Amazon Leader Quotes

Nine had heard whisperings that the secretive Bilderberg Group was effectively the World Government, undermining democracy by influencing everything from nations' political leaders to the venue for the next war. He recalled persistent rumors and confirmed media reports that the Bilderberg Group had such luminaries as Barack Obama, Prince Charles, Bill Gates, Rupert Murdoch, Tony Blair, Bill and Hillary Clinton, George Bush Sr. and George W. Bush. Other Bilderberg members sprung forth from Nine’s memory bank. They included the founders and CEOs of various multinational corporations like Facebook, BP, Google, Shell and Amazon, as well as almost every major financial institution on the planet.

What’s clear is that we need business leaders who envision, and enact, a future with more jobs—not billionaires who want the government to fund, with taxes they avoid, social programs for people to sit on their couches and watch Netflix all day. Jeff, show some real fucking vision.

A well-written narrative and the process of writing it will force teams to get beyond being polite and get to insights.

It would certainly be much easier and socially cohesive to just compromise and not debate, but that may lead to the wrong decision.

Why do programs and projects take too long, go over budget, become bloated, and fail to deliver according to expectations? Execution and project management technique can be reasons, but the biggest root cause is failing to accurately define the end state at the beginning.

Achieving clarity can be uncomfortable. It can disrupt. People tend to want to avoid conflict, be collaborative, and basically accept all the ideas and all the wording. This tactic does not demand the best thinking and avoids the sensitive topics in the spirit of “getting along.

At the heart of how Amazon innovates is its six-page memo, which kicks off everything the company does. Executives must write a press release, complete with hypothetical customer reactions to the product launch. That is followed by a series of FAQs, anticipating questions customers, as well as internal stakeholders, might have.

In a company known for its inventiveness, separable, single-threaded leadership has been one of Amazon’s most useful inventions. We discuss it in chapter three. This is the organizational strategy that minimizes the drag on efficiency created by intra-organizational dependencies. The basic premise is, for each initiative or project, there is a single leader whose focus is that project and that project alone, and that leader oversees teams of people whose attention is similarly focused on that one project.

Superpowers follow passions. Careers where you’re mostly working within your passions are careers where you are more likely to be happy, fulfilled, and super powerful. You want a job where being your natural self sets you up for success. Conversely, if you find yourself in a job that relies on core skills that don’t feel fun or innate to you, you’re going to feel like you’re swimming against the current all the time. It won’t set you or your work up for success. Knowing your superpowers is mostly about knowing what you love.

If Bezos took one leadership principle most to heart—which would also come to define the next half decade at Amazon—it was principal #8, “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. In 2010, Amazon was a successful online retailer, a nascent cloud provider, and a pioneer in digital reading. But Bezos envisioned it as much more. His shareholder letter that year was a paean to the esoteric computer science disciplines of artificial intelligence and machine learning that Amazon was just beginning to explore. It opened by citing a list of impossibly obscure terms such as “naïve Bayesian estimators,” “gossip protocols,” and “data sharding.” Bezos wrote: “Invention is in our DNA and technology is the fundamental tool we wield to evolve and improve every aspect of the experience we provide our customers.

These include: the Bar Raiser hiring process that ensures that the company continues to acquire top talent; a bias for separable teams run by leaders with a singular focus that optimizes for speed of delivery and innovation; the use of written narratives instead of slide decks to ensure that deep understanding of complex issues drives well-informed decisions; a relentless focus on input metrics to ensure that teams work on activities that propel the business. And finally there is the product development process that gives this book its name: working backwards from the desired customer experience. Many of the business problems that Amazon faces are no different from those faced by every other company, small or large. The difference is how Amazon keeps coming up with uniquely Amazonian solutions to those problems. Taken together, these elements combine to form a way of thinking, managing, and working that we refer to as being Amazonian, a term that we coined for the purposes of this book. Both of us, Colin and Bill, were “in the room,” and—along with other senior leaders—we shaped and refined what it means to be Amazonian. We both worked extensively with Jeff and were actively involved in creating a number of Amazon’s most enduring successes (not to mention some of its notable flops) in what was the most invigorating professional experience of our lives.

