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Beyond ROI: Tracking Return on Community & Wellness
Maggie HsuCornell Hospitality Health & Design SymposiumOctober 10, 2016
Acquired by Amazon in 2009 for $1.2BN
Online shoe & clothing retailer founded in 1999
HQ in Las Vegas; 1,500 employees
CEO Tony Hsieh
Culture & 10 core values
ZAPPOS.COM
Self-managed organization (Holacracy)
CUSTOMER SERVICE STORIES
SIMPLE METRICS
1. Time to answer2. Was the customer
“Wow”ed?
1. Length of call2. After call work time3. First call resolution4. Schedule adherence5. Abandonment rate
.
.
.
Longest recorded call is over 11 hours!
RESULTS
• Greater customer loyalty over time• Greater share of wallet
• Lower employee turnover• Higher employee happiness and engagement
DESIGN FOR… HEALTH
CONNECTION
INNOVATION
DESIGN FOR… HEALTH
CONNECTION
INNOVATION
Zappos prioritizes employee health (mental and physical) OVER bottom-line cost
Wellness Director
Life Coaches
Charity/CSR Director
Sustainability Director
HEALTH
• On-site gym• On-site fitness and health classes• Financial literacy classes• Pay for employees to enter races• Pay for on-site Weight Watchers• On-site dental cleanings• Free smoking cessation classes• Nap rooms• Exercise/activity rewards• Desk treadmills• On-site massages
9
WELLNESS
DESIGN FOR… HEALTH
CONNECTION
INNOVATION
LAS VEGAS CITY HALL
DESIGN FOR “COLLISIONS”
• Replicate water cooler or smoking moments
• Increase camaraderie and trust
ELEVATOR GAMES
Unfortunately, I don’t recognize this Zapponian
I recognize them but don’t know anything about them
I recognize them but only know their name or department
I kind of know them
I know them pretty well
I know them inside and out!
How well do you know…Tony Hsieh?
MEASURING TRUST
DESIGN FOR… HEALTH
CONNECTION
INNOVATION
For every 100 feet of "zonal overlap," collaborations increased by up to 20%
OFFICE LAYOUT
Sitting twice as far = seeing half as often, squared
• 100 sq ft per person
• Allow for “collisions”
OFFICE LAYOUT
“BETA TEST” PHYSICAL SPACE
ROI vs. ROC & ROL
Instead of maximizing short-term ROI (Return On Investment)...
We focus on maximizing long-term ROC (Return on Collisions)
and institutionalizing ROL (Return On Luck) – Accelerating Serendipity
ENGINEERING SERENDIPITY
Greg Lindsay
Steven Johnson
Biology Matchmaking Hospitality
Design the right conditions, not the
right output
• At Buurtzorg in the Netherlands, nurses are self-managed in small teams – no bureaucracy
• Results:
• Faster healing
• Half the amount of care
• One-third fewer ER visits
• Shorter average stays
SELF-ORGANIZATION
Culture + Self-organization + Collisions
Leads to…
Increased organizational innovation and resilience
NEW BUSINESS LINES
The Zappos corporate strategy team is looking to identify areas where its focus on a great customer experience could help Zappos disrupt and dominate a new market.
The team has brainstormed entering classic service industries, with something like a Zappos hotel or airline. And it has explored, seemingly in some depth, “even crazy stuff, like porta-potties,” Hsieh said.
Tony HsiehWashington Post InterviewDecember 2015
ZAPPOS PORTA-“PARTY” (VIDEO)
ZAPPOS WELLNESS HOTEL