Measuring Success, KPI’s, and Company Vision – The Zappos Way

How does your company hold a strong vision and track progress amidst today’s economic hailstorm?

In my work with high performing companies, we find that they create two categories of indicators: “Leading indicators” and “trailing indicators.”  In companies such as Zappos and The Beryl Companies, it is not uncommon for the CFO and CEO to maintain slightly different success “dashboards.”  For example, the CFO is often responsible for tracking the more traditional trailing indicators  (such as gross margins, EBITDA, client retention rates, and average client spend);  whereas the CEO sees herself as the keeper of the culture.  In these instances, the CEO tracks specific changes in employee behavior, shift in client moods, and volume of unsolicited referrals.

Zappos CEO Tony Hsieh shares examples of how he assesses their progress and cultural health against their stated objectives in this 2 1/2 minute video.  He also shares what he wants Zappos to look like in three years.

Video: Measuring Zappos’ success, cultural strength, and future growth opportunities

Comments open: True

Related Posts

As marketing leaders, you know that a strong company culture cultivates a workforce of powerful brand advocates who enhance marketing efforts. What can marketing do to navigate the culture war that ensues in the face of increased M&A activity? Here are three rules of thumb to consider as you evaluate an M&A deal on the horizon, and when you are in the throes of a post-deal journey.

Read More

With the holidays approaching, it’s easy to let things slip. A cookie here, a late weeknight there. That extra shot of bourbon over dinner. Before you know it, ten pounds and ten percent more body fat surreptitiously appear.
Several of my clients have asked what life habits I’ve accumulated over the past decade—a decade that has proven to be transformational for me.
Without healthy leadership habits, I simply don’t know how I would have transitioned to a new home and adapted to living on my own for the first time in 30 years.
I sincerely hope you find solace and an extra shot of productivity from my list.

Read More