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10 TIPS to Keep Goals on Track!

What Happened to that New Year Resolution?

At the end of each year, we reflect on the past twelve months. What worked? What didn’t? Then we set new goals for health, wealth, relationships, career excellence, and additions to our bucket list. Some are reasonable, others never had a chance. Well, here comes summer. Are you on track or has that post-it note on the fridge been taunting you since New Years?

Here are 10 Steps to Keep Goals on Track:

1. Make it FUN!

A big reason goals fall apart is they were never motivating in the first place. Add “the play factor” to motivate yourself and teammates.

2. Stay HUMBLE and ask for HELP

If you haven’t achieved your goals, keep learning or ask for help. You may be closer than you think.

3. INSPIRE, MENTOR, and GIVE BACK

One of the great ways to keep resolutions is to help someone keep theirs, then support one another.

4. THINK BIG but remember LESS is MORE

Goals that start too big often fail to address little things first. Don’t put so much on your plate that simple steps never get started.

5. Don’t let PERFECT ruin GOOD!

Are you in search of Good to Great? Be willing to get messy and screw up. You can’t be great until you get good!

6. Be GRATEFUL + write lots of THANK-YOU notes

The fastest road to success is paved through appreciation. The return on that investment yields loyal friendships, great resources, and a whole lot of good karma. The support you need may just be a phone call or thank-you note away.

7. Maintain PASSION in your PURPOSE + PATIENCE in your PRACTICE

Clarify “WHY” you set that goal in the first place and ask friends to hold you accountable by checking in “results” of your practice routine.

8. FOCUS on what you do best , then delegate, collaborate, or eliminate the rest

Hyper focus on your unique ability. Be willing to outsource or bring in co-workers and experts for things you don’t do well.

9. Stay THIRSTY (and HUNGRY) my friends!

Complacency kills the competitive spirit! If the goal is critical, you have to CRAVE it every day!

10. It’s not enough to THINK different. Have the COURAGE to BE different. As Mark Twain said, “Don’t be afraid to go out on a limb. That’s where the fruit is.”

5 Bonus Essentials to Increase Odds for Success

Make Your Goals S.M.A.R.T.

Specific > Measurable > Attainable > Relevant > Time-Oriented

Final Thoughts

Yeh, I snuck in those last 5 just to see if you’re serious about hardcore goal execution. If you are, also see: How The 4 Essentials Impact Goals

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Published on June 11, 2012 07:00

The Strikeout King ~ Baseball’s Famous Failure

Did You Know …?

A young boy from an orphanage approached home plate at an empty baseball field. Alone, carrying his bat and ball, he looked to center field and shouted, “I’m the world’s greatest home-run hitter!” He then tossed the ball in the air, swung and missed. “Strike one,” the boy announced to his imaginary fans. He then picked up the ball and shouted even louder, “I’m the world’s greatest home-run hitter!” He tossed the ball in the air, swung, and missed again. “Strike two,” he said. Finally, the boy pointed his bat to center field and with the fierce look of a big-league slugger he shouted at the top of his lungs, “I’m the world’s greatest home-run hitter!!!” He tossed the ball in the air, swung with all his might, and missed again. The boy frowned for a moment, then smiled and cried out,

“Strike Three! How about that ladies and gentlemen?

You’ve just seen the world’s greatest pitcher!”

Moral of the story

We all strike out, but there’s self-discovery in failure.

Now for the million-dollar question

Which famous ballplayer did that kid grow up to be?

Hardcore fans know that baseball’s home-run king, Babe Ruth, may have been one of the greatest pitchers of all time if not for the fact that he was also the greatest home-run hitter. Initially scouted from St. Mary’s Industrial School for Boys in Baltimore, Maryland, Ruth started his career as a pitcher with the Boston Red Sox, posting prolific records for years. He had 18 wins in 1915, 23 wins in 1916 (with 9 shutouts), and 24 wins in 1917. As a pitcher, Ruth even won 3 World Series games without a loss. He also had a streak of 29 scoreless innings in Series appearances. So at one time, Ruth really was the greatest pitcher!

But in 1919, Ruth also set a Major League record with 29 home runs. His unique skill as the greatest home-run hitter made it impossible for him to remain the greatest pitcher. Why? Pitchers need to rest their arms and can’t play every day. With his personal stock rising as a slugger, Ruth was traded to the New York Yankees where his unique home-run ability could be put to better use.

Then in 1920, he became a full-time Yankee outfielder, hit 54 home runs, and batted .376 (extraordinary, even by modern standards). In 1923, he also hit .393, a Yankee record that may never be broken. Ruth went on to rewrite baseball’s record books, setting the all-time home-run mark (714), a record that lasted nearly half a century. On the road to 714 homers, he also struck out 1,330 times, proving once again that great success requires a degree of failure.