Unlike John Lasseter’s bosses at Disney, Bezos was open to the entrepreneurial contributions of Amazon’s individual employees—even when those ideas were outside what Wall Street (and even his own board of directors) considered the company’s core business. AWS represents precisely the kind of value creation any CEO or shareholder would want from their employees. Want your employees to come up with multibillion-dollar ideas while on the job? You have to attract professionals with the founder mind-set and then harness their entrepreneurial impulses for your company. As Intuit CEO Brad Smith told us, “A leader’s job is not to put greatness into people, but rather to recognize that it already exists, and to create the environment where that greatness can emerge and grow.

Wonder Woman represented modern America as leader of the free world, and champion of the downtrodden. She forsook her kingdom and immortality to make the whole world a better place and, most of all, to fight for the rights of females. Just as America emerged as a global peacekeeper, Wonder Woman's adventures took her wherever women were in peril and their freedom was threatened, like the planet Venus with its butterfly-winged women, or the subterranean paradise Eveland.'Ihe "loving ways of the Amazons" that she was sent to teach the world were presumably the wisdom of the matrilineal society that predated the Greeks. "I can make bad men good and weak woman strong!" she says, as she spreads her message of empowerment across "man's world.

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.

True collaboration is only possible in an atmosphere of trust. And that atmosphere is always set by a leader who has earned his team members’ trust and who trusts them in return.

You are created to be a creator. God does not give anyone a finished product. God did not create the telephone, car, computers, Facebook, amazon, ebay, God did not make a chair, He created a tree for you to produce the chair. He gave you the raw materials to look at and ask yourself what can I do with this? Are you a producer or a consumer? .....ponder

The single biggest problem in communication is the illusion that it has taken place.

Writing ideas and proposals in complete narratives results in better ideas, more clarity on the ideas, and better conversation on the ideas. You will make better decisions about what to do and how to do it. The initiatives will be smaller and less risky. Writing narratives is hard, takes a long time, and is an acquired skill for the organization. High standards and an appreciation for building this capability over time are required.

The true cost of a hiring mistake is hard to calculate: lost time, lost culture, lost business, lost opportunity, lost confidence.

Amazon’s founder, Jeff Bezos, has said that when mapping the future, leaders must “be stubborn on vision but flexible on details.”1 You may have correctly forecast a new trend and set a course of action; now, you must explore the particulars of that course, looking for possible roadblocks.

Amazon’s Jeff Bezos calls our modern times the “golden age” of AI,

We pay very low cash compensation relative to most companies,” says Bezos. “We also have no incentive compensation of any kind. And the reason we don’t is because it is detrimental to teamwork.

Start important projects or changes with an announcement. Be clear about what the “killer feature” is for the future state capability. Give it to one leader to make this vision happen across the organization. Everyone works for this person to transform this vision into reality.

The Amazon Way on IoT 10

three key opportunities created by IoT.         1. Reinventing the customer experience         2. Improving operational effectiveness         3. Developing new business models

Principle 2: Customers expect seamless experiences across platforms and channels. The Internet of Things will be instrumental to helping you create this, enabling new interactions that bring ease and delight to your customers. In

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.

Leaders have to understand that innovation is not about sourcing from Alibaba and selling on Amazon.

Fall River, an old mill town fifty miles south of Boston. Median household income in that city is $33,000, among the lowest in the state; unemployment is among the highest, 15 percent in March 2014, nearly five years after the recession ended. Twenty-three percent of Fall River’s inhabitants live in poverty. The city lost its many fabric-making concerns years ago and with them it lost its reason for being. People have been deserting the place for decades.14 Many of the empty factories in which their ancestors worked are still standing, however. Solid nineteenth-century structures of granite or brick, these huge boxes dominate the city visually—there always seems to be one or two of them in the vista, contrasting painfully with whatever colorful plastic fast-food joint has been slapped up next door. Most of these old factories are boarded up, unmistakable emblems of hopelessness right up to the roof. But the ones that have been successfully repurposed are in some ways even worse, filled as they often are with enterprises offering cheap suits or help with drug addiction. A clinic in the hulk of one abandoned mill has a sign on the window reading, simply, “Cancer & Blood.” The effect of all this is to remind you with every prospect that this is a place and a way of life from which the politicians have withdrawn their blessing. Like so many other American scenes, this one is the product of decades of deindustrialization, engineered by Republicans and rationalized by Democrats. Fifty miles away, Boston is a roaring success, but the doctrine of prosperity that you see on every corner in Boston also serves to explain away the failure you see on every corner in Fall River. This is a place where affluence never returns—not because affluence for Fall River is impossible or unimaginable, but because our country’s leaders have blandly accepted a social order that constantly bids down the wages of people like these while bidding up the rewards for innovators, creatives, and professionals. Even the city’s one real hope for new employment opportunities—an Amazon warehouse that is in the planning stages—will serve to lock in this relationship. If all goes according to plan, and if Amazon sticks to the practices it has pioneered elsewhere, people from Fall River will one day get to do exhausting work with few benefits while being electronically monitored for efficiency, in order to save the affluent customers of nearby Boston a few pennies when they buy books or electronics.15

