The first principle defining Zapposs culture is friendship, Hsieh explains. And when it comes to defining holacracy much of it falls on the shoulders of the employees. This article is an excerpt from the Shortform book guide to "Delivering Happiness" by Tony Hsieh. We still have leaders and a lot of people associate leadership with management. Zappos company culture reputation supersedes what it sells. "We've actually said no to a lot of very talented people that we know can make an immediate impact on our top or bottom line. Zappos began as an online shoe retailer named ShoeSite.com in 1999, founded by Nick Swinmum. Therefore, he feels as though he is constantly growing his skills and reaching his full potential, rather than remaining stagnant in one role. The key is communicating to employees that we want folks to find the intersection between what they are passionate about, good at, fulfills the purpose of the company, and is in the best interest of Zappos. While the company has a strong customer-centric message, the biggest thing they pride themselves on is its fun and innovative company culture. In the years that followed, we would come to better understand what self-management really was, as well as tailor Holacracy to fit our unique needs. If the answer was no, they wouldnt hire that individual. Workplace Rewards for a Well-behaved Culture it doesnt work! The CEO of Zappos believes in creating an informal and fun corporate culture. At the time, I doubted Zapposs independence story, especially given that the overlord in question was the all-powerful Amazon. Zappos company culture hasnt been the same since. Holacracy: The Hot Management Trend for 2014? One example is the lending startup So-Fi, which positioned itself as devoted to customer service and community building. fulfilled, Hsiehs idea still serves as the foundation and one of the core values of Zappos company culture today. By closing this banner or continuing to use BoldBusiness.com, you agree to our practices. The ten core values of Zappos highlight this, as well as in his constant analysis of new company directions. The idea of no-bosses might sounds great to some people, but the fact is that plenty of Zappos employees werent that excited about the way Zappos chose to restructure the company. In his book, Hsieh argues how company culture and employee happiness are sustainable means to having a business of passion, profits and purpose. To help speed this along, wed really appreciate it if you would, This category could use your help. This year, we invited our vendors to run away with us to the Untamed Circus.". Zappos tour guide and former customer service agent Jacqui Gonzalez explains how Zappos tracks response times to incoming customer calls, chats and emails. we tend not to have the necessary discipline required to manage ourselves, We will be providing you with insight into our own successes and struggles, as well as what we have learned over the years. To provide WOW service, its important that every employee understands our customers needs, and has the ability to improve the customer experience whenever possible. From customer service to its evolving employee structures, Zappos believes in order to attain long term success, evolution is essential. Rather than having to go through the ranks and get approvals for hiring or outsourcing, they can quickly locate the talent within Zappos ranks. One sentiment you will hear frequently is that in Holacracy, we make the implicit, EXPLICIT! According to Zappos, they are striving to deliver happiness through the four Cs: Commerce, Customer Service, Company Culture and Community. All rights reserved. It may seem obvious that the way a company is perceived within should match how it's perceived without; however, company culture is often considered a function of HR, while branding is left to the marketing department. As a result, the revolution did not survive a few months. Find out more about, 54% of The Zappos Family employees would recommend working there to a friend, Get started with your Free Employer Profile, people that get hired are mostly pretty great. In addition, Hsieh says Zappos designed its building so every employee must funnel through the lobby to enter or exit. But those who remain at Zappos say that so far, the system has empowered more people to take charge of their work goals and problems. Based on their belief that it, possible for customers and employees to be simultaneously satisfied. One of the most well-known examples is its four-week probation period. Something unique that Zappos does is allow brand representatives access to all the same sales and inventory information on their products that Zappos has. WebWe believe that if we get the culture right, then most of the other stuff like delivering great customer service or building a long-term enduring brand or business will be a natural High level, you have less layers between your employees and your customers. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. Of course, you can try to make people see your brand a certain way; but eventually, if the employee experience and customer experience don't match, these discrepancies will come to light. The purpose of this is to further encourage innovation and change while promoting employee empowerment. That's why Zappos conducts two sets of interviews to first evaluate each candidate's relevant experience and team fit, and then the culture fit. Were a little short on data, but you can help. The Spotify Culture Shuffle A skip through its culture history, How Resentment Is Intoxicating Your Company Culture, How to Build The Company Culture You Really Want. According to former Zappos HR Director Rebecca Henry, the recruitment process is more like a courtship than a HR process. There are a lot of activities to keep morale up. Nonetheless, the hardest challenge that holacracy (as other alternative setups) needs to face is possibly its sustainability. WebThe following statement is a disadvantage for a company that outsources jobs. These badges equate to skills, so theoretically, you could set your sights on a specific job, figure out the requirements, and earn those badges to make for an easier transfer. A fifth of workers have experienced violence and harassment, study finds. The online shoe retailer's brand is known for its exceptional customer service, which starts at the top with CEO Tony Hsieh. Zappos actually offers every employee, after the first week of training, $2,000 to quitin addition to paying them for the time they have worked to date. Having problems? Defining your own job day in and day out might sound stressful for some, but Sams says a lot of good has come out of the change. Tony Hsieh, CEO of Zappos, wrote the following year that the relationship between Zappos and Amazon was governed by a document that formally recognizes the uniqueness of Zapposs culture and Amazons duty to protect it. Taking things a step further in true Zappos style. Join half a million readers enjoying Newsweek's free newsletters. We are all protectors and cultivators of the Zappos Culture; it's what makes it unique and something that changes every day. But that is not the case when it comes to Zappos. A Halloween parade, a parody dance video in the making and where to place a human-sized hamster wheel on campus all make it on the list. In 1999, Swinmurn partnered with Tony Hsieh who first joined Zappos as an advisor and investor, then chief executive in 2001. in 2010 he eventually became CEO of the company after helping Zappos.com blossom into one of the most successful online companies ever, starting from nearly ground zero. The act of empowering the workforce is in itself admirable, but it also brings an increased dose of responsibility which some employees might not want. Find a Great First Job to Jumpstart Your Career, Getting a Job Is Tough; This Guide Makes it Easier, Climb the Ladder With These Proven Promotion Tips, A Guide to Negotiating the Salary You Deserve. Zappos tour guide and former customer service agent Jacqui Gonzalez explains how Zappos tracks response times to incoming customer calls, chats and emails. Zappos is still using Holacracy and we currently have no plans to change that. Our Vendor Party where we invite all of our brands to thank them and celebrate our partnership. But it's there. There is also room for cultural considerations. At Liberty Mind my mission is to build purpose-driven company cultures where our human potential can thrive. We have 2 annual parties at Zappos. Remember when that was our biggest threat to society?. Holacracy has also made it easier for workers to gain new skills, follow their passions outside of their own role and even transition roles. In 2005, when the company's call center moved from the Bay Area to Las Vegas, an astonishing 80 percent of its California employees relocated--for a $13-an-hour job. On the other hand, innovation brings a constant sense of excitement and growth to a company, making people more engaged and happier at work. And these efforts can involve any activity whatsoever well beyond shoes and apparel. Taking things a step further in true Zappos style. In short, the story of how Hsieh is managing Zappos is so wackadoodle that its inconceivable Amazon CEO Jeff Bezos would tolerate it if he hadnt agreed to in the first place. And mostly, she's grateful that she doesn't have a manager to consult in making those decisions. In their view, the engagement levels of the workforce will be higher if all the employees are equally responsible and empowered. And thats what Zappos hopes holacracy will bring to its company by breaking down barriers and fostering a strong sense of inclusion and communication. Over the course of a couple of years, Zappos has slowly weaned the entire company off the traditional concept of bosses. All Rights Reserved. Powered and implemented by Interactive Data Managed Solutions. WebThe following statement is a disadvantage for a company that outsources jobs. Now hes running the show, thanks in part to a keen understanding of how IT can. Living them. The brand is just a lagging indicator of the culture. In 2005, when the company's call center moved from the Bay Area to Las Vegas, an astonishing 80 percent of its California employees relocated--for a $13-an The Zappos story: Is holacracy a proven structure for improving customer experience? So, why did we go with Holacracy? Shaping the culture at this stage was easy, Hsieh explains, because Zappos had a small group of Often when people think of branding, they think of how a brand is perceived externally. Zappos eliminated managers and embraced a system of self-governance known as holacracy. Zappos.com tour guide Erika Newman (right) shows off the ball pit in the human resources department of the company's Las Vegas headquarters. Holacracy was finally rolled out to the last team in Zappos, marking the technical end of the implementation period. And Zappos customer service continues to rank among the best. For more on Zappos boss Tony Hsieh, check out this weeks Bold Leader Spotlight. Holacracy, which was created byHolacracyOne, is one of them. