I friend of mine recently said, "If you're going to talk about culture, then you have to talk about Zappos." Since I agree with him, thought I'd check that assignment off my list!
Zappos started in 1999 as an online shoe retailer, and much like Amazon got their start with books, they've expanded into other retailing categories. From the consumer's perspective, they're passionate about service and believe that sets the stage for their business model and growth potential. But viewed from inside the company, they achieve this vision through one primary means: by creating a fantastic culture. In fact, the CEO, Tony Hsieh, describes culture as his number one priority.
What is Zappos like? They work from a set of ten core values. Some of these values are common among other businesses ("Deliver WOW Through Service," "Build a Positive Team and Family Spirit"). The one though, that I think speaks to the heart of who they are is "Create Fun and a Little Weirdness." "Weird" is their way of saying they value the individual…that everyone has something unique to offer, and it's those special talents that will make the difference in Zappos' success. So they're all about finding ways for each person to make a contribution and stand out from the crowd.
It was also weirdness that drove the creation of the values, as well as the ongoing evolution of the culture. When they were first starting out, Tony asked the organization to identify the values that would be most important, and they spent a year working through the discussion. So in the process, they imagined the company they most desired, and collectively gave it some shape and form. With that as a foundation, they now expect everyone to continually bring their culture to life, in whatever they choose. (By the way, that means their culture is constantly evolving to meet the needs of its employees, so a company who tries to "copy" it is going to be chasing a moving target!)
And by the way, Amazon bought Zappos last summer for close to $900 million, so a focus on building a fantastic culture clearly leads to the kind of business success investors are looking for.
Jennifer
P.S. If you do want to learn the secrets of Zappo's culture, then buy their book about it. It's written by the employees every year!
http://www.zappos.com/zapposcom-gear-zappos-culture-book-2009-edition-n-a
Wednesday, March 10, 2010
Friday, February 19, 2010
More Evidence that Engagement Pays Off
Another study was recently published which makes the link between employee engagement and profitability. This one was done by the Workplace Research Foundation in cooperation with the University of Michigan. (Full disclosure: Michigan is my alma mater. Go Blue!)
This was a hefty project. It took place over seven years (2001 to 2007) and looked at survey data from 3490 employees at 841 corporations that were listed in the Wall Street Journal 1000. Apparently this WSJ index covers 98% of the US gross domestic product, so the sample clearly cuts across Main Street.
What the researchers learned was that for every five points added to a firm's Employee Motivation Index—the instrument they used to measure engagement—it returned an additional 2% in stock price the following year.
Palmer Morrel-Samuels, PhD, was the lead author of the study. In describing his perspective on engagement, he makes a point to distinguish it from employee satisfaction. A satisfied employee is not necessarily productive; they may simply like the work environment. In comparison, when an organization is encouraging engagement, "It has to do with the intellectual challenge, pride in developing a sense of mastery and the need to make a contribution to both your job and society."
I've always believed that an enlightened organization sets in motion a wonderful virtuous circle of success. As employees become more engaged, they act in ways that benefit the organization and its customers. This in turn generates a handsome profit for the company, creating a solid financial foundation as well as the ability to reinvest in their best asset—their people. So for anyone needing a reminder, this study once again demonstrates that businesses and the people they touch all benefit from a healthy, vibrant workplace.
Jennifer
This was a hefty project. It took place over seven years (2001 to 2007) and looked at survey data from 3490 employees at 841 corporations that were listed in the Wall Street Journal 1000. Apparently this WSJ index covers 98% of the US gross domestic product, so the sample clearly cuts across Main Street.
What the researchers learned was that for every five points added to a firm's Employee Motivation Index—the instrument they used to measure engagement—it returned an additional 2% in stock price the following year.
