CEO and COO Blog : January 2009

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How Twitter Can Make You A Better (and Happier) Person

84 comments
Jan 25, 2009 by Tony H. (CEO)


I was in Washington, DC last week and spent several days participating in inauguration-related events with various people including Evan Williams, the CEO of Twitter. So I thought this would be an opportune time to write about a topic that I've been thinking a lot about over the past few months: how Twitter has contributed to my own personal growth and made me a better person, and how you can take the same principles and apply them to yourself if you'd like.

I've talked a lot in the past about how we've used Twitter at Zappos for building more personal connections with both our employees and our customers. In fact, we recently debuted on FORTUNE MAGAZINE's annual "100 BEST COMPANIES TO WORK FOR" list, and they began and ended the article talking about our use of Twitter to build more personal connections with people. That in itself is its own reward that has both personal and business benefits, but for this blog post, I wanted to share my stories and thoughts on how Twitter has helped me grow personally.

For me, it comes down to these 4 things:

  1. Transparency & Values: Twitter constantly reminds me of who I want to be, and what I want Zappos to stand for
  2. Reframing Reality: Twitter encourages me to search for ways to view reality in a funnier and/or more positive way
  3. Helping Others: Twitter makes me think about how to make a positive impact on other people's lives
  4. Gratitude: Twitter helps me notice and appreciate the little things in life

The great thing about all 4 of these things is that not only have they helped me grow as a person, but they've also led to me being generally happier in life. And the benefits aren't just personal -- they also spill over into what we want the Zappos brand and business to be about: Zappos is about delivering happiness, whether for customers (through customer service) or for employees (through company culture). It's been interesting thinking about how all of my personal learnings about happiness can be applied to delivering happiness in the business world as well.


#1 - TRANSPARENCY & VALUES


What would you do differently if you were always on camera? I'm not talking about being on a reality TV show, but what if there were a permanent public record of everything you do or say from now on that anyone in the world could view at anytime? How would you act differently in certain situations? Would you be friendlier to people? Would you be less negative and less judgmental?

If you were always on camera, then everything you did would go towards shaping your personal brand, whether positive or negative. What are your personal values, and what values do you aspire to?

At Zappos, we have 10 core values that act as a formalized definition of our company culture. Our core values weren't formed by a few people from senior management that sat around in a room at a company offsite. Instead, we invited every employee at Zappos to participate in the process, and here's the final list we collectively came up with:

1) 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

The cool thing about the Zappos core values is that I've used them as my own personal values as well. So it makes tweeting really easy for me... Whether I tweet about something personal or something related to Zappos, if I'm living my life through these 10 core values, it all goes towards building the Zappos brand while shaping me personally as well.

A lot of marketers are initially mystified by how Twitter, in which you're limited to 140 characters or less per tweet, can actually help a company build a brand when you're so restricted in the length of your tweet. Here's the analogy I like to use:

Think of each tweet as a dot on a piece of paper. Any single tweet, just like any single dot, by itself can be insignificant and meaningless. But, if over time, you end up with a lot of tweets, it's like having a lot of dots drawn on a piece of paper. Eventually there are enough dots for your followers to connect them together. And if you connect the dots, in the aggregate it paints a picture of you and/or your company, and it's that total picture that is your brand.

I have to admit, like probably most other people, when I first joined Twitter I felt a bit uncomfortable publicly announcing what I was doing and what I was thinking. But because radical transparence was part of the culture of tweeting, I decided to give it a try and be as transparent as possible, both for myself personally and for Zappos. It was also consistent with Zappos Core Value #6: "Build Open and Honest Relationships With Communication".

What I found was that people really appreciated the openness and honesty, and that led people to feel more of a personal connection with Zappos and me compared to other corporations and business people that were on Twitter.

By embracing transparency and tweeting regularly, Twitter became my equivalent of being always on camera. Because I knew that I was going to be tweeting regularly about whatever I was doing or thinking, I was more conscious of and made more of an effort to live up to our 10 core values.

A lot of people use Twitter to complain or vent, but I generally try to avoid doing so because it's not in line with our core values. What I've noticed is that it's also caused me to complain a lot less in real life, and because of that, I've found that my own personal happiness level has gone up.


#2 - REFRAMING REALITY

That's not to say that I don't get into situations that I'm not initially happy about. But now anytime something that used to get me upset or frustrated happens, I try to find the humor in the situation and think about how the situation can be reframed. I've found that almost every "bad" situation is actually an opportunity that can be entertaining to my followers on Twitter, which also forces myself to see things in a different light.