This story is part of Essential 1, Strategy 1, a chapter on the Self-Discovery process in The 4 Essentials of Entrepreneurial Thinking

P.S. For SPORTS JUNKIES who love this debate > Considering the modern steroid era, we all seem to agree that an asterisk belongs next to home run hitters like Barry Bonds or Alex Rodriguez. Personally, I believe Hank Aaron deserves the crown (755 Career Home Runs, established in the mid 70s). Willie Mays (660 home runs) gets my favorite all around player shout out! It’s also noteworthy that Babe Ruth competed in an era that didn’t allow African American stars at the major League Level, such as Josh Gibson (800+ career home runs) or pitcher Satchel Paige.

Disclaimer: I’m a Dodger fan so I suggest an asterisk next to Yankee Stadium for it’s short right field fence which always favored lefties. Just saying!

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Published on June 08, 2012 09:09

3 Degrees of Social Impact (the new 6 degrees of separation)

On Nov 22, 2011 … a team of scientists at Facebook and the University of Milan released a study based on 721 million active Facebook users with a connectivity of 69 billion friendships. The study showed that any two individuals in the world can be connected through 4.74 acquaintances. Hmmm? Is 4.74 the new 6 degrees of separation?

Scientists and mathematicians have been conducting social network experiments for decades. But in 1967, a social psychologist named Stanley Milgram set the six-degrees standard when he conducted a small-world experiment with 160 people in Omaha, Nebraska. It was seminal work that preceded the Facebook phenomenon.

As part of his Harvard dissertation, Milgram asked participants to forward a package to a friend who they believed could bring it closer to a stockbroker in Boston who was the subject of Milgram’s experiment. Each participant received instructions to mail a folder to a friend they knew on a first name basis. Each person passed along the same instructions, hoping their acquaintance might know Milgram’s stockbroker.

The experiment sounds like an old-fashioned chain letter, but Milgram tracked the progress through return postcards attached to each letter. Statistically, chains varied from two to ten letters, with an average of six degrees of separation between the original sender and the target recipient in Boston who received the package.

Fast forward to 1990 >> American playwright, John Guare, wrote a Pulitzer-Prize nominated play titled Six Degrees of Separation, inspired by a real-life con artist named David Hampton. The 1993 film based on Guare’s play stars Will Smith, Donald Sutherland, and Stockard Channing. The story sets up the premise that any two individuals are connected by at most five others (great movie by the way – check it out if you haven’t seen it)!

The Origin of Kevin Bacon’s 6 Degrees

In 1994, actor Kevin Bacon joked in an interview that he had worked with everybody in Hollywood or at least someone who’d worked with someone. Sure enough, the social buzz around Bacon exploded that year when four college students from Albright (Craig Fass, Christian Gardner, Brian Turtle, Mike Ginelli) invented a party game called Six Degrees of Kevin Bacon. On the heels of Bacon’s statements, the students began speculating on the number of films Bacon had appeared in and anyone connected to the famous star one way or another.

The students then wrote a letter to talk-show host Jon Stewart, telling him that Kevin Bacon was the center of the entertainment universe in their “stupid party game.” And just like that, the students found themselves appearing on The Jon Stewart Show to explain the game.

Before long, a book and trivia game were released and Six Degrees of Kevin Bacon was a cultural juggernaut. In 2006, a television series (Six Degrees) hit the airwaves about six New York residents and how they were all connected through six or fewer relationships.

In 2007, Bacon formed a non-profit called SixDegrees.org. His organization teamed up with a popular charity called Network for Good to power a website that linked users to over a million charities. You’ll tell friends, they’ll tell friends, and soon enough you have a movement. But how how can we take these amazing resources and double or even triple the impact?

3 Degrees of Social Impact

87% of us have access to food, shoes, shelter, education, medicine, and clean water. A billion people don’t have such luxuries. 1 in 7 are hungry. Kids are at risk. Millions are physically and emotionally challenged. There are communities without schools and schools without books. Disaster victims need our help (Earthquakes, Tsunamis, Hurricanes). Research in science and medicine need our support too (Malaria, Cancer, AIDS).

Today’s humanitarians come in all shapes and sizes. From students to celebrities, the ability to make a difference has never been easier. Non-profits such as KIVA enable anyone to lend as little as $25 to small business owners in third-world countries. Educators like Salman Khan, Founder of Khan Academy are posting thousands of free lectures in math, science, and history, making quality education more accessible to the masses. Blake Mycoskie, Founder of TOMS Shoes is widely credited with spearheading a one-for-one business model that encourages giving back. With each sale, TOMS gives away a pair of shoes to a child in need.

So what can we draw from a Facebook study that says we’re separated by 4.74 degrees of separation and a world on the brink of social entrepreneurship? If nothing else, seven billion people are closer to 3 degrees than 6. This means each of us has the ability to make a greater impact than ever toward local or international causes.

As a corollary to the above, I challenge everyone to find their unique style of giving. For every dollar earned, perhaps you’ll give a small portion to charity. If you own a business, maybe you’ll donate products and services to a school. For everything you’re thankful for, consider giving something of equal value to a child in need.

