Why are we so bad at our own long term happiness? Can companies really be successful with happiness as a business model? Lessons learned, science, and some human sense.

1. ROCKY MOUNTAIN HRPS
DENVER COLORADO
OCTOBER 2015
SUNNY GROSSO
COACHING AND CULTURE CHIEF

3. WHAT ARE
YOUR GOALS
IN LIFE?
TAKE A MOMENT TO THINK…

4. WHAT ARE YOUR GOALS?

5. I’LL BE HAPPY WHEN I GET _________.
OUR BRAINS ARE
HARDWIRED TO SEEK
HAPPINESS
YET WE’RE SUPERBAD
AT PREDICTING
WHAT WILL SUSTAIN IT

6. HAPPINESS HASN’T CHANGED IN 50 YEARS
IF MONEY BUYS HAPPINESS:
AS INCOME RISES, SO WILL HAPPINESS

7. 87% OF THE WORLD
GALLUP 2014

8. 33% ENGAGED/HAPPY
GALLUP 2014
50% DISENGAGED
17% ACTIVELY
BETTER IN THE US

9. THE COST
$2,500
YEAR PP

10. THE COST
$550B
IN THE US

11. 20-50%
of your employees
will leave this year
It costs
50-150%
of their salary to replace
them
THE SYMPTOMS ARE SHOWING

12. THE SYMPTOMS ARE SHOWING
TOP OCCUPATIONAL DISEASES:
HEART ATTACK, STROKE AND SUICIDE

13. IMAGINE
1/3 OF OUR LIVES
DETERMINES HAPPINESS

14. CAN COMPANIES REALLY
BE SUCCESSFUL WITH
HAPPIPNESS AS A
BUSINESS MODEL?

15. SCIENCE & LEARNINGS
STORY OF
HOW TO APPLY IT $!$!

16. …
WOOHOO!
50M, 100M...
HOW DID I GET HERE?

17. 25 MILLION CUSTOMERS
…

18. OH @#$%!
$265M

19. DOT
COM

20. “A WOMAN’S
DREAM CLOSET…”
ZAPPOS
KENTUCKY WAREHOUSE

21. “PEOPLE WILL FORGET WHAT YOU SAID,
PEOPLE WILL FORGET WHAT YOU DID, BUT
PEOPLE WILL NEVER FORGET
HOW YOU MADE THEM
FEEL.”
– MAYA ANGELOU

22. CUSTOMER SERVICE
NO. 1 PRIORITY
• Free shipping both ways
• 800# on every web page
• 365 day return policy

23. CULTURE!
75% REPEAT CUSTOMERS
NO. 1 PRIORITY

24. • COMMIT!
• HIRE MEASURE & FIRE
• 5 WEEKS OF TRAINING
• $4000 OFFER TO QUIT
HOW IS
CULTURE
#1 PRIORITY?!

25. • EXPECTATIONS
• EMOTIONS
• EXPERIENCE
• STORIES
• CULTURE!
PERSONAL
EMOTIONAL
CONNECTION
CULTURE #1 PRIORITY
• NO SCRIPTS OR CALL TIMES
• CALL ROUTING SYSTEM

26. THE CULTURE
BOOK
THE CULTURE BOOK
COMPLETELY UNEDITED
EXCEPT FOR SPELLING
SNAPSHOT OF CULTURE EVERY YEAR
SHOWS WHATS GOOD & WHAT TO IMPROVE
NOW THE BRAND BOOK TOO
JAPAN AND BRAZIL LOVE ZAPPOS
EVEN THOUGH THEY DON’T SHIP THERE
CULTURE #1 PRIORITY

27. CORE VALUES DEFINE CULTURE
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
GUIDELINES | LIVED & CO-OWNED | MEASURED

28. ZAPPOS CORE VALUES
1. Deliver WOW Through Service
GUIDELINES

29. ZAPPOS CORE VALUES
3. Create FUN and a Little WEIRDNESS
LIVED & CO-OWNED

30. ZAPPOS CORE VALUES
10. Be HUMBLE
MEASURED

31. FOCUS ON CULTURE AND HAPPINESS?
$2B* COMPANY
1999 – TODAY
NOV ‘09 AMAZON ACQUI*RES ZAPPOS
SOLD TO AMAZON FOR $1.2 BILLION**
*GROSS MERCHANDISE SALES **SHARE VALUE AT THE TIME OF CLOSING
ZAPPOS GROWTH

32. 550,000 COPIES SOLD
20 LANGUAGES
#1 BESTSELLER LISTS
NYTIMES
WSJ
AMAZON
BARNES & NOBLE
BORDERS
WHOA.

33. BUS TOUR 2010

35. COMMUNITY
COMPANY
PERSON
100 COUNTRIES!
MOVEMENT > COMPANY!
CHANGE THE WORLD… !
WE HEARD FROM AROUND THE WORLD

36. COMMUNITIES

37. COMPANIES
HAPPIER COMMUNITIES

38. 39% MONTHLY SALES
92% UNPLANNED ABSENCE
!!!!
COMPANIES
250 COMPANIES, 30 COUNTRIES

39. THAT’S GREAT, BUT
IT’LL NEVER WORK
FOR MY COMPANY

40. SCIENCE & LEARNINGS
STORY OF
HOW TO APPLY IT $!$!

41. THINK
ABOUT
YOU
FOR A
SECOND…

42. SUCCESS HAPPINESS
?

43. HAPPINESSSUCCESS

44. Performed better on
anagram tests
SOCIAL LIFE
RELATIONSHIPS
PHYSICAL
HEALTH
WORK SKILLS
CREATIVITY
PROBLEM SOLVING
Predicted marriage
satisfaction 30yr later!
2.5x more likely to
live longer
THE SCIENCE
SUCCESS AND HAPPINESS
LYBOMIRSKY ET AL. 2005,
THE BENEFITS OF POSITIVE EFFECT: DOES HAPPINESS LEAD TO SUCCESS?
ACROSS EVERY DOMAIN MEASURED
2005$META)ANALYSIS$
225!STUDIES!
275K!PPL!
HAPPINESS
LEADS TO
SUCCESS

45. BRONNIE WARE, TOP 5 REGRETS OF DYING
…THE COURAGE TO
EXPRESS MY FEELINGS
…LET MYSELF
BE HAPPIER
…NOT WORKED
SO HARD
I WISH
I HAD…
…THE COURAGE
TO LIVE A LIFE
TRUE TO MYSELF,
NOT THE LIFE
OTHERS
EXPECTED
#1
…STAYED IN TOUCH
WITH FRIENDS
TOP 5 I WISH’ES IN LIFE

46. WHAT WILL YOUR
EULOGY BE?
TOP 5 I WISH’ES IN LIFE

47. BUT ONLY 10%!
HAPPINESS IS PREDETERMINED

48. In our control
Within our control!
UP TO 90% HAPPINESS IS A CHOICE!
SCIENCE OF HAPPINESS
LYBOMIRSKY 2005 & ACHOR 2011

49. BRAINS PROCESS
40 BITS PER SECOND
BUT WE RECEIVE
11M BITS PER SECOND
MIT TECHNOLOGY, 2009
IT’S ABOUT WHAT WE FOCUS ON

50. SEE THE NEGATIVE
FOCUS ON NEGATIVE
[PESSIMISM]
11M BITS >>
SEE BOTH
FOCUS ON POSITIVE
[RATIONAL OPTIMISM]
GOOD
BAD
WEIRD
≠ HAPPY ALL THE TIME!

