PPAI 2014 - Tony Hsieh - Downtown Project - Zappos_1.15.14

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PPAI 2014 - Tony Hsieh - Downtown Project - Zappos_1.15.14

  1. 1. ZAPPOS.COM DELIVERING HAPPINESS DOWNTOWN PROJECT
  2. 2. A BIT ABOUT ME (TONY) 1994-1995: Pizza business in college
  3. 3. A BIT ABOUT ME (TONY) 1994-1995: Pizza business in college 1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 million
  4. 4. A BIT ABOUT ME (TONY) 1994-1995: Pizza business in college 1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 million 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
  5. 5. A BIT ABOUT ME (TONY) 1994-1995: Pizza business in college 1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 million 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc. 1999-Today: Zappos.com, Inc.
  6. 6. A BIT ABOUT ME (TONY) 1994-1995: Pizza business in college 1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 million 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc. 1999-Today: Zappos.com, Inc. 2009: Amazon acquires Zappos for $1.2 billion
  7. 7. A BIT ABOUT ME (TONY) 1994-1995: Pizza business in college 1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 million 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc. 1999-Today: Zappos.com, Inc. 2009: Amazon acquires Zappos for $1.2 billion 2010: NYT bestseller Delivering Happiness published
  8. 8. The Power of WOW Gross Sales $MM $1,000 800 600 400 200 „00 „01 „02 „03 „04 „05 „06 „07 „08
  9. 9. CUSTOMER EXPERIENCE What do customers expect? What do customers actually experience? What emotions do customers feel? What stories do they tell their friends? How can culture create more stories and memories?
  10. 10. THE #1 PRIORITY
  11. 11. THE #1 PRIORITY
  12. 12. CULTURE THE #1 PRIORITY
  13. 13. CULTURE THE #1 PRIORITY Hiring for culture 4 weeks of training $4000 offer Culture Book
  14. 14. CLOTHING, CUSTOMER SERVICE, CULTURE CULTURE CUSTOMER EXPERIENCE CLOTHING
  15. 15. CLOTHING
  16. 16. CUSTOMER SERVICE
  17. 17. CULTURE
  18. 18. CLOTHING, CUSTOMER SERVICE, CULTURE CULTURE CUSTOMER EXPERIENCE CLOTHING
  19. 19. DELIVERING HAPPINESS CUSTOMERS & 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
  20. 20. BUILDING GREAT
  21. 21. INGREDIENT #1
  22. 22. CULTURE COMMITABLE CORE VALUES Don‟t make your core values just a meaningless plaque on the wall…
  23. 23. EXAMPLE: CORE VALUES 1. Deliver WOW Through Service 2. Embrace and Drive Change 3. 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
  24. 24. COMMIT TO TRANSPARENCY “Be real and you have nothing to fear” Your culture is your brand Don‟t try to be someone you are not Parades at Zappos…
  25. 25. “That‟s great…
  26. 26. “That‟s great… but it would never work at my company…”
  27. 27. ALIGNMENT It doesn‟t matter what your core values are…as long as you commit to them.
  28. 28. INGREDIENT #2
  29. 29. VISION “Whatever you‟re thinking, think bigger.” Does the vision have meaning? Chase the vision, not the money…
  30. 30. Sean Combs aka “Puff Daddy” to rapper Biggie Smalls aka “Notorious B.I.G.” in Notorious
  31. 31. Don‟t chase the paper, chase the dream.”
  32. 32. ENTREPRENEURS “What would you be passionate about doing for 10 years even if you never made a dime?”
  33. 33. EMPLOYEES What‟s the larger vision and greater purpose in their work beyond money or profits?
  34. 34. MOTIVATION
  35. 35. MOTIVATION VS
  36. 36. MOTIVATION VS INSPIRATIO
  37. 37. VISION & CULTURE INSPIR E PASSION & PURPOSE
  38. 38. EVOLVING VISION & BRAND AT ZAPPOS.COM 1999 Selection 2003 Customer Service 2005 Culture and core values as our platform 2007 Personal Emotional Connection 2009 Delivering Happiness
  39. 39. QUESTIONS VISION & BRAND AT ZAPPOS.COM Where does the story begin? Where does the story end? How do you reinforce the good memories? What were the emotions, positive and negative? How can you create more stories and memories?
  40. 40. 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 emotions business. You‟re in the stories and memories business. Think bigger.
