Zappos is about to surprise us, again.

Culture of Chaos ,Great cultures

Zappos sometimes feels more like a college than a company, given the friendships, the activities, and the learning. Even though I’m no longer there, I consider Zappos my alma mater of the corporate world. And part of the fun was always being part of something so relevant.

While Zappos hasn’t been the the media lately, I believe they’re about to rock the corporate culture world, again.

The Market-Based Dynamics system isn’t very public, but it’s out there.

Here’s a brief explanation:

1. Creating an internal market where each department purchases services from the others

In other words, there’s a whole Monopoly game going on inside.

Each department has a budget, and they spend it on services within the company. It’s a dynamic system where each department is serving each other in a highly accountable way, that also helps people think about how to be more efficient. So efficient that departments may go to outside service companies if there’s a better deal. There’s an entire software platform to run it.

2. Each cost center can now become a profit center.

Any department can sell its services outside the company as well. For example, the AV team (audio/video) has been contracted by Nike to shoot a commercial for them.

What’s game changing about this is that departments are incentivized to “Do More with Less” (core value #8), because if they get above their operating costs, then they can choose how to use the profits. For example, the AV team can use the profit to get new equipment, or to hire a new editor.

It’s a game. And it can be won.

Culture change through experience design

Zappos has always been great about creating games, rather than “motivating” people. For example, no one gives speeches on being accountable. Why? Because in training, to win the game (get into the company), you have to show up every day at 7am for four weeks or you’re cut.  People who win that game are defacto trained in being accountable.

All that said, the company has definitely not figured everything out when it comes to market based dynamics and turning cost centers to profit centers. There are a lot of open questions.

What if market based dynamics creates tense competition?

What if the internal money system does not accurately reflect the value being provided?

What if something goes wrong with those outside services that end up hurting the brand?

Disruption is risky, and courageous.

But if anyone has a history of coming out alive and creating shockwaves in the business world, it’s Zappos.

5 Hour work days?

Uncategorized

5-Hour work days? The all-star of Deep Work, Cal Newport makes a compelling case in the Wall Street Journal.

This is actually how culture work began. Factories used to have long days with no vacations, until experimentation proved that having people work less can mean more. Working less meant more long-term work due to fewer injuries and thus lower turnover costs.

Could this be our future?

If you think this is all good news, it’s not as simple as less work. The companies that do it also add more discipline such as no social media or even phones during those highly focused hours.

As usual, don’t believe this or a anything I say! Test it out for yourself and use real-world data.

The Real Path to Success (Part 1)

Great cultures ,Productivity ,Tools

Everyone knows the path to success is not a straight line, but it’s NOT total chaos like some think either:

Image credit: This Is A Book, by Demetri Martin

I think the best path is described in the book Principles, by Ray Dahlio.

Here is his image of success:

When we dive deeper into those loops, they look like this:

So I combined them here:

Without this, those loops look like this:

Sprint. Iterate. Change course.
Repeat.

How Lucky are you?

Great cultures ,Hacks ,Personal Exploration ,Tools

“How lucky are you on a scale from 0-10?”

Zappos recruiting would ask this question in interviews because people who feel lucky are generally grateful, joyful and optimistic. People who don’t feel lucky tend to believe that they haven’t been given many breaks and they can’t rely on anyone. In other words, they’re not the best team players.

I’ve thought a lot about luck over the years, because I’ve been very lucky. One of my business partners once called his “good luck charm.” He said he believed things went well when I’m around and that there’s this sense that anything is possible.

And it often triggers people when I say I’m lucky. They think luck means leaving everything to chance. They think it means taking no responsibility for what happens. And in some ways I think they’re right. I mean, how much control do we really have? And how many good things have happened that we just can’t explain? (PS – People who don’t like the word luck usually prefer the word “fortunate”).

So let me tell you what I think it is, and how I think you can get more of it.

Most people call luck the intersection of preparation and opportunity.

I call luck being at the right place, at the right time, with the right people.

If you ask very successful people what’s the one thing they would need besides money if they lost everything and had to start again – it’s their Contacts Book (also called a rolodex). The contacts I’ve met have been key to all of my success, and those moments we meet are the game changers.

I happened to be at Georgetown Leadership School at the same time as Dave Logan. And that got us into Zappos where I happened to meet Tony Hsieh with an author we both loved, which started our conversations that lead to me coming to Zappos. Before that moment I couldn’t get a job in organizational development for the life of me.

Tony would call it the power of serendipity. So he made sure all the fire exits were closed to regular traffic so that everyone went through one entrance and could meet people they would otherwise never see. Now he’s doing that with his downtown abode, where they’ve recreated a version of Burning Man.

I’ve met amazing people there, and I continue to meet amazing people wherever I go.

So here’s a few tips on how to engineer your own luck…

1. Show up early

To everything. By showing up early you create the space to meet people that you otherwise would never meet. If you’re only on time or showing up late, you close down that window of opportunity.

2. Follow the energy

When I lost everything in a venture, I didn’t want to do any kind of work… except being a Spinning instructor. And (at the time) there was no money in that. But it was the only thing I felt gave me energy.  By doing it, I increased my energy, and then brought that energy into my interactions that helped me get my next big break.  It made no sense, but I followed the energy. What

3. Assume you’re in it.

Rather than trying to find these moments (being in the right place at the right time with the right people), go into situations assuming you’re already there, and get curious about what you could learn, or contribute with them.

Have fun and tell me how it goes!