjoyed meeting with Chip and discovered that he and I had a lot more in common than our taste in fashion. Here are four takeaways from our conversation:

1. Keep your customer front and center. As the retail landscape continues to evolve, customers now have more ways to shop than ever before, whether on mobile, desktop, or in-store. It’s imperative for companies to create a consistent customer experience across these channels. Keenly aware of this marketplace shift, Chip discussed how he ensures that Levi’s gives their customers a consistent, amazing experience throughout the customer journey. “I would say the most important thing is you've got to follow the consumer on where the consumer is going, and how they are choosing to shop,” Chip explained. “A consumer doesn't roll out of bed and say, ‘You know today, I think, is a main line store day, or today is gonna be an eCommerce day.’ They're shopping on multiple channels, kind of all the time. And you've gotta have that consistent experience that's consistent across channels, but you also have to give them a reason to want to walk into your store.” This is a great example of a trend we’ve been monitoring closely for years, and one that we are committed to helping our customers navigate and maximize: the shift to multi-channel commerce. But more importantly, it speaks to something that I fundamentally believe, which is that the most successful companies in the world are those that are customer champion companies. At PayPal, this is the driving force behind our business decisions and focus on offering more choice on how our customers want to use PayPal.
2. Regularly challenge your business model. At its core, the essence of being a Customer Champion is being willing to challenge and potentially disrupt a traditional business process if you’ve found a better way to serve your customers. For companies to stay at the top, they must focus on innovation, particularly as industries continue to evolve. As a 165-year-old brand, Levi’s is no stranger to adaptation. Shortly after Chip started his role as CEO, he invested in an innovation hub called Eureka Lab, which has enabled Levi’s to experiment with their products and be more innovative with their processes. From custom-made jeans designed though the use of lasers to smart-jackets that enable wearers to control their phones, Levi’s has started thinking less like a traditional retailer and more like a technology company. Chip explained, “We need to pivot from an apparel company that happens to think about technology, [because] our future is a technology company that happens to make blue jeans.” Much like my philosophy of Never Stand Still, Chip lives his life through a similar belief: never dig in and defend. This is one of a number of leadership lessons from his time in the military. “If you dig a foxhole and you are standing in a foxhole, you've just dug your own grave. You've got to be moving…and when in doubt, attack. Always have a plan,” Chip said. This focus on moving forward is an invaluable lesson that applies to all parts of life and business; we must think how we can use the threats that come our way to grow and evolve.
3. Have the courage to take a stand. I truly believe that CEOs have a moral obligation to use their position to be a force for good. Given the many issues threatening our world today, business leaders must have the courage to take a stand against those that threaten their employees or stand in conflict with their company’s values. Chip explained that Levi’s has a long history of standing up for social issues, whether desegregating their plants 10 years before it was legally required or providing healthcare for same-sex partners long before other companies adopted that policy. Today, Chip carries on this tradition, most recently making headlines for working with nonprofits and youth activists to end gun violence in America. “I do believe we are in an era where being the CEO gives you a platform, and the responsibility to have the guts to take a stand on important issues that are affecting our world,” Chip said. He also pointed to the impact taking a stand can have on employees, who increasingly want to work for values-based organizations. “One of the things that does keep a lot of our employees loyal to Levi Strauss is the values of the company and they see that we're not afraid to take a hard stand or to stick our neck out and stand up for the things that really matter most,” Chip explained.

For more on my chat with Chip, I’ve included our full discussion below. Leave a comment to let me know what resonated with you and thanks for watching!