SBS MBA Leadership Assignment 2: Yvon Chouinard Case Study Report

This report is a leadership case study focusing on Yvon Chouinard, the founder of Patagonia. The paper explores Chouinard's personality traits, including extraversion, openness, and agreeableness, and how these contributed to his leadership success. It examines his approach to business, emphasizing teamwork, discipline, and environmental consciousness. The report delves into the skills essential for effective leadership, such as selflessness, flexibility, commitment to vision, listening, and communication, as demonstrated by Chouinard. It also considers the applicability of his leadership practices in today's globalized world, highlighting both the advantages and disadvantages of his approach, especially in the context of balancing business growth with environmental advocacy. The report concludes by evaluating the impact of Chouinard's leadership on Patagonia's success and its role in promoting environmental conservation.

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Executive Summary
This paper looks into leadership and it’s based on a case study of Yvon Chouinard who appears
to be an accomplished and successful mountaineer having climbed many peaks during his
mountain climbing career. He attributed his success to discipline and teamwork something he
considered of great importance in all ones activities. During this time he started selling climbing
gear from the trunk of his car and eventually due to sales increase Patagonia Company was
formed. Due to his limited background in business, Patagonia’s fast growth startled him but he
took it as a positive challenge and sailed through the storm of challenge as he always did during
his climbing escapees. He maintained his nature and believes throughout the growth of Patagonia
without allowing its growth and increase in profits to derail him from his believe and spirit of
being an environment activist: Rather he used his Company as a platform to promote
environment conservancy. This was through the use of environment friendly raw materials and
campaigning for environment conservation globally during his business tours.

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Table of Contents
Introduction....................................................................................................................................4
1. What in your understanding is the nature and personality of Yvon Chouinard?.........................4
2. Do you feel it is possible to become a leader when confronted by situations? What are the skills
required of a person to become a leader?.....................................................................................................6
3. What are the situations and factors that are to be taken into account, if one were to exhibit the
leadership quality exhibited by Yvon Chouinard?.....................................................................................10
4. In today's globalized, competitive world, do you feel the leadership practices followed by Yvon
can be applied?..........................................................................................................................................12
5. What do you feel are the advantages and disadvantages of following Yvon's leadership
approach?.................................................................................................................................................14
References....................................................................................................................................17

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Introduction
Leadership refers to the ability of a person or a group of persons to influence and lead others. It
involves the making of decisions on behalf of others either in an organization. Leaders are
responsible of steering those that they lead in achieving the organizations goal. An effective
leader possess certain character traits that enable them to effectively discharge their leadership
duties. This traits include strong communication skills, openness, agreeable and also easily
accessible. This case study looks into Yvon who possesses great leadership skills which are seen
to make him propel his company to great heights.
1. What in your understanding is the nature and personality of Yvon Chouinard?
Personality trait refers to feelings, behaviors, and thoughts that individual persons display
naturally in their daily activities. This, therefore, implies that for one to be said to possess certain
personality traits, they must exhibit them consistently. According to Borghans et al 2008,
personality traits usually have direct effect on the socio economic outcomes of the individuals
possessing or lacking them. According to the text, Yvon Chouinard prominently exhibited the
extraversion personality trait. People with extraversion personality traits tend to be outgoing,
friendly, talkative and are very energetic. This is evident as he was a successful and
accomplished mountain climber. Evidence cementing his extraversion personality trait is his
travels around the globe as he developed and tested Patagonia products while still serving as a
crusader for environmental issues.
Another personality trait that Yvon possessed was openness. Persons with this
personality trait are said to be open to new experiences. Yvon appreciated new ideas from his
employees, and he encouraged them more by ensuring there were no closed offices in his
Patagonia Company. He also allowed the employers of his company to dress as they often

