Delivering Happiness: A Path to Profits, Passion, and Purpose

As the author best puts it "This book is not meant to be a comprehensive corporate history of Zappo or any of the previous business I've been involved in. It's also not meant to be a complete autobiography...The purpose of this book is to give some of the highlights of the path that I took in my journey toward discovering how to find happiness in business and in life." The journey Tony takes the readers on is both very educational and exciting. Along the path, he shares great gems of wisdom that he has collected both on from a personal basis and an organizational perspective. These include but are not limited to: management, leadership, following one's passion, relationship building etc. His passion for vision, values and happiness radiates through and is very contagious and inspirational. Having personally experienced Zappos WOW experience, I can truly say that the material preached by the CEO is truly believed in and practiced throughout the organization. A highly recommended book! Below are excerpts from the book that I found particularly insightful: 1- "One of the most interesting things about playing poker was learning the discipline of not confusing the right decision with the individual outcome of any single hand, but that's what a lot of poker players do. If they win a hand, they assume they made the right bet, and if they lose a hand, they often assume they made the wrong bet. With the coin that lands on heads a third of the time, this would be like seeing the coin land on heads once (the individual outcome) and changing your behavior so you bet on heads, when the mathematically correct thing to do is to always bet on tails no matter what happened in the previous coin flip (the right decision)." 2- "We learned that we should never outsource our core competency. As an e-commerce company, we should have considered warehousing to be our core competency from the beginning. Outsourcing that to a third party and trusting that they would care about our customers as much as we would was one of our biggest mistakes. If we hadn't reacted quickly, it would have eventually destroyed Zappos." 3- "Looking back, a big reason we hit our goal early was that we decided to invest our time, money, and resources into three key areas: customer service (which would build our brand and drive word of mouth), culture (which would lead to the formation of our core values), and employee training and development (which would eventually lead to the creation of our Pipeline Team)." 4- "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." 5- "The best leaders are those that lead by example and are both team followers as well as team leaders. We believe that in general, the best ideas and decisions are made from the bottom up, meaning by those on the front lines that are closest to the issues and/or the customers. The role of a manager is to remove obstacles and enable his/her direct reports to succeed. This means the best leaders are servant-leaders. They server those they lead." 6- "While we celebrate our individual and team successes, we are not arrogant nor do we treat others differently from how we would want to be treated. Instead, we carry ourselves with quiet confidence, because we believe that in the long run our character will speak for itself." 7- "Your personal core values define who you are, and a company's core values ultimately define the company's character and brand. For individuals, character is destiny. For ogranizations, culture is destiny." 8- "Happiness is really just about four things: perceived control, perceived progress, connectedness (number and depth of your relationships), and vision/meaning (being part of something bigger than yourself)."

Deliving Happiness is a fascinating book about how to grow and nurture a company. It is written by Tony Hsieh who is the early investor and the current CEO of Zappos- online company that started out selling shoes and has now branched out to selling clothes, watches, and eyewear. Unlike most CEO, he does not see the sole purpose of the business is to maximize profits for its owners. In this book he talks about how he got be where he is today and how he learned important values and lessons. Before Zappos, he had founded LinkExchange which he sold to Microsoft for $265 million. The reason he gave for selling was LinkExchange was as it grew, it lost culture and felt like it was a different company and it get to the point he dreaded getting out of the bed in the morning to go to the office. After this, he started venture fund from which he funded Zappos’s founder. Initially, Zappos struggle because it fulfilled orders with drop shipments which did not worked well because it did not have accurate information about vendors’ inventory, and because their warehouses were all over the country, delivery times weren’t predictable. Later, he began buying inventory from manufacturers, which was freezing its capital and also relying on a third party to manage its warehouse. He recalled that it never makes sense to outsource