The Culture Secret: How to Empower People and Companies No Matter What You Sell

By David Vik

San Fransico, CA

• Language: English
• Publisher: Greenleaf Book Group
• Release date: Feb 5, 2013
• ISBN: 9781608324033

Book preview

Author

Introduction

From 2005 through 2009 I was honored to be the Coach at Zappos.com, which started out to be an online shoe store, and I saw the amazing things people can and will do when they are part of something special. The employees brought their lives to the Next Level and took the company to the Next Level as well.

As the Coach at Zappos, I saw an opportunity to help create the best Culture on the planet. Why was that important? Well, for starters, selling shoes isn’t really new or unique, and selling them online—where you couldn’t see, feel, or touch them—was probably not the best business model in the world … at least when the company began. Because customers requested many sizes, we needed to have 20 pairs in stock just to sell one, and shoes went out of style relatively quickly. To be successful, we had to differentiate ourselves. Service and Experience was our North Star. We were set on delivering WOW, which was the expression our customers used when they received Zappos products or interacted with Zappos employees.

Could we deliver the best service and create a WOW experience if our employees were unappreciated, un-empowered, or treated poorly? The answer was, plainly, no. We needed to align our Culture with what we wanted to deliver—the WOW! So we started with our employees; we worked to create the mind-set of winning while providing them the best service and experience and delivering the WOW. This allowed our employees to reciprocate and pass along the same service, experience, and WOW to our customers.

As Coach, even though I was part of the team within management, my focus was on working with the employees, the players. It’s like a professional sports team. Management mostly focuses on managing, making sure the seats are filled, that TV revenue is growing, and creating enthusiastic, long-term fans. But none of that will happen if the team’s thoughts, decisions, and actions are not focused on winning. That’s the reason a sports team has a Coach on the field: to coach the individual players and help empower them to reach their full potential. That, in turn, helps the team to reach its full potential.

When I arrived at Zappos, the first thing I did was to begin to create relationships with the employees. I had sign-up sheets and arranged for employees to meet with me for at least half an hour so I could get to know them better—where they were born, what happened to them after high school, where they lived, the details of their family; basically I got to know each of them as a person as well as their deal. Before long the employees came to understand that by taking time to get to know them, I really cared about them, and I truly did. I got to know each employee as an individual—as a person with dreams, aspirations, and a life outside of the company—not just as an employee. That’s just what we did at Zappos. We understood the value of relationships, and relationships eventually became one of our core values: Build Open and Honest Relationships With Communication. That was how we rolled.

The result was that the employees felt like they mattered to everyone in the organization, which was the truth. The employees, in turn, focused on treating customers like they mattered.

I wrote this book for those of you who feel trapped in your jobs and want to go somewhere where you won’t feel you’re wasting your life for a paycheck. You would certainly give back and help your company reach its potential if you found a workplace that rewarded your contributions and helped you reach your potential. You deserve that better work environment, one that elevates your life and the lives of those around you.

I also wrote this book for CEOs, those in management, and business owners who want to create a dynamic culture that attracts and retains employees, who in turn will attract and retain customers. The ideas I share with you in this book are not based on my experience at Zappos alone. I founded a chiropractic clinic in 1982, and it, too, over 20-plus years, experienced phenomenal growth. (You’ll read more about that in the Unique/WOW Factors section.) The clinic is where I learned that a culture founded on showing people that they matter—whether they’re employees, customers, or other stakeholders—makes for a business that is unstoppable. I’ve demonstrated the same results in other industries as well, as I’ve helped health-care, Internet, and services-sector companies take it to the Next Level.

There are two parts to any Culture. The first part is its structure; the second part is the living, breathing people in it. The blueprint for the structure is composed of five key aspects: what the organization or company is doing and wants to do (Vision); why the organization or company is doing it (Purpose) and how it is going to be done or what fuels it (Business Model), together with what makes it stand out (Unique/WOW Factors) and what the company and employees care about, or value (Values). All of that is described in detail in the first half of the book. The second half covers how people function inside the structure, that is, their habits, routines, and commonalities like language, beliefs, thoughts, decisions, and actions, which are created by the Culture and aligned to it. So the second half of the book includes leadership, human empowerment, relationships with customers, brand, and the desired experience that is to be delivered. When we’re inside a well-constructed and articulated Culture, we can, and should, focus on the people creating it, for they are the ones who will support, drive, and enhance an organization or company as it brings the Culture to life!

My hope, dream, and vision is that individuals, groups, teams, organizations, and those in management will implement the ideas, processes, and procedures in this book in order to take themselves, their personal lives, and their companies to the Next Level. My belief is that those people and companies will start attracting a great many others to do the same.

As you read on, please think about

What is

&

What could be

A GREAT CULTURE SHOULDN’T BE SO RARE

I was in my office at Zappos, when my phone rang, and the voice on the other end said, "Hi, this is Jonathan Schienberg, from CBS/60 Minutes." I thought it was a joke. But my phone’s caller ID clearly showed that the call was coming from CBS.

