[{"_1":2,"_3":-5,"_4":-5},"loaderData",{"_5":6,"_7":8},"actionData","errors","root",{"_136":-5,"_137":-5,"_138":139,"_140":141,"_142":143},"routes/clips.$id.$slug",{"_9":10,"_11":12},"clip",{"_13":14,"_15":16,"_17":-5,"_18":19,"_20":-5,"_21":22,"_23":24,"_25":26,"_27":28,"_29":30,"_31":32,"_33":34,"_35":36,"_37":38,"_39":40,"_41":-5,"_42":-5,"_43":-5,"_44":45,"_46":-5,"_47":48,"_49":50,"_51":-5},"canonicalUrl","https://howleaderslead.com/clips/1316/give-your-employees-the-power-to-please-your-customers","id",1316,"title","Give your employees the power to please your customers","subtitle","transcript","WEBVTT\n\n1\n00:00:00.000 --> 00:00:01.520\nWell, you know, again, like you just said,\n\n2\n00:00:01.520 --> 00:00:03.640\nI think so many companies,\n\n3\n00:00:03.640 --> 00:00:07.640\nyou'll get a customer service packet that's like 200 pages\n\n4\n00:00:07.640 --> 00:00:09.600\nand you give them to a new employee and you say,\n\n5\n00:00:09.600 --> 00:00:12.240\n\"Here, here's our customer service and policies.\n\n6\n00:00:12.240 --> 00:00:13.520\n\"Read this.\n\n7\n00:00:13.520 --> 00:00:14.360\n\"Good luck.\n\n8\n00:00:14.360 --> 00:00:15.200\n\"Thank you.\"\n\n9\n00:00:15.200 --> 00:00:16.200\nAnd they go home and they're like,\n\n10\n00:00:16.200 --> 00:00:17.960\n\"Oh my God, mine is simple.\n\n11\n00:00:17.960 --> 00:00:19.160\n\"It's a sister rule.\n\n12\n00:00:19.160 --> 00:00:20.960\n\"This is your customer service, okay?\n\n13\n00:00:20.960 --> 00:00:22.680\n\"This is your policy.\"\n\n14\n00:00:22.680 --> 00:00:25.320\nYou treat every customer like they were your sister\n\n15\n00:00:25.320 --> 00:00:26.200\nor your brother.\n\n16\n00:00:26.200 --> 00:00:28.520\nHopefully you like your sister or your brother.\n\n17\n00:00:28.520 --> 00:00:30.080\nWhat would you do for your sister?\n\n18\n00:00:30.080 --> 00:00:32.840\nIf she had a broken earring, you'd fix it.\n\n19\n00:00:32.840 --> 00:00:35.200\nIf she lost one earring but had the other,\n\n20\n00:00:35.200 --> 00:00:36.040\nwhat would you do?\n\n21\n00:00:36.040 --> 00:00:38.000\nGive her 50% off on a new pair.\n\n22\n00:00:38.000 --> 00:00:40.920\nIt's just take care of her like family.\n\n23\n00:00:40.920 --> 00:00:43.360\nTreat your customer like you would your family\n\n24\n00:00:43.360 --> 00:00:48.040\nand I give every single associate part-time holiday help\n\n25\n00:00:48.040 --> 00:00:50.800\nin terms of the power to please.\n\n26\n00:00:50.800 --> 00:00:53.200\nYou do not have to ask for manager approval\n\n27\n00:00:53.200 --> 00:00:54.800\nin a Kendra Scott store.\n\n28\n00:00:54.800 --> 00:00:57.200\nYou in that moment, you make a decision,\n\n29\n00:00:57.200 --> 00:00:59.680\nthe best decision you can but you make a decision\n\n30\n00:00:59.680 --> 00:01:01.520\nand you help that customer.\n\n31\n00:01:01.520 --> 00:01:05.440\nIt's very simple and when you give young associates\n\n32\n00:01:05.440 --> 00:01:08.520\nthat power, that trust that you believe in them,\n\n33\n00:01:08.520 --> 00:01:10.320\nthey will do magical things.\n\n34\n00:01:10.320 --> 00:01:13.640\nIf you don't believe in a part-time sales associate,\n\n35\n00:01:13.640 --> 00:01:15.560\nthen you shouldn't have them on your floor.\n\n36\n00:01:15.560 --> 00:01:18.120\nThey're the most important person in your company\n\n37\n00:01:18.120 --> 00:01:20.720\nare the people that are interacting with your customers.\n\n38\n00:01:20.720 --> 00:01:22.560\nSo if you don't think that they have the power\n\n39\n00:01:22.560 --> 00:01:26.480\nto make a decision, why did you hire them, right?\n\n40\n00:01:26.480 --> 00:01:29.040\nSo I think the mentality of customer service\n\n41\n00:01:29.040 --> 00:01:31.600\ncould be so simplified for businesses.\n\n42\n00:01:31.600 --> 00:01:34.720\nThey get over policy driven and not that there aren't\n\n43\n00:01:34.720 --> 00:01:37.560\ngood foundations of how you handle things.\n\n44\n00:01:37.560 --> 00:01:39.760\nBut I also think it's important to think about\n\n45\n00:01:39.760 --> 00:01:43.160\nhow you can really empower your people\n\n46\n00:01:43.160 --> 00:01:46.280\nto give the best service they possibly can every day.\n\n47\n00:01:46.280 --> 00:01:47.920\n- That is like the sister role\n","pretty_transcript","start_time",1865279,"end_time",1969959,"keywords","trust, sales associates, manager approval, customer service, retail","slug","give-your-employees-the-power-to-please-your-customers","origin","cms","mux_playback_id","eKIi1FO5poLlEjcUxpF53UaYhzovl00AGBK4CGA02IKkQ","mux_asset_id","cXCKYGKA00czozIC8Nidli7D00iX499df5Zs1UzzkHivs","leader_id",139,"episode_id",285,"updated_at","2025-03-07T15:43:21.000000Z","meta_title","meta_description","og_image_media_id","web_url","https://www.howleaderslead.com/clips/1316/give-your-employees-the-power-to-please-your-customers","og_image_url","leader",{"_13":36,"_101":102,"_103":104,"_105":106,"_25":107,"_108":109,"_62":73,"_59":110,"_111":112,"_69":113,"_39":114,"_115":-5,"_41":-5,"_42":-5,"_43":-5,"_116":117,"_89":118,"_44":119,"_120":67,"_121":122,"_46":-5,"_123":124,"_125":126,"_93":127,"_51":-5},"episode",{"_13":38,"_15":52,"_27":53,"_17":54,"_55":56,"_18":57,"_20":58,"_59":60,"_61":-5,"_62":60,"_63":-5,"_64":65,"_66":67,"_68":-5,"_69":-5,"_70":71,"_72":73,"_74":-5,"_35":36,"_39":75,"_41":-5,"_42":-5,"_43":-5,"_76":77,"_78":79,"_80":81,"_82":83,"_84":-5,"_85":-5,"_86":87,"_88":-5,"_89":-5,"_46":-5,"_90":91,"_92":-5,"_93":-5,"_51":-5},"og_image_media","Strive for Simplicity","strive-for-simplicity","Learn why gratitude and optimism are every leader’s secret weapon (especially when you’re just getting started). Get practical strategies for warding off complacency and staying agile even as you grow. Plus, inspiring words for anyone balancing work, family, and life.","summary","

Today’s guest is Kendra Scott, Founder, Executive Chairwoman of the popular jewelry brand Kendra Scott.

Have you ever gotten stuck because you felt so overwhelmed by how complicated something seemed?

It can happen when you launch a new initiative, start a new role, or come up against a new challenge.

In those moments we leaders can overcomplicate things! And when we get bogged down like that, it’s really tough to make good decisions and keep our teams moving.

If you can relate, then you will love this conversation with Kendra. She knows how to strive for simplicity when she comes up against a challenge.

And let me tell you, she has faced her fair share of challenges – from a business failing early on in her career … to being pre-judged as a blonde woman from Texas … to now, navigating the ever-shifting landscape of running a retail business.

But with persistence, she pinpoints the heart of an issue – and with creativity, she finds a simple, effective solution. And her team loves her for it. There’s a lot we can learn here about how to strive for simplicity.

You’ll also learn:

The power of showing gratitude to your team
How to leverage your failures
Practical ways to fight complacency on your team
One incredible “rule” that transforms and simplifies customer service
Why rejection can work for you
The specific ways Kendra developed herself as a “self-taught” entrepreneur
How Kendra balances parenthood and business

Take your learning further. Get proven leadership advice from these (free!) resources:

The How Leaders Lead App: A vast library of 90-second leadership lessons to stay sharp on the go

Daily Insight Emails: One small (but powerful!) leadership principle to focus on each day

Whichever you choose, you can be sure you’ll get the trusted leadership advice you need to advance your career, develop your team, and grow your business.

