delivering happiness - business chicks-sydney_2.14.2012 tj
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DELIVERING HAPPINESSA PATH TO PROFITS, PASSION, AND PURPOSEWWW. DELIVERINGHAPPINESS.COM
Tony HsiehJenn Lim
Blizzard EntertainmentApril 1, 2011
Business ChicksFebruary 14, 2012
TONY HSIEHJENN LIM
WWW.DELIVERINGHAPPINESS. COM
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FIRSTTHERE WAS A BOOK
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LABORDAY 2009
(LENTICULAR)
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SXSW2010
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+ 275,000 COPIES SOLD17 + LANGUAGES/COUNTRIES
2010 BEST OF LISTS AMAZON CUSTOMER FAVORITENPR MARKETPLACEINC. MAGAZINENEW YORK POST
READWRITEWEB
#1 BESTSELLER LISTSNYTIMESWSJ
AMAZONBARNES & NOBLEBORDERS
WHOA.
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THEN, THE BUS TOUR
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BEFORE AFTER
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Sl ide 12
WE HEARD FROMAROUND THE
WORLD
no matter whatBACKGROUND
CULTUREIDEAS
JOB
UNIFIEDBY THE SAME
VISION
HAPPINESS
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c h a r i t y :w a t e r
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Sl ide 26
THEN THERE WAS ABUS TOUR
FIRSTTHERE WAS ABOOK
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SXSW2011
THERE WAS THIS GREAT PASSION ABOUT GETTING ON THIS BUS ONE OF THOSEMOMENTS WHERE YOU DECIDE YOURE EITHER GOING TO LIVE SOMETHING YOU
HAVE NO UNDERSTANDING OF, OR W HETHER YOURE GOING TO STAY IN YOURBOX AND WHAT YOURE COMFORTABLE WITH.
I FELT LIKE LIVING.-ASHTON KUTCHER
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Sl ide 28
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Sl ide 29
ICEE
INSPIRECONNECTEDUCATEEXPERIENCE
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Sl ide 30
GLOBAL MOVEMENT TOSPREAD AND INSPIRE
HAPPINESS IN THEWORLD
SUSTAINABLE
SCALABLE
COMPANYWITH ACAUSE
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JOIN THE MOVEMENT!DELIVERINGHAPPINESS.COM
CULTUREBOOK.ORG
FACEBOOK .COM/DELIVERINGHAPPINESS
TWITTER | @DHMOVEMENT | @DHMOVEMENTCEO
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Sl ide 32
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Sl ide 33
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Sl ide 34
A Little About Me (Tony)
1994-1995: Pizza business in co llege
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Sl ide 35
A Little About Me (Tony)
1994-1995: Pizza business in co llege
1996-1998: LinkExchange (on line advertising)So ld to Microsoft for $265 million
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Sl ide 36
A Little About Me (Tony)
1994-1995: Pizza business in co llege
1996-1998: LinkExchange (on line advertising)So ld to Microsoft for $265 million
1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
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Sl ide 37
A Little About Me (Tony)
1994-1995: Pizza business in co llege
1996-1998: LinkExchange (on line advertising)So ld to Microsoft for $265 million
1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
1999-Today: Zappos.com, Inc.
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Sl ide 39
The Power of WOW
01 02 0603 04 05 0700 08
G
r o s s
S a
l e s
$ M
M
$1,000
800
600
400
200
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Sl ide 40
Customer Experience
W hat do customers expect?
W hat do customers actua lly experience?
W hat emotions do customers fee l?
W hat stories do they te ll their friends?
How can cu lture create more stories and memories?