For example, last year I was staying at a hotel in Mexico and somehow managed to lock myself out on the balcony of my hotel room. I was stuck there for 45 minutes before I was finally rescued. This would haven normally been a very frustrating experience, but because I had my cell phone with me, I was able to tweet about it and it actually ended up being a very enjoyable 45 minutes as I tweeted about the progress of my situation and read all of my followers' responses to it:

Went 2 my room after my speech, came out 2 balcony. Balcony door somehow locked behind me so now I am trapped outside. @ zappos_fred 2 rescue [http://twitter.com/zappos/status/812279213]

Hotel front desk is telling @zappos_fred it's not possible for me to be locked out on balcony. I assure you it is, I am not pretending. [http://twitter.com/zappos/status/812287969]

Hotel security finally believed @zappos_fred, rescued me after 45 mins. Asked 4 ID so I could come in from balcony. No ID = stay on balcony [http://twitter.com/zappos/status/812292469]

in fact, I now almost looked forward to situations that would normally be frustrating, because I've learned that almost any situation can be reframed to be funny as a tweet, which then makes the situation in real life funny as well. For example:

Airport bathroom: guy tries washing hands - auto faucet motion sensor broken. He tries voice recognition instead by yelling "Wash!" at sink [http://twitter.com/zappos/statuses/806944443]

If it weren't for Twitter, I would have instead probably been a bit annoyed waiting in line behind this man who was unfamiliar with motion-activated sink faucets. But instead, Twitter forced me to search for and find the humor in the situation by taking a step back and realizing that it actually was a pretty funny situation.


#3 - HELPING OTHERS

One of the great things about Twitter is the instant feedback loop. Within 5 minutes of sending out a tweet, you can find out whether people enjoyed or appreciated your tweet. When I first started using Twitter, I used to just tweet about what I was doing. Most of my tweets were very "me-focused", because the guideline Twitter gives is to answer the question "What are you doing right now?"

Every once in awhile I might share an inspirational quote or funny story or link to an interesting article. What I found was that those types of tweets also garnered the most responses. So today, with most of my tweets I try to do at least one of the following:


  • Cause my followers to smile with something funny
  • Inspire my followers (for example, with an inspirational quote)
  • Enrich my followers' perspectives (such as with a link to an interesting article)


In other words, I've become a lot less "me-focused" and instead do a lot more thinking and asking myself, "What can I tweet about that would brighten the day for my followers or enrich their lives somehow?"

And by regularly putting myself into the mindset of asking what I can do for others, it inevitably ends up spilling over to my regular life outside of Twitter. And somewhat ironically, becoming less "me-focused" has actually increased my overall level of happiness for myself personally.


#4 - GRATITUDE

In my research into the science of happiness, many studies have shown that gratitude activities (such as keeping a gratitude journal) helps people increase their overall happiness level in life. There are many ways to be thankful, and many things to be thankful for, but one technique is to make a more conscious effort to notice and appreciate the little things in life.

For me, because I try to tweet every day, I've found that I'm always looking for opportunities to have something to tweet about. So I end up noticing and appreciating things that I would normally not even give a second thought to. Here are examples of some tweets I've sent about things I've noticed that I would have normally ignored or forgotten about:

http://twitpic.com/rcli - Guy in New York with a cat on his head. Apparently this is normal. [http://twitter.com/zappos/status/1046534414]

http://twitpic.com/13fn1 - It's so cold that the NY street food vendors' tomatoes & lettuce are frozen [http://twitter.com/zappos/status/1124243255]

At Vegas airport. While in bathroom, I had an AMAZING revelation: Toilet seat covers are shaped exactly the same as life vests! [http://twitter.com/zappos/status/1109483429]

Enjoying just hanging out at home for my birthday. Looking at the full moon which is closest to earth today, happens once every 15 years. [http://twitter.com/zappos/status/1054918866]

So now, anytime I notice something that would normally be inconsequential, the very act of tweeting forces me to spend some time appreciating what would have otherwise been ignored or forgotten. And because of that, I've learned that every day, there are many, many opportunities to notice and appreciate the little things in life.


So for all of the reasons I've outlined above -- Transparency & Values, Reframing Reality, Helping Others, and Gratitude -- I'd like to say thank you to Twitter for helping me grow as a person.

Tony Hsieh - CEO, Zappos.com


SOME QUESTIONS FOR YOU

Some questions for you to consider thinking about: What are your personal values? What do you want your personal brand and values to be? How can you use Twitter as a tool to help you grow as a person and be happier? If you've ever vented on Twitter, do you think you would be happier if you thought of Twitter as a tool for you to reframe your perspective? I'd love to hear people's thoughts and comments below!


Follow me on Twitter: @zappos

Want to learn how to get started on Twitter? Take a look at the beginner's guide I wrote!

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Yay! Zappos made FORTUNE MAGAZINE's "100 Best Companies To Work For"

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Jan 22, 2009 by Tony H. (CEO)


It's official! Zappos.com made FORTUNE MAGAZINE's "100 Best Companies To Work For" list for 2009 - and we're actually mentioned on the cover!