6 degrees? 4.74 degrees? Think 3 degrees of social impact. Together, we make a difference.

CliffMichaels.com – Giving Back Mission

With each sale at CliffMichaels.com, we give FREE books and e-courses to students in need.

The 4 Essentials of Entrepreneurial Thinking

In his New York Times Bestseller, Cliff Michaels dispels the myth of born entrepreneurs and proposes a paradigm shift in global education. Taking readers on an inspiring personal journey, Michaels shares his foibles, triumphs, and tribulations as a young entrepreneur, then unleashes a dynamic system of timeless lessons
anyone can follow.

On the cutting edge of success training for over 20 years, Michaels draws on classic and modern mentors from da Vinci, Edison, Mozart, and Einstein to Jobs, Oprah, Branson, Spielberg, and more. Street-smart & thought provoking, The 4 Essentials isn’t just for entrepreneurs. It challenges all of us to earn a real-world MBA – your Master’s in Basic Abilities.

Buy Now

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Published on June 07, 2012 09:00

3 Degrees of Social Impact (the new 6 degrees of separation)

On Nov 22, 2011 … a team of scientists at Facebook and the University of Milan released a study based on 721 million active Facebook users with a connectivity of 69 billion friendships. The study showed that any two individuals in the world can be connected through 4.74 acquaintances. Hmmm? Is 4.74 the new 6 degrees of separation?

Scientists and mathematicians have been conducting social network experiments for decades. But in 1967, a social psychologist named Stanley Milgram set the six-degrees standard when he conducted a small-world experiment with 160 people in Omaha, Nebraska. It was seminal work that preceded the Facebook phenomenon.

As part of his Harvard dissertation, Milgram asked participants to forward a package to a friend who they believed could bring it closer to a stockbroker in Boston who was the subject of Milgram’s experiment. Each participant received instructions to mail a folder to a friend they knew on a first name basis. Each person passed along the same instructions, hoping their acquaintance might know Milgram’s stockbroker.

The experiment sounds like an old-fashioned chain letter, but Milgram tracked the progress through return postcards attached to each letter. Statistically, chains varied from two to ten letters, with an average of six degrees of separation between the original sender and the target recipient in Boston who received the package.

Fast forward to 1990 >> American playwright, John Guare, wrote a Pulitzer-Prize nominated play titled Six Degrees of Separation, inspired by a real-life con artist named David Hampton. The 1993 film based on Guare’s play stars Will Smith, Donald Sutherland, and Stockard Channing. The story sets up the premise that any two individuals are connected by at most five others (great movie by the way – check it out if you haven’t seen it)!

The Origin of Kevin Bacon’s 6 Degrees

In 1994, actor Kevin Bacon joked in an interview that he had worked with everybody in Hollywood or at least someone who’d worked with someone. Sure enough, the social buzz around Bacon exploded that year when four college students from Albright (Craig Fass, Christian Gardner, Brian Turtle, Mike Ginelli) invented a party game called Six Degrees of Kevin Bacon. On the heels of Bacon’s statements, the students began speculating on the number of films Bacon had appeared in and anyone connected to the famous star one way or another.

The students then wrote a letter to talk-show host Jon Stewart, telling him that Kevin Bacon was the center of the entertainment universe in their “stupid party game.” And just like that, the students found themselves appearing on The Jon Stewart Show to explain the game.

Before long, a book and trivia game were released and Six Degrees of Kevin Bacon was a cultural juggernaut. In 2006, a television series (Six Degrees) hit the airwaves about six New York residents and how they were all connected through six or fewer relationships.

In 2007, Bacon formed a non-profit called SixDegrees.org. His organization teamed up with a popular charity called Network for Good to power a website that linked users to over a million charities. You’ll tell friends, they’ll tell friends, and soon enough you have a movement. But how how can we take these amazing resources and double or even triple the impact?

3 Degrees of Social Impact

87% of us have access to food, shoes, shelter, education, medicine, and clean water. A billion people don’t have such luxuries. 1 in 7 are hungry. Kids are at risk. Millions are physically and emotionally challenged. There are communities without schools and schools without books. Disaster victims need our help (Earthquakes, Tsunamis, Hurricanes). Research in science and medicine need our support too (Malaria, Cancer, AIDS).

Today’s humanitarians come in all shapes and sizes. From students to celebrities, the ability to make a difference has never been easier. Non-profits such as KIVA enable anyone to lend as little as $25 to small business owners in third-world countries. Educators like Salman Khan, Founder of Khan Academy are posting thousands of free lectures in math, science, and history, making quality education more accessible to the masses. Blake Mycoskie, Founder of TOMS Shoes is widely credited with spearheading a one-for-one business model that encourages giving back. With each sale, TOMS gives away a pair of shoes to a child in need.

So what can we draw from a Facebook study that says we’re separated by 4.74 degrees of separation and a world on the brink of social entrepreneurship? If nothing else, seven billion people are closer to 3 degrees than 6. This means each of us has the ability to make a greater impact than ever toward local or international causes.