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Sl ide 41
the #1 priorityCULTURE
5 weeks of training
Culture book
$2000 offer
Hiring for culture
Twitter helps build culture
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Sl ide 42
Clothing, Customer Service, Cu lture
Customer Service
Clothing
Cu lture
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Sl ide 43
Clothing
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Sl ide 44
Customer Service
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Sl ide 45
Culture
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Sl ide 47
Delivering Happiness(customers and employees)
Peop le wi ll forget what you said, peop le wi ll forgetwhat you did, but peop le wi ll never forget how you
made them feel . -Maya Ange lou
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Sl ide 48
Building Great
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CULTURE Committable Core Values
D on t make your core va lues just a meaning less p laque on the wa ll
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Sl ide 50
Example: Core Values
1. D e liver WOW Through Service2. Embrace and D rive Change3. Create Fun and a Litt le W eirdness
4. Be Adventurous, Creative, and O pen-Minded5. Pursue Growth and Learning6. Build O pen and Honest Re lationships W ith Communication7. Build a Positive Team and Fami ly Spirit8. D o More with Less
9. Be Passionate and D etermined10. Be Humb le
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Sl ide 51
COMMIT TO
TRANSPARENCYBe rea l and you have nothing to fear
Your cu lture is your brand
D on t try to be someone you are not
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Sl ide 52
That s great,but it would
never work at my
company
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Sl ide 54
From MarianaToday I saw your workshop in D igita l Age and I like to congratu late you. D efinite ly was the best workshop!Tota lly inspiring! Something about what you said today, rea lly touched me. I don t know if you re going to readthis e-mai l, its a litt le si lly, but I was very anxious to te ll you these.
I had my own theory of happiness. I ca ll it Yummy litt le thing , in Portuguese Coisinha Gostosa . In my theoryevery day I a llow myse lf to do something that s rea lly makes me happy. For examp le: go to a bar with friends,read a page off a book, have lunch in a p lace I love, buy c lothes, p lay with my nieces. In other words, I havelisted a ll things that I love to do, and every day I do something. It may even be eating a candy! Has the morecomp lex items to the simp lest.
So, I rea lly identified with your persona lity, spirit and concept of life. Else, I practice in my dai ly this theory with my team. I coordinate a team of 11 peop le. Im responsib le, in a techno logys company, for a departmentof creation and communication (www.totvs.com). My princip le is we have to be happy every day. W e spent80% of our life inside the company, so we HAVE to be happy there! I give priority to peop le and not to projects.Very po lemic, don t you think?
You know why I am see as a competent professiona l? Because a ll my projects are de livered in days, withqua lity. You know why? Because when I can do it, the return I have from my c lient, makes me happy! Simp lelike this!!
W e ll , I hope you had understood me. And I m very happy to know that there someone e lse in the wor ld whothinks like me! Good luck in propagation this concept!
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From John KoriothMy name is John Korioth. I a lso go by the nickname College. Its a long story I can te ll you later, but yes, I didfinish co llege.
W hen I did finish co llege in 1990, the economy was a lmost as bad as it is today, and it was tough to get a job.A friend of mine was opening a bar and asked if I wanted to bartend unti l something more substantia l camelong. Nineteen years later, and I am sti ll in the business.
There have been some ins and outs during those 19 years, but today I co-own a bar ( SIX) in Austin, Texas. W ehave 14 investors, and it just so happens that one of the more famous investors is Tour de France Champion
Lance Armstrong.
I have known Lance for more than 15 years, and he is one of my best friends. W hen he was diagnosed withtesticu lar cancer in 1996, I left the bar business to co-found the Lance Armstrong Foundation with Lance. Afterthree years of being the executive director, I left and went back into the bar business. I sti ll he lp out at theFoundation as much as I possib ly can and as much as they wi ll let me. It is something that wi ll a lways be c loseto my heart.
W e opened SIX in 2005, and just like a lot of new bars, things seemed to be great at first. W e were the newgame in town, and things were ro lling our way. The nice thing about the bar business is when you first openand you do it right, you can rea lly cash-f low fast. Everyone loves you when you re new. The deciding factor inthe bar business is, how do they love you after two years. This is where a lot of bars fai l and have to shutdown and tota lly reinvent themse lves. O r at least they think they do. W e started to go through this samecycle unti l I ran into two of my competitors. They were abso lute ly miserab le; both wanted to se ll their bars or just shut them down. They hated everything about the business and, most of a ll , they dis liked their emp loyees.
I am pretty sure their emp loyees didn t much like them.
