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January 30, 2025 • 36min
Emma Grede, Mellody Hobson & Angela Ahrendts on inclusive leadership
Masters of Scale
This episode features two conversations from the Masters of Scale Summit, both moderated by Angela Ahrendts (former SVP at Apple). The first guest is Emma Grede, co-founder of Good American and founding partner of Skims, who shares insights on building inclusive brands and investing in underserved communities. The second guest is Mellody Hobson, president of Ariel Investments, who discusses financial literacy and the importance of maintaining DEI efforts despite pushback.
Emma Grede, Mellody Hobson & Angela Ahrendts on inclusive leadership
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Key Takeaways
- Authenticity and honesty are crucial leadership qualities - being direct and transparent with teams builds trust and attracts top talent
- Physical retail remains vital even for digital-native brands - customers crave in-person experiences and community
- Financial literacy is severely lacking in the US - only 25 states mandate it in schools and 77% of Americans feel anxious about money
- DEI efforts are being rolled back due to legal concerns, but diversity demonstrably improves business outcomes through different perspectives
- Social impact initiatives like the 15% Pledge can create both meaningful change and business value by connecting with customers and employees
Introduction
This episode features two conversations from the Masters of Scale Summit, both moderated by Angela Ahrendts (former SVP at Apple). The first guest is Emma Grede, co-founder of Good American and founding partner of Skims, who shares insights on building inclusive brands and investing in underserved communities. The second guest is Mellody Hobson, president of Ariel Investments, who discusses financial literacy and the importance of maintaining DEI efforts despite pushback.
Topics Discussed
Building Authentic Brands (5:30)
Emma Grede discusses her journey from running a talent agency to building multiple successful consumer brands. She emphasizes the importance of authenticity and solving real customer problems.
- Partner selection should be based on shared values and willingness to go on long-term journeys
- Team building requires acute awareness of personal strengths and weaknesses
- Success takes time - nothing has quick results despite appearances
- "I choose my partners very carefully, and I also choose my partners based on my own weaknesses" - Emma Grede
The 15% Pledge Initiative (10:53)
Grede explains the origins and impact of the 15% Pledge, which asks retailers to dedicate 15% of shelf space to Black-owned brands.
- Created $14 billion pipeline of opportunity for Black-owned brands
- Now includes 750 brands across major retailers like Sephora, Nordstrom, Macy's
- Focus on demystifying success and who gets to build successful businesses
- "Black brands aren't just for black people...if you make amazing lotion, then anybody can use that" - Emma Grede
Evolution of Marketing (16:54)
Grede shares how marketing strategies must constantly evolve as digital channels change.
- Social media arbitrage opportunities are largely gone
- Focus on solving real problems and serving genuine purpose
- B Corp certification created unexpected marketing benefits
- Importance of meeting customers where they are, across all channels
Physical Retail Strategy (19:30)
Despite starting digital-native brands, Grede emphasizes the continued importance of physical retail presence.
- Opening approximately one store per month
- Customers crave in-person experiences and community
- Value in traditional wholesale partnerships
- "Don't be a snob about it because I don't think that's how customers think and it's not how they discover" - Emma Grede
Financial Literacy Mission (26:21)
Mellody Hobson discusses her passion for improving financial literacy, stemming from her own childhood experiences with financial hardship.
- Only 25 states mandate financial literacy education
- 77% of Americans feel anxious about money
- Modern payment methods make money more abstract for children
- "All of our money habits are learned from our parents" - Mellody Hobson
Scaling Financial Education (31:49)
Hobson outlines strategies for expanding access to financial education through her new children's book.
- Library donations to increase accessibility
- School partnerships for widespread distribution
- Using children as gateway to educate adults
- State-level initiatives like Maine's 13,000-book program
DEI Challenges and Opportunities (33:51)
Hobson addresses recent corporate pullback from DEI initiatives and makes the case for their continued importance.
- Legal concerns driving corporate hesitation
- Rejection of "zero-sum game" mentality
- Data supports diversity improving business outcomes
- "Every piece of data shows that diversity helps outcomes...If you have like-minded people around you, you will not have barrier-breaking ideas" - Mellody Hobson
Conclusion
The conversations with Emma Grede and Mellody Hobson highlight several key themes for modern business leaders:
- The importance of authentic leadership and transparent communication
- How social impact initiatives can drive both meaningful change and business value
- The need to meet customers where they are, across digital and physical channels
- The critical importance of improving financial literacy across generations
- Why diversity and inclusion remain essential for innovation and growth despite current headwinds
