Communication builds trust

Tony Hsieh is the kind of boss everyone wants. Since I first wrote about him in March 2010 I have followed his career with interest and I am a huge fan of his people-focused approach to running a business. The story of Zappos is the ultimate story of how corporate culture can drive commercial success.

Core value number 6 on a T shirtAt the heart of Zappos lie ten core values:

  1. Deliver WOW Through Service
  2. Embrace and Drive Change
  3. Create Fun and A Little Weirdness
  4. Be Adventurous, Creative, and Open-Minded
  5. Pursue Growth and Learning
  6. Build Open and Honest Relationships With Communication
  7. Build a Positive Team and Family Spirit
  8. Do More With Less
  9. Be Passionate and Determined
  10. Be Humble

As an Internal Communicator, number six is obviously my favourite. Zappos believe that open, honest communication is the best foundation for any relationship. They even put it on a T shirt.

They don’t need to spell out if they mean internal or external communications, because for Zappos they are one and the same. Zappos employee communications are conducted in public, in full view of their customers and fans.

On 6 June 2012 Tony Hsieh sent an email to Zappos staff about a very significant corporate development. At the same time he sent a link to the email to his 2.4m followers on Twitter and posted it on http://www.zappos.com.

Most companies sending this kind of all-staff email hit the send button and sit back, hold their breath and wait for a disgruntled employee to leak it to the press. Not Zappos.

It’s an interesting email. Not just because it demonstrates Zappos fusion of internal and external communications. It also contains some lovely pointers towards a corporate culture that has become legendary in employee engagement circles and shows that none of the lustre has been lost by the constraints of plc ownership since Amazon paid $1.1bn for the company in 2009.

I love the fact that Zappos don’t call their Executive Management Team “EMT”, “SMT”, or “ExCo”. No, Zappos call it FACT, after Fred ‘no title’ Mossler , Arun Rajan (CTO), Chris Nielsen (COO & CFO), and Tony Hsieh (CEO – he’s the one with “Zappos” tattooed on his head).

Plc’s have to be very careful about making foward-looking statements outside of the regulatory financial reporting regime. Most companies opt for an easy life and keep schtum. Zappos “create fun and a little weirdness” (core value 3) to ensure their staff get the picture:

As many of you know, we already are operating two physical warehouse buildings and will soon be out of room in those buildings due to our growth. As we started looking into the possibility of opening up a third warehouse building in Kentucky to hold our inventory, we realized that Amazon was already running 69 warehouses around the world. I’ve been *reminded* by our lawyers that I’m not allowed to make forward-looking statements because Amazon is a publicly traded company, so let me phrase things this way: In the next 10 years, if Amazon continues its rapid growth rate, they will be running over 69 gazillion warehouses across the entire universe.”

Despite being CEO of the world’s largest online shoe retailer, I don’t believe Tony Hsieh sees himself as a shoe seller. I think he sees his job as the architect and curator of a unique company culture. A culture where employee empowerment and happiness creates a very powerful virtuous circle where happy staff equals happy customers and happy customers equals even happier staff. And on it goes, leaving investors, shareholders, founders and owners very happy bunnies.

Tony Hsieh is the kind of boss everyone wants. Tony Hsieh is also the kind of boss every shareholder wants.

2 thoughts on “Communication builds trust

  1. I have never thought of humility as a company wide value unless you are a religious cult sorry I mean order. I would have thought it would be more around not being complacent or arrogant.

    Communication can never be over used so you must have a very exciting job.

    If culture is a combination of nurture and nature, then the nurture needs to be lead by leader with a clear vision which Mr Hsieh seems to have.

  2. I quite like humilty as a value. If you read their description of that particular value they relate it directly to not being arrogant. “…while we celebrate our individual and team successes, we are not arrogant nor do we treat others differently from how we would want to be treated..”. I don’t read humilty as a weakness, or unconditional compliance. For me humilty displays quiet confidence and strength of character as opposed to false pride and brashness. Thanks for your comments!

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