After three years at Amazon, last week I started my new job @LambdaSchool where I’m helping build our building our network of hiring partners.
As a part of this transition, I’ve been thinking a lot about what I learned at Amazon. Here are some lessons and observations:
As a part of this transition, I’ve been thinking a lot about what I learned at Amazon. Here are some lessons and observations:
Context: I joined Amazon as an MBA hire in their Retail Leadership Development Program. I held two roles, Sr. Marketing Mgr and Sr. Product Manager, on two teams during my three years with the company.
Disclaimer: Every Bezos quote I mention here is either from an annual letter or something he said publicly. (I never met him or sat in a meeting w/him.)
1/ Amazon fulfillment centers (FCs) are a modern wonder of the world. I didn’t really understand the concept of a business moat until I toured an FC. Earlier this year, Buffett called Amazon a miracle. Go to an FC, and you will see why.
2/ Bezos has said that his job is to remove himself from the present, live in the future and think two to three years out. This flexibility to have a long-term orientation is a huge advantage for big companies that’s overlooked. Most startups can't afford to think beyond 1year.
3/ Amazon’s leadership principles (LPs) are its most effective mgmt tool. They are embraced by employees at all levels of the co. LPs are effective because they help you know how act and simplify decision making. It gives a decision making framework to every employee.
4/ People mention LPs every day in meetings and casual conversations. They are used to rate employees, and feedback is framed against them. In other organizations, i felt corny using LP speak, but not at Amazon. I used LPs to make choices every day.
5/ There’s natural tension in the LPs (e.g., bias for action vs. insist on the highest standards), but thinking through that tension helps employees be intentional about the trade offs they make.
6/ Amazon Go is my favorite example of Theil’s 10x rule (your new product needs to be 10x better to win). My Last trip to Go took me 30 seconds to walk in, find my candy, and checkout, and I spent 80% of that time deciding which candy bar to pick.
7/ The power of anecdote. It’s awesome that at one of the most data driven companies in the world a single customer complaint can commandeer entire teams and can carry as much weight as pages of metric decks.
8/ Amazon is a meritocracy. After customer obsession, I think deliver results is the most valued LP. This focus on results contributes to Amazon’s intense culture but is critical to its success. Results trump pedigree and stem politics at Amazon.
9/ Promotions are very hard to get, but there are lots of benefits to that approach. Bec so hard to come by, promotions instill respect in colleagues bec you know you know he/she has delivered results consistently at a high level.
10/ Best businesses are built on enduring truths. Find things that will always be true and build there. Bezos quote: It's impossible to imagine a future 10 years from now where a customer comes up and says, 'Jeff I love Amazon; I just wish the prices were a little higher'
11/ Surprised how often Bezos repeats the same points when speaking publicly. Very much like listening to Buffett/Munger. Kind of reminds me of church tbh. He’s emphasizing the same enduring businesses truths over and over.
12/ Docs (narratives) create leverage. Most important section of doc are tenets, which lay out guiding principles. Good tenets help you make hard decisions. I find myself looking for tenets for all aspects of my life to simplify decision making.
13/ Here’s a great example of a tenet from ‘97 letter: ‘When forced to choose between optimizing the appearance of our GAAP accounting and maximizing the present value of future cash flows, we’ll take the cash flows.’
14/ A couple of years ago Bezos warned of managing to proxies. I think docs can become a proxy people manage to at Amazon. i fell into that problem a time or two where I focused on producing a good doc as the end in itself, but it’s just a tool to get there.
15/ My favorite Bezos quote: Be stubborn on vision but flexible on details.
16/ Favorite Amazon-isms:
-look around corners
-in the fulness of time
-look around corners
-in the fulness of time
17/ Amazon is an amazing place. I loved my time there. I will miss it and everyone I worked with and learned from.
Now on to @LambdaSchool - couldn't be more excited about this company, team, and opportunity!
Now on to @LambdaSchool - couldn't be more excited about this company, team, and opportunity!