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.

Stay Loyal to People, Not Organizations Mitt Romney was wrong—corporations aren’t people. As British Lord Chancellor Edward Thurow observed more than two centuries ago, business enterprises “have neither bodies to be punished, nor souls to be condemned.” As such, they do not deserve your affection or your loyalty, nor can they repay it in kind. Churches, countries, and even the occasional private firm have been touting loyalty to abstract organizations for centuries, usually as a ploy to convince young people to do brave and foolish things like go to war so old people can keep their land and treasure. It. Is. Bullshit. The most impressive students in my class are the young men and women who have served their country. We benefit (hugely) from their loyalty to our country, but I don’t think we (the United States) pay them their due. I believe it’s a bad trade for them. Be loyal to people. People transcend corporations, and people, unlike corporations, value loyalty. Good leaders know they are only as good as the team standing behind them—and once they have forged a bond of trust with someone, will do whatever it takes to keep that person happy and on their team. If your boss isn’t fighting for you, you either have a bad boss or you are a bad employee.

Amazon Leadership Principle—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.

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].”30 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.

Each meeting starts with a thirty-minute quiet time where everyone thoroughly reads the memo. From there, all attendees are asked to share gut reactions—senior leaders typically speak last—and then delve into what might be missing, ask probing questions, and drill down into any potential issues that may arise. “I definitely recommend the [six-page] memo over PowerPoint. And the reason we read them in the room, by the way, is because just like, you know, high school kids, executives will bluff their way through the meeting as if they’ve read the memo. Because we’re busy. And so, you’ve got to actually carve out the time for the memo to get read and that’s what the first half hour of the meeting is for and then everybody has actually read the memo, they’re not just pretending to have read it. It’s pretty effective.” —2018 Forum on Leadership, “Closing Conversation with Jeff Bezos,” George W. Bush Presidential Center at SMU23

One of the things that struck me at Amazon was how much influence and decision-making ability developers had. The most senior leaders on many of these projects at the time weren’t business leaders, but technical leaders.

We are what we repeatedly do. Excellence, then, is not an act, but a habit. —Aristotle

idea 22: Customer expectations are rising across all sectors and experiences. Delivering to those expectations and competing in the digital era are enabled by operational excellence. Digital experiences and the Internet of Things (IoT) offer opportunities to enhance your operational excellence programs.

For example, he suggested that every leader should be required to take a course called “As Life Happens,” to learn how to sensitively manage an employee whose personal life might be interfering with their work obligations. Niekerk recalled that colleagues who read his paper said that it was among the best analyses they had seen of the cultural challenges that were so obviously plaguing the company at its twentieth anniversary.

George instead reorganized Alexa around the Amazonian ideal of fast-moving “two pizza” teams, each devoted to a specific Alexa domain, like music, weather, lighting, thermostats, video devices, and so on. Each team was run by a so-called “single-threaded leader” who had ultimate control and absolute accountability over their success or failure. (The phrase comes from computer science terminology; a single-threaded program executes one command at a time.)