","WEBVTT\n\n1\n00:00:00.000 --> 00:00:07.050\nWelcome to Howl Leaders Lead, where every week you get to listen in while I\n\n2\n00:00:07.050 --> 00:00:07.880\ninterview some\n\n3\n00:00:07.880 --> 00:00:09.960\nof the very best leaders in the world.\n\n4\n00:00:09.960 --> 00:00:13.760\nI break down the key learning so that by the end of this episode, you'll have\n\n5\n00:00:13.760 --> 00:00:14.400\nsomething\n\n6\n00:00:14.400 --> 00:00:18.200\nsimple you can apply as you develop into a better leader.\n\n7\n00:00:18.200 --> 00:00:20.760\nThat's what this podcast is all about.\n\n8\n00:00:20.760 --> 00:00:25.200\nAnd today's guest is Kendra Scott, the founder and executive chairwoman of the\n\n9\n00:00:25.200 --> 00:00:26.200\npopular jewelry\n\n10\n00:00:26.200 --> 00:00:28.520\nbrand, Kendra Scott.\n\n11\n00:00:28.520 --> 00:00:30.400\nNow here's the question for you.\n\n12\n00:00:30.400 --> 00:00:34.130\nHave you ever gotten stuck because you felt so overwhelmed by how complicated\n\n13\n00:00:34.130 --> 00:00:34.680\nsomething\n\n14\n00:00:34.680 --> 00:00:35.680\nseemed?\n\n15\n00:00:35.680 --> 00:00:37.560\nI've been there, believe me.\n\n16\n00:00:37.560 --> 00:00:41.480\nIt happens sometimes when you launch a new initiative or start a new role, and\n\n17\n00:00:41.480 --> 00:00:42.040\nespecially\n\n18\n00:00:42.040 --> 00:00:45.040\nwhen you come up against a new challenge.\n\n19\n00:00:45.040 --> 00:00:50.040\nSometimes in those moments, we as leaders can over-complicate things.\n\n20\n00:00:50.040 --> 00:00:53.780\nAnd when we get bogged down like that, it's really tough to make good decisions\n\n21\n00:00:53.780 --> 00:00:54.320\nand keep\n\n22\n00:00:54.320 --> 00:00:55.520\nour teams moving.\n\n23\n00:00:55.520 --> 00:00:59.370\nNow, if you can relate to what I'm talking about, then you're going to love\n\n24\n00:00:59.370 --> 00:00:59.920\ntoday's\n\n25\n00:00:59.920 --> 00:01:02.040\nconversation with Kendra.\n\n26\n00:01:02.040 --> 00:01:06.520\nShe knows how to strive for simplicity when she comes up against the challenge.\n\n27\n00:01:06.520 --> 00:01:08.120\nAnd let me tell you something.\n\n28\n00:01:08.120 --> 00:01:12.950\nShe has faced her fair share of challenges, from a business failing early on in\n\n29\n00:01:12.950 --> 00:01:13.720\nher career\n\n30\n00:01:13.720 --> 00:01:18.720\nto learning how to grow a business from the ground up and even managing through\n\n31\n00:01:18.720 --> 00:01:19.280\ncrisis\n\n32\n00:01:19.280 --> 00:01:23.440\ntime and time again and coming out stronger for it.\n\n33\n00:01:23.440 --> 00:01:28.660\nWith persistence, she pinpoints the heart of an issue and creatively finds a\n\n34\n00:01:28.660 --> 00:01:29.400\nsimple,\n\n35\n00:01:29.400 --> 00:01:30.400\neffective solution.\n\n36\n00:01:30.400 --> 00:01:35.280\nThere's so much we can learn here about how to strive for simplicity.\n\n37\n00:01:35.280 --> 00:01:44.310\nSo here's my conversation with my good friend and soon to be yours, Kendra\n\n38\n00:01:44.310 --> 00:01:45.600\nScott.\n\n39\n00:01:45.600 --> 00:01:48.440\nKendra, it's so exciting for me to have you with us today.\n\n40\n00:01:48.440 --> 00:01:53.760\nI want to start by asking about your very first employee, which I understand\n\n41\n00:01:53.760 --> 00:01:54.440\nwas your\n\n42\n00:01:54.440 --> 00:01:55.440\nmother.\n\n43\n00:01:55.440 --> 00:01:57.440\nAnd I know that she worked for Mary Kay.\n\n44\n00:01:57.440 --> 00:02:00.000\nAnd by the way, my mother was an Avon lady.\n\n45\n00:02:00.000 --> 00:02:04.240\nBut anyway, I have to ask you this trivia question.\n\n46\n00:02:04.240 --> 00:02:08.800\nDo you know how Mary Kay recognizes their high performers?\n\n47\n00:02:08.800 --> 00:02:09.800\nYes.\n\n48\n00:02:09.800 --> 00:02:10.800\nAll right.\n\n49\n00:02:10.800 --> 00:02:11.800\nThey would give tokens.\n\n50\n00:02:11.800 --> 00:02:15.960\nAnd lots of times they were pins or broaches.\n\n51\n00:02:15.960 --> 00:02:18.120\nAnd they were bumblebees.\n\n52\n00:02:18.120 --> 00:02:23.400\nMy mom had a lot of bumblebees and she would wear them all on her shoulder pad.\n\n53\n00:02:23.400 --> 00:02:25.640\nBecause it was the 80s.\n\n54\n00:02:25.640 --> 00:02:27.440\nShe's a general, right?\n\n55\n00:02:27.440 --> 00:02:28.440\nYeah.\n\n56\n00:02:28.440 --> 00:02:32.800\nAnd they'd be all sitting on and they were all different styles and colors.\n\n57\n00:02:32.800 --> 00:02:36.930\nSome had stones in them, but it was a really big deal when she received some of\n\n58\n00:02:36.930 --> 00:02:37.360\nthese\n\n59\n00:02:37.360 --> 00:02:38.760\npins for sure.\n\n60\n00:02:38.760 --> 00:02:40.200\nWhy the bumblebee?\n\n61\n00:02:40.200 --> 00:02:41.960\nThat is a great question.\n\n62\n00:02:41.960 --> 00:02:43.200\nI have the answer.\n\n63\n00:02:43.200 --> 00:02:44.200\nI have the answer.\n\n64\n00:02:44.200 --> 00:02:45.200\nYou don't have it.\n\n65\n00:02:45.200 --> 00:02:46.200\nOkay.\n\n66\n00:02:46.200 --> 00:02:47.200\nNo, why the bumblebee?\n\n67\n00:02:47.200 --> 00:02:51.520\nThe baro dynamically, the bumblebee should not fly, but it does anyway.\n\n68\n00:02:51.520 --> 00:02:52.520\nIsn't that cool?\n\n69\n00:02:52.520 --> 00:02:53.520\nThat is so cool.\n\n70\n00:02:53.520 --> 00:02:54.520\nSo it just does it?\n\n71\n00:02:54.520 --> 00:02:55.520\nIt doesn't.\n\n72\n00:02:55.520 --> 00:02:56.520\nBecause it wants to.\n\n73\n00:02:56.520 --> 00:02:57.520\nIt doesn't because it wants to.\n\n74\n00:02:57.520 --> 00:02:58.680\nAnd I was thinking about this.\n\n75\n00:02:58.680 --> 00:03:01.960\nI was going, how does recognition play into your persona?\n\n76\n00:03:01.960 --> 00:03:02.960\nOh my gosh.\n\n77\n00:03:02.960 --> 00:03:07.360\nI mean, first of all, I think, you know, one thing that I learned a lot from my\n\n78\n00:03:07.360 --> 00:03:07.880\nmom and\n\n79\n00:03:07.880 --> 00:03:13.090\nwatching through Mary Kay was how important it is to recognize those that are\n\n80\n00:03:13.090 --> 00:03:13.720\nworking\n\n81\n00:03:13.720 --> 00:03:18.910\nhard, that are doing a great job, that are representing your company positively\n\n82\n00:03:18.910 --> 00:03:19.000\n.\n\n83\n00:03:19.000 --> 00:03:22.360\nAnd so you'll see, you know, we do that daily.\n\n84\n00:03:22.360 --> 00:03:25.320\nI don't think it has to be something that you have to wait to recognize\n\n85\n00:03:25.320 --> 00:03:26.200\nsomebody with.\n\n86\n00:03:26.200 --> 00:03:30.230\nOf course, we have our pillar awards and our annual meeting where we talk about\n\n87\n00:03:30.230 --> 00:03:30.680\nour three\n\n88\n00:03:30.680 --> 00:03:35.230\npillars, which are family fashion and philanthropy and folks that are in our\n\n89\n00:03:35.230 --> 00:03:36.640\ncompany that really,\n\n90\n00:03:36.640 --> 00:03:39.520\nyou know, just exemplify those pillars.\n\n91\n00:03:39.520 --> 00:03:42.320\nBut I believe in like kind of that high five factor.\n\n92\n00:03:42.320 --> 00:03:46.550\nIt's like, you know, on a great week, I want to recognize folks for what's\n\n93\n00:03:46.550 --> 00:03:47.400\ngoing on.\n\n94\n00:03:47.400 --> 00:03:49.720\nAnd I think that recognition can be constant.\n\n95\n00:03:49.720 --> 00:03:53.220\nSo it's a big thing for me, you know, and I loved seeing it through Mary Kay\n\n96\n00:03:53.220 --> 00:03:53.680\nand how\n\n97\n00:03:53.680 --> 00:03:59.210\nmuch it meant to my mom was a director and her group, she called them the Jan's\n\n98\n00:03:59.210 --> 00:04:00.000\nJewels.\n\n99\n00:04:00.000 --> 00:04:01.000\nSo there you go.\n\n100\n00:04:01.000 --> 00:04:03.000\nLike it was, it was out there.\n\n101\n00:04:03.000 --> 00:04:04.000\nIt was destiny.\n\n102\n00:04:04.000 --> 00:04:05.000\nIt was destiny.\n\n103\n00:04:05.000 --> 00:04:09.010\nAnd she called them the Jan's Jewels and they would come to my house and we\n\n104\n00:04:09.010 --> 00:04:10.480\nlived in Wisconsin\n\n105\n00:04:10.480 --> 00:04:15.480\nand in our basement, she would have her team meetings and they would start out\n\n106\n00:04:15.480 --> 00:04:16.160\nwith these\n\n107\n00:04:16.160 --> 00:04:21.120\nsongs, Mary Kay songs where they all be clapping and singing.\n\n108\n00:04:21.120 --> 00:04:25.000\nAnd I'd sit on the steps as a little girl and I would hear my mom passing out\n\n109\n00:04:25.000 --> 00:04:25.480\nribbons\n\n110\n00:04:25.480 --> 00:04:31.480\nand awards to her best sales associates and just seeing like the power of\n\n111\n00:04:31.480 --> 00:04:32.920\ngratitude and\n\n112\n00:04:32.920 --> 00:04:38.460\nhow those women on her team, not only were doing it for themselves, but they\n\n113\n00:04:38.460 --> 00:04:39.240\nwanted to\n\n114\n00:04:39.240 --> 00:04:41.680\nsupport each other and lift each other up.\n\n115\n00:04:41.680 --> 00:04:44.880\nAnd it was just a great example for me and it stuck with me of what I wanted to\n\n116\n00:04:44.880 --> 00:04:45.320\ncreate\n\n117\n00:04:45.320 --> 00:04:46.320\nsomeday.\n\n118\n00:04:46.320 --> 00:04:50.250\nI didn't know it at the time, but when I look back, I think now that had a big\n\n119\n00:04:50.250 --> 00:04:50.640\nimprint\n\n120\n00:04:50.640 --> 00:04:51.760\nfor me for sure.\n\n121\n00:04:51.760 --> 00:04:56.440\nI understand you have these kachu Kendra cards.\n\n122\n00:04:56.440 --> 00:04:57.440\nTell me about that.\n\n123\n00:04:57.440 --> 00:04:58.440\nYou've got a lot of good information.\n\n124\n00:04:58.440 --> 00:05:00.600\nYeah, well I dig a little bit in here.\n\n125\n00:05:00.600 --> 00:05:06.430\nWell, so in the olden days when we just had our first store and you know, I\n\n126\n00:05:06.430 --> 00:05:07.520\nwould bring\n\n127\n00:05:07.520 --> 00:05:10.890\nmy business cards with me wherever I went, like, you know, typical, that's what\n\n128\n00:05:10.890 --> 00:05:11.240\nwe did\n\n129\n00:05:11.240 --> 00:05:12.240\nback then.\n\n130\n00:05:12.240 --> 00:05:15.080\nWhen it was before you could just like put your iPhone up to somebody else's\n\n131\n00:05:15.080 --> 00:05:15.440\niPhone\n\n132\n00:05:15.440 --> 00:05:17.040\nand give them your contact.\n\n133\n00:05:17.040 --> 00:05:18.480\nWe weren't quite there yet.\n\n134\n00:05:18.480 --> 00:05:20.200\nTechnology wasn't quite there.\n\n135\n00:05:20.200 --> 00:05:22.240\nSo I would carry my business cards with me.\n\n136\n00:05:22.240 --> 00:05:26.720\nAnd if I saw someone wearing my jewelry, I would first of all get so excited\n\n137\n00:05:26.720 --> 00:05:27.120\nand I\n\n138\n00:05:27.120 --> 00:05:30.390\nwould go up to them and I'd say, oh my gosh, you look so beautiful in your Kend\n\n139\n00:05:30.390 --> 00:05:30.840\nra scotch\n\n140\n00:05:30.840 --> 00:05:31.840\njewelry.\n\n141\n00:05:31.840 --> 00:05:33.200\nThank you for wearing my designs.\n\n142\n00:05:33.200 --> 00:05:36.800\nI'd love for you to get a discount at the store next time you come in.\n\n143\n00:05:36.800 --> 00:05:41.490\nSo I would write, you know, 15% off and I'd sign my name Kendra scot, bring\n\n144\n00:05:41.490 --> 00:05:42.160\nthis card\n\n145\n00:05:42.160 --> 00:05:44.680\nin and they're going to give you a discount.\n\n146\n00:05:44.680 --> 00:05:46.640\nAnd I mean, I would do that all the time.\n\n147\n00:05:46.640 --> 00:05:50.980\nAnd so we finally thought one day, well, what if we created cards and we could\n\n148\n00:05:50.980 --> 00:05:51.480\ngive them\n\n149\n00:05:51.480 --> 00:05:54.040\nto all of our employees to pass out?\n\n150\n00:05:54.040 --> 00:05:59.090\nAnd so they became these little gold square, almost like a, you know, golden\n\n151\n00:05:59.090 --> 00:05:59.960\nticket like\n\n152\n00:05:59.960 --> 00:06:03.830\nWilly Wonka and it said, caught you in your Kendra on it and they'd have a\n\n153\n00:06:03.830 --> 00:06:04.520\ndiscount on\n\n154\n00:06:04.520 --> 00:06:05.520\nthe back.\n\n155\n00:06:05.520 --> 00:06:08.000\nSo now those cards are distributed.\n\n156\n00:06:08.000 --> 00:06:09.960\nAll of my employees nationwide have them.\n\n157\n00:06:09.960 --> 00:06:14.350\nAnd if they see anyone in an airport restaurant in the ladies restroom, if you\n\n158\n00:06:14.350 --> 00:06:15.160\n're wearing\n\n159\n00:06:15.160 --> 00:06:18.050\nKendra scotch and you get caught in your Kendra, you get a caution in your Kend\n\n160\n00:06:18.050 --> 00:06:18.720\nra card and\n\n161\n00:06:18.720 --> 00:06:23.640\nyou definitely get told, thank you for us for supporting our brand.\n\n162\n00:06:23.640 --> 00:06:24.640\nI love it.\n\n163\n00:06:24.640 --> 00:06:28.810\nYou know, I had a conversation once with Colin Powell and he was talking about\n\n164\n00:06:28.810 --> 00:06:29.280\nthe power\n\n165\n00:06:29.280 --> 00:06:30.280\nrecognition.\n\n166\n00:06:30.280 --> 00:06:33.410\nHe says, it shows that somebody's watching and you know, you're recognizing\n\n167\n00:06:33.410 --> 00:06:34.280\nyour customers,\n\n168\n00:06:34.280 --> 00:06:35.280\nwhich I love.\n\n169\n00:06:35.280 --> 00:06:39.810\nI don't want to get to how you started the Kendra Scott brand, but I've known\n\n170\n00:06:39.810 --> 00:06:40.320\nand I've\n\n171\n00:06:40.320 --> 00:06:44.430\nseen where you've written and said that, you know, every day you've seen Kendra\n\n172\n00:06:44.430 --> 00:06:44.860\nScott\n\n173\n00:06:44.860 --> 00:06:47.160\nsales go up, you know, it's been growing.\n\n174\n00:06:47.160 --> 00:06:51.870\nAnd then all of a sudden here you get hit with COVID-19, you know, what were\n\n175\n00:06:51.870 --> 00:06:52.760\nyou thinking\n\n176\n00:06:52.760 --> 00:06:55.640\nthe day that you had to close all your stores?\n\n177\n00:06:55.640 --> 00:06:58.480\nOh, it was, I mean, it was a, it was a tough day.\n\n178\n00:06:58.480 --> 00:07:01.040\nI have to tell you it was the tougher day.\n\n179\n00:07:01.040 --> 00:07:05.240\nDavid, as usually the night before you make those big decisions.\n\n180\n00:07:05.240 --> 00:07:11.070\nAnd I, you know, I remember very distinctly, you know, in during the recession,\n\n181\n00:07:11.070 --> 00:07:11.480\nsitting\n\n182\n00:07:11.480 --> 00:07:14.970\non my kitchen floor, worrying how I was going to pay off the line of credit\n\n183\n00:07:14.970 --> 00:07:15.720\nthat the note\n\n184\n00:07:15.720 --> 00:07:19.320\ngot called because they considered my business high risk.\n\n185\n00:07:19.320 --> 00:07:24.960\nAnd the night before having to go into other banks to ask for help was scarier\n\n186\n00:07:24.960 --> 00:07:25.600\nthan the\n\n187\n00:07:25.600 --> 00:07:27.360\nday itself.\n\n188\n00:07:27.360 --> 00:07:30.550\nBut on the night before we had to make that decision after hours and hours on\n\n189\n00:07:30.550 --> 00:07:31.040\nthe phone\n\n190\n00:07:31.040 --> 00:07:35.200\nwith our board, the thing that was paramount, there was no question to me.\n\n191\n00:07:35.200 --> 00:07:37.360\nWhat the right decision was.\n\n192\n00:07:37.360 --> 00:07:41.500\nAnd the safety and the health of my KS family, my employees and of our\n\n193\n00:07:41.500 --> 00:07:42.880\ncustomers, which we\n\n194\n00:07:42.880 --> 00:07:47.200\nconsider our family was the most important thing.\n\n195\n00:07:47.200 --> 00:07:50.360\nAnd you know, I believe just like I saw what happened coming out of the\n\n196\n00:07:50.360 --> 00:07:51.240\nrecession, that\n\n197\n00:07:51.240 --> 00:07:54.360\nit is the struggle that can make us stronger.\n\n198\n00:07:54.360 --> 00:07:59.960\nAnd sometimes in the scariest, most uncertain times, most magical, incredible\n\n199\n00:07:59.960 --> 00:08:00.800\nthings come\n\n200\n00:08:00.800 --> 00:08:01.800\nout of it.\n\n201\n00:08:01.800 --> 00:08:05.600\nI wouldn't be talking to you today if the recession didn't happen.\n\n202\n00:08:05.600 --> 00:08:08.400\nIt forced me to change my business model.\n\n203\n00:08:08.400 --> 00:08:14.440\nCOVID-19, this pandemic, this crisis is forcing us to get uncomfortable again.\n\n204\n00:08:14.440 --> 00:08:18.580\nAnd sometimes you got to get uncomfortable to make great change.\n\n205\n00:08:18.580 --> 00:08:23.650\nAnd it is causing us to do new and exciting things with our customers that we\n\n206\n00:08:23.650 --> 00:08:24.360\nhadn't really\n\n207\n00:08:24.360 --> 00:08:28.490\nthought about or maybe thought about it, but was like, oh, we'll get to that\n\n208\n00:08:28.490 --> 00:08:28.960\nlater.\n\n209\n00:08:28.960 --> 00:08:32.210\nAnd it's really forced us to connect with our customer in a new and exciting\n\n210\n00:08:32.210 --> 00:08:32.600\nway.\n\n211\n00:08:32.600 --> 00:08:37.040\nAnd so from this challenge, I've learned so much and I'm excited for the future\n\n212\n00:08:37.040 --> 00:08:37.920\n, terrified\n\n213\n00:08:37.920 --> 00:08:39.560\nand excited at the same time.\n\n214\n00:08:39.560 --> 00:08:41.440\nLet's be truthful.\n\n215\n00:08:41.440 --> 00:08:45.660\nSo what advice can you give to others on how to prepare for something\n\n216\n00:08:45.660 --> 00:08:46.720\nunexpected like\n\n217\n00:08:46.720 --> 00:08:47.720\nthis?\n\n218\n00:08:47.720 --> 00:08:50.000\nWell, you can't always prepare, right?\n\n219\n00:08:50.000 --> 00:08:54.500\nI think it's important to run your business to where you have those rainy day\n\n220\n00:08:54.500 --> 00:08:55.160\nfunds.\n\n221\n00:08:55.160 --> 00:08:57.080\nThis is why they call them rainy day funds.\n\n222\n00:08:57.080 --> 00:09:04.140\nIt could be a recession fund, a pandemic fund, a variety of natural disaster\n\n223\n00:09:04.140 --> 00:09:05.000\nfund.\n\n224\n00:09:05.000 --> 00:09:07.880\nBut having some cushion is always helpful, right?\n\n225\n00:09:07.880 --> 00:09:11.660\nHaving great relationships with your banks is a really important thing too,\n\n226\n00:09:11.660 --> 00:09:12.240\nright?\n\n227\n00:09:12.240 --> 00:09:16.300\nAnd to run your business as effectively as you can, but to know that sometimes\n\n228\n00:09:16.300 --> 00:09:17.080\nthe greatest\n\n229\n00:09:17.080 --> 00:09:21.280\nlaid out plans are not always going to come to fruition.\n\n230\n00:09:21.280 --> 00:09:23.640\nAnd that you have to be willing to pivot.\n\n231\n00:09:23.640 --> 00:09:25.320\nYou have to be agile.\n\n232\n00:09:25.320 --> 00:09:27.320\nYou have to be willing to shift.\n\n233\n00:09:27.320 --> 00:09:31.040\nAnd you have to have a team that has that entrepreneurial spirit.\n\n234\n00:09:31.040 --> 00:09:35.960\nNo matter what size you are, right now we are acting like a startup again.\n\n235\n00:09:35.960 --> 00:09:39.640\nAnd it is so fun because we're all rolling our sleeves up every day.\n\n236\n00:09:39.640 --> 00:09:43.400\nWe're collaboratively thinking and we're just making things happen.\n\n237\n00:09:43.400 --> 00:09:47.310\nWe're not waiting for all the red tape and trying to like, oh, let's strategize\n\n238\n00:09:47.310 --> 00:09:47.640\nabout\n\n239\n00:09:47.640 --> 00:09:48.880\nthis for four months.\n\n240\n00:09:48.880 --> 00:09:51.040\nAnd then let's, you know, we're just going.\n\n241\n00:09:51.040 --> 00:09:54.790\nWe're just throwing things up against the wall, seeing what sticks and moving\n\n242\n00:09:54.790 --> 00:09:55.240\non each\n\n243\n00:09:55.240 --> 00:09:56.240\nday.\n\n244\n00:09:56.240 --> 00:09:57.680\nAnd it's such a fun thing to be a part of.\n\n245\n00:09:57.680 --> 00:10:02.090\nSo I think from any business, you know, we are trained that we have to do all\n\n246\n00:10:02.090 --> 00:10:04.240\nthese long-term,\n\n247\n00:10:04.240 --> 00:10:08.200\nyou know, goal setting and planning and budget planning.\n\n248\n00:10:08.200 --> 00:10:09.760\nAnd this is such a great lesson.\n\n249\n00:10:09.760 --> 00:10:14.120\nYou can do your two-year plan, your three-year plan, your five-year plan.\n\n250\n00:10:14.120 --> 00:10:15.120\nIt's great.\n\n251\n00:10:15.120 --> 00:10:18.980\nIt's not not that it's not great to have a plan, but know that that plan very\n\n252\n00:10:18.980 --> 00:10:19.480\nlikely\n\n253\n00:10:19.480 --> 00:10:24.270\ncould completely thrown out the window and you've got to be ready to step in\n\n254\n00:10:24.270 --> 00:10:24.760\nand be\n\n255\n00:10:24.760 --> 00:10:25.760\ncreative.\n\n256\n00:10:25.760 --> 00:10:26.760\nI love that idea.\n\n257\n00:10:26.760 --> 00:10:29.160\nYou got to be ready to pivot, you know, and that's great.\n\n258\n00:10:29.160 --> 00:10:30.360\nAnd you've got to be agile.\n\n259\n00:10:30.360 --> 00:10:33.730\nI think you can't be too like, this is how it is and this is what we said we're\n\n260\n00:10:33.730 --> 00:10:34.080\ngoing\n\n261\n00:10:34.080 --> 00:10:36.400\nto do and it's going to have to be this way.\n\n262\n00:10:36.400 --> 00:10:38.280\nThose businesses aren't going to be able to succeed.\n\n263\n00:10:38.280 --> 00:10:41.890\nYou got to go, okay, this is our new normal today and this is what we're going\n\n264\n00:10:41.890 --> 00:10:42.200\nto do\n\n265\n00:10:42.200 --> 00:10:43.200\ntoday.\n\n266\n00:10:43.200 --> 00:10:47.240\nAnd the way I focus it every day is, where is my customer today?\n\n267\n00:10:47.240 --> 00:10:50.040\nWhat does she need from me and our company?\n\n268\n00:10:50.040 --> 00:10:53.320\nHow can I support her and give her what she needs?\n\n269\n00:10:53.320 --> 00:10:57.800\nAnd I'm thinking of that every single day, not five years out.\n\n270\n00:10:57.800 --> 00:11:01.150\nI'm thinking about where is she in this moment of her life and how can I\n\n271\n00:11:01.150 --> 00:11:02.160\nsupport her?\n\n272\n00:11:02.160 --> 00:11:03.160\nYeah, that's great.\n\n273\n00:11:03.160 --> 00:11:06.800\nYou know, I always think positive energy lifts you up, negative energy brings\n\n274\n00:11:06.800 --> 00:11:07.400\nyou down.\n\n275\n00:11:07.400 --> 00:11:09.880\nYou're renowned for your positive attitude.\n\n276\n00:11:09.880 --> 00:11:14.960\nHas it been hard for you with all this gloom and doom and this crazy time?\n\n277\n00:11:14.960 --> 00:11:16.960\nHas it been hard for you to stay up?\n\n278\n00:11:16.960 --> 00:11:20.070\nYou know, there, I think there's, you know, definitely ups and downs and there\n\n279\n00:11:20.070 --> 00:11:20.480\n's peaks\n\n280\n00:11:20.480 --> 00:11:21.480\nand valleys.\n\n281\n00:11:21.480 --> 00:11:25.910\nI am an eternal optimist and anybody that knows me knows that I'm always\n\n282\n00:11:25.910 --> 00:11:26.760\nlooking for\n\n283\n00:11:26.760 --> 00:11:30.800\nthe silver lining in the darkest of days.\n\n284\n00:11:30.800 --> 00:11:34.880\nBut there have been days that, you know, I have gone to bed at night and my\n\n285\n00:11:34.880 --> 00:11:35.520\nheart has\n\n286\n00:11:35.520 --> 00:11:38.520\nbeen heavy because of some of, you know, the decisions we're making within our\n\n287\n00:11:38.520 --> 00:11:38.920\ncompany\n\n288\n00:11:38.920 --> 00:11:42.390\nare trying to figure out how we can support our employees while we're working\n\n289\n00:11:42.390 --> 00:11:42.840\nthrough\n\n290\n00:11:42.840 --> 00:11:44.440\ngetting our stores reopened.\n\n291\n00:11:44.440 --> 00:11:50.080\nAnd, you know, those moments are real and they're real because I love and care\n\n292\n00:11:50.080 --> 00:11:51.360\nfor my employees,\n\n293\n00:11:51.360 --> 00:11:53.240\nif they're my family.\n\n294\n00:11:53.240 --> 00:11:57.770\nAnd you know, when you are the leader of a company, those families matter to me\n\n295\n00:11:57.770 --> 00:11:57.840\n.\n\n296\n00:11:57.840 --> 00:12:02.210\nAnd so, you know, I think, but that's where the optimism comes in because if I\n\n297\n00:12:02.210 --> 00:12:02.720\nlet the\n\n298\n00:12:02.720 --> 00:12:07.520\ndoom and gloom and the knots in my stomach and my heavy heart take over, I won\n\n299\n00:12:07.520 --> 00:12:08.080\n't be able\n\n300\n00:12:08.080 --> 00:12:11.160\nto get up and do what I need to do to get this company where it needs to be so\n\n301\n00:12:11.160 --> 00:12:11.680\nall those\n\n302\n00:12:11.680 --> 00:12:16.200\npeople can live a happy life and a successful life with their families.\n\n303\n00:12:16.200 --> 00:12:19.090\nAnd that's what drives me to jump out of bed and go, \"Okay, let's take this\n\n304\n00:12:19.090 --> 00:12:20.000\ntiger on.\"\n\n305\n00:12:20.000 --> 00:12:21.000\nGreat.\n\n306\n00:12:21.000 --> 00:12:23.800\nI'd like to go back to your childhood again.\n\n307\n00:12:23.800 --> 00:12:28.620\nCan you tell me a story about a person when you were a kid that really\n\n308\n00:12:28.620 --> 00:12:29.880\ninfluenced you\n\n309\n00:12:29.880 --> 00:12:31.600\nthe most on who you are today?\n\n310\n00:12:31.600 --> 00:12:35.160\nI mean, did you have that special person that you looked up to?\n\n311\n00:12:35.160 --> 00:12:36.840\nI had a lot of special people.\n\n312\n00:12:36.840 --> 00:12:42.330\nI'm lucky, but I would say my mother and my aunt were two influential women in\n\n313\n00:12:42.330 --> 00:12:42.920\nmy life\n\n314\n00:12:42.920 --> 00:12:47.880\nwatching my mom be a, you know, housewife and a mother and then build this\n\n315\n00:12:47.880 --> 00:12:48.760\nbusiness out\n\n316\n00:12:48.760 --> 00:12:54.800\nof our like laundry room through Mary Kay was so inspiring to see that and to\n\n317\n00:12:54.800 --> 00:12:55.540\nsee how\n\n318\n00:12:55.540 --> 00:13:00.760\nshe's still balanced being a wonderful mother, a caring mother, but she was had\n\n319\n00:13:00.760 --> 00:13:01.480\nthis fire\n\n320\n00:13:01.480 --> 00:13:04.720\nin her to do something and have her own career.\n\n321\n00:13:04.720 --> 00:13:06.200\nSo I really admired that.\n\n322\n00:13:06.200 --> 00:13:10.040\nAnd then where I grew up was in a little small town in Wisconsin.\n\n323\n00:13:10.040 --> 00:13:14.280\nAnd so it's not exactly the fashion like Mecca of the world, David.\n\n324\n00:13:14.280 --> 00:13:15.280\nOkay.\n\n325\n00:13:15.280 --> 00:13:16.280\nLet's just say.\n\n326\n00:13:16.280 --> 00:13:18.600\nFashion is everywhere, you know?\n\n327\n00:13:18.600 --> 00:13:20.600\nYou're opening all these stores.\n\n328\n00:13:20.600 --> 00:13:21.600\nRight.\n\n329\n00:13:21.600 --> 00:13:23.600\nBut back then it really wasn't.