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T h e p o w e r of



happiness
          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 what
makes 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 accurately
remember what makes
us happy.
Aaker, Drolet and Griffin (2008)
When we do achieve
’happiness,’ it fades. We
adjust 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 shifts
across 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 PROMISE
pursuit
          Conquer the world
THE PROMISE
balance
          Work+family+health
THE PROMISE
impact
         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 compass


D 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 generally
the 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 and
the 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 of
Impact                                             control


         People                       Loneliness
Companies resemble their leaders

    Higher      Autonomy      People      Impact
   Purpose




John 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   HAPPINESS


PERFORMANCE
Create surprising moments of
         authentic happiness.
How are you creating
small 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 customer
integral to the story.
Brands too often make the
mistake of trying to be the hero.

                                    Photo: Bethan
The customer is
                                                  the hero.

DESIGNING HAPPINES   |   ™ JENNIFER AAKER
Don’t manufacture
your 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 of
growth 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 your
signature stories?
What stories reveal
suffering 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 makes
them happy (although they think they do).


Rather than trying to get happy or be
happier, could we rethink happiness?
BOOKS


Annette Simmons                           Julie Fuoti & Lisa Johnson
                     Jennifer Aaker and
                     Andy Smith




                     Nancy Duarte         Robert McKee
Jack Maguire




                     Nancy Duarte         Chip & Dan Heath
  John Walsh




                                           Jonathan Harris &
                                           Sep Kamvar
                     Andy Goodman
 Stephen Denning
HOW TO TELL A



 Thank you
WORKBOOK

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The Power of Happiness

  • 1. T h e p o w e r of happiness Jennifer Aaker Stanford Graduate School of Business @aaker
  • 3. 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)
  • 4. Happy customers are more loyal. They pay more for a great experience. They talk about their brands.
  • 6. We think we know what makes us happy. (But we don’t really).
  • 7. 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.
  • 8. We don’t accurately remember what makes us happy.
  • 9. Aaker, Drolet and Griffin (2008)
  • 10. When we do achieve ’happiness,’ it fades. We adjust surprisingly quickly.
  • 11.
  • 12. 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.
  • 13. 1 DESIGN FOR FLEXIBLITY The meaning of happiness shifts over the life course.
  • 14. People often assume that happiness is one thing.
  • 15. But the meaning of happiness shifts across the life course.
  • 16. DESIGNING HAPPINESS | © JENNIFER AAKER
  • 17. Harris and Kamvar; WeFeelFine (2010)
  • 18. When our meaning of happiness shifts, we begin to search for different things.
  • 19. discovery THE PROMISE Excitement
  • 20.
  • 21. THE PROMISE pursuit Conquer the world
  • 22.
  • 23. THE PROMISE balance Work+family+health
  • 24.
  • 25. THE PROMISE impact Significance
  • 26.
  • 27. As a brand, what type of happiness are you cultivating?
  • 28. As a company, are you designing environments where your employees can shift as their meaning of happiness shifts?
  • 29. 2 DESIGN FOR MEANINGFULNESS It is a better compass D E DESIGNING HAPPINESS E S SJENNIFER AAKER © J E N N I F E R A A K E R SIGNING HAPPIN | © /
  • 30. Happiness is not achieved by conscious pursuit; it is generally the by product of other activities. ALDOUS HUXLEY Brave New World
  • 31. What is meaningfulness? Lasting Important Awe-evoking Often intimidating
  • 32. How does that work within companies?
  • 33. Higher Purpose Achieved when you feel a part of something bigger than yourself and the shared goal matters significantly.
  • 34. 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.
  • 35. Drivers Kryptonites Higher Confusion Purpose Autonomy Fear Lack of Impact control People Loneliness
  • 36. Companies resemble their leaders Higher Autonomy People Impact Purpose John Mackey Larry Page Tony Hsieh Steve Jobs WHOLE FOODS GOOGLE ZAPPOS APPLE
  • 37. Happiness without meaning is fleeting. Aim for meaningfulness.
  • 38. 3 DESIGN FOR MOMENTS Small moments matter more than we think.
  • 39.
  • 40. “I am happy when we have family movie night.” Devon Smith
  • 41. 3 1 Frederickson (2009)
  • 42. EXPECTATIONS GAP HAPPINESS PERFORMANCE
  • 43. Create surprising moments of authentic happiness.
  • 44.
  • 45.
  • 46.
  • 47. How are you creating small moments of delight?
  • 48. 4 DESIGN FOR STORIES The stories we tell ourselves affect the happiness we feel.
  • 49. Studies show that a person with an incoherent story is more likely to experience depression Crossley (2000)
  • 50. Is it the same for corporations? Photo: Hector Garcia
  • 51. So how do we cultivate a coherent story?
  • 53. Your past stories. Photo: Jose Valiente
  • 54. Your present stories. Photo: Fatma M.
  • 55. Your future stories. Photo: Daniel Silviera
  • 56. What is the throughline.
  • 57.
  • 59. Brands too often make the mistake of trying to be the hero. Photo: Bethan
  • 60. The customer is the hero. DESIGNING HAPPINES | ™ JENNIFER AAKER
  • 61.
  • 63. When you share the story, you need to feel authentic. People can tell when you aren’t. Photo: Xevi V.
  • 64.
  • 65. 3 DESIGN FOR MOMENTS Employeesmatter. believe Simple things must (and be inspired by) the story.
  • 66.
  • 67. Brands often feel manufactured. People do not. Protagonists make a story relatable
  • 68.
  • 69. There will be a time when you need a new story.
  • 71. Use stories. They are engines of growth and innovation.
  • 72. Stories help customers make the jump to where you’re going.
  • 73.
  • 74.
  • 75. A good story is like a roller coaster.
  • 76.
  • 77.
  • 78.
  • 79. Bank your stories They are assets.
  • 81. What stories reveal suffering and transformation?
  • 82. What stories are a part of something larger?
  • 84. We think we can attain happiness. And often ask, how can I get happier? But people don’t know what really makes them happy (although they think they do). Rather than trying to get happy or be happier, could we rethink happiness?
  • 85. BOOKS Annette Simmons Julie Fuoti & Lisa Johnson Jennifer Aaker and Andy Smith Nancy Duarte Robert McKee Jack Maguire Nancy Duarte Chip & Dan Heath John Walsh Jonathan Harris & Sep Kamvar Andy Goodman Stephen Denning
  • 86. HOW TO TELL A Thank you WORKBOOK