Floored, I asked him, What can I help you with? He told me that Chester Elton and Adrian Gostick had referred him to me because he was filming a segment on corporate culture for 60 Minutes. They said I was the person to talk to about Culture and empowering employees. (Chester Elton and Adrian Gostick have written many books like The Carrot Principle and The Orange Revolution and are instrumental in beginning an acknowledgment and recognition revolution in the workplace.)

Jonathan said he would like to ask me some questions, but we got to talking about the incredible effects of a great Culture like Zappos’, both within a company and in the personal lives of employees. An hour later, he had agreed to talk about scheduling a visit to do a separate segment just on Zappos, even though the filming season was wrapping up in a couple weeks.

I am forever grateful to Chester Elton and Adrian Gostick for telling Jonathan about me and Zappos and also grateful to Jonathan for switching his plans and actually understanding why it was important to focus on Zappos and its unique Culture.

However, it’s a shame that a great Culture—which puts all of its efforts into the service and experience of the employees, customers, and vendors—is so rare that 60 Minutes would do a segment about it. Cultures like Zappos’ should be the norm and not the exception in the corporate world of the Information Age. If it were, I am sure that a lot of people and companies would be much happier and that the world would be a better place.

What made 60 Minutes call is in this book.

THE SHIFT

Over the last 325 years, three major asset shifts have occurred in society. Americans have moved from the nation’s foundations in the Agrarian Age through the Industrial Age to today’s Information Age and with this progress, the asset we value most in business has also evolved.

Beginning in the 1700s, wealth was accrued by owning land and hiring others to tap its many resources, which could mean producing food or husbanding animals for transportation, sustenance, or goods. People aspired to own a piece of property they could build a home on and live off of. So in the Agrarian Age, the land was the major asset.

Then, in the 1800s, came the Industrial Age. Newly invented machines could complete, in a fraction of the time, the work that human beings did by hand. With automation and improved procedures, productivity soared. Thus machinery replaced land as the major asset.

Now, in the 21st century, countries across the world are smack dab in the Information Age. Knowledge and the people who acquired and expanded it now became the major asset. In fact, owning buildings, the land they sit on, and the equipment they house may be more of a hindrance than an advantage in business today.

Companies have been slow to learn that people are now the asset and that they can’t treat people—living, breathing assets with thoughts and feelings—the way they used to treat machines or the way landowners used to work the land. With the shift to the Information Age, employees and customers now want, and demand, to be treated as though they matter. They do matter, though business has not quite caught on to this new dynamic.

So, what’s the bottom line? Every business today has to cultivate a culture that, first, learns what motivates, empowers, and rewards its employees and, second, translates that into positive experiences for its customers. In other words, to thrive in today’s Information Age a business must evolve or dissolve.

And even a business that evolves must keep up with what is demanded by society or it will become extinct. It must understand the current wants, needs, and demands of both employees and customers.

Many Americans have been affected by the hardships caused by the collapse of the housing and stock markets, the recession, and the massively high unemployment rate. Think of the events that have occurred: employees have been rocked by the collapse of the housing market and the loss of their savings. They now want to be part of something bigger and better in the Information Age, and they certainly want to be treated like they matter. Customers who were seen as mere dollar signs have been made cynical by corporate bailouts. Today, in the Information Age, they are demanding more choice and a better experience, and they, too, want to be treated as though they matter. Finally, businesses that have been indifferent to employees and customers and have struggled through a banking meltdown now, in the Information Age, also need to evolve—offering more choice and better experiences—in order to be successful.

A business that evolves with the wants, needs, and demands of its employees and customers will survive and thrive. The ones that don’t will soon become extinct.

WHY THIS BOOK? WHY NOW?

Occasionally, when I give talks, I ask the audience members to raise a hand if they, personally, have experienced the economic trauma of the last decade or if the life of someone close to them has been negatively affected.

Virtually everyone raises a hand. And when I ask what happened, I hear the same stories again and again.

Some say that they need to get back to work because their retirement vanished with the stock market crash. Others recount that their retirement nest egg was in their house, but now that’s under water, and their equity is gone.

Some tell about an uncle’s house that was foreclosed on because of the housing collapse.

Others relate what’s happened to friends who lost their jobs in the recession.

The common denominator behind all the pain, strife, and hardship that my audiences and society have experienced is greed at the hands of executives, companies, and corporations. That greed hit a lot of hardworking people. And many of them are bitter. Even the few who weren’t affected have compassion for the ones who were.

If there’s a good aspect to this, it’s that we will be less trusting for a long time, as well as more demanding of whom we trust, where we choose to work, and whom we give our money to. It’s a sad development, but we are only protecting ourselves. After all, no one wants to be taken in again.

To succeed in the business world today, a company must interact compassionately with the disillusioned men and women, young and old, who are potential customers and employees. This is the moment to take care of people, to tell them you’ve got their back, and that you’re in their corner, not to look at them like walking dollar signs.

Just as in the Great Depression of the 1930s, over the past decade we’ve all lost a lot of what we worked for—jobs, houses, and retirement savings. For most of us, a big chunk of what we used to have is gone, and we won’t be able to forget that any time soon. Those lessons last decades. My grandmother, for instance, learned to reuse aluminum foil and dried paper towels to save money during the Depression, and she maintained the habit for more than 50 years!

