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Tell your boss: Zappos founder says “Happiness increases company profits!” (video)

If you work in a company, send this article to your boss! If you run a company or have employees, listen up…

Before becoming a Professional Coach at the turn of the century, I was a manager and helped launch a software startup company that’s still in business today. In getting my degree in management, I learned that our understanding of companies and management came from America winning WWII.

You see, we did this great feat, those men came home, started building companies, and working in them. But, humans in general aren’t good at change. We’ve unconsciously been managing our companies, and our employees, as if they are military personnel in a great war that ended 66 years ago.

But some companies are changing this ancient model of management! Countless research studies, like the Federal Reserve study, are showing that business is more productive when the employees have purpose and are happy. We see this proven in technology companies like Google, Facebook, & Apple.

Zappos is an example of a retail company that is also proving that happiness increases profits. Here’s a great interview with the Zappos founder about his new book where he shares his formula for success.

Of special interest to me is when they touch on the old attachment business still has to keeping employees unhappy so they work harder (the war mental blueprint). As a satirist, Colbert is a master at pointing out what’s wrong that we haven’t been able to put our finger on.

The Colbert Report Mon – Thurs 11:30pm / 10:30c
Tony Hsieh
www.colbertnation.com
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Do you think it’s possible to drop the old war strategy of management? Post your comments on the blog.

{ 2 comments… add one }
  • Joy Livingwell October 27, 2011, 12:39 pm

    Good analysis, Erol!

    Yes, it IS possible to drop the old war strategy of management. I’ve changed *most of my life* to run on rewards and happiness instead of fear and punishments, and wow, what a difference! I’m happier, I have better relationships with kinder people, I get far more done, and I’m not afraid to take risks anymore.

    In most cases I’ve found that it works far, far better to reward myself and others into the behaviors I/we want than to use fear, threats, punishment, or unhappiness. Or to get out of a game if it’s not worth playing. The few exceptions are mostly emergencies where stopping something RIGHT NOW by the fastest possible means prevents damage or injury. Even there, it’s often possible to find a kinder way to do it.

  • Erol Fox October 27, 2011, 12:56 pm

    Great example Joy!
    Reminds that most of our “human behavior” studies actually came from studying animals. Studies like Pavlov and his dogs. Studies on rats and monkeys. Many are still using what works to motivate animals mainly punishing for imperfect behavior.
    Instead, we can learn from studying dolphins, which hopefully humans are as evolved as. If we punish a dolphin it retreats and breaks it’s relationship with the trainer. The trainer must use varied reward for natural success behaviors the dolphin does.
    I guess it depends on what we really think of our fellow humans, and our self…

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