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From John KoriothI have to admit, I was fee ling the same way; and then I thought to myse lf, there has to be a better way. It justdoesnt have to be this way! Thats when I saw Jim Co ll ins, author or Good to Great, speak at the LivestrongSummit. I loved his book and thought it was the best business book ever written. I guess I didnt read it verywe ll , because in his speech he reminded me that Life is about who , not what .
In the bar business, we tend to think its a ll about concept, look, location, music systems, et cetera. W e ll , itsnot. I sat down with my business partner Chris and said, we have to change or I am out of the business. Ididnt want to become like our competitors. Chris agreed. W e started out on a mission to change our staff togive the best customer service that the bar business has ever seen. W e started taking emp loyees to lunchevery day for 2 weeks and asked them what they thought great customer service was and how they thought weought to do it. They thought we were crazy and didnt understand what we were trying to do. This becamevery frustrating for us and our emp loyees: we were thinking about giving good service, and they were thinkingwe a lready did. It left Chris and me very frustrated and searching for answers.
There is an o ld saying, W hen the student is ready, the teacher wi ll appear. I figure this is where Zappos andTony came into p lay. I was having lunch with D oug U lman, the current CE O of the Lance Armstrong Foundation.I told him what we were trying to accomp lish at SIX and how frustrated we were. He to ld me about Tony and
Zappos. So I went to look at Zappos website and ordered some shoes to see what wou ld happen. It amazedme how fast I got them, and the shipping was free.
I thought to myse lf, we ll , thats just promotion and systems, Not being so impressed. Chris and I just starteddoing a ll the research on Zappos we cou ld. W e came across many artic les about Zappos and the cu lture at theZappos Headquarters. Chris even took a trip out to Vegas and took the tour of the Zappos Headquarters. Hecame back with many great stories and, a lso, the 2008 Zappos cu lture book. W e started to share our researchand this book with our emp loyees.
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From John KoriothW e rea lly knew that Zappos and Tony were starting to have an effect on our business when we saw him speakat the South by Southwest Music Festiva l, a big music and interactive festiva l that has been going on in Austin
for over 25 years. You might be thinking that we went down to an auditorium and watched with a coup le of thousand other peop le - we ll , we didnt. I didnt even know he was going to be speaking. It was one of ourcocktai l waitresses (Ju lie) who understood very we ll what we were trying to accomp lish, and she found it on lineand shared it with the rest of the staff. W hen she did that, we knew we had changed the cu lture of SIX.O f a ll the bars that Chris, myse lf and many other of our emp loyees had worked at, we had never seen or heard of thestaff sharing this type of information with one another.
W hen I watched Tony speak, the one thing he spoke of that rea lly stuck out to us was that he didn t want to bethe same run-of-the-mi ll internet company. He wanted to be part of something different and better. Eventhough they were se lling shoes like a bunch of other companies, they wanted something better, somethingmore rewarding, a company that was going to set them apart from the rest and make himse lf and the rest of the emp loyees happy to come to work. This was preaching to the choir, but how? D uring Tony s speechsomething he said something that we never rea lly thought about and it was that you may think that Zappospriority was customer service . Tony exp lained that the number one priority at Zappos was rea lly companycu lture . If you get the cu lture right the rest of the stuff wi ll just happen natura lly.
O ver the course of the next six months, which was eight months after our initia l thought to change, we learnedwhat Zappos had figured out: It s about the cu lture of your business that derives everything good and bad. Youwant to have great customer service? You better have a great cu lture. You want emp loyee retention? Youbetter have a great cu lture.
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From John KoriothHow did we do this? W e started to pay more attention to our emp loyees and what they were te ll ing us, W e gotthem more invo lved in the process of decisions. W e started to give them better customer service. For examp le:
At the end of every night a simp le manager log is created and emai led to a ll the managers and owners. It hasthe sa les numbers and genera l thoughts of how the night went. It a lso has maintenance items that theemp loyees may have noticed or just thoughts on how they think the night cou ld have gone better. If they list amaintenance item we do everything we possib ly can do to have that item fixed by the time they wa lk in thenext day for work. W e a lso ca ll , emai l or text them and te ll them we fixed the prob lem or that we are workingon it. This te lls them that we listen to them and we take it serious ly. If it is an idea that they might have toimprove the customer experience or work environment, Chris or myse lf will follow up with them in person todiscuss it.
