by Paula Thornton
June 12, 2009 at 8:44 am · Filed under
2.0 Business Model, Business Model, Enterprise 2.0, FASTforward'09, Innovation, Organizational Design, Social Work-net-ing, Socialprise
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).
- “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.
by Jon Husband
March 30, 2009 at 6:48 pm · Filed under
2.0 Business Model, 2.0 Design Thinking, Collaboration, Enterprise 2.0, Enterprise Social Computing, Social Computing, Social Networking, Social Work-net-ing, Trusted Space, Web 2.0
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In November of 2008, Stowe Boyd and I were invited to speak at the soft launch of blueKiwi 2009, an innovative collaboration platform which is one of the leading European providers of Enterprise 2.0 social computing business software. Stowe began the evening’s presentation with an overview of the high-level impacts of the web on human activities, I brought that down somewhat closer to the ground by providing a perspective on the impacts of interconnection and networks on organizational and management dynamics, and Carlos Diaz, the President and CEO of blueKiwi, gave the audience an excellent overview of blueKiwi’s value proposition and the design and new features offered by the 2009 version.
blueKiwi has now revamped its web site to signal the launch of the bK 2009 version and value proposition, and is “coming out” with bK 2009 at this week’s Web 2.0 Expo in San Francisco.
Last week I caught up with Carlos and co-founder Christophe Routhieau, CTO and software architect, in order to go into deeper detail as to why blueKiwi promises both innovation and pragmatic value as a social business collaboration platform.
We started off by covering a bit of history about blueKiwi’s roots and how the platform came into being just as the Web began to have major impact on the knowledge-based workplace. Carlos and Christophe were already successful web entrepreneurs in France. Carlos and his brother Manuel co-founded the web agency groupeReflect and Christophe joined the agency in 2000, and the team managed it successfully through several business cycles, eventually selling it to Emakina, an interactive marketing agency. Carlos and Christophe said it was useful and important to the early success of blueKiwi that they are coming to the issues of collaboration and social computing from the web rather than from a starting point in the pre-web information technology world (the traditional software world).
The initial version of blueKiwi was conceived and built prior to the advent of the domain known as Enterprise 2.0 in response to client organizations that wanted to use Web 2.0 capabilities inside their organizations to communicate more spontaneously and efficiently. So they and their early clients understood that people were growing into using the Web, and wanted to use that knowledge and understanding to inform the core design principles, functionality and usability of the first version of blueKiwi, which was built and implemented at one of their key clients, Dassault Systems.
Given that all the serious Enterprise 2.0 platforms claim to focus on the sociality now seen as central to effective responsiveness and organizational agility and effectiveness, I asked them what differentiates bK2009 from some of the other leading Enterprise 2.0 collaboration platforms. For me, this is where things start to get really interesting and what I find exciting about what blueKiwi has to offer. Starting from the vantage point of the Web 2.0-savvy user, they have designed and built blueKiwi to be user-centric whilst responding to the business issues that require the building, distributing and and deploying of business-focused knowledge … the essence of social business computing, in my opinion.
bK2009 is centered on the building, nourishing and sustaining of business-focused relationships – building useful knowledge and getting things done. Carlos and Christophe pointed out that they had learned something important during the 2nd wave of blueKiwi’s adoption by clients … most collaboration systems start from the point of view of technical capabilities and do not make it easy, or overlook, the building and growing of relationships. In the past, users of collaborative platforms had to go about building their business relationships, both internally and externally, outside of the collaboration system / platform. bK2009 is first and foremost a means of building valuable and value-added relationships in the course of doing one’s work … it can enable, contain and manage all the activity in a business ecosystem.
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Digging a bit deeper, I asked them what they thought was unique about blueKiwi. Carlos and Christophe believe that not only is their product design different from competitors, but they are very enthused about breaking new ground with the “economic model” offered by blueKiwi. The feel that with bK 2009 they are breaking new ground in two ways.
First … all collaboration platforms offer spaces where people can connect, gather, share and exchange information. Thus far, the mainstream approach has been to offer spaces where people can connect and gather, and then share content … information about issues, problems, and areas of interest, and as people exchange and collaborate, useful knowledge is built. bK2009 turns this upside down, or around (you choose). It is designed on the principle that the collaborative space is there for content and its distribution, and the individual user then chooses which groups she or he wishes to engage with. Thus, any individual user can be a member of the groups they have chosen to interact with. And of course it has a Twitter clone as one of its features.