\n\n330\n00:13:23.600 --> 00:13:27.700\nAnd my aunt lived in Milwaukee, Wisconsin and she worked for a department store\n\n331\n00:13:27.700 --> 00:13:28.120\nand she\n\n332\n00:13:28.120 --> 00:13:29.720\nwas a fashion director.\n\n333\n00:13:29.720 --> 00:13:33.750\nSo that allowed her to go to all the fashion shows in Milan, in Paris and you\n\n334\n00:13:33.750 --> 00:13:34.320\nname it New\n\n335\n00:13:34.320 --> 00:13:35.520\nYork City.\n\n336\n00:13:35.520 --> 00:13:40.610\nAnd she would come back with all the pictures on little slides of these shows\n\n337\n00:13:40.610 --> 00:13:41.080\nand she would\n\n338\n00:13:41.080 --> 00:13:42.480\nshow them to me in our basement.\n\n339\n00:13:42.480 --> 00:13:46.720\nWe'd be clicking through and she had to teach me then how to trend forecast.\n\n340\n00:13:46.720 --> 00:13:50.870\nThat was her job as fashion director and how to take these really elaborate\n\n341\n00:13:50.870 --> 00:13:52.080\ncouture shows\n\n342\n00:13:52.080 --> 00:13:56.520\nand designs, but make them work for the real woman.\n\n343\n00:13:56.520 --> 00:13:59.810\nThe woman who's going to the grocery store, picking up her kids at school and\n\n344\n00:13:59.810 --> 00:14:00.280\nheading\n\n345\n00:14:00.280 --> 00:14:02.320\nto the, you know, her office.\n\n346\n00:14:02.320 --> 00:14:05.880\nAnd I think that was such a eye opener for me.\n\n347\n00:14:05.880 --> 00:14:10.500\nAnd when I would go in her closet and wear these clothes that she had and put\n\n348\n00:14:10.500 --> 00:14:10.960\non her,\n\n349\n00:14:10.960 --> 00:14:15.160\nyou know, jewelry and all the things, I didn't feel like a girl from a little\n\n350\n00:14:15.160 --> 00:14:16.640\ntown in Wisconsin.\n\n351\n00:14:16.640 --> 00:14:20.920\nI felt like, you know, a superstar, a runway model.\n\n352\n00:14:20.920 --> 00:14:27.120\nAnd in that moment, I realized fashion was magic and it can transform how you\n\n353\n00:14:27.120 --> 00:14:27.520\nfeel.\n\n354\n00:14:27.520 --> 00:14:31.440\nAnd I knew that that was something that I wanted to be a part of.\n\n355\n00:14:31.440 --> 00:14:34.920\nTell me about your first experience, the hat box, Brandon.\n\n356\n00:14:34.920 --> 00:14:36.480\nTell me about that.\n\n357\n00:14:36.480 --> 00:14:38.040\nEveryone loves to talk about the hat box.\n\n358\n00:14:38.040 --> 00:14:39.240\nI love it too.\n\n359\n00:14:39.240 --> 00:14:41.280\nYou know, why do they love to talk about it?\n\n360\n00:14:41.280 --> 00:14:44.170\nBecause, you know, I think it's important to talk about the failures that\n\n361\n00:14:44.170 --> 00:14:44.880\npeople have.\n\n362\n00:14:44.880 --> 00:14:52.560\nI think it was the greatest education that I could have ever gotten in retail.\n\n363\n00:14:52.560 --> 00:14:56.760\nI started that business when I was 19 years old.\n\n364\n00:14:56.760 --> 00:14:58.320\nAnd that was not the plan.\n\n365\n00:14:58.320 --> 00:15:03.300\nThe plan for me clearly with my parents was to go to college and get a good\n\n366\n00:15:03.300 --> 00:15:04.560\neducation.\n\n367\n00:15:04.560 --> 00:15:10.450\nAnd when I said that I was going to take some time off to pursue opening a hat\n\n368\n00:15:10.450 --> 00:15:11.600\nstore, my\n\n369\n00:15:11.600 --> 00:15:17.540\nparents at first were like, okay, but surprisingly supported me during that\n\n370\n00:15:17.540 --> 00:15:18.560\ndecision.\n\n371\n00:15:18.560 --> 00:15:21.520\nMy stepfather was battling brain cancer.\n\n372\n00:15:21.520 --> 00:15:25.720\nAnd I had met so many men and women that were going through chemotherapy,\n\n373\n00:15:25.720 --> 00:15:27.440\nlosing their hair.\n\n374\n00:15:27.440 --> 00:15:30.980\nAnd it inspired me because there weren't a lot of great headwear options that\n\n375\n00:15:30.980 --> 00:15:32.240\nwere comfortable\n\n376\n00:15:32.240 --> 00:15:35.520\nand still made people feel good about themselves.\n\n377\n00:15:35.520 --> 00:15:39.000\nAnd it just inspired me to want to try to do something.\n\n378\n00:15:39.000 --> 00:15:42.320\nAnd so that's how the hat company got started.\n\n379\n00:15:42.320 --> 00:15:46.840\nAnd I had every intention, honestly, of going back to school someday.\n\n380\n00:15:46.840 --> 00:15:49.640\nI really did believe it was a break.\n\n381\n00:15:49.640 --> 00:15:53.320\nBut the hat box, it was five years, I ran this little store.\n\n382\n00:15:53.320 --> 00:15:57.040\nAnd I realized I couldn't just do hats for people undergoing chemotherapy.\n\n383\n00:15:57.040 --> 00:15:58.280\nI made hats for everybody.\n\n384\n00:15:58.280 --> 00:16:03.840\nI mean, you needed a wedding hat, Kentucky Derby, Jester hat, Top hat, Fedora.\n\n385\n00:16:03.840 --> 00:16:05.160\nI mean, I had it.\n\n386\n00:16:05.160 --> 00:16:06.480\nAnd I had this big vision, David.\n\n387\n00:16:06.480 --> 00:16:09.880\nI was going to open hat stores across the country.\n\n388\n00:16:09.880 --> 00:16:13.880\nEveryone was going to wear hats again, like it was 1940.\n\n389\n00:16:13.880 --> 00:16:15.240\nThat did not happen.\n\n390\n00:16:15.240 --> 00:16:18.920\nNo one wears, I mean, people do wear hats, but not like 1940.\n\n391\n00:16:18.920 --> 00:16:23.040\nAnd unfortunately, after five years of trying to make this little store work, I\n\n392\n00:16:23.040 --> 00:16:23.760\nworked seven\n\n393\n00:16:23.760 --> 00:16:26.040\ndays a week, open to clothes.\n\n394\n00:16:26.040 --> 00:16:27.040\nI couldn't do it.\n\n395\n00:16:27.040 --> 00:16:29.720\nI was buying other designers hats.\n\n396\n00:16:29.720 --> 00:16:34.840\nI was getting basically a keystone, which 50% margin with overhead and\n\n397\n00:16:34.840 --> 00:16:36.160\neverything else.\n\n398\n00:16:36.160 --> 00:16:39.200\nIt just, you couldn't make the numbers work.\n\n399\n00:16:39.200 --> 00:16:40.240\nBut I look at that.\n\n400\n00:16:40.240 --> 00:16:44.650\nAnd when I had to close that store and my stepfather passed away right before\n\n401\n00:16:44.650 --> 00:16:45.960\nthat happened, I\n\n402\n00:16:45.960 --> 00:16:49.040\njust felt like in that moment that I was the biggest failure.\n\n403\n00:16:49.040 --> 00:16:50.400\nI had let him down.\n\n404\n00:16:50.400 --> 00:16:55.800\nI'd let my family down because I didn't pursue my college education.\n\n405\n00:16:55.800 --> 00:16:58.040\nAll of those things going through me.\n\n406\n00:16:58.040 --> 00:17:04.930\nAnd I realized when I started Kendra Scott that that store taught me retail 101\n\n407\n00:17:04.930 --> 00:17:05.600\nbetter\n\n408\n00:17:05.600 --> 00:17:09.880\nthan any college education could have given me, I understood margin.\n\n409\n00:17:09.880 --> 00:17:11.160\nI understood overhead.\n\n410\n00:17:11.160 --> 00:17:13.960\nI understood what it felt like to make payroll.\n\n411\n00:17:13.960 --> 00:17:16.200\nI understood how to handle a float.\n\n412\n00:17:16.200 --> 00:17:17.200\nRight?\n\n413\n00:17:17.200 --> 00:17:21.930\nLike, there were so many things I learned that you couldn't read in the\n\n414\n00:17:21.930 --> 00:17:23.160\ntextbook that could\n\n415\n00:17:23.160 --> 00:17:24.800\nhave ever gotten me to that place.\n\n416\n00:17:24.800 --> 00:17:28.590\nAnd so I think it's an important thing for entrepreneurs to share their failure\n\n417\n00:17:28.590 --> 00:17:29.080\nstories\n\n418\n00:17:29.080 --> 00:17:32.600\nbecause they are the bridge to their success.\n\n419\n00:17:32.600 --> 00:17:36.360\nAnd I don't know any entrepreneur that hasn't failed miserably.\n\n420\n00:17:36.360 --> 00:17:40.600\nLike, I mean, most of it, it's pretty miserable fail that haven't said they're\n\n421\n00:17:40.600 --> 00:17:41.520\nso thankful.\n\n422\n00:17:41.520 --> 00:17:46.440\nNow it didn't in the time it felt horrible in the moment.\n\n423\n00:17:46.440 --> 00:17:49.160\nBut now it's like one of the greatest gifts I was ever given.\n\n424\n00:17:49.160 --> 00:17:53.800\nI have to ask you though, five years, pour in your life into it.\n\n425\n00:17:53.800 --> 00:17:58.560\nObviously for emotional reasons, what was your immediate next step?\n\n426\n00:17:58.560 --> 00:18:01.720\nI mean, how'd you pick yourself up the next day?\n\n427\n00:18:01.720 --> 00:18:02.960\nClose the business.\n\n428\n00:18:02.960 --> 00:18:03.960\nWhat happens?\n\n429\n00:18:03.960 --> 00:18:05.120\nIt was devastating.\n\n430\n00:18:05.120 --> 00:18:07.760\nI mean, I can't tell you that it wasn't.\n\n431\n00:18:07.760 --> 00:18:13.760\nBut I had to go get a job, David, because I had rent to pay and I had bills I\n\n432\n00:18:13.760 --> 00:18:14.320\nhad to\n\n433\n00:18:14.320 --> 00:18:16.560\npay and I love my mom.\n\n434\n00:18:16.560 --> 00:18:18.600\nBut I didn't want to move back in with my mom.\n\n435\n00:18:18.600 --> 00:18:19.600\nOkay?\n\n436\n00:18:19.600 --> 00:18:23.000\nThat would have been real all time low.\n\n437\n00:18:23.000 --> 00:18:25.920\nSo I'm like, I got to pay for my little one bedroom apartment.\n\n438\n00:18:25.920 --> 00:18:27.920\nI got to pay for my food.\n\n439\n00:18:27.920 --> 00:18:29.080\nSo I went and got a job.\n\n440\n00:18:29.080 --> 00:18:30.800\nI mean, that's what you got to do, right?\n\n441\n00:18:30.800 --> 00:18:35.940\nAnd so I got a job with a travel company that had a magazine associated with it\n\n442\n00:18:35.940 --> 00:18:36.640\n, a travel\n\n443\n00:18:36.640 --> 00:18:37.880\nmagazine.\n\n444\n00:18:37.880 --> 00:18:41.240\nAnd I worked there and traveled.\n\n445\n00:18:41.240 --> 00:18:46.510\nBut what was funny is in my hat store, I was making jewelry as just a side\n\n446\n00:18:46.510 --> 00:18:47.360\nthing.\n\n447\n00:18:47.360 --> 00:18:52.080\nAnd I would put it in the shelves and the day I'd put it in, it would sell out.\n\n448\n00:18:52.080 --> 00:18:57.050\nSo the answer to my future was right in front of me, but I was so blinded that\n\n449\n00:18:57.050 --> 00:18:57.640\nthe hat\n\n450\n00:18:57.640 --> 00:18:59.040\nthing had to work.\n\n451\n00:18:59.040 --> 00:19:04.100\nI wasn't paying attention to what was working until I closed the store and\n\n452\n00:19:04.100 --> 00:19:05.280\ncustomers from\n\n453\n00:19:05.280 --> 00:19:07.040\nthe hat box are calling me Kendra.\n\n454\n00:19:07.040 --> 00:19:10.040\nDo you think they're calling me for the hats, David?\n\n455\n00:19:10.040 --> 00:19:11.960\nNo, they were calling me for the jewelry.\n\n456\n00:19:11.960 --> 00:19:15.750\nThey're like, I want to pair earrings to match the necklace I bought from you\n\n457\n00:19:15.750 --> 00:19:16.120\nor I'd love\n\n458\n00:19:16.120 --> 00:19:18.680\nto buy a necklace for my sister's birthday.\n\n459\n00:19:18.680 --> 00:19:25.390\nSo I was buying stones and supplies and making jewelry for my hat box customers\n\n460\n00:19:25.390 --> 00:19:26.720\nand realizing\n\n461\n00:19:26.720 --> 00:19:29.280\nthat's what they missed the most.\n\n462\n00:19:29.280 --> 00:19:32.770\nThis little just side thing that I kind of threw in there on the side because I\n\n463\n00:19:32.770 --> 00:19:33.280\nenjoyed\n\n464\n00:19:33.280 --> 00:19:34.280\nmaking it.\n\n465\n00:19:34.280 --> 00:19:38.240\nI thought it was just for me, it was kind of like a fun thing, a release.\n\n466\n00:19:38.240 --> 00:19:41.280\nI'd like to go home and work with my hands.\n\n467\n00:19:41.280 --> 00:19:44.680\nAnd I loved colored gemstones and I couldn't find them anywhere.\n\n468\n00:19:44.680 --> 00:19:45.680\nSo I was always buying up.\n\n469\n00:19:45.680 --> 00:19:47.680\nHow'd you learn how to make jewelry like that?\n\n470\n00:19:47.680 --> 00:19:49.440\nI mean, how'd you learn how to do it?\n\n471\n00:19:49.440 --> 00:19:53.180\nYou're going to laugh at this because I laugh at it too because I got told so\n\n472\n00:19:53.180 --> 00:19:53.680\nmany times\n\n473\n00:19:53.680 --> 00:19:56.120\nwhen I started Kendra Scott.\n\n474\n00:19:56.120 --> 00:19:57.120\nWhat school did you go to?\n\n475\n00:19:57.120 --> 00:19:58.720\nDid you go to Parsons, FIT?\n\n476\n00:19:58.720 --> 00:19:59.720\nWhere did you go?\n\n477\n00:19:59.720 --> 00:20:06.020\nAnd I'm like, well, I took a bead class at the local bead shop in Austin, Texas\n\n478\n00:20:06.020 --> 00:20:06.400\n.\n\n479\n00:20:06.400 --> 00:20:11.920\nThen I took a class at the community college, a jewelry making class.\n\n480\n00:20:11.920 --> 00:20:13.120\nAnd that's what I did.\n\n481\n00:20:13.120 --> 00:20:14.360\nAnd I literally would.\n\n482\n00:20:14.360 --> 00:20:18.210\nWe didn't have the ability even then to go on YouTube and there wasn't any of\n\n483\n00:20:18.210 --> 00:20:18.840\nthis stuff\n\n484\n00:20:18.840 --> 00:20:19.840\nto watch it.\n\n485\n00:20:19.840 --> 00:20:24.430\nSo yeah, I took little bead classes at the local bead store and learned how to\n\n486\n00:20:24.430 --> 00:20:25.120\nwire wrap\n\n487\n00:20:25.120 --> 00:20:29.680\nand learn how to do basic things and really just kind of self taught myself.\n\n488\n00:20:29.680 --> 00:20:34.840\nI'd sometimes even break apart pieces of different jewelry to kind of see how\n\n489\n00:20:34.840 --> 00:20:35.400\nthey were\n\n490\n00:20:35.400 --> 00:20:37.960\nmade, what technique they used.\n\n491\n00:20:37.960 --> 00:20:40.240\nSo I could try to figure out how to replicate it.\n\n492\n00:20:40.240 --> 00:20:41.240\nWow.\n\n493\n00:20:41.240 --> 00:20:45.320\nSo this hat box, there's a real silver lining in the cloud there.\n\n494\n00:20:45.320 --> 00:20:50.000\nYou get the marketing 101 of retail and fashion.\n\n495\n00:20:50.000 --> 00:20:53.350\nAnd then you discover that you've really got a product line that people really,\n\n496\n00:20:53.350 --> 00:20:53.720\nreally\n\n497\n00:20:53.720 --> 00:20:54.720\nlove.\n\n498\n00:20:54.720 --> 00:20:55.720\nThat's fantastic.\n\n499\n00:20:55.720 --> 00:21:00.020\nYou know, most entrepreneurs, and I want to talk to you about your institute\n\n500\n00:21:00.020 --> 00:21:00.400\nthat you\n\n501\n00:21:00.400 --> 00:21:04.870\nhave at Texas later here, but most entrepreneurs, they intuitively solve\n\n502\n00:21:04.870 --> 00:21:06.120\nproblems that exist\n\n503\n00:21:06.120 --> 00:21:07.640\nin a category.\n\n504\n00:21:07.640 --> 00:21:12.680\nYou know, what problem did you solve when you launched the Kendra Scott brand?\n\n505\n00:21:12.680 --> 00:21:16.560\nYou know, I think at the time you have to look for the white space in any\n\n506\n00:21:16.560 --> 00:21:17.320\nmarket that\n\n507\n00:21:17.320 --> 00:21:18.320\nyou're looking at.\n\n508\n00:21:18.320 --> 00:21:23.000\nAgain, after the hat box, I have to be honest, I wasn't thinking big like that.\n\n509\n00:21:23.000 --> 00:21:28.200\nI was just thinking about, well, what do I want that I can't find?\n\n510\n00:21:28.200 --> 00:21:30.520\nAnd I wanted beautiful color.\n\n511\n00:21:30.520 --> 00:21:35.280\nI loved semi-precious stones, but I couldn't afford what was out there.\n\n512\n00:21:35.280 --> 00:21:39.690\nSo I thought I could make a beautiful jewelry line of handcrafted jewelry in\n\n513\n00:21:39.690 --> 00:21:40.600\nthis gorgeous\n\n514\n00:21:40.600 --> 00:21:45.320\nsemi-precious stones, but attainable in price for a woman.\n\n515\n00:21:45.320 --> 00:21:46.760\nI think she would like that.\n\n516\n00:21:46.760 --> 00:21:50.520\nAnd it was really because that's what I wanted, what I desired.\n\n517\n00:21:50.520 --> 00:21:52.440\nYou know, and I think that was the magic.\n\n518\n00:21:52.440 --> 00:21:56.320\nThere was costume kind of, you know, Claire's boutique, very low-end.\n\n519\n00:21:56.320 --> 00:22:00.870\nAnd then there was bridge jewelry, which is sterling silver, more expensive,\n\n520\n00:22:00.870 --> 00:22:01.200\nbut that\n\n521\n00:22:01.200 --> 00:22:06.160\nfashion jewelry category, there was a missing piece that bridged fashion to the\n\n522\n00:22:06.160 --> 00:22:07.160\nbridge jewelry\n\n523\n00:22:07.160 --> 00:22:08.320\nto find.\n\n524\n00:22:08.320 --> 00:22:12.480\nAnd I really felt like there was an opportunity there to do something special.\n\n525\n00:22:12.480 --> 00:22:16.400\nAnd the other big thing that once I kind of got going, I realized everybody was\n\n526\n00:22:16.400 --> 00:22:16.800\nusing\n\n527\n00:22:16.800 --> 00:22:21.640\nthe same shaped stones, just buying from stone vendors and reworking it.\n\n528\n00:22:21.640 --> 00:22:27.160\nSo no one had a unique identity in the fashion jewelry category.\n\n529\n00:22:27.160 --> 00:22:31.010\nAnd where I thought I wanted to be recognizable, I wanted to be when you saw my\n\n530\n00:22:31.010 --> 00:22:31.640\njewelry, you\n\n531\n00:22:31.640 --> 00:22:33.080\nknew it was me.\n\n532\n00:22:33.080 --> 00:22:34.320\nAnd so how could I do that?\n\n533\n00:22:34.320 --> 00:22:35.600\nAnd I kept thinking about it.\n\n534\n00:22:35.600 --> 00:22:37.080\nAnd it was shape and color.\n\n535\n00:22:37.080 --> 00:22:41.950\nIf I could play with enhancing natural stone and doing really cool color and\n\n536\n00:22:41.950 --> 00:22:42.800\nthen giving\n\n537\n00:22:42.800 --> 00:22:47.200\nunique shape that we owned that shape, that could be a way to do it.\n\n538\n00:22:47.200 --> 00:22:53.280\nAnd so in 2008, we introduced our first custom shape.\n\n539\n00:22:53.280 --> 00:22:56.730\nAnd that's when you kind of start seeing the business really taking off when\n\n540\n00:22:56.730 --> 00:22:57.280\npeople were\n\n541\n00:22:57.280 --> 00:23:01.000\nrecognizing it and saying, are those Kendra Scott?\n\n542\n00:23:01.000 --> 00:23:03.080\nThat was an exciting moment.\n\n543\n00:23:03.080 --> 00:23:07.280\nIt's interesting, though, you know, I talked about entrepreneurs, intuition.\n\n544\n00:23:07.280 --> 00:23:11.880\nYou wanted to create something, you said that I want that I can't find.\n\n545\n00:23:11.880 --> 00:23:13.800\nSo you solved the problem.\n\n546\n00:23:13.800 --> 00:23:16.520\nAnd there are just a lot of people like you out there.\n\n547\n00:23:16.520 --> 00:23:19.640\nYou didn't know how big the market was, but that's how you went after it.\n\n548\n00:23:19.640 --> 00:23:21.760\nWell, and that's what, you know, you look at Sarah Blakely.\n\n549\n00:23:21.760 --> 00:23:23.200\nI mean, that's exactly what she did.\n\n550\n00:23:23.200 --> 00:23:25.600\nShe needed this for herself.\n\n551\n00:23:25.600 --> 00:23:27.640\nAnd it's, you know, it's the same kind of thing.\n\n552\n00:23:27.640 --> 00:23:32.120\nA lot of times it's what you want that you can't find.\n\n553\n00:23:32.120 --> 00:23:35.460\nI promise you, there's a whole lot of other folks out there that feel the same\n\n554\n00:23:35.460 --> 00:23:35.880\nway you\n\n555\n00:23:35.880 --> 00:23:36.880\ndo.\n\n556\n00:23:36.880 --> 00:23:42.360\nAnd then carrying this a step further, you go into the retail store.\n\n557\n00:23:42.360 --> 00:23:44.320\nYou get into bricks and mortar.\n\n558\n00:23:44.320 --> 00:23:46.240\nWhat problem did you solve there?\n\n559\n00:23:46.240 --> 00:23:53.200\nSo this is interesting because before 2010, so 2002, I started the company.\n\n560\n00:23:53.200 --> 00:23:55.000\nSo that here we are eight years in.\n\n561\n00:23:55.000 --> 00:23:59.330\nAnd I was just selling to other retailers because after the half-box, David, I\n\n562\n00:23:59.330 --> 00:23:59.800\nwas not\n\n563\n00:23:59.800 --> 00:24:01.240\ngoing back into retail.\n\n564\n00:24:01.240 --> 00:24:02.240\nThat was scary.\n\n565\n00:24:02.240 --> 00:24:03.560\nThat was so scary.\n\n566\n00:24:03.560 --> 00:24:05.800\nI had never wanted to go through that again.\n\n567\n00:24:05.800 --> 00:24:10.240\nSo I was just going along, building the business, but very gradually.\n\n568\n00:24:10.240 --> 00:24:13.960\nNo, nothing leaps and bounds, no lightning and a bottle growth.\n\n569\n00:24:13.960 --> 00:24:17.830\nAnd then recession hit and I realized all my eggs were in the basket of these\n\n570\n00:24:17.830 --> 00:24:18.240\nbuyers\n\n571\n00:24:18.240 --> 00:24:20.520\nthat worked for these other retailers.\n\n572\n00:24:20.520 --> 00:24:24.200\nAnd then I didn't have a direct connection to my customer.\n\n573\n00:24:24.200 --> 00:24:27.290\nAnd I was the one, I wanted to speak with her directly and I didn't want\n\n574\n00:24:27.290 --> 00:24:27.960\nanybody else\n\n575\n00:24:27.960 --> 00:24:29.600\nto do that for me.\n\n576\n00:24:29.600 --> 00:24:33.280\nAnd the recession really shifted how we run our business.\n\n577\n00:24:33.280 --> 00:24:37.960\nAnd in 2010, we launched first our e-commerce website.\n\n578\n00:24:37.960 --> 00:24:39.920\nWe launched an interactive experience.\n\n579\n00:24:39.920 --> 00:24:44.190\nAnd again, I was like, I want to be able to go in and bring a shirt or a dress\n\n580\n00:24:44.190 --> 00:24:44.960\nand say,\n\n581\n00:24:44.960 --> 00:24:47.960\nI need a pair of earrings to match this tonight.\n\n582\n00:24:47.960 --> 00:24:51.880\nAnd if you did that in my design studio, you'd see all of our stones and our\n\n583\n00:24:51.880 --> 00:24:52.600\ndesigners\n\n584\n00:24:52.600 --> 00:24:56.530\nwould just put in stones in the settings and they'd go out to dinner with their\n\n585\n00:24:56.530 --> 00:24:57.080\nfriends\n\n586\n00:24:57.080 --> 00:24:58.440\nwith a custom pair of earrings.\n\n587\n00:24:58.440 --> 00:25:03.720\nSo we created Color Bar, which was a customization thing that wasn't out there.\n\n588\n00:25:03.720 --> 00:25:06.480\nNobody was, this is before Nike ID launch their stuff.\n\n589\n00:25:06.480 --> 00:25:10.960\nI mean, this was very, very new and coming out of the recession, I was able to\n\n590\n00:25:10.960 --> 00:25:11.280\nbuild\n\n591\n00:25:11.280 --> 00:25:15.640\nthis in Austin digitally for like the biggest bargain in the world.\n\n592\n00:25:15.640 --> 00:25:18.500\nAnd let me tell you, I tell our IT people this all the time when they show me\n\n593\n00:25:18.500 --> 00:25:19.080\nthe bills.\n\n594\n00:25:19.080 --> 00:25:23.200\nAnd I'm like, I rub it in on what I created the first Color Bar with.\n\n595\n00:25:23.200 --> 00:25:30.480\nBut that was really innovative in that time to do something like that.\n\n596\n00:25:30.480 --> 00:25:35.110\nAnd then I opened our first retail store, not again thinking we would open\n\n597\n00:25:35.110 --> 00:25:35.840\nretail stores\n\n598\n00:25:35.840 --> 00:25:37.080\nall over the country.\n\n599\n00:25:37.080 --> 00:25:41.980\nI really wanted it more as a laboratory to learn, to listen to our customer,\n\n600\n00:25:41.980 --> 00:25:42.560\nhave that\n\n601\n00:25:42.560 --> 00:25:44.040\ninteraction with her.\n\n602\n00:25:44.040 --> 00:25:47.600\nBut if I was going to do it, I wanted to do it my way.\n\n603\n00:25:47.600 --> 00:25:51.400\nAnd I thought about, okay, from a customer perspective, what do I love about\n\n604\n00:25:51.400 --> 00:25:52.040\ngoing into\n\n605\n00:25:52.040 --> 00:25:53.960\njewelry stores?\n\n606\n00:25:53.960 --> 00:25:54.960\nGuess what?\n\n607\n00:25:54.960 --> 00:25:57.280\nI didn't love anything about going into jewelry stores before.\n\n608\n00:25:57.280 --> 00:25:59.480\nI hated going into a jewelry store.\n\n609\n00:25:59.480 --> 00:26:02.240\nI immediately felt like I was being judged.\n\n610\n00:26:02.240 --> 00:26:03.680\nEverything was under glass.\n\n611\n00:26:03.680 --> 00:26:07.070\nIf you asked for something and you didn't want it and they put it away, they\n\n612\n00:26:07.070 --> 00:26:07.520\nkind of\n\n613\n00:26:07.520 --> 00:26:11.400\nlike, I felt like I was embarrassed to ask for something else to see.\n\n614\n00:26:11.400 --> 00:26:16.080\nIt was a very intimidating experience in shopping for jewelry.\n\n615\n00:26:16.080 --> 00:26:19.040\nSo what I wanted to do was take all the scary away.\n\n616\n00:26:19.040 --> 00:26:21.280\nI wanted to make it fun, inviting.\n\n617\n00:26:21.280 --> 00:26:25.980\nI wanted the jewelry really displayed where people could touch and feel it, try\n\n618\n00:26:25.980 --> 00:26:26.560\nit on.\n\n619\n00:26:26.560 --> 00:26:29.400\nThere was nobody looking at them, judgey, the opposite.\n\n620\n00:26:29.400 --> 00:26:33.160\nWe'd hand you a glass of champagne and a cupcake on your way in.\n\n621\n00:26:33.160 --> 00:26:37.000\nWe had the color bar where you could interact and we would be visiting with you\n\n622\n00:26:37.000 --> 00:26:37.200\n.\n\n623\n00:26:37.200 --> 00:26:41.740\nWe were very event driven, always having some type of event for community,\n\n624\n00:26:41.740 --> 00:26:42.520\nservice.\n\n625\n00:26:42.520 --> 00:26:46.400\nAnd so it really was this, it was a party in a store.\n\n626\n00:26:46.400 --> 00:26:48.920\nI mean, it was so fun and it was a community.\n\n627\n00:26:48.920 --> 00:26:52.040\nIt was an experience that made people happy.\n\n628\n00:26:52.040 --> 00:26:57.280\nAnd from day one, I believed that the most important thing we could do is\n\n629\n00:26:57.280 --> 00:26:58.640\ncreate a connection\n\n630\n00:26:58.640 --> 00:27:00.440\nwith our customer.\n\n631\n00:27:00.440 --> 00:27:02.520\nThat the transaction will follow.\n\n632\n00:27:02.520 --> 00:27:07.770\nAnd the goal of the store was let's connect, let's learn from our customer, let\n\n633\n00:27:07.770 --> 00:27:08.240\n's find\n\n634\n00:27:08.240 --> 00:27:11.600\nout what she loves, what she hates, what she wants more of.\n\n635\n00:27:11.600 --> 00:27:15.080\nAnd then let's utilize that to build the best collections we can.\n\n636\n00:27:15.080 --> 00:27:19.490\nWhat happened was that experience was so magical that we would have lines down\n\n637\n00:27:19.490 --> 00:27:20.800\nthe block to\n\n638\n00:27:20.800 --> 00:27:21.800\nget in.\n\n639\n00:27:21.800 --> 00:27:24.280\nIt was like they were releasing a new iPhone or something.\n\n640\n00:27:24.280 --> 00:27:26.320\nI mean, it was unbelievable.\n\n641\n00:27:26.320 --> 00:27:29.600\nPeople could not wait to get into our stores.\n\n642\n00:27:29.600 --> 00:27:34.560\nAnd that's when we knew, okay, maybe this isn't just a one store situation.\n\n643\n00:27:34.560 --> 00:27:37.280\nMaybe we could bring this to other places.