PPAI 2014 - Tony Hsieh - Downtown Project - Zappos_1.15.14

ZAPPOS.COM

DELIVERING HAPPINESS

DOWNTOWN PROJECT

http://upload.wikimedia.org/wikipedia/en/e/e7/Pizza_1_bg_032204.jpg

A BIT ABOUT ME (TONY)1994-1995: Pizza business in college



1996-1998: LinkExchange (online advertising) Sold to Microsoft for $265 million




1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.





1999-Today: Zappos.com, Inc.






2009: Amazon acquires Zappos for $1.2 billion






2009: Amazon acquires Zappos for $1.2 billion

2010: NYT bestseller Delivering Happiness published


The Power of WOW

‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08

Gro

ss S

ale

s $M

M

$1,000

800

600

400

200

CUSTOMER EXPERIENCE

What do customers expect?

What do customers actually experience?

What emotions do customers feel?

What stories do they tell their friends?

How can culture create more stories and memories?

THE #1 PRIORITY

CULTURETHE #1 PRIORITY

CULTURETHE #1 PRIORITY

Hiring for culture

4 weeks of training

$4000 offer

Culture Book

CLOTHING, CUSTOMER SERVICE, CULTURE

CULTURE

CUSTOMER EXPERIENCE

CLOTHING

CLOTHING

CUSTOMERSERVICE

CULTURE

CLOTHING, CUSTOMER SERVICE, CULTURE

CULTURE

CUSTOMER EXPERIENCE

CLOTHING

DELIVERING HAPPINESSCUSTOMERS & EMPLOYEES

“People will forget what you said. People will forget what you did.

But people will never forget how you made them feel.”

-MAYA ANGELOU

BUILDING GREAT

INGREDIENT #1

Don’t make your core values just a meaningless plaque on the

wall…

CULTURECOMMITABLE CORE

VALUES

EXAMPLE: CORE VALUES1. Deliver WOW Through Service

2. Embrace and Drive Change

3. Create Fun and a Little Weirdness

4. Be Adventurous, Creative, and Open-Minded

5. Pursue Growth and Learning

6. 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

“Be real and you have nothing to fear”

Your culture is your brandDon’t try to be someone you are

notParades at Zappos…

COMMITTO TRANSPARENCY

“That’s great…

“That’s great…

but it would never work at my

company…”

ALIGNMENTIt doesn’t matter what your core

values are…as long as you commit to them.

INGREDIENT #2

VISION“Whatever you’re thinking, think

bigger.”Does the vision have meaning?

Chase the vision, not the money…

Sean Combs aka “Puff Daddy” to rapper Biggie Smalls aka “Notorious B.I.G.” in Notorious

“Don’t chase the paper, chase the dream.”

ENTREPRENEURS

“What would you be passionate about doing for 10 years even if you never made a dime?”

EMPLOYEES

What’s the larger vision and greater purpose in

their work beyond money or profits?

MOTIVATION

MOTIVATIONVS

MOTIVATION

INSPIRATION

VS

VISION & CULTURE

PASSION & PURPOSE

INSPIRE

EVOLVINGVISION & BRAND AT

ZAPPOS.COM1999 Selection

2003 Customer Service

2005 Culture and core values as our platform

2007 Personal Emotional Connection

2009 Delivering Happiness

QUESTIONSVISION & BRAND AT

ZAPPOS.COMWhere does the story begin?

Where does the story end?

How do you reinforce the good memories?

What were the emotions, positive and negative?

How can you create more stories and memories?

WHAT’S YOUR BUSINESS

You’re not in the _______ business.

Cirque du Soleil is not in the circus business.

You’re in the experience and emotions business.

You’re in the stories and memories business.

Think bigger.

Clothing

Customer Service

Company Culture

“a great brand is… ______”

WHAT’S NEXTDELIVERING HAPPINESS

ZAPPOS.COM

http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg

LAS VEGAS CITY HALL

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

LAS VEGAS CITY HALL

APPLE

http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg

NIKE

http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg

GOOGLE

http://static.panoramio.com/photos/original/400729.jpg

DOGGY DAY CARE

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

NYU CAMPUS

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg

DOWNTOWN VEGASFREMONT EAST


http://www.lucyvegas.com/sites/default/files/griffin5.jpg

http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg



WHAT’S NEXT?

