Delivering Happiness - Tiger Global Management_10.3.11 TJ

8/4/2019 Delivering Happiness - Tiger Global Management_10.3.11 TJ

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A PATH TO PROFITS, PASSION, ANPURPOSEWWW.DELIVERINGHAPPINESS.COM

Tony HsiehJenn Lim

Blizzard EntertainmentApril 1, 2011

Tiger Global Management2011 Internet Conference

October 3, 2011TONY HSIEH

JENN LIM

WWW.DELIVERINGHAPPINESS.COM


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FIRST

THERE WAS A BOOK


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LABORDAY 2009

(LENTICULAR)


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SXSW2010


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+275,000 COPIES S17+ LANGUAGES/C

2010 BEST OF LISTAMAZON CUSTNPR MARKETPLINC. MAGAZINENEW YORK POSREADWRITEWE

#1 BESTSELLER LISNYTIMESWSJAMAZONBARNES & NOB

BORDERS

WHOA.


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THEN, THE

BUS TOUR


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BEFORE AFTER


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Slide 12

WE HEARD AROUN

Wno matter

BACKG

C

U

BY TH
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charity: water
http://www.youtube.com/watch?v=NtiIXo9Id-s


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Slide 26

THEN THERE WAS A

BUS TOUR

FIRSTTHERE WAS ABOOK

THERE WAS THIS GREAT PASSION ABOUT GETTING OTHOSE MOMENTS WHERE YOU DECIDE YOURE E
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SXSW

THOSE MOMENTS WHERE YOU DECIDE YOURE ESOMETHING YOU HAVE NO UNDERSTANDING OF, OR WH

TO STAY IN YOUR BOX AND WHAT YOURE C

I FEL
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Slide 28

ICEE
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Slide 29

ICEE

INSPIRECONNECEDUCAT

EXPERI

GLOBAL MOV
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Slide 30

GLOBAL MOVTO SPREA

INSPIRE HAPP

IN THE W

SUST

S

C
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JOIN THE


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Slide 32


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Slide 33

A Little About Me (Tony
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Slide 34

A Little About Me (Tony 1994-1995: Pizza business in college

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Slide 35


1996-1998: LinkExchange (online advertising)

Sold to Microsoft for $265 million

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Slide 36




1999: Venture Frogs (investment fund) - InvestedZappos.com, Inc.



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Slide 37




1999: Venture Frogs (investment fund) - InvestedZappos.com, Inc.

1999-Today: Zappos.com, Inc.



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Slide 38

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Slide 39

The Power ofWOW

01 02 0603 04 05 000

GrossSales

$M

M

$1,000

800

600

400

200

Customer Experience
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Slide 40

Customer ExperienceWhat 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?
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Slide 41

the #1 priorityCULTURE

5 weeks of tr

Culturebook

$2000 offer

Hiring for cu

Twitter helpsculture

Clothing, Customer Serv
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Slide 42

Clothing, Customer ServCulture

Customer ServiceClothing

Culture

Clothing
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Slide 43

Clothing

Customer Service


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Slide 44

Customer Service

Culture


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Slide 45

Culture

Clothing, Customer Serv
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Slide 46

Clothing, Customer ServCulture

Customer ServiceClothing

Culture
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Slide 47

Delivering Happiness(customers and employees)

People will forget what you said, pwill forget what you did, but peop

never forget how you made them f-Maya Angelou

B ildi G
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Slide 48

Building Grea
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Slide 49

CULTURECommittable Core Val

Dont make your core values

just a meaningless plaque on the wal

Example: Core Values
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Slide 50

Example:Core Values

1. Deliver WOW Through Service

2. Embrace and Drive Change3. Create Fun and a Little Weirdness

4. Be Adventurous, Creative, and Open-Minded

5. Pursue Growth and Learning

6. Build Open and Honest Relationships With

Communication

7. Build a Positive Team and Family Spirit

8. Do More with Less

9. Be Passionate and Determined

10. Be Humble
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Slide 51

COMMIT TOTRANSPARE

CYBe real and you have nothing to fear
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Slide 52

Thats great,but it would

neverwork at mcompany


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Slide 53

ALIGNMENIt doesnt mattewhat your corevalues areas long as you

From Mariana
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Slide 54

Today I saw your workshop in Digital Age and I like to congratulate you. Definitely wworkshop! Totally inspiring! Something about what you said today, really touched mknow if youre going to read this e-mail, its a little silly, but I was very anxious to te

