Fortune Growth Summit_10.22.13
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Transcript of Fortune Growth Summit_10.22.13
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ZAPPOS.COMDELIVERING HAPPINESSDOWNTOWN PROJECT
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Downtown Project
CollisionsCommunityCo-Learning
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Slide 3
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Slide 4
A Little About Me (Tony)
• 1994-1995: Pizza business in college
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Slide 5
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
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Slide 6
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
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Slide 7
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
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Slide 8
A Little About Me (Tony)
• 1994-1995: Pizza business in college
• 1996-1998: LinkExchange (online advertising)Sold to Microsoft for $265 million
• 1999: Venture Frogs (investment fund) - Invested in Zappos.com, Inc.
• 1999-Today: Zappos.com, Inc.
• 2009: Amazon acquires Zappos for $1.2 billion
• 2010: NYT bestseller Delivering Happiness published
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Slide 9
The Power of WOW
‘01 ‘02 ‘06‘03 ‘04 ‘05 ‘07‘00 ‘08
Gro
ss S
ale
s $M
M
$1,000
800
600
400
200
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Slide 10
Customer Experience What do customers expect?
What do customers actually experience?
What emotions do customers feel?
What stories do they tell their friends?
How can culture create more stories and memories?
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Slide 11
the #1 priority
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Slide 12
the #1 priorityCULTURE
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Slide 13
the #1 priorityCULTURE
4 weeks of training
Culture book
$4000 offer
Hiring for culture
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Slide 14
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
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Slide 15
Clothing
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Slide 16
Customer Service
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Slide 17
Culture
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Slide 18
Clothing, Customer Service, Culture
Customer Service
Clothing
Culture
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Slide 19
Delivering Happiness(customers and employees)
“People will forget what you said.People will forget what you did.
But people will never forget how you made them feel.”
-Maya Angelou
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Slide 20
Building Great
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Slide 21
Ingredient #1
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Slide 22
CULTURE“Committable Core Values”
Don’t make your core values just a meaningless plaque on the wall…
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Slide 23
Example: Core Values
1. Deliver WOW Through Service2. Embrace and Drive Change3. Create Fun and a Little Weirdness4. Be Adventurous, Creative, and Open-Minded5. Pursue Growth and Learning6. Build Open and Honest Relationships With Communication7. Build a Positive Team and Family Spirit8. Do More with Less9. Be Passionate and Determined10. Be Humble
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Slide 24
COMMIT TO TRANSPARENCY
“Be real and you have nothing to fear”
Your culture is your brand
Don’t try to be someone you are not
Parades at Zappos…
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Slide 25
“That’s great…
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Slide 26
“That’s great…but it would
never work at my company…”
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Slide 27
ALIGNMENTIt doesn’t matter what your
core values are…as long as you
commit to them.
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Slide 28
Ingredient #2
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Slide 29
VISION
“Whatever you’re thinking, think bigger.”
Does the vision have meaning?
Chase the vision, not the money…
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Slide 30
VISION
“Don’t chase the paper, chase the dream.”
Sean Combs aka “Puff Daddy” to rapperBiggie Smalls aka “Notorious B.I.G.”
in Notorious
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Slide 31
ENTREPRENEURS:
“What would you be passionate about doing for 10 years even if you never made a dime?”
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Slide 32
EMPLOYEES:
What’s the larger vision and greater purpose in
their work beyond money or profits?
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Slide 33
MOTIVATION
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Slide 34
MOTIVATIONvs.
INSPIRATION
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Slide 35
Vision & Cultureinspire
Passion & Purpose
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Slide 36
Evolving vision and brand at Zappos.com
1999 Selection
2003 Customer Service
2005 Culture and core values as our platform
2007 Personal Emotional Connection
2009 Delivering Happiness
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Slide 37
Questions Where does the story begin?
Where does the story end?
How do you reinforce the good memories?
What were the emotions, positive and negative?
How can you create more stories and memories?
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Slide 38
What’s your business? You’re not in the _______ business.
Cirque du Soleil is not in the circus business.