Clothing

Customer Service

Company Culture


WHAT’S NEXT?

Clothing

Customer Service

Company Culture

Community

DOWNTOWN PROJECT

COLLISIONSCO-LEARNING

CONNECTEDNESS

DOWNTOWN PROJECT

$350M

$50M – Small businesses

$50M – Tech Startups

$50M – Education, Arts, Culture

$200M – Real Estate

DOWNTOWN PROJECT

GOALS

DOWNTOWN PROJECT

GOALS

• Live/Work/Play – Walking

Distance

DOWNTOWN PROJECT

GOALS


Distance

• The Most Community-Focused

Large City in the World

DOWNTOWN PROJECT

GOALS


Distance

• The Most Community-Focused

Large City in the World

• The Co-Learning and Co-

working Capital of the World

ROC

ROIVS

Instead of maximizing short-term ROI (Return On Investment)…

ROC

ROIVS


We focus on maximizing long-term ROC

ROC

ROIVS


We focus on maximizing long-term ROC (Return On Community)

ROC & ROL

ROIVS



and institutionalizing ROL

ROC & ROL



and institutionalizing ROL(Return On Luck) – Accelerating Serendipity

ROIVS

AcceleratingCollisions, Co-Learning, and

Connectedness

THE BIG BET

AcceleratingCollisions, Co-Learning, and

Connectedness

…will lead to…

Happiness, Luckiness, Innovation, and Productivity

THE BIG BET

DOWNTOWN PROJECT

$350M

$50M – Small businesses

$50M – Tech Startups

$50M – Education, Arts, Culture

$200M – Real Estate

$50M SMALL BUSINESS

$50M SMALL BUSINESS

Criteria

$50M SMALL BUSINESS

CriteriaOwner Operated - Passionate

$50M SMALL BUSINESS

CriteriaOwner Operated - PassionateHelps Build Community

$50M SMALL BUSINESS

CriteriaOwner Operated - PassionateHelps Build CommunityExecution Ability

$50M SMALL BUSINESS

CriteriaOwner Operated - PassionateHelps Build CommunityExecution AbilitySustainable

$50M SMALL BUSINESS

CriteriaOwner Operated - PassionateHelps Build CommunityExecution AbilitySustainableUnique or First or Best at Something

$50M SMALL BUSINESS

CriteriaOwner Operated - PassionateHelps Build CommunityExecution AbilitySustainableUnique or First or Best at SomethingStory-worthy

NATALIE

CHECK CASHING

SHIPPING CONTAINERS

CONTAINER PARK

MEDICAL CLINIC

$50M TECH STARTUPS

$50M TECH STARTUPS

https://twitter.com/VegasKramer/status/330833896574951424/photo/1

$50M TECH STARTUPS

PROJECT 100

COWORKING

https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=523b8f7211d2d802c3ba1d40

COWORKING

https://foursquare.com/v/work-in-progress/4c77e2499f51a0935f6cb627/photos?openPhotoId=5196bb0f498eb4bdee4082f1

LEARNING VILLAGE

LEARNING VILLAGE

https://foursquare.com/v/learning-village/51c4ebf5454a6e38af8a9e85/photos?openPhotoId=51e08991498efac3d12b7387

http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7-VVqSMlA#vPAm4TwFWc3kw_lM9NJzfQ

GOLD SPIKE (FORMER CASINO)

http://www.yelp.com/biz_photos/gold-spike-hotel-and-casino-las-vegas?select=Zh7ycSGy8xycR7-VVqSMlA#uSzsFfdBhPok_sfEpJk-7Q

GOLD SPIKE (FORMER CASINO)

GOLD SPIKE COWORKING LOUNGE

https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=51f18e5d498eb74dd6fc3edf


https://foursquare.com/v/gold-spike/4bd1a8b65e0cce72c9cba184/photos?openPhotoId=52099aef11d226362f7930d9


CITY AS A STARTUP

http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png

CITY AS A STARTUP

http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg

CITY AS A STARTUP

$50M EDUCATION, ARTS, CULTURE

http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg


http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png


http://photos.lasvegassun.com/media/img/photos/2013/08/27/0827NinthBridge13_t653.JPG?214bc4f9d9bd7c08c7d0f6599bb3328710e01e7b


http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg


http://mikerossart.net/images/mikeross_enter.jpg


http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg

LIFE IS BEAUTIFUL

$200M REAL ESTATE

Productivity and innovation per resident increases by 15%

(But not true for companies)

Accelerate serendipity > Accelerate learning > Accelerate productivity and innovation

WHEN CITIES DOUBLE IN SIZE

1. Residential density of 100 residents/acre

2. Street-level activity for residents to collide

3. Culture of openness, collaboration, creativity, and optimism

3 INGREDIENTS FOR SERENDIPITY

Maximize serendipitous interactions

Density in the office

Density in the city

Collisions vs. convenience

HOW TO ACCELERATE LEARNING & INNOVATION

LAS VEGAS CITY HALL

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

LAS VEGAS CITY HALL

1. 2000 Zappos employees2. 1000 Teach For America corp

members and alumni3. Tech Startup Community4. Small Business Community5. Art and Music Communities6. Other Passion Communities7. Local Residents

LEARNINGS FROM ZAPPOS & COWORKING

CULTURE IS TO A COMPANY

COMMUNITY IS TO A CITY

AS

COMMUNITY IS TO A CITY

CULTURE IS TO A COMPANYAS

ValuesInnovationSerendipityParticipationUpward MobilityAttracting Startups & the Creative Class

OUR SECRET WEAPON

http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg

LEARNINGS FROM TED, SUMMIT SERIES, SXSW,

BIF…Curated ContentSerendipityLearningConnectionsCommunity

DOWNTOWN VEGAS EVERY DAY

Curated ContentSerendipityLearningConnectionsCommunity

Fremont St. & Las Vegas Blvd.

INSPIRE THEATER

DOWNTOWN VEGAS MONTHLY CADENCE

Week 1 – First Friday Week


Week 1 – First Friday WeekWeek 2 – Tech Week


Week 1 – First Friday WeekWeek 2 – Tech WeekWeek 3 – Fashion Week


Week 1 – First Friday WeekWeek 2 – Tech WeekWeek 3 – Fashion WeekWeek 4 – Catalyst Week


FASHION INCUBATORSTITCH FACTORY

What is the value of a resident that is out and about in the community?

RETURN ON COLLISIONSROC


3-4 hours/day



3-4 hours/dayx 7 days/week




x 40 weeks/year




x 40 weeks/year= 1000 “collisionable” hours/year


JAKE – FLINT & TINDER

http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-It-b.jpg

JAKE – FLINT & TINDER

What is the value of a purposeful visitor that contributes to community?



12 hours/day



12 hours/dayx 7 days/week




x 12 weeks/year




x 12 weeks/year= 1000 “collisionable” hours/year



“SUBSCRIBE”

TO DTLV

1. 100 residents per acre

2. Street-level activity for residents to collide

3. Culture of openness, collaboration, creativity, and optimism


100,000


100,000 “collisionable”


100,000 “collisionable” community


100,000 “collisionable” community hours


100,000 “collisionable” community hours per


100,000 “collisionable” community hours per acre


100,000 “collisionable” community hours per acre per


100,000 “collisionable” community hours per acre per year


100,000 “collisionable” community hours per acre per year


2.3 COLLISIONABLE HOURS

PER SQUARE FOOTPER YEAR

Accelerate:1. Collisions2. Co-Learning3. Connectedness

And everything else will fall into place…

(productivity, innovation, growth, happiness)

What will people say about downtown?

THE BIG BET

3 GUIDING PRINCIPLES

ZAPPOS, DELIVERING HAPPINESS, DOWNTOWN

PROJECT

50% OF HUMANS LIVE IN CITIES

https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078

75% WILL LIVE IN CITIES IN OUR LIFETIME

https://www.facebook.com/photo.php?fbid=533076913404671&set=a.429177383794625.90218.427192853993078

THE 4 MINUTE MILE

A GREAT

BRAND

is a story that never stops unfolding.


A GREAT

BRAND, COMPANY

A GREAT

BRAND, COMPANY, CITY


A GREAT

BRAND, COMPANY, CITY, COMMUNITY


THANK YOU!

For a copy of this presentation:[email protected]

For more information:www.downtownproject.com

PPAI 2014 - Tony Hsieh - Downtown Project - Zappos_1.15.14

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