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DELIVERING	
  HAPPINESS	
  
A	
  PATH	
  TO	
  PROFITS,	
  PASSION,	
  AND	
  PURPOSE	
  
WWW.DELIVERINGHAPPINESSBOOK.COM	
  


Tony	
  Hsieh	
  




Stanford	
  
October	
  11,	
  2010	
  
HAPPY	
  WRAP	
  
                     hHp://www.youtube.com/watch?v=NSIXo9Id-­‐s	
  




Slide	
  9	
  	
  
Slide	
  11	
  	
  
A	
  LiHle	
  About	
  Me	
  (Tony)	
  
                      •    1994-­‐1995:   	
  Pizza	
  business	
  in	
  college	
  




Slide	
  12	
  	
  
A	
  LiHle	
  About	
  Me	
  (Tony)	
  
                      •     1994-­‐1995:   	
  Pizza	
  business	
  in	
  college	
  


                      •     1996-­‐1998:   	
  LinkExchange	
  (online	
  adverFsing)	
  
                           	
   	
            	
  Sold	
  to	
  MicrosoJ	
  for	
  $265	
  million	
  




Slide	
  13	
  	
  
A	
  LiHle	
  About	
  Me	
  (Tony)	
  
                      •     1994-­‐1995:   	
  Pizza	
  business	
  in	
  college	
  


                      •     1996-­‐1998:   	
  LinkExchange	
  (online	
  adverFsing)	
  
                           	
   	
            	
  Sold	
  to	
  MicrosoJ	
  for	
  $265	
  million	
  


                      •     1999:          	
  Venture	
  Frogs	
  (investment	
  fund)	
  -­‐	
  Invested	
  in	
  Zappos.com,	
  Inc.	
  




Slide	
  14	
  	
  
A	
  LiHle	
  About	
  Me	
  (Tony)	
  
                      •     1994-­‐1995:    	
  Pizza	
  business	
  in	
  college	
  


                      •     1996-­‐1998:    	
  LinkExchange	
  (online	
  adverFsing)	
  
                           	
   	
             	
  Sold	
  to	
  MicrosoJ	
  for	
  $265	
  million	
  


                      •     1999:           	
  Venture	
  Frogs	
  (investment	
  fund)	
  -­‐	
  Invested	
  in	
  Zappos.com,	
  Inc.	
  


                      •     1999-­‐Today:   	
  Zappos.com,	
  Inc.	
  




Slide	
  15	
  	
  
A	
  LiHle	
  About	
  Me	
  (Tony)	
  
                      •     1994-­‐1995:      	
  Pizza	
  business	
  in	
  college	
  


                      •     1996-­‐1998:      	
  LinkExchange	
  (online	
  adverFsing)	
  
                           	
   	
                    	
  Sold	
  to	
  MicrosoJ	
  for	
  $265	
  million	
  


                      •     1999:             	
  Venture	
  Frogs	
  (investment	
  fund)	
  -­‐	
  Invested	
  in	
  Zappos.com,	
  Inc.	
  


                      •     1999-­‐Today:     	
  Zappos.com,	
  Inc.	
  


                      •     Nov	
  2009:      	
                                           ,	
  shares	
  valued	
  at	
  $1.2	
  billion	
  at	
  closing	
  


                      •     June	
  2010:     	
  “                                   ”	
  book	
  published	
  
                                            	
   	
  www.deliveringhappinessbook.com	
  


Slide	
  16	
  	
  
The	
  Power	
  of	
  WOW	
  
                  $1,000
Gross Sales $MM




                        800



                        600


                        400



                        200




                              ‘00   ‘01   ‘02   ‘03   ‘04   ‘05   ‘06   ‘07   ‘08
  Slide	
  17	
  	
  
Customer	
  Experience	
  
          What	
  do	
  customers	
  expect?	
  



          What	
  do	
  customers	
  actually	
  experience?	
  



          What	
  emoFons	
  do	
  customers	
  feel?	
  



          What	
  stories	
  do	
  they	
  tell	
  their	
  friends?	
  



          How	
  can	
  culture	
  create	
  more	
  stories	
  and	
  memories?	
  



Slide	
  18	
  	
  
CULTURE	
  
                      the	
  #1	
  priority	
  

                                     Hiring	
  for	
  culture	
  

                                     5	
  weeks	
  of	
  training	
  

                                     $2000	
  offer	
  

                                     Culture	
  book	
  

                                     TwiHer	
  helps	
  build	
  culture	
  
Slide	
  19	
  	
  
Clothing,	
  Customer	
  Service,	
  Culture	
  


                                        Culture	
  

                                 Customer	
  Service	
  

                                       Clothing	
  

Slide	
  20	
  	
  
Clothing	
  




Slide	
  21	
  	
  
Customer	
  Service	
  




Slide	
  22	
  	
  
Culture	
  




Slide	
  23	
  	
  
Clothing,	
  Customer	
  Service,	
  Culture	
  


                                        Culture	
  

                                 Customer	
  Service	
  

                                       Clothing	
  

Slide	
  24	
  	
  
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	
  25	
  	
  
Building	
  Great
                                      	
  




Slide	
  26	
  	
  
CULTURE                                       	
  

                      “CommiHable	
  Core	
  Values”	
  


                                 Don’t	
  make	
  your	
  core	
  values	
  	
  
                        just	
  a	
  meaningless	
  plaque	
  on	
  the	
  wall…	
  

Slide	
  27	
  	
  
Example:	
  Core	
  Values	
  

                      1.     Deliver	
  WOW	
  Through	
  Service	
  
                      2.     Embrace	
  and	
  Drive	
  Change	
  
                      3.     Create	
  Fun	
  and	
  a	
  Lifle	
  Weirdness	
  
                      4.     Be	
  Adventurous,	
  CreaFve,	
  and	
  Open-­‐Minded	
  
                      5.     Pursue	
  Growth	
  and	
  Learning	
  
                      6.     Build	
  Open	
  and	
  Honest	
  RelaFonships	
  With	
  CommunicaFon	
  
                      7.     Build	
  a	
  PosiFve	
  Team	
  and	
  Family	
  Spirit	
  
                      8.     Do	
  More	
  with	
  Less	
  
                      9.     Be	
  Passionate	
  and	
  Determined	
  
                      10.    Be	
  Humble	
  




Slide	
  28	
  	
  
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
                                                                                	
  


Slide	
  29	
  	
  
“That’s	
  great,	
  
                         but	
  it	
  would	
  	
  
                      never	
  work	
  at	
  my	
  
                          company…”	
  

Slide	
  30	
  	
  
ALIGNMENT	
  
                      It	
  doesn’t	
  maHer	
  what	
  your	
  
                                core	
  values	
  are…	
  
                                 as	
  long	
  as	
  you	
  	
  
                               commit	
  to	
  them.	
  
Slide	
  31	
  	
  
From	
  Mariana	
  
     Today	
  I	
  saw	
  your	
  workshop	
  in	
  Digital	
  Age	
  and	
  I	
  like	
  to	
  congratulate	
  you.	
  Definitely	
  was	
  the	
  best	
  workshop!	
  
     Totally	
  inspiring!	
  Something	
  about	
  what	
  you	
  said	
  today,	
  really	
  touched	
  me.	
  I	
  don’t	
  know	
  if	
  you’re	
  going	
  to	
  read	
  
     this	
  e-­‐mail,	
  it’s	
  a	
  lifle	
  silly,	
  but	
  I	
  was	
  very	
  anxious	
  to	
  tell	
  you	
  these.	
  

     I	
  had	
  my	
  own	
  theory	
  of	
  happiness.	
  I	
  call	
  it	
  “Yummy	
  lifle	
  thing”,	
  in	
  Portuguese	
  “Coisinha	
  Gostosa”.	
  In	
  my	
  theory	
  
     every	
  day	
  I	
  allow	
  myself	
  to	
  do	
  something	
  that’s	
  really	
  makes	
  me	
  happy.	
  For	
  example:	
  go	
  to	
  a	
  bar	
  with	
  friends,	
  
     read	
  a	
  page	
  off	
  a	
  book,	
  have	
  lunch	
  in	
  a	
  place	
  I	
  love,	
  buy	
  clothes,	
  play	
  with	
  my	
  nieces.	
  In	
  other	
  words,	
  I	
  have	
  
     listed	
  all	
  things	
  that	
  I	
  love	
  to	
  do,	
  and	
  every	
  day	
  I	
  do	
  something.	
  It	
  may	
  even	
  be	
  eaFng	
  a	
  candy!	
  Has	
  the	
  more	
  
     complex	
  items	
  to	
  the	
  simplest.	
  

     So,	
  I	
  really	
  idenFfied	
  with	
  your	
  personality,	
  spirit	
  and	
  concept	
  of	
  life.	
  Else,	
  I	
  pracFce	
  in	
  my	
  daily	
  this	
  “theory”	
  
     with	
  my	
  team.	
  I	
  coordinate	
  a	
  team	
  of	
  11	
  people.	
  I’m	
  responsible,	
  in	
  a	
  technology’s	
  company,	
  for	
  a	
  department	
  
     of	
  creaFon	
  and	
  communicaFon	
  (www.totvs.com).	
  My	
  principle	
  is	
  “we	
  have	
  to	
  be	
  happy	
  every	
  day.”	
  We	
  spent	
  
     80%	
  of	
  our	
  life	
  inside	
  the	
  company,	
  so	
  we	
  HAVE	
  to	
  be	
  happy	
  there!	
  I	
  give	
  priority	
  to	
  people	
  and	
  not	
  to	
  projects.	
  
     Very	
  polemic,	
  don’t	
  you	
  think?	
  

     You	
  know	
  why	
  I	
  am	
  see	
  as	
  a	
  competent	
  professional?	
  Because	
  all	
  my	
  projects	
  are	
  delivered	
  in	
  days,	
  with	
  quality.	
  
     You	
  know	
  why?	
  Because	
  when	
  I	
  can	
  do	
  it,	
  the	
  return	
  I	
  have	
  from	
  my	
  client,	
  makes	
  me	
  happy!	
  Simple	
  like	
  this!!	
  