As a corollary to the above, I challenge everyone to find their unique style of giving. For every dollar earned, perhaps you’ll give a small portion to charity. If you own a business, maybe you’ll donate products and services to a school. For everything you’re thankful for, consider giving something of equal value to a child in need.

6 degrees? 4.74 degrees? Think 3 degrees of social impact. Together, we make a difference.

CliffMichaels.com – Giving Back Mission

With each sale at CliffMichaels.com, we give FREE books and e-courses to students in need.

View more on Cliff Michaels's website »

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Published on June 07, 2012 09:00

How The 4 Essentials Impact Goals

Do Written Goals Make Your Mission?

Each year, we write down goals to ensure more fun, good health, and quality time with friends and family. If you run a business, you hope to double your sales, launch new ideas, or enhance customer service. And if you’re adding to a Bucket List, perhaps it’s time for sky diving, an African safari, or exploration of the Galapagos Islands. But statistically, our lofty goals don’t just get done because we “write them down.” Stuff happens and the world doesn’t comply with our To-Do list.

In fact, the notion that written goals lead to success is a bit of a myth, although I’m not suggesting we scrap the practice altogether. I am saying that goals aligned with The 4 Essentials are equally important.

Essential 1 > Analyze Your Basic Skills

Each goal or project presents fresh challenges and opportunities. To get things moving in the right direction, take inventory of skills, strengths, and assets. You’ll also want a separate list of weaknesses and liabilities. Be sure to allow equal input from everyone on your team in order to assign the best person to each role. Skills should not only be evaluated in terms of task-specific experience, but aligned with those who have a passion for learning, creativity, and growth.

Essential 2: Commit to Action Strategies (Skills in Motion)

After analyzing skills, it’s time for result-oriented action. This requires tough decisions that leverage tools, teams, advisors, and resources. Strategies must also consider time, money, and effort (the total budget). Don’t fall into the procrastination trap of so much on your plate that nothing gets done. Intelligent action requires focus so it’s better to do one thing well than leave ten things hanging.

Essential 3: Align Core Values

You either stand for something or no one stands with you. So ask yourself, “Can our friends, co-workers, and clients passionately share our mission?” Is everyone committed to the same core values such as integrity, gratitude. service, excellence, innovation, and contribution? Do you have the humility to acknowledge what you don’t know, aren’t good at, don’t like to do, or don’t have time for? These principles enable us to focus on what we do best so we can delegate, collaborate, or eliminate the rest. Our values must also flow through words, deeds, branding, marketing, social media, and company culture.

Essential 4: Add Accountability to Your Purpose

Be it money, teamwork, learning, making a difference, or just having fun, our purpose (WHY WE DO IT) is the key motivation driver. But even when we align goals with purpose, values, skills, and strategies, the best laid plans can fail. It could be lack of self‐discipline, poor execution, or the wrong team? So your final ingredient for BIG IMPACT on goals is to add ACCOUNTABILITY!

My Top 5 Accountability Rules:

1 Assign a focus sergeant to monitor the mission

2 Create clear assignments, benchmarks, and timelines.

3 Establish rewards and progress reports to keep people motivated.

4 Create contingencies (plan B) if things go wrong.

5 Create consequences if someone quits or fails.

Final Thoughts

Yeh, I snuck in the 5 accountability rules at the end. But it’s worth it! Wishing you much success on your next goal or project! Also see my: 10 Tips for keeping Goals on Track

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Published on June 06, 2012 09:00

A Yoga Guru’s Path to Passion & Purpose: The Vinnie Marino Story

Up Puppy, Down Puppy … We often line up 30 minutes before Vinnie Marino’s class to ensure a spot at Yoga Works in Santa Monica, California. As 80 students prepare for one of the hardest yoga experiences in town, restless energy and chatter bounce off the walls. “Not your typical serenity-now class, is it?” says a newbie. “Not quite,” smiles a devoted fan. “It’s more like a healthy temple for hardcore yogis who are looking to sweat and catch a moment of Zen.”

They come far and wide for Vinnie Mania, a challenging blend of music- infused Vinyasa, Ashtanga, and Iyengar yoga. Students have included celebrities from David Duchovny and Robert Downey, Jr. to Heather Graham and Kate Hudson.

“Let’s get started. Take child’s pose,” says Vinnie. The room goes silent. Vinnie reminds everyone to “Block out distractions, settle in, and breathe deep.” He starts with light stretches to focus inward. But within minutes, intense flow begins with a series of classic poses and movements. Then Vinnie cranks up the tunes. This is definitely not grandma’s yoga. He plays everything from Asian, Indian, and acoustic, to Coldplay, Beatles, and the Rolling Stones. It just depends on Vinnie’s vibe but it’s always inspirational.