Alexa execs, like leaders elsewhere in Amazon, became frequent recipients of the CEO’s escalation emails, in which he forwarded a customer complaint accompanied by a single question mark and then expected a response within twenty-four hours.

for Berners-Lee today there is some regret as he looks back at the birth of the Web. The Web was built to decentralize power and create open access, yet, he noted, “popular and successful services (search, social networking, email) have achieved near-monopoly status. Although industry leaders often spur positive change, we must remain wary of concentrations of power.” Notice the tentative voice: he doesn’t mention Google and Facebook by name. Tim Berners-Lee never got rich on his invention. He gave it to the world for free, so he remains dependent on research funding from giant corporations.

At many companies, when the senior leadership meets, they tend to focus more on big-picture, high-level strategy issues than on execution. At Amazon, it’s the opposite. Amazon leaders toil over the execution details and regularly embody the Dive Deep leadership principle, which states: “Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes differ. No task is beneath them.

You must wring out the last drop of capability every single day until you and your organization are great. Then wash, rinse, and repeat.

There’s a slogan in Silicon Valley: Step one, install software. There is no step two. That’s it. That’s how easy you have to be.”1

When a team takes ownership of its problem, the problem gets solved. It is true on the battlefield, it is true in business, and it is true in life. —Jocko Willink

1.   Identify your core capabilities as a business. Can you define precisely what gives your company competitive advantage? How easily can it be imitated? How do you deliver value to your customers? Evaluate your business as a set of processes and capabilities. Be clear on the definition, and break down big processes into smaller functions and services. 2.   Identify the services. Think through what the service, and the API for the service, might be. How do you make it a “black box”? In other words, how will you protect it from replication and theft? 3.   Where’s your advantage? How would you offer best-in-class commercial terms? Commercial terms include cost, speed, availability, quality, flexibility, and features. 4.   Can it be profitable? Would these commercial terms and capabilities be viable in the market? Would it be a viable profitable business for you? 5.   Test and evaluate. You have a critical and fact-based understanding of your core capabilities, their gaps, and the potential benefit (or lack thereof) of a platform. Build your agile approach to testing, learning, and building value as you go.

Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes differ. No task is beneath them.

Defining the basics of the culture, articulating leadership principles, regularizing essential practices—Bar Raiser hiring, teams with single-threaded leaders, written narratives, Working Backwards, focusing on input metrics—all these things have proved to be essential to us in other endeavors. Indeed, we can’t imagine doing business without them.

At the end of 1999 I was the editor of Time, and we made a somewhat offbeat decision to make Bezos our Person of the Year, even though he wasn’t a famous world leader or statesman. I had the theory that the people who affect our lives the most are often the people in business and technology who, at least early in their careers, aren’t often found on the front pages. For example, we had made Andy Grove of Intel the Person of the Year at the end of 1997 because I felt the explosion of the microchip was changing our society more than any prime minister or president or treasury secretary. But as the publication date of our Bezos issue neared in December 1999, the air was starting to go out of the dot.com bubble. I was worried—correctly—that internet stocks, such as Amazon, would start to collapse. So I asked the CEO of Time Inc., the very wise Don Logan, whether I was making a mistake by choosing Bezos and would look silly in years to come if the internet economy deflated. No, Don told me. “Stick with your choice. Jeff Bezos is not in the internet business. He’s in the customer-service business. He will be around for decades to come, well after people have forgotten all the dot.coms that are going to go bust.

The main components of an OP1 narrative are: Assessment of past performance, including goals achieved, goals missed, and lessons learned Key initiatives for the following year A detailed income statement Requests (and justifications) for resources, which may include things like new hires, marketing spend, equipment, and other fixed assets Each group works in partnership with its finance and human resources counterparts to create their detailed plan, which is then presented to a panel of leaders.

Dive Deep. Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes 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.

Amazon’s Leadership Principles6 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 do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best.

Amazon’s Leadership Principles6 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.