The next time you try to treat your employees poorly or gyp your customers or even think about raising prices with no reason or benefit, think about your customers and their long memory. Your business with them relies on making an emotional connection, and right now everyone is attuned to even the slightest hint that someone may be taking advantage of them.

THE INFORMATION AGE—TREAT PEOPLE LIKE THEY MATTER

Step back and take a good look at a few of the companies that have been born or are thriving in the Information Age.

Facebook? Sure. People who have been beaten up by the economy want and need to heal; they are interested in connecting with others. That’s why social networking companies are taking root: They fill an important need.

Apple? You betcha! With intuitive and innovative products that are easy to use, the company makes its customers feel good and allows them to connect with friends and family more easily.

Zappos? Absolutely. The employees are treated like royalty and they, in turn, have the same appreciation for their customers. That is, I feel, one of the biggest factors underlying our success. In the end we all want to be treated as though we matter.

Amazon? Yep. People have lost a lot of their dough and savings and are working harder than ever trying to stay afloat. With Amazon’s low prices and huge selection that can be shipped right to your doorstep, the company saves us time and money, and they treat us right. What’s not to love?

And now that we’re all empowered with facts at our fingertips, thanks to the Internet, hand-held devices, and smartphones, you cannot afford to regard people as anything less than valued assets, rather than as machines or acres of land. Respect people, show them you understand what they want and need, and demonstrate that you can create a groundswell of improvements in their lives.

EMPLOYEES AND CUSTOMERS HAVE A LOT OF CHOICES

If understanding the importance of treating people like they matter is not enough to convince you that you need to take care of employees and customers, consider how many more opportunities we have today when it comes to where to work and whom we give our money to.

A hundred years ago, your choices were limited. Your job probably was on the farm or close to where you lived. Today, research shows that employees have hundreds, if not thousands, of workplaces to choose from, if they don’t mind commuting. They can choose to work remotely or for themselves. Thanks to the Internet, they may not even need a physical store or office to conduct business.

How about the customer? A century ago there were probably just a few stores nearby from which to buy goods. If there was no flour in stock, you waited for the next shipment to come in to make your bread.

Today you can shop virtually anywhere. You’re not only not limited to a store close to you, but you can also buy things from around the world with a click of a button on your computer, tablet, or phone.

So if you think you don’t have to do a really great job to attract employees or customers—and an even a better job to retain them—you are living in the past.

In the 21st-century marketplace, one misstep and your employee will leave you and your customer will fire you and go somewhere else.

The Information Age has changed everything.

The Information Age has changed everything. The employees and customers of today have a choice and a voice. They are no longer easily ignored, cheap, or disposable. So for companies, remember this: You are no longer the only gal in an Alaskan bar anymore.

And whether you’re someone who is unappreciated and underutilized at work or you’re an executive who wants to build the best culture for your company, this book will show you the techniques, ideas, and processes you need to get to take your Culture to the Next Level.

PREPARATION IS KEY

Culture is not about stuff. As I said in the Introduction, Culture first depends on a structure, which always starts with a Vision and a Purpose and includes a Business Model, Unique/WOW Factors, and Values. If those key aspects are chosen properly, your structure will attract the right people, who will create and align the language, beliefs, thoughts, decisions, and actions to it. To put the right Culture together, though, you need to prepare, take your time, and make the right choices, because—I repeat—Culture is not about stuff.

While I was at Zappos, we had a lot of people come and take a tour of our Las Vegas headquarters. There were usually between 50 and 100 folks a day, and they would all come through my office. Most of the visitors I spoke with were amazed at the Culture we had. They could feel the vibe, and they loved it. Looking around, they would see all sorts of different and even crazy things you wouldn’t expect in corporate America. For instance, executive row was called monkey row, because the plastic ivy and vines hanging from the ceiling made you feel like you were in a jungle. Kris in IT placed his desk under a tent so low you had to duck upon entering his space. The one and only Jerry Tidmore was the Mayor of Zappos. He had a bullhorn and bowls of peanuts to eat when you came by, and there were shells all over the floor.

Everyone personalized his or her own work space. I even had a throne in my office for all the employees to sit on and experience, just like my visitors did. I wanted to treat the employees like royalty, because they deserved it, and in turn, the employees would treat our customers like royalty, too, which was right in alignment with delivering WOW.

The whole of Zappos was a special place, to say the least.

Many of the visitors said they were going to create a great Culture, too, and some wanted it to be just like Zappos’. The visitors went back to their companies and did a lot of the same crazy things they had seen and liked on their tours. But a funny thing happened. They would e-mail or call me and say that what they did hadn’t worked that well. It didn’t create the culture and vibe that they had felt while touring Zappos. Why didn’t it work? Because they were literally just putting out stuff, and that had nothing to do with the structure that made up their own Culture.

That’s one of the reasons I am writing this book: to let people know how, piece by piece, to create or transform their own unique Culture.

I am back home now in the Silicon Valley,