For 90 minutes, Vinnie will challenge your mind, body, and soul with gentle reminders on form and self-awareness. The class is intense and students will finish dripping wet. Like most yoga classes, we end with a little savasana (nap-time for yogis). It’s an addicting workout but Vinnie’s high-performance classes and sage advice are only half the reason for his loyal following.

An Italian-American, Vinnie grew up in New York. At an early age, he developed a passion for yoga by watching classes on TV. Drawn to meditation and spiritual authors, Vinnie convinced his parents to enroll him in a progressive high school, one that fostered alternative gym classes like yoga. It was the ’70s, so Vinnie was also influenced by a drug culture and hippie generation in search of enlightenment. As a result, substance abuse started in his early teens. His yoga practice waned as drug exploration intensified. It was a way to feel open and free, but for a spiritual soul like Vinnie, drugs were a dead-end way of life. Fortunately, Vinnie found sobriety by his mid-20s and continued his search for something more; a greater purpose in life.

In his youth, Vinnie’s yoga was traditional. But a move to Los Angeles in the early ’90s reconnected Vinnie with a more intense yoga practice that included music, spirituality, and a physical challenge that reawakened his desire for personal growth. Vinnie was now high on his true drug of choice — yoga.

Serendipity played a hand next as Vinnie became an assistant to Hall-of -Fame rock ̔n’ roller Grace Slick, lead singer of Jefferson Airplane. The music legend was so impressed with Vinnie’s east-coast spirit, she encouraged him to build a career around yoga. What Vinnie created next was a unique experience that combined cool music, non-judgmental wisdom, and intense yoga flow. Part of what makes Vinnie so much fun is that no two classes are alike. The soft-spoken but humorous New Yorker keeps things fresh with a great mix of music, laughter, and subtle changes to a familiar routine.

Students who can’t get enough of Vinnie’s classes are forever grateful that a ’70s kid from New York shares his passion each day for a healthy mind, body, and soul. His story personifies the magic in doing what you truly love.

~ Namaste ~

Thanks for being part of my journey, Vinnie!

Essential 4, Purpose Principle 1

The 4 Essentials of Entrepreneurial Thinking

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Published on June 04, 2012 10:57

Tony Hsieh Interview by Cliff Michaels (Part 2: Tips on Social Media)

For an insightful peek behind the entrepreneurial mind of Tony Hsieh, see Part 1 of 2 with Tony & Cliff

Tony’s Top Tips for Social Media

Cliff: As soft-spoken as you are, you have a unique ability to inspire people. Let’s rap a little about social media and how it plays a role in building customers, driving brand loyalty, and developing happy employees. Last I heard, your Twitter following was reaching epic numbers. What’s the Ballpark?

Tony: According to my assistant Liz Gregersen, we’re at 1,858,439 (as of Nov. 1, 2011).

Cliff: (grabbing iPhone) Make it 1,858,440. So if I added in Facebook, we’re clearly pushing 2 million. That’s huge! What’s you’re approach to the social-media scene?

Tony: I’ve talked a lot in the past about how we’ve used Twitter at Zappos for building more personal connections with employees and customers, but it’s helped me grow personally too. For me, it boils down to 4 things:

1. Transparency & Values: Twitter constantly reminds me of who I want to be, and what I want Zappos to stand for.

2. Reframing Reality: Twitter encourages me to search for ways to view reality in a funnier or more positive way.

3. Helping Others: Twitter helps me think about how to make a positive impact on other people’s lives.

4. Gratitude: Twitter helps me notice and appreciate the little things in life. The great thing about these 4 principles is that they not only lead me to a happier life, they spill over to what we want the Zappos brand and business to be about — delivering happiness — whether it’s through customer service or company culture.

Cliff: Your followers tweet about the Zappos core values every day. This should remind entrepreneurs that a smart public-relations campaign should focus as much on people and principles as it does selling products or services.

Tony: Right. I’ve used this example: If you were on a show, and there was a permanent public record of everything you do or say, how would you act differently? Would you be friendlier? Would you be less negative and less judgmental? If you were always on camera, then everything you did would shape your personal and business brand.

Cliff: You have an interesting perspective on how Tweets create a painting over time. Can you share that?

Tony: A lot of marketers are initially mystified by limitations of 140 characters per tweet, but that can actually help a company build a brand. Here’s the analogy: Think of each tweet as a dot on a piece of paper. Any single dot or tweet by itself can be meaningless. But over time, with a lot of tweets, there are enough dots for your followers to connect. In the aggregate, the dots paint a picture of you, your company, and your brand.

Cliff: Were you comfortable with Twitter from the start?

Tony: When I first joined Twitter, I felt a bit uncomfortable publicly announcing what I was doing and thinking. But because radical transparency was part of the Twitter culture, I gave it a try. It was consistent with Zappos Core Value #6: “Build Open and Honest Relationships with Communication.”

Cliff: What’s the best part about Twitter for you and Zappos?