You’re in the experience and emotions business.
You’re in the stories and memories business.
Think bigger.
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Slide 39
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
“a great brand is… ______”
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Slide 40
Zappos.com
http://media.glassdoor.com/m/7b/2c/00/f6/entrance-to-the-zappos-com-headquarter-office-in-henderson-nv-photo-by.jpg
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Slide 41
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
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Slide 42
Las Vegas City Hall
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Slide 43
Las Vegas City Hall
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Slide 44
Nike
http://standardatl.com/home/wp-content/uploads/2010/07/Nike_Campus_Tour_01.jpg
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Slide 45
http://static.panoramio.com/photos/original/400729.jpg
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Slide 46
Apple
http://www.techzek.com/wp-content/uploads/2011/09/apple_campus-1.jpg
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Slide 47
Doggy Day Care
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
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Slide 48
NYU Campus
http://www.adogsdayout.com/Pix_Overhead_View_ADDO_7-31-08.JPG
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Slide 49
Downtown Vegas - Fremont East
http://www.eatinglv.com/wordpress/wp-content/gallery/odettedowntown/chinatown-038-large.jpg
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Slide 50
Downtown Vegas - Fremont East
http://www.lucyvegas.com/sites/default/files/griffin5.jpg
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Slide 51
Downtown Vegas - Fremont East
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Slide 52
Downtown Vegas - Fremont East
http://roadjournals.viamagazine.com/wp-content/uploads/2011/05/The-Beat-Coffeehouse.jpg
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Slide 53
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
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Slide 54
Delivering Happiness - What’s Next?
Clothing
Customer Service
Company Culture
Community
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Slide 55
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
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Slide 56
DOWNTOWN PROJECT GOALS
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Slide 57
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
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Slide 58
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large City in the World
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Slide 59
DOWNTOWN PROJECT GOALS
Live/Work/Play – Walking Distance
The Most Community-Focused Large City in the World
The Co-Learning and Co-working Capital of the World
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Slide 60
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
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Slide 61
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC
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Slide 62
ROI vs. ROC
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)
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Slide 63
ROI vs. ROC and ROL
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL
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Slide 64
ROI vs. ROC and ROL
Instead of maximizing short-term ROI (Return On Investment)…
We focus on maximizing long-term ROC (Return On Community)and institutionalizing ROL(Return On Luck) – Accelerating Serendipity
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Slide 65
THE BIG BET
Accelerating Collisions, Community, and Co-Learning
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Slide 66
THE BIG BET
Accelerating Collisions, Community, and Co-Learning
…will lead to…
Happiness, Luckiness,Innovation, and Productivity
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Slide 67
DOWNTOWN PROJECT - $350M
$ 50M – Small businesses
$ 50M – Tech Startups
$ 50M – Education, Arts, Culture
$200M – Real Estate
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Slide 68
$50M – Small Businesses
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Slide 69
$50M – Small Businesses
Criteria
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Slide 70
$50M – Small Businesses
Criteria Owner Operated - Passionate
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Slide 71
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community
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Slide 72
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability
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Slide 73
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable
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Slide 74
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at
Something
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Slide 75
$50M – Small Businesses
Criteria Owner Operated - Passionate Helps Build Community Execution Ability Sustainable Unique or First or Best at
Something Story-worthy
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Slide 76
Natalie
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Slide 77
Natalie
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Slide 78
Natalie
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Slide 79
Natalie
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Slide 80
Natalie
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Slide 81
Natalie
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Slide 82
Check Cashing
http://www.vegaschatter.com/files/100501/checks_cashed..jpg
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Slide 83
Check Cashing
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Slide 84
Sarah
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Slide 85
Sarah
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Slide 86
Sarah
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Slide 87
Shipping Containers
http://images03.olx.com/ui/8/84/18/1280992807_108377618_4-cargo-containers-40ft-20-ft-For-Sale.jpg
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Slide 88
