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Friday
Aug202010

Extraordinary execution of a simple idea. Zappos.com

In business, it's rare to come up with an amazing new idea. Usually it's the entreprenuer that executes a simple idea, amazingly, which stand out.

Shoes or footwear, have been around for thousands of years. So how did Zappos.com become the World's largest online shoe retailer in only 11 years? Simply put, they decided to become experts in delivering "Wow" customer service. Their focus was not just on selling shoes online, that wouldn't be enough. They decided that they would provide such an amazing customer service experience, that people would have no choice but to refer and recommend the service to ther friends and network using simple word of mouth.

On my current family vacation, we took an hour and toured the Zappos.com headquarters in Henderson, Nevada. It was amazing, and I suspect that if you asked my family, they would say that it was one of the highlights of our three week trip. That's really something when you consider that Zappos was competing with Universal Studios, Dodgers baseball, Las Vegas nightlife and a home with a swimming pool and one next to beautiful California beaches.

When my family walked though the Zappos offices, we marveled at what looked like complete chaos. Every cubicle was ordained with trinkets and personalized stuff. The lunchroom had free food, drinks and on that particular day, a karaoke competition set-up. The bosses sat alongside the day-to-day staff, there was a nap-room, themed boardrooms, breast-feeding rooms for new mothers, a free library of business books for employees and visitors, and employees standing around playing games. It goes on and on. Even my 16 year old daughter wondered out load, "how do they get any work done."

I don't think the answer is that simple. The idea is simple, but the execution is nothing but very disciplined committment to culture.

Zappos is famous for service, but really they should be famous for creating a culture that attracts and inspires people who want to provide great service. That's much harder.

Here are some things that they do well, and things we should be thinking about when we run our businesses:

  • Call centre employees are encourage to spend MORE time on the phone with customers, instead of focusing on call productivity. They celebrate the record for the longest customer service call being over 7 hours long!
  • Training is a major foundation for all Zappos employees. Each of them spend 4 weeks in training before starting their regular jobs. No matter the role. Every employee spends a week in their fulfillment warehouse learning where and how the product ships from, they spend a week on the phones answering customer phone calls, and finally they are famous for offering every employee $2000 at the end of their training to QUIT. The thought being that this is the best time to identify those who simply won't fit into the Zappos Culture. What I found most interesting was that the Zappos people who we met and who described this process, did not criticise the measly 3% of trainees who accepted this offer. It was completely OK for people to take it. According to them, speaking genuinely, not everyone is suited to their culture.
  • Along the lines of training, Zappos has a strong commitment to career advancement, and in their "Pipeline" programs, provide mentoring and training for anyone looking to "move-up".
  • As evidenced by our free tour, Zappos is dedicated to sharing their culture. On top of free tours of the headquarters (which on our day was attended by Senior Management of MGM Grand Hotels in one group, and regular tourists and company fans like orselves), Zappos gives away free culture books away to anyone who wants one.
  • They truly appreciate and celebrate diversity and individuality in their staff. From their wildy decorated cubicles, to trusting front-line employees to make decisions on the fly, they really do understand empowerment. I have always felt that empowerement was part of the magic sauce of managment, and my short visit with Zappos staff made me see that it can make a difference.

So much has been written about this company, and I won't be able to do them justice in this already long post. But if you are obsessed with thinking about the next great idea, I would only like to suggest that it's not always the best idea that wins the day, but the best execution of a simple idea.

Some links:

Some Photos:

Zappos.com Executive Cubicles - "Monkey Row" as they call it

The Zappos.com "Blog Bus" where employees run the Zappos Blog, YouTube channel, and other media

Friday
Aug132010

Paying canvassers vs. paying for signatures.  

According to one Envision Edmonton volunteer, who also happens to be a Community League President in the community league in which my daughter plays fastpitch, Envision is providing "grants" to those willing to volunteer and gather signatures in the area. Promoted in an email by the league president, each signature on the petition is worth $0.75 - $0.80.

I don't even begin to think that this is illegal, or even suggest that paying canvcassers is wrong. I know that many charities use this method to canvass neighborhoods for donations door to door.

The problem in my mind is the potential for the message to be delivered wrongly to the trusting person answering the door. Let's assume that these well intentioned volunteers show up on your doorstep, we can bet the conversation goes something like this: "if you sign this, we can get $.80 for little Johnny's baseball team".