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What eventuates is a network of interaction around pertinent content, and thus over time an ecosystem around issues in which engagement is de facto defined by the users’ interest and willingness to engage. This then leads to the ability to watch and quantify the volume of interactions and obtain a better, and visible , understanding of the value that is being created (responsiveness, innovation, deepening understanding and so on).
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There are three key effects stemming from this approach:
1. there is an inherent, and ongoing, flexibility in creating and participating in (”on the fly”, said Carlos) any given group (reminiscent of Clay Shirky’s “ridiculously easy group-forming ) – the individual is always in a sense at the centre of an information ecosystem in which she or he is by definition an integral part,
2. thus, an organization’s productive social networks are developed out of the interactions between individuals (I call this the “natural sociology of knowledge work”), which in effect reproduces the dynamics of blogging or using LinkedIn or Facebook, and
3. bK 2009’s profiles reveal an individual’s contributions in a dynamic and interactive way … an user creates his or her profile, but others can add to it (a la reputation systems) and finally, the bK 2009 platform offers up various analytics on the types and foci of any user’s inter-activities.
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Second … as blueKiwi has evolved through its second wave of client installations, what it learned was the practical logic of Metcalfe’s Law of Networks, whereby the value of a network is proportional to the square of the number of connected members of the network (debate continues, as you will note in the links and citations at the bottom of the Wikipedia entry). To date, the standard model of pricing for social computing / social business platforms involves fees based on the number of seats or users. The more users, the larger the fee, and the fewer the users, the less the fee. So, many organizations begin with pilots, or make decisions about enhancing collaborative capability that involve decisions about the difficulty and costs of customization of their installation of Sharepoint or IBM Lotus Connections.
Back to Metcalfe’s Law … blueKiwi believes that organizations should realize that collaboration in connected networks is the way work will be done all the time in the near future, and so organizations should seek to enroll and engage the entire organization in the use of the collaborative platform. Thus, the fees to use bK2009 are based on the levels of user activity each month. As activity increases the value to the organization increases, and accordingly blueKiwi’s revenues from that client increase. Conversely, if there is no activity, there is no revenue to blueKiwi.
This is essentially like pricing a utility, like paying for electricity or water … so, if eventually all or almost all knowledge work is going to happen on a collaborative platform, it makes sense that the platform and its capabilities be seen as one of the organization’s necessary utilities. As activity increases and the value to the organization increases, so should the price paid for the capabilities that help create the value. Technology is thus not a cost per se, rather the activity the technology enables reflects the price and value of the utility, and the users determine the ROI.
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Regarding its positioning in the Enterprise 2.0 market space, Carlos stated that bK 2009 is coming from the position of having “nothing to defend”. What does he mean ? He means that, for example, Sharepoint or IBM Lotus have fundamental technology assumptions and massive installations to defend, whereas blueKiwi is a new player, one that is coming from origins in / on the web as opposed to previous, pre-web IT design principles and architecture. They (blueKiwi) watched consumer behaviour on the web, Dassault Systems asked them to help build a system for more spontaneous, efficient and effective exchanges of information and knowledge, and the result after several years of intense design, development and deployment is a collaborative platform that in my opinion more closely mirrors the natural sociology of knowledge work than any other platform about which I know. The fundamental design principle stems not from the “technology” that supported existing work processes, whereby the design and architecture of the technology drives the way(s) users operate it (or try to do so), but from how people exchange and use information and knowledge.
bK 2009 is a “social technology” .. a couple of other capabilities reinforce this position. bK 2009 enables users to plug in and use a range of widgets so that they can take advantage of a wide range of pertinent socially-generated information and knowledge (this is closely aligned with some of my previous mutterings about mass customization / mass personalization of knowledge work). As both Carlos and Christophe stated, the ultimate goal is have organizations recognize that bK 2009 is effectively a layer over the organization’s existing IT architecture, and that it can and should operate as a strategic complementarity to existing databases, enterprise search engines, security functions and so on. It’s a social technology, and blueKiwi wants existing and future client organizations to see its design and capabilities as offering a “Social Hub” that complements an organization’s existing industrial-strength information technology architecture and investments.
