Insights on GrowthAlfred Lin – COO/CFOalfred@zappos.comFollow me on Twitter: twitter.com/zappos_alfredZappos InsightsJuly 14-15, 2009

Want to be in the know?Knowledge is power.- Sir Francis Baconhttp://www.flickr.com/photos/92306213@N00/2597802533/

Actually we should strive for…understanding & wisdom (insights)All truths are easy to understand once they are discovered; the point is to discover them.- Galileo Galileihttp://www.flickr.com/photos/nickwebb/3262584707/

Growth

There are all sorts of growth…http://www.flickr.com/photos/trinifar/2126443036/in/photostream/

Penny for your thoughts:How have you grown in the past year?http://www.flickr.com/photos/looney1/1378274069/

Another penny for your thoughts:Where do you want to grow this year?http://www.flickr.com/photos/looney1/1378274069/

http://www.flickr.com/photos/deapeajay/2414000236/

What do we want to grow?http://www.flickr.com/photos/lumaxart/2136954043/in/photostream/

Insight #1: Pursue Growth and LearningBoth Personally & Professionallyhttp://www.flickr.com/photos/lumaxart/2136953043/in/photostream/http://www.flickr.com/photos/lumaxart/2152762098/in/photostream/

Business planning process for growth…If we want to grow, we need to:Grow salesFind the right marketsSell more to old customersFind new customersSatisfy customersBuild brandBuild more warehousesBuild more web serversIncrease efficiencyHire more peopleetc…http://www.flickr.com/photos/lumaxart/2136953861/in/photostream/

Grow sales

Find the right markets

Sell more to old customers

Find new customers

Satisfy customers

Build brand

Build more warehouses

Build more web servers

Increase efficiency

Hire more people

etc…

Insight #2: Add Culture to that ListRemember to Grow the Company Culturehttp://www.flickr.com/photos/lumaxart/2136953279/in/photostream/

http://www.flickr.com/photos/wwworks/1384952210/

BUILD YOUR TEAM“If you want to go quickly, go alone. If you want to go far, go together.” (Al Gore quoting African proverb)Hire slowly / Fire quicklyInsight #3: Get the Right People on the Bus“First Who…Then What”

Great companies bring all 3 elements together…VisionaryArtistScientist

http://www.flickr.com/photos/javigutierrez/3395291070/

VISION“Whatever you’re thinking, think bigger.”Does the vision have meaning?Chase the vision, not the money…Insight #4: Grow Your VisionExpand your Vision over Time

Evolution of Zappos Brand / Vision1999 Selection “The World’s Largest Shoe Store”2003 Service & Selection Stopped drop shipping forgoing 25% of sales at the time2005 Culture & Core Values as a platform “Zappos is a service company that just happens to sell shoes...”2007 Personal Emotional Connection “Powered by Service”2009 Delivering Happiness

Insight #5: Make Sure to Focus on the CorePassion / Uniquely Good At / ProfitWhat you are deeplypassionate about?What drives youreconomic engine?What you canbe the best inthe world at?

http://www.flickr.com/photos/atbaker/1314706475/

Insight #6: Get AlignmentGet Everyone to Row in the Same Direction“Companies with an adaptive culture that is aligned to their business goals routinely outperform their competitors.”“Company Culture: What It Is And How To Change It” by F. John Reh“When you are in alignment with the people around you, you are much more likely to travel in the same direction and avoid hidden agendas.”"The Attention Deficit Workplace" by Mitch Thrower“Companies that have created a collaborative culture are far more likely to achieve their alignment goals, while those whose communication is poor and governance model fractured are often destined for failure.” Ellen Pearlman, Editor-in-Chief of CIO Insight

Insight #7: Have a Higher PurposeFight for a Cause / Find Your Calling“Purpose is the engine, the power that drives and directs our lives.”John R. Noe“Every life needs a purpose to which it can give the energies of its mind and the enthusiasm of its heart. Start by doing what's necessary; then do what's possible and suddenly you are doing the impossible.”Francis of Assissihttp://www.flickr.com/photos/lumaxart/2136953861/in/photostream/

“Purpose is the engine, the power that drives and directs our lives.”

John R. Noe

“Every life needs a purpose to which it can give the energies of its mind and the enthusiasm of its heart. Start by doing what's necessary; then do what's possible and suddenly you are doing the impossible.”

Francis of Assissi

Alignment Assignment:Putting It Into PracticeInsight #1: Pursue Growth & LearningWhat am I going to do to grow personally?What am I going to do to grow professionally?Insight #2: Add Company Culture to Growth Planning ProcessHow do I plan for my growth?How does my company plan for growth?How will I & my company grow the company culture?Insight #3: Get the Right People on the Bus?Does my company have the right people on the bus?Who are the visionary?Who are the artists?Who are the scientists?How well do we work together?

Alignment Assignment:Putting It Into PracticeInsight #4: Grow Your VisionWhat is my personal vision?What is my company’s vision?How do I expand both visions?Insight #5: Make Sure to Focus on the CoreWhat am I (is my company) passionate about?What am I (is my company) uniquely good at?How am I (is my company) able to make good money?Insight #6: Get AlignmentDoes everyone understand the vision?Does everyone understand the goals?Does everyone understand their role & responsibilities?

Alignment Assignment:Putting It Into PracticeInsight #7: Have a Higher PurposeWhat is my higher purpose?What is the company’s higher purpose?Are we making the world a better place?

THANK YOU