The system of paying on a per signature basis, is simply where I think this breaks down. If the canvassers were at the door, being paid $10.00 per hour for their time, then the canvasser could be honest with their neighbour and say something like "I am not sure where you stand on this important issue, here are some facts for your consideration, and I was wondering if you would be willing to sign this petition?"

The Community League President was boastful that in 4.5 hours, she was able to gather 100 signatures. A VERY respectable $17.00 per hour of her time, all presumably donated to what I am sure is a needy cause.

What's the worst or best case in this, depending on where you stand? There will be a plebiscite. That is not the end of the World. I am sure that is also another line used by canvassers.

But we all need to be aware of the bigger issue at play here, and it's not about our airport, or the petition. It's about how we as citizens make important decisions for the future of our community. We must make them with the most information possible. We must consider ALL of the information publicly available on a topic before we put our signature or vote behind something.

I wonder how many citizens know that the airport currently generates $900,000 per year in tax revenues for the City of Edmonton, and if redeveloped, would provide $70 - $90 Million per year in new tax revenue for the City?

I wonder how many little league ball parks, community league services, and public amenities that kind of money can provide?

Of course the City of Edmonton has had to be very public in it's debate and decision making process, and has reached out to it's citizens in many public hearings and council debates.

Envision Edmonton has not been so transparent. They refuse to release their list of funders,  and they refuse to provide transparency on how they are funding petition canvassers.

None of this is illegal, and the ethics are debatable depending on which side of the fence you may be on in this matter. But never forget that we will be responsible for this decision, as a community, and we should be making it with the most information possible, presented fairly, transparently and as fact-based as possible.

CLARIFICATION & UPDATE: I mistakenly attributed the email soliciting for support as FROM the Community League President, when it was TO her. Either way, Envision Edmonton has now communicated that they are in fact paying community leagues for paid signatures. You can find their information release here.

I think it's a shame they didn't share this strategy in advance of being pressed, and that they didn't even bring their own paid communications people into the loop, or defend their supporters who spent the day denying the issue. Now you can decide if you think this is worth debating.

Monday
Aug022010

Sucking and blowing at the same time.

Imagine you are trying your damnedest to run a government. You think that you are making the best decisions for your constituents, based on your constitutional powers, extensive analysis, public dialogue, and a democratic process.

Then along comes some self-serving politicians from the next level of government, treading on your local issue, and making it his or her own. Politicizing that which is not theirs. Essentially hijacking your local issue, making it theirs, certainly for their own political gain. Then imagine that their interference might even do immeasurable harm to your local economy.

I know, it sounds insufferable. It also sounds like the recent decision by the Wildrose Alliance to interfere with the decision of Edmonton City Council and the decision of a majority TEN (10) City councillors to close the Edmonton City Center Airport.

If you saw this poorly written Twitter post (tweet) from Wildrose Alliance MLA Rob Anderson, you might even think that is what I was talking about:

But no, I am talking about the National Energy Program. For anyone with a local political memory, this was the moment in Alberta's history where the Liberal Party of Canada decided that it would cross the constitutionally established lines of governance and serve itself up a political solution to the economic crisis of Central Canada. At serious cost to the Alberta economy, and even greater political cost to itself.

I might even understand how you could confuse the two issues. Because in a way they seem quite similar.

That said, it's time for us to question the intent of the Wildrose in their position on our local airport issue. The economic/social gain or loss from closing it, is a decision that Edmonton and it's elected officials must make alone.

An elected MLA from Airdrie may be entitled to his opinion, but make no mistake, he and his counterparts with the Wildrose Alliance are not fighting a battle for Edmontonians, but fighting another one altogether; against the Provincial Conservatives.

This fight may not seem that important to you right now, especially if you support the City Centre Airport; but what happens next when the Wildrose Alliance are our Provincial government and negotiating with the City of Edmonton on Municipal Funding? A MUCH more important and ongoing delicate discussion which will require give and take from each side.

Can we trust them at that time to listen to the needs of our Council and Mayor? Or can we expect them to make decisions based on their political needs at that particular time, or those of the greater electorate?

Thursday
Jul292010

The airport debate, in my humble opinion.