To give a little bit of history, FORTUNE puts out this high profile list every year. Making this list was one of the most important goals that we set for ourselves during the early days of Zappos, and we're all super excited to show up on the list for the first time in our company's history! To qualify, a company has to be at least 7 years old and have at least 1000 employees. We came in at #23 this year, making us the highest ranking newcomer for 2009.

Here's a link to the actual article (it's 2 pages, you need to hit the non-obvious "2" button to get to the second page, or just use the second link):

http://money.cnn.com/2009/01/15/news/companies/Zappos_best_companies_obrien.fortune/index.htm
http://money.cnn.com/2009/01/15/news/companies/Zappos_best_companies_obrien.fortune/index2.htm

Here's a link to a video FORTUNE also put up:

http://money.cnn.com/video/ft/#/video/fortune/2009/01/21/fortune.bctwf.zappos.fortune

Here's a link to another article FORTUNE put up about our core values at Zappos:
http://money.cnn.com/2009/01/21/news/companies/obrien_zappos10.fortune/

And here's a link to our official press release:
http://www.earthtimes.org/articles/show/zapposcom-debuts-on-fortune-magazinersquos,688804.shtml

More background information about Zappos:
http://about.zappos.com

Zappos Blogs:
http://blogs.zappos.com

Or follow me on Twitter!
http://twitter.com/zappos

Thank you EVERYONE for helping shape the Zappos culture into what it is today. It's hard to believe that within a 30 day period, we hit $1 billion in gross merchandise sales AND finally made FORTUNE's list of "100 Best Companies To Work For"! We'll be coming up with a special commemorative t-shirt celebrating both over the next few weeks!


Tony Hsieh, CEO

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The Power of 1%

3 comments
Jan 7, 2009 by Alfred L. (COO-CFO)

The following was sent to all Zappos employees this past Monday:


Team,

Happy New Year! To kick off the year, I sent this on Jan. 2nd to a smaller group, but a few folks suggested that it should be sent to all Zappos employees. Here is a slightly cleaned up and better version of what was sent.

--

"It was the best of times and it was the worst of times." – A Tale of Two Cities, by Charles Dickens

On CNBC Reports 2008, Maria Bartiromo quoted Charles Dickens, noting that, while Dickens was referring to the French Revolution, he could have easily been talking about 2008.

No doubt, 2008 was a very challenging year, starting out with a weak economic and retail environment that degraded slowly in the first half of the year and then fell off a cliff in the second half of the year. Depending on what reports you read, online ecommerce was down 3-5% this holiday season, marking the first time ecommerce didn't grow. Reading about these not-so-positive reports just goes to show how very lucky we are at Zappos, because we were able to ride through these rocky times and produce pretty incredible results. No, things weren't perfect, but 2008 was still a great year for us! Official results have to wait until our finance team closes the books and releases the audited financials in early March, but we managed to grow our business over last year and during the holiday season (when ecommerce was down), exceeded $1B in gross merchandise sales, and by Doing More with Less, kept ourselves profitable and cash positive – all the while having a lot of fun serving our customers!

We can reminisce about 2008, but now that 2009 is here and we are back from some much needed downtime, it's time to get our A-game back on. We'll be going over our goals and our "official" plans as soon as our board approves them, but even before that "officially" happens, we already know what we need to do.

One thing I encourage you to do is to refer back to our Core Values document and specifically the challenge in there: make at least one improvement every week that makes Zappos better. Ideally, we would do this every single day. It sounds daunting, but remember improvements don't have to be dramatic. Think about what it means to improve just 1% per day and build upon that every single day. Doing so has a dramatic effect and will make us 37x better, not 365% (3.65x) better at the end of the year. Wake up every day and ask yourself not only what is the 1% improvement I can change to make Zappos better, but also what is the 1% improvement I can change to make myself better personally and professionally – because we, Zappos, can't grow unless we as individual people grow too.

Imagine yourself making 1% changes every day that compounds and will make you and Zappos 37x better by the end of the year. Imagine if every employee at Zappos was doing the same. Imagine how much better you, Zappos and the
world will be next year.

It won't be easy and 2009 will no doubt present its own set of challenges, but we positively will get through it. Have a great and happy 2009!


P.S. Also check out Tony's blog entry, Your Culture Is Your Brand.

P.P.S. This is for the math geeks. If you start out with $100 at the beginning of the year and you were able to increase what you have by 1% every single day, at the end of the year, you would have $3,778.34 = $100 * (1 + 1%) ^ 365. That is 37.78x what you had at the beginning of the year. Get that 1% every single day!


Do you have a story about how small changes every single day made a huge difference in the long-run? If so, leave us a comment below or email me: alfred (at) zappos.com.

