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High-quality, high-velocity decision-making
Bezos offers a set of guidelines for how to make decisions at high-velocity:
- Understand that decisions can be reversed:
- Bias towards action: Most decisions should be made with close to 70% of the information needed. Waiting for 90%+ information will slow you down.
- “Disagree and commit”: When consensus is not possible but you have conviction in a particular direction, “disagree and commit”.
- Recognize when an agreement isn’t achievable: Sometimes different teams have different objectives and see the world differently. No discussion will change these views.
110
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Raise the bar on hiring… again and again
Setting the bar high on hiring has been the single most important element of Amazon’s success. During the interview process, Amazon asks each interviewer to consider three questions before making a hiring decision:
- Will you admire this person?
- Will this person raise the average...
101
827 reads
Customer centricity as a north star
From the outset, Amazon’s goal was to build the world’s most customer-centric company. Bezos would constantly remind employees to wake up every morning terrified… not of the competition, but of Amazon’s own customers.
Customers are fickle; they are loyal to a company until...
95
904 reads
It’s all about the long-term…
In his 1997 shareholder letter, Jeff Bezos issued a manifesto “It’s all about the long-term” where he laid out his approach to business and to running Amazon. He pledged that decisions would be made with a long-term lens and with a focus on market leadership.
This manifest...
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1.28K reads
Why long-term matters
- A focus on the long-term is important for several reasons. First, for a company that drives growth through innovation, a long-term approach allows for experimentation and an acceptance of short-term failures.
- Second, having a long-term orientation reduces the impact of stock price fl...
89
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Put effort into inputs, not financial outputs
While Amazon takes financial outputs seriously, 100% of the company’s time is focused on inputs. This is because these inputs are controllable and are the most effective way to maximize financial outputs.
90
933 reads
Build a disciplined, patient, and nurturing culture
Many large companies fail to launch new businesses from scratch because of the patience and nurturing required. One of Amazon’s competitive advantages is its culture which is supportive of small businesses with large potential.
While Amazon’s culture demands that these businesses be high po...
79
857 reads
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