He laid out the defining characteristics, workflow, and management as follows. A two-pizza team will: Be small. No more than ten people. Be autonomous. They should have no need to coordinate with other teams to get their work done. With the new service-based software architecture in place, any team could simply refer to the published application programming interfaces (APIs) for other teams. (More on this new software architecture to follow.) Be evaluated by a well-defined “fitness function.” This is the sum of a weighted series of metrics. Example: a team that is in charge of adding selection in a product category might be evaluated on: a)  how many new distinct items were added for the period (50 percent weighting) b)  how many units of those new distinct items were sold (30 percent weighting) c)  how many page views those distinct items received (20 percent weighting) Be monitored in real time. A team’s real-time score on its fitness function would be displayed on a dashboard next to all the other two-pizza teams’ scores. Be the business owner. The team will own and be responsible for all aspects of its area of focus, including design, technology, and business results. This paradigm shift eliminates the all-too-often heard excuses such as, “We built what the business folks asked us to, they just asked for the wrong product,” or “If the tech team had actually delivered what we asked for and did it on time, we would have hit our numbers.” Be led by a multidisciplined top-flight leader. The leader must have deep technical expertise, know how to hire world-class software engineers and product managers, and possess excellent business judgment. Be self-funding. The team’s work will pay for itself. Be approved in advance by the S-Team. The S-Team must approve the formation of every two-pizza team.

The use of anecdotes and exception reporting has enabled leaders to audit at scale in a very detailed way.

The Dive Deep leadership principle states, “Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes differ. No task is beneath them.

Leaders do not believe their body odor smells of perfume

At Amazon, they take this principle to its logical extreme: a “single-threaded leader” is “100% dedicated and accountable” for pushing one solution forward. “The best way to undercut a strategic initiative is to make it someone’s part-time job,” writes Tom Godden, an enterprise strategist at Amazon Web Services.

Be led by a multidisciplined top-flight leader. The leader must have deep technical expertise, know how to hire world-class software engineers and product managers, and possess excellent business judgment. Be self-funding. The team’s work will pay for itself. Be approved in advance by the S-Team. The S-Team must approve the formation of every two-pizza team.

By mid-2005, Steve had hired leaders of the appropriate level and expertise to run each element of our product and business vision and had modified the org structure to accommodate them. With each modification, the scope of each leader’s responsibilities would become narrower, but the intended scale of each role was greater. At most companies, reducing a leader’s scope would be considered a demotion, and in fact there were many VPs and directors who saw each of these changes in that way. At Amazon, it was not a demotion. It was a signal that we were thinking big and investing in digital for the long term.

The “institutional no” is a big reason why Amazon could have made an error of omission in this case. Jeff and other Amazon leaders often talk about the “institutional no” and its counterpart, the “institutional yes.” The institutional no refers to the tendency for well-meaning people within large organizations to say no to new ideas. The errors caused by the institutional no are typically errors of omission, that is, something a company doesn’t do versus something it does. Staying the current course offers managers comfort and certainty—even if the price of that short-term certainty is instability and value destruction later on. Moreover, the errors of omission caused by the institutional no can be notoriously tricky to spot. Most businesses don’t have the tools to evaluate the cost of not doing something. And when the cost is high, they only realize when it’s too late to change.

The Amazon Deliver Results leadership principle states, “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.” Shipping speed is a key input metric for Amazon. So, if you are customer obsessed, then you’re also obsessed with measuring and improving the shipping experience for customers.

It is worth noting here that, at Amazon, even the most senior executives review the full WBR deck of metrics, including all the inputs and outputs. Metrics—as well as anecdotes about the customer experience—are the area where the leadership principle Dive Deep is most clearly demonstrated by senior leaders. They carefully examine the trends and changes in the metrics; audit incidents, failures, and customer anecdotes; and consider whether the input metrics should be updated in some way to improve the outputs.

The Earn Trust leadership principle exists in part to prevent this behavior from occurring. It states, “Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best.” But these meetings, in the early days, clearly exemplified where we failed to live up to that principle. The original, well-intentioned meeting was set up to improve the software systems from one week to the next. But it gained a life of its own, and sometimes turned a roomful of smart people with probing questions into an angry mob, devouring those who could make a difference and robbing them of their very will to succeed.

When we have invented, our long-term, patient approach—driven by customer need—has been fundamentally different from the more conventional “skills-forward” approach to invention, in which a company looks for new business opportunities that neatly fit with its existing skills and competencies. While this approach can be rewarding, there is a fundamental problem with it: the company will never be driven to master new skills and develop new competencies, hire new kinds of leaders, or create different types of organizations. Amazon’s Working Backwards process—starting with customer needs, not corporate needs or competencies—often demands that, in Jeff’s words, we “exercise new muscles, never mind how uncomfortable and awkward-feeling those first steps might be.