     Well,	
  I	
  hope	
  you	
  had	
  understood	
  me.	
  And	
  I´m	
  very	
  happy	
  to	
  know	
  that	
  there	
  someone	
  else	
  in	
  the	
  world	
  who	
  
     thinks	
  like	
  me!	
  Good	
  luck	
  in	
  propagaFon	
  this	
  concept!	
  




Slide	
  32	
  	
  
From	
  John	
  Korioth	
  
   My	
  name	
  is	
  John	
  Korioth.	
  	
  I	
  also	
  go	
  by	
  the	
  nickname	
  	
  “College.”	
  	
  It’s	
  a	
  long	
  story	
  I	
  can	
  tell	
  you	
  later,	
  but	
  yes,	
  I	
  did	
  
   finish	
  college.	
  

   When	
  I	
  did	
  finish	
  college	
  in	
  1990,	
  the	
  economy	
  was	
  almost	
  as	
  bad	
  as	
  it	
  is	
  today,	
  and	
  it	
  was	
  tough	
  to	
  get	
  a	
  job.	
  	
  	
  A	
  
   friend	
  of	
  mine	
  was	
  opening	
  a	
  bar	
  and	
  asked	
  if	
  I	
  wanted	
  to	
  bartend	
  unFl	
  something	
  more	
  substanFal	
  came	
  long.	
  	
  
   Nineteen	
  years	
  later,	
  and	
  I	
  am	
  sFll	
  in	
  the	
  business.	
  

   There	
  have	
  been	
  some	
  ins	
  and	
  outs	
  during	
  those	
  19	
  years,	
  but	
  today	
  I	
  co-­‐own	
  a	
  bar	
  (SIX)	
  in	
  AusFn,	
  Texas.	
  	
  We	
  
   have	
  14	
  investors,	
  and	
  it	
  just	
  so	
  happens	
  that	
  one	
  of	
  the	
  more	
  famous	
  investors	
  is	
  Tour	
  de	
  France	
  Champion	
  
   Lance	
  Armstrong.	
  

   I	
  have	
  known	
  Lance	
  for	
  more	
  than	
  15	
  years,	
  and	
  he	
  is	
  one	
  of	
  my	
  best	
  friends.	
  When	
  he	
  was	
  diagnosed	
  with	
  
   tesFcular	
  cancer	
  in	
  1996,	
  I	
  leJ	
  the	
  bar	
  business	
  to	
  co-­‐found	
  the	
  Lance	
  Armstrong	
  FoundaFon	
  with	
  Lance.	
  	
  AJer	
  
   three	
  years	
  of	
  being	
  the	
  execuFve	
  director,	
  I	
  leJ	
  and	
  went	
  back	
  into	
  the	
  bar	
  business.	
  	
  I	
  sFll	
  help	
  out	
  at	
  the	
  
   FoundaFon	
  as	
  much	
  as	
  I	
  possibly	
  can	
  and	
  as	
  much	
  as	
  they	
  will	
  let	
  me.	
  	
  It	
  is	
  something	
  that	
  will	
  always	
  be	
  close	
  
   to	
  my	
  heart.	
  

   We	
  opened	
  “SIX”	
  in	
  2005,	
  and	
  just	
  like	
  a	
  lot	
  of	
  new	
  bars,	
  things	
  seemed	
  to	
  be	
  great	
  at	
  first.	
  	
  We	
  were	
  the	
  new	
  
   game	
  in	
  town,	
  and	
  things	
  were	
  rolling	
  our	
  way.	
  	
  The	
  nice	
  thing	
  about	
  the	
  bar	
  business	
  is	
  when	
  you	
  first	
  open	
  
   and	
  you	
  do	
  it	
  right,	
  you	
  can	
  really	
  cash-­‐flow	
  fast.	
  	
  Everyone	
  loves	
  you	
  when	
  you’re	
  new.	
  The	
  deciding	
  factor	
  in	
  
   the	
  bar	
  business	
  is,	
  how	
  do	
  they	
  love	
  you	
  aJer	
  	
  two	
  years.	
  	
  This	
  is	
  where	
  a	
  lot	
  of	
  bars	
  fail	
  and	
  have	
  to	
  shut	
  down	
  
   and	
  	
  totally	
  reinvent	
  themselves.	
  	
  Or	
  at	
  least	
  they	
  think	
  they	
  do.	
  	
  We	
  started	
  to	
  go	
  through	
  this	
  same	
  cycle	
  unFl	
  
   I	
  ran	
  into	
  two	
  of	
  my	
  compeFtors.	
  	
  They	
  were	
  absolutely	
  miserable;	
  both	
  wanted	
  to	
  sell	
  their	
  bars	
  or	
  just	
  shut	
  
   them	
  down.	
  They	
  hated	
  everything	
  about	
  the	
  business	
  and,	
  most	
  of	
  all,	
  they	
  disliked	
  their	
  employees.	
  	
  I	
  am	
  
Slide	
  33	
  	
   sure	
  their	
  employees	
  didn’t	
  much	
  like	
  them.	
  
   prefy	
  
From	
  John	
  Korioth	
  
     I	
  have	
  to	
  admit,	
  I	
  was	
  feeling	
  the	
  same	
  way;	
  and	
  then	
  I	
  thought	
  to	
  	
  myself,	
  there	
  has	
  to	
  be	
  a	
  befer	
  way.	
  	
  It	
  just	
  
     doesn¹t	
  have	
  to	
  be	
  this	
  way!	
  	
  That¹s	
  when	
  I	
  saw	
  Jim	
  Collins,	
  author	
  or	
  ³Good	
  to	
  Great²,	
  speak	
  at	
  the	
  Livestrong	
  
     Summit.	
  	
  I	
  loved	
  his	
  book	
  and	
  thought	
  it	
  was	
  the	
  best	
  business	
  book	
  ever	
  wrifen.	
  	
  I	
  guess	
  I	
  didn¹t	
  read	
  it	
  very	
  
     well,	
  	
  because	
  in	
  his	
  speech	
  he	
  reminded	
  me	
  that	
  “Life	
  is	
  about	
  ‘who’,	
  not	
  ‘what’”.	
  

     In	
  the	
  bar	
  business,	
  we	
  tend	
  to	
  think	
  it¹s	
  all	
  about	
  concept,	
  look,	
  locaFon,	
  music	
  systems,	
  et	
  cetera.	
  	
  Well,	
  it¹s	
  
     not.	
  	
  I	
  sat	
  down	
  with	
  my	
  business	
  partner	
  Chris	
  and	
  said,	
  we	
  have	
  to	
  change	
  or	
  I	
  am	
  out	
  of	
  the	
  business.	
  	
  I	
  didn¹t	
  
     want	
  to	
  become	
  like	
  our	
  compeFtors.	
  	
  Chris	
  agreed.	
  	
  We	
  started	
  out	
  on	
  a	
  mission	
  to	
  change	
  our	
  staff	
  to	
  give	
  the	
  
     best	
  customer	
  service	
  that	
  the	
  bar	
  business	
  has	
  ever	
  seen.	
  	
  We	
  started	
  taking	
  employees	
  to	
  lunch	
  every	
  day	
  for	
  
     2	
  weeks	
  and	
  asked	
  them	
  what	
  they	
  thought	
  great	
  customer	
  service	
  was	
  and	
  how	
  they	
  thought	
  we	
  ought	
  	
  to	
  do	
  
     it.	
  	
  They	
  thought	
  we	
  were	
  crazy	
  and	
  didn¹t	
  understand	
  what	
  we	
  were	
  trying	
  to	
  do.	
  	
  This	
  became	
  very	
  frustraFng	
  
     for	
  us	
  and	
  our	
  employees:	
  we	
  were	
  thinking	
  about	
  giving	
  good	
  service,	
  and	
  they	
  were	
  thinking	
  we	
  already	
  did.	
  	
  
     It	
  leJ	
  Chris	
  and	
  me	
  very	
  frustrated	
  and	
  searching	
  for	
  answers.	
  

     There	
  is	
  an	
  old	
  saying,	
  “When	
  the	
  student	
  is	
  ready,	
  the	
  teacher	
  will	
  appear.”	
  I	
  figure	
  this	
  is	
  where	
  Zappos	
  and	
  
     Tony	
  came	
  into	
  play.	
  	
  	
  I	
  was	
  having	
  lunch	
  with	
  Doug	
  Ulman,	
  the	
  current	
  CEO	
  of	
  the	
  Lance	
  Armstrong	
  
     FoundaFon.	
  I	
  told	
  him	
  what	
  we	
  were	
  trying	
  to	
  accomplish	
  at	
  SIX	
  and	
  how	
  frustrated	
  we	
  were.	
  	
  He	
  told	
  me	
  
     about	
  Tony	
  and	
  Zappos.	
  	
  So	
  I	
  went	
  to	
  look	
  at	
  Zappos’	
  website	
  and	
  ordered	
  some	
  shoes	
  to	
  see	
  what	
  would	
  
     happen.	
  	
  It	
  amazed	
  me	
  how	
  fast	
  I	
  got	
  them,	
  and	
  the	
  shipping	
  was	
  free.	
  

     I	
  thought	
  to	
  myself,	
  well,	
  that¹s	
  just	
  promoFon	
  and	
  systems,	
  	
  Not	
  being	
  so	
  impressed.	
  Chris	
  and	
  I	
  just	
  started	
  
     doing	
  all	
  the	
  research	
  on	
  Zappos	
  we	
  could.	
  We	
  came	
  across	
  many	
  arFcles	
  about	
  Zappos	
  and	
  the	
  culture	
  at	
  the	
  
     Zappos	
  Headquarters.	
  	
  Chris	
  	
  even	
  took	
  a	
  trip	
  out	
  to	
  Vegas	
  and	
  took	
  	
  the	
  tour	
  of	
  the	
  Zappos	
  Headquarters.	
  	
  He	
  
     came	
  back	
  with	
  many	
  great	
  stories	
  and,	
  also,	
  the	
  2008	
  Zappos	
  culture	
  book.	
  	
  We	
  started	
  to	
  share	
  our	
  research	
  
     and	
  this	
  book	
  with	
  our	
  employees.	
  