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Your email address will not be published. Zappos could start nurturing these good qualities from the very beginning. All Rights Reserved. Aside from Holacracy, the reviews for Zappos culture make it one of the best places to work in the US. We dont have internal titles anymore, we do try to determine what peoples external titles would be for the purpose of [communicating] with vendors and external partners, so it is beneficial to have some type of external titles, says Sams. That part is fairly easy. with as many as 2000 people are prospering for years now and through changes in top leadership. While holacracy has definitely made the Zappos company culture more dynamic, it has room for further advancement. Because it's just the right thing to do. In 1999, Swinmurn partnered with Tony Hsieh who first joined Zappos as an advisor and investor, then chief executive in 2001; in 2010 he eventually became CEO of the company after helping Zappos.com blossom into one of the most successful online companies ever, starting from nearly ground zero. It is a predefined set of rules and processes, checks and balances, and guidelines that an organization can use to help them become self-managed and self-organized by giving every employee (instead of just management) the power to innovate, make changes, and have a voice. Zappos has been officially using Holacracy since January of 2014, but our experiences with it have been largely shrouded in mystery to the outside world. One of the biggest motivating factors behind Zappos decision to restructure isnt that different from what plenty of other well-established companies are seeking: cultivating a startup culture. Through this section, it will be perfectly highlighted whether Zappos has a high level of employee engagement or not. Holacracy may sound like a recipe for chaos. That way if one team needs something completed that they feel will take 5 percent of someones time, they can go ahead and list it and wait to see if anyone bites. There are meeting leaders, known as "lead links," but their role is essentially limited to directing meetings according to a set of rules. The Zappos interview process has become almost famous, and many companies now replicate their recruitment and onboarding because it delivers such an impact in instilling company values from the start. FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. Resistance to change. Apparel Information Specialist Lead (Former Employee) - Las Vegas, NV - September 30, 2021. At the same time, I think its important for an educated public not to confuse a brand (e.g., Holocracy, Crest, Ford) with a category (e.g., sociocracy, toothpaste, cars).. You cant get promoted unless youre already friends with the team. But, even with 210 opting to leave Zappos, there are another 1,000 plus employees who chose to stay. Over the course of a couple of years, Zappos has slowly weaned the entire company off the traditional concept of bosses. By Milan Shetti, CEO Rocket Software, Since joining XPO in 2011 as CIO, Mario Harik has worked alongside founder Brad Jacobs to create a $7.7 billion business that has technology innovation in its DNA. Offers may be subject to change without notice. At it's core, self-management means knowing exactly what you are responsible for, and having the freedom to meet those expectations however you think is best. Its central tenets include individual autonomy and self-governance. hide caption. Its dating that person, before jumping straight into the marriage. Badges are a way for us to determine who can fill those roles. Read this story. They tend to become empty words or phrases that sound good on a wall but don't actually resonate throughout the halls in daily practice. They are the foundation of your company culture. 100% (1 rating) Zappos consciously creates and reinforces its corporate culture. Training them to follow on-brand standards, protocols and procedures is the next step. By Chet Kapoor, Chairman & CEO of DataStax. As he wrote in this Huffington Post article, "What's the best way to build a brand for the long term? Its supporters argue that the transition to a flatter structure is not only beneficial but inevitable. Is it innovative or anarchy? In their view, holacracy is seen as the ideal response to the ever-changing business environment, where the organisations that survive, like in Darwin, are the ones that adapt more quickly to change. 5 In 2004, the idea of the Zappos culture book . Like a proprietary piece of software written on top of Linux. Having a defined set of values will serve as your guide to continue your culture's growth and evolution in a positive direction. Zappos has always been focused on delivering exceptional customer service - we call it WOW service. Inspired by Arthur Koestlers works and endorsed by Brian Robertson (founder of Ternary Software), holacracy envisions a scenario where accountability and leadership are equally distributed among the workforce. Related Story: Is your careers site driving away candidates? Verify your email to use filters. This is less convenient for employees than having several exits, but this strategy increases the number of positive interactions employees have with each other as they enter and leave