Another examp le is most emp loyees in the service industry hate emp loyee meetings. They are usua lly on theirday off and are fu ll of information they a lready know. W e took a hard look at how to make these moreenjoyab le, interactive and more rewarding. W e now usua lly take them to dinner instead of hosting the meetingat our location. This puts them in a different mindset of something new and interesting. W e may a lso requirethem to be prepared to te ll a story of some good or bad customer service experience they encountered atanother business. This usua lly resu lts in some good laughs and some good moments of perspective of howthey shou ld treat our customers. I use to spend 20 minutes preparing for these meetings now I take 4 hours, itmakes a ll the difference in the wor ld.
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From Dave BrautiganA few thoughts on how you guys "infected" me!
I use infected, as I think that for me, going to Zappos is like a spa for business owners. I leave charged back upand ready to take on the wor ld. I a lso leave ready to spread the happiness. So they are infecting me somehow.Its either in the air or the mixed nut machines a ll around the office!
W ith At lanta Refrigeration, I loved work prior to going to Zappos. I got up every day ready to knock the dayout. I thought I had a great company and did not know any better. The way my dad ran it was the way I ran it.I took the other jobs I had in life and used that, a ll the same type of cu ltures. Something though started to sit a
litt le weird (maybe I saw an artic le, read a b log) not rea lly sure how that fee ling started, but it did. I found outabout Zappos and I was interested, but very skeptica l.
After Zappos Insights I was amazed and seeing it made me rea lize that you cou ld operate a business in a fun,happy atmosphere and have a reason to work more than just the profit. You cou ld empower, trust, and rea llymake work a specia l p lace. Since my return from Zappos, we have made great strides in bui lding up ourcu lture, something we had a ll a long, but did not know what it was, how to bui ld it, or how important it was inmaking decisions! The foundation, core va lues, was something that we have to give 100 percent thanks toZappos for, as I wou ld have never done it, but listening to Tony ta lk about them, I knew it was what needed tobe done.
O n a persona l leve l, Tony's happiness research rea lly hit home with me. He inspired me to rea lly step back andlook at my life and see what made me happy for the long term, not just short term happiness. W ith worktaking priority of my life since I was litt le watching my dad run the company, I found that I did not want thatsame thing with me and my sons (2 and 6).
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From Dave BrautiganS ince Zappos, I am happier now than I can ever remember in the past. I ditched stressfu l lunch meeting andtook up exercise. It led to me to dropping 20 lbs and starting triath lons and coaching. I am doing an Iron man in
May and have a side job as The North Face store week ly run leader! I am happy when I am out on the road, thebike, or the poo l. I also use it to reduce my stress at work a llowing me not to take it home to my fami ly.
I am at a new leve l of happiness. My life is simp ler now. I have started a passion project, he lping emp loyeesreach their dreams. I ask them for 101 and we are knocking them out! I am current ly working on two that arerea lly unique. O ne of my customer service ladies wants to go to the O prah show and another lady wants tomeet the Goss lin kids (from John and Kate p lus 8). Not sure how I am going to pu ll those off, but I know it canbe done!!
Its funny, the one thing that sticks in my mind on every visit (I have done a few now) to Zappos is how freakythe door opening is. Peop le go out of their way to ho ld a door open in that p lace. That sma ll gesture is edge of the cu lture waterfa ll you go over when you wa lk in. I te ll myse lf now when I am having a bad day or not livingmy persona l values to stop, smi le, and go open a door for someone. Its amazing how something sma ll can bringback a rush of emotions and thoughts of such a happy p lace out there at Zappos.
I am excited, as I wonder what is next! Tony and Zappos has made rea lize there is no end to how much you canincrease your happiness. You just have to take it step by step, and when in doubt, hop a p lane and go to one of the best p laces on earth! It s worth every cent for the f light!
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Sl ide 63
VISION
W hatever you re thinking, think bigger .D oes the vision have meaning?
