3Zappos at a Glance – Provider of Choice What is a Zappos anyway?Found in 1999A variation of the Spanish word Zapotas which means “shoes.”Zappos is a service company that happens to sell shoes, clothing, handbags, eyewear, watches and a bunch of other stuff.Zappos is powered by serviceProvide the best service and online shopping experience possible.Free shipping and return policy.365-day return policy.Fast fulfillment .Expedited delivery.Free referral service to competitor sites.Best selectionOver 1200 brands.Over 160,000 styles.Over 850,000 unique UPCs.Over 3 million pairs of shoes.Products are photographed in multiple angles.All products inventoried.
4Zappos – Employer of Choice If you treat your employees well they treat your customers well….Fun, happy atmosphere.Life coach.Free vending machine and dining facility.Attract and retain top employees.Ranked No. 6 CNN Money places to work.
5Zappos – Investment of Choice Believe in me and my business model.1999.Founder Nick Swinmum raised $150,000 for start up.CEO Tony Hsieh invested $500,000.Sequoia capital $48Mil.100mil line of credit.2009.Sold to Amazon.com for $1.2Bil
6Power of a Vision Zappos Vision Three Part Vision To be the company that provides the absolute best service online.Three Part VisionOne day, 30% of all retail transactions in the US will be online.People will buy from the company with the best service and the best selection.Zappos.com will be that online store.A Shared Vision Equals PowerThe vision must be incorporated into every aspect of the organization.The Zappos vision is adhered to at all levels.Guaranteed 100% customer satisfaction with every purchase.Core concept is Legendary Service.
7Importance of a Vision Shared Vision is Key Centers on collective direction.Accomplished through empowerment, motivation and accountability.Maintain a proactive stance and adapt to changing situations.Fundamentals of Zappos Shared VisionMutual respect and admiration .Employees are an integral part of the corporate culture.Commitment to legendary service.Remaining customer driven.
8Zappos Core Values Deliver WOW Through Service Embrace and Drive ChangeCreate Fun and A Little WeirdnessBe Adventurous, Creative, and Open-MindedPursue Growth and LearningBuild Open and Honest Relationships With CommunicationBuild a Positive Team and Family SpiritDo More With LessBe Passionate and DeterminedBe Humble
9Vision and Leadership Tony Hsieh: The Visionary Leader Build a brand focused on customer service.Created a higher purpose for employees.Encouraged employees to become more engaged.Enhanced customer service and satisfaction with happy people.Company culture is priority #1.Customer service High-Touch approach.Zappos is delivering happiness.
10Zappos Legendary Service Customer ServiceZappos Legendary Service1-800 number on every Web page24/7 life customer service representativeFree shipping both ways365 day return policy
11Relentless Focus on Customer Results BlanchardIdeal ServiceCulture of ServiceAttentivenessResponsivenessEmpowermentZapposHandwritten “Thank you” cardsCustomer Loyalty Training24/7 Customer Service – Blogs, Facebook, Twitter“We serve therefore we are.” Christina C.$2000 Customer Rep allowanceI C A R E
12Serving Customers at a higher Level Potential CustomersInternalExternalVendorsInvestorsCustomer ExperienceFast, Accurate FulfillmentFriendly, helpful “above and beyond” customer serviceRefer customers to competitors’ web sitesCustomer ReactionNew Customers through word of mouthCustomers come backRepeating Customers order more
13Serving Customers: Empower People Zappos approaches to empower their EmployeesNo call time limitsNo sales-based performance goals for reps5 weeks of culture, core values, customer service, and warehouse training for everyone in Las VegasZappos Culture bookInterviews and performance reviews are 50% based on core values and culture fit
14Self Leadership“ If we get the culture right . Then everything else falls into place” Tony HsiehBlanchardZAPPOS Focus on the value & identity of individual employee Self-awareness and Innovation Enhance scope of creativity without reserve Cohesive work-groupsIncrease Individual Self- Awareness Improve Behavioral Management & Cues Self - Goal Setting: Personal Values & Priorities Self Reward & Self – Discipline
16Self Leadership at Zappos Sustaining the Self-leadership Culture at ZapposChallenge Assumed ConstraintsFocus leadership training systems towards a deeper awareness of individual personal constraintsCelebrate Your Power PointsA deeper understanding of power provides breadth to expand its valueCollaborate for SuccessEngage in Supportive Leadership Training whichconcentrates on emotional & behavioral elements self-leadership
17Coaching: Pursue Growth & Learning Hires the right peopleEntry level with mindset of training to eventually take on leadership position“On a scale of 1-10, how lucky are you?”$4000 offer to leave after training if fit is not rightPipeline & Culture4 week new hire trainingAnswering phonesZappos HistoryZappos CultureScience of Happiness 101Tribal LeadershipPublic SpeakingDelivering HappinessIntermediate Microsoft Office
18Coaching Continued Zappos Insight Team Designed to bring out best in employees and businessMage of MayhemGoals CoachCulture EvangelistTop 3 Goals by Zappos Employees:Career DevelopmentWeight LossPersonal Finance/ BudgetingThe only way to get a raise at Zappos is to engage in continuous learning and gain new skill sets.