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pleased in shorts and t-shirts and also stay bare feet at their desks. The Patagonia employees also
surfed when the conditions in the nearby beaches were favorable. This kind of management
approach from him made his company a desirable destination for many job seekers.
Yvon also portrayed the agreeable personality trait. He was kind, warm, compassionate
and very helpful to his staff at Patagonia. As evident in the text his company staff enjoy
company-sponsored ski and climbing trips; a subsidized onsite day care for his employee’s
young children, cafeteria with healthy foods and also a paid leave of up to two months. All this
are fruits the employees enjoy as a result of Yvon Chouinard's personality of agreeable. He also
made flexible time schedules at work to enable his staff to engage in surfing in the nearby
beaches.
Another notable personality trait he possessed was non-conscientiousness.
Conscientiousness is a trait found mostly in people who are organized; dutiful and dependable
are have self-disciplined. Yvon Chouinard had the opposite of this which is low
conscientiousness. This is evident on how flexible he was in running his Patagonia Company. He
allowed his workers to surf and to dress as they pleased something; even to seat barefooted at
their desks something that is not so common in most of the companies around the globe. This
personality trait made his workers enjoy a relaxed working atmosphere which highly motivated
them.
Yvon also possessed the trait of being accessible. He made sure there were no closed
offices or cubicles in Patagonia for the senior staff including him. He also made sure that no one
had a reserved parking spot as is the case in mist organizations. He did this to ensure free
interaction between staff of all levels; be it managerial or the junior team. When he was in the

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offices, he interacted freely with the workers as he did not consider himself any different from all
the others. Anyone who worked in Patagonia was part and parcel of the decisions made in the
workplace thanks to his personality trait of being accessible.
Yvon Chouinard's personality traits and his nature enabled him to conduct and propel his
company to great heights. The personality traits he possessed enabled him to interact with his
employees and also create one of the best working atmospheres in his Patagonia Company. This,
as it is evident, led to the rise of one of the most profitable and environment-friendly Company in
the world from a mere blacksmith's shop.
2. Do you feel it is possible to become a leader when confronted by situations? What are
the skills required of a person to become a leader?
Yes, I do believe that one can become a leader when confronted with situations. This is
because challenges tend to bring out our most inner strengths and it is in these trying times that
great leaders are realized ( Boin et al, 2016). Yvon, though not a businessman rose up to the
challenge when he realized that his business was expanding faster than he had imagined. He also
steered his Company in the right direction when he realized the toxic they were producing during
their production was slowly killing his employees and also destroying the environment: by
adopting eco-friendly production methods.
Leadership requires one to possess essential skills that would enable them to lead
effortlessly. The following are skills essential for any serious leader in any organization. I
believe the essential leadership skill is selflessness. Leaders ought to learn how to encourage
those they lead to pursue their dreams and goals without fear. For this to be possible, leaders

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have to possess the inner will of seeing others succeed. They should also make sure they lead
from the front as this will boost the morale of their junior colleagues at their workplaces
Another crucial leadership skill is to be flexible. Leaders in this era ought to realize that
fixed work schedules no longer work in all organizations thus the need to adapt the working
schedule that optimizes the output of their workers. Yvon, in his article, has proved that being
flexible does not reduce the effectiveness of worker and instead it boosts their morale to perform
even much better. Also, leaders should consider not being strict on the dress codes unless of
course it is for the safety and maintaining of health standards at the workplaces. It has also been
proven globally that those organizations which have flexible work schedules have workers that
perform the best.
The third most crucial leadership skill is that of committing to one's vision. This one
requires a lot of discipline for one to make sure they do not stray their eyes from their goals and
eventually their set vision (Eagly, Johannesen-Schmidt& Van Engen 2012, p.556). Chouinard's
company was always committed to environmental causes, and this saw him steer the company
product line to organic cotton. This was sparked by findings that cotton used by Patagonia
consumed 25 percent of the world's pesticides. This meant that they were polluting the
environment on a large scale and had to change their source of cotton to that produced
organically to ensure they stuck to their corporate principle of no harm. Despite the drastic shift
the company posted an increase in profit further proving that sticking to one's vision is essential
in surviving in business in the long run.
Listening has all along been a unique and essential leadership skill. Leaders, without
doubt, ought to possess this skill as listening to those they lead and also their clients ensure they

