The document describes Tony Hsieh's Downtown Project, a $350 million initiative to revitalize downtown Las Vegas. The goals are to create a walkable live-work-play community that is the most community-focused large city in the world and a hub for collisions, community, and co-learning. The funding will support small businesses, tech startups, education, arts, culture, and real estate. The hope is this will accelerate innovation, happiness, luck, and productivity by maximizing serendipitous interactions between diverse groups through density, street activity, and an open culture. Events will be curated to drive community, connections, and learning.
4. A Little About Me (Tony)
• 1994-1995: Pizza business in college
Slide 4
5. A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
Slide 5
6. A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
Slide 6
7. A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
Slide 7
8. A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)
Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
• 2009: Amazon acquires Zappos for $1.2 billion
• 2010: NYT bestseller Delivering Happiness published
Slide 8
9. The Power of WOW
$1,000
800
Gross Sales $MM
600
400
200
‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08
Slide 9
10. Customer Experience
What do customers expect?
What do customers actually experience?
What emotions do customers feel?
What stories do they tell their friends?
How can culture create more stories and memories?
Slide 10
13. CULTURE
the #1 priority
Hiring for culture
4 weeks of training
$4000 offer
Culture book
Slide 13
14. CULTURE
“Committable Core Values”
Don’t make your core values
just a meaningless plaque on the wall…
Slide 14
15. Example: Core Values
1. Deliver WOW Through Service
2. Embrace and Drive Change
3. Create Fun and a Little Weirdness
4. Be Adventurous, Creative, and Open-Minded
5. Pursue Growth and Learning
6. Build Open and Honest Relationships With Communication
7. Build a Positive Team and Family Spirit
8. Do More with Less
9. Be Passionate and Determined
10. Be Humble
Slide 15
21. Delivering Happiness
(customers and employees)
“People will forget what you said.
People will forget what you did.
But people will never forget
how you made them feel.”
-Maya Angelou
Slide 21
44. DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World
Slide 44
45. DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large
City in the World
The Co-Learning and Co-working Capital
of the World
Slide 45
46. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
Slide 46
47. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
Slide 47
48. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
Slide 48
49. ROI vs. ROC and ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
and institutionalizing ROL
Slide 49
50. ROI vs. ROC and ROL
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
and institutionalizing ROL
(Return On Luck) – Accelerating Serendipity
Slide 50
51. THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
Slide 51
52. THE BIG BET
Accelerating
Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,
Innovation, and Productivity
Slide 52
60. $50M – Small Businesses
Criteria
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something
Slide 60
61. $50M – Small Businesses
Criteria
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something
Story-worthy
Slide 61
89. $200M – Real Estate
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 89
90. WHEN CITIES DOUBLE IN SIZE…
Productivity and innovation per resident
increases by 15%
(But not true for companies)
Accelerate serendipity -> Accelerate learning ->
Accelerate productivity and innovation
Slide 90
91. 3 INGREDIENTS FOR SERENDIPITY
1. Residential density of 100 residents/acre
2. Street-level activity for residents to
collide
3. Culture of openness, collaboration,
creativity, and optimism
Slide 91
92. HOW TO ACCELERATE LEARNING &
INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
Slide 92
93. Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
Slide 93
94. DIFFERENT GROUPS COLLIDING
1. 2000 Zappos employees
2. 1000 Teach For America corp members
and alumni
3. Tech Startup Community
4. Small Business Community
5. Art and Music Communities
6. Other Passion Communities
7. Local Residents
Slide 94
96. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Slide 96
97. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Values
Innovation
Serendipity
Participation
Upward Mobility
Slide 97
Attracting Startups and the Creative Class
119. Collisions, Community, Co-Learning
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
Slide 119
120. Collisions, Community, Co-Learning
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
x 40 weeks/year
Slide 120
121. Collisions, Community, Co-Learning
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
x 40 weeks/year
= 1000 “collisionable” hours/year
Slide 121
122. Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-
Slide 122 Will-Love-It-b.jpg
125. Collisions, Community, Co-Learning
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
Slide 125
126. Collisions, Community, Co-Learning
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
Slide 126
127. Collisions, Community, Co-Learning
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
= 1000 “collisionable” hours/year
Slide 127
139. Collisions, Community, Co-Learning
1. 100,000 “collisionable” community
hours per acre per year
2.3 collisionable hours
per square foot
per year
Slide 139
140. OUR BIG BET… 3 Guiding Principles
Accelerate:
1.Collisions
2.Community
3.Co-Learning
And everything else will fall into place…
(productivity, innovation, growth, happiness)
What will people say about downtown?
Slide 140
141. “Downtown Vegas
Will Make You Smarter”
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg
Slide 141