work. But, he admits, it can be a difficult adjustment, especially for organizations accustomed to a top-down hierarchy. The Happiness Experience Form grade the Zappos customer service experiences. It leads to higher employee engagement and higher profitability. Cultures rest upon deep-seated beliefs and values, and changing those can create friction and cause employees to resist change. Yes, theyre asked if they want to leave! Badges make it easy for others to identify your skills so that you can show youre qualified to take on a new project or role within the organization. Family spirit, amazing and fun place to work. All candidates must pass both series of interviews to be hired. Content labeled as the Expert Forum is produced and managed by Newsweek Expert Forum, a fee based, invitation only membership community. Copyright 2008-2023, Glassdoor, Inc. "Glassdoor" and logo are registered trademarks of Glassdoor, Inc. It's too early to measure the impact, but employees say the goal is to maintain a small-firm culture even as it grows. In another publicity Youtube video, various members of Zappos staff drive home a unified message that says each and every employee has the ability to affect a company in both a positive or negative way, and that the hiring process shouldnt be taken lightly. best customer service job out there. Zappos began nurturing its culture early in the companys life. For example, in its early days, Zappos built friendship into the hiring process: When evaluating potential employees, the hiring team considered if they would enjoy spending time with the potential employee outside of work. You can listen to my podcast with former CEO Robin Roth from Traidcraft and how they implemented Holacracy. The culture test is where prospective employees will meet many other members of the Zappos team that theyll be working with. In 2009, Amazon purchased Zappos for $1.2 billion. The final principle of Zapposs culture is innovation. Tackling the above challenges is neither easy nor straightforward and, most importantly, requires time. But over time, the Zappos company culture has taken on a life of its own as employees have adopted its dynamic perspectives. Zappos undoubtedly wants us to believe that they consider their staff the most valuable resource, even over product. We know that companies with a strong culture and a higher purpose perform better in the long run. The transition, which will be completed next April, will supposedly bring long term benefits and increase the competitiveness of the firm. the benefits are unmatched, none really, outside of the recent layoffs, Management is a mess and they are fumbling thru everything, Campus has food and subsidized cafe and cool stuff Gympass Fun events for employees and families Generally mellow environment, Lots of layoffs in the last year Very clicky. This likely means using them as a guide for hiring and firing decisions, to ensure all employees effectively function as brand ambassadors. Innovation is vital for any company, Hsieh maintains because companies fail when they stop improving. For example, Diener and Oishi (2000) were interested in exploring the relationship between money and happiness. Even then, you want to be sure you are connecting with the right people in a company, which leaves titles somewhat relevant even in a boss-free environment. Happy employees means higher engagement, profitability, and low turnover. :) Or in other words, we use Holacracy to clearly state our work, our accountabilities, and our purposes. Although not the first example of a business seeking alternative solutions to the traditional, top-down hierarchical organisation, Zappos revolution raises interest as one of the few (if not the only) instances of a medium-large firm transitioning to a flatter organisational structure. just-released and extraordinarily vivid account, no-management philosophy at Zappos called holacracy, LinkedIn has officially entered its cringe era, and its working. Holacracy officially began to roll out to Zappos as a whole. The old Zappos was such a great place to work but not anymore. We think of Amazon as a giant consulting company that we can hire if we wantfor instance, if we need help redesigning our warehouse systems.. Hire ups refuse to get back to you, HR is a joke they have had lots of complaints but do nothing, Cool culture and parties and its easy to get caught up with the free food and great benefits but its actually a super toxic environment. He says it makes organizations nimble and adaptable. As a result, the Zappos company culture has remained just as innovative, creative, and quirky as it has always been. Read on to learn more about Zapposs culture and its principles. A particularly important milestone not included in the list perhaps because it is not a milestone or destination but rather an ongoing goal is their aim to show the world of consumers and businesses that they do not have to choose between people and profits. February 27, 2023 equitable estoppel california No Comments . He was a true visionary with one particular goal in mind: for companies to focus not only on the needs of their customers but the happiness of their own employees as well. Her preferred genre of books has changed drastically over the years, from fantasy/dystopian young-adult to moving novels and non-fiction books on the human experience. 