Ah, the wisdom of Tony Hsieh! As I reflect on his journey, from building a successful startup like Zappos to sharing his experiences through his book, "Delivering Happiness," I'm reminded of the importance of applying timeless wisdom to our own lives and businesses.
Before Zappos, Tony embarked on several entrepreneurial journeys, including trying his hand at being a poker player. His best lesson in poker? Never enter a game without understanding what happens. In other words, never invest in something that doesn't make sense.
This wisdom has served me well throughout my career. I always thoroughly research the company before applying for a job. I'm skeptical if an offer seems too good to be true. Don't get me wrong; it's tempting to chase after "fool's gold" (my phrase), but experience has taught me that it's better to err on the side of caution.
Testing Business Ideas
In 2012, I was naive about startups, product development, and agile methodologies. I thought building a company required a lot of capital upfront, followed by launching a product to the masses. It wasn't until I read about Tony testing his Zappos hypothesis that I began to understand the importance of experimentation.
Tony set up a simple website with shoe photos, took orders without inventory, and ran to local stores to fulfill them. This low-cost approach validated his assumptions and allowed him to refine his idea. Ah, the power of iteration!
Customer Centricity
Tony Hsieh is renowned for building Zappos into a customer-centric company that just happens to sell shoes. His definition of customer service is integrated end-to-end – it starts from their core offering. Zappos squashes customer anxiety by offering 365-day free returns and legendary customer service.
Their call center operates 24/7, with operators having no script or time limits. Their goal? To help customers, even if that means referring them to a competitor. This approach has earned Zappos its reputation as a customer-centric company.
The Importance of Culture
Before building Zappos, Tony founded LinkExchange, which was acquired by Yahoo. However, when the startup grew, he felt uncomfortable with his colleagues. He felt uninspired and didn't want to go to work in his own company. The culprit? A lack of effort in developing a company culture.
Tony realized that if Zappos wanted to build a brand based on customer service, then their culture should support that. Hence, the creation of 10 core values that drive decision-making throughout the company:
- Deliver WOW through service
- Embrace and drive change
- Create fun and little weirdness
- Be adventurous, creative, and open-minded
- Pursue growth and learning
- Build open and honest relationships with communication
- Build positive team and family spirit
- Do more with less
- Be passionate and determined
- Be humble
These values are not just lip service; they're the foundation of Zappos' decision-making process.
A Personal Epiphany
"Delivering Happiness" was my gateway drug to other business books, including Gladwell's, Dubner's, and Lewis's. This book made me realize that business is exciting, and maybe I'm more suited for this field than being a software engineer (my previous career).
I switched careers the following year, from engineering to corporate strategy, and never looked back since.
Tony Hsieh's story is a testament to the power of wisdom, experimentation, customer-centricity, and culture. His journey has inspired me to reevaluate my own approach to business and life.
If you're interested in reading more about Tony's stories or learning from his experiences, I encourage you to check out his episode on the "How I Built This" podcast.