Elevated HR Solutions: Taking on Tony Hsieh of Zappos? Oh boy!

Alright - so admittedly I do not have, nor will I ever have, a company that sells for 1.2 billion dollars.  I actually just have a company that's only 8 months old and there are days when I'm wondering if I'll ever sell it for 1.2 dollars...period.  And of all the businesses to run - I run an HR business with no previous experience of running a business.  So the fact that I am about to write an entire blog questioning Tony Hsieh of Zappos has to sound ludicrous to most.  And yet here I am...

For many of my readers (there are least 2 of you...at least my analytics tell me so!) you will know that I have fallen in love (platonically) with Tony Hsieh ever since the day I read Delivering Happiness.  The core values, the recruiting process, the attention to details is a great combination for employee engagement.  I have always said this will lead the way to insurmountable valuations and profits.  I've encouraged clients to adopt similar tactics and hiring processes in their organizations (at least, how I understood it).  Part of me has even been scheming about ways to move to Vegas and try to work for Zappos myself because I so enjoy the values on paper (a pipe dream really...but I mean, have you seen the cost of real estate down there???)

On April 6th, as part of the GrowCo conference held by Inc. Magazine in Las Vegas, we had the opportunity to check Zappos out.  And true to literary description, the minute I walked in I felt absolutely taken care of. From my name tag ready to go, to a nice water bottle given to me for free - it wasn't lavish, but it was definitely welcoming.  (This is the front desk.)

The minute we walked through the doors we watched a video of a handsome gentleman (who coincidentally, had a Canadian flag on his computer). We spent more time talking to him than listening to the video...besides it was the coles notes version of Tony's book anyway...boring for anyone who is as obsessive about Zappos as I was.

The only rule of the tour: Don't take pictures of financials. I'm pretty sure our tour guide, Rocco, would have kicked some serious a$$ had someone tried to take pictures anyway. We interacted with staff, took close up pictures of everything and anything and had a great time...

Then we get to the recruiting department.  Here I am, all bright eyed and bushy tailed, ready to ask questions and learn. Then someone is asked to press a bell, which launches music and the whole group (almost 10 of them) pick up those stupid shake weights and shake them in unison to a song.  In front...of everyone. (In case you don't know what a shake weight is...here is a close up...oh yeah.)

I then realized I could never work at Zappos.  I was humiliated for them.   This is the group of them (and yes I realize the irony in not only taking a picture, but posting it as well):

At any rate, I continue the tour and we get into the customer service division where Rocco tells us about the longest call on record: 8 hours and 23 minutes with nothing sold.  My new entrepreneur and operational efficiency hat blow off my head.  I mean - what was the point of that?? A beautiful friendship? Are you kidding me? Bah.  I scoffed.  And yet 1.2 billion dollars kept going through my head...

As the tour finished and the obviousness that Zappos should have stocks in the craft store, "Michaels" due to the sheer amount of crap...errr....crafts that hung from every direction possible,  that same number kept going through my head.  I mean, Tony, really?  And as I passed his incredibly dusty desk (I'm certain he's never there...not with all the junk piling up on it anyway...unless I was looking at the wrong desk...which, with all the stimuli there, I very well could have been!) the same thing kept going through my head, "But there is obviously something to this...I mean, he's got to be doing something right...I mean 1.2 billion dollars!" But what was it?

A day later I think I figured it out (now, I was in Las Vegas, slightly hazy in thought process): Instead of a massive advertising campaign or marketing budget, all of their money gets funnelled into an account that pays for walking billboards. And instead of those guys you see spinning signs on the side of the road, advertising, these guys have literally drank the kool-aid and enjoy working at Zappos.  You're never going to get the most fulfilled person to sit answering phones for a living, but if you can make it that much more tolerable, it's natural employees talk about it to their friends and anyone they come across.  And the tours (which they have a significant amount of people dedicated to) are other ways of advertising the business.  Suddenly Zappos becomes a Disneyland ride or tourist attraction and suddenly their sales go up!  It's a genius marketing campaign really - and gets to be called employee engagement instead.

But Tony - don't you think you're taken advantage of just a bit? I mean isn't there a middle ground?  Then again...why am I trying to find a middle ground when you obviously got the equation right....for you.