Ban PowerPoint as a tool to discuss complicated topics and start using six-page narratives and PR/FAQ documents in your leadership team meetings. This can be implemented almost instantly. There will be pushback and grumbling, but we’ve found it produces results swiftly, and eventually your leaders will say to themselves, “We can never go back to the old way.

The other crucial component of the STL model is a separable, single-threaded team being run by a single-threaded leader like Tom. As Jeff Wilke explains, “Separable means almost as separable organizationally as APIs are for software. Single-threaded means they don’t work on anything else.

What was originally known as a two-pizza team leader (2PTL) evolved into what is now known as a single-threaded leader (STL). The STL extends the basic model of separable teams to deliver their key benefits at any scale the project demands. Today, despite their initial success, few people at Amazon still talk about two-pizza teams.

While it is tempting to suggest the meeting impacted Jeff’s thinking, only Jeff can speak to that. What we can say is what Jeff did and did not do afterward. What he didn’t do (and what many companies would have done) is to kick off an all-hands-on-deck project to combat this competitive threat, issue a press release claiming how Amazon’s new service would win the day, and race to build a copycat digital music service. Instead, Jeff took time to process what he learned from the meeting and formed a plan. A few months later, he appointed a single-threaded leader—Steve Kessel—to run Digital, who would report directly to him so that they could work together to formulate a vision and a plan for digital media. In other words, his first action was not a “what” decision, it was a “who” and “how” decision.

Over our long march to building Amazon’s digital business, we proved a powerful lesson: it takes exceptionally patient and unwavering leadership to persevere through the prolonged process of building a new business and navigating through transformative times in an established industry with entrenched interests. The fact that we entered as total beginners and emerged as industry leaders is in no small part a result of our adherence to being Amazonian in our principles and our way of thinking, including thinking big, thinking long-term, being obsessed with customers, being willing to be misunderstood for long periods of time, and being frugal—principles that few companies are capable of maintaining in the face of quarterly reporting requirements and the daily gyrations of the stock market.

The invention approach required the endurance to evaluate and discard many options and ideas. So, as we were considering which path to take—build or buy—we took countless meetings with different companies in the digital media business. In addition to enabling us to understand our options for potential acquisition, it was a productive way for us to get up to speed quickly on different aspects of the digital media business, as the founders and leaders of these companies shared their experience and insights from working on a variety of product challenges. In parallel, we were writing some of our first PR/FAQs for digital media products, which we would review and discuss with Jeff. The two processes reinforced one another, and by the end of 2004, our thinking and vision had become clearer. As

Option one would be the skills-forward path—that is, using the existing skills and assets of the company to drive business opportunities. Leaders at most companies would likely be praised for choosing this path. The danger is that while they stand atop this local optimum, someone else will figure out how to scale a higher peak they couldn’t see at the time due to risk aversion.

Think about how most large companies operate. Big-company politics tend to rule the day. Discussions are not forthright. Meetings are layered in so much posturing and subtle deception, they are downright Shakespearean. Seniority and titles matter more than having the right data or insight. People speak out of both sides of their mouths. They smile and nod their heads yes without agreeing. In this world, civility is more important than being right. Results suffer for the sake of harmony.

However, it’s important not to twist this notion to mean that being a great colleague or respectful to others is not important. It’s just that it’s not enough, and it’s not the top priority. Being nice and getting along are necessary and valued. You can’t achieve the right results if you leave nothing but burned bridges behind you. But getting along is simply not the most important thing.

Think about your organization’s priorities and social norms. If getting along is more valued than being right, the business will become more about getting along than about doing the right thing over time. This value seeps in slowly, but definitively.

Consensus poses two dangers for the business trying to be innovative. The first danger is that hard, honest, forthright conversations are not being had. The second danger is that ideas that are truly innovative tend to be counterintuitive, and they often seem stupid, impossible, counterproductive, or all three.

In this technology-driven era, cloud services are no longer a luxury but a necessity. Among the cloud service providers, Amazon Web Services (AWS) has emerged as a leader, offering a comprehensive suite of tools and services. This article centred around the keyword ‘Buy Amazon AWS Accounts,’ elucidates on Amazon AWS, its types, resources, and costs involved.