Over and above the offering for large enterprises considering Enterprise 2.0 possibilities, blueKiwi is also now offering bK2009 Pro Edition for small and medium-sized organizations, for a flat (and affordable) fee. An interesting wrinkle … it allows such organizations to invite external members of its value web to join and interact. So, effectively it is providing these organizations with what they would today seek to accomplish by setting up a Facebook group (effectively side-stepping any potential hassles with Facebook privacy or Facebook owning all the member data). Neat !
I was impressed by this company and its people when I spent time with them, and I remain impressed. Can you tell ?
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UPDATE: If you want to know more about bK2009 or can’t see the detail on the screen shots well enough to understand as well as you’d like to, here are three short, well-produced video clips that help explain how bK2009 helps Foster Conversations, Build Efficient Networks and Bring People Together.
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by Paula Thornton
July 4, 2008 at 4:05 pm · Filed under
2.0 Design Thinking, Change, Enterprise 2.0, Social Networking, Social Work-net-ing, Socialprise
On this day of celebration of the United States revolution, I was celebrating the potential of another great revolution. Via social media and social networking, the stars and the moon aligned and the Age of Aquarius came into view.
While the theme of FASTforward ’08 was the User Revolution, the various keynote presentations actually presented compelling evidence for an even larger revolution: fundamentally redefining business models. I regularly leverage Don Tapscott’s allusion to an economic tsunami, and the corresponding revolutionary responses. But today I leveraged it in yet another critical way.
If there need be a voice to lead the charge in this revolution, the most credible voice is that of Jeffrey Hollender, President of Seventh Generation.
It occurred to me today that Jeffrey has quietly been engaged in the larger social ‘conversation’ for a long time — albeit in more traditional form of a newsletter, with a personal message from Jeffrey in each issue. But this realization only came about as a result of the serendipitous social-crossing (a random Twitter reference found) of a talk Jeffrey gave last month, at Sustainable Brands ’08.
My true enneagram one self was emotionally jumping up and down while listening to the following thoughts:
Just to give you a little context on where Seventh Generation is, after around 2000 the business was growing at about 25-30% a year. Last year the business grew 45%. This year-to-date, we’ve grown 65%.
I’m going to talk about something hard to see…something going on inside the company…the most challenging part of the equation…to build a culture…
Then he goes on to share artifacts of same.
If we come out with a marketing claim, are people in the company comfortable challenging that claim?
It also deals with things like my compensation [“Our Compensation Principles and Beliefs”]
Everybody gets a free massage every week…that’s an easy thing to do. [this is where my screaming kicked up a decibel or two] It’s easy to let dogs run around the office.
We provide 100% paid health insurance for our employees.
We ABSOLUTELY believe that employees should have an ownership stake in the company. You can’t build an equitable, responsible company if your people…don’t own part of that company.
I think that equity and justice don’t particularly exist inside most companies.
Yes, a fundamental element of Seventh Generation is social responsibility. But Jeffrey takes social responsibility to the next level, by investing in the social health and well-being of his employees. Socialprise is about fundamentally redesigning an organization around the strength of the human element. It’s about finally overthrowing over-yang’d classic business models with a healthier balance of yin. It is through the healthy balance that a company will be better prepared to survive the buffets of the economic onslaught.
Why? Because just as a tree that spreads and digs its roots deep, an enterprise is made more stable through the strength afforded it by all of its relationships. Socialprise is an enterprise that understands and capitalizes on the most important economic factor responsible for its existence: Relationship Equity.
Seventh Generation has always been fundamentally grounded in the definition of a Socialprise. They’ve not allowed newer forms of the social exchange to pass them by. Just last week, Seventh Generation started a Twitter account, to highlight key messages including posts from Jeffrey’s blog, Inspired Protagonist. I’m thrilled because I rely upon Twitter as a messaging filter more than RSS (as do others).
And now Jeffrey has joined forces with others to redefine The Future of Management, as instigated by Gary Hamel.
Mr. Hollender, count me in as a revolutionary recruit.
