When Phil Knight, founder of Nike, talks about the importance of building a great team, he’s not just offering theoretical advice—he’s lived it. Starting from selling shoes out of the trunk of his car to leading a global brand with over 60,000 employees, Knight has learned that people are everything.

In a recent interview, Knight emphasized:

So how do you build a team that works like a championship unit?

Knight offers a powerful formula:

1. Pick the right people

2. Create an environment that fosters teamwork

3. Give a little bit of leadership to guide them

It sounds simple, but these lessons have helped companies like Nike, and others like Amazon, Tesla, and Google, achieve greatness. Let’s break down actionable steps for young entrepreneurs and CEOs based on these principles.

1. It Starts with People: Pick the Right Team Members

Phil Knight’s first rule is to choose the right people—those who are not just talented but also aligned with your company’s vision and values.

Look at Netflix’s “Culture of Freedom and Responsibility”

Reed Hastings, CEO of Netflix, built a world-renowned culture by hiring employees who can handle high levels of responsibility and thrive in a freedom-centric environment. He’s known for letting go of high performers who didn’t fit Netflix’s culture, proving that culture fit is just as important as raw skill.

Actionable Tip: Don’t just hire for talent—hire for cultural fit. Ask yourself:

• Does this person align with the company’s mission?

• Will they contribute positively to the team’s dynamic?

Use Netflix’s approach: Trust employees, but only after ensuring they have both the skills and the mindset to succeed within your organization.

2. Create a Team Environment That Elevates Everyone

According to Knight, two “nines” working together are better than two “tens” working apart. In other words, team synergy is more valuable than individual brilliance.

Amazon’s “Two-Pizza Rule” 🍕

Jeff Bezos of Amazon is famous for using small teams to drive efficiency and collaboration. He once said, “If you can't feed a team with two pizzas, it's too large.” This emphasis on small, focused teams ensures that everyone contributes and works towards a common goal.

Consider implementing the “Two-Pizza Rule” at your company: Keep teams small enough to stay agile and efficient.

3. Lead with Purpose and Flexibility

Knight references Sparky Anderson, legendary manager of the Cincinnati Reds, who said:

This illustrates a key leadership principle: Not everyone should be treated the same. Great leaders recognize that different team members have different needs.

Elon Musk’s Hands-On Leadership at Tesla

Elon Musk is notorious for being deeply involved in his teams’ work—sleeping on the factory floor during crunch time and offering personal guidance to engineers. But he doesn’t manage everyone the same way; high performers are given more freedom, while less-experienced employees receive closer oversight.

4. Build a Culture of Shared Purpose

At Nike, the common purpose was clear: win, innovate, and never stop moving forward. As an entrepreneur or CEO, your job is to make sure every person on the team knows what the end goal is—and believes in it.

Google’s “OKR System” 🎯

At Google, they use an Objectives and Key Results (OKR) system to ensure that every employee knows how their work contributes to the company’s overarching goals. This not only drives focus but also fosters a sense of shared purpose among employees.

5. Foster Resilience and Adaptability

Nike didn’t become a global empire without overcoming serious challenges. From legal battles with rival brands to product flops, Knight’s leadership ensured that Nike adapted and thrived in the face of adversity.

Apple’s Resilience Under Tim Cook 🍏

When Tim Cook took over Apple after Steve Jobs’ passing, many doubted whether the company would continue to innovate. Cook’s leadership focused on building a resilient team that embraced change, leading Apple to new heights with products like the Apple Watch and AirPods.

Key Takeaways:

• 👥 Hire for Culture Fit: Skills matter, but culture fit is crucial for long-term success.

• 🍕 Use Small Teams for Big Impact: Follow Amazon’s “Two-Pizza Rule” and keep teams agile and focused.

• 🎯 Tailor Your Leadership Style: Like Sparky Anderson and Elon Musk, adjust your management approach based on the individual.

• 🚀 Align with Purpose: Use systems like OKRs to ensure everyone is working towards the same goal.

• 🌱 Foster Resilience: Embrace change and build a team that can thrive in the face of adversity.

Choose the right people, create an environment where they can thrive, lead with purpose, and be flexible in your approach.

If you can do that, you’ll be well on your way to building a company that can stand the test of time—just like Nike.