Empowering teams with the Andon Cord for customer quality
At Amazon, we implemented an “Andon Cord” system that allows any customer support member to disable the buy button on an item that results in a poor customer experience. This was inspired by Toyota’s Quality Management practices. It worked like this: Toyota has a physical cord on the production line that any worker could pull […]
by Bill Carr
Using the Amazon PR FAQ process to maximize B2B value
B2B companies create value by building products and services that either reduce costs or grow the revenue of the businesses that are their customers. Here is how B2B companies can use the Amazon PR/FAQ process to do this: When writing a PR FAQ, start with customer needs and work backward from there. The objective is […]
by Bill Carr
How to write a successful problem paragraph in PR FAQ
At Amazon, we would often spend months working on a single paragraph of the PR/FAQ for a new product idea. This was the “problem paragraph”. Done well, it could lead to a successful product. Done wrong, it will lead to failure. Here is how to write a successful problem paragraph: The “problem paragraph” defines the […]
by Bill Carr
How Amazon’s debrief process ensures hiring the best
One of the most important parts of Amazon’s hiring process happens after the interviews are over. It is called the debrief, but it isn’t just a recap of “How it went.” It’s a data synthesis meeting that determines if the candidate raises the bar. Debriefs are ideally scheduled for the same day or the day […]
by Bill Carr
Why effectiveness matters more than volume in knowledge work
“The knowledge worker does not produce something that is effective by itself. He does not produce a physical product–a ditch, a pair of shoes, a machine part. He produces knowledge, ideas, information. By themselves these “products” are useless. Somebody else, another man of knowledge, has to take them as his input and convert them into […]
by Bill Carr
How Amazon s-team goals drive organizational clarity
Each year, the Amazon S-team (Amazon’s senior leadership group) establishes a list of hundreds of S-team goals. Hundreds! In 2010, there were 452 S-team goals. I wouldn’t be surprised if there are now thousands. These goals were derived from metrics and initiatives proposed by each team during the annual operating plan (OP1) cycle. These were […]
by Bill Carr
Common pitfalls in annual planning and how to avoid them
When I joined Amazon in 1999, it was a high-growth startup with little structure. In particular, our early attempts at annual planning were clumsy. Here are the top 8 pitfalls we have observed along the way: 1) Setting goals but not tracking them Setting goals is easy, but tracking progress with real data requires diligence. […]
by Bill Carr
Key components of a world-class operating plan
When I joined Amazon in 1999, we did not build good operating plans. By the time I left in 2015, our plans were world-class. Here are the components of a great plan so you can skip the 15 years of work that it took us to figure it out: 1) Introduction The Introduction is very […]
by Bill Carr
Understanding the investment envelope in annual planning
At Amazon, one of the most important and misunderstood parts of the Annual Operating Plan is the Investment Envelope. When done right, it aligns executive priorities with the plans of each business unit. When skipped or rushed, it leaves teams planning in a vacuum. The Investment Envelope is the first major step in the OP1 […]
by Bill Carr
Dos and don’ts of creating a strong annual operating plan
At Amazon, the Annual Operating Plan was a mechanism to align on initiatives, allocate resources, and assign ownership. The best plans followed a few essential practices and avoided several common pitfalls. Here are the most important Dos and Don’ts. 1) Do: Lead with Metrics The best plans start with controllable input metrics. Begin by clarifying […]
by Bill Carr