Physical Spaces for Innovation
Innovation does not happen in neutral spaces. An exploration of how physical environments influence collaboration, experimentation, risk taking and the movement of ideas.
In the movie Arbitrage, there’s a scene where Susan Sarandon huddles her assistants and tells them to thank Zappos for a parcel. Standing front and centre is Tony Hsieh, the CEO of Zappos, making a cameo. I was silently fist-pumping as I knew who he was. I’d followed his journey, read his book and even visited Zappos HQ in Las Vegas.
At 26, Tony sold his first business, LinkExchange, to Microsoft for $265 million. That venture was about tech (and the exit). His next business Zappos was about people. He wanted to create a workplace he loved. The Zappos’ philosophy was to:
Treat every customer interaction as a chance to WOW.
Empower staff to be human.
Build culture first and success will follow.
Amazon bought Zappos in 2009 for $1.2 billion. In case you didn’t know - Zappos is an online shoe retailer.
The Zappos office was nothing flash. It was boxy rooms and low ceilings, but the people made it fun. Posters, streamers, and most memorably, the Zappos throne: a carved wooden seat with a dress-up box of cloaks and crowns. Visitors would don the gear, snap a pic, and post it online. Something lots of other places were doing apparently - but not being that cool this was my first little orchestrated experience and anchor and I was happy to give it a go. This was the early 2000s when social media was still a toddler and we were all about the likes.
Inspired, we put an egg chair into one of the business accelerators I set up (thrones were hard to source). People loved it and it became a photo magnet. Here it is…. and that’s me and Tim (Mahuki’s entrepreneur in residence).
The reason I was in Vegas was to attend a Techstars conference. These were the people we wanted to partner with to bring business acceleration to NZ to help build our start-up ecosystem.
Techstars was founded by angel investors from Boulder, Colorado, a city they chose for lifestyle, then layered with entrepreneurial infrastructure. A model that blends liveability with innovation to make your city a place where entrepreneurs, innovators and students want to live, work and play.
At the conference, I watched a high-flying investor move through the venue with a flock of entrepreneurs trailing him like birds. Like when one bird changes direction and all the rest follow suit, creating this synchronised dance. It was hypnotic to watch and impossible to cut through.
One pitch baffled me. The business was I Can Has Cheezburger, a cat meme site. It had millions of subscribers. Back then, I couldn’t grasp how cat memes were “the next big thing.” Turns out they were and I watch a lot of them. The power of that business wasn’t the content it was the audience. A fanbase of middle-aged women with serious commercial value. The site still exists. Cats rule the internet - cause they’re so darn cute.
After Zappos, Tony shifted focus to revitalising Downtown Las Vegas. He personally invested over $350 million into urban regeneration. That’s legacy work.
Physical space and opportunities for real-life encounters matter in the innovation world.
Running an accelerator, incubator, or co-working space is never just about the physical space (but it’s also all about the space). Good coffee and fast Wi-Fi are basic hygiene. But the real value is in curation and coordination.
When I was setting up Mahuki at Te Papa, I was often asked by international museums about how to design an accelerator. My answer always started with “What are you trying to create?” Because there are many ways to achieve your goals without the intensity of a full noise accelerator programme. Museum led co-working is a great option. Bring talent into your organisation and learn from each other. This can and does work for lots of other industries.
At Mahuki, we had a whole museum on our doorstep. Feeling flat or need a break from your end of year accounts? Go hang with some mind-blowing art, jump in the earthquake house or watch school kids interacting in the nature exhibit.
At the time of my Zappos - Techstars trip, Wellington’s ecosystem was buzzing Creative HQ (where I was then), Angel HQ, Ākina, Biz Dojo, PledgeMe, Enspiral, Dev Academy, Summer of Tech, VicLink and Webstock (to name a few). All fuelled by a city plan that aimed to make Wellington a magnet for entrepreneurs.
Some of those ventures are still thriving. Others served their purpose and faded out. A few we miss and we should never have let them go.
At the time I thought there were too many things going on but in retrospect I see that all of them were needed for the energy and momentum created. Enabling multiple pathways and opportunities for people to vibe creatively and commercially is the key to economic vitality.
It doesn’t have to be permanent fixtures. Just this week I saw the launch of BizHub in Porirua - a fortnightly activation for founders to get together and work on their business. That’s an awesome idea.
Another great example are the Jam Sessions run by the Ministry of Awesome headquartered in Christchurch. One of quirkiest events I’ve spoken at. Quick fire inspiration sessions with …. jam (as in sandwich spread) and great speakers. I love it. Not just because I’m partial to a sweet marmalade - but I just love the creative out of the box thinking - designing experiences and spaces with what you have. Not what you don’t have (money for flash catering).
I wonder if it would have been as memorable, as successful or as long running - without that early framing. I got the idea for this newsletter attending the Ministry of Awesome Electrify conference this year. It inspired me to dedicate some time to working on not just in my business and to be braver.
Tragically Tony Hseih passed away at 43 years. He blazed an incredible path - creating spaces and experiences for people to flourish and create magic together
In the end, it’s not about the furniture, the Wi-Fi, or the snacks. It’s about people.
Spaces come and go, but the sparks they ignite the ideas, the collisions, the unexpected friendships those leave a legacy.
Whether it’s a carved throne, an egg chair, or just jam on toast, it’s the intention behind the experience that counts.
Create with what you have. Curate with care. The magic will follow.
Postscript - Why We Love Cat Reels
No one plans to watch 20 cat videos (or dogs, ducks, donkeys etc). Yet here we are.
These chaotic gems deliver instant joy. In a loud world, these small, fluffy moments boost our mood, offer unfiltered, unscripted authenticity and engender parasocial connection (they feel like our best friends!). I once heard of a very successful sold out public programme run by a museum where they only showed cat reels for 2 hours. Or what about the neighbourhood - show us your cat - event where people walk around the streets and people show them their cats.
Cats and co-working. I like office dogs also. In fact I’ll settle for any small animals….. but can I film them?
