Cover of Delivering Happiness

Delivering Happiness

Tony Hsieh

6 ideas

  1. Hire and Fire on Values Alone

    Run two separate interview tracks: one for technical fit and one for culture fit, and reject anyone who fails the culture screen no matter how skilled. Even a high performer who undermines the stated core values should be removed, because tolerating violations corrodes the culture faster than the talent adds value.

  2. Paying New Hires to Quit

    Zappos offered every new employee a cash bonus to leave during training, filtering out anyone there primarily for a paycheck rather than belief in the mission. The small percentage who took the money would have been weak long-term fits, so the offer cheaply protects culture by self-selecting out the uncommitted.

  3. Profit, Passion, and Purpose Alignment

    A sustainable business pursues three things together rather than trading them off: financial profit, the passion of doing work people love, and a higher purpose beyond money. Maximizing only profit eventually starves the passion and purpose that make profit possible.

  4. Customer service is the marketing budget

    Zappos redirected money from paid advertising into the customer experience. It offered free shipping both ways and 365-day returns, put its phone number on every page, and let call-centre reps work without scripts or time limits on calls. It also stopped relying on drop-shipping and built its own Kentucky warehouse, so that experience would not depend on suppliers' inventory. The bet was that experiences surprising enough to be retold would produce repeat customers and word-of-mouth growth more efficiently than ads.

  5. Selling LinkExchange to escape a culture

    Hsieh co-founded LinkExchange, an early banner-ad network. As it grew fast he hired for skills without regard to culture fit, and he came to dread going to his own office. After Microsoft bought the company for about $265 million in 1998, he walked away rather than stay through the full vesting period, forfeiting a large sum, and resolved that his next company would treat culture as the first priority.

  6. Business as a vehicle for happiness

    Hsieh borrows from happiness research to rank three kinds of happiness from shortest-lived to longest: pleasure, passion (flow and engagement), and higher purpose. He adds four drivers: perceived control, perceived progress, connectedness, and being part of a larger vision. He proposes designing jobs and companies to supply these deliberately.

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