This document summarizes Tony Hsieh's presentation about the Downtown Project, a $350 million initiative to revitalize downtown Las Vegas. The goals are to create a more walkable, community-focused city centered around collisions and co-learning. $50 million each will be spent on small businesses, tech startups, and education/arts/culture. $200 million will go towards real estate development to double downtown's residential population and density. The hope is this will accelerate innovation by maximizing serendipitous interactions between diverse groups including Zappos employees, entrepreneurs, artists and residents.
4. A Little About Me (Tony)
•
Slide 4
1994-1995:
Pizza business in college
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
•
Slide 6
1999:
Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
7. A Little About Me (Tony)
•
1994-1995:
Pizza business in college
•
1996-1998:
LinkExchange (online advertising)
Sold to Microsoft for $265 million
•
Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
•
Slide 7
1999:
1999-Today:
Zappos.com, Inc.
8. A Little About Me (Tony)
•
1994-1995:
Pizza business in college
•
1996-1998:
LinkExchange (online advertising)
Sold to Microsoft for $265 million
•
Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
•
1999-Today:
Zappos.com, Inc.
•
2009:
Amazon acquires Zappos for $1.2 billion
•
Slide 8
1999:
2010:
NYT bestseller Delivering Happiness published
9. The Power of WOW
$1,000
Gross Sales $MM
800
600
400
200
‘00
Slide 9
‘01
‘02
‘03
‘04
‘05
‘06
‘07
‘08
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
19. 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 19
23. Example: Core Values
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Slide 23
Deliver WOW Through Service
Embrace and Drive Change
Create Fun and a Little Weirdness
Be Adventurous, Creative, and Open-Minded
Pursue Growth and Learning
Build Open and Honest Relationships With Communication
Build a Positive Team and Family Spirit
Do More with Less
Be Passionate and Determined
Be Humble
24. COMMIT TO
TRANSPARENCY
“Be real and you have nothing to fear”
Your culture is your brand
Don’t try to be someone you are not
Parades at Zappos…
Slide 24
36. Evolving vision and brand at
Zappos.com
Selection
2003
Customer Service
2005
Culture and core values as our platform
2007
Personal Emotional Connection
Slide 36
1999
2009
Delivering Happiness
37. Questions
Where does the story end?
How do you reinforce the good memories?
What were the emotions, positive and negative?
Slide 37
Where does the story begin?
How can you create more stories and memories?
38. What’s your business?
Cirque du Soleil is not in the circus business.
You’re in the experience and emotions business.
You’re in the stories and memories business.
Slide 38
You’re not in the _______ business.
Think bigger.
39. Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”
Slide 39
59. 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 59
60. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
Slide 60
61. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
Slide 61
62. ROI vs. ROC
Instead of maximizing short-term ROI
(Return On Investment)…
We focus on maximizing long-term ROC
(Return On Community)
Slide 62
63. 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 63
64. 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 64
74. $50M – Small Businesses
Criteria
Slide 74
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something
75. $50M – Small Businesses
Criteria
Slide 75
Owner Operated - Passionate
Helps Build Community
Execution Ability
Sustainable
Unique or First or Best at Something
Story-worthy
108. $200M – Real Estate
Slide 108
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
109. 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 109
110. 3 INGREDIENTS FOR SERENDIPITY
1.
2.
Street-level activity for residents to
collide
3.
Slide 110
Residential density of 100 residents/acre
Culture of openness, collaboration,
creativity, and optimism
111. HOW TO ACCELERATE LEARNING &
INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
Slide 111
112. Las Vegas City Hall
Slide 112
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
113. DIFFERENT GROUPS COLLIDING
1.
2.
3.
4.
5.
6.
7.
Slide 113
2000 Zappos employees
1000 Teach For America corp members
and alumni
Tech Startup Community
Small Business Community
Art and Music Communities
Other Passion Communities
Local Residents
115. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Slide 115
116. LEARNING FROM ZAPPOS &
COWORKING…
Culture is to a Company
as
Community is to a City
Slide 116
Values
Innovation
Serendipity
Participation
Upward Mobility
Attracting Startups and the Creative Class
137. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
Slide 137
138. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
Slide 138
139. Return On Collisions (ROC)
What is the value of a resident that is out and
about in the community?
3-4 hours/day
x 7 days/week
Slide 139
140. Return On Collisions (ROC)
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 140
141. Return On Collisions (ROC)
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 141
142. Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-YouWill-Love-It-b.jpg
Slide 142
144. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
Slide 144
145. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
Slide 145
146. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
Slide 146
147. Return On Collisions (ROC)
What is the value of a purposeful visitor that
contributes to community?
12 hours/day
x 7 days/week
x 12 weeks/year
Slide 147
148. Return On Collisions (ROC)
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 148
150. Return On Collisions (ROC)
1.
2.
Street-level activity for residents to
collide
3.
Slide 150
100 residents per acre
Culture of openness, collaboration,
creativity, and optimism
155. Return On Collisions (ROC)
1.
Slide 155
100,000 “collisionable” community
hours
156. Return On Collisions (ROC)
1.
Slide 156
100,000 “collisionable” community
hours per
157. Return On Collisions (ROC)
1.
Slide 157
100,000 “collisionable” community
hours per acre
158. Return On Collisions (ROC)
1.
Slide 158
100,000 “collisionable” community
hours per acre per
159. Return On Collisions (ROC)
1.
Slide 159
100,000 “collisionable” community
hours per acre per year
160. Return On Collisions (ROC)
1.
100,000 “collisionable” community
hours per acre per year
2.3 collisionable hours
per square foot
per year
Slide 160
161. 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 161