
Don’t laugh, but I just install iBooks app on my iPhone. Also ordered an iPad2, my first tablet and e-reader. It should arrive in May. Back to iBooks on iPhone. Back to iBooks on my iPhone…I started browsing the New York Times top 20 booklist. Downloaded a bunch of them on my phone. You get to read the first chapter for free to decide whether you wanna buy the book. Very fair, I thought.
I started with one of the top business book on NYT’s bestseller list, Delivering Happiness by Tony Hsieh. Forked out U$10 via iTunes and the book landed in my hand seconds later. I zipped through the book in a week. The CEO of Zappos.com, the largest shoes and apparel online retailer, with a turnover of over U$1 billion just sold the company for U$1.2 billion to Amazon. You would expect him to talk about how to make your first million before you reach 24. After all he co-founded LinkExchange and then sold it to Microsoft for U$265 million, 2 years after he graduated from Harvard.
Instead it was his mantra about creating a culture that leads to profit, passion & purpose that got me hooked. Here are the major lessons I learned from the book:
1. Passion over Security
As a fresh grad working at Oracle, Tony was getting U$40,000 per year. Pretty handsome starting pay in the 1990s especially when you can finish your work in five hours. He wasn’t passionate about the job. Parents opposed the idea of quitting a stable job to start an internet company.
A sense of security can lull us into complacency. Sometimes the lack of security net are all we need to make our dreams work. There is no plan B, exit strategy. It’s sink or swim. I bet we would swim as hard as we could. Two years after quitting Oracle, Tony and his partners sold LinkExchange to Microsoft for U$265 million. A millionaire at 24.
2. Know your Worth
BigFoot offered to buy LinkExchange for U$2 million just five months Tony and his mate Sanjay started the project. A few months later, Yahoo came knocking with U$20 million. Ain’t a bad idea to make a few million for a few months of work. Eventually, they sold it to Microsoft for U$265 million. It is hard to quantity our worth. Sometimes it is a gut feeling. Just because we cannot justify an intuition scientifically or rationally, it doesn’t mean we should ignore it all.
3. Fail your way to Success
This is tough sell for Asians! We equate failure as embarrassment & punishment. Remember getting smacked for scoring 89 in primary school? “What happened to the other 11 points?” my inquisitor teacher interrogated. Guess why we copy others? To avoid failure!
Breakthroughs always reside outside the status quo. We cannot innovate if we insist on 100% success. Failure is part of innovation & growth. Reading Tony’s catalogue of failures freed me to embrace mistakes as part my journey to growth.
4. Create Engagement, not Buzz
Facebook & Twitter is about creating buzz for our business, according to a lot of marketers. “You’ve gotta tweet lots and post lotsa stuff on FB!” Buzz = Hype = Hot Air?
“My mother has no buzz but when she talks, I listen.”
That’s one of my favorite quote from the book. Creating buzz is like standing in a busy market, screaming “Buy here! Buy here!” The problem is a thousand other people are doing the same thing!
Why do we tell our friends about the best laksa place in Penang, coziest bed & breakfast place in Paso Robles, the most amazing book we read recently? Perhaps all these had engaged a deeper part of our beings. We can’t help but talk & tell others about it. Engagements are created by amazing experiences, not by dominating a conversation or talk the loudest.
5. Building Friendships not Network
I share Tony’s dislike for networking events where people swap business cards with hope the other person can help you out in business and vice versa. Instead, Tony prefers to focus on building relationships and getting to know people just as people…regardless of their position in the business world.
Stop looking at everyone as a $ sign, and start treating them with respect. “Would I be just as nice if there was no business interests in this relationship?” That’s my personal litmus test.
6. Culture over Mission Statement
Every company, school, church, and political parties have a mission statement. I wonder how many of these bold sounding statements actually change the organization or improve lives. Don’t favor code of conduct either because they sound too much like a inhibiting list of do’s and don’ts.
Meanwhile, Zappos build a culture based core values. For example, its number one core value, “Delivering WOW through Service”. With staff in the call center empowered to upgrade the standard shipping to overnight shipping, they wowed their clients who in turn rave about them.
To prove a point, Tony’s pals called up Zappos renown customer service line at 11pm because they were hungry and couldn’t find anyone delivering pizza at those hours. I would have hung up but the Zappos rep came back with a list of pizza deliveries in the area of the callers. In a lot of small businesses, the DNA of the organization is only evident in the key personnel. Building a service culture that permeates the entire organization is a lot harder.
7. Customer Experience over Marketing
Zappos would rather spend money to improve customer experience than on marketing. They believe that a positive customer experience is the most powerful marketing. It is not cheap to run the warehouse 24/7 or to provide a 365-day return policy but it makes people happy. It is a crazy to run a business like that…maybe that’s why their customers are crazy about them? Can Zappos radical approaches translate into healthy profits and growth? Zappos board didn’t think so and wanted to oust Tony. Food for thought…
Please don’t think Zappos is this corporate utopia where everyone walks on cloud nine. In 2008 at the peak of the financial crisis, they laid off 8% of their workforce. Tony’s commitment to building a happy culture in the company was labelled as a “social experiment” by his board. That’s what I love this book, real stories of how Tony wrestle with economic reality, a resistant board, and his ideals.
This is not a how-to book on customer service but the stories of failures and successes of Zappos narrated in first person by its CEO. With a broad stroke of honesty, candidness & audacity, it inspires me to improve my customer experience and cultivate the LPS culture. I expected Tony to be slightly abrasive and cocky since he was this internet whiz kid who made millions at 24. However he came across as foolishly passionate and rather thoughtful person.
Effective today, Delivering Happiness has become a compulsory reading at Louis Pang Studio. Get your copy!