Writer:

Tony Hsieh (Chinese: 謝家華; born December 12, 1973)

is an American internet entrepreneur and venture capitalist. He is the CEO of the online shoe and clothing company Zappos. Prior to joining Zappos, Hsieh co-founded the internet advertising network LinkExchange, which he sold to Microsoft in 1998 for $265 million. Both of his parents (Richard and Judy) came from Taiwan. Tony Hsieh was born in Illinois and grew up in the San Francisco Bay area of California.^[4] He has two younger brothers, Andy Hsieh and Dave Hsieh.

In 1995, he graduated from Harvard University with a degree in computer science. While at Harvard, he managed the Quincy House Grille selling pizza to the students in his dorm; his best customer, Alfred Lin, would later be Zapposs CFOand COO. After college, Hsieh worked for Oracle Corporation.

After five months, Hsieh found himself dissatisfied with the corporate environment and quit to co-found LinkExchange with Sanjay Madan, a college friend and also an ex-Oracle employee.

In June 2010, Hsieh released Delivering Happiness, a book about his entrepreneurial endeavors. It was profiled in many world publications. (R.2)

Story:

In 1998, he sold his first business, LinkExchange, to Microsoft for $250 million. Today he continues to run Zappos, which he sold to Amazon in 2009 for $850 million.

Big ideas from “Delivering Happiness”:

Develop core values – Even after building a successful startup, Hsieh realized he wasn’t happy with the culture he had built.  Not excited about going to work every day, he sold the company and decided that in his next company, Zappos, he would develop a set of core values among the team so he would always enjoy being with the people at work.  He outlines the process he created to develop and ingrain the culture.

Focus on a core competence – Hsieh wanted to do more than build a company. He wanted to pursue an inspirational mission.  After talking with other founders, he concluded that outstanding customer service with a reputation for amazing service, the company would be able to expand well beyond shoes to be an e-commerce vendor of a wide range of products.   As a low margin e-commerce vendor, however, this was an expensive and (at the time) risky decision. They made three audacious moves to purse the goal: they walked away from 30 percent of their revenues overnight, brought their warehouse capabilities in-house (in Kentucky) and moved the company (which was then almost 100 people strong) from San Francisco to Las Vegas.

Develop a great team – Hsieh knew that achieving the service quality he wanted meant he had to have the best people trained, focused and working together toward the goal.  The resulting innovative talent development program begins with four weeks on the customer service desk, followed by incentive pay to leave after four weeks (to weed out the non-comitted). From there, employees receive extensive training on the Zappos way of doing things with a focus on the steady progress and career growth they can achieve.

I was very impressed with Zappos University, and the company’s ongoing program to help employees continue to improve. By continuously investing in the pipeline of talent, Hsieh will have a steady stream of future leaders to drive growth and realization of their shared vision.

Transparency – To promote, ingrain and promote Zappos, every year the company publishes a community-generated and visible book about what the company’s culture means to the employees and partners.  It also hosts tours and shares much more information with partners than most e-commerce vendors.   The theme for these initiatives is transparency – make your goals, actions and results visible to build trust.

Pulling it all together – Hsieh’s program, BCP, stands for Brand, Culture and Pipeline.  A company’s core competence becomes what it is known for, which becomes the company’s Brand.  If people are really living to the values and mission, the culture will be easy to identify.  The Pipeline of talent, trained to execute against the core values and focused on the shared mission creates an impressive workforce.

Long-term view – Hsieh thinks about a long time horizon to achieve ambitious goals. That gives him the flexibility to make long term investments in junior talent that few competitors would seriously pursue. This long-term vision can be a problem for investors that have shorter time horizons.  When Zappos was bought by Amazon, though,  Jeff Bezos had so much respect for the model that he agreed to run Zappos as an independent business, giving Hsieh and the Zappos team room to pursue their vision.

Applied knowledge                  

Great teams make great companies – and founders and executives with a strong (and coherent) set of core values and a strong mission are the most successful.

