maggie hsu beyond return on investment: tracking return on community & wellness
TRANSCRIPT
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Beyond ROI: Tracking Return on Community & Wellness
Maggie HsuCornell Hospitality Health & Design SymposiumOctober 10, 2016
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Acquired by Amazon in 2009 for $1.2BN
Online shoe & clothing retailer founded in 1999
HQ in Las Vegas; 1,500 employees
CEO Tony Hsieh
Culture & 10 core values
ZAPPOS.COM
Self-managed organization (Holacracy)
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CUSTOMER SERVICE STORIES
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SIMPLE METRICS
1. Time to answer2. Was the customer
“Wow”ed?
1. Length of call2. After call work time3. First call resolution4. Schedule adherence5. Abandonment rate
.
.
.
Longest recorded call is over 11 hours!
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RESULTS
• Greater customer loyalty over time• Greater share of wallet
• Lower employee turnover• Higher employee happiness and engagement
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DESIGN FOR… HEALTH
CONNECTION
INNOVATION
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DESIGN FOR… HEALTH
CONNECTION
INNOVATION
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Zappos prioritizes employee health (mental and physical) OVER bottom-line cost
Wellness Director
Life Coaches
Charity/CSR Director
Sustainability Director
HEALTH
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• On-site gym• On-site fitness and health classes• Financial literacy classes• Pay for employees to enter races• Pay for on-site Weight Watchers• On-site dental cleanings• Free smoking cessation classes• Nap rooms• Exercise/activity rewards• Desk treadmills• On-site massages
9
WELLNESS
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DESIGN FOR… HEALTH
CONNECTION
INNOVATION
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LAS VEGAS CITY HALL
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DESIGN FOR “COLLISIONS”
• Replicate water cooler or smoking moments
• Increase camaraderie and trust
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ELEVATOR GAMES
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Unfortunately, I don’t recognize this Zapponian
I recognize them but don’t know anything about them
I recognize them but only know their name or department
I kind of know them
I know them pretty well
I know them inside and out!
How well do you know…Tony Hsieh?
MEASURING TRUST
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DESIGN FOR… HEALTH
CONNECTION
INNOVATION
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For every 100 feet of "zonal overlap," collaborations increased by up to 20%
OFFICE LAYOUT
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Sitting twice as far = seeing half as often, squared
• 100 sq ft per person
• Allow for “collisions”
OFFICE LAYOUT
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“BETA TEST” PHYSICAL SPACE
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ROI vs. ROC & ROL
Instead of maximizing short-term ROI (Return On Investment)...
We focus on maximizing long-term ROC (Return on Collisions)
and institutionalizing ROL (Return On Luck) – Accelerating Serendipity
ENGINEERING SERENDIPITY
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Greg Lindsay
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Steven Johnson
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Biology Matchmaking Hospitality
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Design the right conditions, not the
right output
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• At Buurtzorg in the Netherlands, nurses are self-managed in small teams – no bureaucracy
• Results:
• Faster healing
• Half the amount of care
• One-third fewer ER visits
• Shorter average stays
SELF-ORGANIZATION
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Culture + Self-organization + Collisions
Leads to…
Increased organizational innovation and resilience
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NEW BUSINESS LINES
The Zappos corporate strategy team is looking to identify areas where its focus on a great customer experience could help Zappos disrupt and dominate a new market.
The team has brainstormed entering classic service industries, with something like a Zappos hotel or airline. And it has explored, seemingly in some depth, “even crazy stuff, like porta-potties,” Hsieh said.
Tony HsiehWashington Post InterviewDecember 2015
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ZAPPOS PORTA-“PARTY” (VIDEO)
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ZAPPOS WELLNESS HOTEL