51. NEGATIVE STATES
NARROW FOCUS
EXTERNAL MOTIVATION
POSITIVE STATES
BROADEN & BUILD
INTERNAL MOTIVATION

52. WE DO OUR BEST
WORK HERE
MORE
CREATIVE!
INNOVATIVE!
COLLABORATIVE!
ADAPTIVE!
PRODUCTIVE!

53. OUR BRAINS CAN BE
REWIRED FOR
HAPPINESS
EVEN WHEN
DEALING WITH
THREATS
CHANGE YOUR MINDSET, CHANGE YOUR WORLD

54. ACHOR, ESCAPING THE CULT OF THE AVERAGE
10000
8000
6000
4000
2000
20 40 60 80 100
HOW DID WE GET THIS WRONG

55. PSYCHOLOGY
1998

56. HAPPINESS

57. 2000, BENYAMINI ET AL, POSITIVE AFFECT AND FUNCTION ON HEALTH
ASSESSED INITIAL
HEALTH & HAPPINESS
2005!STUDY!
850!SENIOR!CITIZENS!
ARE$HAPPY$PEOPLE$HEALTHIER?$
FOLLOWED, REASSESSED
FOR 5 YEARS
BETTER HEALTH
SLOWER DECLINE
MORE ENERGY
OTHER STUDIES
7.5 YRS!

58. MIHÁLY
CSÍKSZENTMIHÁLYI
a!
HAPPINESS FRAMEWORK 1
3 TYPES OF HAPPINESS

59. BASED ON PLEASURE
ADVERSE GENE REACTION
IMMUNE, ANTIVIRAL, INFLAMMATORY
BASED ON PURPOSE
FAVORABLE GENE REACTION
IMMUNE, ANTIVIRAL, INFLAMMATORY
2013 FREDRICKSON FOR UCLA
POP QUIZ!
Can you tell which is happier?

60. EFFECTS OF HAPPINESS ON WORK

61. GREAT PLACE TO WORK/FORTUNE MAGAZINE, 2010
BEST WORK PLACES VS S&P 500

62. SIMPLE FORMULA
HAPPY
EMPLOYEES
HAPPY
CUSTOMERS=
SUCCESSFUL
COMPANY
& MEANINGFUL
LIVES
=

63. SCIENCE & SECRETS
STORY OF
HOW TO APPLY IT $!$!

64. WHAT MAKES HAPPY WORK

65. WHO MAKES HAPPY WORK

66. IS NOT
JUST ABOUT
YOUR VALUES
IT’S ABOUT
AUTHENTICITY
AND ALIGNMENT
VALUES

67. INTEGRITY
COMMUNICATION
RESPECT
EXCELLENCE
VALUES

68. SENSE OF CONTROL
DIFFERENT STROKES FOR DIFFERENT CULTURES

69. SENSE OF CONTROL
THE STRONGER THE CULTURE THE MORE CONTROL

70. PROMOTION
18 Months
PROMOTION
PROMOTION
6 Months
6 Months
6 Months
HELP EMPLOYEES FEEL PROGRESS
SET & CELEBRATING GOALS CREATIVELY
SENSE OF PROGRESS

71. CONNECTEDNESS
ENCOURAGE DEPTH & NUMBER OF CONNECTIONS
1 entrance
PEOPLE WITH A GOOD FRIEND AT WORK ARE 7X MORE ENGAGED

72. CONNECTEDNESS IN DESIGN
Apply
the Science
min Lunch Line?4
Collaborative
Environment

73. LET’S TRY!
“Happiness does not come so much from
within AS it does from between”
– Tony Hsieh
P
E
C
CONNECTEDNESS IS PERSONAL

74. PURPOSE IS ESSENTIAL
IF YOU WANT TO BUILD A SHIP, DON’T DIVIDE THE WORK AND GIVE ORDERS.
INSTEAD, TEACH THEM TO YEARN FOR THE VAST AND ENDLESS SEA.
– SAINT EXUPERY

75. PURPOSE
CONNECT EMPLOYEES TO HIGHER PURPOSE
ARE YOUR EMPLOYEES LAYING BRICKS,
BUILDING A WALL OR BULDING A CATHEDRAL?

