Jun 5, 2023, 3:00 AM ETInterview

Billion Dollar NIGHTMARE! The Tragedy Of A Billion $$ Beauty Business - Nicola Kilner, The Ordinary

Nicola Kilner (CEO) and Brandon Truax founded Deciem, launching The Ordinary in 2016; the company reached a valuation of $2.2 billion USD.
At its peak production, The Ordinary manufactured 400,000 units daily across a Toronto facility.
Estée Lauder Companies (ELC) acquired a 29% minority stake in April 2017, with a valuation of approximately $160 million at that time.
ELC increased its stake to 76% by 2021, with plans to acquire the remaining shares for full ownership by summer 2024.
The company employed roughly 1,500 staff members and operated 32 standalone stores globally.
Deciem's strategy initially rejected traditional business focus, aiming to incubate 10 distinct brands simultaneously to build an in-house ecosystem for manufacturing, R&D, and communications.
The "Cult of Deciem" culture prioritized deep belonging and family-like bonds, resulting in high loyalty but later contributing to the difficulty of scaling and managing professional boundaries.
Kilner admitted the "no strategy" approach was viable only for early agility; she later noted that as the company scaled, formal strategy became necessary to manage organizational complexity.
The Ordinary's success was built on pharmacy-style transparency, offering high-concentration active ingredients at low price points without traditional beauty marketing fluff.
The company initially faced rejection from major retailers who called the white-box branding confusing and unmarketable.

Late 2017: Brandon Truax began experimenting with psychedelic substances, including magic mushrooms and crystal meth, reportedly leading to a drastic personality shift from warm to cold and erratic.
February 2018: Truax fired Nicola Kilner via company-wide emails, copying retailers and press, though the action lacked formal board approval.
Throughout 2018, Truax was involuntarily sectioned for mental health treatment five times across the UK, Canada, and the US, often being released shortly after before relapsing.
October 2018: Truax posted on Instagram announcing the immediate shutdown of Deciem to force intervention; this prompted shareholders and the board to issue a court order removing him as CEO.
Following Truax's removal, he remained a security concern, sometimes parking his car outside the office, while Kilner, seven months pregnant, was appointed interim sole CEO to stabilize operations.
The chaotic period caused significant public scrutiny, with Truax using social media to fire employees, cancel partnerships, and vent grievances to the public.
Kilner noted that Truax had a secret life partner of 10 years, whom he had not disclosed to the team due to feelings of not being accepted.
The company's demand surged during the chaos due to public attention, yet internal operations faced severe disarray requiring the re-hiring of fired senior staff.

December 29, 2018: Kilner gave birth to her daughter; four days later, in January 2019, news broke that Brandon Truax had died.
Truax died alone in his high-rise apartment in Toronto, having fallen from a balcony during a storm; authorities concluded it was an accident rather than suicide, as he left no note or final communication.
At the time of his death, Truax's will listed every Deciem employee as a beneficiary, underscoring his desire to maintain the "family" bond despite his estrangement from the team.
Kilner, now the sole CEO, immediately faced the dual challenge of grieving a friend/partner and stabilizing a company on the brink of collapse.
The company underwent a rapid operational restructuring, integrating experienced leadership for supply chain and finance while Kilner focused on brand culture and vision.
The tragedy reignited discussions on mental health in the workplace, with Kilner noting the parallels between her late father's alcoholism and Truax's substance-fueled mental health decline.
The company eventually pivoted to a "Growth, Power, Good" strategy, emphasizing sustainability and social impact alongside financial performance.

Kilner advocates for "kindness over niceness," defining kindness as taking difficult but necessary actions for an employee's long-term benefit, even if not immediately pleasing.
She emphasizes that authenticity and acknowledging one's weaknesses (e.g., her own lack of finance skills) are critical for effective leadership.
The concept of "work-life balance" is viewed by Kilner as fluid; she believes that during intense startup phases, work can become a passion that supersedes traditional balance without negative consequence.
Non-negotiables for Deciem include radical kindness, doing the right thing when no one is watching, and drawing inspiration from outside the beauty industry (e.g., healthcare/pharmacy).
Kilner currently holds no desk, preferring to "hot desk" with her team to maintain accessibility and foster informal connections across departments.
Her advice to her younger self is to "stay calm," maintain positivity, and recognize that uncontrollable events happen to everyone, but resilience is key.
The company now has over 50% female leadership, with a significant portion of the workforce identifying as BIPOC.
Kilner plans to prioritize her role as a mother in her later career chapters, viewing the skills of nurturing and emotional intelligence as transferable to business leadership.