Shipping Containers
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Slide 89
Shipping Container Park
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Slide 90
Shipping Container Park
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Slide 91
Shipping Container Park
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Slide 92
Shipping Container Park
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Slide 93
Shipping Container Park
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Slide 94
Bike Sharing
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Slide 95
$50M – Tech Startups
http://img-s.foursquare.com/pix/EN1ZIL0JC5HTCZYD0PW41SWQYJHURTD204ZFZYBFGPM3F5JS.jpg
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Slide 96
$50M – Tech Startups
http://timenerdworld.files.wordpress.com/2011/12/romotivefinal.jpg?w=576
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Slide 97
The City as a Startup
http://bostinno.com/wp-content/uploads/2011/10/startup-sign.png
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Slide 98
$50M – Startups
http://www.shebytes.com/wp-content/uploads/2011/12/venture-for-america-12-12-11.jpg
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Slide 99
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 100
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 101
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 102
$50M – Education, Arts, Culture
http://blogs.middlebury.edu/internship/files/2011/01/teach4America1.jpg
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Slide 103
$50M – Education, Arts, Culture
http://www.vegasnews.com/wp-content/uploads/3_2_12_burn_vegas_kabik-131-9-588.jpg
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Slide 104
$50M – Education, Arts, Culture
http://mikerossart.net/images/mikeross_enter.jpg
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Slide 105
$50M – Education, Arts, Culture
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Slide 106
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Slide 107
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Slide 108
$200M – Real Estate
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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Slide 109
WHEN CITIES DOUBLE IN SIZE…
Productivity and innovation per resident increases by 15%
(But not true for companies)
Accelerate serendipity -> Accelerate learning -> Accelerate productivity and innovation
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Slide 110
3 INGREDIENTS FOR SERENDIPITY
1. Residential density of 100 residents/acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration, creativity, and optimism
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Slide 111
HOW TO ACCELERATE LEARNING & INNOVATION
Maximize serendipitous interactions
Density in the office
Density in the city
Collisions vs. convenience
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Slide 112
Las Vegas City Hall
http://brandonwiegand.com/wp-content/uploads/2010/11/Zappos-City-Hall.jpg
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Slide 113
DIFFERENT GROUPS COLLIDING
1. 2000 Zappos employees2. 1000 Teach For America corp members
and alumni3. Tech Startup Community4. Small Business Community5. Art and Music Communities6. Other Passion Communities7. Local Residents
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Slide 114
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Company
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Slide 115
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Companyas
Community is to a City
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Slide 116
LEARNING FROM ZAPPOS & COWORKING…
Culture is to a Companyas
Community is to a CityValues
InnovationSerendipity
ParticipationUpward Mobility
Attracting Startups and the Creative Class
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Slide 117
Our Secret Weapon
http://static3.vipasuite.com/resources/dyn/images/459355w783h429s185b/_fn/ogden-3.jpg
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Slide 118
LEARNING FROM TED, SUMMIT SERIES, SXSW, BIF…
Curated ContentSerendipity
LearningConnectionsCommunity
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Slide 119
Downtown Vegas Every Day
Curated ContentSerendipity
LearningConnectionsCommunity
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Slide 120
Fremont St. & Las Vegas Blvd.
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Slide 121
Fremont St. & Las Vegas Blvd.
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Slide 122
Fremont St. & Las Vegas Blvd.
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Slide 123
Fremont St. & Las Vegas Blvd.
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Slide 124
Fremont St. & Las Vegas Blvd.
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Slide 125
Fremont St. & Las Vegas Blvd.
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Slide 126
Fremont St. & Las Vegas Blvd.
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Slide 127
Fremont St. & Las Vegas Blvd.
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Slide 128
Fremont St. & Las Vegas Blvd.
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Slide 129
Fremont St. & Las Vegas Blvd.
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Slide 130
Downtown Vegas Monthly Cadence
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Slide 131
Downtown Vegas Monthly Cadence
Week 1 – First Friday Week
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Slide 132
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
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Slide 133
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Week 3 – Fashion Week
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Slide 134
Downtown Vegas Monthly Cadence
Week 1 – First Friday WeekWeek 2 – Tech Week
Week 3 – Fashion WeekWeek 4 – Catalyst Week
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Slide 135
Fashion Incubator – Stitch Factory
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Slide 136
Fashion Incubator – Stitch Factory
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Slide 137
Return On Collisions (ROC)
What is the value of a resident that is out and about in the community?
