Ol 215 final project one milestone two
OL 215 Final Project One – Milestone Two
Originally when Zappos was established, they did not have a mission statement, vision or
core values. This caused a disconnect when mass hiring’s as the result of rapid growth, “not
everyone knew exactly what we were looking for when we said we were looking for a culture
fit” (Hsieh, 2010). When it came to the development of them, the CEO Tony Hsieh created a list
based off the values they did and did not see as in alignment with the company’s mission, in
addition to soliciting the input of the company’s existing employees. To demonstrate the
importance of the Zappos mission statement, “to provide the best customer service possible.
Deliver WOW through service” in an effort to “inspire the world by showing it’s possible to
simultaneously deliver happiness to customers, employees, vendors, shareholders, and the
community in a long-term, sustainable way”, the company actively works to embody the mission
statement through their everyday work environment (Zappos, 2019). Not only does Zappos
standby it’s mission statement and the culture it inspires by, “consciously reinforces and supports
that culture through all of Human Resources and management work systems, initiatives, and
projects” (Heathfield, 2021). Their vision is “delivering happiness to customers, employees, and
vendors” which they foster through the implementation of their management structure of
Holacracy, which empowers employees to identify and address issues themselves (Patel, 2021).
The resulting happy customers and employees generated terrific dividends, and a prosperous
company results in satisfied stakeholders.
Zappos adopted Holacracy when “Hsieh recognized that it would take further innovation
to reach more customers in other segments of the vast apparel market”, enabling their employees
when “a business problem arises repeatedly, a different team of people is assembled to address it
each time” and by reoccurring problem now identified can be then be identified and eliminated
permanently (Sampere, 2015). The company also offered supervisors a buy-out if they found that
this strategic management plan wasn’t for them in effort to ensure only those that were full in
support of this would be a part of the company and their culture. The Zappos management team
have positively influenced the organizational culture within the company by fostering a culture
of creative. They have done this by encouraging their employees to express their individuality as
well as foster team spirit. In addition, they’ve established trust, such as when an “employee who
runs Zappos’ Snapchat channel proposed having a local celebrity named DJ Khaled make inperson customer deliveries, Williams had no idea who this DJ was or how the idea could be a
valuable marketing campaign. But he trusted the employee and gave him the extra budget needed
to make it happen” (Holland, 2016). As a result of this trust and the implementation of selfmanagement through Holocracy, Zappos “allows every employee to quickly surface and act on
customer feedback, so we can continuously provide WOW service, regardless of the size of our
company” (Zappos Insights Inc., 2019). While employees are encouraged through selfmanagement, all employees’ actions must adhere to the company’s compliance and legal
statutes. Zappos ensures this occurs by “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” (Zappos Insights Inc., 2019). Zappos “staffs
Human Resources locally for success with people. The corporate group provides company-wide
services like the comprehensive employee handbook” (Heathfield, 2021). By having HR locally
accessible, it enables them to oversee the “day-to-day work environment, remind and reinforce”
the workforce of the core values and develop employees via on-the-job training (Heathfield,
Carpenter, M. (2013). PRINCIPLES OF MANAGEMENT VERSION 2.0 (2nd Edition). MBS
Heathfield, S. (2021, February 7). Find Out How Zappos Reinforces Its Company Culture. The
Balance Careers. https://www.thebalancecareers.com/zappos-company-culture-1918813
Holland, T. (2016, October 27). 4 Ways Zappos’ Organizational Culture Inspires Creativity.
Patel, R. (2021, November 8). Best 7 Things to Learn From Zappos Vision Statement in 2022.
The CloudTutorial. https://www.thecloudtutorial.com/zappos-vision-statement/
Sampere, J. P. V. (2015, June 3). Zappos and the Connection Between Structure and Strategy.
Harvard Business Review. https://hbr.org/2015/06/zappos-and-the-connection-betweenstructure-and-strategy
Zappos. (2019, June 7). About Us. Zappos.com. https://www.zappos.com/about/
Zappos Insights Inc. (2019). The Zappos Family Core Values. Zappos Insights.