76. PURPOSE
CONNECT CUSTOMERS TO HIGHER PURPOSE

77. THE STENGAL 50 OUTPERFORM THE S&P BY 400%
!
PURPOSE = PROFITS

78. WE ARE ALWAYS
EITHER AFFECTING
OR INFECTING
OTHERS
LET’S TRY!
CULTURE TIP
CULTURE IS CONTAGIOUS!

79. Happiness depends on friends and family of your friends and family
20!YR!LONGITUDINAL!STUDY!
SPREAD$OF$HAPPINESS$IN$SOCIAL$NETWORKS$
5K!HEALTHY!MEN!
CULTURE TIP
CULTURE IS CONTAGIOUS!

80. COMMIT TO
BE REAL. BE YOURSELF.
WHEN PEOPLE ARE, THERE’S LESS TO FEAR.
(WHILE SAVING TIME, EFFORT AND ANXIETY)
BUILD TRUST & REAL CONNECTION
EXAMPLES:
VENDOR EXTRANET
TWITTER.ZAPPOS.COM
“ASK ANYTHING”
TOURS & MEDIA VISITS
ZAPPOS INSIGHTS
CULTURE TIP

81. BOTTOM UP TOP DOWN
FIND YOUR CULTURE CHAMPS
CULTURE TIP

82. CULTURE TIP
STORIES SHOW YOUR CULTURE
WHAT ARE YOUR
CULTURE STORIES?

83. WHERE DO I BEGIN?
3 TOOLS

84. HAPPIER COMPANIES

85. HAPPIER COMPANIES

86. CULTURE BY DEFAULT
OR BY DESIGN?
ASK

87. HOW DO YOUR EMPLOYEES FEEL?
HOW DO YOUR CUSTOMERS FEEL?
ASK
EMOTIONAL CURRENCY:
OUR EMOTIONS DETERMINE OUR LEVEL OF
ENGAGEMENT AND MOTIVATION

88. IT’S HARD.
START EARLY.
WHAT ARE YOUR
- COMPANY’S?
- PERSONAL?
DO THEY ALIGN?
HOW ARE YOU
LIVING THEM?
DEFINE YOUR VALUES

89. TOOL FOR YOU
CULTURE BOOK

90. TOOL FOR YOU
HAPPINESS AT WORK SURVEY

91. WHAT ARE YOU MEASURING?
OK
Performance
+/- 60% ROI
GOOD
Performance
+/- 100% ROI
WOW
Performance
+/-120% ROI
Disengaged
Engaged
HAPPY
Engaged With
• Projects & Tasks
• People
• Purpose
Loyalty
Emotional Investment
Long Term
Motivation
Meaningful
Connections
Talent Retention
Engaged With
Projects/Tasks
Reliability
Short Term
Motivation
Enough To Retain?
Communication
Get Job Done

92. TOOL FOR YOU

93. SUNNY@DELIVERINGHAPPINESS.COM
FACEBOOK | DELIVERINGHAPPINESS
TWITTER | @DHMOVEMENT
HOW CAN WE HELP?
!
!
!

94. Work
__
HAPPY
EMPLOYEES
HAPPY
CUSTOMERS=
SUCCESSFUL
COMPANY
& MEANINGFUL LIVES
=
TIPPING POINT

95. HOW WILL
YOU CHANGE
I WISH TO I LIVED?
ASK YOURSELF
WHAT IS
ONE THING
YOU WILL DO?

96. IMAGINE…

97. …THEN DO.
CREATE CHANGE IN THE WORLD
MORE THAN WE EVER THOUGHT POSSIBLE…
WITH HAPPINESS!
THANK YOU!

98. SUNNY@DELIVERINGHAPPINESS.COM
JOIN THE MOVEMENT!
DELIVERINGHAPPINESS.COM

99. SUNNY@DELIVERINGHAPPINESS.COM
JOIN THE MOVEMENT!
DELIVERINGHAPPINESS.COM