credit suite sundance 2013 02 - zappos dtp
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Culture is to a company as community is to a city: it's about values, innovation, serendipity, participation, upward mobility, and attraction of smart startups and the creative class. Tony is applying his very successful Zappos corporate culture model (recognized multiple times by FORTUNE as one of the top 100 best places to work) to help build the most community-focused large city in the world in the place you would least expect it: Downtown Las Vegas. Research has shown that every time the size of a city doubles, productivity and innovation per resident increases by 15%, but when companies get bigger, productivity per employee generally goes down. With his new $350 million Downtown Project, Tony is creating a unique hybrid of corporation, community, and city to drive productivity and innovation both for Zappos as well as the city itself.TRANSCRIPT
ZAPPOS.COMDELIVERING HAPPINESSDOWNTOWN PROJECT
Downtown Project
CollisionsCommunityCo-Learning
Slide 3
Slide 4
A Little About Me (Tony)
• 1994-1995: Pizza business in college
Slide 5
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
Slide 6
A Little 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.
Slide 7
A Little 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.
Slide 8
A Little 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
• 2010: NYT bestseller Delivering Happiness published
Slide 9
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
Slide 10
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?
Slide 11
the #1 priority
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the #1 priorityCULTURE
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the #1 priorityCULTURE
4 weeks of training
Culture book
$4000 offer
Hiring for culture
Slide 14
CULTURE“Committable Core Values”
Don’t make your core values just a meaningless plaque on the wall…
Slide 15
Example: Core Values
1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble
Slide 16
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
Slide 17
Clothing
Slide 18
Customer Service
Slide 19
Culture
Slide 20
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
Slide 21
Delivering Happiness(customers and 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
Slide 22
Building Great
Slide 23
CULTURE“Committable Core Values”
Don’t make your core values just a meaningless plaque on the wall…
Slide 24
VISION
“Whatever you’re thinking, think bigger.”
Does the vision have meaning?
Chase the vision, not the money…
Slide 25
VISION
“Don’t chase the paper, chase the dream.”
Sean Combs aka “Puff Daddy” to rapperBiggie Smalls aka “Notorious B.I.G.”
in Notorious
Slide 26
Evolving vision and brand at Zappos.com
1999 Selection
2003 Customer Service
2005 Culture and core values as our platform
2007 Personal Emotional Connection
2009 Delivering Happiness
Slide 27
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”
Slide 28
Zappos.com
http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg
Slide 29
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
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Nike
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
Slide 31
http://static.panoramio.com/photos/original/400729.jpg
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Apple
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
Slide 33
Doggy Day Care
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
Slide 34
NYU Campus
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
Slide 35
Downtown Vegas - Fremont East
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
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Downtown Vegas - Fremont East
http://www.lucyvegas.com/sites/default/files/griffin5.jpg
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Downtown Vegas - Fremont East
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Downtown Vegas - Fremont East
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
Slide 39
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Slide 40
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Community
Slide 41
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 42
DOWNTOWN PROJECT GOALS
Slide 43
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
Slide 44
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large City in the World
Slide 45
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large City in the World
The Co-Learning and Co-working Capital of the World
Slide 46
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
Slide 47
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC
Slide 48
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)
Slide 49
ROI vs. ROC and ROL
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL
Slide 50
ROI vs. ROC and ROL
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL(Return On Luck) – Accelerating Serendipity
Slide 51
THE BIG BET
Accelerating Collisions, Community, and Co-Learning
Slide 52
THE BIG BET
Accelerating Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,Innovation, and Productivity
Slide 53
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
Slide 54
$50M – Small Businesses
Slide 55
$50M – Small Businesses
Criteria
Slide 56
$50M – Small Businesses
Criteria Owner Operated - Passionate
Slide 57
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community
Slide 58
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability
Slide 59
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable
Slide 60
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at
Something
Slide 61
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at
Something Story-worthy
Slide 62
Natalie
Slide 63
Natalie
Slide 64
Natalie
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Natalie
Slide 66
Natalie
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Natalie
Slide 68
Check Cashing
http://www.vegaschatter.com/files/100501/checks_cashed..jpg
Slide 69
Check Cashing
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Sarah