Follow me on Twitter: @zappos_alfred

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Your Culture Is Your Brand

42 comments
Jan 3, 2009 by Tony H. (CEO)

Building a brand today is very different from building a brand 50 years ago. It used to be that a few people got together in a room, decided what the brand positioning was going to be, and then spent a lot of money buying advertising telling people what their brand was. And if you were able to spend enough money, then you were able to build your brand.

It's a very different world today. With the Internet connecting everyone together, companies are becoming more and more transparent whether they like it or not. An unhappy customer or a disgruntled employee can blog about bad experience with a company, and the story can spread like wildfire by email or with tools like Twitter.

The good news is that the reverse is true as well. A great experience with a company can be read by millions of people almost instantaneously as well.

The fundamental problem is that you can't possibly anticipate every possible touchpoint that could influence the perception of your company's brand.

For example, if you happen to meet an employee of Company X at a bar, even if the employee isn't working, how you perceive your interaction with that employee will affect how you perceive Company X, and therefore Company X's brand. It can be a positive influence, or a negative influence. Every employee can affect your company's brand, not just the front line employees that are paid to talk to your customers.

At Zappos.com, we decided a long time ago that we didn't want our brand to be just about shoes, or clothing, or even online retailing. We decided that we wanted to build our brand to be about the very best customer service and the very best customer experience. We believe that customer service shouldn't be just a department, it should be the entire company.

Advertising can only get your brand so far. If you ask most people what the "brand" of the airline industry as a whole is (not any specific airline, but the entire industry), they will usually say something about bad customer service or bad customer experience. If you ask people what their perception of the US auto industry is today, chances are the responses you get won't be in line with what the automakers project in their advertising.

So what's a company to do if you can't just buy your way into building the brand you want? What's the best way to build a brand for the long term?

In a word: culture.

At Zappos, our belief is that if you get the culture right, most of the other stuff -- like great customer service, or building a great long-term brand, or passionate employees and customers -- will happen naturally on its own.

We believe that your company's culture and your company's brand are really just two sides of the same coin. The brand may lag the culture at first, but eventually it will catch up.

Your culture is your brand.

So how do you build and maintain the culture that you want?

It starts with the hiring process. At Zappos, we actually do two different sets of interviews. The hiring manager and his/her team will do the standard set of interviews looking for relevant experience, technical ability, fit within the team, etc. But then our HR department does a separate set of interviews, looking purely for culture fit. Candidates have to pass both sets of interviews in order to be hired.

We've actually said no to a lot of very talented people that we know can make an immediate impact on our top or bottom line. But because we felt they weren't culture fits, we were willing to sacrifice the short term benefits in order to protect our culture (and therefore our brand) for the long term.

After hiring, the next step to building the culture is training. Everyone that is hired into our headquarters goes through the same training that our Customer Loyalty Team (call center) reps go through, regardless of department or title. You might be an accountant, or a lawyer, or a software developer -- you go through the exact same training program.

It's a 4-week training program, in which we go over company history, the importance of customer service, the long term vision of the company, our philosophy about company culture -- and then you're actually on the phone for 2 weeks, taking calls from customers. Again, this goes back to our belief that customer service shouldn't just be a department, it should be the entire company.

At the end of the first week of training, we make an offer to the entire class. We offer everyone $2000 to quit (in addition to paying them for the time they've already worked), and it's a standing offer until the end of the fourth week of training. We want to make sure that employees are here for more than just a paycheck. We want employees that believe in our long term vision and want to be a part of our culture. As it turns out, on average, less than 1% of people end up taking the offer.

One of the great advantages of focusing on culture is when reporters come and visit our offices. Unlike most companies, we don't give reporters a small list of people they're allowed to talk to. Instead, we encourage them to wander around and talk to whoever they want. It's our way of being as transparent as possible, which is part of our culture.

We've formally defined our the Zappos culture in terms of 10 core values:

1) 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

Many companies have core values, but they don't really commit to them. They usually sound more like something you'd read in a press release. Maybe you learn about them on day 1 of orientation, but after that it's just a meaningless plaque on the wall of the lobby.

We believe that it's really important to come up with core values that you can commit to. And by commit, we mean that you're willing to hire and fire based on them. If you're willing to do that, then you're well on your way to building a company culture that is in line with the brand you want to build. You can let all of your employees be your brand ambassadors, not just the marketing or PR department. And they can be brand ambassadors both inside and outside the office.

At the end of the day, just remember that if you get the culture right, most of the other stuff -- including building a great brand -- will fall into place on its own.


Do you have a story about how your company's culture has positively or negatively impacted your company's brand? if so, leave a comment below!

You can also find more information about how we manage our company culture at Zappos at: www.zapposinsights.com


Follow me on Twitter: @zappos


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