I believe in community. I volunteer for it, I evangelize for it, and I support it. Edmonton is a great community, with significant potential. Edmonton's aviation community is also great, but in my opinion with assets that outweigh their potential. I am a proud member of both.

We are lucky to be benefactors of the resource lottery, and yet we also should have a long-term vision for diversity that is beyond oil and gas. To realize that vision, is to develop other assets that will help us along the way. Significant on that list is a more responsible development of our urban core, dense mixed-use pedestrian friendly neighbourhoods, transit infrastructure and perhaps most importantly, post-secondary institutions which give us a smart citizenry (all connected by a major investment in Rapid Transit). A diverse, knowledge based citizenry.

So I feel compelled to frame the debate regarding the City Center Airport as a way to progress the greater community. Will it harm the immediate interest of the stakeholders using the airport (I am one)? Yes, of course. Will it provide a greater opportunity for the City in significantly improved tax revenue, which can be used to provide better services to our residents, I think so. I would never take this position if we didn't already have five (5) airports already in the Capital Region.

So as you consider this debate, I would simply suggest that you look at it with a balanced and open mind. Consider the significant social and fiscal benefit which could be gained by developing an extremely inefficient use of 500 acres of land in the middle of the City. Do I want to see a declined Medivac service be responsible for even one death? Of course not; though I believe this risk is being overplayed and appropriate contingencies have been thought of. But have we weighed the value of new social services delivered, and the communities we could develop with an additional $70-$90 Million in annual tax revenues?

It's not as simple AND certainly not as sensational as admittedly both sides have suggested. It's time to change the tone of this debate.

Like a baby left on my front-doorstep, I found this email in my inbox, which does justice to having this debate differently. I think it's worth the read:

Imagine for the moment that the Cold War occurred in an entirely different manner. That instead of pushing the boundaries of technological advancement to create the most efficient and powerful weapons ever developed, perfectly civilized nations picked up rocks and sticks whatever else they could find, channeled the proto-homosapien buried deep within our DNA, and then spent decades beating the Holy living shit out of any other nation they found to oppose their view on the world. That instead of diplomacy and gamesmanship, we resorted to chaotic bloodlust, grabbing short-term opportunities as they came forward. This very concept would have been absurd during the Cold War and it is even more absurd today. Our technology, carefully constructed mores, and the considerable lessons we’ve learned from the past guard us from devolving into a rush of primal hatred.

So, it begs the question, why do we continue to permit analogous behavior within the realm of public debate? Too often, as we allow debates to form and progress, we act like drooling Roman spectators rather than the critical thinkers we have the responsibility to be. Those competing in front of us focus less on their contest and more on winning over a dimwitted crowd.


This is essentially the current state of the ECCA debate. Recent weeks have been a shameful display of attacks and deliberately misleading generalizations on the part of proponents of both sides of this debate (not all, but some). Claiming that councillors don’t care about the lives of Medevac patents, or that airport patrons are mostly entitled rich men who can’t bear a moment of inconvenience are irresponsible and inaccurate characterizations. These are just a few, but not the most notable, examples of where this ridiculous farce of public discourse finds itself.


The true disservice of framing this debate in such a way is that now it’s about proving which side is the more virtuous of the two. What it should be about is what kind of city we want to be and how the choice that has been/will be made around this airport will play a part in that. This conversation is easy to have. The enthusiasm behind both viewpoints represents the same goal – both want a better city.


For those who want the airport to stay open, they believe that it would be foolish to do away with existing infrastructure (capital, commercial and human) that could be developed into what they claim would be a high-impact economic catalyst. For those who want to close the ECCA, they see it as swath of underutilized land close to the core that could be developed into a model community for a city that is becoming increasingly famous for expanding outward.


These two viewpoints are not as starkly different as they have been made out to be, particularly in that they both envision their respective development plans as a cornerstone of Edmonton’s next era, both have excellent case studies behind them (for example, pro-closure has Garrison Woods in Calgary to look to, anti-closure has the Toronto City Airport as an example), and both, quite frankly, would be good for the city if taken seriously, albeit in very different directions.


Discussions like this need to become more civilized. We need to stop looking at the electorate as a collection of influence units to be herded into the general vicinity of our preferred opinion so that we can declare victory over those who hold a different belief. The two sides in this debate are not engaged in a dialogue as much as they are shouting over one another. Both have a responsibility to engage the other, and the public, in such a way that explores the relative merits of their proposals rather than the character defects of the people making those proposals.


