As an investor, you need to know what makes a business great and this book offers an intensely personal and practical framework to think about the culture of a company. Tony Hsieh’s book is filled with great stories, insights, and tips you can put to use in your business and in your life.
In most companies, employee compensation is a major line item under the costs head. So, it’s a common practice to hire best employees at the lowest cost possible and then retain them as long as possible. But there’s one company which gives its new employees an option to quit the job within the first week and pays them US$ 3,000 bonus for doing so. It’s a strange practice, isn’t it? Hiring a new employee comes with its own cost, and most new employees aren’t very productive for first few days because they are still getting acquainted with the new environment and perhaps learning new skills. So why would a company let go of employees who haven’t contributed anything and have incurred a cost for the company?
There’s is a strong reason behind this “Zappos Offer,” claims Tony Hsieh, founder of Zappos – an online shoe company. Zappos is an extraordinary business story – building a US$ 1 billion online business selling shoes in less than a decade. In a world crowded by thousands of mom and pop e-commerce companies, what makes Zappos special is its unique culture and its unconventional ways of doing business. In 2009, Jeff Bezos (Amazon) acquired it for US$ 1.2 billion on the condition that Zappos will continue to operate as it is without any change. That’s quite similar to what Warren Buffett does when he acquires a company for Berkshire Hathaway.
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