call center and warehousing because Zappos’s higher purpose is to provide the best customer service which is only possible when it has pulse of what customer want. He felt that trusting a third party would care about its customers as much as Zappos would was one of our biggest mistakes. In the book, he talks about when Zappos was losing money and could not get any more money to run its operation, they figure out that while cutting marketing expense, only thing they can do is to focusing on the customer service. He sees his company offering the best customer services possible. He eluded couple times that Zappos could get in to many other areas including offering the airline services. Later he talks about how reading book; he learned that great company has a greater purpose and bigger vision beyond just making money or being number one in a market. He would later create a book club where each employee would read a book and discuss about it and apply lesson learned at Zappos. Unlike many businesses that put the need of the investors as the center of the business, he put the need of the customer as the core, yet believes that he needs to meet the needs and desires of all stakeholders. Tony put the best customer service at his end goal, for which he put making his employee happy as his primary target. He believes that his effort to make his employee happy will in turn make his customer happy. Tony Hsieh saw his role as the philosopher. He sold his first company LinkExchange to Microsoft, because he felt that it lost its soul and reach to where he dreaded getting out of the bed in the morning to go to the office. When he invested on Zappos, and then become involved in it, he knew the culture was important. From early on, he develops a culture that he likes. As a CEO, he does not have authority like in the typical American organization. At Zappos, he saw his role as the gardener that allows everybody around him to flourish. Hsieh put the customer’s interest as his end goal. Employees are trained to have lifelong relationship with a customer. And there are growing list of CEO who toured Zappos to learn from Zappos insight and bought his idea and have implemented at their organization. In this book, he talks about creating a culture that would outlast him. He believe that if it get the culture right, then most of the other stuff like delivering great customer service or building a long-term enduring brand or business will be a natural byproduct. Culture starts with the hiring. Zappos uses two sets of interview: one by the hiring manager for the job specific role; and second by HR which is purely for the culture fit. To hire, a prospective candidate has to be pass both. It also fires employee if they are bad for the culture even though they are doing well on their job specific role. At Zappos, they hired only people they would enjoy hanging out with after hours. This book talks about meritocracy system which Hsieh implemented in 2012. It allows employees to self-organize to complete work in a way that increases productivity, foster innovation and empowers anyone in the company with the ability to make decisions that push the company forward. All employees are part of one or more circle. People on the circle can fire another people on the circle. All employees can remove themselves from a circle and move to another circle. As a CEO, Hsieh cannot hire or fire his employee. This kind of system requires trust first. He was able to build trust by developing a culture that stems from intrinsic motivation rather than extrinsic motivation. He frees his call center employee in many ways to build a lifelong relationship. One way he empowers customer service reps is by not measuring call times, not allowing them to upsell, and not using a script. It talks about how leader can affect an organization’s future by sharing his values. When things are changing fast, employees need a vision of the destination that lies beyond the horizon; they also need to understand the principles by which they must navigate their course. Without the strong value that is shared and engrained to the culture, an organization will probably lose their direction and fail. Unlike many other companies that may take only senior leadership to retreat to develop company value, he email to all his employees about their input. From all employees’ input, Zappos developed 10 core values. Since all employees have contributed to this value, they embody the company value. One value is to be adventurous, creative and open-minded which displays how his employees have embodied Zappos value. Another value he talks about is to “deliver wow through service”. To WOW, employee must differentiate themselves, which means do something a little unconventional and innovative. Once a year, Zappos ask its employee to write what Zappos cultures mean to them and publish them as a “Culture book” which is an employee review of a company and is a great way to communicate with its employee. That book is fantastic read for all MBA students and those who wants to learn how to manage team.

