1851

There&#8217;s a good chance you&#8217;re already familiar with Zappos&#8212;that certain online retailer you&#8217;ve probably drained hours on while sifting through shoes, clothes and other random things. But to truly know Zappos, you first need to understand its CEO, Tony Hsieh. Under his guidance, Zappos has been operating as a full-blown &#8220;Holocracy&#8221; since 2015, an experimental way of running a company that gets rid of traditional manager roles and job titles. It&#8217;s intended to eliminate bureaucracy and fuel innovation. And it&#8217;s helped the $1.2 billion company consistently rank on Fortune&#8217;s &#8220;100 Best Places to Work&#8221; list for seven straight years (among many other things, of course). But first, let&#8217;s back track. For Hsieh, it all starts with LinkExchange, an Internet advertising cooperative he founded. He sold his company to Microsoft in 1998 for $265 million&#8212;not because he wanted the money, but because he disliked going to work for his own company. &#8220;The company culture ended up going downhill, and it ended up being not a fun place to work anymore. As the company grew and we started hiring more and more employees, we realized that not everybody we hired was good for our culture,&#8221; Hsieh told the <a href="http://bluesky.chicagotribune.com/originals/chi-zappos-ceo-tony-hsieh-company-culture-bsi,0,0.story?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-happiness-culture-zappos-isnt-a-company-its-a-way-of-life-5462" target="_blank" rel="nofollow" target="_blank">Chicago Tribune</a>. &#8220;By the time we got to 100 people, I, myself, was dreading getting out of bed in the morning to go to my own company.&#8221; When he started thinking that way, he couldn&#8217;t help but wonder how all of his employees felt. At that moment, he vowed that he wouldn&#8217;t make that same mistake when taking the reins at online retailer Zappos. That&#8217;s why, today, if you ask Hsieh what the top priority at Zappos is, he&#8217;ll say its company culture&#8212;not customer service. &#8220;Our whole belief is if you get the culture right, then most of the other stuff, like delivering great customer service or building a long-term brand or business, will just be a natural byproduct,&#8221; Hsieh said. Hsieh decided to implement 10 core values that would come to represent Zappos. Deliver WOW Through Service Embrace and Drive Change Create Fun and a Little Weirdness Be Adventurous, Creative, an 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 &#8220;Researchers found it actually doesn&#8217;t matter what your core values are. What matters is that you have them and you align the entire organization around them; and you&#8217;re willing to hire and fire people based on having nothing to do with their actual job performance,&#8221; Hsieh said. During the interview process, the human resources department at Zappos does a separate set of interviews purely for core values and culture. And Hsieh admits that they will fire people independently of their actual job performance based on whether they&#8217;re living or subscribing to Zappos&#8217; core values. <p style=" background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;"> All new Zappos employees are greeted with a four-week training program. At the end of the first week everyone is offered $2,000 to quit. The offer stands until the end of the fourth week. Zappos wants employees who really want to work for them and no one else. <p style=" background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">Everyone is challenged to make at least one improvement, every week, that makes Zappos better reflect its core values. Both personal and professional growth is expected. <p style=" background-image: initial; background-attachment: initial; background-color: white; background-size: initial; background-origin: initial; background-clip: initial; background-position: initial; background-repeat: initial;">Zappos also doesn't hire very experienced workers. They bring almost everyone in at an entry level and grow their talent from within. All employees can access 30 different courses created by Zappos exclusively for their staff. &#8220;What we learned over the years at Zappos is there is a huge, huge difference between motivating and inspiring,&#8221; the executive said. &#8220;If you can inspire your employees through a vision that has a higher purpose or by having values, then you can actually accomplish so much more, and you don&#8217;t really need to worry about the motivation part. It just kind of takes care of itself.&#8221;

1851 Franchise

Zappos might be an online retailer that hinges on customer service, but it’s ultimately its culture that comes first.


This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

The Happiness Culture: Zappos Isn’t a Company—it’s a way of life

the-happiness-culture-zappos-isnt-a-company-its-a-way-of-life

Caring Transitions

From Saving Lives to Easing Transitions: Why EMT Veteran Paul Yang Chose Caring Transitions

from-saving-lives-to-easing-transitions-why-emt-veteran-paul-yang-chose-caring-transitions

Comfort Keepers

Comfort Keepers® Achieves Major Milestones in Q1 2025 as Fully Franchised Model Accelerates Growth

comfort-keepers-achieves-major-milestones-in-q1-2025-as-fully-franchised-model-accelerates-growth

Sola Salons

Sola Salons Targets Boston for Strategic Franchise Growth

sola-salons-targets-boston-for-strategic-franchise-growth

Beansquad

BeanSquad Kicks Off 2025 with Strong Q1 Momentum and Aggressive Growth Goals

beansquad-kicks-off-2025-with-strong-q1-momentum-and-aggressive-growth-goals

Sylvan Learning

Jacksonville Daily Record: Sylvan Learning Expands in St. Johns County

jacksonville-daily-record-sylvan-learning-expands-in-st-johns-county

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

Franchise Face-Lifts: Why Major Restaurant Brands Are Betting Big on Remodels

franchise-face-lifts-why-major-restaurant-brands-are-betting-big-on-remodels

How New Tariffs Are Causing Price Hikes and Surcharges for U.S. Businesses and Franchises - 1851

Tariffs Prompt Price Hikes, Surcharges as Businesses (and Franchises) Brace for Rising Costs 

tariffs-prompt-price-hikes-surcharges

Pizza Hut - EYM Group - Chapter 11 Bankruptcy - 77 Pizza Hut Locations Sold - 1851 Franchise

77 Pizza Hut Locations Sold After Franchisee Bankruptcy Filing

pizza-hut-franchisee-bankruptcy-eym-group

franchise supplier award design with Locate AI logo and 1851 Franchise badge

Franchise Real Estate Services | Locate AI — Emerging Leaders in Franchise Support

locate-ai-emerging-leaders-in-franchise-support

Franchise Financial Reporting, Analytics and Business Intelligence | Qvinci

Franchise Financial Reporting, Analytics and Business Intelligence | Qvinci — Emerging Leaders in Franchise Support

franchise-financial-reporting-analytics-and-business-intelligence-qvinci-emerging-leaders-in-franchise-support

Photo of powerlifter, wearing red singlet and white socks, preparing to deadlift

The 5 Business and Life Lessons I Learned from Powerlifting

the-5-business-and-life-lessons-i-learned-from-powerlifting

Consulting and Development | Big Sky Franchise Team — Emerging Leaders in Franchise Support

Big Sky Franchise Team: Expert Consulting for Scalable Growth

consulting-and-development-big-sky-franchise-team-emerging-leaders-in-franchise-support

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Most Profitable Restaurant Franchises To Own in 2025 - 1851 Franchise

The Most Profitable Restaurant Franchises to Own in 2025

most-profitable-restaurant-franchises-to-own

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

The Happiness Culture: Zappos Isn’t a Company—it’s a way of life

MORE STORIES LIKE THIS