Palmer Morrel-Samuels, PhD, was the lead author of the study. In describing his perspective on engagement, he makes a point to distinguish it from employee satisfaction. A satisfied employee is not necessarily productive; they may simply like the work environment. In comparison, when an organization is encouraging engagement, "It has to do with the intellectual challenge, pride in developing a sense of mastery and the need to make a contribution to both your job and society."
I've always believed that an enlightened organization sets in motion a wonderful virtuous circle of success. As employees become more engaged, they act in ways that benefit the organization and its customers. This in turn generates a handsome profit for the company, creating a solid financial foundation as well as the ability to reinvest in their best asset—their people. So for anyone needing a reminder, this study once again demonstrates that businesses and the people they touch all benefit from a healthy, vibrant workplace.
Jennifer
Tuesday, February 9, 2010
People are Messy
I recently facilitated a conference for the Forum for People Performance Management, and one of the livelier discussions was on the theme, "People are Messy." We were grappling with the idea that businesses have a wish for employees to be entirely predictable and dependable in their behavior. By this we mean they're never absent at inconvenient times; they never make a mistake, especially when it really matters; they don't bring personal concerns with them when they show up for work, whether it's broken pipes or sick children; the list goes on.
But in reality, people are messy, and we're messy because we're human. Things go wrong in our lives, mistakes are made and companies are impacted. However, instead of creating policies with the intent of limiting or controling the messiness, what if we simply accepted the reality of it, and designed organizations that acknowledged it?
For example, what if you abandoned the idea of set office hours, and instead told everyone to establish their own work schedule? That's what Best Buy did. Or what if you enacted the belief that productive work can happen anytime and anywhere, and rather than assign everyone a dedicated cube, you had them check out a desk to work at (assuming they needed to be in the office that day.) This practice is called hoteling, and IBM and Microsoft are among the many that use this strategy.
These are simple examples, but the idea is that when you take actions that are designed to reign in the messiness, you're probably going to fall short of your vision. And you also end up with unintended consequences. In the end, you're better off creating a system that can be easily adapted to the needs of many. The result will be an environment that ultimately brings out the best in people, even when they're being messy.
Jennifer
But in reality, people are messy, and we're messy because we're human. Things go wrong in our lives, mistakes are made and companies are impacted. However, instead of creating policies with the intent of limiting or controling the messiness, what if we simply accepted the reality of it, and designed organizations that acknowledged it?
For example, what if you abandoned the idea of set office hours, and instead told everyone to establish their own work schedule? That's what Best Buy did. Or what if you enacted the belief that productive work can happen anytime and anywhere, and rather than assign everyone a dedicated cube, you had them check out a desk to work at (assuming they needed to be in the office that day.) This practice is called hoteling, and IBM and Microsoft are among the many that use this strategy.
These are simple examples, but the idea is that when you take actions that are designed to reign in the messiness, you're probably going to fall short of your vision. And you also end up with unintended consequences. In the end, you're better off creating a system that can be easily adapted to the needs of many. The result will be an environment that ultimately brings out the best in people, even when they're being messy.
Jennifer
Monday, February 1, 2010
Pizza with Purpose
If you get a chance, pick up the February issue of Inc Magazine and check out the cover story on Nick's Pizza and Pub.
Nick's is a Chicago area restaurant started by Nick Sarillo in 1995. There are two locations, and they're enormous places designed to provide a great meal and a place to gather for family and friends. And while every town in America may have a pizza place, none are like Nick's.
Rather than focus on the taste of the crust or the speed of the service, his enterprise is about "Pizza with Purpose." He has established his business as a true partner in the community, and has created a culture that trusts his employees to work intelligently and respectfully without a "command and control" environment—and they're primarily teenagers!
He regularly hosts fundraisers for all kinds of local non-profits, and then donates 100 percent of the gross profit for the day. Right now, he's also offering "Half Price Mondays" in the dining room, and half price for takeout on Tuesday until the unemployment rate goes down.