One of my companies had five well-defined core values:  drive, integrity, collegiality, humility and intellect.  By embracing these values, we were able to manage a large scale recruiting effort growing to over 400 people with a homogeneous culture.  These values, coupled with an inspirational mission enabled us to assemble a great team and grow dramatically in people and revenues.

They also helped us build a set of lifelong relationships that have transcended that business.(R.3)

Highlights vs self- reflection:

1.p.57:Footwear is a 40 billion industry in the United States. Of which catalog sales make up 2 billion. It is likely that e-commerce will continue to grow. And it is likely that people will continue to wear shoes in the foreseeable future.(opportunity)

2.p.58:Buying a pair of shoes shouldn’t be so hard, I remember thinking. Store after store, mail after mail, I couldn’t find a single pair. It wasn’t as if I was living in Samlltown, USA, either. If I couldn’t find shoes worth buying in the Bay Area, I could only imagine the kind of trouble people had elsewhere.(facing problem)

3.p.126:We got the phone call from Wells Fargo. Everything had been approved on their end, and they were ready to sign the loan document.(money raising)

4.p.59: I thought of Zapos as the name for the company, derived from zapatos, which was the Spanish word for “shoes.”. I told him that he should add another p to it so that people wouldn’t mispronounce it and accidently say ZAY-pos(vision)

5.p.67:I learned from a book that an experience player can make ten times as much money sitting at a table with nine mediocre players who are tired and have a lot of chips compared with sitting at a table with nine really good players who are focused and don’t have that many chips in front of them.(market plan)

6.p.68: Imagine if you were the most efficient manufacturer of seven-fingered gloves. You offer the best selection, the best service, and the best prices for seven-fingered gloves-but if there isn’t a big enough market for what you sell, you won’t get very far.

(efficient e-marketing)

7.p.73: if you think we should put more money into Zappos, then we really should be spending more time with them in order to protect our investment. (decision making for investment)

8.p.98: In 2003, we would decide to make customer service the focus of the company.(customer service)

9.p.101: buyteam, win the orders from the brick and mortar stores, update software to enable Web site to sell inventoried products, build up a warehouse, open  physical retail stores, cash in need(save company strategy)

10.p.103: converted the reception area into a mini shoe store in the same building as a movie theater, a shoe store in the lobby area of a fourteen screen movie theater complex to improve inventory

11.p.123: many of the books would eventually become required reading for our employees to help them pursue growth and learning. Zappos would even offere classes to go over some of the more popular books.(reading to grow)

12.p.117: the splashing wasn’t really working so I decided to pour, the entire bottle of water all over my head. I’m pretty awake now. If I wasn’t too tired I probably would have laughed out loud, but I went back to sleep because I knew my driving shift was coming up soon(try hard to cooperate with each other)

13. p.126: We got the phone call from wells Fargo. Everything had been approved on their end. And they were ready to sign the loan document.(bank support)

14.p.176: fundamentally, we believe that openness and honesty make for the best relationships because that leads to trust and faith.(great personality)

15.p.183: while we have grown quickly in the past, we recognize that there are always challenges ahead to tackle. We believe that no matter what happens, we should always be respectful of everyone. While we celebrate our individual and team successes, we are not arrogant nor do we treat others differently from how we would want to be treated. Instead, we carry ourselves with a quiet confidence, because we believe that in the long run our character will speak for itself.(mutual relationship)

16.p.216: A big part of the reason why Amazon is interested in us is because they recognize the value of our culture, our people, and our brand. Their desire is for us to continue to grow and develop our culture and perhaps even a little bit of our culture may rub off on them( core value influence themselves and others as Amazon)

17.p.179: the most important contributions from my extended family at Zappos were support and friendship. Zappos was my refuge and healing place that gave me everything I needed to continue on with my life.( cozy company is like home)

18.p.186:It creates empowerment and control of the business, as well as a sense of pride and ownership. It makes people want to do more because they know their contribution means something.(a zest to work for it)

19.p187: The average buyer at Zappos has a portfolio of fifty brands, but because of transparency, there’s an additional fifty pairs of eyes helping run the business too. Not only that, vendors are the experts at what they do . No one buyer knows a brand better than brand’s own representative. So why not leverage their knowledge to help us run a better business?( good relationship with buyers)