Slide	
  34	
  	
  
From	
  John	
  Korioth	
  
     We	
  really	
  knew	
  that	
  Zappos	
  and	
  Tony	
  were	
  starFng	
  to	
  have	
  an	
  effect	
  	
  on	
  our	
  business	
  when	
  we	
  saw	
  him	
  speak	
  
     at	
  the	
  South	
  by	
  Southwest	
  Music	
  FesFval,	
  a	
  big	
  music	
  and	
  interacFve	
  fesFval	
  that	
  has	
  been	
  going	
  on	
  in	
  AusFn	
  
     for	
  over	
  25	
  years.	
  	
  You	
  might	
  be	
  thinking	
  that	
  we	
  went	
  down	
  to	
  an	
  auditorium	
  and	
  watched	
  with	
  a	
  couple	
  of	
  
     thousand	
  other	
  people	
  -­‐	
  well,	
  we	
  didn¹t.	
  	
  I	
  didn¹t	
  even	
  know	
  he	
  was	
  going	
  to	
  be	
  speaking.	
  	
  It	
  was	
  one	
  of	
  our	
  
     cocktail	
  waitresses	
  (Julie)	
  who	
  understood	
  very	
  well	
  what	
  we	
  were	
  trying	
  to	
  accomplish,	
  and	
  she	
  found	
  it	
  online	
  
     and	
  shared	
  it	
  with	
  the	
  rest	
  of	
  the	
  staff.	
  	
  When	
  she	
  did	
  that,	
  we	
  knew	
  we	
  had	
  changed	
  the	
  culture	
  of	
  SIX.	
  Of	
  all	
  
     the	
  bars	
  that	
  Chris,	
  myself	
  and	
  many	
  other	
  of	
  our	
  employees	
  had	
  worked	
  at,	
  we	
  had	
  never	
  seen	
  or	
  heard	
  of	
  the	
  
     staff	
  sharing	
  this	
  type	
  of	
  informaFon	
  with	
  one	
  another.	
  

     When	
  I	
  watched	
  Tony	
  speak,	
  the	
  one	
  thing	
  he	
  spoke	
  of	
  that	
  really	
  stuck	
  out	
  to	
  us	
  was	
  that	
  he	
  didn’t	
  want	
  to	
  be	
  
     the	
  same	
  run-­‐of-­‐the-­‐mill	
  internet	
  company.	
  He	
  wanted	
  to	
  be	
  part	
  of	
  something	
  different	
  and	
  befer.	
  	
  Even	
  
     though	
  they	
  were	
  selling	
  shoes	
  like	
  a	
  bunch	
  of	
  other	
  companies,	
  they	
  wanted	
  something	
  befer,	
  something	
  
     more	
  rewarding,	
  a	
  company	
  that	
  was	
  going	
  to	
  set	
  them	
  apart	
  from	
  the	
  rest	
  and	
  make	
  himself	
  and	
  the	
  rest	
  of	
  
     the	
  employees	
  happy	
  to	
  come	
  to	
  work.	
  This	
  was	
  preaching	
  to	
  the	
  choir,	
  but	
  how?	
  During	
  Tony’s	
  speech	
  
     something	
  he	
  said	
  something	
  that	
  we	
  never	
  really	
  thought	
  about	
  and	
  it	
  was	
  that	
  you	
  may	
  think	
  that	
  Zappos	
  
     priority	
  was	
  “customer	
  service”.	
  Tony	
  explained	
  that	
  the	
  number	
  one	
  priority	
  at	
  Zappos	
  was	
  really	
  “company	
  
     culture”.	
  If	
  you	
  get	
  the	
  culture	
  right	
  the	
  rest	
  of	
  the	
  stuff	
  will	
  just	
  happen	
  naturally.	
  

     Over	
  the	
  course	
  of	
  the	
  next	
  six	
  months,	
  which	
  was	
  eight	
  months	
  aJer	
  our	
  iniFal	
  thought	
  to	
  change,	
  we	
  learned	
  
     what	
  Zappos	
  had	
  figured	
  out:	
  	
  It’s	
  about	
  the	
  culture	
  of	
  your	
  business	
  that	
  derives	
  everything	
  good	
  and	
  bad.	
  You	
  
     want	
  to	
  have	
  great	
  customer	
  service?	
  You	
  befer	
  have	
  a	
  great	
  culture.	
  You	
  want	
  employee	
  retenFon?	
  You	
  befer	
  
     have	
  a	
  great	
  culture.	
  



Slide	
  35	
  	
  
From	
  John	
  Korioth	
  
     How	
  did	
  we	
  do	
  this?	
  We	
  started	
  to	
  pay	
  more	
  afenFon	
  to	
  our	
  employees	
  and	
  what	
  they	
  were	
  telling	
  us,	
  We	
  got	
  
     them	
  more	
  involved	
  in	
  the	
  process	
  of	
  decisions.	
  We	
  started	
  to	
  give	
  them	
  befer	
  customer	
  service.	
  For	
  example:	
  
     At	
  the	
  end	
  of	
  every	
  night	
  a	
  simple	
  manager	
  log	
  is	
  created	
  and	
  emailed	
  to	
  all	
  the	
  managers	
  and	
  owners.	
  It	
  has	
  
     the	
  sales	
  numbers	
  and	
  general	
  thoughts	
  of	
  how	
  the	
  night	
  went.	
  It	
  also	
  has	
  maintenance	
  items	
  that	
  the	
  
     employees	
  may	
  have	
  noFced	
  or	
  just	
  thoughts	
  on	
  how	
  they	
  think	
  the	
  night	
  could	
  have	
  gone	
  befer.	
  If	
  they	
  list	
  a	
  
     maintenance	
  item	
  we	
  do	
  everything	
  we	
  possibly	
  can	
  do	
  to	
  have	
  that	
  item	
  fixed	
  by	
  the	
  Fme	
  they	
  walk	
  in	
  the	
  
     next	
  day	
  for	
  work.	
  We	
  also	
  call,	
  email	
  or	
  text	
  them	
  and	
  tell	
  them	
  we	
  fixed	
  the	
  problem	
  or	
  that	
  we	
  are	
  working	
  
     on	
  it.	
  This	
  tells	
  them	
  that	
  we	
  listen	
  to	
  them	
  and	
  we	
  take	
  it	
  seriously.	
  If	
  it	
  is	
  an	
  idea	
  that	
  they	
  might	
  have	
  to	
  
     improve	
  the	
  customer	
  experience	
  or	
  work	
  environment,	
  Chris	
  or	
  myself	
  will	
  follow	
  up	
  with	
  them	
  in	
  person	
  to	
  
     discuss	
  it.	
  

     Another	
  example	
  is	
  most	
  employees	
  in	
  the	
  service	
  industry	
  hate	
  employee	
  meeFngs.	
  They	
  are	
  usually	
  on	
  their	
  
     day	
  off	
  and	
  are	
  full	
  of	
  informaFon	
  they	
  already	
  know.	
  We	
  took	
  a	
  hard	
  look	
  at	
  how	
  to	
  make	
  these	
  more	
  
     enjoyable,	
  interacFve	
  and	
  more	
  rewarding.	
  We	
  now	
  usually	
  take	
  them	
  to	
  dinner	
  instead	
  of	
  hosFng	
  the	
  meeFng	
  
     at	
  our	
  locaFon.	
  This	
  puts	
  them	
  in	
  a	
  different	
  mindset	
  of	
  something	
  new	
  and	
  interesFng.	
  We	
  may	
  also	
  require	
  
     them	
  to	
  be	
  prepared	
  to	
  tell	
  a	
  story	
  of	
  some	
  good	
  or	
  bad	
  customer	
  service	
  experience	
  they	
  encountered	
  at	
  
     another	
  business.	
  This	
  usually	
  results	
  in	
  some	
  good	
  laughs	
  and	
  some	
  good	
  moments	
  of	
  perspecFve	
  of	
  how	
  they	
  
     should	
  treat	
  our	
  customers.	
  I	
  use	
  to	
  spend	
  20	
  minutes	
  preparing	
  for	
  these	
  meeFngs	
  now	
  I	
  take	
  4	
  hours,	
  it	
  
     makes	
  all	
  the	
  difference	
  in	
  the	
  world.	
  




Slide	
  36	
  	
  
From	
  John	
  Korioth	
  
     What	
  does	
  this	
  do	
  for	
  us?	
  Everything!	
  Employee	
  retenFon	
  is	
  way	
  befer	
  than	
  any	
  other	
  place	
  I	
  have	
  ever	
  
     worked	
  or	
  owned.	
  All	
  of	
  our	
  cocktail	
  waitresses	
  are	
  part	
  Fme	
  due	
  to	
  the	
  nature	
  of	
  our	
  business.	
  Most	
  of	
  them	
  
     have	
  other	
  part	
  Fme	
  jobs	
  or	
  are	
  in	
  school.	
  Just	
  the	
  other	
  day	
  I	
  was	
  talking	
  to	
  one	
  of	
  them	
  (Kathleen)	
  and	
  she	
  
     told	
  me	
  that	
  she	
  had	
  7	
  other	
  jobs	
  in	
  the	
  past	
  year	
  and	
  she	
  quit	
  all	
  of	
  them	
  because	
  the	
  work	
  environment	
  was	
  
     so	
  bad	
  and	
  nothing	
  compared	
  to	
  SIX.	
  The	
  last	
  meeFng	
  employee	
  meeFng	
  we	
  had	
  one	
  of	
  our	
  oldest	
  employees	
  
     (Rod)	
  stood	
  up	
  out	
  of	
  the	
  blue	
  and	
  said	
  he	
  had	
  worked	
  at	
  10	
  other	
  bars	
  and	
  restaurants	
  and	
  they	
  never	
  
     discussed	
  the	
  things	
  we	
  do	
  and	
  it	
  has	
  totally	
  changed	
  the	
  way	
  he	
  looks	
  at	
  coming	
  to	
  work.	
  When	
  a	
  customer	
  
     walks	
  into	
  a	
  our	
  place	
  and	
  sees	
  the	
  same	
  people	
  working	
  it	
  makes	
  them	
  feel	
  at	
  home.	
  It	
  may	
  sound	
  cheesy	
  from	
  
     the	
  TV	
  show	
  Cheers	
  but	
  “you	
  want	
  to	
  go	
  to	
  a	
  place	
  where	
  everyone	
  knows	
  your	
  name”.	
  

