Zappos: A 2.0 Company
by Paula Thornton
Just before flying home from FASTforward ‘09, in February, I took advantage of being in Las Vegas to visit Zappos, an online retailer that has been repeatedly recognized for its unique culture (not to mention their own book on the subject) and embracing social media. CEO, Tony Hsieh, was even on Oprah last October. So what more could I possibly add here?
I focused ‘between the lines’ and ‘outside the box’ — the larger experience of what makes Zappos, well, Zappos. I’ve watched a lot of videos about the place, follow Tony on Twitter, and even did a brief piece on them before, but as with other 2.0 experiences, immersion makes all the difference.
The ‘get to the chase’ version:
- The Zappos environment is a full-blown corporate anomaly: full of things that most corporations would dismiss as being “unproductive”, “chaotic”, “unmanageable” and “unprofitable”.
Between the Lines: Note on video…the flags on poles…critical artifacts of the culture.
- People LOVE to work here (earning a spot on Fortune’s coveted”100 Best Companies to Work For” 2008 list). Why not? They get to follow their passions (even if they want to invite Ellen to come to Zappos) and evolve their own path of doing ‘work’, all while having LOTS of fun.
- The results: 2008 sales = over $1BIL
- Bottom Line: This crazy stuff works and they’ll even tell you how to do the same.
The ‘insights’ version:
- The Zappos experience begins way before the on-site tour. Even vendors coming on sales calls are picked up in Zappos-branded vehicles (3 SUVs and a bus in the fleet) at the airport or their hotel.
- My driver, Zack, was the Shuttle Manager. He was eager to talk about just how much he loves the company and its culture (even as a New York transplant). He worked his way into his job because he just likes to drive, which he sees a lot of: 4-5 drivers make 150-200 runs a week!
- During major conventions shuttle runs get a bit hectic, but Zack was proud that they were able to ramp up and cover 300 runs during the February 2009 CES convention (having a work culture that allows them to tap into volunteers throughout the company, makes a huge difference).
- Walking through the doors is not like entering any other company: people in motion and endless visual stimulus. Everything has been thought of, including checking in your luggage, complete with a ticket, and getting you a drink.
- Tours at Zappos are like a parade — tour guides carry a flag/banner, which alerts employees to greet guests. My guide, Jerry, while retired from Nordstrom (a company also founded on great shoe sales and service) had infectous energy that belies his ’silver’ exterior. The tour itself cannot adequately be described in words — the videos are a must watch.
Between the Lines: Our tour was cut short as CEO Tony Hsieh was available, so we headed straight for the ‘jungle’ (the location of his office) to catch Tony for his interview where he reminded me again of their ‘other’ brand 6PM.com.
- Not to downplay my chat with Tony (he gets so much press already), I was anxious to talk briefly with Alfred Lin (@Zappos_Alfred) because he holds both the COO and CFO roles, which I asked him about. His answers were insightful and his presence clearly belies his kid-like avatar on Twitter.
- I was a bit surprised to find out just how far they take their Core Value “Do More With Less”. Clearly operating as a 2.0 company, internally they leverage only very basic technology (email, wiki, blog, newsletter, word-of-mouth), in very simplistic ways — allowing for natural collaboration and connections of a tight culture to carry the rest.
- To dip yourself into the Zappos culture on an ongoing basis, be sure to check out employee voices via their many blogs.
- Oh, and did I mention, they sell shoes, accessories and clothing?
The last half of the Tour is shared in two parts.
- On average, 4-8 tours come through every day — more during the annual shoe conventions. While Jerry and Donavon are the primary tour guides, any employee can take the tour guide course and serve as a fill-in. This wasn’t staged — this is the ‘norm’ in their culture.
- The entire environment is a testament to their culture, of constant motion, immersion and learning. There are 4 bookcases at the entrance with multiple copies of ‘current reads’ for employees to grab and enlighten themselves — including Tribal Leadership (Zappos sponsors a downloadable audiobook version).
- Learning is for EVERYONE, on both sides of the coin — giving and receiving. Classes are ‘live’ and taught by employees. If you’re moving ‘up’ to a role, you’ll be taught by people currently ‘in’ the role. Likewise, you’ll teach those coming in behind you.
- Inspired by some of the things gleaned from Tribal Leadership, a more structured “Pipeline” path was created for classes. Training Supervisor, Loren Becker, readily shared the outline of the Pipeline program (which she merely had to print from the Zappos Wiki and had in my hands within minutes). Simplistic, there are:
- Core-Level Classes (in 6-month segments)
For the first 18 months of employment, a total of 213 required hours — the majority of which is “Customer Loyalty Training”, plus books to be read. - Management-Level Classes
Includes 37 required hours (with department-specific specialization added in) and 6 recommended books - Leadership-Level Classes
Includes 32 required hours (including hours to ‘teach’ classes, as noted previously).
- Core-Level Classes (in 6-month segments)
- “Introduction to Coaching” is taught by their own full-time coach for employees, Dr. Vik — who sold his Northern California Chiropractic practice to join the team (in the Part 2 video, just before we arrive at Dr. Vik’s office, someone asks Jerry to have Dr. Vik ‘come down’ when he has a moment — there are a lot of word-of-mouth activities going on all the time). Not only did I get my own Zappos Vision planner, I also got a copy of Dr. Vik’s DVD “Taking It to the Next Level” (explained briefly here).
Special thanks to Elizabeth Gregersen who handled all of my arrangements and who was patient with my questions after the fact (here’s Liz and Jerry just having fun — its encouraged to do so). My apologies that it took so long to get this posted (it’s been a steep learning curve to edit/load the videos). If there is any information in the videos that is out of date, please let me know.
For a ‘more professional’ version, check out the ABC Nightline segment.
















