I have thoroughly investigated the list of TOP 100 companies to work for and decided to write about Zappos.com, as I really like their management. "Zappos" is the company that was founded in 1999 by Nick Swinmurn and Tony Hsieh. This company sells shoes, clothing and accessories in the continental part of United States.
At the beginning, they did not have own warehouses, so shoes factories were engaged in direct supplies. In addition, many factories were not willing to cooperate with Zappos, so the project had to increase customer loyalty by providing a special customer service. Thus, in 2001, the annual turnover of the company reached $8.6 million. A year later, Zappos opened its own call center in Shepherdsville (Kentucky) and in 2003 has achieved a turnover of 70 million dollars and refused from direct deliveries from factories to their own warehouses (Hsieh, 2011).
Wages in "Zappos" are slightly below than average wages on the market. Free food and medical insurance are also common things in the United States. However, "Zappos" management is more concerned about the fact that the company should have something not related to money. They are building a unique corporate culture, for which the staff is ready to exploit every day.
"Zappos" culture and all the procedures are intended to bring joy. The main value is to be a spiritual fellowship, and beneficial to the customer. Support operator is authorized to resolve any issues, even those that do not belong to the "Zappos" - for example, they may suggest a schedule of domestic flights or find a product that is not in the range "Zappos" at another store. Group leaders listen to conversations and make recommendations for improvement and follow the recommendations implemented. The company carries out the joint action with its partners, for example, they can put "Red bull" jar in the box or some slippers with "Disneyland" logo. This is a trifle, but nice and so everyone wants to write about this in "Twitter". It helps to bring customer loyalty, despite the high prices.
Leadership style has a significant impact on the performance of the team and the organization. The particular style of management factors determines the objective and subjective nature, tasks, functions, size and structure of the team, individual qualities, experience manager and others. The style is closely linked to management and mediated by individual characteristics of the manager.
Thus, CEO of “Zappos” Tony Hsieh is an example of an effective leader for me. He is always ready to facilitate changes and it not afraid because of them. I am pretty much sure that his approach to management should be considered as the charismatic one. This type of leadership argues that a leader is a person with a certain set of personal qualities and is able to organize other high labor. An attitude to the charismatic leader is based on the faith to him, respect and staff activity is influenced by the charisma of the leader. (Avolio, B. & Yammarino, 2012) Not many people have such skills. The charismatic leader represents the embodiment of company’s values that puts it above own interests of people and is able to transform their own values to common group interests.
Leadership style, which has been implemented in “Zappos”, brings a lot of benefits to the company. For example, “Zappos” corporate culture allows not keeping talented people because of money. They are interested in working there due to culture. This is also very good and cheap PR for the company as a lot of people are discussing the wonderful culture of "Zappos" in social networks. Also, staff is motivated in the same direction as the management, which helps to achieve company goals faster.
"Zappos" company teaches and cultivates their staff. Each employee has his personal development plan, and they are attending classes as in the university. Trainings are conducted by leaders and senior experts. They are studying management, working with suppliers, warehouse business, financial accounting and everything else, what the company does. As for me, the logic is absolutely correct as if a person is able, he can teach it.
"Zappos" has their own psychologist who helps employees to realize themselves and achieve life goals (Hsieh, 2011). His consultations are free. The risk that someone after these training will leave a company is minimized. First of all, people who are inclined to escape did not initially get a job in a company because of face control, and secondly, there is nowhere else such a corporate culture, like in "Zappos". Only those who are very fond of “Zappos” culture and atmosphere are working there. It helps to reduce spends on trainings, as no outside coaches are conducting them. Moreover, each and every person is improving his quality of work, as all of them are taught every day.
Corporate culture is a long-running project, which reduces the risks and costs, helps to grow professionals and do not pay them incredible money.
You need to automate and streamline everything from customer service to the cargo lift speed. Improving the website constantly is much effective than ordering a new version every year.
First of all, you need to provide good logistics, powerful and fast delivery window, and only after that, you can count on awesome customer service.
You can raise and improve staff effectively on your own if it is approached systematically.
I believe that the main point of “Zappos” success is the system. Everything, what was done in “Zappos” is the result of the cleverly constructed system: thinking (corporate culture), sales (site), warehouse and phone service. "Zappos" system inspires you rather than employees in carnival costumes.
References
Avolio, B. J., & Yammarino, F. J. (2012). Transformational and charismatic leadership: The road ahead. Amsterdam: JAI.
Fortune 100 Best Companies to Work For. (2014). Retrieved March 14, 2016, from https://clients.greatplacetowork.com/list-calendar/fortune-100-best-companies-to-work-for
Hsieh, T. (2011). Delivering Happiness. Hachette USA.
Why I Sold Zappos. (2010). Retrieved March 15, 2016, from http://www.inc.com/magazine/20100601/why-i-sold-zappos.html
