“Having worked in the business for over 20 years before becoming chairman, the first thing I realized is that this is a very different leadership role,” says Shawn Gorman, executive board chairman of the Freeport based manufacturer and retailer.
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As executive board chairman at L.L.Bean, Shawn Gorman helps lead a company founded in 1912 by his great-grandfather, Leon Leonwood Bean, as a one-man operation after inventing the Maine Hunting Shoe.
Today, the Freeport-based manufacturer and seller of clothing, gear and home goods is Maine’s largest family-owned business and one of the state’s largest private employers, with up to 4,000 people during the peak holiday season.
Following the $110 million makeover of corporate headquarters completed earlier this year, L.L.Bean recently embarked on a $50 million-plus transformation of its seven-acre flagship campus.
Gorman, who grew up in Exeter, N.H., joined L.L.Bean in 1991 as a marketing analyst, going on to hold leadership positions in marketing, international, ecommerce, partnership marketing and creative. His accomplishments include introducing the company to online and email marketing, integrating brand strategies across channels and leading the company’s affinity credit card loyalty program that generates tens of millions in annual revenues.
Gorman is a graduate of the University of New Hampshire and executive management programs at the University of Pennsylvania’s Wharton School and Northwestern University’s Kellogg School of Management.
Mainebiz: How does a company like LL Bean balance innovation with preserving tradition?
Shawn Gorman: Innovation has been part of our story since 1912, when my great-grandfather came home from one of his many hunting trips with cold, wet feet and set upon creating the Maine Hunting Shoe. More than a century later, we’re still focused on improving the performance of our iconic products, while bringing new, innovative ones to market that honor our outdoor heritage and help us to fulfill our purpose of getting more people outside so they can experience the restorative benefits of being outside.
MB: What happens when there’s a business disagreement among family members?
SG: At L.L.Bean, we have a governance structure that provides a framework to ensure that all points of view are heard in a timely and respectful manner.
In addition to our board of directors, our governance model includes an owners’ council, which is designed to ensure that family consensus is achieved in our business decision-making process. The owners’ council forum makes space for dissenting points of view to be heard and considered, with the goal of delivering a reflection of those points of view to the business through the board of directors.
MB: What are some of the pluses and pitfalls of having a non-family member leading a family business, and do you envision LL Bean ever going back to a family-member CEO?
SG: Since L.L.Bean was founded in 1912, we’ve always had family members at the helm of the business. As executive chairman, I provide executive oversight and direction for the enterprise, and I work in the business every day. The executive chair role was created in 2015 when we hired Steve Smith, our second non-family president and CEO, to ensure leadership continuity and that L.L.Bean’s values, guiding principles and the strategic vision for the company would continue. This structure has helped us to avoid the pitfalls that transitioning from a family to a non-family CEO can create.
Counting Steve, L.L.Bean has only had only four CEOs — starting with our founder, L.L. (who ran the company until his passing at the age of 94) and my uncle, Leon Gorman, who served as president and CEO for nearly 40 years after that. Our two most recent CEOs are not family members, although Chris McCormick [who served as president and CEO from 2001-2016] spent 18 years in the business being mentored and groomed by Leon to eventually succeed him. Leon also stayed on as chairman, and then chairman emeritus, until his passing in 2015.
Our current structure brings the best of both worlds of family and non-family leadership. As executive chair, with 20-plus years of experience in the business, along with another decade of family leadership experience, I have the luxury of having [Smith], a highly skilled president and CEO, who brings an all-important industry perspective to run the business, alongside a deeply talented executive team that he has developed over the past several years.
As for the future, I’m sure we’ll continue to have family leaders overseeing the business.
MB: How’s business this year and what’s your outlook for 2024?
SG: We have enjoyed a strong first half of the fiscal year as people continue to spend more time outside. We are optimistic this will continue into 2024, and we’re constantly adapting and responding to the many macroeconomic challenges as they arise.
MB: What are the top-selling products and categories this year?
SG: Our iconic products always lead the way — Bean Boots, Boat & Totes, Wicked Good Slippers, Flannel and Fleece — but given the wet summer we’ve had, we’re selling a lot of raincoats and outerwear, too. With colder temps arriving, we anticipate seeing that outerwear trend continue into the holiday and winter seasons.
MB: Where to next for the company in terms of sales channels, product categories and geographies?
SG: We continue to invest in our omnichannel growth strategy to make our assortment more readily available to customers through new channels, primarily through expanding brick and mortar and wholesale. So far this year, we’ve opened two stores in New England, two stores in Canada (and our first two in the Province of Quebec) along with hundreds of new locations through wholesale partners across the United States, including Academy Sports, Dillard’s, Moosejaw and independent specialty retailers.
MB: How long will the $50 million flagship store revamp take, and how do you keep customers happy during the current disruptions?
SG: The Freeport Experience is a multiyear project that’s still in the early phases, so we’re a few years out from completion. This is a big project and with such a big effort, there will be some disruptions for customers. When it’s complete, we’re confident that our customers will enjoy the new shopping experience and the many enhancements we’re putting in place.
In the meantime, we’re focused on providing lots of communication, including easy to follow in-store signage to ensure we’re maintaining the level of service that L.L.Bean customers have come to expect.
MB: What are some of the learnings you’ve had since becoming chairman 10 years ago?
SG: Having worked in the business for over 20 years before becoming chairman, the first thing I realized is that this is a very different leadership role. As executive chair, I lead L.L.Bean’s board of directors and I also serve on L.L.Bean’s governance committee (along with two of my cousins), where together we oversee leadership responsibilities for the family. Additionally, I am a member of L.L.Bean’s executive team.
Ensuring that I’m devoting equal time and energy across these areas of responsibility takes balance. I also had to get comfortable with the concept of ‘flying at 100,000 feet,’ or operating with a very broad view of the total business versus leaning in on every issue. For me, creating and maintaining that balance has been the biggest learning, not just in my role as executive chair but in all aspects of my life.