Delivering Happiness is probably one of the most popular business books in 2013. I saw people reading it everywhere, especially in the plane. So, I decided to read it and it is pretty good. It is a very easy read with some good points. Delivering Happiness is the story of Tony Hsieh, who is the founder of Zappos and therefore it is also the story of Zappos. The book consists of three parts called 1) Profits, 2) Profits & Passion, and 3) Profits, Passion and Purpose. The first part (Profits) tells the early life of Tony growing up and always trying to make a profit out of everything he did. Most of his attempts as a child and teenager failed miserably, but some of them succeeded. After graduation, he worked a bit for Oracle and started a new dot com company called link exchange. He sold the company for a couple of million to Microsoft and reached his early goal in life and began wondering what he should do next. The second part (Profits & Passion) he decided he likes to build a company and joins Zappos. He is basically the core investor in Zappos and his private money keeps the company alive. At the first years, it wasn't going very well until he changed the direction of the company to expand the choice of shoes. Finally the company took off and became one of the largest eCommerce sites and was eventually sold to Amazon.com. From the outside, Zappos became especially known for its customer service. The last part (Profits, Passion, and Purpose) is a fairly small part where Tony explains how Zappos changes from only focusing on Zappos to a larger purpose of also improving other companies. He researched a bit in "happiness literature" and comes to the conclusion that (unlike his early life focus) money and profits don't make people happy, but the passion and purpose of contributing to the world does. So, he makes creating and delivering happiness a motto for Zappos. The book is a very easy read. It is basically a sort-of autobiography of Tony and Zappos. Because of that, it does explain everything from one perspective, Tonys. Some reviewers complained about that, but then again, what can you expect from an autobiography. This book isn't a research on why Zappos in a successful company but is is Tony Shiehs perspective on why Zappos is an interesting company. And Tony is a pretty good story-teller which makes the book quite engaging and he does introduce some innovations in how companies are run that I loved. For example, offering people a bonus for leaving the company to check their commitment to the company is something I haven't heard done before. The book is a quick read, an interesting story and contains some useful insights. Yet, I wouldn't rate it as a 5 star book either. In the middle of the company, it became a bit too much "promoting Zappos" and the Zappos values (which I understand are important) got repeated a bit too often. Though the company does offer some innovation, it doesn't go as far as for example Richardo Semler with Maverick. So, all in all, a good an easy read. Recommended for in the plane.

Before I say anything about Tony Hsieh's book, "Delivering Happiness," I would first like to thank him and the Delivering Happiness team for selecting me to receive an advanced copy of the book. They actually provided me with two copies of the book - one to read, another to giveaway on my blog. Thanks for including me in your efforts and for allowing me to take part in the pre-release party. On to the review. Business writing is changing and I hope that it doesn't go unnoticed by corporations, authors and publishers. There is a valuable lesson to be learned here. I first noticed it when I read "rework" by Jason Fried And the 37signals team. Delivering Happiness is the second example. What are these authors doing that is so special? They are humanizing business writing and their efforts are redefining what it means to build a successful business. In Delivering Happiness, Tony Hsieh makes it clear that success should no longer defined by the size of your paycheck. It is about living a meaningful life filled with wonderful experiences. This is what truly makes Delivering Happiness a unique book. It is a book that focuses on creating a workplace that people love working in and that is focused on the long term development of all its team members. It is probably worth saying that I have been a fan of the company for some time now and I have bought a few shoes, books and other merchandise from them. I have experienced their amazing level of service as a customer first hand. Reading about all of their efforts behind the scene makes for a great read. The first two sections of the book focus on Tony's life - from his childhood and time spent in college to his time building LinkShare and then Zappos. I've heard bits and pieces of the Zappo's story, however, I was unaware of the major sacrifices that the company's entire team endured to make their dream a reality. In addition to the history lessons, the first two sections are jam packet with actionable ideas that could help any business prosper. Overall, Delivering Happiness is an outstanding book and it deserves to be read by entrepreneurs, c-suite staff, marketers, and anyone that is interested in living a life that is filled with meaning and happiness. This book is unlike any other business book I have ever read. I went into it thinking that it might focus on the company's history and best practices. Instead, it was a collective history of Tony and his experience in business. The book truly reflects the values that he and the Zappo's team live every day. About 200 pages into the book, Tony turns the tables on the reader and asks a couple simple questions: What makes you happy and how do you want to live the rest of your life? He then dives right into talking about the research he has done on happiness and how it can impact the reader's life. Think about what Tony is doing here. He leads a company that is in the process of changing our other companies do business, both with their team members and customer. In "Delivering Happiness" Tony makes matters a little more personal by reaching out to his readers and trying to impact their lives in a positive manner. I love this approach and I must say that Tony has had an impact on at least on of his readers - me. Thanks for sharing your life experiences, insights and values with all of us.