\n\n644\n00:27:37.280 --> 00:27:42.350\nSo you totally disrupted the category before people were talking about\n\n645\n00:27:42.350 --> 00:27:43.520\ndisruption.\n\n646\n00:27:43.520 --> 00:27:46.710\nYou really, you changed the game in terms of what a jewelry store was really\n\n647\n00:27:46.710 --> 00:27:47.680\nall about.\n\n648\n00:27:47.680 --> 00:27:50.480\nAnd I think that's funny because right now they're like, you were on the\n\n649\n00:27:50.480 --> 00:27:50.960\nforefront of\n\n650\n00:27:50.960 --> 00:27:52.120\nthis disruptive.\n\n651\n00:27:52.120 --> 00:27:55.840\nAnd I was like, you know, guys, I didn't know that's what we were doing.\n\n652\n00:27:55.840 --> 00:28:00.720\nI again just knew I wanted to do something unique and different.\n\n653\n00:28:00.720 --> 00:28:04.480\nAnd if I was doing what everybody else was doing, why do it?\n\n654\n00:28:04.480 --> 00:28:05.480\nWhy do it?\n\n655\n00:28:05.480 --> 00:28:08.080\nBecause that wasn't clearly for me wasn't working.\n\n656\n00:28:08.080 --> 00:28:12.520\nSo I think, you know, that mindset of, you know, I always tell my managers to\n\n657\n00:28:12.520 --> 00:28:13.240\nthis day,\n\n658\n00:28:13.240 --> 00:28:14.800\nnever walk in the back door.\n\n659\n00:28:14.800 --> 00:28:17.600\nI want you to walk in the front door of your store every day.\n\n660\n00:28:17.600 --> 00:28:21.640\nAnd I want you to see it with fresh eyes like you've never been there before.\n\n661\n00:28:21.640 --> 00:28:25.100\nAnd look at every single thing from the customer's perspective, and you're\n\n662\n00:28:25.100 --> 00:28:26.080\ngoing to learn so\n\n663\n00:28:26.080 --> 00:28:27.080\nmuch.\n\n664\n00:28:27.080 --> 00:28:28.080\nAnd we do that every day.\n\n665\n00:28:28.080 --> 00:28:29.240\nWe walk through the front door.\n\n666\n00:28:29.240 --> 00:28:30.240\nGood.\n\n667\n00:28:30.240 --> 00:28:31.240\nGood.\n\n668\n00:28:31.240 --> 00:28:35.030\nYou know, you are obviously a tremendous innovator, whether, you know, it was\n\n669\n00:28:35.030 --> 00:28:36.000\njust thinking about\n\n670\n00:28:36.000 --> 00:28:37.240\nwhat you wanted or not.\n\n671\n00:28:37.240 --> 00:28:38.640\nI mean, you are an innovator.\n\n672\n00:28:38.640 --> 00:28:40.000\nThere's no doubt about it.\n\n673\n00:28:40.000 --> 00:28:42.080\nNow you've got this big company.\n\n674\n00:28:42.080 --> 00:28:45.400\nHow do you drive the importance of innovation in your company?\n\n675\n00:28:45.400 --> 00:28:50.220\nI think it's one of our most important, every day I always say to our folks, we\n\n676\n00:28:50.220 --> 00:28:50.760\ncan never\n\n677\n00:28:50.760 --> 00:28:52.560\nbe complacent.\n\n678\n00:28:52.560 --> 00:28:55.560\nAnd I think a lot of businesses start to get to certain levels and they're like\n\n679\n00:28:55.560 --> 00:28:56.280\n, oh, yeah,\n\n680\n00:28:56.280 --> 00:28:58.280\nwe're really on top of our game right now.\n\n681\n00:28:58.280 --> 00:29:00.320\nAnd they can become a little complacent.\n\n682\n00:29:00.320 --> 00:29:03.000\nThat's when you have to work harder, in my opinion.\n\n683\n00:29:03.000 --> 00:29:05.120\nAnd we are never complacent.\n\n684\n00:29:05.120 --> 00:29:08.360\nEvery day I say, we have to wake up and we have to think about how am I going\n\n685\n00:29:08.360 --> 00:29:09.000\nto surprise\n\n686\n00:29:09.000 --> 00:29:11.360\nand delight my customer today?\n\n687\n00:29:11.360 --> 00:29:14.920\nWhat are we going to do today that's going to surprise and delight her?\n\n688\n00:29:14.920 --> 00:29:18.760\nBecause to surprise somebody, it's not doing the same playbook that you did\n\n689\n00:29:18.760 --> 00:29:19.560\nyesterday.\n\n690\n00:29:19.560 --> 00:29:20.920\nYou're doing something fresh.\n\n691\n00:29:20.920 --> 00:29:21.920\nYou're being innovative.\n\n692\n00:29:21.920 --> 00:29:25.720\nYou're connecting with her in unique ways.\n\n693\n00:29:25.720 --> 00:29:31.620\nAnd when the pandemic hit, okay, we are used to this physical touch with our\n\n694\n00:29:31.620 --> 00:29:32.920\ncustomer.\n\n695\n00:29:32.920 --> 00:29:37.310\nAnd I believe still that human touch is so important, but you don't have to\n\n696\n00:29:37.310 --> 00:29:38.120\nphysically\n\n697\n00:29:38.120 --> 00:29:40.800\ntouch someone to touch them.\n\n698\n00:29:40.800 --> 00:29:42.200\nYou can touch their heart.\n\n699\n00:29:42.200 --> 00:29:43.240\nYou can touch their spirit.\n\n700\n00:29:43.240 --> 00:29:44.960\nYou can touch their mind.\n\n701\n00:29:44.960 --> 00:29:46.520\nAnd we're figuring out ways now.\n\n702\n00:29:46.520 --> 00:29:48.320\nHow do we do that virtually?\n\n703\n00:29:48.320 --> 00:29:53.480\nHow do we do our Kendra gives back events, which are supporting local community\n\n704\n00:29:53.480 --> 00:29:53.640\ncharities,\n\n705\n00:29:53.640 --> 00:29:55.120\nwhen we don't have stores to open?\n\n706\n00:29:55.120 --> 00:29:57.080\nWell, we did them virtually.\n\n707\n00:29:57.080 --> 00:30:02.360\nAnd now we have 1,200 of them booked because so many nonprofits need our help.\n\n708\n00:30:02.360 --> 00:30:05.570\nYou know, what do we do because our customer can't try on the earrings in the\n\n709\n00:30:05.570 --> 00:30:06.480\nstore anymore?\n\n710\n00:30:06.480 --> 00:30:09.440\nYou know, we used to, like I said, we had the signs that said, have fun.\n\n711\n00:30:09.440 --> 00:30:10.440\nTry on.\n\n712\n00:30:10.440 --> 00:30:11.840\nWe want you to play with the jewelry.\n\n713\n00:30:11.840 --> 00:30:14.080\nWell, she can't physically do that right now.\n\n714\n00:30:14.080 --> 00:30:15.880\nHow do we solve this problem?\n\n715\n00:30:15.880 --> 00:30:17.080\nVirtual try on.\n\n716\n00:30:17.080 --> 00:30:21.750\nWe did a program for Virtual Try on in a matter of weeks because our team was\n\n717\n00:30:21.750 --> 00:30:22.720\nable to just\n\n718\n00:30:22.720 --> 00:30:23.720\ngo.\n\n719\n00:30:23.720 --> 00:30:27.840\nI gave them the green light to make it happen, that the red tape was taken away\n\n720\n00:30:27.840 --> 00:30:28.120\n.\n\n721\n00:30:28.120 --> 00:30:29.280\nWe need Virtual Try on.\n\n722\n00:30:29.280 --> 00:30:30.280\nLet's do it.\n\n723\n00:30:30.280 --> 00:30:33.040\nThat went live, you know, just last month.\n\n724\n00:30:33.040 --> 00:30:37.760\nSo I think it's that conversation of, you know, where's our customer at?\n\n725\n00:30:37.760 --> 00:30:39.680\nHow can we surprise and delight her?\n\n726\n00:30:39.680 --> 00:30:43.000\nAnd when you look at that from that perspective, it makes making decisions a\n\n727\n00:30:43.000 --> 00:30:43.720\nlot easier.\n\n728\n00:30:43.720 --> 00:30:47.080\nYou've got such a great insight on the customer, particularly in retail.\n\n729\n00:30:47.080 --> 00:30:51.800\nI mean, everybody just talks about transactions, transactions, connections.\n\n730\n00:30:51.800 --> 00:30:55.310\nWhat a great way to get your people to think about how to really satisfy\n\n731\n00:30:55.310 --> 00:30:56.120\ncustomers.\n\n732\n00:30:56.120 --> 00:30:57.120\nI love that.\n\n733\n00:30:57.120 --> 00:30:59.400\nYou've got a great way of simplifying.\n\n734\n00:30:59.400 --> 00:31:01.120\nYou have this thing called the sister rule.\n\n735\n00:31:01.120 --> 00:31:02.120\nYeah.\n\n736\n00:31:02.120 --> 00:31:03.120\nTalk about that.\n\n737\n00:31:03.120 --> 00:31:04.120\nI love this one too.\n\n738\n00:31:04.120 --> 00:31:07.820\nWell, you know, again, like you just said, I think so many companies, you'll\n\n739\n00:31:07.820 --> 00:31:08.600\nget a customer\n\n740\n00:31:08.600 --> 00:31:12.910\nservice packet that's like 200 pages and you give them to a new employee and\n\n741\n00:31:12.910 --> 00:31:13.560\nyou say,\n\n742\n00:31:13.560 --> 00:31:16.360\nhere, here's our customer service and policies.\n\n743\n00:31:16.360 --> 00:31:17.360\nRead this.\n\n744\n00:31:17.360 --> 00:31:18.360\nGood luck.\n\n745\n00:31:18.360 --> 00:31:19.360\nThank you.\n\n746\n00:31:19.360 --> 00:31:22.120\nAnd they go home and they're like, Oh my God, mine is simple.\n\n747\n00:31:22.120 --> 00:31:23.280\nIt's a sister rule.\n\n748\n00:31:23.280 --> 00:31:24.680\nThis is your customer service.\n\n749\n00:31:24.680 --> 00:31:25.680\nOkay.\n\n750\n00:31:25.680 --> 00:31:26.680\nThis is your policy.\n\n751\n00:31:26.680 --> 00:31:30.440\nYou treat every customer like they were your sister or your brother.\n\n752\n00:31:30.440 --> 00:31:32.600\nHopefully you like your sister or your brother.\n\n753\n00:31:32.600 --> 00:31:34.040\nWhat would you do for your sister?\n\n754\n00:31:34.040 --> 00:31:36.840\nIf she had a broken earring, you'd fix it.\n\n755\n00:31:36.840 --> 00:31:39.960\nIf she lost one earring, but had the other, what would you do?\n\n756\n00:31:39.960 --> 00:31:42.080\nGive her 50% off on a new pair.\n\n757\n00:31:42.080 --> 00:31:45.120\nIt's just take care of her like family.\n\n758\n00:31:45.120 --> 00:31:49.520\nTreat your customer like you would your family and I give every single\n\n759\n00:31:49.520 --> 00:31:51.160\nassociate part time,\n\n760\n00:31:51.160 --> 00:31:54.800\nholiday help, interns, the power to please.\n\n761\n00:31:54.800 --> 00:31:58.840\nYou do not have to ask for manager approval in a Kendra Scott store.\n\n762\n00:31:58.840 --> 00:32:02.680\nYou in that moment, you make a decision, the best decision you can, but you\n\n763\n00:32:02.680 --> 00:32:03.560\nmake a decision\n\n764\n00:32:03.560 --> 00:32:05.600\nand you help that customer.\n\n765\n00:32:05.600 --> 00:32:06.600\nIt's very simple.\n\n766\n00:32:06.600 --> 00:32:11.650\nAnd when you give young associates that power, that trust that you believe in\n\n767\n00:32:11.650 --> 00:32:12.640\nthem, they will\n\n768\n00:32:12.640 --> 00:32:14.320\ndo magical things.\n\n769\n00:32:14.320 --> 00:32:17.980\nIf you don't believe in a part time sales associate, then you shouldn't have\n\n770\n00:32:17.980 --> 00:32:18.440\nthem on\n\n771\n00:32:18.440 --> 00:32:19.440\nyour floor.\n\n772\n00:32:19.440 --> 00:32:22.630\nThey're the most important person in your company or the people that are\n\n773\n00:32:22.630 --> 00:32:23.320\ninteracting\n\n774\n00:32:23.320 --> 00:32:24.720\nwith your customers.\n\n775\n00:32:24.720 --> 00:32:28.670\nSo if you don't think that they have the power to make a decision, why did you\n\n776\n00:32:28.670 --> 00:32:29.040\nhire\n\n777\n00:32:29.040 --> 00:32:30.040\nthem?\n\n778\n00:32:30.040 --> 00:32:31.040\nRight?\n\n779\n00:32:31.040 --> 00:32:34.670\nSo I think the mentality of customer service could be so simplified for\n\n780\n00:32:34.670 --> 00:32:35.560\nbusinesses.\n\n781\n00:32:35.560 --> 00:32:39.990\nThey get over policy driven and not that there aren't good foundations of how\n\n782\n00:32:39.990 --> 00:32:40.760\nyou handle\n\n783\n00:32:40.760 --> 00:32:41.760\nthings.\n\n784\n00:32:41.760 --> 00:32:46.520\nBut I also think it's important to think about how you can really empower your\n\n785\n00:32:46.520 --> 00:32:47.120\npeople to\n\n786\n00:32:47.120 --> 00:32:50.320\ngive the best service they possibly can every day.\n\n787\n00:32:50.320 --> 00:32:52.040\nThat is like the sister rule.\n\n788\n00:32:52.040 --> 00:32:56.930\nIt's so simple as I mentioned and you know, versus the hundred page manual on\n\n789\n00:32:56.930 --> 00:32:57.680\nhow to do\n\n790\n00:32:57.680 --> 00:33:01.590\nall this stuff, you've got the sister rule, then you talk about connections\n\n791\n00:33:01.590 --> 00:33:03.880\nversus transactions.\n\n792\n00:33:03.880 --> 00:33:08.120\nYou lay a bed at night and think about these things, these ways to simplify.\n\n793\n00:33:08.120 --> 00:33:12.240\nI mean, how do you take the complex and simplify it like that?\n\n794\n00:33:12.240 --> 00:33:14.120\nHas it just come natural to you?\n\n795\n00:33:14.120 --> 00:33:18.030\nI mean, I don't, I think the way I've always thought about it is you just, you\n\n796\n00:33:18.030 --> 00:33:18.680\nknow, you\n\n797\n00:33:18.680 --> 00:33:21.720\nwear a brand of kindness.\n\n798\n00:33:21.720 --> 00:33:24.960\nI want to have something that spreads joy.\n\n799\n00:33:24.960 --> 00:33:30.420\nAnd so it makes it really easy for me because if a customer walks in our store,\n\n800\n00:33:30.420 --> 00:33:30.600\nthat's\n\n801\n00:33:30.600 --> 00:33:31.600\na win.\n\n802\n00:33:31.600 --> 00:33:37.270\nWe have just won today getting people to walk through your door in a brick and\n\n803\n00:33:37.270 --> 00:33:38.200\nmortar is\n\n804\n00:33:38.200 --> 00:33:39.360\na win.\n\n805\n00:33:39.360 --> 00:33:40.520\nThat is a win.\n\n806\n00:33:40.520 --> 00:33:44.540\nGetting her to stay and enjoy her experience, even if she doesn't buy something\n\n807\n00:33:44.540 --> 00:33:45.000\nthat day\n\n808\n00:33:45.000 --> 00:33:51.350\nand she walks out smiling, we won again because she will come back or she will\n\n809\n00:33:51.350 --> 00:33:52.280\ngo online or\n\n810\n00:33:52.280 --> 00:33:55.040\nshe will tell her friends about that experience.\n\n811\n00:33:55.040 --> 00:33:59.180\nAnd I think we've got to get out of what we thought brick and mortar was built\n\n812\n00:33:59.180 --> 00:33:59.680\nfor.\n\n813\n00:33:59.680 --> 00:34:02.920\nToday's goal is XYZ and these number of transactions.\n\n814\n00:34:02.920 --> 00:34:05.460\nAnd if you don't do this today and what is the number of, you know, if the\n\n815\n00:34:05.460 --> 00:34:06.080\npeople came\n\n816\n00:34:06.080 --> 00:34:10.640\nin and they didn't convert, your conversion rate is off by this percentage, you\n\n817\n00:34:10.640 --> 00:34:11.360\nfailed.\n\n818\n00:34:11.360 --> 00:34:12.360\nYou have failed.\n\n819\n00:34:12.360 --> 00:34:15.360\nI don't look at it that way because I look at our overall business.\n\n820\n00:34:15.360 --> 00:34:17.480\nI'll look at how a market is lifting.\n\n821\n00:34:17.480 --> 00:34:19.480\nAre we driving revenue to our website?\n\n822\n00:34:19.480 --> 00:34:21.800\nAre we driving revenue to our wholesale partners?\n\n823\n00:34:21.800 --> 00:34:23.680\nAre we seeing a lift?\n\n824\n00:34:23.680 --> 00:34:26.830\nHas that lift happened because a store was there and that experience that we're\n\n825\n00:34:26.830 --> 00:34:27.240\ngiving\n\n826\n00:34:27.240 --> 00:34:31.240\nand that community outreach that we're doing, that is success.\n\n827\n00:34:31.240 --> 00:34:39.000\nThat's how I measure success.\n\n828\n00:34:39.000 --> 00:34:42.440\nWe'll be back with the rest of my conversation with Kendra Scott in just a\n\n829\n00:34:42.440 --> 00:34:43.120\nmoment.\n\n830\n00:34:43.120 --> 00:34:46.560\nIs your company's vision simple enough that all of your people can understand\n\n831\n00:34:46.560 --> 00:34:47.200\nit and really\n\n832\n00:34:47.200 --> 00:34:48.560\nget behind it?\n\n833\n00:34:48.560 --> 00:34:53.300\nIn my conversation with Larry Merlow, CEO of CVS Health, you'll hear how simpl\n\n834\n00:34:53.300 --> 00:34:53.840\nifying\n\n835\n00:34:53.840 --> 00:34:57.440\nhis vision made a massive difference in their company.\n\n836\n00:34:57.440 --> 00:35:00.600\nI asked everyone, which one is the mission?\n\n837\n00:35:00.600 --> 00:35:02.360\nWhich one is the vision?\n\n838\n00:35:02.360 --> 00:35:05.320\nYou got a 50% chance of getting it right.\n\n839\n00:35:05.320 --> 00:35:07.320\nAnd that's exactly what we got.\n\n840\n00:35:07.320 --> 00:35:09.880\n50% of the people got it right.\n\n841\n00:35:09.880 --> 00:35:13.090\nAnd I still remember in that meeting, making a commitment that, look, this is\n\n842\n00:35:13.090 --> 00:35:13.560\nthe last\n\n843\n00:35:13.560 --> 00:35:17.680\ntime you're going to see this mission and this vision because we haven't been\n\n844\n00:35:17.680 --> 00:35:19.320\nable to operationalize\n\n845\n00:35:19.320 --> 00:35:23.160\nit in terms of bringing a day-to-day meaning to our work.\n\n846\n00:35:23.160 --> 00:35:27.410\nAnd if we can't answer that question as the leadership of the company, then how\n\n847\n00:35:27.410 --> 00:35:27.720\ngood a\n\n848\n00:35:27.720 --> 00:35:32.030\njob are we doing leading the thousands of individuals that are counting on us\n\n849\n00:35:32.030 --> 00:35:32.560\nfor that\n\n850\n00:35:32.560 --> 00:35:35.560\nlevel of leadership and focus and direction?\n\n851\n00:35:35.560 --> 00:35:39.220\nIf you want to lead well, you need a simple and compelling vision and you'll\n\n852\n00:35:39.220 --> 00:35:39.760\nlearn how\n\n853\n00:35:39.760 --> 00:35:42.720\nto do that in my conversation with Larry.\n\n854\n00:35:42.720 --> 00:35:53.120\nYou know, in 2012, here on How Leaders Lead.\n\n855\n00:35:53.120 --> 00:35:55.240\nYou've learned everything pretty much by yourself.\n\n856\n00:35:55.240 --> 00:35:59.120\nYou don't have the NBA, but you have the NBA by experience for sure.\n\n857\n00:35:59.120 --> 00:36:03.880\nYou know how to make the jewelry, how to source the jewelry, how to sell it.\n\n858\n00:36:03.880 --> 00:36:08.080\nHow did you go from being this basically one-person band?\n\n859\n00:36:08.080 --> 00:36:11.000\nNow you've got this incredible organization.\n\n860\n00:36:11.000 --> 00:36:14.480\nHow do you have to change as a leader to scale the business?\n\n861\n00:36:14.480 --> 00:36:19.700\nThe most important thing I think I realized early on is I know what I'm great\n\n862\n00:36:19.700 --> 00:36:20.400\nat, but\n\n863\n00:36:20.400 --> 00:36:24.060\nI know what I'm not great at and that is the biggest lesson that any\n\n864\n00:36:24.060 --> 00:36:25.120\nentrepreneur should\n\n865\n00:36:25.120 --> 00:36:26.120\nknow.\n\n866\n00:36:26.120 --> 00:36:30.130\nAny entrepreneur that thinks they know it all, that they are the king or queen\n\n867\n00:36:30.130 --> 00:36:30.880\nof everything\n\n868\n00:36:30.880 --> 00:36:34.120\nand they can answer every problem and they're the ball.\n\n869\n00:36:34.120 --> 00:36:38.280\nThat's where they fall down and they will have mud on their face.\n\n870\n00:36:38.280 --> 00:36:40.880\nThe biggest thing I learned right away is I knew.\n\n871\n00:36:40.880 --> 00:36:45.840\nIf I could focus on the things that I was great at and I could bring other\n\n872\n00:36:45.840 --> 00:36:46.600\npeople in\n\n873\n00:36:46.600 --> 00:36:50.130\nthat were great at the things that I was not good at, but that's the things\n\n874\n00:36:50.130 --> 00:36:50.720\nthat they\n\n875\n00:36:50.720 --> 00:36:56.290\nexcelled in and that we shared core values, that they were kind, they were\n\n876\n00:36:56.290 --> 00:36:57.280\nthoughtful,\n\n877\n00:36:57.280 --> 00:37:01.660\nthey understood our core values of family, that would be able to build a\n\n878\n00:37:01.660 --> 00:37:02.520\nwinning team\n\n879\n00:37:02.520 --> 00:37:08.300\nand that's the key is bringing people in at the right places, the right people\n\n880\n00:37:08.300 --> 00:37:08.680\nthat\n\n881\n00:37:08.680 --> 00:37:11.680\nunderstand where you are and also planning ahead.\n\n882\n00:37:11.680 --> 00:37:14.000\nI didn't bring people in for today.\n\n883\n00:37:14.000 --> 00:37:17.430\nI bring people in where I said, this is where I think our company is going in\n\n884\n00:37:17.430 --> 00:37:18.280\nthree years.\n\n885\n00:37:18.280 --> 00:37:22.480\nI want to bring somebody in today that can get us there.\n\n886\n00:37:22.480 --> 00:37:26.040\nIf I'm bringing somebody in for where I am today, I'm not going to go very far.\n\n887\n00:37:26.040 --> 00:37:30.680\nBringing in really great talent was important and fortunately we got incredibly\n\n888\n00:37:30.680 --> 00:37:31.320\nlucky.\n\n889\n00:37:31.320 --> 00:37:37.870\nWe were lean, we would all roll our sleeves up and that was part of the culture\n\n890\n00:37:37.870 --> 00:37:38.440\nwas we\n\n891\n00:37:38.440 --> 00:37:41.800\nwear a lot of hats, we do a lot of different things.\n\n892\n00:37:41.800 --> 00:37:47.180\nNo one's too good to do anything at Kendra Scott and it was scrappy and it was\n\n893\n00:37:47.180 --> 00:37:48.680\nbootstrapped\n\n894\n00:37:48.680 --> 00:37:51.320\nand it still is a lot of fun.\n\n895\n00:37:51.320 --> 00:37:55.220\nYou have to put as you've gotten bigger more process and discipline around what\n\n896\n00:37:55.220 --> 00:37:55.640\nreally\n\n897\n00:37:55.640 --> 00:37:56.640\nmatters.\n\n898\n00:37:56.640 --> 00:37:59.870\nI know that doesn't even sound like your language, but big companies would say\n\n899\n00:37:59.870 --> 00:38:00.240\nyou've got to\n\n900\n00:38:00.240 --> 00:38:03.480\nhave the process and discipline around what really matters.\n\n901\n00:38:03.480 --> 00:38:06.710\nYou've got your sister role and you've got a lot of things that really make\n\n902\n00:38:06.710 --> 00:38:07.200\njust such\n\n903\n00:38:07.200 --> 00:38:09.880\ngreat common sense, but you're big now.\n\n904\n00:38:09.880 --> 00:38:13.160\nIt's like how you open up stores, how you make money.\n\n905\n00:38:13.160 --> 00:38:15.160\nWhat's your thoughts on process?\n\n906\n00:38:15.160 --> 00:38:17.680\nYou know, look, you're absolutely right.\n\n907\n00:38:17.680 --> 00:38:21.770\nYou have to have those elements to run a successful business, but I think it's\n\n908\n00:38:21.770 --> 00:38:23.680\nhow you put processes\n\n909\n00:38:23.680 --> 00:38:25.520\nin place that matter.\n\n910\n00:38:25.520 --> 00:38:30.040\nAgain, if you inundate folks with so much process, then you lose that\n\n911\n00:38:30.040 --> 00:38:32.160\nentrepreneurial spirit,\n\n912\n00:38:32.160 --> 00:38:38.250\nthat entrepreneurial mindset and I think a lot of big companies get over\n\n913\n00:38:38.250 --> 00:38:38.800\nprocessed and\n\n914\n00:38:38.800 --> 00:38:43.500\nfrom start to end becomes all of this minutia that people have to try to get\n\n915\n00:38:43.500 --> 00:38:44.520\nthrough this\n\n916\n00:38:44.520 --> 00:38:49.730\nforest of confusion where when you're young and you're agile and you're a\n\n917\n00:38:49.730 --> 00:38:50.760\nstartup kind\n\n918\n00:38:50.760 --> 00:38:53.400\nof mode, your points are much shorter.\n\n919\n00:38:53.400 --> 00:38:55.040\nIt's like here to here, here to here.\n\n920\n00:38:55.040 --> 00:38:56.480\nWe go, go, go, go, go.\n\n921\n00:38:56.480 --> 00:39:00.370\nI think for me trying to figure out ways that you obviously we want to give\n\n922\n00:39:00.370 --> 00:39:01.320\nsome process,\n\n923\n00:39:01.320 --> 00:39:06.290\nbut taking out all those trees and making the path a little bit clearer to walk\n\n924\n00:39:06.290 --> 00:39:06.720\non is\n\n925\n00:39:06.720 --> 00:39:08.440\nmy job.\n\n926\n00:39:08.440 --> 00:39:13.240\nI do look at it from a way of a 360 approach of I'll look down at that forest\n\n927\n00:39:13.240 --> 00:39:13.840\nand when\n\n928\n00:39:13.840 --> 00:39:18.970\nI start seeing too many snarly trees popping up, I try to go down and go, \"Hey\n\n929\n00:39:18.970 --> 00:39:19.600\nguys, we're\n\n930\n00:39:19.600 --> 00:39:21.640\nover complicating this.\n\n931\n00:39:21.640 --> 00:39:23.680\nLet's pull some things out.\n\n932\n00:39:23.680 --> 00:39:27.400\nLet's make this a little easier and let's empower our people.\n\n933\n00:39:27.400 --> 00:39:32.280\nLet's empower these amazing people that we've hired to do great things.\n\n934\n00:39:32.280 --> 00:39:33.280\nLet's do that.\"\n\n935\n00:39:33.280 --> 00:39:34.520\nI want to sign up right now.\n\n936\n00:39:34.520 --> 00:39:35.920\nI'm ready to go.\n\n937\n00:39:35.920 --> 00:39:39.920\nYou need an ex-marketing person or something like that.\n\n938\n00:39:39.920 --> 00:39:40.920\nYou're hired.\n\n939\n00:39:40.920 --> 00:39:41.920\nYou're hired.\n\n940\n00:39:41.920 --> 00:39:42.920\nThanks.\n\n941\n00:39:42.920 --> 00:39:48.000\nI definitely try to be kind, so that's one of the good things.\n\n942\n00:39:48.000 --> 00:39:50.040\nTell me the story we talked about.\n\n943\n00:39:50.040 --> 00:39:52.960\nScanlan, how did you go about raising the capital, go national?\n\n944\n00:39:52.960 --> 00:39:56.400\nIt took a lot of money to get to where you're at.\n\n945\n00:39:56.400 --> 00:40:02.430\nWhen I started, I started out of my bedroom and I started with $500, which is a\n\n946\n00:40:02.430 --> 00:40:03.480\ntrue story.\n\n947\n00:40:03.480 --> 00:40:05.760\nI first just got a line of credit.\n\n948\n00:40:05.760 --> 00:40:08.480\nI signed everything I had up for collateral.\n\n949\n00:40:08.480 --> 00:40:12.380\nI joke that I think the shoes I was wearing the day I went and signed the loan\n\n950\n00:40:12.380 --> 00:40:13.200\nwas probably\n\n951\n00:40:13.200 --> 00:40:17.280\nalso up for collateral.\n\n952\n00:40:17.280 --> 00:40:21.120\nIt was scrappy as scrappy can get.\n\n953\n00:40:21.120 --> 00:40:25.920\nBasically, I was trying to just reinvest everything to keep growing and\n\n954\n00:40:25.920 --> 00:40:26.320\nbuilding.\n\n955\n00:40:26.320 --> 00:40:32.560\nI didn't take on any investment capital for almost 11 years.\n\n956\n00:40:32.560 --> 00:40:37.800\nIf you can believe that, I did it on lines of credit, debt, and credit cards.\n\n957\n00:40:37.800 --> 00:40:39.960\nThat is how I was building the business.\n\n958\n00:40:39.960 --> 00:40:46.230\nIn 2010, when we opened our first store, we just saw such an immediate, it was\n\n959\n00:40:46.230 --> 00:40:47.360\njust unbelievable\n\n960\n00:40:47.360 --> 00:40:52.160\nwhat this little store was doing that we opened a few other stores and they\n\n961\n00:40:52.160 --> 00:40:52.840\nwere also\n\n962\n00:40:52.840 --> 00:40:54.560\nhaving incredible results.\n\n963\n00:40:54.560 --> 00:40:57.160\nWe did this again with no financing.\n\n964\n00:40:57.160 --> 00:40:59.320\nI have a lot of mentors.\n\n965\n00:40:59.320 --> 00:41:03.800\nI believe so much in having great mentors around you.\n\n966\n00:41:03.800 --> 00:41:06.950\nOne of my greatest mentors, I came in and I just said, \"I'm trying to figure\n\n967\n00:41:06.950 --> 00:41:07.320\nout what\n\n968\n00:41:07.320 --> 00:41:10.360\nto do, how I go about doing all of this.\n\n969\n00:41:10.360 --> 00:41:11.760\nNow we're opening stores.