19Coaching: Outside Current Employee Base Training for college students beginning freshman year, through internships and special workshops, so that they are ready for Zappos when they graduate.Zappos Insights consulting to other businesses, including:2 day quarterly boot camp, including:Developing Core ValuesHiring and FiringTraining for Leaders and LongevityCustomer ServiceEmpowerment and Engagement/Inspiring PurposeLeadershipMeetings with Zappos Top ManagementUse of templatesOnline subscription to Insights Core Curriculum and blog
20Zappos Compared to 5 Applications of Coaching Blanchard:Zappos:Performance CoachingDevelopment CoachingCareer CoachingCoaching to Support LearningCreating an Internal Coaching CultureUnknownGoals CoachGoals Coach; Philosophy of entry level to senior leadershipRaises tied to mastering new skill setsInsight Team
21Zappos Leadership: Developing a Point of View Main ElementsThink About your life’s purpose, why are you here, what do you wish to accomplish?What are your core values that will guide your behavior as you attempt to live life “on purpose”?What can people expect from you?What do you expect from your people?
22Zappos Leadership: Developing a Point of View Suggestions:Provide everyone with a copy of your mission, vision and values. Adopt the mindset that these guidelines are as important as your work values – and treat them accordingly.Adopt the mindset that your employees don’t work for you – you work for them. Refer to your team members as: the people I work for.
23Zappos Leadership: Point of View Tony Hsieh describes his purpose as “ Generally, I associate drama with negative emotions, and I want to experience positive emotions.” His purpose is to deliver positive emotions to others.Hsieh has outlined his values in the 10 Core Values for Zappos.Those who work for Zappos can expect from the company “ an environment of fun, creativity, and the ability to be a little “weird”.Hsieh expects from his employees continuous efforts to learn and improve their performance, especially under less than ideal situations, to “do more with less”, and importantly, humility towards customers.
24“Your culture is your brand!” Zappos’ CultureZappos’ culture is centered on its ten core valuesAll core values are measured against the CRUD test:CredibleRelevantUniqueDurableValues are both explicitly stated and implicitly present in actionCulture happens by default or by design. Great leaders design their culture, set values in motion, and stir up the culture regularly.“Your culture is your brand!”
25Zappos’ CultureZappos relocated to Las Vegas in order to obtain a workforce that was accustomed to working 24 hours per day to deliver the standards it held itself to.Zappos seeks culture fit before skills fit when hiring new employeesZappos uses interview questions that get at the applicant’s own core valuesApplicants are evaluated in formal and casual settings such as happy hour with the prospective team
26Zappos’ CultureZappos leaders asked these four questions in order to stay on track to culture identification:Do you have explicit corporate values? If so, do those values reflect a blend of your founding principles and the evolving demands of the marketplace? Or are they static and immutable?What do your customers value? How do your corporate values match up with the wants, needs, and desires of your customers?Since values can be both explicit (stated) and implicit (unstated), do your corporate actions align with your stated values? If not, what do the major decisions of your business suggest about your company's real values?How willing are you to consider revising your stated values to match your demonstrated actions or revising your actions to match your stated values? What might those revisions look like?
27Zappos’ CultureThe following is a Tweet on Twitter from CEO Tony Hsieh regarding culture:“Breathtaking video of birds flocking - (same principle can be used to scale culture)”The flocking birds are truly representative of the Zappos culture…organized chaos creating patterns of smooth flowing processes!
28Conclusion – Is Zappos a High Performance Organization? Zappos is a company like no other. Having explored their corporate structure, values, leadership attributes, and pipeline strategy, it is clear their unique corporate culture is what drives their success.With low turnover and a stringent hiring policy, they create loyalty among their employees through rigorous training.With a firm commitment to their team, Zappos has consistently hit their goals and lives their ten core values with fervor and passion.
29Never stop improving customer service Could it be done better?Our Suggestions:Never stop improving customer serviceManagers identify gaps and help employees improveCreate “Supportive Leadership” programDon’t get spread too thin so that customers don’t recognize the core business
30Or do you still have questions? Did we convince you?Or do you still have questions?