  41. 41. WHAT‟S NEXT DELIVERING HAPPINESS Clothing Customer Service Company Culture “a great brand is… ______”
  42. 42. ZAPPOS.COM http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg
  43. 43. LAS VEGAS CITY HALL http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
  44. 44. LAS VEGAS CITY HALL
  45. 45. LAS VEGAS CITY HALL
  46. 46. APPLE http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
  47. 47. NIKE http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
  48. 48. GOOGLE http://static.panoramio.com/photos/original/400729.jpg
  49. 49. DOGGY DAY CARE http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
  50. 50. NYU CAMPUS http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
  51. 51. DOWNTOWN VEGAS FREMONT EAST http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
  52. 52. DOWNTOWN VEGAS FREMONT EAST http://www.lucyvegas.com/sites/default/files/griffin5.jpg
  53. 53. DOWNTOWN VEGAS FREMONT EAST
  54. 54. DOWNTOWN VEGAS FREMONT EAST http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
  55. 55. DELIVERING HAPPINESS WHAT‟S NEXT? Clothing Customer Service Company Culture
  56. 56. DELIVERING HAPPINESS WHAT‟S NEXT? Clothing Customer Service Company Culture Community
  57. 57. DOWNTOWN PROJECT COLLISIONS CO-LEARNING CONNECTEDNESS
  58. 58. DOWNTOWN PROJECT $350M $50M – Small businesses $50M – Tech Startups $50M – Education, Arts, Culture $200M – Real Estate
  59. 59. DOWNTOWN PROJECT GOALS
  60. 60. DOWNTOWN PROJECT GOALS • Live/Work/Play – Walking Distance
  61. 61. DOWNTOWN PROJECT GOALS • Live/Work/Play – Walking Distance • The Most Community-Focused Large City in the World
  62. 62. DOWNTOWN PROJECT GOALS • Live/Work/Play – Walking Distance • The Most Community-Focused Large City in the World • The Co-Learning and Co-working Capital of the World
  63. 63. ROI VS ROC Instead of maximizing short-term ROI (Return On Investment)…
  64. 64. ROI VS ROC Instead of maximizing short-term ROI (Return On Investment)… We focus on maximizing long-term ROC
  65. 65. ROI VS ROC Instead of maximizing short-term ROI (Return On Investment)… We focus on maximizing long-term ROC (Return On Community)
  66. 66. ROI VS ROC & ROL Instead of maximizing short-term ROI (Return On Investment)… We focus on maximizing long-term ROC (Return On Community) and institutionalizing ROL
  67. 67. ROI VS ROC & ROL Instead of maximizing short-term ROI (Return On Investment)… We focus on maximizing long-term ROC (Return On Community) and institutionalizing ROL (Return On Luck) – Accelerating Serendipity
  68. 68. THE BIG BET Accelerating Collisions, Co-Learning, and Connectedness
  69. 69. THE BIG BET Accelerating Collisions, Co-Learning, and Connectedness …will lead to… Happiness, Luckiness, Innovation, and Productivity
  70. 70. DOWNTOWN PROJECT $350M $50M – Small businesses $50M – Tech Startups $50M – Education, Arts, Culture $200M – Real Estate
  71. 71. $50M SMALL BUSINESS
  72. 72. $50M SMALL BUSINESS Criteria
  73. 73. $50M SMALL BUSINESS Criteria Owner Operated - Passionate
  74. 74. $50M SMALL BUSINESS Criteria Owner Operated - Passionate Helps Build Community
  75. 75. $50M SMALL BUSINESS Criteria Owner Operated - Passionate Helps Build Community Execution Ability
  76. 76. $50M SMALL BUSINESS Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable
  77. 77. $50M SMALL BUSINESS Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at Something
  78. 78. $50M SMALL BUSINESS Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at Something Story-worthy
  79. 79. NATALIE
  80. 80. NATALIE
  81. 81. NATALIE
  82. 82. NATALIE
  83. 83. NATALIE
  84. 84. NATALIE
  85. 85. CHECK CASHING
  86. 86. CHECK CASHING
  87. 87. SARAH
  88. 88. SARAH
  89. 89. SARAH
  90. 90. SHIPPING CONTAINERS
  91. 91. SHIPPING CONTAINERS
  92. 92. CONTAINER PARK
  93. 93. CONTAINER PARK
  94. 94. CONTAINER PARK
  95. 95. CONTAINER PARK
  96. 96. LVCK