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remain ahead of changing times always. Yvon advocated for open-plan offices where no one had
a private office. He was also a firm believer of good decision emanating from consensus. He
believed that if decisions were made through agreement, all the involved parties would feel
appreciated and as a result be motivated to work harder.
Communication without a doubt is also key to good leadership. Leaders who
communicate effectively always have an added advantage regarding how their organizations end
up being run as opposed to those who cannot. A good leader is one who can communicate
effectively face to face with his staff and not through memos and notices in the offices as this
lacks the personal touch required.
Leaders ought to be empathetic. They need to show their employees and staff that they
care personally about them and not just what they can offer in workplaces. This goes a long way
in improving their staff's morale and productivity which in most if not all cases results in
increased profits. Leaders with empathy always have the best interest of their workers at heart
and are committed to ensuring their welfare is catered for.
Positivity is another crucial element of a refined leader. Yvon throughout his career as a
climber and businessman kept being positive. It was a foundation of his empire and all the staff
hired was instilled with it through how the organization was run. Leaders should be optimistic as
this goes a long way in encouraging and firing up the achieving spirit in their workers. Thus like
all other leadership qualities; positivity is vital in any successful leader.
Creativity is also a great requirement for a leader. Leaders should always devise new
ways of propelling their businesses to great heights always. This would ensure businesses do not
remain stagnant or become too comfortable. This also provides that businesses pursue their

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visions without relenting and which leads to their exponential growths. It also helps keep the
businesses relevant in the ever-changing tides in business.
I strongly believe that delegating should be a must-have skill for all leaders. Leaders who
delegate duties and roles in their organizations often if not all the times post the best results. This
is mere because one cannot be able to run an organization by pilling themselves with all the
responsibilities. As proven by Yvon, leaders should delegate and encourage their staff members
to take up roles the Companies they lead. I strongly advocate for leaders to strive to possess the
above qualities. This is because when equipped with them they stand better chances to propel
their businesses and organizations too far much higher heights as opposed to those who lack
those skills.
3. What are the situations and factors that are to be taken into account, if one were to
exhibit the leadership quality exhibited by Yvon Chouinard?
Different organizations' have different leadership needs thus mostly require leadership
style tailored specifically for their needs. Thus for one to exhibit leadership skills exhibited by
Yvon, they have first to consider the type of organization they lead. For example, those leaders
in the health sector would not advocate for Yvon's leadership style simply because of the nature
of the business they are in. It is very crucial for health workers to mind their dress codes as
failure to that they may expose themselves and others to various health risks. For instance when
handling patients and extracted specimens; one should be appropriately dressed and equipped
with the right type of clothing example gloves and closed shoes. Also, the food industry is
another sector where dress code should be strictly followed for sanitation and health purposes.

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Also, the type of workplace that Yvon provided for his staff to work in would not be
possible in other sectors such in the health sector. This is because privacy is of great importance
and goes a long way in ensuring patients feel that the confidentiality they require is guaranteed at
all times. This means that open work spaces would not be a favorite in the health sector
environment due to its lack of privacy.
Apart from the nature of business one is in, leaders should consider the implication cost
of some policies. For example, a struggling startup company cannot have the luxury of paying
their worker's prolonged leave as this would not be sustainable to them. This is because their
absence may mean a decrease in revenue. Also, they may not be able to allow much flexibility
regarding working hours as this may result in them incurring unbearable losses that may cause
them to close down eventually. An example is a cargo transport company; the managers may not
find it viable to let their staff engage in sports at the expense of delivering perishable goods.
Another case is in the security sector whereby the security personnel is required to be
vigilant and alert at all times. Yvon's leadership approach may not be applicable here as it does
not favor stringent rules in the workplace; and as we all know disciplined forces and security
agencies thrive under these rigorous rules. In almost all cases decisions have to be made by a few
and followed by many to ensure there is a prevalence of order in the forces.
The level of experience one's staff possess. There is a circumstance in which decision
making would be best if made from a small quarter rather than asking for inputs from all the
parties involved. A good example is in the informal sector whereby the workers may have the
know-how of how to produce a certain type of goods but not how to market them. Thus the

