Maggie Hsu of Zappos.com speaks about Worksite Wellness at the National Wellness Institute's annual conference in St. Paul, Minnesota

1. Maggie Hsu
National Wellness Institute, Worksite Academy
June 2016

2. Holacracy
Case Study: Zappos.com
Case Study: Downtown
Project
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3. 3

4. Acquired by Amazon in 2009 for $1.2BN
Online shoe retailer founded in 1999
1,500 employees
CEO Tony Hsieh
Culture & 10 core values
Longest recorded call was over 10 hours

6. What are your company’s strategy
statements?
Zappos prioritizes employee health
(mental and physical) OVER bottom-
line cost
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STRATEGY
STATEMENT

7. Wellness
Director
Life
Coaches
Charity/CSR
Director
Sustainability
Director
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8. 8
WELLNESS
• Nevada is ranked 47th in health among all states in
the US – this ranking is comprised of:
• Health risks: includes binge drinking, smoking,
and physical activity
• Health outcomes: stroke, high blood pressure,
and diabetes
• Community conditions: includes high school
graduation rates, violent crime, and teen birth
rate
Monnat, Shannon M. 2012. “Disease Prevalence and Behavioral Risk in Nevada.” In The Social Health of Nevada: Leading Indicators and Quality of Life in the Silver
State, edited by Dmitri N. Shalin. Las Vegas, NV: UNLV Center for Democratic Culture

9. • On-site gym
• On-site fitness and health classes
• Financial literacy classes
• Pay for employees to enter races
• Pay for on-site Weight Watchers
• On-site dental cleanings
• Free smoking cessation classes
• Nap rooms
• Exercise/activity rewards
• Desk treadmills
• On-site massages
WELLNESS
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10. VIDEO – ZOO
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COMMUNITY/CSR

11. SUSTAINABILIT
Y
• HQ is LEED Gold
• Employee bike share
• Worked with city to improve bus routes
• Added preferred parking for Low Emitting vehicles; installed
electric car charging stations
COMMUNITY | ENERGY | WATER |
MATERIALS | RECYCLING | WELLNESS 11

12. LIFE COACHING
• Goals Department founded
in 2004
• Resource for employees to
set and achieve 30-day
goals (personal or
professional)
• Two most common are
weight loss and confidence
building
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13. University
• “Sharing the Zappos culture with the
world”
• Tours of Zappos headquarters
• Week-long training for other
organizations
• Internal training covering everything
from conflict resolution to creativity to
mentorship
ADDITIONAL
OFFERINGS
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14. 14
WHAT NEXT?

17. Holacracy

18. Sam
Brand Partnerships
Director
Graphic DesignEmployee
Engagement

19. Obligation to Sense “Tensions”
Office snack
selection
Diversity Initiative
Process
improvement
Volunteer
opportunities
Collaboration tool
New business
line

21. Antoinette
(4 years)
Tech
Emotional
Intelligence
Tech Holacracy
Call Center
Leadership
Development
Holacracy

22. 500+ circles
4 circles per
person
8 roles per
person

23. 260
Employees
(18%)

24. Innovation
Across Company

25. Decision
Transparency

26. Rigid
hierarchy
100%
time in
primary
role
Soft
hierarchy
50% time
in primary
role
No
hierarchy
10% time
in primary
role
Self-Management Spectrum

27. • Tolerance for ambiguity
• Self-motivation
Key attributes - people
TAKEAWAYS
Key attributes - organization
• Open and honest
communication
• Trust
• Understanding of
purpose

28. © inoldlasvegas.com
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29. © David Becker
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30. FREMONT EAST
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31. TONY HSIEH
1996-1998: LinkExchange (online
advertising) Sold to Microsoft for $265
million
1999: Venture Frogs (investment fund) -
Invested in Zappos
1999-Today: Zappos
2009: Amazon acquires Zappos for $1.2
billion
2010: NYT bestseller Delivering Happiness
published

32. LAS VEGAS CITY HALL
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33. $350 MILLION INVESTMENT
$200M – Real Estate
$50M – Small Businesses
$50M – Tech Startups
$50M – Education, Arts, Culture
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34. ROI vs. ROC & ROL
Instead of maximizing short-term ROI
(Return On Investment)...
We focus on maximizing long-term ROC
(Return on Collisions)
and sustaining ROL
(Return On Luck) – Accelerating Serendipity
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35. VIDEO – DTP
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36. CONTAINER PARK
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37. SMALL BUSINESS
50+ COMPANIES 37

38. MEDICAL CLINIC
38

39. 9TH BRIDGE SCHOOL
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40. LIFE IS BEAUTIFUL
100,000 PEOPLE 40

41. DOWNTOWN RANGERS
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42. Crime reports within DTP footprint
Annual change (%)
2012-2014
Sexual Assault -48%
Robbery -33%
Burglary -35%
Assault & Battery -16%
Disorder CFS -16%
Larceny Theft -7%
Homicide 0%
Auto Theft 2%
-16%
Source: Las Vegas Metro Police Department
CRIME
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43. EAT
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44. VIDEO – EAT
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45. Ecosystem approach
Catalyst for community initiatives
TAKEAWAYS
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46. “Research shows that every
time the size of a city doubles,
innovation or productivity per
residence increases by 15
percent. But when companies
get bigger, innovation or
productivity per employee goes
down. So we’re trying to figure
out how to structure Zappos
more like a city, and less like a
bureaucratic corporation. In a
city, people and businesses are
self-organizing.”
Tony Hsieh, CEO Zappos.com

47. THANK YOU
Mhsu@Zappos.com
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