The Company “We are a Service Company that happens to sell shoes. And handbags. And more…” America’s #1 Online Shoe Retailer 75% of sales are repeat customers Holacracy styled structure

Why is Zappos extraordinary Holacracy 5 week training program and $2000 offer to quit Full healthcare coverage and compressed work week Company culture as main priority On-site life coach/chiropractor Hire for cultural fit Connection through private Twitter network

10 Core Values Each Zappos Employee is expected to enjoy the following: 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

Changes that have been Made Amazon purchased the company in 2009, emphasizing a wider inventory and lower prices, but vowing to maintain company culture Amazon started a shoe site (endless.com) to compete with Zappos In 2014, moved toward a Holacracy style management address structural issues Eliminate hierarchy to increase innovation

Acquisition with Amazon “Over the next few days, you will probably read headlines that say ‘Amazon acquires Zappos’ or ‘Zappos sells to Amazon’. While those headlines are technically correct, they don’t really properly convey the spirit of the transaction. (I personally would prefer the headline ‘Zappos and Amazon sitting in a tree...’)” “We plan to continue to run Zappos the way we have always run Zappos-- continuing to do what we believe is best for our brand, our culture, and our business.”

Holacracy Organizational philosophy Zappos adopted in 2014 Replaces traditional and hierarchical job titles with fluctuating roles each employee is assigned Work in “circles” on designated projects and tasks About 400 circles Meant to address structural issues and increase innovation

Customer Service Record-length Customer Loyalty phone call of 5 Hours and 25 Minutes Focus on cultivating repeat customers “Fast free shipping on ALL orders” Upgrade shipping and same day delivery “WOW”

Company Culture Core values Holacratic structure Unique hiring process including motivation and happiness Holacratic structure Unique hiring process cultural fit behaviorally based questions On the job training

BOUGHT AT ZAPPOS