Delivering Happiness: Summary and Top Insights

Delivering Happiness: A Path to Profits, Passion, and Purpose

by Tony Hsieh

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The Net-Net

Zappos founder Tony Hsieh walks the fine line between humility and hubris required of hugely successful entrepreneurs. His memoir depicts a true Entrepreneur who has the confidence to take on big risks and jump outside the depths of his expertise and yet who is not afraid of — and in fact learns from — the consequences when those risks don’t pan out. Delivering Happiness tells the story of Tony Hsieh and the unlikely, roller-coaster story of Zappos. In addition to creating a parable about the importance of culture, Hsieh also shares with us his path to discovering his own passions and his approach to personal happiness. There is plenty of food for thought, especially for those of us still finding our way.

Top 3 Insights

1. Find (and build) your tribe: Hsieh learned early on that forming new relationships and deepening his connections to his friends brought him stability, excitement, and happiness. Recognizing that membership to a group and feelings of connection are highly beneficial to human beings (thanks, mother nature) precipitated some of the most defining elements of Hsieh’s legacy and Zappos’s exemplary culture. He prioritized bringing his personal tribe together over time (e.g., purchasing an apartment just for them to gather, organizing outings to raves) and later the Zappos tribe (e.g., hosting the Vendor Appreciation Party). His approach to business relationships and personal relationships was largely the same: get to know people, be thoughtful, remember that everyone is a person. This philosophy informed the culture of Zappos, particularly how the company treated its employees, customers, and vendor partners. Building relationships first and worrying about what a relationship can get you second (if ever) will take you and your company farther than thinking in transactional terms from the start. (Chapter 3)
   
   
2. You get to pick the table you sit at: Hsieh learned a lot from his hobby of playing poker. In fact, he approached poker like he would a new job, learning strategies and specifics for success. One of his most important lessons was that the table you choose to play at is critically important. Player dynamics and skill are major factors. The same is true in business: “It doesn’t matter how flawlessly a business is executed if it’s the wrong business or if it’s in too small a market” (67). Think carefully about what table you sit at and don’t be afraid to change tables if you learn new information. (Chapter 3)
   
   
3. Character:Individual :: Culture:Company: Culture is a big topic in corporate America. Employers and employees both place great emphasis on company culture, there are lists upon lists of “greatest places to work, and culture is a major factor when it comes to job satisfaction and retention. Often, culture is thought of or discussed like it is the personality of a company. While this is partly true, the Zappos story suggests that it is more productive to think about culture as the character of a company. This might seem like splitting hairs, but it was actually a big “aha moment” for me. Culture should really be the “why” of what you are doing, not necessarily the “how.” The “why” can, an almost always does, inform the “how,” but it’s not negotiable or flexible in the same way. At Zappos, the culture is formalized with ten Core Values. Hsieh says, “As it turns out, it doesn’t actually matter what your company’s core values are. What matters is that you have them and that you commit to them… Your personal core values define who you are, and a company’s core values ultimately define the company’s character and brand” (184). Good advice for companies and individuals alike. (Chapter 5)

Actionability

Good Stories

Key Quotes

• “I’d realized that whether in poker, in business, or in life, it was easy to get caught up and engrossed in what I was currently doing, and that made it easy to forget that I always had the option to change tables. Psychologically, it’s hard because all of the inertia to overcome. Without conscious and deliberate effort, inertia always wins.” (69)
  
  
• “A key ingredient in strong relationships is to develop emotional connections. It’s important to always act with integrity in your relationships, to be compassionate, friendly, loyal, and to make sure you do the right thing and treat your relationships well. The hardest thing to do is build trust, but if the trust exists, you can accomplish so much more.” (176)

If This Were an MBA Class, it Would Be Called:

Lead from the Start: Creating a Culture for Entrepreneurial Success

Best For:

• Entrepreneurs
• Culture evangelists
• Retail and e-commerce changemakers

Can’t get enough? Consider:

• Unreasonable Hospitality by Will Guidara for more on surprise, delight, and customer service
• The Song of Significance: A New Manifesto for Teams by Seth Godin for more on culture
• “Zappos: Tony Hsieh” How I Built This with Guy Raz (podcast, 30 min)

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