I had my own theory of happiness. I call it Yummy little thing, in Portuguese CoisIn my theory every day I allow myself to do something thats really makes me happexample: go to a bar with friends, read a page off a book, have lunch in a place I loclothes, play with my nieces. In other words, I have listed all things that I love to doday I do something. It may even be eating a candy! Has the more complex items to

So, I really identified with your personality, spirit and concept of life. Else, I practicethis theory with my team. I coordinate a team of 11 people. Im responsible, in a

company, for a department of creation and communication (www.totvs.com). My phave to be happy every day. We spent 80% of our life inside the company, so we Hhappy there! I give priority to people and not to projects. Very polemic, dont you t

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

From John Korioth
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Slide 55

My name is John Korioth. I also go by the nickname College. Its a long story I can teyes, I did finish college.

When I did finish college in 1990, the economy was almost as bad as it is today, and it wa job. A friend of mine was opening a bar and asked if I wanted to bartend until someth

substantial came long. Nineteen years later, and I am still in the business.

There have been some ins and outs during those 19 years, but today I co-own a bar (SIXTexas. We have 14 investors, and it just so happens that one of the more famous invest

France Champion Lance Armstrong.

I have known Lance for more than 15 years, and he is one of my best friends. When he wwith testicular cancer in 1996, I left the bar business to co-found the Lance Armstrong F

Lance. After three years of being the executive director, I left and went back into the bastill help out at the Foundation as much as I possibly can and as much as they will let msomething 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 fithe new game in town, and things were rolling our way. The nice thing about the bar buyou first open and you do it right, you can really cash-flow fast. Everyone loves you whe

The deciding factor in the bar business is, how do they love you after two years. This is

bars fail and have to shut down and totally reinvent themselves. Or at least they think

From John Korioth


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I have to admit, I was feeling the same way; and then I thought to myself, there has to It just doesnt have to be this way! Thats when I saw Jim Collins, author or Good to Grthe Livestrong Summit. I loved his book and thought it was the best business book everI didnt read it very well, because in his speech he reminded me that Life is about who

In the bar business, we tend to think its all about concept, look, location, music systemsWell, its not. I sat down with my business partner Chris and said, we have to change orbusiness. I didnt want to become like our competitors. Chris agreed. We started out ochange our staff to give the best customer service that the bar business has ever seen. taking employees to lunch every day for 2 weeks and asked them what they thought greservice was and how they thought we ought to do it. They thought we were crazy and understand what we were trying to do. This became very frustrating for us and our empthinking about giving good service, and they were thinking we already did. It left Chris frustrated and searching for answers.

There is an old saying, When the student is ready, the teacher will appear. I figure thisZappos and Tony came into play. I was having lunch with Doug Ulman, the current CEOArmstrong Foundation. I told him what we were trying to accomplish at SIX and how frusHe told me about Tony and Zappos. So I went to look at Zappos website and ordered sosee what would happen. It amazed me how fast I got them, and the shipping was free.

I thought to myself, well, thats just promotion and systems, Not being so impressed. C

From John Korioth
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We really knew that Zappos and Tony were starting to have an effect on our business wspeak at the South by Southwest Music Festival, a big music and interactive festival thaton in Austin for over 25 years. You might be thinking that we went down to an auditoriuwith a couple of thousand other people well, we didnt. I didnt even know he was goinspeaking. It was one of our cocktail waitresses (Julie) who understood very well what we

accomplish, and she found it online and shared it with the rest of the staff. When she diwe had changed the culture of SIX. Of all the bars that Chris, myself and many other of had worked at, we had never seen or heard of the staff sharing this type of information another.

When I watched Tony speak, the one thing he spoke of that really stuck out to us was thto be the same run-of-the-mill internet company. He wanted to be part of something diffEven though they were selling shoes like a bunch of other companies, they wanted som

something more rewarding, a company that was going to set them apart from the rest a

and the rest of the employees happy to come to work. This was preaching to the choir, bTonys speech something he said something that we never really thought about and it w

think that Zappos priority was customer service. Tony explained that the number one Zappos was really company culture. If you get the culture right the rest of the stuff winaturally.