From an employee perspective, he describes his approach to leadership as "trust and track," which is a deliberate alternative to "command and control." Essentially, he has a culture and process which trains his employees, trusts them to perform well, and then tracks their progress to the company's goals. He considers it the heart of his business success.
I got the chance to meet Nick last fall, and at first he strikes you as just a regular guy running a fun business. But when he gets going, his passion for his employees becomes clear. As he says in the article, "People really do want to have a meaningful place to work," and as he's clearly proven, the path to achieving that vision can even be by making pizza!
Jennifer
Nick's is a Chicago area restaurant started by Nick Sarillo in 1995. There are two locations, and they're enormous places designed to provide a great meal and a place to gather for family and friends. And while every town in America may have a pizza place, none are like Nick's.
Rather than focus on the taste of the crust or the speed of the service, his enterprise is about "Pizza with Purpose." He has established his business as a true partner in the community, and has created a culture that trusts his employees to work intelligently and respectfully without a "command and control" environment—and they're primarily teenagers!
He regularly hosts fundraisers for all kinds of local non-profits, and then donates 100 percent of the gross profit for the day. Right now, he's also offering "Half Price Mondays" in the dining room, and half price for takeout on Tuesday until the unemployment rate goes down.
From an employee perspective, he describes his approach to leadership as "trust and track," which is a deliberate alternative to "command and control." Essentially, he has a culture and process which trains his employees, trusts them to perform well, and then tracks their progress to the company's goals. He considers it the heart of his business success.
I got the chance to meet Nick last fall, and at first he strikes you as just a regular guy running a fun business. But when he gets going, his passion for his employees becomes clear. As he says in the article, "People really do want to have a meaningful place to work," and as he's clearly proven, the path to achieving that vision can even be by making pizza!
Jennifer
Monday, January 18, 2010
Yikes!
A recent survey done by Manpower, Inc. indicates that about 60% of people are actively looking for a new job and that another 21% are now actively networking for better opportunities. Unfortunately, this confirms a number of other recent surveys on the subject. Anyone who has been through this knows that once people start looking, the opportunities will come and people will leave, even after the business starts to rebound.
Wow! That should give any executive cause for concern. Even if you think everything at your company is hunky-dory, these numbers say you’re wrong. 81% of your people are looking!
Granted, much of this sentiment may be just “recession burn-out.” Everyone – the restructured, the down-sized, and the survivors alike – are tired. This has been a grind. The turmoil, stress, and anxiety have been intense. No wonder a significant majority want to move to some place that is better, more fun, less stressful.
That said, it still says that the time to act is now. The good news is we are fickle creatures – as happy as our current assignment, our current boss, our last positive experience. It doesn’t take much to get people re-engaged. What people want is to know that they are making a difference, that their contribution matters, and that they bring something special and unique to the business.
These are easy issues to address. They don’t require massive investment! They just require that we stop thinking about the next fifteen minutes and really start thinking about the future.
As Red, the Morgan Freeman character in Shawshank Redemption, so aptly said, “Get busy livin’ or get busy dying!” Time to get busy livin’. The time to hang on to your best people is now – before their phones start ringing. No time like the New Year to focus on your top priorities, right?
Scott
Tuesday, January 12, 2010
A Network or a Pyramid?
Although many organizations still have some form of pyramid structure to organize and connect their employees, it is rapidly fading into the background as more businesses recognize that the real work happens in a "network" fashion. Like bees in a hive, the work of employees' cuts across organizational boundaries as teams are formed from members around the world, and then quickly disbanded as activities are completed and other projects call.
Perhaps one of the biggest enablers for this new way of working has been the advent of communications technology. Starting with e-mail and then escalating to our current world of texting, tweets, blogs, chat rooms and more, we have new and effective ways to reach out and connect to our collaborators.
What's interesting is that it's taken the youngest generations—those in their teens on through their twenties—to show us the real potential for these capabilities. When e-mail first came out, business embraced it as a tool to become more efficient…you no longer needed a stamp to send your message, and it could now get there faster, thus yielding quick and tangible benefits. What's not to like?