First of all, I want to say that I am currently a student at the University of Baltimore, I am enrolled in the survey entrepreneurship course and this specific book was my recommended reading during the 2015 Fall semester. This book is very interesting because it shows people how to build and manage a successful business in a rather unusual way. Tony Hsieh, the CEO of Zappos, basically explain that having a great employer/employee relationship is key to successful business. It is how he gets and maintains this relationship where it gets “weird” and unusual. In this book, he shares that he personally hangs out with his employees outside of the office, he is throwing parties for them, he is drinking with them and so on. Surprisingly, it works. The result is that employees are more productive, especially in delivering great customer service (Zappos is well known for great customer service and they take pride in that). For the company, customer satisfaction is not the task for one specific department; the whole company gets involved and makes sure that satisfaction is delivered. What I especially liked about this book is that it made me think outside of the box. It made think about all the different possibilities on how to begin, manage and maintain (especially talking about startup businesses). What Tony did is absolutely brilliant and although it may not work with every business cases, it is a good example on how to work differently and still get great result. I understand that this book also include an little bit of autobiography but as the reader, I think there is few unwanted details that can confuse other readers because it tends to get out of topic. Overall, I enjoyed reading this book and I really recommend this book to people who want to get some inspiration. I especially recommend other student just like me to read it as well because it can be helpful in future projects.

When Tony Hsieh, CEO of [...], Inc., tested his entrepreneurial genes with a worm business in his youth, he soon embraced Thomas Edison's philosophy, "I failed my way to success." Hsieh failed pretty good. At age 24, he sold LinkExchange to Microsoft for $265 million. Then as CEO of 10-year-old Zappos, he negotiated a stock exchange in 2009 between Amazon and Zappos valued at over $1.2 billion. But (and this will shock you), it was never about the money. Tony and his team of 700 still run Zappos. Zappos is an online retailer of shoes, clothing, bags and handbags, housewares and other products. They provide free shipping (both ways, in case your shoes don't fit) and a 365-day return policy. Their niche is customer service, customer service, customer service. So what can you learn from Tony and his team? Tons! As CEO of LinkExchange and after hitting the snooze button for the seventh time one morning, it dawned on him: he dreaded going to work. The energy, the passion, the fun was gone. "It was more like death by a thousand paper cuts, or like the Chinese water torture" Tony writes. "Drop by drop, day by day, any single drop or bad hire was bearable and not that big a deal. But in the aggregate it was torture." After he sold the company, he had this epiphany: "I didn't realize it at the time, but it was a turning point for me in my life. I had decided to stop chasing the money, and start chasing the passion." So, with his new venture capital fund, he invested in Zappos--a struggling online shoe store, and ultimately became its CEO (long story, frequent close-to-the-edge turmoil). There he discerned that building a culture was foundational to building a brand. One customer, duly impressed with receiving an order sooner than promised suggested they start Zappos Airlines. He invested in his people. They built a resource library in the lobby with over 100 business and management books. "Many of the books would eventually become required reading for our employees to help them pursue growth and learning, and Zappos would even offer classes to go over some of the more popular books." (Three cheers for the Book Bucket!) To ensure that "we continued to hire only people who would fit into the Zappos culture," they asked employees to meet with prospective new hires and describe the uniqueness of the work/family environment. Eventually, they put it in writing and self-published their own Culture Book, editing only the typos--thus allowing employees to tell it like it is. Zappos is big on transparency. For a free copy of the Culture Book, just email the company and include your physical mailing address. (Three cheers for the Culture Bucket.) In my book, Mastering The Management Buckets: 20 Critical Competencies for Leading Your Business or Non-profit, and my Management Buckets workshops, I recommend you limit your core values to five or less, because team members can't remember (or live out) more than five. Zappos may be my only exception. Their 10 core values are driven deep into the company's DNA. "Over time, our recruiting department developed interview questions for each and every one of our core values, and we test our commitment during the hiring