Tony: The instant feedback loop. Within 5 minutes of sending out a tweet, you can find out whether people enjoyed or appreciated what you had to say. When I first started using Twitter, I used to just tweet about what I was doing. Most of my tweets were very “me-focused”, because the question Twitter asks is, “What are you doing right now?” But with time, I learned to share tweets that garner far more responses. With most tweets, I try to do at least one of three things:

1. Cause my followers to smile with something funny

2. Inspire my followers with an inspirational idea or quote

3. Enrich my followers’ perspectives with a link to an interesting article or video

In other words, I’ve become a lot less “me-focused.” I ask myself, “What can I tweet about that enriches someone else’s life?”

Cliff: Thinking about how we can enrich someone else’s life in a me-centric environment is great advice. Thanks again for pearls of wisdom Tony. It’s always a genuine pleasure learning from you. Keep delivering happiness!

For an insightful peek behind the entrepreneurial mind of Tony Hsieh, see Part 1 of 2 with Tony & Cliff

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Published on June 04, 2012 09:00

Tony Hsieh Interview by Cliff Michaels (Part 1 of 2)

In late 2011, I sat down for an exclusive interview with Zappos CEO and New York Times Bestselling author, Tony Hsieh (pronounced Shay). I was so honored that Tony endorsed my new book, The 4 Essentials of Entrepreneurial Thinking, I decided to hand deliver a “thank-you” basket filled with his favorite snacks (red bull, beef jerky, gourmet pickles, and Grey Goose Vodka). Ironically, ABC’s Barbara Walters and her 20/20 camera crew were there the same day. But true to his generous character, Tony carved out extra time for an interview with me.

The son of Taiwanese parents and a computer-science graduate from Harvard, Tony was open about success and failure, passion and purpose, and why he wrote a book titled, Delivering Happiness. Thanks again, Tony! It was a privilege to go inside the mind of a fellow author and groundbreaking entrepreneur.

TONY’s BACKGROUND

In a competitive business world where attracting talent and satisfied customers is everything, one entrepreneur has not only created a paradigm shift in corporate culture, he’s delivering happiness to thousands of employees and millions of loyalists through “fun and a little weirdness.” If you don’t know his mantras yet, you might want to study the success principles of maverick, Tony Hsieh (37). In 1999 (at age 24), Hsieh sold LinkExchange to Microsoft for $265 million dollars. LinkExchange was an Internet advertising network that Hsieh co-founded. Shortly after, he invested in a series of companies, but the one that caught his attention was e-commerce merchandiser, Zappos.com.

Hsieh started as an Advisor and eventually became its CEO, helping Zappos grow from almost no sales to over $1 billion annually. With Hsieh’s approach to extraordinary customer service and a happy corporate culture, Zappos also made Fortune Magazine’s list of “Best Companies to Work For” from 2009 to 2011. On July 22, 2009, Amazon.com announced the acquisition of Zappos in a deal valued at $1.2 billion dollars. Then in 2010, Tony’s book, “Delivering Happiness,” debuted at #1 on the New York Times Bestseller list and stayed there 27 consecutive weeks.

Hsieh’s secret to success? No secret at all. Tony opens company doors and hands over a culture handbook to competitors and street tourists alike. Talk about word-of-mouth marketing. Tony understands that success begins with shared experiences and real-world relationships. To that end, “anyone” can sign up for free office tours. The Zappos team will then provide an insider’s peek that has you scratching your head about how crazy their culture is, or why you didn’t think of it first.

The Zappos vibe is a cross between Halloween and a college-dorm party where employees are called “Friends” and there’s an acronym for everything: CLT stands for Customer Loyalty Team and PEC is how you’d describe a Personal Emotional Connection. The mantras hang from office rafters like championship banners in a sports arena. And don’t look for Hsieh in a cushy office behind closed doors. His cubicle is smack in the middle of the madness, right next to his co-workers.

Contests, celebrations, and on-site life coaches are also just a few perks that lead to happy and loyal employees. Feel free to also lose the suit and tie. You’re as likely to see employees dressed as comic heroes as you are a hot-dog vendor strolling the corridor. As for street signs and poster-sized photo albums on every wall, it’s like social-media nirvana. Millions of Zappos fans online are anxious to share the Zappos buzz.

Does LOL = GENIUS? It may sound nuts but it’s all par for the culture course engineered by Hsieh. He loves what he does, puts clients on a pedestal, and celebrates the individuality of each employee. Social media mavens might want to take note too — there’s a good reason Hsieh gets an average 2000 e-mails per day and has nearly 2 million followers online.

But it wasn’t always fun and games for Tony. Here’s what I learned …

ONE-ON-ONE with TONY

Cliff: Thanks for time today Tony and congratulations on the successful sale of Zappos to Amazon. I really enjoyed learning about your journey in Delivering Happiness. The book was a great read! Could you briefly take us through your story with LinkExchange as your first baby, Zappos as your big baby, and Delivering Happiness as your new baby?