  97. 97. LVCK
  98. 98. LVCK
  99. 99. MEDICAL CLINIC
  100. 100. $50M TECH STARTUPS
  101. 101. $50M TECH STARTUPS https://twitter.com/VegasKramer/status/330833896574951424/photo/1
  102. 102. $50M TECH STARTUPS
  103. 103. PROJECT 100
  104. 104. PROJECT 100
  105. 105. COWORKING https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=523b8f7211d2d802c3ba1d40
  106. 106. COWORKING https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=5196bb0f498eb4bdee4082f1
  107. 107. LEARNING VILLAGE
  108. 108. LEARNING VILLAGE
  109. 109. LEARNING VILLAGE https://foursquare.com/v/learning-village/51c4ebf5454a6e38af8a9e85/photos?openPhotoId=51e08991498efac3d12b7387
  110. 110. GOLD SPIKE (FORMER CASINO) http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7VVqSMlA#vPAm4TwFWc3kw_lM9NJzfQ
  111. 111. GOLD SPIKE (FORMER CASINO) http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7VVqSMlA#uSzsFfdBhPok_sfEpJk-7Q
  112. 112. GOLD SPIKE COWORKING LOUNGE
  113. 113. GOLD SPIKE COWORKING LOUNGE https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=51f18e5d498eb74dd6fc3edf
  114. 114. GOLD SPIKE COWORKING LOUNGE https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=52099aef11d226362f7930d9
  115. 115. GOLD SPIKE COWORKING LOUNGE
  116. 116. CITY AS A STARTUP http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
  117. 117. CITY AS A STARTUP http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
  118. 118. CITY AS A STARTUP
  119. 119. $50M EDUCATION, ARTS, CULTURE http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
  120. 120. $50M EDUCATION, ARTS, CULTURE http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
  121. 121. $50M EDUCATION, ARTS, CULTURE http://photos.lasvegassun.com/media/img/photos/2013/08/27/0827NinthBridge13_t653.JPG?214bc4f9d9bd7c08c7d0f6599bb3328710e01e7b
  122. 122. $50M EDUCATION, ARTS, CULTURE
  123. 123. $50M EDUCATION, ARTS, CULTURE http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
  124. 124. $50M EDUCATION, ARTS, CULTURE http://mikerossart.net/images/mikeross_enter.jpg
  125. 125. $50M EDUCATION, ARTS, CULTURE http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
  126. 126. LIFE IS BEAUTIFUL
  127. 127. LIFE IS BEAUTIFUL
  128. 128. LIFE IS BEAUTIFUL
  129. 129. LIFE IS BEAUTIFUL
  130. 130. LIFE IS BEAUTIFUL
  131. 131. $200M REAL ESTATE
  132. 132. WHEN CITIES DOUBLE IN SIZE Productivity and innovation per resident increases by 15% (But not true for companies) Accelerate serendipity > Accelerate learning > Accelerate productivity and innovation
  133. 133. 3 INGREDIENTS FOR SERENDIPITY 1. Residential density of 100 residents/acre 2. Street-level activity for residents to collide 3. Culture of openness, collaboration, creativity, and optimism
  134. 134. HOW TO ACCELERATE LEARNING & INNOVATION Maximize serendipitous interactions Density in the office Density in the city Collisions vs. convenience
  135. 135. LAS VEGAS CITY HALL http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
  136. 136. LAS VEGAS CITY HALL 1. 2000 Zappos employees 2. 1000 Teach For America corp members and alumni 3. Tech Startup Community 4. Small Business Community 5. Art and Music Communities 6. Other Passion Communities 7. Local Residents
  137. 137. LEARNINGS FROM ZAPPOS & COWORKING
  138. 138. CULTURE IS TO A COMPANY AS COMMUNITY IS TO A CITY
  139. 139. CULTURE IS TO A AS COMPANY COMMUNITY IS TO A CITY Values Innovation Serendipity Participation Upward Mobility Attracting Startups & the Creative Class
  140. 140. OUR SECRET WEAPON http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
  141. 141. LEARNINGS FROM TED, SUMMIT SERIES, SXSW, BIF… Curated Content Serendipity Learning Connections Community
  142. 142. DOWNTOWN VEGAS EVERY DAY Curated Content Serendipity Learning Connections Community
  143. 143. Fremont St. & Las Vegas Blvd.
  144. 144. Fremont St. & Las Vegas Blvd.