Gen Y, though, sees today's form of communications as much more than a handy resource. Instead, it's a vivid demonstration of how connected the planet is, and how information and relationships are simply a few keystrokes away, making communications technology a great equalizer. From a business perspective, this tears down more of the rules and boundaries that pyramids represent. As stated by an HR Manager in a recent Wall Street Journal interview:
Jennifer
Perhaps one of the biggest enablers for this new way of working has been the advent of communications technology. Starting with e-mail and then escalating to our current world of texting, tweets, blogs, chat rooms and more, we have new and effective ways to reach out and connect to our collaborators.
What's interesting is that it's taken the youngest generations—those in their teens on through their twenties—to show us the real potential for these capabilities. When e-mail first came out, business embraced it as a tool to become more efficient…you no longer needed a stamp to send your message, and it could now get there faster, thus yielding quick and tangible benefits. What's not to like?
Gen Y, though, sees today's form of communications as much more than a handy resource. Instead, it's a vivid demonstration of how connected the planet is, and how information and relationships are simply a few keystrokes away, making communications technology a great equalizer. From a business perspective, this tears down more of the rules and boundaries that pyramids represent. As stated by an HR Manager in a recent Wall Street Journal interview:
"Young people today want accessibility. If they have a problem or suggestion, they'll e-mail or text senior managers, or even the CEO. They don't have the old-school notion that there are appropriate communication models. They've grown up in a freedom-of-information era."
So the next generation doesn't just see networks as a means to organize themselves and their work…they think like a network. And a workplace that thinks similarly will be creating a great place to work that attracts the best of today's talent, regardless of their age.Jennifer
Tuesday, January 5, 2010
Complexity as “The Candle Problem”
As an observer and analyst of change in the world, Daniel Pink is among the best. He coined the phrase "Free Agent Nation" long before it became the new attitude for employees in the marketplace, and he's an advocate for embracing the "right brain" in business and breaking our dependence on pure logic and order as the keys to success. Now in his latest TED.com video, he tackles the idea that the workplace consistently demands that employees apply complex, sophisticated thinking in order to perform their jobs, and that as a consequence, organizations need to take an entirely new view on how to motivate performance. What he describes is an enlightened organization.
First, Pink makes his case for complexity by introducing what he calls "the candle problem." I won't give away the details as it makes for a fascinating presentation, but bottom line, what he describes is a workplace that's less about performing predictable tasks, and more about empowered individuals working to solve difficult problems on a routine basis.
He then goes on to argue that the typical carrot-and-stick approach to motivating performance is ineffective in such an environment. Instead, he suggests that three elements need to be in place to engage employees: Autonomy, Mastery and Purpose.
In our view of an "enlightened organization," we make the same argument but simply phrase it in terms of outcomes. Enlightened employees are continually responding to two critical questions:
Check out Daniel Pink's video below.
Jennifer
First, Pink makes his case for complexity by introducing what he calls "the candle problem." I won't give away the details as it makes for a fascinating presentation, but bottom line, what he describes is a workplace that's less about performing predictable tasks, and more about empowered individuals working to solve difficult problems on a routine basis.
He then goes on to argue that the typical carrot-and-stick approach to motivating performance is ineffective in such an environment. Instead, he suggests that three elements need to be in place to engage employees: Autonomy, Mastery and Purpose.
In our view of an "enlightened organization," we make the same argument but simply phrase it in terms of outcomes. Enlightened employees are continually responding to two critical questions:
What is my unique value?
Am I making a difference?
When employees are continually challenged to bring their "A game" to work, have the freedom to demonstrate this value, and then can vividly see that they're personally contributing to a higher goal, you've created a healthy, dynamic workplace full of growth and opportunity.Check out Daniel Pink's video below.
Jennifer
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