In the world of business and entrepreneurship, few names stand out as brightly as Tony Hsieh. The visionary co-founder of Zappos, an online shoe retailer, not only revolutionized e-commerce but also redefined the very essence of company culture.
In his book, Delivering Happiness, Tony Hsieh takes us on a captivating journey through the highs and lows of his life and business, offering valuable insights into the power of happiness and customer-centricity.
When you start reading the book the message is quite clear, the author shares the value and importance of reading books and his passion towards customer centricity.
First, they ignore you, then they laugh at you, then they fight you, then you win
Mahatma Gandhi
A Quick background:
- In 1996, cofounded LinkExchange which was sold to Microsoft in 1998 for $265 million
- In 1999, involved with zappos as an advisor and investor, eventually became CEO and grew the company > $1 Billion.
- In 2009 Zappos was acquired for $1.2 billion by Amazon
Getting Started – Divided into 3 sections
- Profits
- stories about the author and his early adventures
- Profits & Passion
- business oriented and philosophies the author believe in
- Profits, Passion & Purpose
- Vision at zappos and taking it to next level
The Authors claims that the purpose of this book is to give some of the highlights of the path that he took in his journey toward discovering how to find happiness in business and in life. Including the 4 core values PLUR – Peace, Love, Unity, Respect
Worm Farm Story
As a young entrepreneur, the author’s first business idea involved raising earthworms with dreams of becoming a successful tycoon. He diligently cared for them, hoping for success, but soon the earthworms disappeared. While he brushed off worm farming as boring, the truth was that he felt upset about the perceived failure.
There are lot of acronyms in the book like
- FTFK = Free stuff for kids 🙂
- BBS – Bulletin board system
- ILE – Internet Link Exchange
I think this book definitely justifies its name “Delivering happiness” as there is definitely a smile while you read like the Dialing for Dollars “Calling 976 Sexy Story” (page#22)
Didn’t I say this book will make you giggle at time – it really doesn’t disappoint you and the quote below is an example
I never actually figure out what a “strategic partnership” meant and how it was different from just a regular partnership, but everyone who said sounded smarter so we liked to use that phrase a lot
– Tony Hsieh (Delivering Happiness) page#43
Delivering Happiness
Amazon Rating: 4.6/5 (4.0 on Goodreads)
Author: Tony Hsieh
Publisher: Grand Central Publishing; Illustrated edition (March 19, 2013)
Number of Pages: 272 pages (paperback)
Best Sellers Rank: #20,967 in Books
What I love : Focus on company culture as the #1 priority. Help employees grow both personally and professionally. Seek to change the world. Oh, and make money too.
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Thoughtful Questions
- What is success?
- What is happiness?
- What am i working toward?
“There will never be another 1999. What are you going to do about it?”
Looking back, a lot of our growth happened that way. We’d just throw ideas against the wall to see if they’d stick, improvise, and make it happen.
Lessons from Poker
Evaluating Market Opportunities
- Table selection is the most important decision you can make.
- It’s okay to switch tables if you discover
- it’s too hard to win at your table.
- If there are too many competitors (some irrational or inexperienced), even if you’re the best it’s a lot harder to win
Marketing and Branding
- Act weak when strong, act strong when weak. Know when to bluff.
- Your “brand” is important.
- Help shape the stories that people are telling about you.
Financials
- Always be prepared for the worst possible scenario.
- The guy who wins the most hands is not the guy who makes the most money in the long run.
- The guy who never loses a hand is not the guy who makes the most money in the long run.
- Go for positive expected value, not what’s least risky.
- Make sure your bankroll is large enough for the game you’re playing and the risks you’re taking.
- Play only with what you can afford to lose.
- Remember that it’s a long-term game. You will win or lose individual hands or sessions, but it’s what happens in the long term that matters.
Strategy
- Don’t play games that you don’t understand, even if you see lots of other people making money from them.
- Figure out the game when the stakes aren’t high. Don’t cheat. Cheaters never win in the long run.
- Stick to your principles.
- You need to adjust your style of play throughout the night as the dynamics of the game change. Be flexible.
- Be patient and think long-term.
- The players with the most stamina and focus usually win.
- Differentiate yourself. Do the opposite of what the rest of the table is doing.
- Hope is not a good plan.
- Don’t let yourself go “on tilt.” It’s much more cost-effective to take a break, walk around, or leave the game for the night.
Continual learning
- Educate yourself. Read books and learn from others who have done it before.
- Learn by doing. Theory is nice, but nothing replaces actual experience.
- Learn by surrounding yourself with talented players.
- Just because you win a hand doesn’t mean you’re good and you don’t have more learning to do.
- You might have just gotten lucky.
- Don’t be afraid to ask for advice
Culture
- You’ve gotta love the game. To become really good, you need to live it and sleep it.
- Don’t be cocky. Don’t be flashy. There’s always someone better than you.
- Be nice and make friends. It’s a small community.
- Share what you’ve learned with others. Look for opportunities beyond just the game you sat down to play. You never know who you’re going to meet, including new friends for life or new business contacts.
- Have fun. The game is a lot more enjoyable when you’re trying to do more than just make money.
Based on the experience from Poker the author shares the 7 gloves example and advises that in business, one of the most important decisions for an entrepreneur or a CEO to make is what business to be in. It doesn’t matter how flawlessly a business is executed if it’s the wrong business or if it’s in too small a market.