  145. 145. INSPIRE THEATER
  146. 146. INSPIRE THEATER
  147. 147. INSPIRE THEATER
  148. 148. INSPIRE THEATER
  149. 149. INSPIRE THEATER
  150. 150. INSPIRE THEATER
  151. 151. INSPIRE THEATER
  152. 152. INSPIRE THEATER
  153. 153. DOWNTOWN VEGAS MONTHLY CADENCE
  154. 154. DOWNTOWN VEGAS MONTHLY CADENCE Week 1 – First Friday Week
  155. 155. DOWNTOWN VEGAS MONTHLY CADENCE Week 1 – First Friday Week Week 2 – Tech Week
  156. 156. DOWNTOWN VEGAS MONTHLY CADENCE Week 1 – First Friday Week Week 2 – Tech Week Week 3 – Fashion Week
  157. 157. DOWNTOWN VEGAS MONTHLY CADENCE Week 1 – First Friday Week Week 2 – Tech Week Week 3 – Fashion Week Week 4 – Catalyst Week
  158. 158. FASHION INCUBATOR STITCH FACTORY
  159. 159. FASHION INCUBATOR STITCH FACTORY
  160. 160. RETURN ON COLLISIONS ROC What is the value of a resident that is out and about in the community?
  161. 161. RETURN ON COLLISIONS ROC What is the value of a resident that is out and about in the community? 3-4 hours/day
  162. 162. RETURN ON COLLISIONS ROC What is the value of a resident that is out and about in the community? 3-4 hours/day x 7 days/week
  163. 163. RETURN ON COLLISIONS ROC What is the value of a resident that is out and about in the community? 3-4 hours/day x 7 days/week x 40 weeks/year
  164. 164. RETURN ON COLLISIONS ROC What is the value of a resident that is out and about in the community? 3-4 hours/day x 7 days/week x 40 weeks/year = 1000 “collisionable” hours/year
  165. 165. JAKE – FLINT & TINDER http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-Itb.jpg
  166. 166. JAKE – FLINT & TINDER
  167. 167. RETURN ON COLLISIONS ROC What is the value of a purposeful visitor that contributes to community?
  168. 168. RETURN ON COLLISIONS ROC What is the value of a purposeful visitor that contributes to community? 12 hours/day
  169. 169. RETURN ON COLLISIONS ROC What is the value of a purposeful visitor that contributes to community? 12 hours/day x 7 days/week
  170. 170. RETURN ON COLLISIONS ROC What is the value of a purposeful visitor that contributes to community? 12 hours/day x 7 days/week x 12 weeks/year
  171. 171. RETURN ON COLLISIONS ROC What is the value of a purposeful visitor that contributes to community? 12 hours/day x 7 days/week x 12 weeks/year = 1000 “collisionable” hours/year
  172. 172. RETURN ON COLLISIONS ROC “SUBSCRIB E”
  173. 173. RETURN ON COLLISIONS ROC 1. 100 residents per acre 2. Street-level activity for residents to collide 3. Culture of openness, collaboration, creativity, and optimism
  174. 174. RETURN ON COLLISIONS ROC 1. 100 residents per acre 2. Street-level activity for residents to collide 3. Culture of openness, collaboration, creativity, and optimism
  175. 175. RETURN ON COLLISIONS ROC 100,000
  176. 176. RETURN ON COLLISIONS ROC 100,000 “collisionable”
  177. 177. RETURN ON COLLISIONS ROC 100,000 “collisionable” community
  178. 178. RETURN ON COLLISIONS ROC 100,000 “collisionable” community hours
  179. 179. RETURN ON COLLISIONS ROC 100,000 “collisionable” community hours per
  180. 180. RETURN ON COLLISIONS ROC 100,000 “collisionable” community hours per acre
  181. 181. RETURN ON COLLISIONS ROC 100,000 “collisionable” community hours per acre per
  182. 182. RETURN ON COLLISIONS ROC 100,000 “collisionable” community hours per acre per year
  183. 183. RETURN ON COLLISIONS ROC 100,000 “collisionable” community hours per acre per year 2.3 COLLISIONABLE HOURS PER SQUARE FOOT
  184. 184. THE BIG BET 3 GUIDING PRINCIPLES Accelerate: 1. Collisions 2. Co-Learning 3. Connectedness And everything else will fall into place… (productivity, innovation, growth, happiness) What will people say about downtown?
  185. 185. ZAPPOS, DELIVERING HAPPINESS, DOWNTOWN PROJECT
  186. 186. 50% OF HUMANS LIVE IN CITIES https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
  187. 187. 75% WILL LIVE IN CITIES IN OUR LIFETIME https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078
  188. 188. THE 4 MINUTE MILE
  189. 189. THE 4 MINUTE MILE
  190. 190. A GREAT BRAND is a story that never stops unfolding.
  191. 191. A GREAT BRAND, COMPANY is a story that never stops unfolding.
  192. 192. A GREAT BRAND, COMPANY, CITY is a story that never stops unfolding.
  193. 193. A GREAT BRAND, COMPANY, CITY, COMMUNITY is a story that never stops unfolding.
  194. 194. THANK YOU! For a copy of this presentation: tony@zappos.com For more information: www.downtownproject.com

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