Elevated HR Solutions: Employee Engagement

I had the extreme pleasure of presenting to a group of business owners, CEOs and senior managers this past week on the topic of employee engagement.  I was given an hour and a half, and admittedly was initially overwhelmed of where to start.  I have often complained that the only people who are talking or caring about employee engagement are fellow HR colleagues and here I was: Presenting to the audience I've always wanted.

As much as I was there to teach and facilitate, I had the opportunity to listen and learn a lot myself.  At the end of the day I think we all were reminded that Employee Engagement isn't rocket science. Nothing I said was new or extremely innovative - just gentle reminders of how to improve it and how it can really boost an organization in terms of sales, profits, productivity and customer service.  The main points touched on were reminders that if you are having issues with motivation, complacency and employee engagement in general, it starts with the top. They have to put the time and energy in to engaging their employees.  No one else (including myself) can do it for them.

If you need help in identifying whether your employees are engaged or not - ask them.  It's a great first step!

Elevated HR Solutions: Think before you implement

Today, I had the huge honor of going to a company wide quarterly goal-setting meeting.  Not only did they score themselves on the previous quarter's results, they set new targets and goals, with dates and deadlines to meet and hit.  Really - it was an HR dream...

Two things came out of it for me:

1.) They make each other accountable for the goals that they set each quarter
2.) They aren't afraid to admit failure

I was in awe and delighted by the pragmatic and laser-like approach to the entire day-session. Yes - they spent a day developing new goals TOGETHER (as opposed to in silos like so many other companies I have been part of!)

The day also inspired the following...

Two goals were initiated by the operations/administrative department:

1.) The need for an employee handbook
2.) The need for a formalized performance appraisal system

While I applaud companies who try to be diligent around systems and processes, my question back to the team was simply, "Why do you want to formalize it? What is your end goal?"  Surprisingly, the answer back came in the form of a question, "Because it seems like it's what you're supposed to do?"

It's true - as companies start to grow, it becomes easier to manage information and communication by implementing a process or a procedure.  However, I encourage companies to ensure they know what the end result is supposed to look like before the decision is made to implement something.

So here are some questions to ask yourself and your team when deciding on whether or not to implement a new process or procedure: Will the entire management team buy in and commit to managing the same way?  Does each department or manager NEED to follow the same process and procedure?  Could this lead to more inequality down the road if there is a lack of buy in? Will it be seen as an administrative task or chore rather than something that leads to further development? 

Personally - I'm a fan of policies and procedures and performance development...but it has to fit the organization, the culture and of course, it has to promote and support employee engagement. If it doesn't, then at the end of the day you will find employees and management alike breaking (or trying to) all of the rules and ultimately defeating the purpose entirely.

www.elevatedhr.com

Elevated HR Solutions: Culture Therapy

"Wow - it sure isn't what it used to be."

"Remember when we there was no such thing as..."

"It's just different now."

Do any of these phrases sound familiar in your organization?  Start-ups suffer from it most.  As companies grow, and more employees are brought on indicating success, something funny starts to happen. The old ways of doing things, suddenly don't work anymore.  Communication doesn't seem to be as free as it once was. Change of course, is inevitable. After all, if you aren't changing, invariably, you aren't growing either. 

But is there something an organization can do to keep that passionate, energetic buzz they had when it was just a four or five person team?  The answer is an emphatic "Yes!"

First and foremost, management has to agree they want to maintain the culture. They are the ones that have to continually believe in the original principles that guided them at the onset of their success.  Management needs to remind themselves of the core characteristics that define what it means to be at the company.  In addition to that, they need to review the values that underlie the character and behavior of the organization.

One of the recommendations I make to clients who are in the 10-15 employee mark is to create a time capsule that they agree to review annually.  Write down the keys to success and review with all staff annually - this demonstrates your commitment, gets buy-in and new feedback from employees and helps to maintain storytelling.  Storytelling not only connects employees to the company, it also connects employees with each other. 

Oh and one other task for management - be sure to make everyone own the culture from today and into tomorrow.  It's everyone's responsibility - if your staff are complaining, get them to be part of the solution. Cultural therapy is a requirement that begins with management but is supported by the entire community in your organization. 

Hiring for fit, encouraging the existing employee pool with rewards and recognition, keeping production teams small and scheduling regular Q/A sessions are keys to cultural therapy as well.

Want more info? Visit www.elevatedhr.com