     We	
  are	
  going	
  into	
  our	
  5th	
  year	
  of	
  business,	
  and	
  we	
  have	
  matched	
  the	
  previous	
  year¹s	
  sales	
  each	
  year.	
  	
  You	
  
     might	
  be	
  thinking	
  that	
  we	
  should	
  have	
  experienced	
  growth.	
  	
  This	
  economy,	
  and	
  other	
  circumstances,	
  have	
  hit	
  
     other	
  bars	
  and	
  restaurants	
  in	
  our	
  area	
  very	
  hard.	
  Some	
  good	
  establishments	
  are	
  down	
  30	
  -­‐	
  40%.	
  Every	
  bar	
  is	
  
     probably	
  down	
  except	
  us.	
  	
  We	
  tend	
  to	
  think	
  we	
  are	
  up	
  30%	
  even	
  though	
  we	
  just	
  matched	
  last	
  year¹s	
  sales.	
  	
  We	
  
     know	
  one	
  reason	
  for	
  that	
  is	
  our	
  culture	
  and	
  Zappos.	
  

     The	
  most	
  rewarding	
  thing	
  to	
  us	
  is,	
  when	
  we	
  are	
  walking	
  around	
  in	
  AusFn	
  and	
  we	
  see	
  some	
  of	
  our	
  friends,	
  the	
  
     first	
  thing	
  they	
  say	
  to	
  us	
  is	
  that	
  they	
  were	
  in	
  SIX	
  and	
  our	
  employees	
  were	
  just	
  so	
  nice.	
  	
  They	
  ask	
  me	
  how	
  I	
  get	
  
     them	
  to	
  act	
  like	
  that	
  when	
  other	
  bars	
  are	
  not	
  that	
  way.	
  	
  I	
  just	
  smile	
  and	
  say,	
  “Zappos,	
  Baby.”	
  	
  I	
  don’t	
  tell	
  them	
  
     the	
  whole	
  story;	
  	
  I	
  let	
  them	
  try	
  and	
  figure	
  it	
  out	
  for	
  themselves	
  like	
  we	
  did.	
  	
  As	
  I	
  said	
  earlier,	
  “when	
  the	
  student	
  
     is	
  ready,	
  the	
  teacher	
  will	
  appear.”	
  	
  Thanks,	
  Tony!	
  




Slide	
  37	
  	
  
From	
  Dave	
  BrauSgan	
  	
  
     A	
  few	
  thoughts	
  on	
  how	
  you	
  guys	
  "infected"	
  me!	
  

     I	
  use	
  infected,	
  as	
  I	
  think	
  that	
  for	
  me,	
  going	
  to	
  Zappos	
  is	
  like	
  a	
  spa	
  for	
  business	
  owners.	
  	
  I	
  leave	
  charged	
  back	
  up	
  
     and	
  ready	
  to	
  take	
  on	
  the	
  world.	
  	
  I	
  also	
  leave	
  ready	
  to	
  spread	
  the	
  happiness.	
  	
  So	
  they	
  are	
  infecFng	
  me	
  somehow.	
  	
  
     Its	
  either	
  in	
  the	
  air	
  or	
  the	
  mixed	
  nut	
  machines	
  all	
  around	
  the	
  office!	
  

     With	
  Atlanta	
  RefrigeraFon,	
  I	
  loved	
  work	
  prior	
  to	
  going	
  to	
  Zappos.	
  	
  I	
  got	
  up	
  every	
  day	
  ready	
  to	
  knock	
  the	
  day	
  out.	
  	
  
     I	
  thought	
  I	
  had	
  a	
  great	
  company	
  and	
  did	
  not	
  know	
  any	
  befer.	
  	
  The	
  way	
  my	
  dad	
  ran	
  it	
  was	
  the	
  way	
  I	
  ran	
  it.	
  	
  I	
  took	
  
     the	
  other	
  jobs	
  I	
  had	
  in	
  life	
  and	
  used	
  that,	
  all	
  the	
  same	
  type	
  of	
  cultures.	
  	
  Something	
  though	
  started	
  to	
  sit	
  a	
  lifle	
  
     weird	
  (maybe	
  I	
  saw	
  an	
  arFcle,	
  read	
  a	
  blog)	
  not	
  really	
  sure	
  how	
  that	
  feeling	
  started,	
  but	
  it	
  did.	
  	
  I	
  found	
  out	
  about	
  
     Zappos	
  and	
  I	
  was	
  interested,	
  but	
  very	
  skepFcal.	
  
     	
  	
  	
  
     AJer	
  Zappos	
  Insights	
  I	
  was	
  amazed	
  and	
  seeing	
  it	
  made	
  me	
  realize	
  that	
  you	
  could	
  operate	
  a	
  business	
  in	
  a	
  fun,	
  
     happy	
  atmosphere	
  and	
  have	
  a	
  reason	
  to	
  work	
  more	
  than	
  just	
  the	
  profit.	
  	
  You	
  could	
  empower,	
  trust,	
  and	
  really	
  
     make	
  work	
  a	
  special	
  place.	
  	
  Since	
  my	
  return	
  from	
  Zappos,	
  we	
  have	
  made	
  great	
  strides	
  in	
  building	
  up	
  our	
  
     culture,	
  something	
  we	
  had	
  all	
  along,	
  but	
  did	
  not	
  know	
  what	
  it	
  was,	
  how	
  to	
  build	
  it,	
  or	
  how	
  important	
  it	
  was	
  in	
  
     making	
  decisions!	
  	
  The	
  foundaFon,	
  core	
  values,	
  was	
  something	
  that	
  we	
  have	
  to	
  give	
  100	
  percent	
  thanks	
  to	
  
     Zappos	
  for,	
  as	
  I	
  would	
  have	
  never	
  done	
  it,	
  but	
  listening	
  to	
  Tony	
  talk	
  about	
  them,	
  I	
  knew	
  it	
  was	
  what	
  needed	
  to	
  
     be	
  done.	
  
     	
  	
  	
  
     On	
  a	
  personal	
  level,	
  Tony's	
  happiness	
  research	
  really	
  hit	
  home	
  with	
  me.	
  	
  He	
  inspired	
  me	
  to	
  really	
  step	
  back	
  and	
  
     look	
  at	
  my	
  life	
  and	
  see	
  what	
  made	
  me	
  happy	
  for	
  the	
  long	
  term,	
  not	
  just	
  short	
  term	
  happiness.	
  	
  	
  With	
  work	
  
     taking	
  priority	
  of	
  my	
  life	
  since	
  I	
  was	
  lifle	
  watching	
  my	
  dad	
  run	
  the	
  company,	
  I	
  found	
  that	
  I	
  did	
  not	
  want	
  that	
  
     same	
  thing	
  with	
  me	
  and	
  my	
  sons	
  (2	
  and	
  6).	
  	
  	
  
Slide	
  38	
  	
  
From	
  Dave	
  BrauSgan	
  	
  
     Since	
  Zappos,	
  I	
  am	
  happier	
  now	
  than	
  I	
  can	
  ever	
  remember	
  in	
  the	
  past.	
  	
  I	
  ditched	
  stressful	
  lunch	
  meeFng	
  and	
  
     took	
  up	
  exercise.	
  	
  It	
  led	
  to	
  me	
  to	
  dropping	
  20lbs	
  and	
  starFng	
  triathlons	
  and	
  coaching.	
  	
  I	
  am	
  doing	
  an	
  Iron	
  man	
  in	
  
     May	
  and	
  have	
  a	
  side	
  job	
  as	
  The	
  North	
  Face	
  store	
  weekly	
  run	
  leader!	
  	
  I	
  am	
  happy	
  when	
  I	
  am	
  out	
  on	
  the	
  road,	
  the	
  
     bike,	
  or	
  the	
  pool.	
  	
  I	
  also	
  use	
  it	
  to	
  reduce	
  my	
  stress	
  at	
  work	
  allowing	
  me	
  not	
  to	
  take	
  it	
  home	
  to	
  my	
  family.	
  

     I	
  am	
  at	
  a	
  new	
  level	
  of	
  happiness.	
  My	
  life	
  is	
  simpler	
  now.	
  	
  I	
  have	
  started	
  a	
  passion	
  project,	
  helping	
  employees	
  
     reach	
  their	
  dreams.	
  	
  I	
  ask	
  them	
  for	
  101	
  and	
  we	
  are	
  knocking	
  them	
  out!	
  	
  I	
  am	
  currently	
  working	
  on	
  two	
  that	
  are	
  
     really	
  unique.	
  	
  One	
  of	
  my	
  customer	
  service	
  ladies	
  wants	
  to	
  go	
  to	
  the	
  Oprah	
  show	
  and	
  another	
  lady	
  wants	
  to	
  
     meet	
  the	
  Gosslin	
  kids	
  (from	
  John	
  and	
  Kate	
  plus	
  8).	
  	
  Not	
  sure	
  how	
  I	
  am	
  going	
  to	
  pull	
  those	
  off,	
  but	
  I	
  know	
  it	
  can	
  
     be	
  done!!	
  

     It’s	
  funny,	
  the	
  one	
  thing	
  that	
  sFcks	
  in	
  my	
  mind	
  on	
  every	
  visit	
  (I	
  have	
  done	
  a	
  few	
  now)	
  to	
  Zappos	
  is	
  how	
  freaky	
  
     the	
  door	
  opening	
  is.	
  	
  People	
  go	
  out	
  of	
  their	
  way	
  to	
  hold	
  a	
  door	
  open	
  in	
  that	
  place.	
  	
  That	
  small	
  gesture	
  is	
  edge	
  of	
  
     the	
  culture	
  waterfall	
  you	
  go	
  over	
  when	
  you	
  walk	
  in.	
  	