20.p.185:I decided early in my career that I would create relationship and opportunities that would stand the test of time, and I was fortunate that I could rely on many of the relationships I’d already built.(good relationship)

21.p.184: I consider vendor relationships to be one of the key components to Zappos’s success.(good relationship with vendors)

22. p.184:Your personal core values define who you are, and a company’s core values ultimately define the company’s character and brand.(core value)

23.p.169:My problem with recruiting wasn’t the actual function of recruiting, it was the lack of creativity and adventure in my work that had been “killing me softly.”(problem facing)

Golden Sentence:

1.P.54:A few days later, I went to the office, sent my good-bye e-mail to the company, and walked out the door I don’t know exactly what I was going to do, but I knew what I wasn’t going to do. I wasn’t going to sit around letting my life and the world pass me by. People thought I was crazy for giving up all that money. And yes, making that decision was scary, but in a good way. I didn’t realize it at that time, but it was a turning point for me in my life. I had decide to stop chasing the money , and start chasing the passion.”

2.p.89: I was passionate about proving everyone wrong.

3.p.85: Her words stuck with me: Envision, create, and believe in your own universe.

4.p.93: We knew we had no choice but to succeed.

5.p.125: It was like being deep underwater, trying to swim up to the surface as quickly as possible to get a lifesaving gasp of oxygen.

6.p.244: Thousands of candles can be lit from a single candle.

7.p. 244: We either make ourselves miserable or we make ourselves strong. The amount of work is the same.

8.p.163: We must all learn not only to not fear change, but to embrace it enthusiastically and, perhaps even more important, encourage and drive it. We must always plan for and be prepared for constant change.

9.p.164: ride through these rocky times and produce pretty incredible results.

Conclusion:

1.      Don’t be afraid any challenge, if fail, we learn experience, if succeed, we learn helping more people.

2.      When you want something, all the universe conspires in helping you achieve it.

3.      If you respect others, others will help you achieve your dreams.

4.      "You may only succeed if you desire succeeding; you may only fail if you do not mind failing." –Philippos

5.      Why make Zappos different:

(1)    toll-free number、free shipping、free return shipping、two-way free shipping、365 days unconditional return、surprise upgrades to overnight, and non-sales based performance goals .

(2)    What we care about is being able to connect with our customers on a more personal level.  you are talking about something you are truly passionate about, your passion will take over and you will no longer be nervous, you wont need to read from the slides, and youll naturally be conversational. They spend more money in personal cost

6. Zappos was founded in 1999, the heyday of Web 1.0, Zappos did not become a bubble like many of his "classmates". Instead, it quickly grew to become the largest footwear retail website in North America within 6 years, and exceeded 1 billion in 2009. The mark of US dollar revenue. And his founder of "Taiwan Beauty" Tony Hsieh (Xie Jiahua) is a successful entrepreneur. In 1998, he sold the LinkExchange advertising platform he founded to Microsoft for $270 million, and immediately put all his money into Zappos and with the support of investors, it was sold to online retail giant Amazon for $1.2 billion in 2009

This is a notice posted in the Zappos office, which promotes the core values ​​of their team. There are many opinions worthy of our study.:

Use services to surprise customers

Embrace and pursue change

Create fun and different (work environment)

Take risks, create and accept new business

Pursue growth and learning

Establish a sincere relationship through communication (and customers)

Build a positive, family-like team

Do more with less resources

Passionate and determined

modest

What did you see? Correct! None of them mentioned "price". These ten core values, online retailing, "cutting the throat", is it not only that the industry that can compete through "continuous price cutting" is not very bad? You originally expected Tony to mention at least a little bit of "continuously returning the price to the customer", but it didnt even touch the side, but Zappos was such a successful retailer.

Happiness is the key

It turns out that Tony found that when people consume, they want to buy happiness, a pleasant experience, not just a commodity (he recently published a new book: to share his experience). So from the beginning, Tony positioned the entire organization in the service industry, not the retail industry.