\n\n970\n00:41:11.760 --> 00:41:13.880\nIt's a big investment.\n\n971\n00:41:13.880 --> 00:41:14.880\nIt's my name.\n\n972\n00:41:14.880 --> 00:41:19.080\nI'm personally guaranteeing everything at this point.\"\n\n973\n00:41:19.080 --> 00:41:22.120\nHe said, \"Look, can I please invest?\"\n\n974\n00:41:22.120 --> 00:41:26.840\nI was weird back then a little bit about giving away equity because here I was.\n\n975\n00:41:26.840 --> 00:41:29.910\nIt's Kendra Scott and I'm a standalone business and I don't want to give up any\n\n976\n00:41:29.910 --> 00:41:30.360\nequity.\n\n977\n00:41:30.360 --> 00:41:32.800\nI want to own it all.\n\n978\n00:41:32.800 --> 00:41:37.870\nWhen I looked at this partner, he was somebody that I wanted to have on my team\n\n979\n00:41:37.870 --> 00:41:37.920\n.\n\n980\n00:41:37.920 --> 00:41:38.920\nHe believed in me.\n\n981\n00:41:38.920 --> 00:41:40.920\nHe's always been there for me.\n\n982\n00:41:40.920 --> 00:41:45.480\nHe was my first investor and he got 5% of the company.\n\n983\n00:41:45.480 --> 00:41:48.840\nI wasn't giving away too much at that point.\n\n984\n00:41:48.840 --> 00:41:51.400\nHe gave me a pretty fair valuation.\n\n985\n00:41:51.400 --> 00:41:53.840\nI think our agreement was about six pages long.\n\n986\n00:41:53.840 --> 00:41:55.840\nIt wasn't very big.\n\n987\n00:41:55.840 --> 00:41:59.910\nIt wasn't a huge amount but it was able to get us to open a few more stores and\n\n988\n00:41:59.910 --> 00:42:00.320\nkeep\n\n989\n00:42:00.320 --> 00:42:05.040\nthe train moving and get the inventory levels that I needed.\n\n990\n00:42:05.040 --> 00:42:08.890\nThen shortly thereafter, we started getting our literally our phones were\n\n991\n00:42:08.890 --> 00:42:09.560\nringing.\n\n992\n00:42:09.560 --> 00:42:12.440\nWhat's funny about this, David, is raising equity before.\n\n993\n00:42:12.440 --> 00:42:15.240\nI remember when the recession hit, I was like, \"I need a partner.\n\n994\n00:42:15.240 --> 00:42:18.160\nI need somebody to bring in equity.\"\n\n995\n00:42:18.160 --> 00:42:20.120\nIt was like, \"No one.\n\n996\n00:42:20.120 --> 00:42:21.360\nHow do you find these people?\"\n\n997\n00:42:21.360 --> 00:42:25.120\n\"Where do you go about finding people to invest in you?\"\n\n998\n00:42:25.120 --> 00:42:27.600\nIt wasn't easy at all.\n\n999\n00:42:27.600 --> 00:42:29.240\nPeople said, \"Well, you just need an angel.\"\n\n1000\n00:42:29.240 --> 00:42:30.720\nI'm like, \"Hello.\n\n1001\n00:42:30.720 --> 00:42:32.800\nTell me something I don't know.\n\n1002\n00:42:32.800 --> 00:42:33.880\nOf course I need an angel.\n\n1003\n00:42:33.880 --> 00:42:36.280\nI need a lot of angels.\"\n\n1004\n00:42:36.280 --> 00:42:42.580\n\"Where do angels like, do they go somewhere or I don't like to meet them\n\n1005\n00:42:42.580 --> 00:42:44.120\nsomewhere?\"\n\n1006\n00:42:44.120 --> 00:42:47.920\nIt was really crazy because our phones started ringing.\n\n1007\n00:42:47.920 --> 00:42:51.680\nOne of my friends earlier said, \"Kendro, just build your business.\"\n\n1008\n00:42:51.680 --> 00:42:54.800\nWhen you build it, they're going to come to you.\n\n1009\n00:42:54.800 --> 00:42:57.880\nIt was like that if you build it, they will come.\n\n1010\n00:42:57.880 --> 00:42:59.680\nIt was exactly that.\n\n1011\n00:42:59.680 --> 00:43:00.840\nWe were building a business.\n\n1012\n00:43:00.840 --> 00:43:01.960\nIt was getting attention.\n\n1013\n00:43:01.960 --> 00:43:03.800\nWe were being disruptive.\n\n1014\n00:43:03.800 --> 00:43:08.560\nPeople noticed lines outside of the store that wasn't happening anywhere.\n\n1015\n00:43:08.560 --> 00:43:10.360\nBoy, did they come.\n\n1016\n00:43:10.360 --> 00:43:13.600\nThey were coming and they wanted to be a part of it.\n\n1017\n00:43:13.600 --> 00:43:20.080\nWe had about 12 private equity firms reaching out to us to invest in that first\n\n1018\n00:43:20.080 --> 00:43:20.720\nround that\n\n1019\n00:43:20.720 --> 00:43:22.440\nwe took in 2013.\n\n1020\n00:43:22.440 --> 00:43:23.440\nWow.\n\n1021\n00:43:23.440 --> 00:43:25.480\nThat's a great story.\n\n1022\n00:43:25.480 --> 00:43:30.160\nYou've pretty much done it on your own coming up anyway.\n\n1023\n00:43:30.160 --> 00:43:34.040\nYou had to be a pretty good self-coach.\n\n1024\n00:43:34.040 --> 00:43:39.520\nHow did you go about in this process of raising your own game as a leader?\n\n1025\n00:43:39.520 --> 00:43:41.160\nWhat are you working on today?\n\n1026\n00:43:41.160 --> 00:43:45.200\nI think every day I want to learn something.\n\n1027\n00:43:45.200 --> 00:43:47.080\nI'm like a sponge.\n\n1028\n00:43:47.080 --> 00:43:51.640\nI love learning from other people.\n\n1029\n00:43:51.640 --> 00:43:54.480\nI'm always asking questions too from people.\n\n1030\n00:43:54.480 --> 00:43:57.240\nA lot of people are scared to act like, \"What they're going to think?\n\n1031\n00:43:57.240 --> 00:43:59.320\nI'm stupid if I ask a question.\"\n\n1032\n00:43:59.320 --> 00:44:00.320\nI disagree.\n\n1033\n00:44:00.320 --> 00:44:04.260\nI think it is an incredible sign of a great leader when they want to continue\n\n1034\n00:44:04.260 --> 00:44:04.800\nto learn\n\n1035\n00:44:04.800 --> 00:44:06.920\nsomething new every day.\n\n1036\n00:44:06.920 --> 00:44:10.920\nThere is no way that we could ever learn everything no matter how long we are\n\n1037\n00:44:10.920 --> 00:44:11.120\non\n\n1038\n00:44:11.120 --> 00:44:12.560\nthis earth.\n\n1039\n00:44:12.560 --> 00:44:15.410\nI think it's such a thing for me that I want to wake up today and I want to\n\n1040\n00:44:15.410 --> 00:44:16.160\nlearn something\n\n1041\n00:44:16.160 --> 00:44:17.160\nnew.\n\n1042\n00:44:17.160 --> 00:44:22.660\nI took an entrepreneurial master's course through an organization called EO\n\n1043\n00:44:22.660 --> 00:44:23.200\nthat was\n\n1044\n00:44:23.200 --> 00:44:25.400\nin 2006 to 2009.\n\n1045\n00:44:25.400 --> 00:44:26.400\nIt was three years.\n\n1046\n00:44:26.400 --> 00:44:29.720\nI'd go to MIT and we did this course.\n\n1047\n00:44:29.720 --> 00:44:32.520\n65 entrepreneurs from around the world.\n\n1048\n00:44:32.520 --> 00:44:36.540\nWe were learning from some of the greatest coolest entrepreneurs out there were\n\n1049\n00:44:36.540 --> 00:44:37.040\nteaching\n\n1050\n00:44:37.040 --> 00:44:38.800\nthe class.\n\n1051\n00:44:38.800 --> 00:44:42.600\nThey gave us amazing books to read those three years as well that we would all\n\n1052\n00:44:42.600 --> 00:44:44.600\ntalk about.\n\n1053\n00:44:44.600 --> 00:44:47.920\nThat was huge for me because it really gave me some good foundational things\n\n1054\n00:44:47.920 --> 00:44:48.400\nand how to\n\n1055\n00:44:48.400 --> 00:44:50.800\nrun a business effectively.\n\n1056\n00:44:50.800 --> 00:44:55.060\nWhen you look at when I finished that course in 2009, we had lost about 20\n\n1057\n00:44:55.060 --> 00:44:56.000\nstudents because\n\n1058\n00:44:56.000 --> 00:44:57.000\nof the recession.\n\n1059\n00:44:57.000 --> 00:44:59.040\nThey had lost their businesses.\n\n1060\n00:44:59.040 --> 00:45:05.760\nThere were about 45 of us left at graduation in 2009.\n\n1061\n00:45:05.760 --> 00:45:09.960\nMy business took off in 2010 like a rocket ship.\n\n1062\n00:45:09.960 --> 00:45:13.390\nI really think a lot of those foundational elements of what I learned from all\n\n1063\n00:45:13.390 --> 00:45:13.920\nthese other\n\n1064\n00:45:13.920 --> 00:45:15.920\nentrepreneurs really helped me.\n\n1065\n00:45:15.920 --> 00:45:17.360\nI love reading.\n\n1066\n00:45:17.360 --> 00:45:21.000\nYou can see I'm in my library talking to you and I love to read.\n\n1067\n00:45:21.000 --> 00:45:24.280\nI'm always looking for new books to read.\n\n1068\n00:45:24.280 --> 00:45:28.310\nThen again, just visiting with entrepreneurs and business leaders and\n\n1069\n00:45:28.310 --> 00:45:29.280\nunderstanding what's\n\n1070\n00:45:29.280 --> 00:45:33.650\nhappening out there in the world and just trying to gain insight every day and\n\n1071\n00:45:33.650 --> 00:45:34.080\nnot being\n\n1072\n00:45:34.080 --> 00:45:35.680\nafraid to ask for help.\n\n1073\n00:45:35.680 --> 00:45:42.260\nI will raise my hand many times and say, \"I'm running a company bigger than it\n\n1074\n00:45:42.260 --> 00:45:44.180\nwas yesterday.\n\n1075\n00:45:44.180 --> 00:45:46.800\nThis is new territory for me.\n\n1076\n00:45:46.800 --> 00:45:48.560\nWhat would you do if you were in my shoes?\"\n\n1077\n00:45:48.560 --> 00:45:53.820\nYou've been there before to ex-entrepreneur who's now running a $2 billion\n\n1078\n00:45:53.820 --> 00:45:54.360\nbrand.\n\n1079\n00:45:54.360 --> 00:45:58.670\nIt's amazing these conversations I have because I think a lot of people don't\n\n1080\n00:45:58.670 --> 00:45:59.520\nget asked for\n\n1081\n00:45:59.520 --> 00:46:04.040\nhelp often, but it is our human instinct to want to help other people.\n\n1082\n00:46:04.040 --> 00:46:05.040\nDon't be afraid to ask.\n\n1083\n00:46:05.040 --> 00:46:10.120\nThe worst thing they can do is tell you to hit the road and you haven't lost\n\n1084\n00:46:10.120 --> 00:46:11.160\nanything.\n\n1085\n00:46:11.160 --> 00:46:12.800\nYou are very charismatic.\n\n1086\n00:46:12.800 --> 00:46:14.040\nNo question about it.\n\n1087\n00:46:14.040 --> 00:46:19.080\nYou're really personal, but I bet deep down you are toughest nails.\n\n1088\n00:46:19.080 --> 00:46:20.080\nIs that true?\n\n1089\n00:46:20.080 --> 00:46:22.720\nYes, I think it is.\n\n1090\n00:46:22.720 --> 00:46:23.720\nI am.\n\n1091\n00:46:23.720 --> 00:46:25.200\nNo, this is the thing about me.\n\n1092\n00:46:25.200 --> 00:46:26.200\nThis is true.\n\n1093\n00:46:26.200 --> 00:46:27.200\nI will admit this.\n\n1094\n00:46:27.200 --> 00:46:30.760\nMy husband, when I get to you, would be like, \"Oh God, she is tough as nails.\n\n1095\n00:46:30.760 --> 00:46:32.800\nTrust me.\"\n\n1096\n00:46:32.800 --> 00:46:35.960\nI am, like I told you, an internal optimist.\n\n1097\n00:46:35.960 --> 00:46:37.680\nI'm always looking for the silver lining.\n\n1098\n00:46:37.680 --> 00:46:40.320\nI always give people the benefit of the doubt.\n\n1099\n00:46:40.320 --> 00:46:44.560\nI'm always looking for the good in them and giving them an opportunity.\n\n1100\n00:46:44.560 --> 00:46:47.280\nI don't right away go to the bad part.\n\n1101\n00:46:47.280 --> 00:46:52.430\nI'm trying to think about the good part, but if you cross me, more importantly,\n\n1102\n00:46:52.430 --> 00:46:53.560\nmy family,\n\n1103\n00:46:53.560 --> 00:46:58.920\nlike KSB, then Mama Bear comes out.\n\n1104\n00:46:58.920 --> 00:46:59.920\nI think that's you.\n\n1105\n00:46:59.920 --> 00:47:00.920\nYou mean Mama K, don't you?\n\n1106\n00:47:00.920 --> 00:47:01.920\nMama K.\n\n1107\n00:47:01.920 --> 00:47:03.640\nYes, Mama K comes out.\n\n1108\n00:47:03.640 --> 00:47:05.640\nAnd Mama K, dumb ass around.\n\n1109\n00:47:05.640 --> 00:47:10.470\nI also think when somebody comes in and they think, \"Here's this blonde from\n\n1110\n00:47:10.470 --> 00:47:11.280\nTexas.\"\n\n1111\n00:47:11.280 --> 00:47:15.640\nThey're pre-judged me and are maybe not taking me serious.\n\n1112\n00:47:15.640 --> 00:47:18.200\nI'll get it and I'll right away.\n\n1113\n00:47:18.200 --> 00:47:20.200\nI'll put them in their place in a nice way.\n\n1114\n00:47:20.200 --> 00:47:25.560\nI do it very Southern Charm Way, but they will know that I mean business.\n\n1115\n00:47:25.560 --> 00:47:28.880\nYou may call it the Velvet Hammer.\n\n1116\n00:47:28.880 --> 00:47:34.530\nOkay, I know when you're an entrepreneur like you, I've read your story and how\n\n1117\n00:47:34.530 --> 00:47:34.960\nyou had\n\n1118\n00:47:34.960 --> 00:47:38.600\nto just basically go sell everybody, get a chance at all these kinds of things.\n\n1119\n00:47:38.600 --> 00:47:41.840\nBut you had so many people say no to you so many times.\n\n1120\n00:47:41.840 --> 00:47:46.240\nWhat if I see a give to people on how to handle the word no?\n\n1121\n00:47:46.240 --> 00:47:48.520\nOoh, you know what?\n\n1122\n00:47:48.520 --> 00:47:50.040\nNo one in the mirror is on.\n\n1123\n00:47:50.040 --> 00:47:52.520\nI've said this a million times.\n\n1124\n00:47:52.520 --> 00:47:56.040\nAnd I say, if you're in a business discussion and you've pitched somebody and\n\n1125\n00:47:56.040 --> 00:47:56.720\nthey've told\n\n1126\n00:47:56.720 --> 00:47:58.720\nyou no, guess what?\n\n1127\n00:47:58.720 --> 00:48:00.360\nNow you're talking to them at least.\n\n1128\n00:48:00.360 --> 00:48:02.480\nYou got communication going.\n\n1129\n00:48:02.480 --> 00:48:05.240\nNo could be the beginning of the on.\n\n1130\n00:48:05.240 --> 00:48:06.640\nSo maybe it's like, you know what?\n\n1131\n00:48:06.640 --> 00:48:08.040\nToday you may not be interested.\n\n1132\n00:48:08.040 --> 00:48:09.040\nNo worries.\n\n1133\n00:48:09.040 --> 00:48:12.890\nNext month I'm going to send you new line sheet and then I'd send cupcakes or\n\n1134\n00:48:12.890 --> 00:48:13.440\ncookies\n\n1135\n00:48:13.440 --> 00:48:15.720\nor whatever and a nice hidden written note.\n\n1136\n00:48:15.720 --> 00:48:20.060\nThe more they push me, wait, not stockarish, but I wasn't afraid to keep going\n\n1137\n00:48:20.060 --> 00:48:20.560\nback to\n\n1138\n00:48:20.560 --> 00:48:25.080\nthem, to keep trying to engage them, to get to know them.\n\n1139\n00:48:25.080 --> 00:48:27.520\nAnd I think that's an important thing to remember.\n\n1140\n00:48:27.520 --> 00:48:29.240\nYou're going to get told no a lot.\n\n1141\n00:48:29.240 --> 00:48:32.240\nYou're going to get told that you can't do things.\n\n1142\n00:48:32.240 --> 00:48:36.240\nI couldn't be a jewelry designer because I didn't go to one of those fancy\n\n1143\n00:48:36.240 --> 00:48:37.040\nschools.\n\n1144\n00:48:37.040 --> 00:48:42.000\nI couldn't be a real fashion brand because I wasn't starting on the coasts.\n\n1145\n00:48:42.000 --> 00:48:45.640\nThere were so many times I was told that I couldn't do something.\n\n1146\n00:48:45.640 --> 00:48:50.320\nAnd that for me, whatever the reason is, was just like a fire started.\n\n1147\n00:48:50.320 --> 00:48:52.480\nIt's then I got like, okay, I'm going to show you.\n\n1148\n00:48:52.480 --> 00:48:54.360\nI can do this.\n\n1149\n00:48:54.360 --> 00:48:58.340\nSo now when somebody says, oh, you can't do that or that'll never happen, I'm\n\n1150\n00:48:58.340 --> 00:48:59.160\nlike,\n\n1151\n00:48:59.160 --> 00:49:00.160\noh, yes.\n\n1152\n00:49:00.160 --> 00:49:03.560\nI'll say, oh, watch out, baby.\n\n1153\n00:49:03.560 --> 00:49:04.560\nHere I come.\n\n1154\n00:49:04.560 --> 00:49:06.720\nYou know, like I can't wait to put it.\n\n1155\n00:49:06.720 --> 00:49:07.720\nYes, I can.\n\n1156\n00:49:07.720 --> 00:49:10.760\nAnd I get excited now to be able to do that.\n\n1157\n00:49:10.760 --> 00:49:15.210\nAnd I think that's an important thing for people is to not take that as a down,\n\n1158\n00:49:15.210 --> 00:49:15.960\nto smile\n\n1159\n00:49:15.960 --> 00:49:21.800\ninside and just nod and then walk away, go and watch out because here I come.\n\n1160\n00:49:21.800 --> 00:49:26.790\nYou know, Kendra, you are, you know, you've just created such a great brand and\n\n1161\n00:49:26.790 --> 00:49:27.320\nyou're\n\n1162\n00:49:27.320 --> 00:49:31.160\ninto every little detail I can tell about the brand.\n\n1163\n00:49:31.160 --> 00:49:35.560\nSo I have to ask you, why the color yellow in your packaging?\n\n1164\n00:49:35.560 --> 00:49:40.120\nWell, if you see the color yellow, what does it, what does it make you feel?\n\n1165\n00:49:40.120 --> 00:49:42.960\nWell, it's bright, sunny.\n\n1166\n00:49:42.960 --> 00:49:43.960\nYeah.\n\n1167\n00:49:43.960 --> 00:49:44.960\nHappy.\n\n1168\n00:49:44.960 --> 00:49:48.120\nI mean, yellow is happy.\n\n1169\n00:49:48.120 --> 00:49:52.520\nIf you see the sunshine yellow, it's, it is what makes you happy.\n\n1170\n00:49:52.520 --> 00:49:56.840\nThe darkest of days, yellow shines a light in the dark clouds, right?\n\n1171\n00:49:56.840 --> 00:49:59.280\nAnd so to me, that was the brand.\n\n1172\n00:49:59.280 --> 00:50:02.320\nIt was, we are happy, we are joyful.\n\n1173\n00:50:02.320 --> 00:50:05.560\nIn addition to that, what's really funny is when we were trying to side in the\n\n1174\n00:50:05.560 --> 00:50:05.960\ncolor,\n\n1175\n00:50:05.960 --> 00:50:07.280\nI had taken a personality test.\n\n1176\n00:50:07.280 --> 00:50:10.100\nAnd I don't know if you've ever done this where it's like the red, green, blue,\n\n1177\n00:50:10.100 --> 00:50:10.600\nyellow.\n\n1178\n00:50:10.600 --> 00:50:11.960\nDo you know what I'm talking about?\n\n1179\n00:50:11.960 --> 00:50:12.960\nYeah.\n\n1180\n00:50:12.960 --> 00:50:15.280\nAnd you're like yellow energy or red energy or blue and jic.\n\n1181\n00:50:15.280 --> 00:50:17.640\nI can't remember the name of the personality thing, but we did it in our\n\n1182\n00:50:17.640 --> 00:50:18.080\ncompany.\n\n1183\n00:50:18.080 --> 00:50:24.240\nAnd a lady who performed the test called and she said, Kendra, I don't know.\n\n1184\n00:50:24.240 --> 00:50:27.160\nMaybe there's something wrong with the test you took.\n\n1185\n00:50:27.160 --> 00:50:28.400\nAnd I was like, why?\n\n1186\n00:50:28.400 --> 00:50:32.960\nAnd she said, because your yellow energy is off the charts.\n\n1187\n00:50:32.960 --> 00:50:36.880\nI've never seen anybody that has that much yellow energy.\n\n1188\n00:50:36.880 --> 00:50:40.640\nSo we joked about it in my company that like they really thought the test was\n\n1189\n00:50:40.640 --> 00:50:41.760\ndefective.\n\n1190\n00:50:41.760 --> 00:50:45.400\nAnd so it was, it was kind of fitting that that, and that was yellow was on the\n\n1191\n00:50:45.400 --> 00:50:45.760\nmark\n\n1192\n00:50:45.760 --> 00:50:46.760\nfor one of our colors.\n\n1193\n00:50:46.760 --> 00:50:47.760\nAnd it was like, duh.\n\n1194\n00:50:47.760 --> 00:50:48.760\nIt's got to be yellow.\n\n1195\n00:50:48.760 --> 00:50:54.570\nKendra, do you see yourself as a trendsetter, you know, staying on top of\n\n1196\n00:50:54.570 --> 00:50:55.520\ntrends?\n\n1197\n00:50:55.520 --> 00:50:57.520\nYou see yourself as a trendsetter.\n\n1198\n00:50:57.520 --> 00:51:01.200\nAnd what's your process for staying on top of the trends?\n\n1199\n00:51:01.200 --> 00:51:06.900\nYeah, you know, from learning from my ancho and I'm so interested and excited\n\n1200\n00:51:06.900 --> 00:51:07.920\nabout how\n\n1201\n00:51:07.920 --> 00:51:10.520\nfashion and trends work.\n\n1202\n00:51:10.520 --> 00:51:15.240\nBut what I think I'm most interested in is what my customers want.\n\n1203\n00:51:15.240 --> 00:51:20.430\nAnd so, you know, I love that we have social media because I can read and I do\n\n1204\n00:51:20.430 --> 00:51:21.560\nevery comment\n\n1205\n00:51:21.560 --> 00:51:26.590\nabout when we're showing or if we're testing product, I'm listening all the\n\n1206\n00:51:26.590 --> 00:51:27.400\ntime to her\n\n1207\n00:51:27.400 --> 00:51:32.670\nand watching and looking around me and trying to see what is trending not just\n\n1208\n00:51:32.670 --> 00:51:33.840\nin the runways\n\n1209\n00:51:33.840 --> 00:51:34.840\nor in fashion.\n\n1210\n00:51:34.840 --> 00:51:37.400\nBut what is trending in certain regions?\n\n1211\n00:51:37.400 --> 00:51:40.980\nWhat people are wearing in California versus New York or what colors are out\n\n1212\n00:51:40.980 --> 00:51:41.520\nthere?\n\n1213\n00:51:41.520 --> 00:51:46.060\nAnd of course, wanting to bring trends, but I want them to be relatable to our\n\n1214\n00:51:46.060 --> 00:51:46.920\ncustomer.\n\n1215\n00:51:46.920 --> 00:51:51.160\nI want her to love them and feel comfortable wearing them.\n\n1216\n00:51:51.160 --> 00:51:56.920\nAnd so it's that balance of trend setting, but also making it attainable and\n\n1217\n00:51:56.920 --> 00:51:58.200\nalso something\n\n1218\n00:51:58.200 --> 00:52:00.320\nthat she's going to feel comfortable wearing.\n\n1219\n00:52:00.320 --> 00:52:03.420\nYou alluded to it a little bit earlier, so I want to ask you a question about\n\n1220\n00:52:03.420 --> 00:52:03.680\nit.\n\n1221\n00:52:03.680 --> 00:52:08.480\nYou talked about people taking you seriously, being, you know, southern,\n\n1222\n00:52:08.480 --> 00:52:10.320\nwhatever, you know,\n\n1223\n00:52:10.320 --> 00:52:11.320\nfemale.\n\n1224\n00:52:11.320 --> 00:52:15.920\nDo you run into any particular challenges coming up in business as a woman?\n\n1225\n00:52:15.920 --> 00:52:17.920\nOh, absolutely.\n\n1226\n00:52:17.920 --> 00:52:22.820\nI walked into many boardrooms where no one in the room looked like me and it\n\n1227\n00:52:22.820 --> 00:52:23.560\nwould, I\n\n1228\n00:52:23.560 --> 00:52:28.280\nknew that within the first five to 10 minutes, I just had to prove myself.\n\n1229\n00:52:28.280 --> 00:52:31.870\nI had to prove that I was smart, that I was business, I had business savvy,\n\n1230\n00:52:31.870 --> 00:52:32.520\nthat I knew\n\n1231\n00:52:32.520 --> 00:52:36.440\nwhat I was talking about, that I wasn't just an artist.\n\n1232\n00:52:36.440 --> 00:52:39.800\nAnd I think, you know, I was told that, you know, you go to school and you\n\n1233\n00:52:39.800 --> 00:52:40.400\nwould have\n\n1234\n00:52:40.400 --> 00:52:44.080\na major and there was these left brain and right brain.\n\n1235\n00:52:44.080 --> 00:52:48.180\nAnd if you were left brain, if you were creative, you couldn't be that business\n\n1236\n00:52:48.180 --> 00:52:48.640\nside.\n\n1237\n00:52:48.640 --> 00:52:52.320\nSo there's business minded people and then there's creative people.\n\n1238\n00:52:52.320 --> 00:52:57.280\nAnd I think for me, I am one of those people that I loved both.\n\n1239\n00:52:57.280 --> 00:53:00.640\nI love the art and I love design, but I love the business.\n\n1240\n00:53:00.640 --> 00:53:03.800\nI love trying to understand how business operated.\n\n1241\n00:53:03.800 --> 00:53:08.690\nAnd I just needed to meet people and learn and create that bridge that got me\n\n1242\n00:53:08.690 --> 00:53:09.320\nfrom the\n\n1243\n00:53:09.320 --> 00:53:12.080\ncreative side to the business side.\n\n1244\n00:53:12.080 --> 00:53:15.420\nAnd so I think, you know, today, what I'm trying to do, even with the Women's\n\n1245\n00:53:15.420 --> 00:53:16.160\nEntrepreneur\n\n1246\n00:53:16.160 --> 00:53:21.140\nand Leadership Institute at UT, is to, you know, we're basing it, which sounds\n\n1247\n00:53:21.140 --> 00:53:21.520\nlike a\n\n1248\n00:53:21.520 --> 00:53:25.150\nvery business program, entrepreneurial leadership, in the fine arts building at\n\n1249\n00:53:25.150 --> 00:53:25.920\nthe University\n\n1250\n00:53:25.920 --> 00:53:26.920\nof Texas.\n\n1251\n00:53:26.920 --> 00:53:32.510\nIt's open to all majors because every student should have the opportunity to\n\n1252\n00:53:32.510 --> 00:53:33.400\nlearn how to\n\n1253\n00:53:33.400 --> 00:53:35.320\nhave an entrepreneurial mindset.\n\n1254\n00:53:35.320 --> 00:53:39.480\nYou don't have to run a business to realize the benefits of that.\n\n1255\n00:53:39.480 --> 00:53:41.240\nAnd you just need the bridge.\n\n1256\n00:53:41.240 --> 00:53:44.360\nSomebody needs to give you the tools so that you can understand if you're an\n\n1257\n00:53:44.360 --> 00:53:44.960\nartist, how\n\n1258\n00:53:44.960 --> 00:53:48.880\ncould I take this art that I'm creating and create an amazing business?\n\n1259\n00:53:48.880 --> 00:53:52.400\nThe creative minds are the ones that are going to change the world.\n\n1260\n00:53:52.400 --> 00:53:55.200\nAnd so we need those people in business today.\n\n1261\n00:53:55.200 --> 00:53:59.820\nSo, you know, I think, you know, I want to give the tools to not just women and\n\n1262\n00:53:59.820 --> 00:54:00.280\nwe're\n\n1263\n00:54:00.280 --> 00:54:03.920\nopen to everybody, but it is the Women's Leadership Institute for a reason.\n\n1264\n00:54:03.920 --> 00:54:08.880\nI want them to walk into a room, into a boardroom, and they are the majority.\n\n1265\n00:54:08.880 --> 00:54:10.600\nAnd that is my hope for the future.\n\n1266\n00:54:10.600 --> 00:54:14.570\nWell, right now in your company, as I understand it, 95% of your team members\n\n1267\n00:54:14.570 --> 00:54:15.440\nare female.\n\n1268\n00:54:15.440 --> 00:54:16.440\nAre you okay with that?\n\n1269\n00:54:16.440 --> 00:54:18.240\nOh, are you kidding me?\n\n1270\n00:54:18.240 --> 00:54:19.240\nI love it.\n\n1271\n00:54:19.240 --> 00:54:20.240\nI love it.\n\n1272\n00:54:20.240 --> 00:54:21.240\nWe love it.\n\n1273\n00:54:21.240 --> 00:54:22.240\nWhat about it?\n\n1274\n00:54:22.240 --> 00:54:23.240\nWhat about us poor men?\n\n1275\n00:54:23.240 --> 00:54:24.240\nCome on.\n\n1276\n00:54:24.240 --> 00:54:28.520\nYou guys, we have, it's now more like 90%, just to be fair.\n\n1277\n00:54:28.520 --> 00:54:31.880\nWe have the most awesome men at Kendra Scott.\n\n1278\n00:54:31.880 --> 00:54:36.340\nAnd I think a lot of times, you know, it is our amazing men, not just an\n\n1279\n00:54:36.340 --> 00:54:37.480\norganization,\n\n1280\n00:54:37.480 --> 00:54:41.300\nbut you know, I have an amazing father who told me that I could be anything I\n\n1281\n00:54:41.300 --> 00:54:41.760\nwanted\n\n1282\n00:54:41.760 --> 00:54:42.760\nto be.\n\n1283\n00:54:42.760 --> 00:54:46.980\nSo we have to give a lot of credit to the amazing men out there in our lives\n\n1284\n00:54:46.980 --> 00:54:47.160\nbecause\n\n1285\n00:54:47.160 --> 00:54:50.480\nthose men who have been cheering us on and rooting for us are incredible.\n\n1286\n00:54:50.480 --> 00:54:54.940\nAnd so, yeah, we do have a lot of women, but you know, we only hire nice people\n\n1287\n00:54:54.940 --> 00:54:55.760\n, David.\n\n1288\n00:54:55.760 --> 00:55:02.040\nWe hire gracious, kind, thoughtful, our fashion in Austin, Texas is very\n\n1289\n00:55:02.040 --> 00:55:03.320\ndifferent than probably\n\n1290\n00:55:03.320 --> 00:55:07.080\nthe cutthroat fashion world and other, you know, other places.\n\n1291\n00:55:07.080 --> 00:55:10.880\nWe're a very loving company and we cheer each other on, we support each other.