  	
  I	
  tell	
  myself	
  now	
  when	
  I	
  am	
  having	
  a	
  bad	
  day	
  or	
  not	
  living	
  
     my	
  personal	
  values	
  to	
  stop,	
  smile,	
  and	
  go	
  open	
  a	
  door	
  for	
  someone.	
  Its	
  amazing	
  how	
  something	
  small	
  can	
  bring	
  
     back	
  a	
  rush	
  of	
  emoFons	
  and	
  thoughts	
  of	
  such	
  a	
  happy	
  place	
  out	
  there	
  at	
  Zappos.	
  

     I	
  am	
  excited,	
  as	
  I	
  wonder	
  what	
  is	
  next!	
  	
  Tony	
  and	
  Zappos	
  has	
  made	
  realize	
  there	
  is	
  no	
  end	
  to	
  how	
  much	
  you	
  can	
  
     increase	
  your	
  happiness.	
  You	
  just	
  have	
  to	
  take	
  it	
  step	
  by	
  step,	
  and	
  when	
  in	
  doubt,	
  hop	
  a	
  plane	
  and	
  go	
  to	
  one	
  of	
  
     the	
  best	
  places	
  on	
  earth!	
  It’s	
  worth	
  every	
  cent	
  for	
  the	
  flight!	
  




Slide	
  39	
  	
  
Building	
  Great
                                      	
  




Slide	
  40	
  	
  
VISION	
  
                      “Whatever	
  you’re	
  thinking,	
  think	
     bigger          .”	
  

                                   Does	
  the	
  vision	
  have	
  meaning?	
  

                                Chase	
  the	
  vision,	
  not	
  the	
  money…	
  



Slide	
  41	
  	
  
VISION	
  
                 “Don’t	
  chase	
  the	
  paper,
                   	
  chase	
  the	
  dream.”	
  
                             Sean	
  Combs	
  aka	
  “Puff	
  Daddy”	
  to	
  rapper
                                                                                  	
  
                                 Biggie	
  Smalls	
  aka	
  “Notorious	
  B.I.G.” 	
  
                                                                 in	
  Notorious  	
  




Slide	
  42	
  	
  
ENTREPRENEURS:	
  



                       “What	
  would	
  you	
  be	
  
                      passionate	
  about	
  doing	
  
                      for	
  10	
  years	
  even	
  if	
  you	
  
                       never	
  made	
  a	
  dime?”	
  

Slide	
  43	
  	
  
EMPLOYEES:	
  



               What’s	
  the	
  larger	
  vision	
  
               and	
  greater	
  purpose	
  in	
  
                 their	
  work	
  beyond	
  
                 money	
  or	
  profits?	
  

Slide	
  44	
  	
  
VISION	
  



                      MOTIVATION	
  
                           vs.	
  
                      INSPIRATION	
  
Slide	
  45	
  	
  
Vision	
  &	
  Culture	
  
                            inspire     	
  
                      Passion	
  &	
  Purpose     	
  

Slide	
  46	
  	
  
Example	
  of	
  evolving	
  vision	
  and
           	
  brand	
  
                        1999   	
  SelecFon	
  

                        2003   	
  Customer	
  Service	
  

                        2005   	
  Culture	
  and	
  core	
  values	
  as	
  our	
  pla|orm	
  

                        2007   	
  Personal	
  EmoFonal	
  ConnecFon	
  

                        2009   	
  Delivering	
  Happiness	
  


Slide	
  47	
  	
  
Slide	
  48	
  	
  
QuesSons	
  
                        Where	
  does	
  the	
  story	
  begin?	
  



                        Where	
  does	
  the	
  story	
  end?	
  



                        How	
  do	
  you	
  reinforce	
  the	
  good	
  memories?	
  



                        What	
  were	
  the	
  emoFons,	
  posiFve	
  and	
  negaFve?	
  



                        How	
  can	
  you	
  create	
  more	
  stories	
  and	
  memories?	
  



Slide	
  49	
  	
  
What’s	
  your	
  business?	
  
                        You’re	
  not	
  in	
  the	
  _______	
  business.	
  



                        Cirque	
  du	
  Soleil	
  is	
  not	
  in	
  the	
  circus	
  business.	
  



                        You’re	
  in	
  the	
  experience	
  and	
  emoFons	
  business.	
  



                        You’re	
  in	
  the	
  stories	
  and	
  memories	
  business.	
  



                        Think	
  bigger.	
  



Slide	
  50	
  	
  
WHAT	
  IS	
  YOUR	
  GOAL	
  IN	
  LIFE?	
  


                         Grow	
                        Get	
  a	
  Great	
     Boyfriend	
  /	
  
                       Company	
                                                                               Be	
  Healthy	
  
                                                             Job	
              Girlfriend	
  
                           why?	
                           why?	
                   why?	
                       why?	
  


                      ReSre	
  Early	
                                           Find	
  Soul	
  
                                                      Make	
  Money	
  	
                                      Run	
  Faster	
  
                                                                                   Mate	
  
                           why?	
                           why?	
                   why?	
                       why?	
  


                      Spend	
  Time	
                                                                           Run	
  A	
  
                       w/	
  Family	
                 Buy	
  A	
  Home	
       Get	
  Married	
  
                                                                                                               Marathon	
  
                                           why?	
                 why?	
       why?	
               why?	
  



                                                         HAPPINESS	
  
Slide	
  52	
  	
  
RESEARCH	
  HAS	
  SHOWN	
  	
  


                                HAPPINESS                                                        	
  


                      People	
  are	
  very	
  bad	
  at	
  predicSng	
  what	
  
                        will	
  bring	
  them	
  sustained	
  happiness.	
  

                                   “When	
  I	
  get	
  ___,	
  I	
  will	
  be	
  happy.”	
  

                                “When	
  I	
  achieve	
  ___,	
  I	
  will	
  be	
  happy.”	
  


Slide	
  53	
  	
  
HAPPINESS	
  
                     There	
  is	
  a	
  SCIENCE	
  behind	
  many	
  aspects	
  of	
  business	
  including:	
  
                          conversion	
  
                          psychology	
  of	
  buying	
  
                          direct	
  markeFng	
  
                          customer	
  acquisiFon	
  metrics	
  
                          repeat	
  customer	
  behavior,	
  etc.	
  


                     What	
  if	
  you	
  spent	
  just	
  a	
  lifle	
  bit	
  of	
  your	
  Fme	
  studying	
  and	
  learning	
  
                      the	
  SCIENCE	
  of	
  HAPPINESS?	
  


                     How	
  much	
  HAPPIER	
  could	
  you	
  be?	
  


Slide	
  54	
  	
  
WHAT	
  IS	
  YOUR	
  GOAL	
  IN	
  LIFE?	
  

                         Grow	
                        Get	
  a	
  Great	
     Boyfriend	
  /	
  
                       Company	
                                                                               Be	
  Healthy	
  
                                                             Job	
              Girlfriend	
  
                           why?	
                           why?	
                   why?	
                       why?	
  


                      ReSre	
  Early	
                                           Find	
  Soul	
  
                                                      Make	
  Money	
  	
                                      Run	
  Faster	
  
                                                                                   Mate	
  
                           why?	
                           why?	
                   why?	
                       why?	
  


                      Spend	
  Time	
                                                                           Run	
  A	
  
                       w/	
  Family	
                 Buy	
  A	
  Home	
       Get	
  Married	
  
                                                                                                               Marathon	
  
                                           why?	
                 why?	
       why?	
               why?	
  



                                                         HAPPINESS	
  
Slide	
  55	
  	
  
A	
  FEW	
  DIFFERENT	
  FRAMEWORKS	
  ON	
  
                                      HAPPINESS	
  
                                   Perceived	
  Control	
  

                                  Perceived	
  Progress	
  
                                      Connectedness	
  

                                    Vision	
  /	
  Meaning	
  
                      (Being	
  part	
  of	
  something	
  bigger	
  than	
  yourself)	
  

Slide	
  57	
  	
  
Maslow’s	
  Hierarchy	
  




Slide	
  58	
  	
  
3	
  TYPES	
  OF	
  HAPPINESS	
  

                                       Rock	
  Star	
  
                                                                                 time
                         (Pleasure	
  –	
  chasing	
  the	
  next	
  high)	
  


                                             Flow	
  
                                                                                 time
                               (Engagement	
  –	
  Fme	
  flies)	
  


                      Meaning	
  /	
  Higher	
  Purpose	
  
                                                                                 time
      (Being	
  part	
  of	
  something	
  bigger	
  than	
  yourself)	
  


Slide	
  59	
  	
  
RECOMMENDED	
  BOOKS	
  


                                                PEAK	
  
                                               Chip	
  Conley	
  

                           TRIBAL	
  LEADERSHIP	
  
                       Dave	
  Logan,	
  John	
  King	
  &	
  Halee	
  Fischer-­‐Wright	
  


                      FOUR	
  HOUR	
  WORK	
  WEEK	
  
                                                Tim	
  Ferriss	
  


                      HAPPINESS	
  HYPOTHESIS	
  
                                             Jonathan	
  Haidt	
  



Slide	
  60	
  	
  
Contact	
  info	
  and	
  tours!	
  

                        Email	
  tony@deliveringhappinessbook.com	
  for:	
  

                             This	
  presentaFon	
  

                                 Free	
  culture	
  book	
  	
  
                              	
  (need	
  physical	
  mailing	
  address)	
  



                        Go	
  to	
  hHp://tours.zappos.com	
  for:	
  

                                 Tour	
  of	
  Zappos	
  offices	
  when	
  you’re	
  next	
  in	
  Las	
  Vegas	
  	
  
                              	
  (takes	
  about	
  an	
  hour)	
  




Slide	
  61	
  	
  
GREAT	
  	
  
                 BUSINESS	
  


                 Profits	
  


                 Passion	
  


                 Purpose	
  

Slide	
  62	
  	
  
GREAT	
  	
  
                 BUSINESS	
      HAPPINESS	
  

                 Profits	
        Pleasure	
      time




                 Passion	
       Passion	
  
                                                 time




                 Purpose	
       Purpose	
  
                                                 time



Slide	
  63	
  	
  
What	
  %	
  of	
  your	
  Sme	
  do	
  you	
  want	
  
                 to	
  spend	
  learning	
  about	
  the	
  
                SCIENCE	
  of	
  HAPPINESS?	
  
