Great Leaders Development Talent

#10 of 27 Traits of Great Leaders

Great leaders develop talent, hire "odd" people, and are not afraid to hire individuals who are better than themselves.

Best Practice Principles of Talent Development

1. Mentorship and Coaching: Great leaders dedicate time to mentoring and coaching their team members, offering guidance, sharing experiences, and aiding in professional and personal growth.
2. Empowerment: They delegate responsibilities and trust their team to make decisions, which builds confidence and helps develop skills.
3. Recognition and Feedback: Effective leaders celebrate achievements and provide constructive feedback, creating a positive environment where people feel valued and motivated.
4. Creating Opportunities: They identify and create learning and advancement opportunities through training programs, challenging projects, or new roles.
5. Building a Learning Culture: Great leaders foster a culture of continuous learning, encouraging curiosity, innovation, and the pursuit of knowledge.
6. Personalized Development Plans: They tailor development plans to suit individual strengths, weaknesses, and career aspirations.

The Zappos Story: Beyond Best Practice

In 1999, Nick Swinmurn had the idea to sell shoes online after a frustrating experience trying to find a specific pair of shoes at a mall. He pitched his idea to Tony Hsieh and Alfred Lin, who were running an investment firm called Venture Frogs.

Swinmurn's pitch was simple but compelling: "Footwear is a $40 billion industry in the United States, of which catalog sales make up $2 billion. It is likely that e-commerce will continue to grow. And it is likely that people will continue to wear shoes in the foreseeable future."

Hsieh saw the potential in Swinmurn's vision and decided to invest $500,000 in the startup.

Tony Hsieh initially joined Zappos as an investor, but as he became more involved, he saw the opportunity to make a significant impact on the company's direction and culture. He eventually took on the role of co-CEO alongside Swinmurn. Swinmurn was not afraid to let go and hire someone better than him at talent development.

Hsieh's leadership and innovative approaches to customer service and company culture were pivotal in driving Zappos' success.

Key Success Factors

1. Customer Service Excellence: Zappos is renowned for exceptional customer service, offering free shipping and returns, a 365-day return policy, and 24/7 support, building a loyal customer base.
2. Positive Company Culture: Hsieh emphasized a unique and positive culture, guided by core values like "Deliver WOW Through Service" and "Create Fun and A Little Weirdness."
3. Innovative Talent Development:
   • Holacracy: Implemented a management system eliminating traditional job titles and hierarchies, empowering employees to take on multiple roles and make decisions autonomously.
   • Culture Fit Interviews: Emphasized hiring for cultural fit, ensuring new hires aligned with the company's core values.
   • Pay to Quit: Offered new employees a financial incentive to quit after training, ensuring only those committed to the culture stayed.
   • Employee Happiness: Invested in creating a fun and engaging workplace, offering free meals, team-building events, and encouraging personal growth.
   • Focus on Personal Growth: Encouraged employees to pursue their passions and personal development, offering classes on various topics.

Growth and Acquisition

• Zappos reached $1 billion in annual sales by 2008.
• In 2009, Amazon acquired Zappos in an all-stock deal valued at approximately $1.2 billion, maintaining its distinct culture and operational independence.

Legacy and Impact

• Tony Hsieh's leadership and vision left a lasting impact on Zappos and the broader business community.
• His book, "Delivering Happiness," outlines his philosophy and the principles that drove Zappos' success.
• Zappos continues to be a leader in customer service and company culture, demonstrating that a strong focus on employee happiness and customer satisfaction can drive business success.

These unconventional methods helped Zappos build a strong, cohesive team and a distinctive company culture that contributed to its success and reputation for excellent customer service.