T h e p o
w e r ofhappiness Jennifer Aaker Stanford Graduate School of Business @aaker

Why does happiness matter?

ROI of happiness Job burnout
Turnover intentions Absenteeism Organizational Citizenship Behavior Job performance Customer service Likability as work partner Group cooperativeness Creative episodes Exploration strivings -0.6 -0.4 -0.2 0 0.2 0.4 0.6 Lyubormirsky, King and Diener (2005)

Happy customers are more loyal.They
pay more for a great experience.They talk about their brands.

Misperceptions of happiness

We think we know whatmakes
us happy.(But we don’t really).

As wealth increases, happiness does
not. Easterlin Paradox (1974) GDP per Capita ( Thousands% Survey Responses 80 45 Pretty Happy 40 60 35 of dollars) 30 25 40 Very Happy 20 15 20 10 5 Not Very Happy 0 0 1972 1976 1980 1984 1988 1992 1996 2000 Year Source: Bureau of Economic Analysis (GDP data) General Social Survey Data from 1972 – 2006. Question : How happy are you? (Very Happy, Pretty Happy, Not Very Happy). N = 1500.

We don’t accuratelyremember what makesus
happy.

Aaker, Drolet and Griffin (2008)

When we do achieve’happiness,’ it
fades. Weadjust surprisingly quickly.

Are we commoditizing happiness?If we
do a, b and c – we’ll be happy.How are we measuring success?By what you have acquired or achieved?How might we rethink happiness?If the goal is not to find happiness.

1 DESIGN FOR FLEXIBLITY The
meaning of happiness shifts over the life course.

People often assume that happiness
is one thing.

But the meaning of happiness
shiftsacross the life course.

DESIGNING HAPPINESS | © JENNIFER
AAKER

Harris and Kamvar; WeFeelFine (2010)

When our meaning of happiness
shifts, we begin to search for different things.

discovery THE PROMISE Excitement

THE PROMISEpursuit Conquer the world

THE PROMISEbalance Work+family+health

THE PROMISEimpact Significance

As a brand, what type
of happiness are you cultivating?

As a company, are you
designing environments where your employees can shift as their meaning of happiness shifts?

2 DESIGN FOR MEANINGFULNESS It
is a better compassD E DESIGNING HAPPINESS E S SJENNIFER AAKER © J E N N I F E R A A K E R SIGNING HAPPIN | © /

Happiness is not achieved by
conscious pursuit; it is generallythe by product of other activities. ALDOUS HUXLEY Brave New World

What is meaningfulness? Lasting Important
Awe-evoking Often intimidating

How does that work within
companies?

Higher Purpose Achieved when you
feel a part of something bigger than yourself andthe shared goal matters significantly.

Drivers of happiness H Feeling
that you are part of something meaningful. Achieved when you feel a part of something bigger than yourself and where the Higher shared goal matters significantly. Purpose Perceiving that you are in control of your future A path, able to work on what you’re good at while learning new skills. Achieved when you feel you have the trust from yourself and others to make Impact Autonomy critical decisions. P Cultivating meaningful relationships. Achieved through shared experiences where collaboration is meaningful, innovative, and fun. People I Having your work touch the lives of others. Achieved when you feel valued and see the concrete, measurable, positive difference that you’re actions have on others as you drive toward excellence.

Drivers Kryptonites Higher Confusion Purpose
Autonomy Fear Lack ofImpact control People Loneliness

Companies resemble their leaders Higher
Autonomy People Impact PurposeJohn Mackey Larry Page Tony Hsieh Steve Jobs WHOLE FOODS GOOGLE ZAPPOS APPLE

Happiness without meaning is fleeting.Aim
for meaningfulness.

3 DESIGN FOR MOMENTS Small
moments matter more than we think.

“I am happy when we
have family movie night.” Devon Smith

3 1 Frederickson (2009)

EXPECTATIONS GAP HAPPINESSPERFORMANCE

Create surprising moments of authentic
happiness.

How are you creatingsmall moments
of delight?

4 DESIGN FOR STORIES The
stories we tell ourselves affect the happiness we feel.

Studies show that a person
with an incoherent story is more likely to experience depression Crossley (2000)

Is it the same for
corporations? Photo: Hector Garcia

So how do we cultivate
a coherent story?

Know your story.

Your past stories. Photo: Jose
Valiente

Your present stories. Photo: Fatma
M.

Your future stories. Photo: Daniel
Silviera

What is the throughline.

Make your customerintegral to the
story.

Brands too often make themistake
of trying to be the hero. Photo: Bethan

The customer is the hero.DESIGNING
HAPPINES | ™ JENNIFER AAKER

Don’t manufactureyour story.

When you share the story,
you need to feel authentic.People can tell when you aren’t. Photo: Xevi V.

3 DESIGN FOR MOMENTS Employeesmatter.
believe Simple things must(and be inspired by) the story.

Brands often feel manufactured. People
do not.Protagonists make a story relatable

There will be a time
when you need a new story.

Angelina Jolie

Use stories. They are engines
ofgrowth and innovation.

Stories help customers make the
jump to where you’re going.

A good story is like
a roller coaster.

Bank your stories They are
assets.

What are yoursignature stories?

What stories revealsuffering and transformation?

What stories are a part
of something larger?

So, in sum…

We think we can attain
happiness.And often ask, how can I get happier?But people don’t know what really makesthem happy (although they think they do).Rather than trying to get happy or behappier, could we rethink happiness?

BOOKSAnnette Simmons Julie Fuoti &
Lisa Johnson Jennifer Aaker and Andy Smith Nancy Duarte Robert McKeeJack Maguire Nancy Duarte Chip & Dan Heath John Walsh Jonathan Harris & Sep Kamvar Andy Goodman Stephen Denning

HOW TO TELL A Thank
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