           How	
  can	
  the	
  SCIENCE	
  of	
  HAPPINESS	
  help	
  your	
  
                   business,	
  your	
  brand,	
  and	
  yourself?	
  


Slide	
  64	
  	
  
If	
  the	
  research	
  shows	
  that	
  	
  
                      vision	
  /	
  meaning	
  /	
  higher	
  purpose	
  
                                 leads	
  to	
  HAPPINESS…	
  

                What	
  is	
  your	
  company’s	
  higher	
  purpose?	
  
                         What	
  is	
  your	
  higher	
  purpose?	
  

Slide	
  65	
  	
  
Delivering	
  HAPPINESS	
  
Delivering	
  HAPPINESS	
  
    Learn	
  more	
  and	
  join	
  the	
  movement!            	
  
     www.deliveringhappinessbook.com                       	
  
      www.deliveringhappinessbus.com                  	
  
     facebook.com/deliveringhappiness                    	
  
              twifer.com/dhbook                  	
  
               twifer.com/dhbus             	
  
My	
  new	
  book	
  is	
  Stled	
  
                             “Delivering	
  Happiness”             	
  

                        Now	
  available	
  in	
  bookstores
                                                           	
  
                      www.deliveringhappinessbook.com	
  




Slide	
  68	
  	
  
Tony Hsieh Delivering Happiness @ Stanford GSB
Tony Hsieh Delivering Happiness @ Stanford GSB

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Tony Hsieh Delivering Happiness @ Stanford GSB