\n\n1292\n00:55:10.880 --> 00:55:14.760\nAnd if we've got somebody in the company that is not have that soul that does\n\n1293\n00:55:14.760 --> 00:55:15.280\nnot have\n\n1294\n00:55:15.280 --> 00:55:17.680\nthat, they can go work for someone else.\n\n1295\n00:55:17.680 --> 00:55:18.680\nIt's okay.\n\n1296\n00:55:18.680 --> 00:55:19.680\nThey don't get the, they don't last long.\n\n1297\n00:55:19.680 --> 00:55:20.680\nI can tell you that right now.\n\n1298\n00:55:20.680 --> 00:55:21.680\nNo, no.\n\n1299\n00:55:21.680 --> 00:55:23.780\nSo I got to ask you this.\n\n1300\n00:55:23.780 --> 00:55:29.320\nWhat advice do you give men on how to work best with and develop women into\n\n1301\n00:55:29.320 --> 00:55:30.160\nreally great\n\n1302\n00:55:30.160 --> 00:55:31.160\nleaders?\n\n1303\n00:55:31.160 --> 00:55:32.760\nYeah, I think that's a really great question.\n\n1304\n00:55:32.760 --> 00:55:34.920\nI think, you know, I've got three sons.\n\n1305\n00:55:34.920 --> 00:55:37.120\nOne is graduating from high school.\n\n1306\n00:55:37.120 --> 00:55:39.520\nSo he's going to be going off to college.\n\n1307\n00:55:39.520 --> 00:55:44.990\nAnd I think the biggest thing that we can teach our sons and our, or our\n\n1308\n00:55:44.990 --> 00:55:46.060\ndaughters is\n\n1309\n00:55:46.060 --> 00:55:53.600\nrespect is to respect people of every gender of every race.\n\n1310\n00:55:53.600 --> 00:55:59.150\nAnd to look for their star inside of them, that brightness inside of them, you\n\n1311\n00:55:59.150 --> 00:55:59.620\nknow,\n\n1312\n00:55:59.620 --> 00:56:00.820\neveryone has it.\n\n1313\n00:56:00.820 --> 00:56:04.820\nAnd sometimes somebody just needs to be able to pull it out of them.\n\n1314\n00:56:04.820 --> 00:56:07.660\nAnd I think, you know, we've just all got to do a great job of doing that.\n\n1315\n00:56:07.660 --> 00:56:12.880\nI think men that have helped women get to where we are today that have looked\n\n1316\n00:56:12.880 --> 00:56:13.540\nfor their\n\n1317\n00:56:13.540 --> 00:56:16.840\namazing, brilliant minds and have looked for the things that they have inside\n\n1318\n00:56:16.840 --> 00:56:17.700\nof them to\n\n1319\n00:56:17.700 --> 00:56:20.220\nsucceed are really important.\n\n1320\n00:56:20.220 --> 00:56:21.380\nWe should all be doing that.\n\n1321\n00:56:21.380 --> 00:56:24.790\nNo matter what, we should all be lifting each other up, supporting each other\n\n1322\n00:56:24.790 --> 00:56:25.400\nand cheering\n\n1323\n00:56:25.400 --> 00:56:27.800\neach other on when we have successes.\n\n1324\n00:56:27.800 --> 00:56:32.120\nWe've got to take the negativity out of it.\n\n1325\n00:56:32.120 --> 00:56:37.030\nAnd, you know, and I promise you, if we can do that, this world is going to be\n\n1326\n00:56:37.030 --> 00:56:37.600\na great\n\n1327\n00:56:37.600 --> 00:56:38.600\nplace.\n\n1328\n00:56:38.600 --> 00:56:41.750\nI'm with you all the way, you know, and I love the fact that you're a huge\n\n1329\n00:56:41.750 --> 00:56:42.640\nphilanthropist\n\n1330\n00:56:42.640 --> 00:56:46.920\nand you really give back and we could go on and on talking about all the things\n\n1331\n00:56:46.920 --> 00:56:47.320\nthat\n\n1332\n00:56:47.320 --> 00:56:48.320\nyou do.\n\n1333\n00:56:48.320 --> 00:56:50.880\nBut I want to address two specifics.\n\n1334\n00:56:50.880 --> 00:56:53.660\nFirst of all, could you tell us about Kendra?\n\n1335\n00:56:53.660 --> 00:56:54.660\nKendra cares.\n\n1336\n00:56:54.660 --> 00:56:55.660\nYeah.\n\n1337\n00:56:55.660 --> 00:57:01.580\nYou know, I love going to MD Anderson, going back there.\n\n1338\n00:57:01.580 --> 00:57:04.660\nThat's where they treated my stepfather when he had brain cancer.\n\n1339\n00:57:04.660 --> 00:57:08.660\nAnd I got a tour of the new pediatric cancer center there.\n\n1340\n00:57:08.660 --> 00:57:12.290\nAnd I was looking around and they do different therapy activities just to get\n\n1341\n00:57:12.290 --> 00:57:12.940\nthe kids out\n\n1342\n00:57:12.940 --> 00:57:13.940\nof their room.\n\n1343\n00:57:13.940 --> 00:57:17.120\nAnd there are a lot of things for like really young kids, but there wasn't a\n\n1344\n00:57:17.120 --> 00:57:18.000\nlot of activities\n\n1345\n00:57:18.000 --> 00:57:19.940\nthat really bridged all ages.\n\n1346\n00:57:19.940 --> 00:57:23.480\nAnd I thought, you know, wouldn't it be cool if we brought our color bar up to\n\n1347\n00:57:23.480 --> 00:57:24.280\nthe pediatric\n\n1348\n00:57:24.280 --> 00:57:25.840\ncancer center?\n\n1349\n00:57:25.840 --> 00:57:28.650\nAnd we had coloring sheets for the little kids so they could color their\n\n1350\n00:57:28.650 --> 00:57:29.260\ndesigns and\n\n1351\n00:57:29.260 --> 00:57:31.520\nthen watch, pick the stones they wanted.\n\n1352\n00:57:31.520 --> 00:57:34.500\nAnd we would give them a piece of jewelry just to brighten their day, just to\n\n1353\n00:57:34.500 --> 00:57:35.080\nbring them\n\n1354\n00:57:35.080 --> 00:57:36.320\nsome joy.\n\n1355\n00:57:36.320 --> 00:57:41.160\nAnd so we piloted this program at MD Anderson in their pediatric center.\n\n1356\n00:57:41.160 --> 00:57:46.520\nAnd we had kids better, three years old on up to 16 years old, you know, kids\n\n1357\n00:57:46.520 --> 00:57:47.000\nthat were\n\n1358\n00:57:47.000 --> 00:57:48.160\ntoo sick to get out of bed.\n\n1359\n00:57:48.160 --> 00:57:51.290\nAnd we'd bring an iPad, they could design what they wanted and the nurses would\n\n1360\n00:57:51.290 --> 00:57:51.680\nbring\n\n1361\n00:57:51.680 --> 00:57:53.380\nthem in their gift.\n\n1362\n00:57:53.380 --> 00:57:56.990\nAnd they, you know, we'd go back and they'd all be wearing their bracelets or\n\n1363\n00:57:56.990 --> 00:57:58.320\ntheir earrings.\n\n1364\n00:57:58.320 --> 00:58:02.420\nLittle boys were making them for their moms who was sitting by their bedside.\n\n1365\n00:58:02.420 --> 00:58:04.660\nSo before Mother's Day we went in.\n\n1366\n00:58:04.660 --> 00:58:08.500\nAnd it was just such an amazing thing to see how much joy this brought.\n\n1367\n00:58:08.500 --> 00:58:13.820\nAnd so that one hospital is now turned into 31 hospitals across the country.\n\n1368\n00:58:13.820 --> 00:58:16.460\nWe do Kendra cares every single month.\n\n1369\n00:58:16.460 --> 00:58:20.200\nWe haven't been able to do it in the last few months because of COVID, but we\n\n1370\n00:58:20.200 --> 00:58:20.660\ncannot\n\n1371\n00:58:20.660 --> 00:58:25.300\nwait to get back into our hospitals and just keep continuing to bring joy.\n\n1372\n00:58:25.300 --> 00:58:29.450\nThousands and thousands of patients and their caregivers are benefiting from\n\n1373\n00:58:29.450 --> 00:58:30.200\nthis program\n\n1374\n00:58:30.200 --> 00:58:31.820\nas well as nurses.\n\n1375\n00:58:31.820 --> 00:58:33.620\nWe'd like to spoil our nurses too.\n\n1376\n00:58:33.620 --> 00:58:34.620\nI love it.\n\n1377\n00:58:34.620 --> 00:58:35.620\nI love it.\n\n1378\n00:58:35.620 --> 00:58:39.220\nYou know, we have the Novak Children's Care Center here in Louisville.\n\n1379\n00:58:39.220 --> 00:58:41.980\nIt's new and it's fantastic and we're trying to break.\n\n1380\n00:58:41.980 --> 00:58:42.980\nCongratulations.\n\n1381\n00:58:42.980 --> 00:58:45.220\nWe're going to try to hit you up for one of these.\n\n1382\n00:58:45.220 --> 00:58:46.220\nI think that'd be fantastic.\n\n1383\n00:58:46.220 --> 00:58:48.260\nYou know, consider it done.\n\n1384\n00:58:48.260 --> 00:58:49.460\nConsider it done.\n\n1385\n00:58:49.460 --> 00:58:51.940\nI have to ask you this.\n\n1386\n00:58:51.940 --> 00:58:54.590\nUnderstand you build a home and I don't bring up the home because you built\n\n1387\n00:58:54.590 --> 00:58:55.500\nthis nice fancy\n\n1388\n00:58:55.500 --> 00:58:59.260\nhome, but I understand you have a really unique feature in your home as it\n\n1389\n00:58:59.260 --> 00:59:00.860\nrelates to philanthropy.\n\n1390\n00:59:00.860 --> 00:59:01.860\nYes.\n\n1391\n00:59:01.860 --> 00:59:02.860\nWho told you that David?\n\n1392\n00:59:02.860 --> 00:59:05.340\nI know, I just kind of get around a little bit.\n\n1393\n00:59:05.340 --> 00:59:06.340\nOkay.\n\n1394\n00:59:06.340 --> 00:59:07.340\nI do my homework.\n\n1395\n00:59:07.340 --> 00:59:08.340\nI try to do my homework.\n\n1396\n00:59:08.340 --> 00:59:09.340\nThat's pretty exciting.\n\n1397\n00:59:09.340 --> 00:59:10.340\nI'm excited about talking to you.\n\n1398\n00:59:10.340 --> 00:59:12.020\nOh, I'm excited to talk about you too.\n\n1399\n00:59:12.020 --> 00:59:15.180\nYeah, you know, this home for me was a special project.\n\n1400\n00:59:15.180 --> 00:59:19.220\nI obviously did not grow up in a very big house.\n\n1401\n00:59:19.220 --> 00:59:23.700\nWe lived in, you know, a little town in Wisconsin and was very modest\n\n1402\n00:59:23.700 --> 00:59:25.260\nupbringing, but I wanted\n\n1403\n00:59:25.260 --> 00:59:28.980\nto build something that not it wasn't even a just about for our family.\n\n1404\n00:59:28.980 --> 00:59:33.230\nIt was about what can I do to leave a legacy and so building the house, we\n\n1405\n00:59:33.230 --> 00:59:34.180\nwanted to keep\n\n1406\n00:59:34.180 --> 00:59:40.400\na pristine place in Austin that was an older property, you know, in a very nice\n\n1407\n00:59:40.400 --> 00:59:41.340\narea town,\n\n1408\n00:59:41.340 --> 00:59:44.140\nbut it had four acres, which is unheard of.\n\n1409\n00:59:44.140 --> 00:59:45.620\nAnd I wanted to keep it intact.\n\n1410\n00:59:45.620 --> 00:59:47.740\nI wanted to keep it what it should be.\n\n1411\n00:59:47.740 --> 00:59:51.830\nAnd I wanted to be able to have it so that we could do charitable events here\n\n1412\n00:59:51.830 --> 00:59:52.540\nand really\n\n1413\n00:59:52.540 --> 00:59:54.300\nbe able to support our community.\n\n1414\n00:59:54.300 --> 00:59:58.950\nSo built it with that in mind, with having a vet lawn space and places where we\n\n1415\n00:59:58.950 --> 00:59:59.460\ncould\n\n1416\n00:59:59.460 --> 01:00:03.040\nhave these events so that nonprofits wouldn't have to pay for event fees\n\n1417\n01:00:03.040 --> 01:00:03.900\nbecause that's\n\n1418\n01:00:03.900 --> 01:00:05.340\nso expensive for nonprofits.\n\n1419\n01:00:05.340 --> 01:00:08.900\nAnd this way, more money could go back to their nonprofit.\n\n1420\n01:00:08.900 --> 01:00:10.140\nAnd then thinking bigger about it.\n\n1421\n01:00:10.140 --> 01:00:13.620\nI thought, you know, we don't want this in our family.\n\n1422\n01:00:13.620 --> 01:00:15.020\nWe want it for the community.\n\n1423\n01:00:15.020 --> 01:00:22.190\nAnd so once we're out, this is a gift to our community in Texas and to be able\n\n1424\n01:00:22.190 --> 01:00:22.900\nto use\n\n1425\n01:00:22.900 --> 01:00:25.020\nit as a place for philanthropy.\n\n1426\n01:00:25.020 --> 01:00:28.140\nAnd so we'll be gifting my home after that.\n\n1427\n01:00:28.140 --> 01:00:31.500\nSo I'm just a store to take care of it until then.\n\n1428\n01:00:31.500 --> 01:00:32.500\nThat's great.\n\n1429\n01:00:32.500 --> 01:00:33.500\nThat's great.\n\n1430\n01:00:33.500 --> 01:00:36.950\nWell, I definitely want to congratulate you on the Kendra Scott Entrepreneurial\n\n1431\n01:00:36.950 --> 01:00:37.300\nCenter\n\n1432\n01:00:37.300 --> 01:00:39.940\nfor Women at the University of Texas.\n\n1433\n01:00:39.940 --> 01:00:44.550\nWhat would be your three most important bits of advice you give aspiring\n\n1434\n01:00:44.550 --> 01:00:46.020\nleaders and entrepreneurs\n\n1435\n01:00:46.020 --> 01:00:47.460\nand especially women?\n\n1436\n01:00:47.460 --> 01:00:53.300\nYou know, I was so excited about building this institute for a lot of reasons.\n\n1437\n01:00:53.300 --> 01:00:59.400\nBut I wanted to be able to provide a place, a safe place that women could go\n\n1438\n01:00:59.400 --> 01:01:00.340\nand really\n\n1439\n01:01:00.340 --> 01:01:05.990\nbe able to find the confidence within themselves, to overcome any obstacle that\n\n1440\n01:01:05.990 --> 01:01:07.100\nthey get faced\n\n1441\n01:01:07.100 --> 01:01:08.540\nwith throughout their lives.\n\n1442\n01:01:08.540 --> 01:01:10.260\nAnd there will be many.\n\n1443\n01:01:10.260 --> 01:01:15.780\nTo understand that failure can be a gift in how to navigate those moments.\n\n1444\n01:01:15.780 --> 01:01:22.020\nTo be inspired by amazing other leaders in all different facets of business and\n\n1445\n01:01:22.020 --> 01:01:22.820\nindustry\n\n1446\n01:01:22.820 --> 01:01:28.170\nto see their stories of failure, success, how they got there so that they can\n\n1447\n01:01:28.170 --> 01:01:29.420\nlearn from\n\n1448\n01:01:29.420 --> 01:01:31.340\npeople in their actual lives.\n\n1449\n01:01:31.340 --> 01:01:33.900\nAnd so for me, I want to inspire them.\n\n1450\n01:01:33.900 --> 01:01:38.820\nI want to give them the ability and educate them and build that bridge.\n\n1451\n01:01:38.820 --> 01:01:41.950\nNo matter what they're doing, giving them the tools that they need, that they\n\n1452\n01:01:41.950 --> 01:01:42.420\nfeel like\n\n1453\n01:01:42.420 --> 01:01:46.500\nthey may be lacking to make them feel like they can go out and leave the\n\n1454\n01:01:46.500 --> 01:01:47.540\nuniversity.\n\n1455\n01:01:47.540 --> 01:01:52.460\nThis unbelievably confident person who can tackle the world and also leave it\n\n1456\n01:01:52.460 --> 01:01:53.260\nbetter than\n\n1457\n01:01:53.260 --> 01:01:54.460\nthey found it.\n\n1458\n01:01:54.460 --> 01:01:59.180\nSo philanthropy is also teaching them the power of giving back.\n\n1459\n01:01:59.180 --> 01:02:00.180\nFantastic.\n\n1460\n01:02:00.180 --> 01:02:03.220\nThis has been a blast for me, but I want to kind of wrap this up with a\n\n1461\n01:02:03.220 --> 01:02:04.060\nlightning round\n\n1462\n01:02:04.060 --> 01:02:05.060\nof Q&A.\n\n1463\n01:02:05.060 --> 01:02:06.060\nOh, great.\n\n1464\n01:02:06.060 --> 01:02:07.060\nOh, geez.\n\n1465\n01:02:07.060 --> 01:02:08.060\nOkay.\n\n1466\n01:02:08.060 --> 01:02:10.260\nWhat's the one word that best describes you?\n\n1467\n01:02:10.260 --> 01:02:11.260\nOptimistic.\n\n1468\n01:02:11.260 --> 01:02:14.820\nIf you could, oh, no, I don't believe that.\n\n1469\n01:02:14.820 --> 01:02:18.260\nIf you could trade places with one person for a day, who would it be?\n\n1470\n01:02:18.260 --> 01:02:20.060\nThis is so hard.\n\n1471\n01:02:20.060 --> 01:02:22.420\nOne person for a day, Lady Gaga.\n\n1472\n01:02:22.420 --> 01:02:23.420\nOkay.\n\n1473\n01:02:23.420 --> 01:02:25.300\nI love the dog myself.\n\n1474\n01:02:25.300 --> 01:02:29.140\nYou know, mine was Bruce Springsteen, by the way.\n\n1475\n01:02:29.140 --> 01:02:32.500\nWhat one thing about you that few people would know?\n\n1476\n01:02:32.500 --> 01:02:35.260\nI can speak in a lot of different accents.\n\n1477\n01:02:35.260 --> 01:02:37.660\nDo you have any hidden talents?\n\n1478\n01:02:37.660 --> 01:02:42.420\nOh, I like to, I like, I don't know, I don't know if I have a hidden talent.\n\n1479\n01:02:42.420 --> 01:02:44.220\nI don't think I do.\n\n1480\n01:02:44.220 --> 01:02:45.220\nOkay.\n\n1481\n01:02:45.220 --> 01:02:49.230\nAnd I want to ask you this, and this goes back to, I think what your company's\n\n1482\n01:02:49.230 --> 01:02:49.780\nall about\n\n1483\n01:02:49.780 --> 01:02:50.860\nfamily.\n\n1484\n01:02:50.860 --> 01:02:53.620\nThey call you as I understand it, mama K in-house.\n\n1485\n01:02:53.620 --> 01:02:54.620\nYeah.\n\n1486\n01:02:54.620 --> 01:02:55.620\nOkay.\n\n1487\n01:02:55.620 --> 01:02:59.320\nAnd I'll talk a little bit about how motherhood and being a mom comes into play\n\n1488\n01:02:59.320 --> 01:03:00.140\nwhen you think\n\n1489\n01:03:00.140 --> 01:03:02.860\nabout your company and what you're trying to do.\n\n1490\n01:03:02.860 --> 01:03:03.860\nAbsolutely.\n\n1491\n01:03:03.860 --> 01:03:06.900\nYou know, I started this business when my first son was born.\n\n1492\n01:03:06.900 --> 01:03:08.780\nHe was a newborn.\n\n1493\n01:03:08.780 --> 01:03:11.060\nWe would go door to door when he was three months old.\n\n1494\n01:03:11.060 --> 01:03:16.180\nSo building a business that allowed me to be a great mother was paramount.\n\n1495\n01:03:16.180 --> 01:03:20.250\nAnd I wanted to create that same environment for other mothers and fathers, a\n\n1496\n01:03:20.250 --> 01:03:20.940\nplace where\n\n1497\n01:03:20.940 --> 01:03:23.940\nhaving a family was an exciting thing.\n\n1498\n01:03:23.940 --> 01:03:26.780\nAnd that we could support and love each other around it.\n\n1499\n01:03:26.780 --> 01:03:30.700\nAnd I am the mother to my Kendra Scott employees.\n\n1500\n01:03:30.700 --> 01:03:33.580\nI care for them like a mother does.\n\n1501\n01:03:33.580 --> 01:03:35.340\nI want to protect them.\n\n1502\n01:03:35.340 --> 01:03:37.220\nI want to see them thrive.\n\n1503\n01:03:37.220 --> 01:03:40.460\nI want to see them live their best, most happy lives.\n\n1504\n01:03:40.460 --> 01:03:44.750\nYou know, it's so crazy how we have so many employees that may have worked for\n\n1505\n01:03:44.750 --> 01:03:45.060\nme for\n\n1506\n01:03:45.060 --> 01:03:48.060\nfive years or six years and they may start to do something else.\n\n1507\n01:03:48.060 --> 01:03:49.700\nI am excited for them.\n\n1508\n01:03:49.700 --> 01:03:50.700\nI check in with them.\n\n1509\n01:03:50.700 --> 01:03:52.820\nI want to find out what they're doing.\n\n1510\n01:03:52.820 --> 01:03:55.260\nNot many business owners think that way.\n\n1511\n01:03:55.260 --> 01:03:57.260\nMany of them end up coming back, by the way.\n\n1512\n01:03:57.260 --> 01:03:58.660\nThey're like, can we come back?\n\n1513\n01:03:58.660 --> 01:04:00.300\nWe want to go back to the nest.\n\n1514\n01:04:00.300 --> 01:04:02.300\nThey call our office to the nest.\n\n1515\n01:04:02.300 --> 01:04:04.780\nAnd so much better.\n\n1516\n01:04:04.780 --> 01:04:08.260\nBut I think that's my role is and mothers do.\n\n1517\n01:04:08.260 --> 01:04:12.500\nThey are fiercely protective of their home and their family.\n\n1518\n01:04:12.500 --> 01:04:16.420\nAnd we're going to do everything we can to keep everybody growing and\n\n1519\n01:04:16.420 --> 01:04:17.100\nsucceeding.\n\n1520\n01:04:17.100 --> 01:04:20.180\nAnd that's my goal as CEO of this brand.\n\n1521\n01:04:20.180 --> 01:04:21.180\nGreat.\n\n1522\n01:04:21.180 --> 01:04:22.180\nChief Mom.\n\n1523\n01:04:22.180 --> 01:04:23.180\nThat's great.\n\n1524\n01:04:23.180 --> 01:04:27.540\nWell, I have three sons, but I have thousands of daughters.\n\n1525\n01:04:27.540 --> 01:04:32.920\nSo I get all of my girl energy from all of my, you know, female Kendra Scott\n\n1526\n01:04:32.920 --> 01:04:34.300\nteam members.\n\n1527\n01:04:34.300 --> 01:04:38.670\nI want to close Kendra by going back to the beginning when I talked about Mary\n\n1528\n01:04:38.670 --> 01:04:39.100\nKay.\n\n1529\n01:04:39.100 --> 01:04:43.720\nI understand you were recently inducted into the Texas Business Hall of Fame,\n\n1530\n01:04:43.720 --> 01:04:44.580\njoining Mary\n\n1531\n01:04:44.580 --> 01:04:45.580\nKay.\n\n1532\n01:04:45.580 --> 01:04:46.580\nYeah.\n\n1533\n01:04:46.580 --> 01:04:48.620\nAnd I want to ask you, how did that make you feel?\n\n1534\n01:04:48.620 --> 01:04:52.840\nI don't think there's that many women in the Hall of Fame in Texas and doing it\n\n1535\n01:04:52.840 --> 01:04:53.380\nwith Mary\n\n1536\n01:04:53.380 --> 01:04:54.380\nKay.\n\n1537\n01:04:54.380 --> 01:04:58.020\nYeah, I was number 12, the 12th woman.\n\n1538\n01:04:58.020 --> 01:05:01.020\nMary Kay Ash was the first.\n\n1539\n01:05:01.020 --> 01:05:05.220\nShe was the very first woman to be inducted into the Texas Business Hall of\n\n1540\n01:05:05.220 --> 01:05:05.660\nFame.\n\n1541\n01:05:05.660 --> 01:05:08.820\nAnd my mother actually accepted the award on my behalf.\n\n1542\n01:05:08.820 --> 01:05:10.620\nAnd it was a really moving speech.\n\n1543\n01:05:10.620 --> 01:05:12.020\nMy father had had a heart attack.\n\n1544\n01:05:12.020 --> 01:05:14.020\nSo I was with him.\n\n1545\n01:05:14.020 --> 01:05:18.520\nAnd my mom accepted and she told that story how she couldn't believe that her\n\n1546\n01:05:18.520 --> 01:05:19.220\nlittle girl\n\n1547\n01:05:19.220 --> 01:05:23.630\nthat would help her unpack her boxes of Mary Kay cosmetics and put them on the\n\n1548\n01:05:23.630 --> 01:05:24.180\nshelf in\n\n1549\n01:05:24.180 --> 01:05:28.720\nour laundry room and help deliver the product to her customers would someday\n\n1550\n01:05:28.720 --> 01:05:29.940\nhave been inducted\n\n1551\n01:05:29.940 --> 01:05:33.100\ninto a Hall of Fame with Mary Kay Ash herself.\n\n1552\n01:05:33.100 --> 01:05:37.260\nIt's surreal, but it goes to show you that anything in life is truly possible\n\n1553\n01:05:37.260 --> 01:05:39.180\nif you believe.\n\n1554\n01:05:39.180 --> 01:05:42.140\nAnd you know, I had parents that told me I could do anything.\n\n1555\n01:05:42.140 --> 01:05:45.560\nAnd I think if we can keep telling our children that it doesn't matter where\n\n1556\n01:05:45.560 --> 01:05:46.380\nyou come from,\n\n1557\n01:05:46.380 --> 01:05:50.140\ndream big because something like that could happen to you too.\n\n1558\n01:05:50.140 --> 01:05:52.380\nKendra, you are definitely a bumblebee.\n\n1559\n01:05:52.380 --> 01:05:53.940\nThere's no question about that.\n\n1560\n01:05:53.940 --> 01:05:58.710\nAnd I want to thank you so much for taking so much time to share your insights\n\n1561\n01:05:58.710 --> 01:05:59.260\nand the\n\n1562\n01:05:59.260 --> 01:06:02.800\noffice of Asians because you understand business and you have really\n\n1563\n01:06:02.800 --> 01:06:04.020\nestablished the magic\n\n1564\n01:06:04.020 --> 01:06:05.020\nof the end.\n\n1565\n01:06:05.020 --> 01:06:06.020\nYou are creative.\n\n1566\n01:06:06.020 --> 01:06:09.860\nYou're an artist and you know business cold and you can do both.\n\n1567\n01:06:09.860 --> 01:06:12.340\nSo thanks for inspiring us to do that.\n\n1568\n01:06:12.340 --> 01:06:14.540\nWell, it sure means a lot to hear that from you.\n\n1569\n01:06:14.540 --> 01:06:16.660\nI was just as big of a fan of yours.\n\n1570\n01:06:16.660 --> 01:06:17.660\nTrust me.\n\n1571\n01:06:17.660 --> 01:06:19.940\nSo you may be getting a call from me asking for advice.\n\n1572\n01:06:19.940 --> 01:06:22.580\nHopefully you won't mind giving me some.\n\n1573\n01:06:22.580 --> 01:06:24.380\nI think I'll take it.\n\n1574\n01:06:24.380 --> 01:06:25.380\nSo thank you.\n\n1575\n01:06:25.380 --> 01:06:26.380\nWell, thank you so much.\n\n1576\n01:06:26.380 --> 01:06:27.380\nI have enjoyed this so much.\n\n1577\n01:06:27.380 --> 01:06:29.780\nI could talk to you all day.\n\n1578\n01:06:29.780 --> 01:06:39.820\nWell, I love it when I see bureaucracy busters.\n\n1579\n01:06:39.820 --> 01:06:44.860\nAnd Kendra's sister rule of customer service is truly brilliant.\n\n1580\n01:06:44.860 --> 01:06:48.980\nNobody's going to remember every policy in a handbook and who would want to.\n\n1581\n01:06:48.980 --> 01:06:52.260\nBut everybody knows how to help someone they care about.\n\n1582\n01:06:52.260 --> 01:06:55.180\nEveryone knows how they would want to treat their sister.\n\n1583\n01:06:55.180 --> 01:06:59.220\nKendra just has this knack for getting to the heart of a complex problem and\n\n1584\n01:06:59.220 --> 01:06:59.860\ndistilling\n\n1585\n01:06:59.860 --> 01:07:03.180\nit down into a clear and simple solution.\n\n1586\n01:07:03.180 --> 01:07:05.900\nThe thing is, it's not really a knack.\n\n1587\n01:07:05.900 --> 01:07:08.300\nIt's hard work to simplify something.\n\n1588\n01:07:08.300 --> 01:07:14.170\nIt takes persistence and creativity and really hard work to boil something down\n\n1589\n01:07:14.170 --> 01:07:15.220\nto its very\n\n1590\n01:07:15.220 --> 01:07:16.220\nessence.\n\n1591\n01:07:16.220 --> 01:07:20.220\nAnd now it's time for my favorite part of our podcast episodes.\n\n1592\n01:07:20.220 --> 01:07:24.460\nThis is where I give you some coaching to help you develop as a leader.\n\n1593\n01:07:24.460 --> 01:07:28.540\nThis week, as part of your weekly personal development plan, here's what I want\n\n1594\n01:07:28.540 --> 01:07:28.900\nyou to\n\n1595\n01:07:28.900 --> 01:07:29.900\ndo.\n\n1596\n01:07:29.900 --> 01:07:34.780\nI want you to think about a recurring process or company policy in your world\n\n1597\n01:07:34.780 --> 01:07:35.500\nthat's just\n\n1598\n01:07:35.500 --> 01:07:37.820\nway too complicated.\n\n1599\n01:07:37.820 --> 01:07:41.420\nSchedule a block of time and work on simplifying it.\n\n1600\n01:07:41.420 --> 01:07:45.920\nIt may not be easy, but when you whack away at those needless complications,\n\n1601\n01:07:45.920 --> 01:07:46.340\nyour team's\n\n1602\n01:07:46.340 --> 01:07:51.300\ngoing to say it's about time and they're going to really appreciate you for it.\n\n1603\n01:07:51.300 --> 01:07:53.180\nSo do you want to know how leaders lead?\n\n1604\n01:07:53.180 --> 01:07:57.180\nWhat we learned today is the great leaders strive for simplicity.\n\n1605\n01:07:57.180 --> 01:08:01.230\nThanks again for tuning in to another episode of How Leaders Lead, where every\n\n1606\n01:08:01.230 --> 01:08:02.020\nThursday you\n\n1607\n01:08:02.020 --> 01:08:06.420\nget to listen in while I interview some of the very best leaders in the world.\n\n1608\n01:08:06.420 --> 01:08:10.210\nI make it a point to give you something simple on each episode that you can\n\n1609\n01:08:10.210 --> 01:08:11.020\napply to your\n\n1610\n01:08:11.020 --> 01:08:14.420\nbusiness so that you will become the best leader you can be.\n\n1611\n01:08:14.420 --> 01:08:15.420\nThank you.\n\n1612\n01:08:15.420 --> 01:08:16.420\nin the next video.\n\n1613\n01:08:16.420 --> 01:08:17.420\nin the next video.\n\n1614\n01:08:17.420 --> 01:08:18.420\nfor today's episode.\n\n1615\n01:08:18.420 --> 01:08:19.420\nthe next video.\n\n1616\n01:08:19.420 --> 01:08:20.420\nthe next video.\n\n1617\n01:08:20.420 --> 01:08:21.420\nthe next video.\n\n1618\n01:08:21.420 --> 01:08:22.420\nthe next video.\n\n1619\n01:08:22.420 --> 01:08:24.420\nYou\n\n1620\n01:08:24.420 --> 01:08:44.420\n[ Silence ]","