Over the course of the next six months, which was eight months after our initial thoughtlearned what Zappos had figured out: Its about the culture of your business that derive

good and bad You want to have great customer service? You better have a great culture

From John Korioth
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How did we do this? We started to pay more attention to our employees andwere telling us, We got them more involved in the process of decisions. We give them better customer service. For example: At the end of every night amanager log is created and emailed to all the managers and owners. It has numbers and general thoughts of how the night went. It also has maintenanthe employees may have noticed or just thoughts on how they think the niggone better. If they list a maintenance item we do everything we possibly cthat item fixed by the time they walk in the next day for work. We also call,them and tell them we fixed the problem or that we are working on it. This that we listen to them and we take it seriously. If it is an idea that they mighimprove the customer experience or work environment, Chris or myself willwith them in person to discuss it.

Another example is most employees in the service industry hate employee They are usually on their day off and are full of information they already kn

hard look at how to make these more enjoyable, interactive and more rewausually take them to dinner instead of hosting the meeting at our location. Tthem in a different mindset of something new and interesting. We may alsoto be prepared to tell a story of some good or bad customer service experie

encountered at another business This usually results in some good laughs

From John Korioth
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What does this do for us? Everything! Employee retention is way better than any ohave ever worked or owned. All of our cocktail waitresses are part time due to the business. Most of them have other part time jobs or are in school. Just the other dato one of them (Kathleen) and she told me that she had 7 other jobs in the past yeaall of them because the work environment was so bad and nothing compared to SIX

meeting employee meeting we had one of our oldest employees (Rod) stood up ouand said he had worked at 10 other bars and restaurants and they never discusseddo and it has totally changed the way he looks at coming to work. When a customeour place and sees the same people working it makes them feel at home. It may sofrom the TV show Cheers but you want to go to a place where everyone knows yo

We are going into our 5th year of business, and we have matched the previous yeayear. You might be thinking that we should have experienced growth. This economcircumstances, have hit other bars and restaurants in our area very hard. Some goestablishments are down 30 40%. Every bar is probably down except us. We tendare up 30% even though we just matched last years sales. We know one reason fculture and Zappos.

The most rewarding thing to us is, when we are walking around in Austin and we sefriends, the first thing they say to us is that they were in SIX and our employees we

They ask me how I get them to act like that when other bars are not that way I ju

From Dave Brautigan
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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. back up and ready to take on the world. I also leave ready to spread the happiness. Soinfecting me somehow. Its either in the air or the mixed nut machines all around the off

With Atlanta Refrigeration, I loved work prior to going to Zappos. I got up every day readay out. I thought I had a great company and did not know any better. The way my dadway I ran it. I took the other jobs I had in life and used that, all the same type of culturethough started to sit a little weird (maybe I saw an article, read a blog) not really sure hostarted, but it did. I found out about Zappos and I was interested, but very skeptical.

After Zappos Insights I was amazed and seeing it made me realize that you could operat

a fun, happy atmosphere and have a reason to work more than just the profit. You couldtrust, and really make work a special place. Since my return from Zappos, we have madin building up our culture, something we had all along, but did not know what it was, howhow important it was in making decisions! The foundation, core values, was something give 100 percent thanks to Zappos for, as I would have never done it, but listening to Tothem, 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

back and look at my life and see what made me happy for the long term not just short t

From Dave Brautigan
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Since Zappos, I am happier now than I can ever remember in the past. I ditched stmeeting and took up exercise. It led to me to dropping 20lbs and starting triathloncoaching. I am doing an Iron man in May and have a side job as The North Face stoleader! I am happy when I am out on the road, the bike, or the pool. I also use it tstress 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 pemployees reach their dreams. I ask them for 101 and we are knocking them out! working on two that are really unique. One of my customer service ladies wants toOprah show and another lady wants to meet the Gosslin kids (from John and Kate psure how I am going to pull those off, but I know it can be done!!

Its funny, the one thing that sticks in my mind on every visit (I have done a few nohow freaky the door opening is. People go out of their way to hold a door open in tThat small gesture is edge of the culture waterfall you go over when you walk in. now when I am having a bad day or not living my personal values to stop, smile, andoor for someone. Its amazing how something small can bring back a rush of emotthoughts 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

much ou can increase our ha iness You ust have to take it ste b ste and w

Building Grea
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Building Grea


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VISIONWhatever youre thinking, thinkbigger.