Slide 71
Sarah
Slide 72
Sarah
Slide 73
Shipping Containers
http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg
Slide 74
Shipping Container Park
Slide 75
Shipping Container Park
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Shipping Container Park
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Shipping Container Park
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Bike Sharing
Slide 79
$50M – Tech Startups
http://img-s.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg
Slide 80
$50M – Tech Startups
http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576
Slide 81
The City as a Startup
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
Slide 82
$50M – Startups
http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
Slide 83
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 84
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 85
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 86
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
Slide 87
$50M – Education, Arts, Culture
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
Slide 88
$50M – Education, Arts, Culture
http://mikerossart.net/images/mikeross_enter.jpg
Slide 89
$200M – Real Estate
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 90
WHEN CITIES DOUBLE IN SIZE…
Productivity and innovation per resident increases by 15%
(But not true for companies)
Accelerate serendipity -> Accelerate learning -> Accelerate productivity and innovation
Slide 91
3 INGREDIENTS FOR SERENDIPITY
1. Residential density of 100 residents/acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration, creativity, and optimism
Slide 92
HOW TO ACCELERATE LEARNING & INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
Slide 93
DIFFERENT GROUPS COLLIDING
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
Slide 94
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Company
Slide 95
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Companyas
Community is to a City
Slide 96
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Companyas
Community is to a CityValues
InnovationSerendipity
ParticipationUpward Mobility
Attracting Startups and the Creative Class
Slide 97
Our Secret Weapon
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
Slide 98
LEARNING FROM TED, SUMMIT SERIES, SXSW, BIF…
Curated ContentSerendipity
LearningConnectionsCommunity
Slide 99
Downtown Vegas Every Day
Curated ContentSerendipity
LearningConnectionsCommunity
Slide 100
Fremont St. & Las Vegas Blvd.
Slide 101
Fremont St. & Las Vegas Blvd.
Slide 102
Fremont St. & Las Vegas Blvd.
Slide 103
Fremont St. & Las Vegas Blvd.
Slide 104
Fremont St. & Las Vegas Blvd.
Slide 105
Fremont St. & Las Vegas Blvd.
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Fremont St. & Las Vegas Blvd.
Slide 107
Fremont St. & Las Vegas Blvd.
Slide 108
Fremont St. & Las Vegas Blvd.
Slide 109
Downtown Vegas Monthly Cadence
Slide 110
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
Slide 111
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Slide 112
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Week 3 – Fashion Week
Slide 113
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Week 3 – Fashion WeekWeek 4 – Catalyst Week
Slide 114
Fashion Incubator – Stitch Factory
Slide 115
Fashion Incubator – Stitch Factory
Slide 116
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
Slide 117
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/day
Slide 118
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
Slide 119
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
x 40 weeks/year
Slide 120
Collisions, Community, Co-Learning
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
x 40 weeks/year= 1000 “collisionable” hours/year
Slide 121
Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-It-b.jpg
Slide 122
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
Slide 123
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/day
Slide 124
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
Slide 125
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
x 12 weeks/year
Slide 126
Collisions, Community, Co-Learning
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
x 12 weeks/year= 1000 “collisionable” hours/year
Slide 127
Collisions, Community, Co-Learning
“Subscribe” toDowntown Vegas
Slide 128
Collisions, Community, Co-Learning
1. 100 residents per acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration, creativity, and optimism
Slide 129
Collisions, Community, Co-Learning
1. 100 residents per acre
Slide 130
Collisions, Community, Co-Learning
1. 100,000
Slide 131
Collisions, Community, Co-Learning
1. 100,000 “collisionable”
Slide 132
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community
Slide 133
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours
Slide 134
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per
Slide 135
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre
Slide 136
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre per
Slide 137
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre per year
Slide 138
Collisions, Community, Co-Learning
1. 100,000 “collisionable” community hours per acre per year
2.3 collisionable hours per square foot
per year
Slide 139
OUR BIG BET… 3 Guiding Principles
Accelerate:1.Collisions2.Community3.Co-Learning
And everything else will fall into place…(productivity, innovation, growth, happiness)
What will people say about downtown?
Slide 140
“Downtown VegasWill Make You Smarter”
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg
Slide 141
ZAPPOS, DELIVERING HAPPINESS, DOWNTOWN PROJECT
Slide 142
50% of Humans Live in Cities
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 143
75% Will Live In Cities in Our Lifetime
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
Slide 144
The 4-Minute Mile
Slide 145
The 4-Minute Mile
http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG
Slide 146
www.DowntownProject.com
http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg