barron's magazine's top advisory teams summit_july 17, 2013

ZAPPOS.COMDELIVERING HAPPINESSDOWNTOWN PROJECT

Downtown Project

CollisionsCommunityCo-Learning

A Little About Me (Tony)

• 1994-1995: Pizza business in college



• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million




• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.





• 1999-Today: Zappos.com, Inc.





• 1999-Today: Zappos.com, Inc.

• 2009: Amazon acquires Zappos for $1.2 billion

• 2010: NYT bestseller Delivering Happiness published

The Power of WOW

‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08

Gro

ss S

ale

s $M

M

$1,000

800

600

400

200

Customer Experience What do customers expect?

What do customers actually experience?

What emotions do customers feel?

What stories do they tell their friends?

How can culture create more stories and memories?

the #1 priority

the #1 priorityCULTURE

the #1 priorityCULTURE

4 weeks of training

Culture book

$4000 offer

Hiring for culture

Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Clothing

Customer Service

Culture

Clothing, Customer Service, Culture

Customer Service

Clothing

Culture

Delivering Happiness(customers and employees)

“People will forget what you said.People will forget what you did.

But people will never forget how you made them feel.”

-Maya Angelou

Building Great

Ingredient #1

CULTURE“Committable Core Values”

Don’t make your core values just a meaningless plaque on the wall…

Example: Core Values

1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble

COMMIT TO TRANSPARENCY

“Be real and you have nothing to fear”

Your culture is your brand

Don’t try to be someone you are not

Parades at Zappos…

“That’s great…

“That’s great…but it would

never work at my company…”

ALIGNMENTIt doesn’t matter what your

core values are…as long as you

commit to them.

Ingredient #2

VISION

“Whatever you’re thinking, think bigger.”

Does the vision have meaning?

Chase the vision, not the money…

VISION

“Don’t chase the paper, chase the dream.”

Sean Combs aka “Puff Daddy” to rapperBiggie Smalls aka “Notorious B.I.G.”

in Notorious

ENTREPRENEURS:

“What would you be passionate about doing for 10 years even if you never made a dime?”

EMPLOYEES:

What’s the larger vision and greater purpose in

their work beyond money or profits?

MOTIVATION

MOTIVATIONvs.

INSPIRATION

Vision & Cultureinspire

Passion & Purpose

Evolving vision and brand at Zappos.com

1999 Selection

2003 Customer Service

2005 Culture and core values as our platform

2007 Personal Emotional Connection

2009 Delivering Happiness

Questions Where does the story begin?

Where does the story end?

How do you reinforce the good memories?

What were the emotions, positive and negative?

How can you create more stories and memories?

What’s your business? You’re not in the _______ business.

Cirque du Soleil is not in the circus business.

You’re in the experience and emotions business.

You’re in the stories and memories business.

Think bigger.

Delivering Happiness - What’s Next?

Clothing

Customer Service

Company Culture

“a great brand is… ______”

Zappos.com

http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg

Las Vegas City Hall

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

Nike

http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg

Google

http://static.panoramio.com/photos/original/400729.jpg

Apple

http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg

Doggy Day Care

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

NYU Campus

http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG

Downtown Vegas - Fremont East

http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg


http://www.lucyvegas.com/sites/default/files/griffin5.jpg


http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg

DOWNTOWN PROJECT - $350M

$ 50M – Small businesses

$ 50M – Tech Startups

$ 50M – Education, Arts, Culture

$200M – Real Estate

DOWNTOWN PROJECT GOALS


Live/Work/Play – Walking Distance



The Most Community-Focused Large City in the World



The Most Community-Focused Large City in the World

The Co-Learning and Co-working Capital of the World

ROI vs. ROC

Instead of maximizing short-term ROI (Return On Investment)…

ROI vs. ROC


We focus on maximizing long-term ROC

ROI vs. ROC


We focus on maximizing long-term ROC (Return On Community)

ROI vs. ROC and ROL


We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL

ROI vs. ROC and ROL


We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL(Return On Luck) – Accelerating Serendipity

THE BIG BET

Accelerating Collisions, Community, and Co-Learning

THE BIG BET

Accelerating Collisions, Community, and Co-Learning

…will lead to…

Happiness, Luckiness,Innovation, and Productivity

DOWNTOWN PROJECT - $350M

$ 50M – Small businesses

$ 50M – Tech Startups

$ 50M – Education, Arts, Culture


$50M – Small Businesses


Criteria


Criteria Owner Operated - Passionate


Criteria Owner Operated - Passionate Helps Build Community


Criteria Owner Operated - Passionate Helps Build Community Execution Ability


Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable


Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at

Something


Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at

Something Story-worthy

Natalie

Check Cashing

http://www.vegaschatter.com/files/100501/checks_cashed..jpg

Check Cashing

Shipping Containers

http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg

Shipping Containers

Shipping Container Park

Bike Sharing

$50M – Tech Startups

http://img-s.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg

$50M – Tech Startups

http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576

The City as a Startup

http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png

$50M – Startups

http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg

$50M – Education, Arts, Culture

http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg


http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg


http://mikerossart.net/images/mikeross_enter.jpg


http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg

WHEN CITIES DOUBLE IN SIZE…

Productivity and innovation per resident increases by 15%

(But not true for companies)

Accelerate serendipity -> Accelerate learning -> Accelerate productivity and innovation

3 INGREDIENTS FOR SERENDIPITY

1. Residential density of 100 residents/acre

2. Street-level activity for residents to collide

3. Culture of openness, collaboration, creativity, and optimism

HOW TO ACCELERATE LEARNING & INNOVATION

Maximize serendipitous interactions

Density in the office

Density in the city

Collisions vs. convenience

Las Vegas City Hall

http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg

DIFFERENT GROUPS COLLIDING

1. 2000 Zappos employees2. 1000 Teach For America corp members

and alumni3. Tech Startup Community4. Small Business Community5. Art and Music Communities6. Other Passion Communities7. Local Residents

LEARNING FROM ZAPPOS & COWORKING…

Culture is to a Company


Culture is to a Companyas

Community is to a City


Culture is to a Companyas

Community is to a CityValues

InnovationSerendipity

ParticipationUpward Mobility

Attracting Startups and the Creative Class

Our Secret Weapon

http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg

LEARNING FROM TED, SUMMIT SERIES, SXSW, BIF…

Curated ContentSerendipity

LearningConnectionsCommunity

Downtown Vegas Every Day

Curated ContentSerendipity

LearningConnectionsCommunity

Fremont St. & Las Vegas Blvd.

Downtown Vegas Monthly Cadence


Week 1 – First Friday Week


Week 1 – First Friday WeekWeek 2 – Tech Week



Week 3 – Fashion Week



Week 3 – Fashion WeekWeek 4 – Catalyst Week

Fashion Incubator – Stitch Factory

Return On Collisions (ROC)

What is the value of a resident that is out and about in the community?



3-4 hours/day



3-4 hours/dayx 7 days/week




x 40 weeks/year




x 40 weeks/year= 1000 “collisionable” hours/year

Jake – Flint and Tinder

http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-It-b.jpg

Jake – Flint and Tinder


What is the value of a purposeful visitor that contributes to community?



12 hours/day



12 hours/dayx 7 days/week




x 12 weeks/year




x 12 weeks/year= 1000 “collisionable” hours/year


“Subscribe” toDowntown Vegas


1. 100 residents per acre

2. Street-level activity for residents to collide

3. Culture of openness, collaboration, creativity, and optimism


1. 100 residents per acre


1. 100,000


1. 100,000 “collisionable”


1. 100,000 “collisionable” community


1. 100,000 “collisionable” community hours


1. 100,000 “collisionable” community hours per


1. 100,000 “collisionable” community hours per acre


1. 100,000 “collisionable” community hours per acre per


1. 100,000 “collisionable” community hours per acre per year


1. 100,000 “collisionable” community hours per acre per year

2.3 collisionable hours per square foot

per year

OUR BIG BET… 3 Guiding Principles

Accelerate:1.Collisions2.Community3.Co-Learning

And everything else will fall into place…(productivity, innovation, growth, happiness)

What will people say about downtown?

ZAPPOS, DELIVERING HAPPINESS, DOWNTOWN PROJECT

50% of Humans Live in Cities


75% Will Live In Cities in Our Lifetime


The 4-Minute Mile

The 4-Minute Mile

http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG

[email protected]

http://langintro.com/lv_dec_2010/pics/0950_emergency_arts_window.jpg

A great

brand

is a story that never stops unfolding.

A great

brandcompany


A great

brandcompanycity


A great

brandcompanycitycommunity


Thank you!

For a copy of this presentation:

[email protected]

For more information:

www.DowntownProject.com

http://www.youtube.com/watch?v=AF4f3l4a4_A

barron's magazine's top advisory teams summit_july 17, 2013

Economy & Finance