process." Their core value, "Be Humble," affects their hiring decisions the most. (Sounds like a company I could work at.) The Zappos mission is "To live and deliver WOW." Their 10 core values include: Deliver WOW Through Service, Embrace and Drive Change, Pursue Growth and Learning, Build Open and Honest Relationships With Communication, Do More With Less, and five more. The book includes a color commentary for each core value, written by various team members. There's no stuffiness here. Instead, the practical examples and lessons learned jump off the page. "Over the years, the number one driver of our growth at Zappos has been repeat customers and word of mouth." What about social media and integration marketing? "As...low-tech as it may sound, our belief is that the telephone is one of the best branding devices out there." Whether you're a new attorney, a new accountant or a new customer loyalty team member at Zappos, your first month is invested in a four-week orientation course, including two full weeks of taking customer service calls. Yet at anytime during that orientation period, Zappos has a standing offer to give you $2,000 (plus your regular pay) to quit on the spot. That's brilliant! Zappos invests in three key areas: customer service, culture, and employee training and development (be sure to read about their Pipeline team). They quote Jim Collins who says, "If you have more than three priorities then you don't have any." "Jenn," who explains their Culture Book, describes the sum total as the "gestalt of Zappos." She adds, "By sprinkling in images of what the Zappos family does from morning to night--Marshmallow Peeps® contests, happy hours, Zolidays, the annual vendor party--we give readers a true sense of the brand in a non-obtrusive way. These aren't ads--these are pictures from our lives." Zappos clearly believes that hoopla! is a critical part of their "Zappos Family Culture." One of their core values is: "Create fun and a little weirdness." (Three cheers for the Hoopla! Bucket.) Three cheers for Zappos! (I just ordered some shoes. I couldn't resist experiencing their customer service.)

Living in Australia, and having heard a number of inspiring stories about Zappos over the years, I bought the book to learn more about their incredible story. I struggled to get through the first half of the book. In Tony Hsieh, I couldn’t relate to someone who chose to spend part of his upbringing as a professional poker player in Las Vegas. The book became meaningful to me when Tony explains how their culture was fostered and how they developed their 10 core values. This was not done by the founders but by involving every member of their team in a process that took more than 12 months. He then explains in detail how they live their values and the effect this has had on team members inside and outside of work. Two other gems for me were: 1. Tony Hsieh emphasises that the telephone is the real relationship building tool at Zappos. Most unusual for an internet company and a very different approach to their parent company, Amazon. 2. When employees log on to their computer a photo of a randomly selected employee appears on the screen. They are given a multiple choice test to name the employee. Afterwards the profile and bio of that employee is shown. What a great way of reducing silos in a growing company. Tony Hsieh did not use a ghost writer for this book which I reckon was a mistake. However, because of the insights mentioned above and the depth of his explanation about the development and evolution of their culture at Zappos, it still proved to be a worthwhile read with useful insights.

Delivering Happiness is basically one giant advertisement for Zappos, but don't let that put you off from reading this entertaining and inspiring book. Prior to reading this book, I didn't know much about Zappos other than it being an online shoe retailer. Now, I see that it is much more than a just shoe retailer. It is a company with a strong culture focused on not just customer service, but also developing relationships, having fun, and delivering happiness to its customers. The first section of the book opens with Tony Hsieh at nine years old hoping to be an earthworm farmer. After that failed attempt (since this obviously isn't a book about Tony the earthworm farmer), he relates story after story about his many money-making schemes. His parents touchingly indulge Tony in all of his business ideas. Some of his ideas failed, but some actually succeeded. I loved reading about Tony's childhood. All of his stories were humorous, charming, and above all, inspiring. The book then continues with stories of Tony's college days and his co-founding of LinkExchange, a company that Microsoft acquired for $265 million in 1998. About a quarter into the book, Zappos enters the picture. In the remainder of the book, Tony discusses the early days of Zappos, the personal risks that he took for the struggling company, and the many life lessons that he learned along the way. It is an entertaining and inspiring quick read. I highly recommend it.