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Home / Steve’s Blog / Culture, Fun, and Business Growth

Culture, Fun, and Business Growth

April 5, 2010 by Steve Laswell

How does culture affect results?

At the end of 2009, Amazon.com bought Zappos for a deal valued at $1.2 billion.

Haven’t heard of them?  Zappos is an online shoe and accessory retailer that surpassed $1 billion in gross sales in 2008, two years ahead of projections.

As I read Brenna Fisher’s interviewwith CEO, Tony Hsieh, I discovered four concepts or keys to success for any company, department or small business.  Here’s my take on Zappos story and business…

1.    Freedom to Perform

Regarding the sale of his company, Hsieh indicates that it was more like a having a new board of directors. 

“They are leaving us alone and independent, [Amazon] recognizes that it’s our culture that’s gotten us this far, and they want to make sure to protect it.”

2.    Work as Lifestyle

Zappos is dedicated to their company culture, which includes creating fun and delivering wowthrough customer service every day.  Zappos culture will not work everywhere, but the goal will.  As Hsieh says, the desired outcome is

“…to unite employees and create a friends-and-family atmosphere.  For us, being a part of Zappos is just a lifestyle…not because people are being forced to work crazy hours. It’s just because people want to hang out with each other and people are passionate about their company.” 

3.    Humility

Zappos earned the No. 23 slot in Fortune’s2009 best 100 companies to work for list.  One of their core values, “be humble” shows up as Tony Hirsh, CEO gives credit to the entire Zappos family.

4.    Happiness, Culture, Bottom line

Bringing it together, Hsieh seems to see the human side of business better than most.

“Hsieh says putting too much emphasis on the bottom line is a mistake and motivating employees purely through bonuses is a lazy way to manage. Especially when research indicates that good boss-employee relationships, opportunity, and friends all rank higher than money on the list of what is important to employees in the workplace.”

“All the research is already out there,” Hsieh says.  “It’s just that no one bothers to pay attention to it because it’s much easier to not think about that type of stuff.”

“The thing we realized this year that sort of ties everything together is that customer service is about making customers happy, and the culture is about making employees happy.  So, really, we’re about trying to deliver happiness, whether it’s to customers or employees, and we apply that same philosophy to vendors as well.”

Personal Reflection 

Which of these four commitments makes sense for your culture?

1.    Freedom to Perform

How well does your culture and management style support freedom to perform?

What “policies” might get in the way of doing business?

2.    Work as Lifestyle

How much fun do you have at work?

How are healthy work friendships encouraged…do people want to “hang out with each other”?

3.    Humility

How well do you give credit to others for your success stories?

4.    Happiness, Culture, Bottom line

Where could you improve your recognition of the “human part” of human capital?

  

Please feel free to enter the discussion by posting your thoughts.

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Tags: Bottom Line, Business Growth, Control, Culture, Employee Engagement, Humility, Meaningful work, Tony Hsieh, Ultimate Productivity, ZapposThis entry was posted on April 5, 2010 at 12:45 am and is filed under: Leadership Development, Management, Performance Improvement, Personal Success, Productivity, Results, Success

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