Let’s take a look at an organization that prides itself on its culture and has worked tirelessly to maintain a culture that supports its strategic efforts.

Zappos – Much More Than an Online Shoe Store

The Zappos online shoe store originated from an unsatisfied customer. When founder Nick Swinmurn could not find a pair of shoes he wanted at a local store, he looked for investors to start an online shoe store that would alleviate this problem. Swinmurn sought investors and found them in Venture Frogs, headed by Tony Hsieh and Alfred Lin. Eventually, Hsieh took on a more active role in this investment and became co-CEO with Swinmurn.

In 10 years, Zappos grew from an unsatisfied customer’s idea to a company with $1 billion in annual sales company. It was eventually acquired by Internet giant Amazon.com. Most companies would be focused on the numbers, profits, and success of this acquisition, but Zappos was concerned about maintaining its culture. They felt that this was the key ingredient for the company’s success.

Zappos’ organizational culture is fairly unique. Here is an overview of Zappos culture and core values.

• Employees enjoy free lunches and free health care.
• The Zappos office has a library, no-charge vending machines, and a nap room.
• People are encouraged to decorate their departments and cubicles in whatever way they see fit.
• Managers are required to spend 10-20% of their time with employees outside of work in a recreational setting.
• Employees often lead spontaneous parades through offices and departments.
• During the hiring process, all employees (regardless of their position) are required to go through the Zappos four week customer service training program. At the end of this program, every employee is offered a $2000 “quit now if you want” incentive.
• Employees have two interviews: one to figure out their qualifications and one to figure out if they will fit in with the existing Zappos culture.

Zappos even has a culture book comprised of two to three paragraphs from each employee stating what Zappos’ culture is and means to them. (This book is available at

http://www.zapposinsights.com/culture-book. This link was accurate at the time of publication. Velsoft takes no responsibility for the content or accuracy of this site.)

Along with its culture, Zappos has the following Family Core Values:

• Deliver WOW through service
• Embrace and drive change
• Create fun and a little weirdness
• Be adventurous, creative, and open-minded
• Pursue growth and learning
• Build open and honest relationships with communication
• Build a positive team and family spirit
• Do more with less
• Be passionate and determined
• Be humble

(Source: http://www.zapposinsights.com/culture-book)

With these values and their staunch commitment to maintaining the company’s culture, it seems as if Zappos has done much more than just sell shoes. They have carefully crafted a culture that has been paramount to their success. However, don’t mistake a fun culture for lack of business focus. Zappos leveraged its culture to create engagement with their employees, to create an environment that encouraged innovation, and to boost knowledge sharing within their organization.

This brief look at Zappos’ culture comes from Tony Hsieh’s book Delivering Happiness: A Path to Profits, Passion, and Purpose.

Grow Your Culture to Support Your Initiative

Zappos crafted its culture to encourage collaborative effort on the part of its employees in order to provide the best customer service possible. They also built an environment to support this goal.

When looking to implement a knowledge management program in your organization, you must consider the main premise of knowledge management: that knowledge will be shared. The big questions to ask when examining your company’s culture are:

• Does your organization encourage sharing or competition?
• Does your organization value continuous learning and act in an appropriate way to support this belief?
• Does your organization encourage, support, and reward divergent thinking and innovation?
• Does your organization encourage employees to see themselves as continuous learners?

Your organization’s approach can either enable the sharing of knowledge or hinder it. If your company focuses on rewarding competition between employees, then people will get the message that it is best to hoard knowledge in order to get ahead. Additionally, saying we endorse something and not following up with appropriate actions is a surefire way to lose the support of your workers. When implementing a new program, you need to make sure that your culture can support the intent of the initiative.

Tips for Crafting a Knowledge-Sharing Culture

Reward Collaboration Rather Than Competition

Highlight collaborative efforts in your organization. Talk about who was involved, what the outcome was, and why this type of behavior is so important on both an individual and organizational level. Put this information in a high traffic area to ensure that each member of the company has a chance to view the success.

Figure Out What You Are Already Doing Well

When seeking to craft a knowledge sharing culture, figure out what you are already doing well. Find ways to enhance and extend these processes to enable knowledge sharing.

Encourage Employees to See Themselves as Continuous Learners

To craft your knowledge sharing culture, you need to encourage employees to see themselves as continuous learners. They need to realize that they are the heart, soul, and brains of your organization. Encourage this mindset by offering regular workplace and personal training and development, offering educational benefits, and sharing success stories from your people.