David Novak 0:03

Welcome to How leaders lead where every week you get to listen in while I interview some of the very best leaders in the world, I break down the key learning so that by the end of this episode, you'll have something simple you can apply as you develop into a better leader. That's what this podcast is all about. And today's guest is Kendra Scott, the founder and executive chairwoman of the popular jewelry brand, Kendra Scott. Now, here's a question for you. Have you ever gotten stuck because you felt so overwhelmed by how complicated Something seemed? I've been there, believe me, it happens sometimes when you launch a new initiative or start a new role, and especially when you come up against a new challenge. Sometimes in those moments, we as leaders can overcomplicate things. And when we get bogged down like that, it's really tough to make good decisions and keep our teams moving. Now, if you can relate to what I'm talking about, then you're going to love today's conversation with Kendra. She knows how to strive for simplicity when she comes up against a challenge. And let me tell you something, she has faced her fair share of challenges from a business failing early on in her career, to learn how to grow a business from the ground up and even manage him through crisis time and time again, and coming out stronger for it with persistence. She pinpoints the heart of an issue and creatively finds a simple effective solution. There's so much we can learn here about how to strive for simplicity. So here's my conversation with my good friend and soon to be yours. Kendra Scott.

Kendra, it's so exciting for me to have you with us today. And I want to start by asking about your very first employee, which I understand was your mother. And I know that she worked for Mary Kay. And by the way, my mother was an Avon lady. Okay. But anyway, I have to ask you this trivia question. Do you know how Mary Kay recognizes their high performers? Yes. All right. They would

Kendra Scott 2:10

give tokens and lots of times they were pins or brooches. And they were bumblebees, my mom had a lot of bumblebees, and she would wear them all on her like shoulder pad.

David Novak 2:24

It was the 80s like a general right.

Kendra Scott 2:28

They'd be all like sitting out and they were all different styles and colors, some headstones and then but it was a really big deal when she received some of these kids for sure.

David Novak 2:38

Why the bumblebee? That is a great

Kendra Scott 2:41

question.

David Novak 2:41

I had the answer. I had the answer. Okay, know why the bumblebee aerodynamically. The Bumblebee should not fly. But it does anyway. Isn't that cool?

Kendra Scott 2:52

That is so cool. So it just doesn't it doesn't wants to

David Novak 2:55

does it because it wants to and I was thinking about this. I was going, how does recognition play into your persona?

Kendra Scott 3:02

Oh, my gosh, I mean, first of all, I think you know, one thing that I learned a lot from my mom, and watching through Mary Kay was how important it is to recognize those that are working hard, that are doing a great job that are representing your company positively. And so you'll see you know, we do that daily, I don't think it has to be something that you have to wait to recognize somebody with, of course, we have our pillar awards at our annual meeting where we talk about our three pillars, which are family, fashion, and philanthropy and folks that are in our company that really, you know, just exemplify those pillars. But I believe in like kind of that high five factor. It's like, you know, on a great week, I want to recognize folks for what's going on and I think that recognition can be constant. So it's a big thing for me, you know, and I loved seeing it through Mary Kay and how much it meant to my mom was a director and her group she called them the Jan's jewels. So there you go, like it was, it was. It was destiny. And she called them the Jan's jewels and they would come to my house and we lived in Wisconsin, and in our basement, she would have her team meetings, and they would start out with the songs Mary Kay song, so they all be clapping and singing. And I'd sit on the steps as a little girl and I would hear my mom passing out ribbons and awards to her best sales associates and, and just seeing like the power of gratitude, and how those women on her team, not only were doing it for themselves, but they wanted to support each other and lift each other up. And it was just a great example for me and it stuck with me of what I wanted to create someday. I didn't know it at the time. But when I look back, I think now that had a big imprint for me for sure.

David Novak 4:51

I understand you have these Katju Kyndra cards. Tell me about that. A lot of good information. Yeah, well, I dig a little bit in

Kendra Scott 5:00

Uh, well, so in the in the olden days, when we just had our first store, and you know, I would bring my business cards with me wherever I went, like, you know, typical, that's what we did back then what it was before, you could just like put your iPhone up to somebody else's iPhone and give them your contact. We weren't quite there yet. technology wasn't quite there. So I would carry my business cards with me. And if I saw someone wearing my jewelry, I would first of all get so excited. And I would go up to them and I'd say, oh my gosh, she looks so beautiful in your Kendra Scott jewelry. Thank you for wearing my designs, I'd love for you to get a discount at the store next time you come in. So I would right you know, 15% off and I'd sign my name, Kendra Scott, bring this card in and they're gonna give you a discount. And I mean, I would do that all the time. And so I we finally thought one day well, what if we created cards and we could give them to all of our employees to pass out and so they became these little gold square almost like a you know, golden ticket like Willy Wonka. And it said, caught you and your Kendra on it, and they'd have a discount on the back. And so now those cards are distributed all of my employees nationwide have them and if they see anyone in an airport restaurant in the ladies restroom, if you're wearing Kendra Scott and you get caught and you're Kendra, you get a costume your Kendrick card, and you definitely get told, thank you from us for for supporting our brand.

David Novak 6:23

I love it. You know, I had a conversation once with Colin Powell and, and he was talking about the power of recognition. He says it shows that somebody's watching. And you know, you're recognizing your customers, which I love. And I want to get to how you started the Kendra Scott brand. But I've known and I've seen where you've written and said that you know you every day you've seen Kendra Scott's sales go up, you know, it's been growing. And then all of a sudden, here, you get hit with COVID 19. You know, what were you thinking the day that you had to close all your stores?

Kendra Scott 6:55

Oh, it was I mean, it was it was a tough day, I have to tell you, it was the tougher day. David is usually the night before you make those big decisions. And I you know, I remember very distinctly you know, in during the recession, sitting on my kitchen floor worrying how I was going to pay off a line of credit that the note got called because they considered my business high risk. And the night before having to go into an other banks to ask for help was scarier than the day itself. But on the night before we had to make that decision after hours and hours on the phone with our board. The thing that was paramount, there was no question to me what the right decision was, and the safety and the health of my chaos family, my employees and of our customers, which we consider our family was the most important thing. And, you know, I believe just like I saw what happened coming out of the recession, that it is the struggle that can make us stronger, and sometimes in the scariest, most uncertain times. And most magical, incredible things come out of it. I wouldn't be talking to you today, if the recession didn't happen. It forced me to change my business model COVID 19, this pandemic, this crisis is forcing us to get uncomfortable again. And sometimes you got to get uncomfortable to make great change. And it is causing us to do new and exciting things with our customers that we hadn't really thought about or maybe thought about if it was like, Oh, we'll get to that later. And it's really forced us to connect with our customer in a new and exciting way. And so from this challenge, I've learned so much and I'm excited for the future terrified and excited at the same time. Let's be truthful.

David Novak 8:41

So what advice can you give to others on how to prepare for something unexpected like this?

Kendra Scott 8:47

Well, you can't always prepare, right? I think it's important to run your business to where you have those rainy day funds. This is why they call them rainy day funds. It could be a recession fund, a pandemic fund a variety of natural disaster fund. But having some cushion is always helpful, right. Having great relationships with your banks is a really important thing to write and to run your business as effectively as you can. But to know that sometimes the greatest laid out plans are not always going to come to fruition. And that you have to be willing to pivot. You have to be agile, you have to be willing to shift. And you have to have a team that has that entrepreneurial spirit, no matter what size you are, you know right now we are acting like a startup again. And it is so fun. Because we're all rolling our sleeves up every day. We're collaboratively thinking and we're just making things happen. We're not waiting for all the red tape and tried to like, oh, let's strategize about this for four months and then let's do No, we're just going we're just throwing things up against the wall seeing what sticks and moving on each day and it's such a fun thing to be a part of. So I think from any business, you know, we We are trained that we have to do all these long term, you know, goal setting and planning and budget planning. And this is such a great lesson, you can do your two year plan your three year plan your five year plan. It's great. It's not not that it's not great to have a plan. But know that that plan very likely could get completely thrown out the window, and you've got to be ready to step in and be creative.

David Novak 10:25

I love that idea. You gotta be ready to ready to pivot, you know, and that's great.

Kendra Scott 10:29

You got to be agile, I think you can't be too like, this is how it is. And this is what we said we're going to do, and it's going to have to be this way, those businesses aren't going to be able to succeed, you got to go, Okay, this is our new normal today. And this is what we're going to do today. And the way I focus it every day is where is my customer today? What does she need from me and our company? How can I support her and give her what she needs? And I'm thinking of that every single day? Not five years out? I'm thinking about where she in this moment of her life? And how can I support her?

David Novak 11:02

Yeah, that's great. You know, I always think positive energy lifts you up negative energy brings you down, you're renowned for your positive attitude. Has it been hard for you with all this gloom and doom in this crazy time? Has it been hard for you to stay up?

Kendra Scott 11:16

You know, there, I think there's, you know, definitely ups and downs, and there's peaks and valleys, I am an eternal optimist, and anybody that knows me knows that I'm always looking for the silver lining, in in the darkest of days, but there have been days that you know, I have gone to bed at night. And my heart has been heavy, because of some of you know, the decisions we're making within our company are trying to figure out how we can support our employees while we're working through getting our stores reopened. And, you know, those moments are real. And they're real, because I love and care for my employees, like they're my family. And you know, when you are the leader of a company, those families matter to me. And so you know, I think but that's where the optimism comes in. Because if I let the doom and gloom and the knots in my stomach and my heavy heart take over, I won't be able to get up and do what I need to do to get this company where it needs to be. So all those people can live a happy life and a successful life with their families. And that's what drives me to jump out of bed and go okay, let's take this tiger on.

David Novak 12:20

Great. I'd like to go back to your childhood again. Can you tell me a story about a person when you were a kid that really influenced you the most on who you are today? I mean, did you have that special person that you looked up to?

Kendra Scott 12:35

I had a lot of special people, I'm lucky but I would say my mother and my aunt. Were two influential women in my life watching my mom be a you know, housewife and a mother and then build this business out of our like laundry room, through Mary Kay was so inspiring to see that and to see how she's still balanced being a wonderful mother, a caring mother, but she was had this fire in her to to do something and have her own career. So I really admired that. And then where I grew up was in a little small town in Wisconsin. And so it's not exactly the fashion like mecca of the world, David, okay.

David Novak 13:16

Fashion is everywhere, especially now where you're opening all these stores.

Kendra Scott 13:20

Right, right. But but back then it really wasn't. And my aunt lived in Milwaukee, Wisconsin, and she worked for a department store, and she was a fashion director. So that allowed her to go to all the fashion shows in Milan and Paris and you name it New York City. And she would come back with all the pictures on little slides of the shows. And she would show them to me in our basement, we'd be clicking through and she had to teach me then how to trend forecasts that was her job as fashion director, and how to take these really elaborate couture shows and, and designs but make them work for the real woman, the woman who's going to the grocery store and picking up her kids at school and heading to their you know, her office. And I think that was such a eye opener for me. And when I would go in her closet, and wear these clothes that she had and put on her, you know, jewelry and all the things. I didn't feel like a girl from a little town in Wisconsin, I felt like you know, a superstar or runway model. And in that moment, I realized fashion was magic. And it can transform how you feel. And I knew that that was something that I wanted to be a part of.

David Novak 14:31

Tell me about your first experience. The hatbox brand. Tell me about that.

Kendra Scott 14:35

Everyone loves to talk about the handbag. So I love it too. You know,

David Novak 14:39

why do they love to talk about cars? You

Kendra Scott 14:41

know, I think it's important to talk about the failures that people have. I think it was the greatest education that I could have ever gotten in retail. I started that business when I was 19 years old. And that was not the plan the plan for me clearly With my parents was to go to college and get a good education. And when I said that I was going to take some time off to pursue opening a hat store. My parents at first were like, okay, but surprisingly, supported me during that decision. My stepfather was battling brain cancer. And I had met so many men and women that were going through chemotherapy, losing their hair. And it inspired me because there weren't a lot of great headwear options that were comfortable and still make people feel good about themselves. And it just inspired me to want to try to do something. And so that's how the hat company got started. And I had every intention, honestly of going back to school someday. I really did believe it was a break. But the hatbox it was five years, I ran this little store, and I realized I couldn't just do hats for people undergoing chemotherapy. I made hats for everybody. I mean, you needed a wedding hat, Kentucky Derby, jester hat, Top Hat fedora. I mean, I had it. And I had this big vision, David, I was going to open hat stores across the country. Everyone was going to wear hats again, like it was 1940. That did not happen. No one where is I mean, people do wear hats, but not like 1940. And unfortunately, I after five years of trying to make this little store work, I worked seven days a week open to close, I couldn't do it. I was buying other designers hats, I was getting getting basically a keystone which 50% margin with overhead and everything else. It just couldn't make the numbers work. But I look at that. And when I had to close that store, and my stepfather passed away, right before that happened. I just felt like at that moment that I was the biggest failure I had let him down. I'd let my family down because I didn't pursue my college education. I you know, I all of those things going through me. And I realized, you know, when I started Kendra Scott that that store taught me retail 101 better than any college education could have given me. I understood margin, I understood overhead, I understood what it felt like to make payroll, I understood how to handle a flow. Right. Like, there were so many things I learned that you couldn't read in a textbook that could have ever gotten me to that place. And so I think it's an important thing for entrepreneurs to share their failure stories, because they are the bridge to their success. And I don't know any entrepreneur that hasn't failed miserably, like, I mean, most of it was pretty miserable fail. That haven't said they're so thankful. Now it didn't in the time. It felt horrible in the moment, but now it's like one of the greatest gifts that was ever given.

David Novak 17:49

I have to ask you, though, five years, pouring your life into it, obviously, and for emotional reasons. What was your immediate next step? I mean, how do you pick yourself up the next day? You close a business what happens?

Kendra Scott 18:03

It was devastating. I mean, I can't tell you that it wasn't, but I had to go get a job, David, because I had I had rent to pay and I had, you know, bills I had to pay and I love my mom, but I didn't want to move back in with my mom. Okay. That would have been, that would have been like real all time low. So I'm like, I gotta pay for my little one bedroom apartment. I gotta pay for my food. So I went and got a job. I mean, that's what you got to do. Right? And so I worked I got a job with a travel company that had a magazine associated with it a travel magazine, and I worked there and and traveled. But what was funny is in my head store, I was making jewelry as just a side thing. And I would put it in the shelves and the day I'd put it in it would sell out. So the answer to my future was right in front of me, but I was so blinded that the hat thing had to work. I wasn't paying attention to what was working until I close the store. And customers from the hatbox are calling me Kendra. Do you think they're calling me for the hats David? No, they were calling me for the jewelry. They're like I want a pair of earrings to match the necklace I bought from you. Or I'd love to buy a necklace for my sister's birthday. So I was buying stones and supplies and making jewelry for my hatbox customers and realizing that's what they missed the most. This little just side thing that I kind of threw in there on the side because I enjoyed making it I thought it was just for me it was kind of like a fun thing a release of I'd like to go home and work with my hands. And I loved colored gemstones and I couldn't find them anywhere. So I was always buying

David Novak 19:45

or to learn how to make jewelry like that. I mean, how do you learn how to do it?

Kendra Scott 19:49

You're gonna laugh at this because I laugh at it too because I got told so many times when I started Kendra Scott, hit do it. What school did you go to? Did you go to Parsons fit? Where did you go to blah blah blah and I'm like, Well, I took a bead class at the local beach Shop in Austin, Texas. Then I took a class at the community college, a jewelry making class. And I that's what I did. And I literally would, we didn't have the ability even then to go on YouTube. And there wasn't any of this stuff to watch it. So yeah, I took little beat classes at the local beat store, and learned how to wire wrap and learn how to do basic things. And really just kind of self taught myself, I'd sometimes even break apart pieces of different jewelry to kind of see how they were made, what technique they used. So I could try to figure out how to replicate it. Wow, you

David Novak 20:40

know, so there's hatbox. There's a real silver lining in the cloud there, you get the marketing 101 of retail and fashion. And then you discover that you've really got a product line that people really, really love. That's, that's fantastic. You know, most entrepreneurs, and I want to talk to you about your Institute's you have a Texas later, but most entrepreneurs, entrepreneurs, they intuitively solve problems that exist in a category. You know, what problem did you solve when you when you launched the Kendra Scott brand?

Kendra Scott 21:12

You know, I think at the time, you have to look for the whitespace. In any market that you're looking at. Again, after the hatbox, I had to be honest, I wasn't thinking big like that. I was just looking about, well, what do I want that I can't find. And I wanted beautiful color, I love to semi precious stones, but I couldn't afford what was out there. So I thought I could make a beautiful jewelry line of handcrafted jewelry in this gorgeous semi precious stones, but attainable in price. For a woman, I think she would like that. And it was really because that's what I wanted what I desired. You know, and I think that's was the magic, there was costume kind of, you know, Claire's boutique, very low end. And then there was bridge jewelry, which is sterling silver, more expensive. But that fashion jewelry category, there was a missing piece that bridged fashion to the bridge jewelry to find. And I really felt like there was an opportunity there to do something special. And the other big thing that once I kind of got going, I realized everybody was using the same shape stones just buying from stone vendors and reworking it. So no one had a unique identity in the fashion jewelry category. And where I thought I wanted to be recognizable. I wanted to be when you saw my jewelry, you knew it was me. And so how could I do that. And I kept thinking about it. And it was shape and color. If I could play with enhancing natural stone and doing really cool color and then giving unique shape that we own to that shape. That could be a way to do it. And so in 2008, we introduced our first custom shape. And that's when you kind of start seeing the business really taking off when people were recognizing it and saying, are those countries that that was an exciting? That was an exciting moment.

David Novak 23:03

It's interesting, though, you know, I talked about entrepreneurs intuition. You wanted to create something you said that I want that I can't find. So you you solve the problem. And there are just a lot of people like you out there. You didn't know how big the market was, but that's how you went after it.

Kendra Scott 23:19

Well, and that's what you know, you look at Sara Blakely. I mean, that's exactly what she did. She needed this for herself. And it's, you know, it's the same kind of thing. A lot of times, it's what you want that you can't find, I promise you, there's a whole lot of other folks out there that feel the same way you do.

David Novak 23:36

And then carrying this a step further. You go into the retail store, she's you get into bricks and mortar. What problem did you solve there?

Kendra Scott 23:45

So this is interesting, because before 2010, so 2002 I started the company, so that here we are eight years, and I was just selling to other retailers. Because after the hatbox David, I was not going back into retail. That was scary. That was so scary, I would never want to go through that again. So I was just going along, building the business, but very gradually, no nothing leaps and bounds, no lightning in a bottle growth. Then recession hit and I realized all my eggs were in the basket of these buyers that worked for these other retailers. And then I didn't have a direct connection to my customer. And I was the one that I wanted to speak with her directly. And I didn't want anybody else to do that for me. And the recession really shifted how we run our business. And in 2010, we launched first our e commerce website, we launched an interactive experience. Again, I was like I want to be able to go in and bring a shirt or a dress and say I need a pair of earrings to match this tonight. And if you did that in my design studio, you'd see all of our stones and our designers would just put in stones in the settings and they'd go out to dinner with their friends with a custom pair of earrings. So we created color box AR, which was a customization thing that wasn't out there, nobody was this is before Nike ID launched their stuff. I mean, this was very, very new. And coming out of the recession, I was able to build this in Austin digitally for like, the biggest bargain in the world. And let me tell you, I tell our IT people this all the time when they show and I'm like, you know, I rub it in on what I created the first color bar with but but that was really innovative in that time to do something like that. And then I opened our first retail store, not again, thinking we would open retail stores all over the country, I really wanted it more as a laboratory to learn to listen to our customer have that interaction with her. But if I was going to do it, I wanted to do it my way. And I thought about okay, from a customer perspective, what do I love about going into jewelry stores, guess what, I didn't love anything about going into jewelry stores, before I hated going into a jewelry store, I immediately felt like I was being judged everything was under glass. If you ask for something, and you didn't want it, and they put it away, they kind of like I felt like I was embarrassed to ask for something else to see, it was a very intimidating experience and shopping for jewelry. So when I wanted to do was take all the scary away, I wanted to make it fun, inviting I wanted the jewelry really displayed where people could touch and feel it try it on, there was nobody looking at them. judgy the opposite, we'd hand you a glass of champagne and a cupcake on your way in, we had the color bar where you could interact and we would be visiting with you. We were very event driven, always having some type of event for community service. And so it really was this, it was a party in a store. I mean, it was so fun. And it was a community it was an experience that made people happy. And from day one, I believed that the most important thing we could do is create a connection with our customer that the transaction will follow. And the goal of the store was let's connect, let's learn from our customer, let's find out what she loves what she hates what she wants more of. And then let's utilize that to build the best collections we can. What happened was that experience was so magical, that we would have lines down the block to get in it was like they were releasing a new iPhone or something. I mean, it was unbelievable. People could not wait to get into our stores. And that's when we knew okay, maybe this isn't just a one store situation, maybe we could bring this to other places.

David Novak 27:37

So you totally disrupted the category before people were talking about disruption. You really, you changed the game in terms of what a jewelry store was really all about.

Kendra Scott 27:47

And I think that's funny, because right now they're like you were on the forefront of this disruptive. And I was like, you know, guys, I didn't know that's what we were doing. I again, just knew I wanted to do something unique and different. And if I was doing what everybody else was doing, why do it? Why do it because that wasn't clearly for me wasn't working. So I think you know, that mindset of you know, I always tell my managers to this day, never walk in the back door, I want you to walk in the front door of your store every day. And I want you to see it with fresh eyes like you've never been there before. And look at every single thing from the customer's perspective. And you're going to learn so much. And we do that every day we walked through the front door.

David Novak 28:29

Good, good. You know, you are obviously a tremendous innovator whether you know, it was just thinking about what you want it or not, how about you are an innovator, there's no doubt about it. Now you've got this big company, how do you drive the importance of innovation in your company?

Kendra Scott 28:45

I think it's one of our most important. Every day, I always say to our folks, we can never be complacent. And I think a lot of businesses start to get to certain levels. And they're like, oh, yeah, we're really on top of our game right now. And they can become a little complacent. That's when you have to work harder, in my opinion. And we are never complacent. Every day I say we have to wake up and we have to think about how am I going to surprise and delight my customer today? What are we going to do today that's going to surprise and delight her. Because to surprise somebody. It's not doing the same playbook that you did yesterday. You're doing something fresh, you're being innovative, you're you're connecting with her in unique ways. And you know when the pandemic hit, okay, we are used to this physical touch with our customer. And I believe still that human touch is so important, but you don't have to physically touch someone to touch them. You can touch their heart, you can touch their spirit, you can touch their mind, and we figuring out ways now how do we do that virtually? How do we do our Kendra Gibbs back events which are supporting local community charities. Well, we don't have stores to open. Well, we did them virtually and now we have 1200 of them booked because So many nonprofits need our help. You know, what do we do? Because our customer can't try on the earrings in the store anymore. You know, we used to, like I said, we had the signs that said, Have fun try on, we want you to play with the jewelry. Well, she can't physically do that right now, how do we solve this problem? Virtual Tryon? We did a program for virtual Tryon in a matter of weeks, because our team was able to just go I gave them the green light to make it happen. That there the red tape was taken away. We need virtual Tryon. Let's do it. That went live, you know, just a last month. So I think it's that conversation of, you know, where's our customer at? How can we surprise and delight her. And when you look at that, from that perspective, it makes making decisions a lot easier.

David Novak 30:43

You've got such a great insight on the customer, particularly in retail. I mean, everybody just talks about transactions, transactions, connections, what a great way to get your people to think about how to really satisfy customers. I love that. You've got a great way of simplifying Yeah, this thing called the SR rule. Yeah, talk about that. I love this. What do well, you

Kendra Scott 31:03

know, again, like you just said, I think so many companies, you'll get a customer service packet. That's like 200 pages, and you give them to a new employee. And you say here, here's our customer service and policies read this. Good luck, thank you. And they go home, and they're like, Oh, my God, mine is simple. It's a sister rule. This is your customer service. Okay, this is your policy. You treat every customer like they were your sister or your brother, hopefully you like your sister, your brother, what would you do for your sister, if she had a broken earring, you'd fix it. If she lost one earring but had the other what would you do give her 50% off on a new pair, it's just take care of her like family, treat your customer like you would your family. And I give every single associate part time holiday help interests, the power to please, you do not have to ask for manager approval in a Kendra Scott store. You in that moment you make a decision, the best decision you can but you make a decision and you help that customer. It's very simple. And when you give young associates that power, that trust that you believe in them, they will do magical things. If you don't believe in a part time sales associate, then you shouldn't have them on your floor, they're the most important person in your company are the people that are interacting with your customers. So if you don't think that they have the power to make a decision, why did you hire them? Right? So I think the mentality of customer service can be so simplified for businesses, they get over policy driven, and not that there aren't good foundations of how you handle things. But I also think it's important to think about how you can really empower your people to give the best service they possibly can every day.