We have the tools to develop this debate so that it produces a mature, informed public when it comes time to make a final decision on the matter. We can produce a debate worthy of the magnitude of this decision. Let’s table point-counterpoint position papers, film a live debate on the subject, speak to the local media jointly, and promote one another’s material: anything that will allow people to come to their own conclusion, rather than being led to one by bombarding people with dogma.

If it takes a plebiscite to bring that debate along, I will support it's conclusion. But I compel you to think of the whole issue.

Thursday
Jul292010

Lost in the numbers

NOTE: DUE TO MY LACK OF BEING ABLE TO RENDER HTML TABLES, AND THE AMOUNT OF BORING NUMBERS IN THIS POST, I EXPECT YOU TO FALL ASLEEP READING THIS. BUT AS I ALWAYS SAY, YOU GET WHAT YOU PAY FOR HERE.

When I read this article I am reminded of a saying learned long ago. "I may have been born at night, but not last night."

The crux of the article is how the Alberta Government just last year, spent $24 million terminating the employment of 450 nurses (for approx $53,000 each), in response to what Health Minister Gene Zwozdesky called "the worst global recession that’s hit since the 1930s". The article then talks about the prior year and how Alberta and Albertans were literally dying for nurses. We were short 1500 nurses and were recruiting from the Phillipines, India and the United Kingdom.

Of course the article goes on to say how we now again have a nursing shortage and the budget allows for hiring many of the same 450 positions back.

So, as much as I detest digging through the numbers, I was very interested in how the planning of such things looks from hindsight. Not surprisingly, it looks like simple bad planning on the surface.

Budget vs Actual Results from 09/10

Total Budgeted Revenue  -  $31.677 Billion

Total Actual Revenue  -  $35.652 Billion  ($3.985 Billion OVER budget)

Total Base Budget for Health Services  -  $12.935 Billion

Total Actual Health Services Costs  -  $12.946 Billion ($11 Million over budget)

So, we at least have to see what was an obvious and blatant OOPS, which if being honest our government would have been well aware of at some point in mid 2009/2010 budget year. I am prepared to forgive this OOPS on the revenue line, but I can only surmise that the government entered a slash at all costs mentality at some point mid-year and decided to cut the 450 jobs, reduce healthcare service to Albertans, and incur the $24 Million one-time expense.

But this is where Minister Zwozdesky's simple statement starts to rub me the wrong way.

2010 / 2011 Budget

Total Budgeted revenue  -  $34 Billion

Total Budgeted base-funding Health expense  -  $14.3 Billion (an increase of nearly 10% over 09/10)

"Ok Chris, this is getting boring, please move on to your point....."

My point is this. The government simply screwed up, IF you want to give them the benefit of the doubt. But even if the government did THINK that 2009/2010 revenue was expected to hit the original lower number, they had a choice to make about terminating 450 nurses to bring the health budget back into line. It's around the same time they were making that choice, that they were budgeting for 2010/2011, and assumed a new revenue number of $34 Billion.

I am sure that budgeting a $34 Billion enterprise is a difficult excercise, and although I have built and managed many budgets, (not Billions but over $100 million), I know more that mistakes in the 10-20% range are not only possible, but very likely. Especially in a resource based economy like ours.

So my point, in summary (I am even starting to bore myself):

It's OK to be wrong. But when it is very obvious that you screwed up, and sometimes even when you are being pressed by your competition, it is best to simply say so. The truth probably lies somewhere between a knee-jerk reaction by the Premier and Minister Liepert at the time to cut costs, even recklessly, and the government actually not knowing what 2010/2011 might bring.

The mistake is maybe even forgiveable. But not accepting responsibility and refusing to work towards a culture of improved planning and treating employees and our tax dollars with humility, is not.

Finally, I must give credit where credit is due. Much has been written about Minister Dave Hancock agreeing to underwite operating deficits in the Education budget, so teacher lay-off can be avoided while hiring cycles took their course. We need to recognize that for the leadership and good planning that it was. Oh, and yes kudos to the Liberals for pointing it out.

BUDGET FILES USED FOR THIS POST:

2009 / 2010 budget vs. actual

2010 / 2011 budget