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Sacramento Area Human Resources Association January 23, 2013 James Key Lim

Zappos.com

PEOPLE WILL FORGET WHAT YOU SAID, PEOPLE WILL FORGET WHAT YOU DID, BUT PEOPLE WILL NEVER FORGET HOW YOU MADE THEM

FEEL

MAYA ANGELOU

Customer service
Free shipping both ways. 365 day return policy. 800 on every page.

Culture

What does Zappos culture look like?

Culture is #1 priority

4 week training. $4000 offer to quit. Zappos culture book. Be weird (be you)

How culture DEFINED: Core Values


Zappos 10 Core Values
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Deliver WOW thru service Embrace and drive change Create fun and a little weirdness Be adventurous, creative, and open-minded Pursue growth and learning Build open and honest relationships with communication Build a positive team and family spirit Do more with less Be passionate and determined Be humble

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How culture is LIVED: Walk the talk

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Living Culture Example: Be Humble

$0 to $2 Billion*
using happiness as a business model

$1,000

800

Acquired by Amazon

Gross Sales $MM

600

400

200

00

01

02

03

04

05

06

07

08

* Gross merchandise sales

2010 Delivering Happiness the book

Best seller: NYTimes, WSJ, Amazon. Now 20+ languages

Delivering Happiness the bus tour

Delivering Happiness: the movement

The world continues to reply. Unified by happiness. 100K community 3000 cities. 110 countries.

Delivering Happiness: the company

Before
Money cant buy happiness but it can buy marshmallows.
Which are kind of the same thing.

Now

Now:

Academic studies Scientific research 1000s of Fortune 500 execs

Now

So

What can this mean for YOU?

Did you snooze today?


Why?

Do you feel a sense of passion? Purpose? Are you happy? Be honest

(Life) Fast Foward: Top 5 regrets in life


1. I wish I had the courage to live a life true to myself, not the life others expected of me 2. I wish I hadnt worked so hard 3. I wish Id had the courage to express my feelings 4. I wish I had stayed in touch with my friends 5. I wish that I had let myself be happier

Happiness is a choice
Didnt realize happiness choice until too late Pretend contentment to self and others Sciences says, we can predict your happiness

but ONLY 10%

Happiness is a choice
90% of happiness based on how your brain processes happiness Brain can only focus on so much Change mindset and change your world

What is your goal in life?

Were all taking different path in pursuit of same goal: Happiness

BUT science shows

We are SUPER BAD at predicting our own happiness :(

When I get ____ , I will be happy

Maslows Hierarchy

3 types of happiness: Why lottery wont help you

For lasting happiness

Live with PURPOSE and PASSION sprinkle in pleasure

So

What can this mean for YOUR COMPANY?

SURVIVE

Top down is dead


Wrong culture > unhappy people
Hierarchical top down Mass production model from 1950s

Let me tell you Youre lucky to have a job

Top down is dead


This isnt just about Arab spring. This is about corporate spring.

Marc Benioff, CEO of Salesforce.com

Top 5 Company Challenges


1. 2. 3. 4. 5. Employee attract and retain Customers attract and retain Increase accountability and results Reputation, trust and transparency Survival and growth in uncertain economy

80% unhappy at work

* Deloitte Shift Index 2010

Gallop 20XX

$350B in losses :(

Gallup 2011

We need new thinking

The right culture = life raft


Right culture > happy people
People focused Transparency Collaboration

Let me ASK you


(vs. Let me tell you)

Youre lucky to have ME


(vs. Youre lucky to have a job)

Right culture
win in a world of relentless change, ferocious competition, and unstoppable innovation Gary Hamel

and..

THRIVE

Thrive
Happiness is the single greatest competitive advantage in the modern economy

Shawn Achor

Happiness DECREASES
Absenteeism Turnover Theft Stress Sickness Death

Happiness INCREASES
Profits Sales Productivity Employee loyalty Customer loyalty Safety

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Happiness ROI
37% more sales 31% more productivity 300% more creativity

Loyalty and Profits Examples


Employees
87% less likely to leave their companies

Customers
2x the customer loyalty
(repeat purchases, recommendations to friends)

Profits
2x annual net income 16% higher profit margin

Forbes online Sept. 4, 2012 Why Employee Engagement? (These 28 Research Studies Prove the Benefits) 52

Employee Engagement Example


< 70%
24% total shareholder return (TSR)

< 60%
9% TSR

< 25%
Negative TSR

Forbes online Sept. 4, 2012 Why Employee Engagement? (These 28 Research Studies Prove the Benefits)

Thrive
Over 10 year period
Out performed S&P500 by 8:1 ratio Outperformed Good to Great companies by up to 3:1

Thriving companies
Amazon BMW CarMax Caterpillar Commerce Bank Container Store Costco eBay Google Harley-Davidson Honda IDEO IKEA JetBlue Johnson and Johnson Jordans Furniture LL Bean New Balance Patagonia REI Southwest Starbucks Timberland Toyota Trader Joes UPS Wegmans Whole Foods Zappos

How?

Get the culture right then everything else will fall into place

(Note to self)

You already have a culture


Have you met it lately?

But its NOT this

(Secret) Ingredients for a culture of happiness: 1. Core values 2. Science of happiness 3. Higher purpose

(Secret) Ingredient #1: Core Values


Defines your culture
Ground rules for behaviors Everyones business

Example: Core Values


1. Deliver WOW thru service
2. 3. 4. 5. 6. Embrace and drive change Create fun and a little weirdness Be adventurous, creative, and open-minded Pursue growth and learning 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

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Example: Ground rules for behaviors

(Secret) Ingredient #2: Science of happiness (3 elements)


1. Connectedness
2. Sense of control 3. Sense of progress

Example: Science of Happiness:

1. Connectedness
Single entry 10-20% Face game

Example: Science of Happiness:

2. Control
Office desk Send flowers to customers / bonus to employees Merit badges

Example: Science of Happiness:

3. Progress
Giving library Pipeline training Become a buyer in 18 months

(Secret) Ingredient #3: Purpose

Meaning beyond self and $$$ Not just a job, a calling

Example: Meaning beyond self and $$$


1999 selection of shoes 2003 customer service 2005 culture and core values 2007 personal emotional connection 2009 Delivering Happiness

Re-cap: (Secret) Ingredients for a culture of happiness 1. Core values 2. Science of happiness 3. Higher purpose

Culture building tips


Be human
Trust Real-time, honest communication Reward and reveal Celebrate sub-cultures

Big Tip: Focus on Managers

People join companies and leave managers Managers can amplify your culture

Pitfalls on culture
Be committed
2 way street Intent vs. Impact Management vs. leadership Short-term thinking

Solutions to Pitfalls
Ask Measure Evolve

What next?

STOP hitting snooze

START small daily actions towards BIG IMPACT

SURVIVE

AND THRIVE

Start today
(re)DEFINE
Ingredients to your culture of happiness

LIVE
Daily behaviors and decision from core values

EVOLVE
Evolve your culture of happiness

FREE Tools
Happiness ROI calculator Happiness at work survey

Zappos culture book

Contact me

james@deliveringhappiness.com

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