  • 1. DELIVERING  HAPPINESS   A  PATH  TO  PROFITS,  PASSION,  AND  PURPOSE   WWW.DELIVERINGHAPPINESSBOOK.COM   Tony  Hsieh   Stanford   October  11,  2010  
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  • 9. HAPPY  WRAP   hHp://www.youtube.com/watch?v=NSIXo9Id-­‐s   Slide  9    
  • 10.
  • 12. A  LiHle  About  Me  (Tony)   •  1994-­‐1995:  Pizza  business  in  college   Slide  12    
  • 13. A  LiHle  About  Me  (Tony)   •  1994-­‐1995:  Pizza  business  in  college   •  1996-­‐1998:  LinkExchange  (online  adverFsing)        Sold  to  MicrosoJ  for  $265  million   Slide  13    
  • 14. A  LiHle  About  Me  (Tony)   •  1994-­‐1995:  Pizza  business  in  college   •  1996-­‐1998:  LinkExchange  (online  adverFsing)        Sold  to  MicrosoJ  for  $265  million   •  1999:  Venture  Frogs  (investment  fund)  -­‐  Invested  in  Zappos.com,  Inc.   Slide  14    
  • 15. A  LiHle  About  Me  (Tony)   •  1994-­‐1995:  Pizza  business  in  college   •  1996-­‐1998:  LinkExchange  (online  adverFsing)        Sold  to  MicrosoJ  for  $265  million   •  1999:  Venture  Frogs  (investment  fund)  -­‐  Invested  in  Zappos.com,  Inc.   •  1999-­‐Today:  Zappos.com,  Inc.   Slide  15    
  • 16. A  LiHle  About  Me  (Tony)   •  1994-­‐1995:  Pizza  business  in  college   •  1996-­‐1998:  LinkExchange  (online  adverFsing)        Sold  to  MicrosoJ  for  $265  million   •  1999:  Venture  Frogs  (investment  fund)  -­‐  Invested  in  Zappos.com,  Inc.   •  1999-­‐Today:  Zappos.com,  Inc.   •  Nov  2009:   ,  shares  valued  at  $1.2  billion  at  closing   •  June  2010:  “ ”  book  published      www.deliveringhappinessbook.com   Slide  16    
  • 17. The  Power  of  WOW   $1,000 Gross Sales $MM 800 600 400 200 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08 Slide  17    
  • 18. Customer  Experience     What  do  customers  expect?     What  do  customers  actually  experience?     What  emoFons  do  customers  feel?     What  stories  do  they  tell  their  friends?     How  can  culture  create  more  stories  and  memories?   Slide  18    
  • 19. CULTURE   the  #1  priority   Hiring  for  culture   5  weeks  of  training   $2000  offer   Culture  book   TwiHer  helps  build  culture   Slide  19    
  • 20. Clothing,  Customer  Service,  Culture   Culture   Customer  Service   Clothing   Slide  20    
  • 24. Clothing,  Customer  Service,  Culture   Culture   Customer  Service   Clothing   Slide  24    
  • 25. 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  25    
  • 26. Building  Great   Slide  26    
  • 27. CULTURE   “CommiHable  Core  Values”   Don’t  make  your  core  values     just  a  meaningless  plaque  on  the  wall…   Slide  27    
  • 28. Example:  Core  Values   1.  Deliver  WOW  Through  Service   2.  Embrace  and  Drive  Change   3.  Create  Fun  and  a  Lifle  Weirdness   4.  Be  Adventurous,  CreaFve,  and  Open-­‐Minded   5.  Pursue  Growth  and  Learning   6.  Build  Open  and  Honest  RelaFonships  With  CommunicaFon   7.  Build  a  PosiFve  Team  and  Family  Spirit   8.  Do  More  with  Less   9.  Be  Passionate  and  Determined   10.  Be  Humble   Slide  28    
  • 29. 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   Slide  29    
  • 30. “That’s  great,   but  it  would     never  work  at  my   company…”   Slide  30    
  • 31. ALIGNMENT   It  doesn’t  maHer  what  your   core  values  are…   as  long  as  you     commit  to  them.   Slide  31    
  • 32. From  Mariana   Today  I  saw  your  workshop  in  Digital  Age  and  I  like  to  congratulate  you.  Definitely  was  the  best  workshop!   Totally  inspiring!  Something  about  what  you  said  today,  really  touched  me.  I  don’t  know  if  you’re  going  to  read   this  e-­‐mail,  it’s  a  lifle  silly,  but  I  was  very  anxious  to  tell  you  these.   I  had  my  own  theory  of  happiness.  I  call  it  “Yummy  lifle  thing”,  in  Portuguese  “Coisinha  Gostosa”.  In  my  theory   every  day  I  allow  myself  to  do  something  that’s  really  makes  me  happy.  For  example:  go  to  a  bar  with  friends,   read  a  page  off  a  book,  have  lunch  in  a  place  I  love,  buy  clothes,  play  with  my  nieces.  In  other  words,  I  have   listed  all  things  that  I  love  to  do,  and  every  day  I  do  something.  It  may  even  be  eaFng  a  candy!  Has  the  more   complex  items  to  the  simplest.   So,  I  really  idenFfied  with  your  personality,  spirit  and  concept  of  life.  Else,  I  pracFce  in  my  daily  this  “theory”   with  my  team.  I  coordinate  a  team  of  11  people.  I’m  responsible,  in  a  technology’s  company,  for  a  department   of  creaFon  and  communicaFon  (www.totvs.com).  My  principle  is  “we  have  to  be  happy  every  day.”  We  spent   80%  of  our  life  inside  the  company,  so  we  HAVE  to  be  happy  there!  I  give  priority  to  people  and  not  to  projects.   Very  polemic,  don’t  you  think?   You  know  why  I  am  see  as  a  competent  professional?  Because  all  my  projects  are  delivered  in  days,  with  quality.   You  know  why?  Because  when  I  can  do  it,  the  return  I  have  from  my  client,  makes  me  happy!  Simple  like  this!!   Well,  I  hope  you  had  understood  me.  And  I´m  very  happy  to  know  that  there  someone  else  in  the  world  who   thinks  like  me!  Good  luck  in  propagaFon  this  concept!   Slide  32    
  • 33. From  John  Korioth   My  name  is  John  Korioth.    I  also  go  by  the  nickname    “College.”    It’s  a  long  story  I  can  tell  you  later,  but  yes,  I  did   finish  college.   When  I  did  finish  college  in  1990,  the  economy  was  almost  as  bad  as  it  is  today,  and  it  was  tough  to  get  a  job.      A   friend  of  mine  was  opening  a  bar  and  asked  if  I  wanted  to  bartend  unFl  something  more  substanFal  came  long.     Nineteen  years  later,  and  I  am  sFll  in  the  business.   There  have  been  some  ins  and  outs  during  those  19  years,  but  today  I  co-­‐own  a  bar  (SIX)  in  AusFn,  Texas.    We   have  14  investors,  and  it  just  so  happens  that  one  of  the  more  famous  investors  is  Tour  de  France  Champion   Lance  Armstrong.   I  have  known  Lance  for  more  than  15  years,  and  he  is  one  of  my  best  friends.  When  he  was  diagnosed  with   tesFcular  cancer  in  1996,  I  leJ  the  bar  business  to  co-­‐found  the  Lance  Armstrong  FoundaFon  with  Lance.    AJer   three  years  of  being  the  execuFve  director,  I  leJ  and  went  back  into  the  bar  business.    I  sFll  help  out  at  the   FoundaFon  as  much  as  I  possibly  can  and  as  much  as  they  will  let  me.    It  is  something  that  will  always  be  close   to  my  heart.   We  opened  “SIX”  in  2005,  and  just  like  a  lot  of  new  bars,  things  seemed  to  be  great  at  first.    We  were  the  new   game  in  town,  and  things  were  rolling  our  way.    The  nice  thing  about  the  bar  business  is  when  you  first  open   and  you  do  it  right,  you  can  really  cash-­‐flow  fast.    Everyone  loves  you  when  you’re  new.  The  deciding  factor  in   the  bar  business  is,  how  do  they  love  you  aJer    two  years.    This  is  where  a  lot  of  bars  fail  and  have  to  shut  down   and    totally  reinvent  themselves.    Or  at  least  they  think  they  do.    We  started  to  go  through  this  same  cycle  unFl   I  ran  into  two  of  my  compeFtors.    They  were  absolutely  miserable;  both  wanted  to  sell  their  bars  or  just  shut   them  down.  They  hated  everything  about  the  business  and,  most  of  all,  they  disliked  their  employees.    I  am   Slide  33     sure  their  employees  didn’t  much  like  them.   prefy  
  • 34. From  John  Korioth   I  have  to  admit,  I  was  feeling  the  same  way;  and  then  I  thought  to    myself,  there  has  to  be  a  befer  way.    It  just   doesn¹t  have  to  be  this  way!    That¹s  when  I  saw  Jim  Collins,  author  or  ³Good  to  Great²,  speak  at  the  Livestrong   Summit.    I  loved  his  book  and  thought  it  was  the  best  business  book  ever  wrifen.    I  guess  I  didn¹t  read  it  very   well,    because  in  his  speech  he  reminded  me  that  “Life  is  about  ‘who’,  not  ‘what’”.   In  the  bar  business,  we  tend  to  think  it¹s  all  about  concept,  look,  locaFon,  music  systems,  et  cetera.    Well,  it¹s   not.    I  sat  down  with  my  business  partner  Chris  and  said,  we  have  to  change  or  I  am  out  of  the  business.    I  didn¹t   want  to  become  like  our  compeFtors.    Chris  agreed.    We  started  out  on  a  mission  to  change  our  staff  to  give  the   best  customer  service  that  the  bar  business  has  ever  seen.    We  started  taking  employees  to  lunch  every  day  for   2  weeks  and  asked  them  what  they  thought  great  customer  service  was  and  how  they  thought  we  ought    to  do   it.    They  thought  we  were  crazy  and  didn¹t  understand  what  we  were  trying  to  do.    This  became  very  frustraFng   for  us  and  our  employees:  we  were  thinking  about  giving  good  service,  and  they  were  thinking  we  already  did.     It  leJ  Chris  and  me  very  frustrated  and  searching  for  answers.   There  is  an  old  saying,  “When  the  student  is  ready,  the  teacher  will  appear.”  I  figure  this  is  where  Zappos  and   Tony  came  into  play.      I  was  having  lunch  with  Doug  Ulman,  the  current  CEO  of  the  Lance  Armstrong   FoundaFon.  I  told  him  what  we  were  trying  to  accomplish  at  SIX  and  how  frustrated  we  were.    He  told  me   about  Tony  and  Zappos.    So  I  went  to  look  at  Zappos’  website  and  ordered  some  shoes  to  see  what  would   happen.    It  amazed  me  how  fast  I  got  them,  and  the  shipping  was  free.   I  thought  to  myself,  well,  that¹s  just  promoFon  and  systems,    Not  being  so  impressed.  Chris  and  I  just  started   doing  all  the  research  on  Zappos  we  could.  We  came  across  many  arFcles  about  Zappos  and  the  culture  at  the   Zappos  Headquarters.    Chris    even  took  a  trip  out  to  Vegas  and  took    the  tour  of  the  Zappos  Headquarters.    He   came  back  with  many  great  stories  and,  also,  the  2008  Zappos  culture  book.    We  started  to  share  our  research   and  this  book  with  our  employees.   Slide  34    
  • 35. From  John  Korioth   We  really  knew  that  Zappos  and  Tony  were  starFng  to  have  an  effect    on  our  business  when  we  saw  him  speak   at  the  South  by  Southwest  Music  FesFval,  a  big  music  and  interacFve  fesFval  that  has  been  going  on  in  AusFn   for  over  25  years.    You  might  be  thinking  that  we  went  down  to  an  auditorium  and  watched  with  a  couple  of   thousand  other  people  -­‐  well,  we  didn¹t.    I  didn¹t  even  know  he  was  going  to  be  speaking.    It  was  one  of  our   cocktail  waitresses  (Julie)  who  understood  very  well  what  we  were  trying  to  accomplish,  and  she  found  it  online   and  shared  it  with  the  rest  of  the  staff.    When  she  did  that,  we  knew  we  had  changed  the  culture  of  SIX.  Of  all   the  bars  that  Chris,  myself  and  many  other  of  our  employees  had  worked  at,  we  had  never  seen  or  heard  of  the   staff  sharing  this  type  of  informaFon  with  one  another.   When  I  watched  Tony  speak,  the  one  thing  he  spoke  of  that  really  stuck  out  to  us  was  that  he  didn’t  want  to  be   the  same  run-­‐of-­‐the-­‐mill  internet  company.  He  wanted  to  be  part  of  something  different  and  befer.    Even   though  they  were  selling  shoes  like  a  bunch  of  other  companies,  they  wanted  something  befer,  something   more  rewarding,  a  company  that  was  going  to  set  them  apart  from  the  rest  and  make  himself  and  the  rest  of   the  employees  happy  to  come  to  work.  This  was  preaching  to  the  choir,  but  how?  During  Tony’s  speech   something  he  said  something  that  we  never  really  thought  about  and  it  was  that  you  may  think  that  Zappos   priority  was  “customer  service”.  Tony  explained  that  the  number  one  priority  at  Zappos  was  really  “company   culture”.  If  you  get  the  culture  right  the  rest  of  the  stuff  will  just  happen  naturally.   Over  the  course  of  the  next  six  months,  which  was  eight  months  aJer  our  iniFal  thought  to  change,  we  learned   what  Zappos  had  figured  out:    It’s  about  the  culture  of  your  business  that  derives  everything  good  and  bad.  You   want  to  have  great  customer  service?  You  befer  have  a  great  culture.  You  want  employee  retenFon?  You  befer   have  a  great  culture.   Slide  35    
