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Culture and Core Values: The Zappos Family Way


Published on

ERE Webinar from 6/1/2011, presented by Christa Foley.

Published in: Business, Career

Culture and Core Values: The Zappos Family Way

  1. 1. People Culture and Committable Core Values Recruiting, Managing, and Motivating The Zappos Family Way
  2. 2. Delivering Happiness Tony Hsieh, CEO©  2009  
  3. 3. ZAPPOS AT A GLANCE Founded  in  1999   1200  in   Shepherdsville   2000  plus   employees   1023  in   Las  Vegas  ©  2009  
  4. 4. ZAPPOS AT A GLANCE 4  million   warehouse   items   100%   inventoried   BEST   SELECTION!  ©  2009  
  5. 5. Zappos is powered by SERVICE! Fast,  FREE   FREE  return   shipping   shipping   Fast,  friendly   expert  customer   loyalty  team   Fast   365-­‐day   fulfillment   return  policy  ©  2009  
  6. 6. ©  2009  
  7. 7. “Top  25   “50  Most   Customer   Innovative   Service  Champs”   “100  Best   Companies”   Companies   to  Work   For”  ©  2009  
  8. 8. Zappos is committed toWOWing every customer. 365-day returns!©  2009  
  9. 9. Customers  come.   Then  they  come  back.                    Then  they  order  more  and  more  often!  ©  2009  
  10. 10. The Power of WOW $1,000 Gross Sales $MM 800 600 400 200 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06 ‘07 ‘08©  2009  
  11. 11. SERVICEWhat customers notice first 24/7  customer  service   800  number  on  every  page   365-­‐day  return  policy   Free  return  shipping   Free  shipping  ©  2009  
  12. 12. SERVICE What customers experience next Redirection  to  competitors’  sites   Fast,  accurate  fulfillment   Surprise  upgrades  to  overnight  shipping   Above-­‐and-­‐beyond  customer  service  ©  2009  
  13. 13. SERVICE How we ensure it with our employees $2000  incentive  to  quit   5  weeks  of  training   No  sales-­‐based  performance  goals   No  call  times  ©  2009  
  14. 14. SERVICE How we ensure it through our policies Use  of  the  telephone  and  Twitter   Culture  Books   24/7  warehouse   All  products  inventoried  –   no  drop  shipping   50%  of  interviews  and  performance   reviews  based  on  values  and  culture  fit  ©  2009  
  15. 15. ©  2009  
  16. 16. ulture = COMMITTABLE CORE VALUES©  2009  
  17. 17. ZAPPOS CORE VALUES©  2009  
  18. 18. Deliver through service.©  2009  
  19. 19. Embrace and drive change.©  2009  
  20. 20. Create fun and a little weirdness©  2009  
  21. 21. Be adventurous, creative and open-minded.©  2009  
  22. 22. Pursue growth and learning.©  2009  
  23. 23. Build open and honest relationships with communication.©  2009  
  24. 24. Build a positive team and family spirit.©  2009  
  25. 25. Do more with less.©  2009  
  26. 26. Be passionate and determined. Delivery!©  2009  
  27. 27. Be humble.©  2009  
  28. 28. That’s great for Zappos but it would never work at my company…©  2009  
  29. 29. “It doesn’t matter what your core values are… as long as you commit to them.©  2009  
  30. 30. Figure out values and culture.©  2009  
  31. 31. personal    company   Values Culture Align!   Live  the  brand!    ©  2009  
  32. 32. HAVE A VISION. Whatever  you’re  thinking,  think  bigger.  ©  2009  
  33. 33. WORDS OF WISDOM Don’t chase the paper; chase the DREAM. Sean  Combs,  a.k.a.   Biggie  Smalls,  a.k.a.   “Puff  Daddy”   “Notorious  B.I.G.,  ”  ©  2009  
  34. 34. What’s the greater vision and purpose of employees’ work? Go  beyond  the  profit  motive.  ©  2009  
  35. 35. Motivation is different from inspiration.©  2009  
  36. 36. BUILD RELATIONSHIPS.   Don’t  “network.”  ©  2009  
  37. 37. BUILD YOUR TEAM. Hire  slowly,  fire  quickly.  ©  2009  
  38. 38. If you want to go quickly, go alone. If you want to go far, go together. – African proverb©  2009  
  39. 39. How do we recruit for Culture &our Core Values?•  How do we recruit for culture? –  Technical fit – do you have the technical skills to do the job? •  Skills & Experience assessments –  Culture fit – do you have the same values we do?•  Culture Interview –  It’s all about the Core Values •  Wow! Can you roll the way Zappos does? •  Adventurous & Creative! Do you feel lucky!? •  Fun & Weird! You gotta be, but don’t get crazy… •  Team & Family! Workin’ 9 to 5?
  40. 40. How do we get around cannedresponses? Shake ‘em up before you sit ‘em down! –  “A three hour tour” –  What’s your theme song? –  New York City or Cher’s dressing room? I know you said you know… but do you really know or believe it? –  CLT Training –  Testing