Bezos told employees that they could count on Amazon’s customers, those who had embraced the company and the services it provided, to remain loyal—right up until someone else, be it a significant competitor or a small start-up, gave them more of what they wanted.

He tells his colleagues that it is not the customers’ job to create something they don’t know they need. That’s Amazon’s job.

Most companies only have a few GMs at the very highest levels. The people underneath them play a functional role, but the GM owns the P&L outcome. Amazon, in contrast, has GMs running things at every level. GMs report to other GMs. Some GMs are Level 7 on the pay scale and others are at Level 3. In addition to being “single-threaded leaders” who drive urgency and focus for each line of business, these GM roles represent thousands of learning opportunities for future leaders around Amazon.

Philip Schiller, senior vice president of worldwide marketing for Apple

At the heart of Amazon’s scale are small teams with empowered, mission-driven leaders. In essence, a collection of startups.

Adding more junior members of the company to the WBR can increase their engagement in the business and further their growth and development—by allowing them to observe the discussions and thinking of more seasoned leaders.

Nadella has struck a powerful balance—aligning the Azure ecosystem, where Microsoft is clearly the leader, while allowing partners in the ecosystem to leverage their participation toward progress elsewhere. His goal is not to create the operating system for the intelligent car, for example, but to be the infrastructure that processes the information (at least for now). As Providence St. Joseph Health CEO Rod Hochman explained when announcing his choice to shift the data and applications of his fifty-one-hospital system to the Azure cloud, he chose Microsoft over Amazon, Apple, and Google because “[Microsoft isn’t] trying to be in the health-care business, but [is] trying to make it better.

Why would I fire you now? I just made a million-dollar investment in you. Now you have an obligation to make that investment pay off. Figure out and clearly document where you went wrong. Share what you have learned with other leaders throughout the company. Be sure you don’t make the same mistake again, and help others avoid making it the first time.

Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best.

The fact that we entered as total beginners and emerged as industry leaders is in no small part a result of our adherence to being Amazonian in our principles and our way of thinking, including thinking big, thinking long-term, being obsessed with customers, being willing to be misunderstood for long periods of time, and being frugal—principles that few companies are capable of maintaining in the face of quarterly reporting requirements and the daily gyrations of the stock market.

Asking “Why?” can work only where people feel free to speak their minds and the decision makers really listen. “Many employees who worked on the Fire Phone had serious doubts about it,” concluded the journalist and author Brad Stone, who has written definitive histories of Amazon, “but no one, it seemed, had been brave or clever enough to take a stand and win an argument with their obstinate leader.

A different business model was necessary if capitalist firms were to take full advantage of dwindling recording costs. This chapter argues that the new business model that eventually emerged is a powerful new type of firm: the platform.10 Often arising out of internal needs to handle data, platforms became an efficient way to monopolise, extract, analyse, and use the increasingly large amounts of data that were being recorded. Now this model has come to expand across the economy, as numerous companies incorporate platforms: powerful technology companies (Google, Facebook, and Amazon), dynamic start-ups (Uber, Airbnb), industrial leaders (GE, Siemens), and agricultural powerhouses (John Deere, Monsanto), to name just a few. What are platforms?11 At the most general level, platforms are digital infrastructures that enable two or more groups to interact.

True collaboration is only possible in an atmosphere of trust. And that atmosphere is always set by a leader who has earned his team members’ trust and who trusts them in return.

The fantastic one I would say is Amazon. The thing about Amazon - you always know where you are. You order something, you get a confirmation. So you always feel exactly... you know exactly where you are. You know exactly what's happening, when your thing's going to turn up - which anyone could do, but most people don't.

Providing endless options for everyone is neither possible nor the solution. Rather, the secret is to enable customers to choose what they want with smart digital customization. Look at how Uber, Salesforce, Tesla, Netflix, Amazon (especially Amazon Web Services), and others have seemingly overnight replaced business models or used digital to be efficient and effective and solve customer issues faster and better than traditional leaders. These brands are built around the philosophy of increasing customer success in a digital-first world.