  • 36. From  John  Korioth   How  did  we  do  this?  We  started  to  pay  more  afenFon  to  our  employees  and  what  they  were  telling  us,  We  got   them  more  involved  in  the  process  of  decisions.  We  started  to  give  them  befer  customer  service.  For  example:   At  the  end  of  every  night  a  simple  manager  log  is  created  and  emailed  to  all  the  managers  and  owners.  It  has   the  sales  numbers  and  general  thoughts  of  how  the  night  went.  It  also  has  maintenance  items  that  the   employees  may  have  noFced  or  just  thoughts  on  how  they  think  the  night  could  have  gone  befer.  If  they  list  a   maintenance  item  we  do  everything  we  possibly  can  do  to  have  that  item  fixed  by  the  Fme  they  walk  in  the   next  day  for  work.  We  also  call,  email  or  text  them  and  tell  them  we  fixed  the  problem  or  that  we  are  working   on  it.  This  tells  them  that  we  listen  to  them  and  we  take  it  seriously.  If  it  is  an  idea  that  they  might  have  to   improve  the  customer  experience  or  work  environment,  Chris  or  myself  will  follow  up  with  them  in  person  to   discuss  it.   Another  example  is  most  employees  in  the  service  industry  hate  employee  meeFngs.  They  are  usually  on  their   day  off  and  are  full  of  informaFon  they  already  know.  We  took  a  hard  look  at  how  to  make  these  more   enjoyable,  interacFve  and  more  rewarding.  We  now  usually  take  them  to  dinner  instead  of  hosFng  the  meeFng   at  our  locaFon.  This  puts  them  in  a  different  mindset  of  something  new  and  interesFng.  We  may  also  require   them  to  be  prepared  to  tell  a  story  of  some  good  or  bad  customer  service  experience  they  encountered  at   another  business.  This  usually  results  in  some  good  laughs  and  some  good  moments  of  perspecFve  of  how  they   should  treat  our  customers.  I  use  to  spend  20  minutes  preparing  for  these  meeFngs  now  I  take  4  hours,  it   makes  all  the  difference  in  the  world.   Slide  36    
  • 37. From  John  Korioth   What  does  this  do  for  us?  Everything!  Employee  retenFon  is  way  befer  than  any  other  place  I  have  ever   worked  or  owned.  All  of  our  cocktail  waitresses  are  part  Fme  due  to  the  nature  of  our  business.  Most  of  them   have  other  part  Fme  jobs  or  are  in  school.  Just  the  other  day  I  was  talking  to  one  of  them  (Kathleen)  and  she   told  me  that  she  had  7  other  jobs  in  the  past  year  and  she  quit  all  of  them  because  the  work  environment  was   so  bad  and  nothing  compared  to  SIX.  The  last  meeFng  employee  meeFng  we  had  one  of  our  oldest  employees   (Rod)  stood  up  out  of  the  blue  and  said  he  had  worked  at  10  other  bars  and  restaurants  and  they  never   discussed  the  things  we  do  and  it  has  totally  changed  the  way  he  looks  at  coming  to  work.  When  a  customer   walks  into  a  our  place  and  sees  the  same  people  working  it  makes  them  feel  at  home.  It  may  sound  cheesy  from   the  TV  show  Cheers  but  “you  want  to  go  to  a  place  where  everyone  knows  your  name”.   We  are  going  into  our  5th  year  of  business,  and  we  have  matched  the  previous  year¹s  sales  each  year.    You   might  be  thinking  that  we  should  have  experienced  growth.    This  economy,  and  other  circumstances,  have  hit   other  bars  and  restaurants  in  our  area  very  hard.  Some  good  establishments  are  down  30  -­‐  40%.  Every  bar  is   probably  down  except  us.    We  tend  to  think  we  are  up  30%  even  though  we  just  matched  last  year¹s  sales.    We   know  one  reason  for  that  is  our  culture  and  Zappos.   The  most  rewarding  thing  to  us  is,  when  we  are  walking  around  in  AusFn  and  we  see  some  of  our  friends,  the   first  thing  they  say  to  us  is  that  they  were  in  SIX  and  our  employees  were  just  so  nice.    They  ask  me  how  I  get   them  to  act  like  that  when  other  bars  are  not  that  way.    I  just  smile  and  say,  “Zappos,  Baby.”    I  don’t  tell  them   the  whole  story;    I  let  them  try  and  figure  it  out  for  themselves  like  we  did.    As  I  said  earlier,  “when  the  student   is  ready,  the  teacher  will  appear.”    Thanks,  Tony!   Slide  37    
  • 38. From  Dave  BrauSgan     A  few  thoughts  on  how  you  guys  "infected"  me!   I  use  infected,  as  I  think  that  for  me,  going  to  Zappos  is  like  a  spa  for  business  owners.    I  leave  charged  back  up   and  ready  to  take  on  the  world.    I  also  leave  ready  to  spread  the  happiness.    So  they  are  infecFng  me  somehow.     Its  either  in  the  air  or  the  mixed  nut  machines  all  around  the  office!   With  Atlanta  RefrigeraFon,  I  loved  work  prior  to  going  to  Zappos.    I  got  up  every  day  ready  to  knock  the  day  out.     I  thought  I  had  a  great  company  and  did  not  know  any  befer.    The  way  my  dad  ran  it  was  the  way  I  ran  it.    I  took   the  other  jobs  I  had  in  life  and  used  that,  all  the  same  type  of  cultures.    Something  though  started  to  sit  a  lifle   weird  (maybe  I  saw  an  arFcle,  read  a  blog)  not  really  sure  how  that  feeling  started,  but  it  did.    I  found  out  about   Zappos  and  I  was  interested,  but  very  skepFcal.         AJer  Zappos  Insights  I  was  amazed  and  seeing  it  made  me  realize  that  you  could  operate  a  business  in  a  fun,   happy  atmosphere  and  have  a  reason  to  work  more  than  just  the  profit.    You  could  empower,  trust,  and  really   make  work  a  special  place.    Since  my  return  from  Zappos,  we  have  made  great  strides  in  building  up  our   culture,  something  we  had  all  along,  but  did  not  know  what  it  was,  how  to  build  it,  or  how  important  it  was  in   making  decisions!    The  foundaFon,  core  values,  was  something  that  we  have  to  give  100  percent  thanks  to   Zappos  for,  as  I  would  have  never  done  it,  but  listening  to  Tony  talk  about  them,  I  knew  it  was  what  needed  to   be  done.         On  a  personal  level,  Tony's  happiness  research  really  hit  home  with  me.    He  inspired  me  to  really  step  back  and   look  at  my  life  and  see  what  made  me  happy  for  the  long  term,  not  just  short  term  happiness.      With  work   taking  priority  of  my  life  since  I  was  lifle  watching  my  dad  run  the  company,  I  found  that  I  did  not  want  that   same  thing  with  me  and  my  sons  (2  and  6).       Slide  38    
  • 39. From  Dave  BrauSgan     Since  Zappos,  I  am  happier  now  than  I  can  ever  remember  in  the  past.    I  ditched  stressful  lunch  meeFng  and   took  up  exercise.    It  led  to  me  to  dropping  20lbs  and  starFng  triathlons  and  coaching.    I  am  doing  an  Iron  man  in   May  and  have  a  side  job  as  The  North  Face  store  weekly  run  leader!    I  am  happy  when  I  am  out  on  the  road,  the   bike,  or  the  pool.    I  also  use  it  to  reduce  my  stress  at  work  allowing  me  not  to  take  it  home  to  my  family.   I  am  at  a  new  level  of  happiness.  My  life  is  simpler  now.    I  have  started  a  passion  project,  helping  employees   reach  their  dreams.    I  ask  them  for  101  and  we  are  knocking  them  out!    I  am  currently  working  on  two  that  are   really  unique.    One  of  my  customer  service  ladies  wants  to  go  to  the  Oprah  show  and  another  lady  wants  to   meet  the  Gosslin  kids  (from  John  and  Kate  plus  8).    Not  sure  how  I  am  going  to  pull  those  off,  but  I  know  it  can   be  done!!   It’s  funny,  the  one  thing  that  sFcks  in  my  mind  on  every  visit  (I  have  done  a  few  now)  to  Zappos  is  how  freaky   the  door  opening  is.    People  go  out  of  their  way  to  hold  a  door  open  in  that  place.    That  small  gesture  is  edge  of   the  culture  waterfall  you  go  over  when  you  walk  in.      I  tell  myself  now  when  I  am  having  a  bad  day  or  not  living   my  personal  values  to  stop,  smile,  and  go  open  a  door  for  someone.  Its  amazing  how  something  small  can  bring   back  a  rush  of  emoFons  and  thoughts  of  such  a  happy  place  out  there  at  Zappos.   I  am  excited,  as  I  wonder  what  is  next!    Tony  and  Zappos  has  made  realize  there  is  no  end  to  how  much  you  can   increase  your  happiness.  You  just  have  to  take  it  step  by  step,  and  when  in  doubt,  hop  a  plane  and  go  to  one  of   the  best  places  on  earth!  It’s  worth  every  cent  for  the  flight!   Slide  39    
  • 40. Building  Great   Slide  40    
  • 41. VISION   “Whatever  you’re  thinking,  think   bigger .”   Does  the  vision  have  meaning?   Chase  the  vision,  not  the  money…   Slide  41    
  • 42. VISION   “Don’t  chase  the  paper,  chase  the  dream.”   Sean  Combs  aka  “Puff  Daddy”  to  rapper   Biggie  Smalls  aka  “Notorious  B.I.G.”   in  Notorious   Slide  42    
  • 43. ENTREPRENEURS:   “What  would  you  be   passionate  about  doing   for  10  years  even  if  you   never  made  a  dime?”   Slide  43    
  • 44. EMPLOYEES:   What’s  the  larger  vision   and  greater  purpose  in   their  work  beyond   money  or  profits?   Slide  44    
  • 45. VISION   MOTIVATION   vs.   INSPIRATION   Slide  45    
  • 46. Vision  &  Culture   inspire   Passion  &  Purpose   Slide  46    
  • 47. Example  of  evolving  vision  and  brand     1999  SelecFon     2003  Customer  Service     2005  Culture  and  core  values  as  our  pla|orm     2007  Personal  EmoFonal  ConnecFon     2009  Delivering  Happiness   Slide  47    
  • 49. QuesSons     Where  does  the  story  begin?     Where  does  the  story  end?     How  do  you  reinforce  the  good  memories?     What  were  the  emoFons,  posiFve  and  negaFve?     How  can  you  create  more  stories  and  memories?   Slide  49    
  • 50. What’s  your  business?     You’re  not  in  the  _______  business.     Cirque  du  Soleil  is  not  in  the  circus  business.     You’re  in  the  experience  and  emoFons  business.     You’re  in  the  stories  and  memories  business.     Think  bigger.   Slide  50    
  • 51.
  • 52. WHAT  IS  YOUR  GOAL  IN  LIFE?   Grow   Get  a  Great   Boyfriend  /   Company   Be  Healthy   Job   Girlfriend   why?   why?   why?   why?   ReSre  Early   Find  Soul   Make  Money     Run  Faster   Mate   why?   why?   why?   why?   Spend  Time   Run  A   w/  Family   Buy  A  Home   Get  Married   Marathon   why?   why?   why?   why?   HAPPINESS   Slide  52    
  • 53. RESEARCH  HAS  SHOWN     HAPPINESS   People  are  very  bad  at  predicSng  what   will  bring  them  sustained  happiness.   “When  I  get  ___,  I  will  be  happy.”   “When  I  achieve  ___,  I  will  be  happy.”   Slide  53    
  • 54. HAPPINESS     There  is  a  SCIENCE  behind  many  aspects  of  business  including:     conversion     psychology  of  buying     direct  markeFng     customer  acquisiFon  metrics     repeat  customer  behavior,  etc.     What  if  you  spent  just  a  lifle  bit  of  your  Fme  studying  and  learning   the  SCIENCE  of  HAPPINESS?     How  much  HAPPIER  could  you  be?   Slide  54    
  • 55. WHAT  IS  YOUR  GOAL  IN  LIFE?   Grow   Get  a  Great   Boyfriend  /   Company   Be  Healthy   Job   Girlfriend   why?   why?   why?   why?   ReSre  Early   Find  Soul   Make  Money     Run  Faster   Mate   why?   why?   why?   why?   Spend  Time   Run  A   w/  Family   Buy  A  Home   Get  Married   Marathon   why?   why?   why?   why?   HAPPINESS   Slide  55    
  • 56.
  • 57. A  FEW  DIFFERENT  FRAMEWORKS  ON   HAPPINESS   Perceived  Control   Perceived  Progress   Connectedness   Vision  /  Meaning   (Being  part  of  something  bigger  than  yourself)   Slide  57    
  • 59. 3  TYPES  OF  HAPPINESS   Rock  Star   time (Pleasure  –  chasing  the  next  high)   Flow   time (Engagement  –  Fme  flies)   Meaning  /  Higher  Purpose   time (Being  part  of  something  bigger  than  yourself)   Slide  59    
  • 60. RECOMMENDED  BOOKS   PEAK   Chip  Conley   TRIBAL  LEADERSHIP   Dave  Logan,  John  King  &  Halee  Fischer-­‐Wright   FOUR  HOUR  WORK  WEEK   Tim  Ferriss   HAPPINESS  HYPOTHESIS   Jonathan  Haidt   Slide  60    
  • 61. Contact  info  and  tours!     Email  tony@deliveringhappinessbook.com  for:     This  presentaFon     Free  culture  book      (need  physical  mailing  address)     Go  to  hHp://tours.zappos.com  for:     Tour  of  Zappos  offices  when  you’re  next  in  Las  Vegas      (takes  about  an  hour)   Slide  61    
  • 62. GREAT     BUSINESS   Profits   Passion   Purpose   Slide  62    
  • 63. GREAT     BUSINESS   HAPPINESS   Profits   Pleasure   time Passion   Passion   time Purpose   Purpose   time Slide  63    
  • 64. What  %  of  your  Sme  do  you  want   to  spend  learning  about  the   SCIENCE  of  HAPPINESS?   How  can  the  SCIENCE  of  HAPPINESS  help  your   business,  your  brand,  and  yourself?   Slide  64    
  • 65. If  the  research  shows  that     vision  /  meaning  /  higher  purpose   leads  to  HAPPINESS…   What  is  your  company’s  higher  purpose?   What  is  your  higher  purpose?   Slide  65    
  • 67. Delivering  HAPPINESS   Learn  more  and  join  the  movement!   www.deliveringhappinessbook.com   www.deliveringhappinessbus.com   facebook.com/deliveringhappiness   twifer.com/dhbook   twifer.com/dhbus  
  • 68. My  new  book  is  Stled   “Delivering  Happiness”   Now  available  in  bookstores   www.deliveringhappinessbook.com   Slide  68