Tony: Sure. Back in 1996 after graduating college, my roommate and I started a company called LinkExchange. We specialized in online advertising and grew that company to about 100 employees. We ended up selling the company to Microsoft two and half years later for $265 million. But what a lot of people don’t know is the real reason we ended up selling — it just wasn’t fun anymore.

The company culture went completely down hill. When it was just five or ten of us, it was a typical dot-com. We worked around the clock and slept under our desks. We had no idea what day of the week it was, but it was fun. We started hiring friends which worked pretty well until we got to about 20 people and ran out of friends. Then we had to hire people based on resumes and interviews. We were fresh out of college and had never done it before. I did a decent job in terms of hiring people with the right skills and experience, but we didn’t know about company culture — so not everyone we hired was good for us.

By the time we got to 100 people, I dreaded getting out of bed and going to my own company. That’s really what led us to sell. We got lucky with timing because it was the first dot-com boom. So I started investing in companies. But after a year, I was tired of sitting on the sidelines. I missed being part of building something. Of all the investments, Zappos was the most fun and promising so I ended up joining the company and becoming its CEO.

Cliff: On that note, let’s talk about the famous corporate culture you’ve built. Can you share the Zappos Values and which of those are most essential?

Tony: We have 10 core values and I guess when we’re hiring someone, we don’t say, “This person has 9 out of 10, we’ll let them pass.” We really need all 10. The values are:

1. Deliver WOW Through Service

2. Embrace and Drive Change

3. Create Fun and A Little Weirdness

4. Be Adventurous, Creative, and Open-Minded

5. Pursue Growth and Learning

6. Build Open and Honest Relationships with Communication

7. Build a Positive Team and Family Spirit

8. Do More with Less

9. Be Passionate and Determined

10. Be Humble

In general, I think some combination of “Being Humble” and “Embrace and Drive Change” encompass the whole idea of adapting to change. Charles Darwin said, “It’s not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” I think that’s true in business as well.

Cliff: (smiling) I have that same quote in my book, The 4 Essentials of Entrepreneurial Thinking. It’s one of my favorite success principles.

Tony: (smiling) Did I get it right?

Cliff: I think you got it word for word. Take us to where you are today with Delivering Happiness. What was the inspiration for the book and what’s your vision for this new path?

Tony: Originally, it was about writing a book to spread the idea of “happiness” as a business model to other companies and industries. That includes making customers and employees happy, as well as business partners. Along the way, we decided to go on a book tour. On average, ten of us went on a bus for a cross-country road trip (23 cities, 3 to 4 events per city). It felt like planning 80 weddings over 4 months. We actually got the bus from the bass player of the Dave Matthews Band.

Cliff: I love it! Did you bring musicians?

Tony: Actually, in some of the cities we had local musicians perform. Those were pretty interesting times and we recorded that too.

Cliff: What evolved from the tour?

Tony: Delivering Happiness was written as a business book but people took away something more. That surprised us. We had moms e-mailing us, saying they were now the CEOs of their families and thinking like value-driven corporations. We heard from charities that said they were going to focus more on their culture. We even heard the book was going to be required reading at certain colleges like Iowa University. So we ended up visiting there.

Cliff: That must have been really rewarding.

Tony: It was exciting. But then Jenn Lim (who I climbed Mount Kilimanjaro with and was part of our tour) told the Iowa students about how she quit her pre-med major and decided to focus on what she was passionate about. Then she heard back from one of the students who said they had quit their pre-med major to focus on art history. That’s both great to hear and slightly terrifying.

Cliff: What happened next?

Tony: The tour led us to start a company called Delivering Happiness (I’m a co-founder but Jenn is the CEO / Chief Happiness Officer — it’s her baby now). This whole idea of inspiring and being inspired fostered a movement with happiness beyond the business level.

Cliff: So what’s the biggest challenge in getting that message adopted within a large organization like Zappos, where everyone has a unique definition of success and happiness?

Tony: If you want to go with one, simple principle, just be true to yourself. Things magically happen if you let that be your guiding light, but you have to be willing to take that first step. There are so many people not being themselves at their job. One of the things we really encourage at Zappos is to bring your true personality to the office. It takes a toll when you don’t.

Cliff: (smiling) One of my favorite quotes on that theme is by Oscar Wilde, “Be yourself, everyone else is taken.” It’s one of the core messages I like to leave with students, young entrepreneurs, and career professionals alike. So where do you see Delivering Happiness a few years down the road?

Tony: Jenn is the CEO and it’s really up to her and her team. Letting it develop organically is part of what makes it exciting.

Cliff: You’re touching on another smart business principle here. You seem to focus on what you do best, then delegate or collaborate the rest. You’ve empowered Jenn (Lim) to drive Delivering Happiness (the company). So where’s your passion these days?

Tony: I’m still CEO of Zappos. We announced nine months ago that we’re moving to downtown Las Vegas and taking over City Hall. So what started out as a project to build a campus (to have everyone under one roof), has evolved into a roll to revive downtown. We’ll integrate the Zappos campus and city together.

