The Power of Happiness

happiness The power of

Jennifer Aaker Stanford Graduate School of Business

@aaker

Why does happiness

matter?

-0.6 -0.4 -0.2 0 0.2 0.4 0.6

Exploration strivings

Creative episodes

Group cooperativeness

Likability as work partner

Customer service

Job performance

Organizational CitizenshipBehavior

Turnover intentions

Job burnout

Absenteeism

Lyubormirsky, King and Diener (2005)

ROI of happiness

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 don’t really).

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As wealth increases,

happiness does not. Easterlin Paradox (1974)

Pretty Happy

Very Happy

Not Very Happy

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.

We don’t 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 – we’ll 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.

1 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.

THE PROMISE

Excitement

discovery

THE PROMISE

Conquer the world

pursuit

THE PROMISE

Work+family+health

balance

THE PROMISE

Significance

impact

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?

DESIGNING HAPPINESS | © JENNIFER AAKER D E S I G N I N G H A P P I N E S S / © J E N N I F E R A A K E R D E S I G N I N G H A P P I N E S S / © J E N N I F E R A A K E R D E S I G N I N G H A P P I N E S S / © J E N N I F E R A A K E R

2 DESIGN FOR

MEANINGFULNESS It is a better compass

H a p p i n e s s i s n o t a c h i e v e d b y

c o n s c i o u s p u r s u i t ; i t i s g e n e r a l l y

t h e b y p r o d u c t o f o t h e r a c t i v i t i e s .

B r a v e N e w Wo r l d

A L D O U S H U X L E Y

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.

H

A

P

I

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.

Cultivating meaningful relationships. Achieved

through shared experiences where collaboration

is meaningful, innovative, and fun.

Perceiving that you are in control of your future

path, able to work on what you’re good at while

learning new skills. Achieved when you feel you

have the trust from yourself and others to make

critical decisions.

Having your work touch the lives of others.

Achieved when you feel valued and see the

concrete, measurable, positive difference that

you’re actions have on others as you drive toward

excellence.

Higher Purpose

Autonomy Impact

People

Drivers of happiness

Fear

Confusion

Lack of control

Loneliness

Higher Purpose

Autonomy Impact

People

Drivers Kryptonites

People Impact Autonomy

Companies resemble their leaders

John Mackey WHOLE FOODS

Larry Page GOOGLE

Tony Hsieh ZAPPOS

Steve Jobs APPLE

Higher Purpose

Happiness without

meaning is fleeting.

Aim for meaningfulness.

3 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

PERFORMANCE

GAP HAPPINESS

Create surprising moments of

authentic happiness.

How are you creating

small moments of delight?

4 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)

Photo: Hector Garcia

Is it the same for

corporations?

So how do we cultivate a

coherent story?

Know your story.

Photo: Jose Valiente

Your past stories.

Your present stories.

Photo: Fatma M.

Photo: Daniel Silviera

Your future stories.

What is the throughline.

Make your customer

integral to the story.

Photo: Bethan

Brands too often make the

mistake of trying to be the hero.

D E S I G N I N G H A P P I N E S | ™ J E N N I F E R A A K E R

The customer is

the hero.

Don’t manufacture

your story.

Photo: Xevi V.

When you share the story,

you need to feel authentic.

People can tell when you aren’t.

3 DESIGN FOR MOMENTS Simple things matter.

Employees must believe

(and be inspired by) the story.

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 you’re 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 don’t 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

Jack Maguire

John Walsh

Stephen Denning

Julie Fuoti & Lisa Johnson

Nancy Duarte

Nancy Duarte

Andy Goodman

Jennifer Aaker and Andy Smith

Robert McKee

Chip & Dan Heath

Jonathan Harris & Sep Kamvar

HOW TO TELL A

WORKBOOK

Thank you