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14 Amazon Leadership Principles “We use our Leadership Principles every day, whether we’re discussing ideas for new projects or deciding on the best approach to solving a problem. It is just one of the things that makes Amazon peculiar [a word used by Bezos and most Amazonians].” Jeff Bezos “So, the real question for me is, how do you go about maintaining a Day 1 culture? “It’s great to have the scale of Amazon, we have financial resources, we have lots of brilliant people. We can accomplish great things. We have global scope; we have operations all over the world. But the downside of that is that you can lose your nimbleness, you can lose your entrepreneurial spirit, you can lose that kind of heart that small companies often have. And so, if you could have the best of both worlds, if you could have that entrepreneurial spirit and heart, while at the same time having all the advantages that come with scale and scope—think of the things that you could do. “So, the question is how do you achieve that? The scale is good because it makes you robust. A big boxer can take a punch to the head. You also want to dodge those punches. So, you’d like to be nimble; you want to be big and nimble. I find there are a lot of things that are protective of the Day 1 mentality. I already spent some time on one of them, which is customer obsession. I think that’s the most important thing. Customer Obsession: Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership: Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say “that’s not my job.” Invent and Simplify: Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, A Lot: Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious: Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them. Hire and Develop the Best: Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice. Insist on the Highest Standards: Leaders have relentlessly high standards—many people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high quality products, services, and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed. Think Big: Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers. Bias for Action: Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking. Frugality: Accomplish more with less. Constraints breed resourcefulness, self- sufficiency and invention. There are no extra points for growing headcount, budget size or fixed expense. Earn Trust: Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders don’t believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best. Dive Deep: Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdote differ. No task is beneath them. Have Backbone; Disagree and Commit: Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly. Deliver Results: Leaders focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle. One more reason for Amazon’s top innovation score from the Wall Street Journal/Drucker Institute study is their focus on creating small teams and the creative power that is harnessed through small team cooperation. Bezos doesn’t like big and long meetings, nor does he like huge teams. When a meeting is absolutely necessary, he has a rule that boosts their productivity. Again, he calls it the “two pizza rule”—the meeting can’t be any bigger than can be fed by two large pizzas. When you contrast that with other large corporations that use a more bureaucratic structure that can stifle creativity and innovation, it’s easy to see why Amazon keeps coming out on top. So how did Amazon grow from just Bezos and a few developers to 647,500 employees and maintain their “peculiar” culture? I believe one of the biggest reasons is they have tried to be intentional about not letting success “go to their heads.” As I said in the beginning, Amazon is not a perfect company. But obviously, they are doing something right. They have maintained their culture through using the Amazon Leadership Principles with every employee (whether frontline worker or senior executive), and they have many corporate cues and reminders that help them remember their focus on Bezos’ highest value—to be customer obsessed. They continue to innovate even though they hit $100 billion… because to have long- term growth in business, you have to maintain a culture committed to its values and not just to its bottom line. APPLICATION Maintain Your Culture Q: Can you articulate what your company culture is? Q: If you asked the same question of your employees, would their answer be the same as yours? Q: What can you do to reinforce the key (positive) elements of your company culture? For more resources, go to TheBezosLetters.com
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