happiness

Stanford Graduate School of Business @aaker

T h e p o w e r of

Jennifer Aaker

Why does happiness matter?

ROI of happiness
Job burnout Turnover intentions

Absenteeism

Organizational Citizenship Behavior Job performance Customer service Likability as work partner Group cooperativeness

Creative episodes
Exploration strivings -0.6 -0.4 -0.2 0 0.2 0.4 0.6
Lyubormirsky, King and Diener (2005)

Happy customers are more loyal.

They pay more for a great experience.

They talk about their brands.

Misperceptions of happiness

We think we know what makes us happy.

(But we dont really).

As wealth increases, happiness does not.

Easterlin Paradox (1974)
80
Pretty Happy

45 40 35 30 25

60

40

Very Happy

20 15

20
Not Very Happy

10
5 0 1972 1976 1980 1984 1988 1992 1996 2000

Year

Source: Bureau of Economic Analysis (GDP data) General Social Survey Data from 1972 2006. Question : How happy are you? (Very Happy, Pretty Happy, Not Very Happy). N = 1500.

GDP per Capita ( Thousands of dollars)

% Survey Responses

We dont accurately remember what makes

us happy.

Aaker, Drolet and Griffin (2008)

When we do achieve happiness, it fades. We

adjust surprisingly quickly.

Are we commoditizing happiness? If we do a, b and c well be happy.

How are we measuring success? By what you have acquired or achieved?

How might we rethink happiness? If the goal is not to find happiness.

DESIGN FOR FLEXIBLITY

The meaning of happiness shifts over the life course.

People often assume that happiness is one thing.

But the meaning of happiness shifts across the life course.

DESIGNING HAPPINESS | JENNIFER AAKER

Harris and Kamvar; WeFeelFine (2010)

When our meaning of happiness shifts, we begin to search for different things.

discovery

THE PROMISE

Excitement

pursuit

THE PROMISE

Conquer the world

balance

THE PROMISE

Work+family+health

impact

THE PROMISE

Significance

As a brand, what type of happiness are you cultivating?

As a company, are you designing environments where your employees can shift as their meaning of happiness shifts?

2
D E DESIGNING HAPPINESS E S SJENNIFER AAKER J E N N I F E R A A K E R SIGNING HAPPIN | /

DESIGN FOR MEANINGFULNESS

It is a better compass

Happiness is not achieved by conscious pursuit; it is generally the by product of other activities.

ALDOUS HUXLEY
Brave New World

What is meaningfulness?

Lasting Important Awe-evoking Often intimidating

How does that work within companies?

Higher Purpose

Achieved when you feel a part of something bigger than yourself and the shared goal matters significantly.

Drivers of happiness
Higher Purpose

H
Autonomy

Feeling that you are part of something meaningful. Achieved when you feel a part of something bigger than yourself and where the shared goal matters significantly.

Impact

A P I

Perceiving that you are in control of your future path, able to work on what youre good at while learning new skills. Achieved when you feel you have the trust from yourself and others to make critical decisions.

People

Cultivating meaningful relationships. Achieved through shared experiences where collaboration is meaningful, innovative, and fun.

Having your work touch the lives of others. Achieved when you feel valued and see the concrete, measurable, positive difference that youre actions have on others as you drive toward excellence.

Drivers
Higher Purpose

Kryptonites
Confusion

Impact

Autonomy

Fear

Lack of control Loneliness

People

Companies resemble their leaders

Higher Purpose Autonomy People Impact

John Mackey
WHOLE FOODS

Larry Page
GOOGLE

Tony Hsieh
ZAPPOS

Steve Jobs
APPLE

Happiness without meaning is fleeting. Aim for meaningfulness.

DESIGN FOR MOMENTS

Small moments matter more than we think.

I am happy when we have family movie night.

Devon Smith

3 1
Frederickson (2009)

EXPECTATIONS

GAP

HAPPINESS

PERFORMANCE

Create surprising moments of authentic happiness.

How are you creating small moments of delight?

DESIGN FOR STORIES

The stories we tell ourselves affect the happiness we feel.

Studies show that a person with an incoherent story is more likely to experience depression
Crossley (2000)

Is it the same for corporations?

Photo: Hector Garcia

So how do we cultivate a coherent story?

Know your story.

Your past stories.

Photo: Jose Valiente

Your present stories.

Photo: Fatma M.

Your future stories.

Photo: Daniel Silviera

What is the throughline.

Make your customer

integral to the story.

Brands too often make the mistake of trying to be the hero.

Photo: Bethan

The customer is the hero.

DESIGNING HAPPINES | JENNIFER AAKER

Dont manufacture
your story.

When you share the story, you need to feel authentic. People can tell when you arent.
Photo: Xevi V.

Employeesmatter. believe Simple things must (and be inspired by) the story.

DESIGN FOR MOMENTS

Protagonists make a story relatable

Brands often feel manufactured. People do not.

There will be a time when you need a new story.

Angelina Jolie

Use stories. They are engines of growth and innovation.

Stories help customers make the jump to where youre going.

A good story is like a roller coaster.

Bank your stories They are assets.

What are your signature stories?

What stories reveal suffering and transformation?

What stories are a part of something larger?

So, in sum

We think we can attain happiness. And often ask, how can I get happier? But people dont know what really makes them happy (although they think they do).

Rather than trying to get happy or be happier, could we rethink happiness?

BOOKS
Annette Simmons Julie Fuoti & Lisa Johnson

Jennifer Aaker and Andy Smith

Jack Maguire

Nancy Duarte

Robert McKee

John Walsh

Nancy Duarte

Chip & Dan Heath

Andy Goodman Stephen Denning

Jonathan Harris & Sep Kamvar

HOW TO TELL A

Thank you
WORKBOOK