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Slide 138
Return On Collisions (ROC)
What is the value of a resident that is out and about in the community?
3-4 hours/day
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Slide 139
Return On Collisions (ROC)
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
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Slide 140
Return On Collisions (ROC)
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
x 40 weeks/year
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Slide 141
Return On Collisions (ROC)
What is the value of a resident that is out and about in the community?
3-4 hours/dayx 7 days/week
x 40 weeks/year= 1000 “collisionable” hours/year
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Slide 142
Jake – Flint and Tinder
http://images.fastcompany.com/upload/inline-Made-In-The-USA-Flint-And-Tinder-Undies-And-You-Will-Love-It-b.jpg
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Slide 143
Jake – Flint and Tinder
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Slide 144
Return On Collisions (ROC)
What is the value of a purposeful visitor that contributes to community?
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Slide 145
Return On Collisions (ROC)
What is the value of a purposeful visitor that contributes to community?
12 hours/day
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Slide 146
Return On Collisions (ROC)
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
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Slide 147
Return On Collisions (ROC)
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
x 12 weeks/year
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Slide 148
Return On Collisions (ROC)
What is the value of a purposeful visitor that contributes to community?
12 hours/dayx 7 days/week
x 12 weeks/year= 1000 “collisionable” hours/year
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Slide 149
Return On Collisions (ROC)
“Subscribe” toDowntown Vegas
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Slide 150
Return On Collisions (ROC)
1. 100 residents per acre
2. Street-level activity for residents to collide
3. Culture of openness, collaboration, creativity, and optimism
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Slide 151
Return On Collisions (ROC)
1. 100 residents per acre
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Slide 152
Return On Collisions (ROC)
1. 100,000
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Slide 153
Return On Collisions (ROC)
1. 100,000 “collisionable”
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Slide 154
Return On Collisions (ROC)
1. 100,000 “collisionable” community
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Slide 155
Return On Collisions (ROC)
1. 100,000 “collisionable” community hours
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Slide 156
Return On Collisions (ROC)
1. 100,000 “collisionable” community hours per
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Slide 157
Return On Collisions (ROC)
1. 100,000 “collisionable” community hours per acre
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Slide 158
Return On Collisions (ROC)
1. 100,000 “collisionable” community hours per acre per
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Slide 159
Return On Collisions (ROC)
1. 100,000 “collisionable” community hours per acre per year
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Slide 160
Return On Collisions (ROC)
1. 100,000 “collisionable” community hours per acre per year
2.3 collisionable hours per square foot
per year
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Slide 161
OUR BIG BET… 3 Guiding Principles
Accelerate:1.Collisions2.Community3.Co-Learning
And everything else will fall into place…(productivity, innovation, growth, happiness)
What will people say about downtown?
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Slide 162
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Slide 163
ZAPPOS, DELIVERING HAPPINESS, DOWNTOWN PROJECT
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Slide 164
50% of Humans Live in Cities
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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Slide 165
75% Will Live In Cities in Our Lifetime
http://ecx.images-amazon.com/images/I/510Ph%2BqMw-L.jpg
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Slide 166
The 4-Minute Mile
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Slide 167
The 4-Minute Mile
http://en.wikipedia.org/wiki/File:Iffley_Road_Track,_Oxford_-_blue_plaque.JPG
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Slide 169
A great
brand
is a story that never stops unfolding.
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Slide 170
A great
brandcompany
is a story that never stops unfolding.
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Slide 171
A great
brandcompanycity
is a story that never stops unfolding.
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Slide 172
A great
brandcompanycitycommunity
is a story that never stops unfolding.
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Slide 173
Thank you!
For a copy of this presentation:
For more information:
www.DowntownProject.com
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Slide 174
http://www.youtube.com/watch?v=AF4f3l4a4_A