David Novak 32:50

That is like the sister rule is it's so simple, as I mentioned, and you know, versus the 100 page manual on how to do all this stuff. You've got the sister rule, then you talk about connections versus transactions. Do you lay a bed at night and think about these things these ways to simplify? I mean, how do you take the complex and simplify it like that is it just come natural to you?

Kendra Scott 33:13

I mean, I don't I think the way I've always thought about it is you just you know you wear brand of kindness. I want to have something that spreads joy. And so it makes it really easy for me because if a customer walks in our store, that's a win, we have just one. Today, getting people to walk through your door in a brick and mortar is a win. That is a win, getting her to stay and enjoy her experience. Even if she doesn't buy something that day and she walks out smiling. We want again, because she will come back or she will go online or she will tell her friends about that experience. And I think we've got to get out of what we thought brick and mortar was built for. Today's goal is XYZ and these number of transactions. And if you don't do this today, and what is the number of you know, if the people came in and they didn't convert your conversion rate is off by this percentage you failed, you have failed. I don't look at it that way. Because I look at our overall business. I look at how a market is lifting. Are we driving revenue to our website, I'm driving revenue to our wholesale partners, are we seeing a lift? It has that lift happened because the store was there and that experience that we're giving and that community outreach that we're doing? That is success. That's how I measure success.

David Novak 34:38

We'll be back with the rest of my conversation with Kendra Scott in just a moment is your company's vision simple enough that all of your people can understand it and really get behind it. In my conversation with Larry mirlo, CEO of CVS Health, you'll hear how simplifying his vision made a massive difference in their company. I asked

Larry Merlo 34:57

everyone which one is the most sure which one is the vision? You got a 50% chance of getting it right. And that's exactly what we got 50% of the people got it right. Yeah. And I still remember in that meeting, making a commitment that look, this is the last time you're going to see this mission and this vision, because we haven't been able to operationalize it in terms of bringing a day to day meaning to our work. And if we can't answer that question as the leadership of the company, then how good a job are we doing leading the 1000s of individuals that are counting on us for that level of leadership and focus and direction?

David Novak 35:35

If you want to lead? Well, you need a simple and compelling vision. And you'll learn how to do that in my conversation with Larry, Episode 12 here on how leaders lead.

Kittery you've learned everything pretty much by yourself. You don't have the MBA, but you have the MBA by experience, for sure. You know how to make the jewelry out of source of jewelry, how to sell it? How did you go from being this basically one person band, you know, and now you've got this incredible organization? How do you have to change as a leader to scale the business?

Kendra Scott 36:14

The most important thing I think I realized early on, is I know what I'm great at. But I know what I'm not great. And that is the biggest lesson that any entrepreneur should know, any entrepreneur that thinks they know it all, that they are the king or queen of everything, and they can answer every problem. And they're the, that's where they fall down. And they will have you know, mud on their face. The biggest thing I learned right away is I knew if I could focus on the things that I was great at. And I could bring other people in, that were great at the things that I was not good at. But that's the things that they excelled in. And that we shared core values that they were kind, they were thoughtful, they understood our core values of family, that would be able to build a winning team. And that's the key is bringing people in at the right places, the right people that understand where you are. And also planning ahead, I didn't bring people in for today, I bring people in where I said, this is where I think our company's going in three years. I want to bring somebody in today that can get us there. If I'm bringing somebody in for where I am today, I'm not gonna go very far. So bringing in really great talent was important. And, you know, fortunately, we got incredibly lucky, we were lean, we were we would all roll our sleeves up. And that was that was part of the culture was we were a lot of hats, we do a lot of different things. No one's too good to do anything that Kendra Scott. And it was it was scrappy, and it was bootstrapped. And it was it still is a lot of fun. You have to

David Novak 37:51

put as you've gotten bigger, more process and discipline around what really matters. I mean, I know that doesn't even sound like your language. But big companies would say you got to have the process and discipline around what really matters. I mean, you've got your sister role, and you've got a lot of things that really make just such great common sense. But you're big now, you know, it's like how you open up stores, how you make money. What's your thoughts on process?

Kendra Scott 38:15

You know, no, look, you're absolutely right, you have to have those elements to run a successful business. But I think it's how you put processes in place that matter. Again, if you inundate folks with so much process, then you don't you lose that entrepreneurial spirit, that entrepreneurial mindset. And I think a lot of big companies get over processed. And from start to end becomes all of this minutia that people have to try to get through this forest of confusion, where when you're young, and you're agile, and you're a startup kind of mode, you're your points are much shorter. It's like here to here, here to here we go, go, go, go go. And I think for me trying to figure out ways that you obviously we want to give some process, but taking out all those trees and making the path a little bit clearer to walk on is my job. And I do look at it from a way of a 360 approach of I'll look down at that forest and when I start seeing too many snarly trees popping up, I try to go down and go, Hey, guys, we're overcomplicating, this, let's pull some things out. Let's make this a little easier. And let's empower our people. Let's empower these amazing people that we've hired to do great games. Let's do that.

David Novak 39:32

I want to sign up right now. I'm ready to go. You need a x marketing person or something like that. Hey, thanks. You know, I definitely tried to be kind so that's one of the good but, you know, tell me the story. You know, we talked about scaling, how do you go about raising the capital go national. I mean, that's, you know, it took a lot of money to get to where you're at.

Kendra Scott 39:55

Yeah. So, you know, when I started, I started out of my bedroom. And I started with $500, which is a true story, I first just got a line of credit, I signed everything I had up for collateral. I mean, I joke that like, I think the shoes I was wearing, the day I went and signed, the loan was probably also up for collateral. I mean, it was scrappy, as scrappy can get, and basically, you know, is trying to just reinvest everything to keep growing and building. And I didn't take on any investment capital for almost 11 years. I did, if you can believe that. I did it on lines of credit, debt and credit cards. I mean, that is how I was building the business. And in 2010, when we opened our first store, we just saw such an immediate, I mean, it was just unbelievable. With this little store was doing that we opened a few other stores, and they were also having incredible results. And we did this again with no financing. And I haven't I have a lot of mentors, I believe so much in and having great mentors around you. And one of my greatest mentors, I came in, I just said, you know, I'm trying to figure out what to do, how I go about doing all of this, like now we're opening stores, it's a big investment. I mean, it's my name, I'm personally guaranteeing everything at this point. And he said, you know, look, can I please invest. And I was weird back then a little bit about giving away equity. Because here I was, it's Kendra Scott, and I'm a standalone business. And I don't want to give up any equity like I want to own at all, you know. But when I looked at this partner, he was somebody that I wanted to have on my team, he believed in me, he's always been there for me. And so he was my first investor. And he got 5% of the company. So I wasn't given away too much at that point. He gave me a pretty fair valuation, we kind of I think our agreement was about six pages long, it wasn't very big. And it was it wasn't a huge amount, but it was able to get us to open a few more stores and keep the train moving and get the inventory levels that I needed. And then shortly thereafter we started getting are literally our phones are ringing and i What's funny about this, David is raising equity before I remember when the recession hit, I was like I need a partner, I need somebody to bring in equity. And it was like no one was like, how do you find these people? Like, where do you go about finding people to invest in you? And it wasn't easy at all. And people said we just need an angel. And I'm like, Yeah, hello. Tell me something. I don't know. Of course, I need an angel. I mean, a lot. Like, where do these? Yeah, like we're two angels, like, do they go they go somewhere where I don't like doing meet them somewhere. And so it was really crazy, because our phone started ringing. And one of my friends earlier it said Kendra, just build your business. And when you build it, they're gonna come to you. And it was like that, you know, if you build it, they will come. It was exactly that. We were building a business, it was getting attention. We were being disruptive. People notice lines outside of the store that wasn't happening anywhere. And boy did they come they were common, and they wanted to be a part of it. And so we had about 12 of private equity firms reaching out to us to invest in our first in that first round that we took in 2013.

David Novak 43:22

Wow, that's that's that's a great story. You know, Kendrick, you've pretty much done it on your own coming up anyway. So you had to be a pretty good self coach. How do you go about in this process of raising your own game as a leader, and and what are you working on today?

Kendra Scott 43:40

You know, I think every day I want to learn something. I I'm like a sponge. I love learning from other people. And so I'm always asking questions to from people. And I think a lot of people are scared to ask like, well, they're gonna think I'm stupid. If I ask a question. I disagree. I think it is an incredible sign of a great leader when they want to continue to learn something new every day, there is no way that we can ever learn everything, no matter how long we are on this earth. And I think it's such a thing for me that I want to wake up today and want to learn something new. So I took a entrepreneurial Master's course, through an organization called E Oh, that was in 2006 to 2009. It was three years I'd go to MIT. And we did this course it was 65 entrepreneurs from around the world. And we were learning from some of the greatest coolest entrepreneurs out there. Were teaching the class. And they gave us amazing books to read those three years as well that we would all talk about. And that was huge for me because it really gave me some good foundational things and how to run a business effectively. And so when you look at when I finished that course, in 2009, we had lost about 20 students because of the recession, they had lost their businesses. So there were about 40 You know, 45 of us left at graduation in 2009. And my business took off in 2010, like a rocket ship. And so I really think a lot of those foundational elements of what I learned from all these other entrepreneurs really helped me. I love reading. And you can see I'm in my library talking to you. And I love to read. So I'm always looking for new books to read. And then again, just visiting with entrepreneurs and business leaders and understanding what's happening out there in the world and just trying to gain insight every day, and not being afraid to ask for help. I think like, I'll raise my hand many times and say, This is a new I mean, I'm running a company bigger than it was yesterday. This is new territory for me. And what would you do if you were in my shoes, because you've been there before, to you know, X entrepreneur who's now running a $2 billion dollar brand. And it's amazing these conversations I have because I think a lot of people don't get asked for help often, but it is our human instinct to want to help other people. So don't be afraid to ask the worst thing they can do is tell you to hit the road and you haven't lost anything.

David Novak 46:08

You know, you are very charismatic. No question about really personal. But I bet deep down you are tough as nails. Is that true?

Kendra Scott 46:20

Yes, I think so. I am no this is the thing about me. This is true. And I will admit this my my husband was like he was here to be like, Oh, God, she is tough as nails trust me. You know, I am like I told you an eternal optimist. I'm always looking for the silver lining. I always give people the benefit of the doubt. I'm always looking for the good in them and giving them an opportunity. I don't right away go to that the bad part, right. I'm trying to think about the good part. But if you cross me more importantly, my family, like my KSB then then mama bear comes out. And I think

David Novak 46:59

mama Kate, Mama K

Kendra Scott 47:01

Yes, Mama K comes out. And Mama k Don't mess around. And I also think, you know, when somebody comes in, and they think, Oh, here's this blonde, you know, from Texas, and they they're kind of pre judged me and are maybe not taking me serious. I can you know, I'll get in right away. I'll kind of put them in their place in a nice way. I do it very southern charm way. But they will know that I mean business. You may call it the velvet hammer.

David Novak 47:28

Okay, you know, I know it when you're an entrepreneur like you. I've read your story and how you had to just basically go sell everybody get a chance and all these kinds of things. But you had so many people say no to you so many times. What advice you'd give to people on how to handle the word know

Kendra Scott 47:46

who you know what? No one Aamir is on. I've said this a million times. And I say if you're in a business discussion, and you've pitched somebody, and they've told you no, guess what you're just starting now you're talking to him at least you got communication going? No could be the beginning of the on. And so maybe it's like you know what, today, you may not be interested, no worries. Next month, I'm gonna send you a new line sheet and then add said cupcakes or cookies or whatever. And a nice handwritten note, the more they push me away, not stalkerish but I wasn't afraid to keep going back to them, to keep trying to engage them to get to know them. And I think that's an important thing to remember. You know, you're gonna get told no a lot, you're gonna get told that you can't do things. I couldn't be a jewelry designer because I didn't go to one of those fancy schools. I couldn't be a real fashion brand because I wasn't starting on the coasts. There were so many times I was told that I couldn't do something. And that for me whatever the reason is, was just like a fire started. It's then I got like, Okay, I'm going to show you I can do this. So now when somebody says, Oh, you can't do that, or that'll never happen. I'm like oh, maybe here I can, you know, like, I can't. Yes, I can. And I I get excited now to be able to do that. And I think that's an important thing for people is to not take that as a down to smile inside and just nod and then walk away going watch out because here I come.

David Novak 49:21

You know, Kendry yards, you've just created such a great brand. And you're into every little detail I can tell about the brand. So I have to ask you why the color yellow in your packaging?

Kendra Scott 49:35

Well, if you see the color yellow, what does it what does it make you feel? Well,

David Novak 49:40

it's bright, sunny. Yeah, happy.

Kendra Scott 49:45

I mean, yellow is happy if you see the Sunshine Yellow. It's it is what makes you happy. The darkest of days. Yellow shines a light in the dark clouds. Right and so to me, that was the brand it was we We are happy, we are joyful. In addition to that what's really funny is when we were trying to decide on the color I had taken a personality test. I don't know if you've ever done this where it's like the red, green, blue, yellow, do you know I'm talking about? Yeah, and you're like yellow energy or red energy or blue and Jaya can't remember the name of the of the personality, but we did it in our company. Lady who performed the test called and she said, Kendra, I don't know, maybe there's something wrong to talk. And I was like, why? And she said, because your yellow energy is off the charts. I've never seen anybody that has that much yellow energy. So we joked about it to my company that like they really thought the test was defective. And so it was, it was kind of fitting that that and that was yellow was on the mark for one of our colors. And it was like, da, it's

David Novak 50:50

kinder, do you see yourself as a trendsetter? You know, staying on top of trends? Do you see yourself as a trendsetter? And what's your process for staying on top of the trends?

Kendra Scott 51:01

Yeah, you know, learning from my aunt Joanne, I'm so interested in excited about how fashion and trends work. But what I think I'm most interested in is what my customers want. And so you know, I love that we have social media, because I can read and I do every comment about when what we're showing, or if we're testing product, and listening all the time to her, and in watching and looking around me, and trying to see what is trending not just in the runways or in fashion. But what is trending in certain regions, what people are wearing in California versus New York, or what colors are out there. And of course wanting to bring trends, but I want them to be relatable to our customer. I want her to love them and feel comfortable wearing them. And so it's that it's that balance of trend setting, but also making it attainable, and also something that she's going to feel comfortable wearing.

David Novak 52:00

You alluded to it a little bit earlier. So I want to ask you a question about it. You talked about people taking you seriously been, you know, Southern whatever, you know, female, did you run into any particular challenges coming up in business as a woman?

Kendra Scott 52:15

Oh, absolutely. I walked into many boardrooms where no one in the room looked like me. And it would I knew that within the first five to 10 minutes, I just had to prove myself, I had to prove that I was smart, that I was business, I had business savvy that I knew what I was talking about, that I wasn't just an artist. And I think, you know, I was told that you know, you go to school, and you would have the major and there was these left brain and right brain. And if you were left brain, if you were a creative, you couldn't be that business side. So there's business minded people, and then there's creative people. And I think for me, I am one of those people that I would love to both. I love the art and I love design. But I love the business. I love trying to understand how business operated. And I just needed to to meet people and learn and create that bridge that got me from the creative side to the business side. And so I think, you know, today what I'm trying to do, even with the women's entrepreneurial and Leadership Institute at UT, is to you know, we're basing it, which sounds like a very business program, entrepreneurial leadership in the fine arts building at the University of Texas, it's open to all majors, because every student should have the opportunity to learn how to have an entrepreneurial mindset, you don't have to run a business to realize the benefits of that. And you just need the bridge, somebody needs to give you the tools so that you can understand if you're an artist, how could I take this art that I'm creating and create an amazing business? The creative minds are the ones that are going to change the world. And so we need those people in business today. So you know, I think, you know, I want to give the tools to not just women and we're open to everybody, but it is the Women's Leadership Institute for a reason. I want them to walk into a room into a boardroom and they are the majority. And that is my hope for the future.

David Novak 54:10

Well, right now in your company, as I understand it, 95% of your team members are female, are you okay with that?

Kendra Scott 54:16

Oh, are you kidding me? I love it. Love it. We all want about

David Novak 54:21

it. What about us for men?

Kendra Scott 54:25

We have is now more like 90% Just to be fair, we have the most awesome men at Kendra Scott. And I think a lot of times you know, it is our amazing men, not just an organization, but you know, I have an amazing father who told me that I could be anything I wanted to be. So we have to give a lot of credit to the amazing men out there in our lives because those men who have been cheering us on and rooting for us are incredible and so yeah, we do have a lot of women but you know we we only hire nice people David we hire, gracious, kind, thoughtful. Our A fashion in Austin, Texas is very different than probably the cutthroat fashion world and other you know, other places. We're a very loving company and we cheer each other on, we support each other. And if we've got somebody in the company that is not have that soul that does not have that they can go work for someone else. It's okay, I'll

David Novak 55:18

get the latest last long. I can tell you that right now. No, I gotta ask you this. What advice do you give men on how to work best with and develop women into really great leaders?

Kendra Scott 55:30

Yeah, I think that's a really great question. I think, you know, I've got three sons, one is graduating from high school, so he's gonna be going off to college. And I think the biggest thing that we can teach our sons or not, or daughters is respect, is to respect people of every gender of every race, and to look for their star inside of them, that brightness inside of them, you know, everyone has it, and sometimes somebody just needs to be able to pull it out of them. And I think, you know, we've just all got to do a great job of doing that. I think men that have helped women get to where we are today that have looked for their amazing brilliant minds that have looked for the things that they have inside of them to succeed are really important, we should all be doing that no matter what we should all be lifting each other up supporting each other and cheering each other on when we have successes. Gotta take them. Yeah, we got to take the negativity out of it. And, you know, and and, and I promise you what, if we can do that this world is going to be a great place

David Novak 56:38

with you all the way. You know, and I love the fact that you're a huge philanthropist. And you really give back and and we could go on and on talking about all the things that you do. But I want to address two specific. So first of all, could you tell us about kinder, kinder cares.

Kendra Scott 56:55

Yeah, you know, I, I love going to MD Anderson going back there. That's where they treated my stepfather when he had brain cancer. And I got a tour of the new pediatric cancer center there. And I was looking around and they do different therapy activities just to get the kids out of their room. And there are a lot of things for like really young kids, but there wasn't a lot of activities that really bridged all ages. And I thought, you know, wouldn't it be cool if we brought our color bar up to the pediatric cancer center, and we had coloring sheets for the little kids so they could color their designs, and then watch pick the stones they wanted. And we would give them a piece of jewelry, just to brighten their day just to bring them some joy. And so we we piloted this program at MD Anderson in their pediatric center, and we had kids that are three years old, on up to 16 years old, you know, kids that were too sick to get out of bed, we'd bring an iPad, they could design what they wanted, and the nurses would bring them in their gift. And they you know, we'd go back and they'd all be wearing their bracelets or their earrings. Little boys were making them for their moms who was we're sitting by their bedside. So before Mother's Day we went in, and it was just such an amazing thing to see how much joy this brought. And so that one hospital is now turned into 31 hospitals across the country. We do Kendrick cares every single month. We haven't been able to do it in the last few months because of COVID. But we cannot wait to get back into our hospitals and just keep continuing to bring joy 1000s and 1000s of patients and their caregivers are benefiting from this program as well as nurses. We'd like to spoil our nurses too.

David Novak 58:33

I love it. I love it. You know, we have the Novak children's care center here in Louisville. It's new and it's fantastic. And we're trying to break congratulations, we're going to we're going to try to hit you up for one of these. I think that'd be fantastic. You know,

Kendra Scott 58:47

done considered done.

David Novak 58:49

I have to ask you this. Understand you build a home and I don't I don't bring up the home because you've built this nice fancy home. But I understand you have a really unique feature in your home as it relates to philanthropy. Yes.

Kendra Scott 59:01

Who told you that? David?

David Novak 59:03

I know I just kind of get around a little bit. Okay, I do my homework. I tried to do my homework. I was excited about talking to you.

Kendra Scott 59:10

Oh, I'm gonna say you're talking about you, too. Yeah, you know, this home for me was a special project. I obviously did not grow up in a very big house. We lived in, you know, a little town in Wisconsin. And it was a very modest upbringing. But I wanted to build something that not it wasn't even just about for our family. It was about what can I do to leave a legacy. And and so building the house, we wanted to keep a pristine place in Austin. That was an older property, you know, in a very nice area of town, but it had four acres which is unheard of. And I wanted to keep it intact. I wanted to keep it what it should be. And we wanted to be able to have it so that we could do charitable events here and really be able to support our communities so built it with that in mind with having event lawn space in places where we could have these Then so that nonprofits wouldn't have to pay for event fees, because that's so expensive for nonprofits. And this way more money could go back to their nonprofit. And then thinking bigger about it, I thought, you know, we don't want this in our family, we want it for the community. And so once we're out, this is a gift to our community in Texas, and to be able to use it as a place for philanthropy. And so we'll be gifting my home after that, so I'm just a store to take care of it. Until then it's great.

David Novak 1:00:31

That's great. Well, I definitely want to congratulate you on the Kendra Scott Entrepreneurial Center for Women at the University of Texas, what would be your three most important bits of advice you give aspiring leaders and entrepreneurs and especially women,

Kendra Scott 1:00:47

you know, I was so excited about building this, this institute for a lot of reasons. But I wanted to be able to provide a place a safe place that women could go and really be able to find the confidence within themselves to overcome any obstacle that they get faced with throughout their life. And there will be many to understand that failure can be a gift, and how to navigate those moments to be inspired by amazing other leaders in all different facets of business and industry to see their stories of failure success, how they got there, so that they can learn from people in their actual lives. And so for me, I want to inspire them, I want to give them the ability and educate them and build that bridge in no matter what they're doing. Giving them the tools that they need that they feel like they may be lacking, to make them feel like they can go out and leave the university, this unbelievably confident person who can tackle the world and also leave it better than they found it. So philanthropy is also teaching them the power of of giving back.

David Novak 1:01:58

Fantastic. You know, this has been a blast for me, but I want to kind of wrap this up with a lightning round of q&a. Okay. Oh, great. Oh, what's the one word that best describes you?

Kendra Scott 1:02:09

optimistic?

David Novak 1:02:11

If you could, oh, no, I don't believe that. If you could trade places with one person for a day, who would it be?

Kendra Scott 1:02:18

This is so hard. One person for a day Lady Gaga.

David Novak 1:02:22

Okay. You know, what mine was Bruce Springsteen. By the way, what one thing about you that few people would know?

Kendra Scott 1:02:32

I can speak in a lot of different accents.

David Novak 1:02:35

Do you have any hidden talents?

Kendra Scott 1:02:37

Oh, I like to I like I don't know, I don't know if I have a hidden I don't have a hidden talent. I don't.

David Novak 1:02:44

Okay. And I want to ask you this. And this goes back to I think what your your company's all about family. They call you as I understand it, mama Kay in house. Okay. Can you just talk a little bit about how motherhood and being a mom comes into play when you think about your company and what you're trying to do?

Kendra Scott 1:03:02

Absolutely. You know, I started this business when my first son was born, he was a newborn, we would go door to door when he was three months old. So building a business that allowed me to be a great mother was paramount. And I wanted to create that same environment for other mothers and fathers, a place where having a family was an exciting thing. And that we could support and love each other around it. And I am the mother to my Kendra Scott employees, I care for them like a mother does. I want to protect them. I want to see them thrive. I want to see them live their best, most happy lights. You know, it's crazy how we have so many employees that may have worked for me for five years or six years, and they may start to do something else. I am excited for them. I check in with them. I want to find out what they're doing. Not many business owners think that way. And many of them end up coming back by the way. They're like, can we come back we want to go back to the nest that call. So much better. But I think that's my role is and mothers do they are fiercely protective of their home and their family. And we're going to do everything we can to keep everybody growing and succeeding. And that's my that's my goal as CEO of this brand.

David Novak 1:04:19

Great, Chief mom. She's moms. That's great.

Kendra Scott 1:04:23

Well, I have three sons, but I have 1000s of daughters. So I get all of my girl energy from all of my you know, female, Scott, team members.

David Novak 1:04:34

I want to close Kendra by going back to the beginning when I talked about Mary Kay. I understand you were recently inducted into the Texas business Hall of Fame. Joining Mary Kay. And I want to ask you, how did that make you feel? I don't think there's that many women in the Hall of Fame in Texas. And doing it with Mary Kay Yeah, I

Kendra Scott 1:04:54

was number 12. The 12th woman, Mary Kay Ash was the first She was the very first woman to be inducted into the Texas business Hall of Fame. And my mother actually accepted the award on my behalf. And it was a really moving speech, my father had had a heart attack, so I was with him. And my mom accepted and she told that story how she couldn't believe that our little girl that would help her unpack her boxes of Mary Kay Cosmetics and put them on the shelf in our laundry room, and help deliver the product to her customers would someday have been inducted into a Hall of Fame with Mary Kay Ash herself. It's surreal, but it goes to show you that anything in life is truly possible if you believe. And, you know, I had parents that told me I could do anything. And I think if we can keep telling our children that it doesn't matter where you come from Dream Big, because something like that could happen to you too.

David Novak 1:05:50

Kendra, you are definitely a bumblebee. There's no question about that. And I want to thank you so much for taking so much time to share your insights and observations because you, you understand business and you have really established the magic of the and you are creative. You're an artist and you know business cold, and you can do both. So thanks for inspiring us to do that.

Kendra Scott 1:06:12

Well, it sure means a lot to hear that from you. I'm just as big of a fan of yours. Trust me. So you may be getting a call from me asking for advice. Hopefully you won't mind given me some.

David Novak 1:06:22

I think I'll take it. Thank you. Well,

Kendra Scott 1:06:25

thank you so much. I've enjoyed this so much. I could talk to you all day

David Novak 1:06:36

well, I love it when I see bureaucracy busters and Kendra sister rule of customer service is truly brilliant. Nobody's going to remember every policy and a handbook and who would want to, but everybody knows how to help someone they care about. Everyone knows how they'd want to treat their sister. Kendra just has this knack for getting to the heart of a complex problem and distilling it down into a clear and simple solution. The thing is, it's not really a knack. It's hard work to simplify something. It takes persistence and creativity and really hard work to boil something down to its very essence. And now it's time for my favorite part of our podcast episodes. This is where I give you some coaching to help you develop as a leader this week as part of your weekly personal development plan. Here's what I want you to do. I want you to think about a recurring process or company policy in your world. That is just way too complicated. Schedule a block of time and work on simplifying it. It may not be easy, but when you whack away at those needless complications, your team's going to say it's about time and they're going to really appreciate you for it. So do you want to know how leaders lead what we learned today is that great leaders strive for simplicity. Thanks again for tuning in to another episode of how leaders lead where every Thursday you get to listen in while I interview some of the very best leaders in the world. I make it a point to give you something simple on each episode that you can apply to your business so that you'll become the best leader you can be

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