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marketing strategy and decisions should be left for the specialist in that organization to ensure
they do a detailed job.
Lastly the number of staff one has in their organization is crucial and needs to be
considered if one was to exhibit Yvon's leadership style. This is because some incentives offered
to workers in large organizations will not be possible in small ones. Example, providing free
healthy meals to one's workers is affordable and realistic where one's staff is small and would
prove to be a headache if an organization with over five hundred staff members tried the same.
It is clear that every industry requires its own tailored leadership approach for its optimal
performance to be realized. One cannot fully adopt leadership styles of another sector as the
needs may vary due to the nature of the business they are engaged in. Thus all leaders have to
study their organizations well and understand what they need to implement the best leadership
strategy.
4. In today's globalized, competitive world, do you feel the leadership practices followed
by Yvon can be applied?
I do believe that Yvon's leadership practices are both applicable and practical. According
to Uhl-Bienet al 2007, the ever changing business world needs new kind of leadership fit for this
era. In the ever-evolving world of business, time is of the essence. This means that any leader
worth their salt should be up to par with the latest technology trends. This will enable keep his
organization running without necessarily having to be in the office (Uhl-Bien, Marion &
McKelvey 2007, p.242). Also, his or her workers can work from anywhere in the world as they
can be able to submit their work via email Skype and even give feedbacks and reports through
teleconferencing.

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Also, I do believe that those workers who work in an environment similar to that
provided in Patagonia are likely to be the most motivated; and as we all know the most
motivated workers are the most productive. Organizations can offer subsidized daycare centers
to cater for their staff members' young ones as this would ensure their workers are fully attentive
to the jobs as the safety and welfare of their young ones would have been catered for.
Listening and appreciating one's worker's inputs and hard work also ensures they are
properly motivated. Yvon's leadership approach is tailored to ensure inclusivity of all his staff
members. Under his leadership approach, he gives his staff a chance to be part of the crucial
decision making thus making them feel important and appreciated in the
company(VanVactor,2012). It is no secret that not all leaders understand their staff but those
who do always receive the best results from their workers(Pieterse, Van Knippenberg, Schippers,
& Stam 2010, p.649). This is just because it is human nature to do well where one is well
appreciated and rewarded.
I also do believe that Yvon's leadership approach should be adapted and followed by all
organization. His love and passion for environment preservation ensured that his business was
run with the environment in mind. As a result of this, the company reduced the amount of toxics
realized in the environment annually. This was so because Patagonia under Yvon's leadership
halted the use of pesticide grown cotton in favor of the organically grown one.
Chouinard's leadership approach would be of great value if adopted globally. Imagine a
case in which all the production companies were careful about where to source their raw
materials and also what they discharge into the environment. This would mean a safer
environment devoid of pollutants which have numerous health hazards and also are the cause of

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global warming. If most if not all corporations were strict on this, we would rest assured that our
environment would be safe and healthy for many future generations to come (Egri 2015, p.442).
Yvon's leadership approach is no walk in the park, but for every good outcome, sacrifice
is essential. Organizations should learn through their leaders to always put their staff's welfare,
health and even security in their priority list even before their profits because if they do so, they
would almost automatically be running profits. Also applying Chouinard's leadership approach
would be of immense advantage to the environment.
5. What do you feel are the advantages and disadvantages of following Yvon's
leadership approach?
Any mode of leadership ought to have its merits and demerits. Yvon's leadership
approach also has its advantages and disadvantages. I am going to discuss them below starting
with the advantages of his mode of leadership. The first advantage is highly motivated workers.
Any organization that implements Yvon's leadership approach will top the list of companies with
the most motivated staff. Motivated staff equals a productive team, and this means an increase in
profits for the said companies.
The second advantage is maximizing on the human resource in the organizations.
Companies that use this leadership approach specifically that of inclusive decision making
utilizes its human resource to the maximum. This is because all persons eligible to make

