Exploring Leadership

Tony Hsieh CEO of Zappos

EMOD Class of 2014
Dr. Jane Wheeler
Leading for Organizational Success
Residency Weekend March 22-24, 2013

Overview
1
Vision
Truths
Core
Values
Leadership
Style
Vision
1
Tony Hsieh
1
Entrepreneurial
Spirit
Learning From
Mistakes
Building
Relationships
Milestones In Tonys Life
1
First they ignore you. Then they
laugh at you. Then they attack you.
Then you win. - Gandhi
Childhood Dreams
Entrepreneurial
Spirit

Growing Up
High Expectations
Finding a balance
Creative thinking
Business Ventures
Garage sales, paper route, and & selling ads
Button-making business
Broad Exposure
Computer programming, music, fencing, chess
club, theatre, movie society, & Guardian Angels
Learning From Mistakes
I failed my way
to success.
Thomas
Edison
Business
Strategies
Learn What
You Dont Want
to Do
Continuous Learning
The Value of Building Relationships
Computer
Programming
Lunch Club
Crowd-
Sourcing
Sanjay &
Alfred
WOW
What is a Strategic Vision?
Provides the purpose and direction
for cultural change.
It serves as a yardstick for defining the firms
existing culture and for deciding whether
proposed changes are consistent with the
core values of the organization.
(Bowditch, Buono, & Stewart, 2008)

Not all Visions are Created Equal
Starbucks
-"To share great coffee with our friends and
help make the world a little better.
JC Penney
-"To be America's shopping destination for
discovering great styles at compelling prices."
Apple
No vision statement
Has a defined missions statement
Leadership
Theory
Organization
Values
Organizational Values

the nature of social relations
among members of a work group,
and between employees and their
supervisor, [is] n influential motivator
of work performance.

(Bowditch, Buono & Stewart, p. 13,
2008)
(Bowditch, Buono & Stewart, p. 13, 2008)
Human Relations School
For a company, they Define
Who we are
What we believe
Where were going
How well get there
The business model, a company that delivers, the history
Values, beliefs and commitments
Purpose and vision for the future
Mission, strategies, tactics, individual accountability
The business model, a company that delivers, the history
Values, beliefs and commitments
Why Values are Important

Values
Beliefs
Thinking
Behavior
Organizations
Individuals
Values Drive Behavior
Zappos 10
Core Values
Zappos Virtual Tour
10. Be Humble
Golden Rule
Celebrate Individual & Team Success
Challenges Lie Ahead, Dont be Arrogant

Its more fun to talk with someone who doesnt use long
difficult words but rather short easy words like What
about lunch?
Winnie-the-Pooh
9. Be Passionate and Determined
Perseverance
Sense of Urgency
Dont take Thatll Never Work for an answer
A Positive Optimistic Attitude Inspires Others



"The only way to do great work is to love the work you
do." -Steve Jobs
8. Do More With Less
Efficiency Operational Excellence
Make Incremental Improvements
Mistakes are Learning Opportunities


"Life is 10% what happens to you and 90% how you
react to it." -Charles Swindoll

7. Build Positive Team & Family Spirit
The Best Leaders lead by Example
Some of the Best Ideas come from interactions outside
of work
The Best Ideas Come from the Bottom Up


"Individuals play the game, but teams beat the odds." -
SEAL Team Saying
6. Build Open & Honest
Relationships with Communication

Be Authentic
Value Strong Relationships in All Areas
With Trust You Accomplish More

"When people talk, listen completely. Most people
never listen." - Ernest Hemingway
5. Pursue Growth and Learning
Challenge
Yourself

Unlock
Potential
Education
Start Over
4. Be Adventurous, Creative and Open Minded
YOU
Status Quo
Complacency
3. Create Fun and a Little Weirdness


We Function Best When We Can Be Ourselves
2. Embrace and Drive Change
How do I Plan and Prepare for Change???
1. Deliver WOW Through Service
Fundamental Truths
Core Values
Unique to
Zappos
Part of
Everyday
Language
A Way of
Thinking
Guide to
Make
Decisions

Fundamental Truths
Customer Loyalty
What is the fundamental
truth?
Customer Service
What is the "Necessity" of
the organization to survive?

Fundamental Truths
Happy Employees = Happy Customer
Customer Service - Not just a
department
Provide 24/7/365 Customer Service and
Warehouse operations
In addition to great service, develop a
strong, culture and development for
employees

Fundamental Truths
Happy Employees =
Happy Customers
Happy Vendors
= Happy
Customers

Treating vendors like customers is not the norm. but its important at Zappos
Fundamental Truths
"WOW" with Customer Service
Invested into customer service, not
marketing
Word of mouth
Repeat customers

Fundamental Truths
"Where the magic
happens"
San Francisco - prior to
2004
Las Vegas - 2004-Current
Warehouse
Shepherdsville, Kentucky

Fundamental Truths
Created a culture book
Transparent organization
Family community
Company photos when logging on a computer
Conduct regular employee surveys
Interview process

Fundamental Truths
Employee Training &
Development


Fundamental Truths

Rachael Ray Calls Zappos
Transformative Leadership
Visionary, inspirational figures who are consumed with
specific ideals and goals and able to engender intense
emotions in their followers
Bowditch, Buono, & Stewart p. 237
Life is like a box of chocolates.
You never know what youre gonna get
~Forrest Gump
7 Characteristics of Transformational Leadership
Identification as a change agent
Courage and outspokeness
Belief in people
Value-driven
Lifelong learning
Ability to deal with complexity, ambiguity, and uncertainty
Visionary

REFLECTION
Reflection Questions
Did anyone elses selection of characteristics surprise
you?
Was there one or two characteristics that stood out in
our cohort and why?
Did you find anything surprising about the aspect of
transformative leader you selected?
Potential Traps
Group Think
Risky Shift
LMX
Affective Commitment
Illusion of Unamity
Applying Transformative Leadership
Key Learnings

Feedback Working as a Group
Communication is Key
Gain Other Points of View & Experiences
Splitting into Subgroup for Coordination
Takes More Time Coordinating
Trust is Needed but Difficult
Uncomfortable
Utilize Technology Google Hangout
Things We Would Change
An Overall Project Manager
Need an Agenda for Meetings
Determine Communication Methods Early
Find a Way to Communicate Together
Need to be Open to Other Opinions
Give Everyone a Chance to Speak
Conclusion
1
Vision
Truths
Core
Values
Leadership
Style
Works Cited


Bowditch, J. L., Buono, A.F., & Stewart, M.M. (2007). A Primer on Organizational
Behavior. (7
th
. Ed.) Hoboken, NJ: John Wiley & Sons, Inc.

Cummings, T. G. (2009). Organizational Development & Change. Mason, OH: South-
Western, Cengage Learning.

Hsieh, T. (2010) Delivering Happiness: A Path to Profit, Passion, and Purpose. New
York, NY: Business Plus.

http://about.zappos.com/

http://www.youtube.com/watch?v=td-nVat6cLY