Chase the vision, not the money
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Sl ide 64
VISION
Don t chase the paper,chase the dream.
Sean Combs aka Puff D addy to rapperBiggie Sma lls aka Notorious B.I.G.
in Notorious
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ENTREPRENEURS:
What would you be
passionate about doingfor 10 years even if younever made a dime?
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EMPLO YEES:
What s the larger vision
and greater purpose intheir work beyondmoney or profits?
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MOTIVATION
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Q uestionsW here does the story begin?
W here does the story end?
How do you reinforce the good memories?
W hat were the emotions, positive and negative?
How can you create more stories and memories?
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Sl ide 73
What s your business?Youre not in the _______ business.
Cirque du So leil is not in the circus business.
Youre in the experience and emotions business.
Youre in the stories and memories business.
Think bigger.
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TAKE A STEP BACK
WHAT IS YOURGOALGOALIN LIFE?
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WHAT IS YOUR GOAL IN LIFE?
GrowCompany
Get a GreatJob
Boyfriend /Girlfriend
Be Healthy
Retire Early Make Money Find SoulMate
Run Faster
Spend Timew/ Family Buy A Home Get Married
Run AMarathon
why? why? why? why?
why? why? why? why?
HAPPINESSwhy? why? why? why?
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Sl ide 76
RESEARCH HAS SHOW N
HAPPINESSPeople are very bad at predicting what
will bring them sustained happiness.
W hen I get ___, I wi ll be happy. W hen I achieve ___, I wi ll be happy.
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Sl ide 77
HAPPINESS
There is a SCIENCEbehind many aspects of business inc luding:conversion
psycho logy of buying
direct marketing
customer acquisition metrics
repeat customer behavior, etc.
W hat if you spent just a litt le bit of your time studying and learningthe SCIENCEof HAPPINESS?
How much HAPPIERcou ld you be?
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Sl ide 78
WHAT IS YOUR GOAL IN LIFE?
GrowCompany
Get a GreatJob
Boyfriend /Girlfriend
Be Healthy
Retire Early Make Money Find SoulMate Run Faster
Spend Timew/ Family Buy A Home Get Married
Run AMarathon
why? why? why? why?
why? why? why? why?
why? why? why? why?
HAPPINESS
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A FEW DIFFERENTFRAMEWORKS OF
HAPPINESSHAPPINESS
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Sl ide 80
A FEW D IFFERENT FRAMEWO RKS O N
HAPPINESSPerceived Control
Perceived Progress
Connectedness
Vision / Meaning(Being part of something bigger than yourse lf)
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Sl ide 81
Maslow s Hierarchy
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Sl ide 82
3 TYPES OF HAPPINESS
Rock Star(Pleasure chasing the next high)
Flow(Engagement time f lies)
Meaning / Higher Purpose(Being part of something bigger than yourse lf)
time
time
time
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Sl ide 83
RECO MMEND ED BOO KS
PEAKChip Con ley
TRIBAL LEADERSHIPD ave Logan, John King & Ha lee Fischer- W right
FOUR HOUR WORK WEEKTim Ferriss
HAPPINESS HYPOTHESISJonathan Haidt
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Sl ide 84
Contact info and tours!
Email tony@ deliveringhappiness .com for:
This presentation
Free cu lture book
(need physical mailing address)
Go to http://tours.zappos.com for:
Tour of Zappos offices when you re next in Las Vegas(takes about an hour)
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Sl ide 85
Profits
Passion
Purpose
GREATBUSINESS
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Sl ide 86
HAPPINESS
time
time
time
GREATBUSINESS
Profits
Passion
Purpose
Pleasure
Passion
Purpose
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Sl ide 87
What % of your time do you wantto spend learning about the
SCIENCE of HAPPINESS?How can the SCIENCE of HAPPINESShelp your
business, your brand, and yourself?
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Delivering HAPPINESS
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Delivering HAPPINESSLearn more and join the movement!
www.de liveringhappiness.com
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Slide 91
My new book is titled Delivering Happiness
Now available in bookstoreswww. deliveringhappiness .com
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