Zappos is a weird company -- and it's happy that way

Summary

The video explores Zappos' unique corporate culture, which prioritizes employee happiness and service excellence. Led by CEO Tony Hsieh, the company focuses on creating a fun and 'weird' work environment, from quirky dress codes to holacracy—a self-management system without traditional bosses. Zappos believes a positive culture drives exceptional customer service, as seen through their personalized interactions and long-standing customer relationships. With a focus on innovation, Zappos aims to grow like a city and maintain longevity, hoping to exist 500 years from now by avoiding the fate of most large companies.

Takeaways

• 👟 Zappos is known for its unique company culture and dedication to customer service, which they consider key to long-term success.
• 🎉 Zappos emphasizes hiring based on cultural fit rather than education, looking for people who align with their core values like fun, weirdness, and humility.
• 🤣 The company promotes a quirky environment, with fun traditions like 'Tutu Tuesdays' and asking employees how 'weird' they are during interviews.
• 💡 Zappos encourages cross-team interactions, with games on elevators and other initiatives to foster conversations between employees.
• 🎁 Employee morale is highly valued, with initiatives like Zollars for positive contributions and bonuses for going above and beyond.
• 📞 Zappos' focus on exceptional customer service is highlighted by examples like their 365-day return policy and a 10-hour customer service phone call.
• 🔄 Zappos introduced a 'holacracy' system, which eliminates traditional bosses and uses self-managed teams to increase innovation and transparency.
• 🛠 The holacracy system involves structured meetings where employees discuss tensions and action points, though it initially faced some resistance.
• 🐕 Zappos' holacracy allowed for ideas like a canine-friendly office to be adopted, showing how the system fosters employee-driven decisions.
• 🏆 Tony Hsieh, Zappos’ CEO, believes that self-management and a strong culture will help Zappos avoid the fate of many large companies and last for hundreds of years.

Q & A

What is unique about Zappos' corporate culture?

Zappos is known for its quirky and unconventional corporate culture, where they prioritize employee happiness, weirdness, and creativity. They have core values like 'create fun and a little weirdness' and foster a positive team and family spirit.

Why did Tony Hsieh sell his previous company, LinkExchange, to Microsoft?

Tony Hsieh sold LinkExchange to Microsoft because the company culture deteriorated, to the point where he dreaded going to work. He wanted to avoid the same fate with Zappos.

How does Zappos prioritize company culture in its hiring process?

Zappos hires based on cultural fit rather than just education. They look for people who align with their core values, such as being fun, weird, and team-oriented. For example, during interviews, candidates are asked about their 'weirdness' on a scale of 1 to 10.

What are Zappos' 'wallflowers' and how do they relate to the company’s culture?

'Wallflowers' are ties that visitors must either remove, wear as a headband, or cut up and add to the collection on the wall, emphasizing the company’s light-hearted and quirky atmosphere.

What role do employee rewards like 'Zollars' play at Zappos?

Zappos encourages employee recognition by allowing coworkers to reward each other with 'Zollars,' redeemable for company swag. Employees can also award each other $50 bonuses for going above and beyond, fostering a sense of camaraderie and appreciation.

Why does Zappos allow employees to wear tutus on Tuesdays?

Zappos embraces fun and weirdness as part of its culture, and 'Tutu Tuesdays' is one example of that. At its peak, around 50-60 employees participated by wearing tutus, reflecting their commitment to keeping the work environment lively and creative.

Why does Zappos emphasize long phone calls with customers, such as the 10-hour call?

Zappos prioritizes building strong customer relationships. Tony Hsieh saw the 10-hour call as a positive example of customer bonding, which aligns with their focus on providing excellent customer service, even if it means going to extraordinary lengths.

What is holacracy, and how has it affected Zappos?

Holacracy is a management system that does away with traditional hierarchies and bosses. Zappos adopted holacracy to create self-governing teams, known as circles. This approach emphasizes transparency and self-organization, but it has been challenging for some employees to adapt to its rigid structure.

How has Zappos' adoption of holacracy impacted its employee turnover?

The adoption of holacracy led to a higher turnover rate, as 18% of employees took a buyout offer when the new structure was introduced. This raised the company's annual turnover to around 30% in 2015.

Why does Tony Hsieh believe holacracy will help Zappos avoid the fate of other large companies?

Tony Hsieh believes holacracy promotes innovation and adaptability, similar to how cities function. By avoiding top-down management, he thinks Zappos can continue to grow, remain nimble, and avoid the stagnation and decline that often befalls large companies.