In order to get the service done, Zappos pioneered "two-way free shipping", which means that you dont have to pay the shipping fee when you buy it, and you dont have to pay when you are not satisfied with the return. They are also the first to offer "365 days unconditional return" to ensure that customers satisfaction with the goods is long-term, and the happy experience is also long-term.

Employees must be happy too

To make customers happy, employees must of course love their work. In addition to the core values ​​mentioned above and the focus on the work environment, Zappos even offers a $2,000 "immediate departure bonus" after the new employee training to encourage newcomers who find unsuitable jobs to leave immediately and avoid their dissatisfaction. Corporate culture has a negative impact.

Everyone will drive down the price

So, I think if we can learn from the success of Zappos and Tony, what entrepreneurs should challenge is "creation of value." Cutting the throat and lowering the price is nothing remarkable, everyone will. But through service, innovation, value-added, and better products, customers are willing to pay a higher price, which is the real essence of entrepreneurship. Come on, everybody!

Delivering Happiness Questions by Janio:

1.      Would you jump at the big bucks? In August 2006, Tony was offered $1M for the company he had started a few months before. He turned it down. A few years later, he was offered $20M. He turned that down too. Later, he was offered $265M. He took that.

Can you imagine? For Indies, our businesses are like our babies, so our response to such a large amount of money takes into account an emotional attachment, and not just dollars and cents. Perhaps Tony felt had the same attachments, but he dealt with them in a way that allowed his “baby” to thrive in the hands of a wealthy buyer, while freeing him up to make more babies.

What would you consider if you were offered a large sum of money for your business? Would you jump at the cash early, or hold out for big bucks later on, as Tony did? See how others answered this question, and share your thoughts at the FaceBook Book Club conversation here.

p.216: A big part of the reason why Amazon is interested in us is because they recognize the value of our culture, our people, and our brand. Their desire is for us to continue to grow and develop our culture and perhaps even a little bit of our culture may rub off on them( core value influence themselves and others as Amazon)

19-year-old Harvard graduated, twenty-four years old into billionaire, twenty-eight years old lost. Thirty-six years old became the global network shoe king of the NT$25.6 billion. Tony’s crazy legend was listed as a lesson by Harvard.

He, 19-year-old Harvard graduated, won the worlds program writing championship; sold the first startup company at the age of 24, worth 40 million US dollars (about NT$1.28 billion) Was referred to as Yang Zhiyuan second.

The worlds largest online shoe store sales account for a quarter of all US footwear sales

Twenty-five years old, he and Zappos founded with Nick Swinmurm, the first person in the world to sell shoes on the Internet. At that time, no one was optimistic. He even spent all of his $40 million in three years. Even the funds of banks and venture capital burned nearly 200 million U.S. dollars. In the seventh year, he began to make money.

But today, the company has become the worlds largest online shoe store, with sales of more than 3.7 billion yuan, accounting for a quarter of all US footwear sales, even Amazons e-commerce leader Amazon (Amazon) bowed. 2009, Amazon bought Zappos for 1.2 billion U.S. dollars (about NT$38.4 billion). Tony’s price has skyrocketed and is ranked among the youngest rich list of Fortune magazine.

Amazon CEO Bezos said: "I admire the two young men (Xie Jiahua and another partner Lin Junrui), "The company culture and customer service they created is really not us." Be able to match. After the merger, Bezos let Zappos maintain independent operation, Amazon does not intervene.

2.      Dont just tell your story; shape it. On page 65, Tony says: “Help shape the stories that people are telling about you.” I think this is not only critical, but also doable in this age of digital media in which we life.

Shaping your story is different than controlling it, which is impossible anyway. The shaping of the story of your brand is a collaborative effort that takes place as you respond to the needs of your customers and give them chances to share stories of how you enhance their lives. This makes your brand come alive and ensures that it maintains its relevance over the long haul.

3.      Dont be afraid to switch tables. Also on page 65 (this is a very good page!), Tony compares business to poker: “Its okay to switch tables if you discover its too hard to win at your table.” I know nothing about poker, but I do understand this point.