If a platform achieves scale and becomes the de facto standard for its industry, the network effects of compatibility and standards (combined with the ability to rapidly iterate and optimize the platform) create a significant and lasting competitive advantage that can be nearly unassailable. This dominance lets the market leader “tax” all the participants who want to use the platform, much as levies were imposed in the bygone Republic of Venice. For example, the iTunes store takes a 30 percent share of the proceeds whenever a song, a movie, a book, or an app is sold on that platform. These platform revenues tend to have very high gross margins, which generate cash that can be plowed back into making the platform even better. Amazon’s merchant platform, Facebook’s social graph, and, of course, Apple’s iOS ecosystem are great examples of the power of platforms.

A common trait among excellent leaders like Apple’s Steve Jobs, Microsoft’s Bill Gates, Facebook’s Mark Zuckerberg, and Amazon’s Jeff Bezos is that they possessed a keen ability to “pitch” incredible questions.

By 2008, storm clouds were gathering over Microsoft. PC shipments, the financial lifeblood of Microsoft, had leveled off. Meanwhile sales of Apple and Google smartphones and tablets were on the rise, producing growing revenues from search and online advertising that Microsoft hadn’t matched. Meanwhile, Amazon had quietly launched Amazon Web Services (AWS), establishing itself for years to come as a leader in the lucrative, rapidly growing cloud services business. The logic behind the advent of the cloud was simple and compelling. The PC Revolution of the 1980s, led by Microsoft, Intel, Apple, and others, had made computing accessible to homes and offices around the world. The 1990s had ushered in the client/server era to meet the needs of millions of users who wanted to share data over networks rather than on floppy disks. But the cost of maintaining servers in an ever-growing sea of data—and the advent of businesses like Amazon, Office 365, Google, and Facebook—simply outpaced the ability for servers to keep up. The emergence of cloud services fundamentally shifted the economics of computing. It standardized and pooled computing resources and automated maintenance tasks once done manually. It allowed for elastic scaling up or down on a self-service, pay-as-you-go basis. Cloud providers invested in enormous data ​centers around the world and then rented them out at a lower cost per user. This was the Cloud Revolution. Amazon was one of the first to cash in with AWS. They figured out early on that the same cloud infrastructure they used to sell books, movies, and other retail items could be rented, like a time-share, to other businesses and startups at a much lower price than it would take for each company to build its own cloud. By June 2008, Amazon already had 180,000 developers building applications and services for their cloud platform. Microsoft did not yet have a commercially viable cloud platform. All of this spelled trouble for Microsoft. Even before the Great Recession of 2008, our stock had begun a downward slide. In a long-planned move, Bill Gates left the company that year to focus on the Bill & Melinda Gates Foundation. But others were leaving, too. Among them, Kevin Johnson, president of the Windows and online services business, announced he would leave to become CEO of Juniper Networks. In their letter to shareholders that year, Bill and Steve Ballmer noted that Ray Ozzie, creator of Lotus Notes, had been named the company’s new Chief Software Architect (Bill’s old title), reflecting the fact that a new generation of leaders was stepping up in areas like online advertising and search. There was no mention of the cloud in that year’s shareholder letter, but, to his credit, Steve had a game plan and a wider view of the playing field.

Presently, foundational resources essential to cutting-edge AI research and development like compute power, datasets, development frameworks and pre-trained models, remain overwhelmingly centralized under the control of Amazon, Microsoft, Google and several other giants who operate the dominant cloud computing platforms. Open source efforts cannot truly flourish or compete if trapped within the confines of the Big Tech clouds and proprietary ecosystems.

Research on launching new businesses and products shows that—at best—the so-called first-mover advantage is a dangerous half-truth. When markets are treacherous and uncertainty is high, first movers often flounder because consumers aren’t ready for their ideas or are put off by crummy early offerings. Companies that launch their products or services later end up as winners, in part, because they learn from the fatal missteps of eager early movers. Amazon was not the first online bookstore; the defunct Books.com and Interloc were among the earlier entrants. Netscape, the first commercially successful Web browser, was launched years before Google. Myspace was a successful social networking service before Facebook. Couchsurfing was founded before Airbnb. Being first is risky when smart fast followers can learn from your troubles and pass you