Tweets to Live By
- “A great company is more likely to die of indigestion from too much opportunity than starvation from too little.” —Packard’s Law
- “You can’t stop the waves, but you can learn to surf.” —Jon Kabat-Zinn
- “Told ghost stories w/friends last night. Now wondering whether ghosts sit around campfires & tell each other People Stories?”
- “To dare is to lose one’s footing momentarily. To not dare is to lose oneself.” —Søren Kierkegaard
- Be humble: “In the beginner’s mind there are many possibilities, but in the expert’s mind there are few.” —Shunryu Suzuki
Top 10 Ways to Instill Customer Service into Your Company
- Make customer service a priority for the whole company, not just a department. A customer service attitude needs to come from the top.
- Make WOW a verb that is part of your company’s everyday vocabulary.
- Empower and trust your customer service reps. Trust that they want to
provide great service… because they actually do. Escalations to a supervisor should be rare.- Realize that it’s okay to fire customers who are insatiable or abuse your employees.
- Don’t measure call times, don’t force employees to upsell, and don’t use
scripts.- Don’t hide your 1-800 number. It’s a message not just to your customers, but to your employees as well.
- View each call as an investment in building a customer service brand, not as an expense you’re seeking to minimize.
- Have the entire company celebrate great service. Tell stories of WOW experiences to everyone in the
company.- Find and hire people who are already passionate about customer service.
- Give great service to everyone: customers, employees, and vendors.
Zappos culture in terms of 10 core values
- Deliver WOW Through Service
- Embrace and Drive Change
- Create Fun and a Little Weirdness
- Be Adventurous, Creative, and Open- Minded
- Pursue Growth and Learning
- Build Open and Honest Relationships with Communication
- Build a Positive Team and Family Spirit
- Do More with Less
- Be Passionate and Determined
- Be Humble
The author goes on creating an initial list of core values critical as part of the Culture, eventually sticks to the above 10 core values.
- Culture Is Everything
- WOW/Service
- Trust and Faith
- Idealism
- Company Growth
- Long Term
- Personal Growth and Stretching
- Achieving the Impossible
- Team
- Family/Relationships
- Emotional Connections
- Developing Your Gut
- Empowerment
- Ownership
- Taking Initiative
- Doing Whatever It Takes
- Not Being Afraid to Make Mistakes
- Unconventional
- Bottom Up (Meets Top Down)
- Partnerships
- Listening
- Overcommunicate
- Operational Excellence
- Built for Change
- Continuous Incremental Improvement
- Doing More with Less
- Innovation
- Word of Mouth
- Lucky
- Passion and Positivity
- Personality
- Openness and Honesty
- Fun
- Inspirational
- A Little Weird
- Willing to Laugh at Ourselves
- Quiet Confidence and Respect
At the end of book, the author makes us think what really “Delivering Happiness” by asking the question – What is your goal in life?
Summarize
- The Path to Zappos:
Tony Hsieh’s career was marked by a series of entrepreneurial endeavors before Zappos. From his early ventures like LinkExchange to co-founding Venture Frogs, Hsieh demonstrated his passion for innovation and risk-taking. However, it was his encounter with Zappos that changed the trajectory of his life forever.- Building a Culture of Happiness:
One of the defining aspects of Zappos is its unique culture, centered around happiness and customer service. Hsieh believed that by prioritizing employee satisfaction and fostering a positive work environment, the company could naturally deliver happiness to its customers. He emphasizes that a strong company culture can be a powerful competitive advantage.- The Importance of Customer Service:
At the core of Zappos’ success lies an unwavering commitment to exceptional customer service. Hsieh explains how investing in customer satisfaction, even at the cost of short-term profits, led to increased brand loyalty and positive word-of-mouth. Zappos’ legendary 365-day return policy and round-the-clock customer support became benchmarks for the industry.- Learning from Mistakes:
Hsieh’s candidness in sharing his mistakes and lessons learned makes “Delivering Happiness” a relatable and valuable read for aspiring entrepreneurs. From facing financial challenges to making tough business decisions, Hsieh’s journey is a testament to resilience and the importance of continuous learning.- Holacracy and Self-Management:
In the later stages of Zappos, Hsieh embraced the concept of Holacracy, a self-management organizational structure. This unconventional approach aimed to promote employee autonomy and decentralize decision-making, giving rise to mixed opinions within the company and beyond.- Beyond Business:
Tony Hsieh’s pursuit of happiness extended beyond the realm of business. His efforts to revitalize downtown Las Vegas, creating a vibrant community and fostering entrepreneurship, showcased his broader vision for societal impact and well-being.- Legacy and Lessons:
Tragically, Tony Hsieh passed away in 2020, leaving behind a legacy that continues to inspire countless entrepreneurs and business leaders worldwide. “Delivering Happiness” serves as a timeless reminder that success should not be measured solely in monetary terms but in the happiness we bring to ourselves and others.
Conclusion
Delivering Happiness by Tony Hsieh is more than just a book on business; it is a profound exploration of the human spirit and the profound impact of happiness on personal and professional fulfillment. Hsieh’s entrepreneurial journey, from Zappos’ humble beginnings to becoming a billion-dollar company, is an extraordinary tale of passion, purpose, and perseverance. As we delve into the pages of this book, we are invited to contemplate our own pursuit of happiness and how it can transform not just our lives but the world around us.
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