My first business was making and selling soap and cosmetics in a retail store in an historic district in my hometown. I loved making the products, but it didnt take me long to discover that other people made better products than me, and that I did not like being in one place for so many hours each week. By creating IBN, I switched tables! I created a way to use my best talents and passions while remaining involved in the industry I love so much.

This is an important point for Indies, especially those who find themselves doing what they love, but not making a profit at it. Remember, you can always switch tables.

As Kenny Rogers sang, “You got to know when to hold em, and know when to fold em.” (Remember that song?)

Have you ever switched tables? See how others answered this question, and share your thoughts at the FaceBook Book Club conversation here.

4.      Dont allow yourself to be in a box. On page 66, Tony says, “Look for opportunities beyond just the game you sat down to play.” For business leaders, new opportunities are always within reach. As your first business takes flight and becomes profitable, opportunities to collaborate with other successful business leaders will come your way.

Not only can you switch tables, but you can also work with people at your current table to make new and exciting things happen.

How do you build upon the platform of your existing business to create new opportunities for yourself and others? 

Dear All,

We had a great meeting under the lead of Janio, Janio s questions triggered us to discuss lively, This is a very great book that we have so many subjects to talk:

Great themes on the value of building great relationships, the importance of a company’s culture, and servant leadership. 

·       Happiness framework 1: Happiness is really about four things:

1.      Perceived control

2.      Perceived progress

3.      Connectedness, meaning the number and depth of your relationships

4.      Vision or meaning, which is being a part of something bigger than yourself

·       Happiness Framework 2: Maslow’s hierarchy of needs in a condensed, three-layer pyramid

·       Customer: Meets expectations, meets desires, and meets unrecognized needs.

·       Employer: money, recognition, and meaning

·       Investor: transaction alignment, relationship alignment, and legacy

·       Happiness framework 3: three types of happiness:

0.      Pleasure

1.      Passion

2.      Higher purpose

·       Happiness never decreases by being shared, which highlight the books main point.  What I really like about this book is that its not only a real life story that inspires from beginning to end, but the core principles and values that Zappos displays shows that you can do something different and produce great results when you sincerely want to help others.Tony shows how insight from the Zappos culture and core values produced success, and how to live a life of happiness.

·       We greatly thank to Janio for her first leading the book discussion and brought us a very heated discussion, and a happy time as well.  Lydias conclusions is, money is nothing but health is more important than else, Carol said Lydia is a good liar as the same as the book author Toney Hsieh. Ha! Ha!.  We especially thank Torey and Mingli to discuss with us  online  and stayed with us in the long time. 

Related Reading:

1.       Book Review: https://en.wikipedia.org/wiki/Delivering_Happiness

2.       Tony Hsieh: https://en.wikipedia.org/wiki/Tony_Hsieh

3.       Book Review: https://venturebeat.com/2010/10/22/book-review-delivering-happiness-by-tony-hsieh/

4.       Brick and mortar store: https://en.wikipedia.org/wiki/Brick_and_mortar

5.       Wells Fargo: https://en.wikipedia.org/wiki/Wells_Fargo

6.       Alchemist: https://awesomeaj.com/2015/04/03/paulo-coelho-quotes-you-must-understand-to-make-your-dreams-come-true/

7.       Book review by Marlo: https://marloyonocruz.com/2018/01/20/book-notes-delivering-happiness/

8.       Questions: https://indiebusinessnetwork.com/4-questions-inspired-by-tony-hsiehs-delivering-happiness/

9.       Questions: https://www.techrepublic.com/blog/10-things/10-questions-on-customer-service-and-delivering-happiness-an-interview-with-zappos-ceo-tony-hsieh/

10.    Jeff Bezos: https://zh.wikipedia.org/wiki/%E6%9D%B0%E5%BC%97%E9%87%8C%C2%B7%E8%B4%9D%E7%B4%A2%E6%96%AF

11.    Link Exchange: https://en.wikipedia.org/wiki/LinkExchange

12.    Zappos Wow: https://tenten.co/blog/zappos/

13.    Zappos: http://mrjamie.cc/2010/06/08/tony-hsieh-why-zappos-sold-to-amazon/

14.    Web 1.0: https://www.zhihu.com/question/19911163