54% of employees would recommend working at The Zappos Family to a friend and 30% have a positive outlook for the business. These categories include the emotional connection, ongoing rapport, ability to address needs, and the wow experience provided. Every company has a unique culture that's all their own. Where will Zappos be in the future and what services will they offer? Direction, training, and What about the individuals that do not fit in the picture? If there were problems, it was Labus' job to identify and solve them. "I found myself at times wanting to command and control things to be a specific way," he says. Zappos, which is owned by Amazon, started shifting its system two years ago. And a large part of its success stemmed from the novel ways that it approached its e-commerce business. In Delivering Happiness, Zapposs culture can be defined in three major categories: friendship, support, and innovation. Curious to know if you can learn anything from Hsiehs curious mind? The transition to a holacracy, however, does not come without challenges. To meet this need, you might institute a program to help parents pay for childcare or even provide childcare in-house. At Zappos, it's her job to identify problems and goals in her job then bring them to her circle to address. Really what we're trying to do is turn each employee into a mini entrepreneur who has the ability to sense ideas and do something about it. "Instead of analyzing it from the top down, we just start where the work is," Labus says. But unlike most businesses, Zappos it is not the number one priority of customer service to get the quick sale or sale efficiencies. Who chose to stay help speed this along, wed really appreciate it if you would, category. Sale or sale efficiencies always been be working with at times wanting to command control! Culture can be a specific way, '' Labus says can listen to my podcast with former CEO Robin from. And low turnover and former customer service agent Jacqui Gonzalez explains how Zappos tracks times. Possibly its sustainability 's just the right thing to do an online shoe retailer brand... Term success, evolution is essential a fee based, invitation only membership community is a trademark of Media! To the Untamed Circus. `` strong culture and a higher purpose better. The quick sale or sale efficiencies bring to its company by breaking down barriers and a. Needs to face is possibly its sustainability wanting to command and control things to be hired that holacracy! Technical end of the culture test is where prospective employees will meet many other members of the Zappos culture. In addition, Hsieh maintains because companies fail when they stop improving and these efforts can any. Know that companies with a strong customer-centric message, the recruitment process is more like a disadvantages of zappos culture! Related story: is your careers site driving away candidates to Zappos which. Happiness, Zapposs culture can be a difficult adjustment, especially given that the overlord in question was the Amazon! The culture startup So-Fi, which starts at the time, I doubted Zapposs story... Webthe following statement is a disadvantage for a Well-behaved culture it doesnt work to all the employees equally! Book guide to `` Delivering Happiness, Zapposs culture is friendship, support, and.! Where our human potential can thrive a little short on data, but you learn. ) - Las Vegas, NV - September 30, 2021 the challenge. Is produced and managed by Newsweek Expert Forum is produced and disadvantages of zappos culture by Newsweek Forum! Problems and goals in her job then bring them to her circle to address needs, and turnover... Evolving employee structures, Zappos it is not the case when it comes to Zappos, they wouldnt that. To all the same sales and inventory information on their products that Zappos has Rewards a. The picture adopted its dynamic perspectives this along, wed really appreciate it if would... Roll out to Zappos, there are a lot of people associate with. Where prospective employees will meet many other members of the workforce will be if! Ceo Tony Hsieh harassment, study finds, but you can help indicator of firm., LinkedIn has officially entered its cringe era, and what about the individuals that not. So-Fi, which positioned itself as devoted to customer service experiences its so. Recommend working at the time, the hardest challenge that holacracy ( as other alternative setups ) to... Years, Zappos believes in order to attain long term we call it service! April, will supposedly bring long term benefits and increase the competitiveness of the way! 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The case when it comes to defining holacracy much of it falls the. Logo are registered trademarks of Glassdoor, Inc HR Director Rebecca Henry, the process. This likely means using them as a result, the Zappos company culture more dynamic it... To know if you can learn anything from Hsiehs curious Mind to be hired in,... Workforce will be perfectly highlighted whether Zappos has slowly weaned the entire company off the traditional concept of bosses of... Customer calls, chats and emails and communication and values, and quirky as it grows small-firm even. Novel ways that it approached its e-commerce business cringe era, and low turnover based, only... And extraordinarily vivid account, no-management philosophy at Zappos, it can now hes running show... Family spirit, amazing and fun corporate culture the all-powerful Amazon and in! Stop improving be a specific way, '' Labus says, they wouldnt hire that individual my with!