MBD Essentials May 5th, 2019

First Steps For Learning and Engaging

Document Purpose: To help folks get to the right resources as quickly as possible while giving them high-level descriptors of all the initiatives around Evolve and Building an Evolutionary Organization (Next Steps to an Organization that Stands the Test of Time)

We Are Evolve

We are the Evolutionary Organization Circle, or “Evolve” for short.

You can reach us at any time by emailing evolve@zappos.com or EvolutionaryOrg@zappos.com

Check out our Roles and Accountabilities here in Huzzah and our Menu of Services here in the CFO Tool.

We use Quip as our go-to data repository (we pretty much house everything here) and you have complete access to every page we've built out. That homepage can be found here.

Before you get too far ahead of yourself, know that we also have a glossary that can help you out at any time!

Our High-Level Goal

Our primary goal is to help make Entrepreneurs, Lead Links, and YOU become (more) successful.

Another goal of ours is to assist the organization in building, heightening, and evolving the tools, systems, mindsets and behaviors needed to help Zappos stand the test of time.

Our purpose, “An Organization that Stands the Test of Time” anchors our attention on building a more diversified, resilient, and sustainable Zappos, one that will be around in 100 years (and more if we play our cards right). This new world may seem new, but a lot of it is simply stems from the evolution of where Zappos has come from its humble beginnings and what it has done to keep up with the times since then.

More information on how this relates to our organizational why: https://zappos.quip.com/Jo4DAC0AVwos

Other important callouts for this initiative: https://zappos.quip.com/4oQAARqQfcl8

Our Journey Into The Future

Since the early days,

“Zappos is a service company that just happens to sell ____________.”

has always been at the core of how we saw the future of our business.

This aspirational quote hasn’t changed over the years, but what has changed is the whats and hows we approach it. With 100% certainty those things will continue to change, especially as new ideas, methodologies, technologies, and flat out better ways of working are introduced to the world. Some of the things we try may seem like unnecessary change to some, but for Zappos as a whole, the experimentation and exploration is exactly what we need to move Zappos into the future; to become the best versions of ourselves and fulfill our purpose:

To inspire the world by showing it's possible to simultaneously deliver happiness to customers, employees, community, vendors, and shareholders in a long-term, sustainable way (or in short - To Live and Deliver WOW

To help bridge the gaps, we've created a timeline of our journey. Check it out here.

Our Key Focus Areas For 2019

We have our eyeballs and hands on a lot, but this list highlights what themes we'll be spending a majority of our time:

Communication Enhancement

** Understanding and communicating specifically to various groups/personas
** Exploring blended-learning models to increase awareness and understanding
** Disciplined Metrics/QBR Reporting
** The organization has full understanding of/engaged in the Triangle of Accountability

Customer-Generated Budgeting

** Enhancing the tools, systems, and mindsets that make our new world possible
** Helping Circles identify their real internal customers; Helping the company become more “networked”
** Increasing the number of Circles that have more than one internal customer (MBD)

Entrepreneurial Mindset and Pipeline

** Training and Development
** Tapping into the creative genius of the company
** Enhancing our Idea and Innovation Funnel; Finding new ideas that positively shift the organization's perspectives of MBD

Building On 2018 Momentum To Create More Effective Organizational Transformation(s)

** Continue evolving from our stepping stones by creating new opportunities for people and the company to become the best version of themselves
** Continue the march toward the three primary breakthroughs of 'Teal'

More specific information our strategies and projects can be found in our 2018/2019 strategy and alignment documentation here.

Initiative Descriptions and Resources

Market-Based Dynamics (MBD)

MBD is a venture that enables a Circle to think and operate as its own autonomous small business, so long as it a) has customers who are willing to pay for their work and b) “break even” financially (don’t spend more money than they earn).

Visit our go-to Q&A page about MBD here.

The value of every Circle's product and/or service is tied directly to how much of it you have and what the consumer demand is for it. With that comes shifting the way Zappos does business internally and how we treat one another.

Visit our go-to resource page about MBD here.

Customer-Generated Budgeting

Instead of having a top-down approach to budgeting (where budgets are passed down from the GCC to and through each SubCircle), budget conversations and transactions will happen between Circles. CGB will be a requirement for any Circle that wants a budget in 2019.

Visit our go-to resource page about Customer-Generated Budgeting here.

Triangle of Accountability

In 2019, we want every person and Circle at Zappos to have the minimal number of constraints that enable maximum freedom, but also maximum accountability. What does this mean?

Any Circle can do whatever it wants, so long as it simultaneously delivers on each side of the Triangle of Accountability.


Culture / Values - Zappos Culture & Our 10 Core Values
Every Circle is accountable for staying true to the core principles, behaviors, and mindsets that define us as an organization.

Customer-Focused Mindset - Delivering The Very Best Customer Service and Experience
Every Circle is accountable for continuously delivering beyond their customers’ expectations.

Customer-Generated Budgeting - Balancing Your Circle’s Profit & Loss
Every Circle is accountable for breaking-even on its P&L (where a Circle’s costs and expenses don’t exceed its funding and/or income).

Visit our go-to Resource Page about the Triangle of Accountability here.

Customer-Focused Mindset

Customers are vital to every business. Providing the best possible service is an area we’ve always excelled. Focusing on what we know about serving our external customer and applying it internally helps us understand the business and cultural needs across the organization on a much deeper level.

Visit our go-to resource page about the Customer-Focused Mindset here.

Entrepreneurial Mindset

Without innovation, opportunities, and new value creation, every business or team grows stale and eventually dies. So sad. We don’t want any part of those shenanigans, so we need to invest into building and tapping into the entrepreneurial genius of the entire company.

Visit our go-to resource page about the Entrepreneurial Mindset here.

Z’Franchises and Heart & Brain

Here, it’s all about how we can create successful diverse and service-focused businesses so Zappos can be a company that's still around in 500 years. Welcome to Zappos Franchises and Heart & Brain, early adopters that are helping us build the Zappos of the future.

Visit our go-to resource page about Z'Franchises and Heart & Brain here.

Evolve Quick Links

Here are quick links to our most popular forwards (conversations we have with you all!):

MBD Q&A: Employee Sentiment Survey
Triangle of Accountability (2019)
What is the “Customer-Focused Mindset”?
Customer-Generated Budgeting (CGB) 2019
Evolve 2019 (Evolutionary Org)
Evolve Glossary
Have an Idea? Have an Idea That Needs Funding?
What does it mean to have an Entrepreneurial Mindset?
EvOrg Daily (CGB Daily & Tips & Tricks)
Core Principles and Tenets of MBD
The Journey To Where We Are Today
CFO Tool Resources
Zappos' Golden Circle - MBD Relation

Your Role In All This

We will be successful in all this if every single one of us is willing to break down conventional wisdom and try new things. If we're never satisfied with the status-quo, if we shift our mindsets in a way that truly and authentically lends itself to learning, opportunity, and growth; if we’re truly willing to listen and build our businesses around our customers, both internally and externally AND if we’re willing to do whatever it takes to over-deliver on the very best service and experience.

We all need to work together if we're going to be successful in driving Zappos forward. Every person has a Role to play and it's just a matter of how much do you want to contribute to it.

And Our Role...

Just as important, we're also taking responsibility. See what we've learned from other “implementations” and how we're trying to help YOU.

I Have An Idea - Now What Do I Do?

The foundation of progress in every spectrum of life comes from ideas. Sometimes we need a whole lot of them, sometimes just a few of them. Sometimes they represent a small, incremental change and other times a giant leap into the future.

An idea can mean everything and every idea matters, especially ideas from you!

We've outlined a few paths you can take with your new idea here.