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decisions are given a chance to air the inputs and their inputs are taken seriously. This results in
decisions that are based on the staff's contribution which in most cases lead to positive outcomes.
Another merit of this leadership type of approach is creating an atmosphere that is
conducive to the workers. Where workers and their leaders interact freely, there is usually no
tension in the air. This thus results in a healthy working environment in which the workers are
comfortable as they are assured of their rights being respected and upheld at all times. Also, the
workers are always confident that their grievances will be attended to and in the right spun of
time.
The fourth advantage of this leadership type is helping the organization retain its workers
and not lose easily and often to other companies. With all the benefits that arise from this
leadership approach: workers would be reluctant to switch jobs as the possibility of landing a job
with such incentives would proof to be futile. This is because most companies are normally
focused on maximizing their profits at the expense of theirs workers welfare.
Another advantage is ensuring the environment is safeguarded and protected for future
generations. Yvon's leadership style has helped reduce the amount of toxic realized into the
environment annually. This is because it advocates for the use of environment friendly raw
materials even if it means going an extra mile of financing the process as was in the case when
Patagonia started using organic cotton.
The following are some of the disadvantages associated with Yvon's leadership approach.
The first one is unsustainable mostly in the cases of startup companies. Companies that are not
stable or do not have the financial muscle cannot have the luxury to cater for some of its staff's
welfare. For example, most companies cannot afford to pay their worker to go on extended leave

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just because the workers feel to do so. This is because it would have a negative impact on the
company's resources.
Another demerit is workers potential may not be fully utilized in the workplace. This,
without a doubt, will have a negative impact on the company's income as the output would not
be as expected. This may happen when the company's staffs take advantage of the flexible work
time to engage in their personal affairs all at the expense of their employer. This is usually
because there would be no one following them carefully as they would be expected to act under
minimal supervision.
The third demerit is laxity and unprofessionalism at work. It may be a good idea not to
impose dress codes on one's employees, but this may turn out to be a disaster. Some clients may
not interpret this well and may see the organization and its leaders to all be some big joke. Also,
lack of proper defined dress code may lead to the circumstance of indecent dressing which may
not sink well with some workers as a result of their moral values, religion or culture.
Another disadvantage is an increase in the company's expenses. Patagonia allows its
employees up to two months of absent paid leave. This could prove to be a challenge for many
companies as the said employees would be receiving pay while not actively at work. This usually
is because of the tight budget that most of them operate on especially the startups and which may
kill them even before they rise from the ground.
Every leadership approach has its advantages and disadvantages, and Chuinard's
leadership approach is no exception. But despite this, it is clear that the benefits outweigh the
disadvantages effortlessly, and thus organizations should strive to emulate and adopt this style of

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leadership. I believe that Yvon's leadership approach is the way to go in this era as it has proven
to have numerous benefits.

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References
Boin, A., Stern, E. and Sundelius, B., 2016. The politics of crisis management: Public leadership
under pressure. Cambridge University Press.
Borghans, L., Duckworth, A.L., Heckman, J.J. and Ter Weel, B., 2008. The economics and
psychology of personality traits. Journal of human Resources, 43(4), pp.972-1059.
Eagly, A.H., Johannesen-Schmidt, M.C. and Van Engen, M.L., 2003. Transformational,
transactional, and laissez-faire leadership styles: A meta-analysis comparing women and men.
Psychological bulletin, 129(4), p.569.
Egri, C.P. and Herman, S., 2000. Leadership in the North American environmental sector:
Values, leadership styles, and contexts of environmental leaders and their organizations.
Academy of Management journal, 43(4), pp.571-604.
Pieterse, A.N., Van Knippenberg, D., Schippers, M. and Stam, D., 2010. Transformational and
transactional leadership and innovative behavior: The moderating role of psychological
empowerment. Journal of organizational behavior, 31(4), pp.609-623.
Uhl-Bien, M., Marion, R. and McKelvey, B., 2007. Complexity leadership theory: Shifting
leadership from the industrial age to the knowledge era. The leadership quarterly, 18(4), pp.298-
318.
VanVactor, J.D., 2012. Collaborative leadership model in the management of health care.
Journal of Business Research, 65(4), pp.555-561.