Does the vision have meaning?

Chase the vision, not the money

VISION


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Dont chase thpaper, chase th

dream.Sean Combs aka Puff Daddy t

Biggie Smalls aka Notoriou

ENTREPRENEURS:


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What would yobe passionate

about doing fo10 years even

EMPLOYEES:


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Whats the largvision and

greater purposin their work


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MOTIVATIO


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MOTIVATIOvs.

INSPIRATIO


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Vision & Cultuinspire

Passion &

Example of evolving visand brand


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and brand1999 Selection

2003 Customer Service

2005 Culture and core values as our p

2007 Personal Emotional Connection

2009 Delivering Happiness
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QuestionsWh d th t b i ?


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Where does the story begin?

Where does the story end?

How do you reinforce the good memor

What were the emotions, positive andnegative?

H t t i d

Whats your business?Y t i th b i
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Youre not in the _______ business.

Cirque du Soleil is not in the circus bu

Youre in the experience and emotionbusiness.

Youre in the stories and memoriesbusiness.


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TAKE A STEP BACK

WHAT IS YOUR GOAGOALIFE?

WHAT IS YOUR GOAL IN LI


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GrowCompany

Get a

Great Job

Boyfriend/

Girlfriend

B

Hea

RetireEarly

MakeMoney

Find SoulMate

RFas

SpendTime w/Family

Buy A

Home

Get

Married

Ru

Mara

why? why? why? wh

why? why? why? wh

HAPPINE

why? why? why? why?

RESEARCH HAS SHOWN
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Slide 76

HAPPINESSPeople are very bad apredicting what will brthem sustained happine

When I get ___, I will be happy.

HAPPINESS There is a SCIENCE behind many aspects of b


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Slide 77

There is a SCIENCEbehind many aspects of bincluding: conversion psychology of buying direct marketing customer acquisition metrics repeat customer behavior, etc.

What if you spent just a little bit of your time s

and learning the SCIENCEofHAPPINE

WHAT IS YOUR GOAL IN LIF
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Slide 78

GrowCompany

Get aGreat Job

Boyfriend/

Girlfriend

B

Hea

RetireEarly

MakeMoney

Find SoulMate

RFas

SpendTime w/Family

Buy A

Home

Get

Married

Ru

Mara

why? why? why? wh

why? why? why? wh

why? why? why? why?

HAPPINE
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A FEW DIFFEREN

FRAMEWORKS O

HAPPINESSHAPPINESS

A FEW DIFFERENT FRAMEWORK

HAPPINESS


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Slide 80

HAPPINESS

Perceived ControlPerceived Progress

ConnectednessVision / Meaning

(Being part of something bigger than you

Maslows Hierarchy


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Slide 81

3 TYPES OF HAPPINESS

k


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Slide 82

Rock Star(Pleasure chasing the next high)

Flow(Engagement time flies)

Meaning / Higher Purpose(Being part of something bigger than

yourself)

RECOMMENDED BOOKS

PEAK
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Slide 83

PEAKChip Conley

TRIBAL LEADERSHIPDave Logan, John King & Halee Fischer-Wrigh

FOUR HOUR WORK WETim Ferriss

HAPPINESS HYPOTHESJonathan Haidt

Contact info and tours!
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Slide 84

Email [email protected]

This presentation

Free culture book

(need physical mailing address)

Go to http://tours.zappos.com for:

Tour of Zappos offices when youre next in Las Vegas

(takes about an hour)

GREATBUSINES


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Slide 85

Profits

Passion

Purpose

BUSINESS

HAPPINESS

GREATBUSINES


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Slide 86

SSBUSINESS

Profits

Passion

Purpose

Pleasure

Passion

Purpose

Wh t % f ti
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Slide 87

What % of your time

you want to spenlearning about th

SCIENCE ofHAPPINESS?

If the research shows th


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Slide 88

e esea c s o s

vision / meaning / highpurpose

leads toHAPPINESS

What is your companys hpurpose?


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DeliveringHAPPINESS


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DeliveringHAPPINESSLearn more and join the movementwww.deliveringhappiness.com

[email protected]

[email protected]

My new book is titled
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Slide 91

Delivering Happiness

Now available in booksto

www.deliveringhappiness.


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Documents

Delivering Happiness - Tiger Global Management_10.3.11 TJ