If you like watches, you’ve probably heard about Patek Philippe.
They're a luxury brand, focused on high-quality mechanical watches, generating over 1B dollars in revenue per year. Recently, the president Thierry Stern was interviewed by Hodinkee and these were the 4 lessons I took from the interview.
Innovate, even when others don't understand it.
Patek has been a family business since 1932.
In 1976, Thierry's father decided to release Nautilus, a totally different model compared to the other watches they offered.
Today, everyone recognizes this specific collection as an industry icon, but back then, when it hadn’t been launched yet, people thought it was destined to become a failure.
When my father started to launch the piece, everyone told him he was crazy. You don't put such a beautiful movement in a steel case. So that was the first thing, it became, at that time, something quite unique.
People doubted it, but Philippe Stern had a vision. He believed in the Nautilus, and so, against all odd, he took that leap of faith, creating one of the most famous watch collections of all time.
We can (and should) do the same in our own projects.
Building something is hard.
Building something that is, in some way innovative, is even harder.
However, we must pursue our vision, even when others can’t see what we can. That’s how you can make a difference in the world.
Innovate, even when others don't understand it.
Don't try to do it all, focus on what you're really good at.
One of the current trends in the industry are Smart Watches, obligating companies to make a decision on investing in this new kind of product. Now, some companies tried to do it, but not Patek.
It's not our field. Can you imagine? Am I going to fight against Apple, which has nearly the same budget as I do in R&D, except they have 5 more zeros at the end of it?
Innovation doesn't always come by following the “new thing”, but from creating a new way to do something that you’re really good at. And you can only do this, if you focus on the right things instead of trying to do everything.
Recognizing your strengths is realizing that everything else may be a weakness. And that’s ok! Instead of trying to do it all or adjust to the current trends, focus on what you really know how to do and build upon that.
Study other industries.
Even though Nautilus is one of the crown jewels of Patek, the specific model 5711[a bestseller] is being discontinued.
The last 5711 was something that, obviously, meant a lot to the brand and Thierry had to make a decision: what color were they going to use on the last edition?
How do you choose the color of something that means so much to one of the greatest luxury brands ever?
You study other industries.
Think about it, when you picture a fancy watch, do you see a naked body, just wearing the watch? No! You imagine it matching some kind of outfit. That’s because the watch and fashion industry go hand in hand.
Thierry observed the tendencies in fashion in order to make a more conscious decision, increasing the perceived value of their product because it would easily match the trends for that year.
If you're building something, it's important to know your own industry, for sure. But it's also really important to understand what other industries are doing, especially the ones that complement your own.
Then, you just have to figure out how you can use that to your advantage, increasing the perceived value of your own product.
Use legacy as a motivation
When you're responsible for getting something done, depending on sheer motivation is playing a dangerous game. What you need is a purpose, something stronger than motivation, that helps you crush adversity. The problem is that most people approach this “purpose thing” from an individual paradigm.
What do I win? What kind of person am I going to be? Who’s gonna acknowledge me?
If you ask these questions, you’re focusing on the wrong thing.
It’s not about what’s in it for you. Sure, that’s important but real strength comes from fighting for something bigger than ourselves, a legacy. As Thierry says:
Starting from scratch and being able to create something that is part of history. When you are dead, what you made will still be there. It’s a nice memory.
You are perishable.
We all are.
But what you build can (and should) outlive you. In a moment of despair, this single idea can be your greatest ally.
So:
Innovate even when other don't understand you;
Don't try to do it all, focus on what you're really good at;
Study other industries;
Use legacy as motivation.
I would love to know which one of these you liked the most!
See you soon,
João