  41. 41. Culture & Recruiting100% Certified and Guaranteed!? –  Continual evolution •  Peak Questions •  Top Grading –  Students have the exam ahead of time? •  Applicant to hire ratio = Less than 1% •  Training is an extended screening process
  42. 42. Employee Relations – Zappos Style HR is not the final say, we are simply advisors. Managers make the decisions. –  We act as true advisors and explain the risk around situations –  If the manager does not take our advise, that is fine, we are here to help them in any way we can Being Proactive –  Building Relationships (HR and Management too)
  43. 43. Employee Relations – Zappos StyleAnnual Performance Reviews –  No Annual Reviews. Our managers are encouraged to provide performance feedback regularly and often –  Maintaining our culture is key, Managers provide a Culture Assessment for each team member, based on our Core Values.Employee Handbook –  Make it something people want to read –  Employee Handbook: Policies for Employees by Employees
  44. 44. Infuse Culture in everything!
  45. 45. Benefits are Hot!•  Strive to have the best benefits possible for employees –  We provide Medical, Dental, Vision, STD, LTD, Life Insurance, AD&D Insurance, 401K –  Employees pay no premiums –  All annual visits, check ups / preventative care is free (no out of pocket for employees) –  Employees have an HRA that is fully funded by us. It covers all deductibles plus more.
  46. 46. P.E.A.C.E. Programs Engagement Events P.E.A.C.E. Charity Activities
  47. 47. Put a little Zappos in your day……some links to check out… – (public mentions, employees) – (photos & videos of culture) – (more information about us & core values) – (to schedule a tour, video Q&A from different depts)
  48. 48. Put a little Zappos in your day……some links to check out… Follow me on Twitter @electra Email me – •  A copy of this presentation •  Answers to any additional questions not addressed today Check out our jobs!
  49. 49. Legal and Financial Disclaimer     P.S.    You  might  be  wondering  why  we  need  to  have  a  legal  and  financial  disclaimer  in  this  presenta;on,  but  you  are  s;ll   reading,  so  our  lawyers,  auditors  and  accountants  would  really  like  to  make  sure  we  make  the  following  clarifica;ons.     Although  an  audit  was  underway  and  almost  done,  the  financial  informa;on  presented  in  this  slide  show  was  unaudited.    We   made  every  effort  to  present  the  best  informa;on  we  had  at  the  ;me.     Gross  merchandise  sales  is  a  non-­‐GAAP  metric.    We  use  it  to  express  the  total  demand  across  all  of  our  web  sites  and  stores.   This  number  measures  the  dollar  value  of  the  orders  placed  in  the  year  before  accruing  for  certain  items  such  as  returns,  and   it  ignores  certain  ;ming  cut-­‐offs  that  are  required  by  GAAP  for  revenue  recogni;on  purposes.    If  we  were  a  public  company,   we  would  have  to  reconcile  gross  merchandise  sales  to  the  nearest  GAAP  metric  (net  sales),  but  we  are  currently  a  private   company  so  the  gross  merchandise  sales  number  should  be  viewed  just  as  an  interes;ng  number  that  we  want  to  share  with   our  friends.     This  presenta;on  contains  forward-­‐looking  statements  that  involve  risks  and  uncertain;es,  as  well  as  assump;ons  that,  if  they   ever  materialize  or  prove  incorrect,  could  cause  our  results  to  differ  materially  from  those  expressed  or  implied  by  the   forward-­‐looking  statements  and  assump;ons.    These  risks  and  uncertain;es  include,  but  are  not  limited  to,  the  risk  of   economic  slowdown,  the  risk  of  over  or  under-­‐buying,  the  risk  of  consumers  not  shopping  online  or  at  our  web  site  at  the  rate   we  expected,  the  risk  of  supplier  shortages,  the  risk  of  new  or  growing  compe;;on,  the  risk  of  a  natural  or  some  other  type  of   disaster  affec;ng  our  fulfillment  opera;ons  or  web  servers,  and  the  risk  of  the  world  generally  coming  to  an  end.    All   statements  other  than  statements  of  historical  fact  are  statements  that  could  be  deemed  forward-­‐looking  statements,   including  statements  of  expecta;on  or  belief;  and  any  statement  of  assump;ons  underlying  any  of  the  foregoing.   assumes  no  obliga;on  and  does  not  intend  to  update  these  forward-­‐looking  statements.         Congratula;ons  on  making  it  through  all  the  fine  print.    If  you  enjoy  fine  print,  look  for  openings  on  our  legal  and  finance  team   at