Cliff: So you’re spearheading a renaissance. Is there a city you might use as a model?

Tony: I think it’s got it’s own personality (neighborhoodie) and community feel. There’s an area (Fremont East) with eight or nine bars and cafes where owners hang out in each other’s bars. I’ve never seen that. It’s exciting. There are tech companies and start-ups there too. I’d like to see a growing art scene and more live music. Ultimately, everything you need to live, work, and play would be within walking distance — a real neighborhood. On my wall at home there are about 70 post-it notes. They’re passion projects for downtown. These ideas aren’t coming from me. They stem from anyone with a passion about their community, be it a bakery or a yoga studio. So as long as someone is passionate about his or her community and the idea is sustainable, I’m interested.

Cliff: You’ve now evolved from a technology CEO and bestselling author to a community builder. It’s fantastic to see an entrepreneur cross bridges. Did you ever imagine you’d change a brick-and-mortar city the way you influenced online communities?

Tony: Not at all. Not even a year ago. When we originally thought of a campus design, we were thinking Apple, Nike, and Google all have great campuses, but they’re very insular. They don’t really integrate with the community or contribute to the environment. We want to take more of an NYU approach; almost a seamless transition between the city and campus.

Cliff: You clearly have vision and compassion for others. I’m curious, who were your mentors?

Tony: There wasn’t a single mentor or book. There’s something to learn from almost anyone. Here at Zappos, we have a library with lots of book titles and something to learn from each.

Cliff: How about biggest fears?

Tony: Based on past experience, I want to make sure the Zappos culture not only scales, but gets stronger. That’s why this campus move to downtown is exciting. It will take our culture to a whole new level. Every bar or bookstore will become an extended conference room. Employees are already gravitating downtown. On any given night, every bar feels like Cheers.

Cliff: Walking through the Zappos halls, I hear cowbells, pride, and passion. Your co-workers speak of you as a friend, not “Boss Tony.” That culture is rare and I think it stems from how much you give back. To that end, can you speak about the charitable component of the Zappos culture?

Tony: It’s funny because it all goes back to what people are passionate about. When we were smaller, we could only afford to give to one local or national charity. We basically sent a survey out and asked employees what they would suggest.

Cliff: So you engage employees to make decisions, even about charities?

Tony: Right. Now that we’ve grown, we can do more and we still leave it up to the employees. Whatever they’re passionate about is what we’ll support.

Cliff: You obviously have high-performance strategies here at Zappos. But it’s my understanding you once had a regular diet of red bull, gourmet pickles, and beef jerky. Was that the true secret behind this e-commerce giant?

Tony: (smiling) I probably did go through a phase where those were the only three things I ate. I’m the type of person who gets bored easily so it’s hard for me to stick to any single diet.

Cliff: Do you think that boredom is what drives you to constantly improve?

Tony: I don’t think that’s unique to me. Everyone wants to grow and flourish. Everyone may not instinctively know how because they’ve been stuck in that boring job for ten years. But I think once you push people slightly outside their comfort zone, they realize there’s more potential in them than they may have realized.

Cliff: So who pushes you?

Tony: It’s not any one person. When I meet different people, we could talk about any topic, and they might say, “Why don’t you do this?” And I think … hmmm … maybe.

Cliff: On that thought-provoking note, thanks for your time today Tony. It’s been an inspiring interview. Good luck with the new Zappos campus … and keep delivering happiness!

Ready for More? Part 2 of this interview provides Tony’s Top Tips on Social Media. Part 2 with Tony & Cliff.

The 4 Essentials of Entrepreneurial Thinking

In his New York Times Bestseller, Cliff Michaels dispels the myth of born entrepreneurs and proposes a paradigm shift in global education. Taking readers on an inspiring personal journey, Michaels shares his foibles, triumphs, and tribulations as a young entrepreneur, then unleashes a dynamic system of timeless lessons
anyone can follow.

On the cutting edge of success training for over 20 years, Michaels draws on classic and modern mentors from da Vinci, Edison, Mozart, and Einstein to Jobs, Oprah, Branson, Spielberg, and more. Street-smart & thought provoking, The 4 Essentials isn’t just for entrepreneurs. It challenges all of us to earn a real-world MBA – your Master’s in Basic Abilities.

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Published on June 03, 2012 09:00

Tony Hsieh Interview by Cliff Michaels (Part 1 of 2)

In late 2011, I sat down for an exclusive interview with Zappos CEO and New York Times Bestselling author, Tony Hsieh (pronounced Shay). I was so honored that Tony endorsed my new book, The 4 Essentials of Entrepreneurial Thinking, I decided to hand deliver a “thank-you” basket filled with his favorite snacks (red bull, beef jerky, gourmet pickles, and Grey Goose Vodka). Ironically, ABC’s Barbara Walters and her 20/20 camera crew were there the same day. But true to his generous character, Tony carved out extra time for an interview with me.