Amazon’s Leadership Principles

Amazon has 16 Leadership Principles. You can review all 16 and their meaning on Amazon’s Website. To learn more about how they were developed, read chapter one of our book Working Backwards. Below, we will focus on what makes Amazon’s leadership principles different from nearly every other company, why they are such an effective management tool, and why they are a crucial contributor to Amazon’s phenomenal success. We will also give tips and techniques for developing your Leadership Principles and stress-testing the ones you already have.

Not Just Posters on a Wall

Amazon’s leadership principles differ from most companies’ principles or values because they are not just posters on a wall. Nearly every company has a set of principles or values on their website and the walls of the HQ building. These principles often have little effect on the company’s culture, decision-making, or management methods. Frequently, the principles are so generic and undefined that they are useless. “We believe in excellence” could apply to any company, anywhere. Most corporate principles do not impact how employees and managers work each day. 

Amazon’s Leadership Principles are not like this. They are woven into every aspect of how everyone at Amazon works, thinks, and acts every hour of every day. They are regularly referenced and quoted verbatim by employees at all levels; their intent is manifested in every workflow and core process, including:

The Invention Machine

In the early 2000s, Amazon was a fast-growing, global company that had begun diversifying into new products and services beyond e-commerce. The company had become significant and was only going to get bigger. Jeff Bezos realized that he had a problem. He could no longer be in every meeting, participate in hiring and evaluating every leader, or make every decision. He could only be in one place at a time. 

Anyone who knows Jeff knows he doesn’t shy away from hard or challenging problems. He often said that solving (the right) hard problems can unlock tremendous value. 

His solution to this problem was to find ways to scale his methods of thinking and management. For this to work, he needed to hardcode this into a set of scalable, repeatable processes that could endure for decades after him. Jeff often said, “…at Amazon, we are building an invention machine.”

THE AMAZON INVENTION MACHINE

The leadership principles bind the machine. The machine’s gears are designed to support and reinforce these principles through five scalable and repeatable processes: the Bar Raiser hiring process, the Single-Threaded organization structure, communicating and decision-making via narrative documents, new product innovation via the Working Backwards PR FAQ process, and Input Metrics as the drivers of the operating cadence.

Let’s look at an example of how this works. One of Amazon’s leadership principles is:

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.

As Amazon CEO Andy Jassy describes in this video, leaders at Amazon don’t simply come up with great strategies and leave the details to their team. They are expected to be great at both. A strategy is only effective when paired with operational details like customer needs, input metrics, planning, and the ability to execute a plan. Amazon’s metrics and communication processes reinforce the Dive Deep principle.

The Input Metrics method at Amazon requires intense attention to detail and staying on top of hundreds of metrics. Amazon’s communication, meetings, and decision-making use written narratives, not PowerPoint. You can only write an excellent narrative document with a detailed understanding of your business or operation. For the reader, narratives are a high-bandwidth data transfer to Amazon leaders. Given the relative information density of a Word document versus a PowerPoint, Amazon leaders are steeped in roughly 7x more detail and data than their peers at other companies.

Each of the five processes supports and reinforces one or more leadership Principles:

How to Develop Your Leadership Principles (LPs)

Now that you understand the value of Amazon’s LPs, you may ask yourself, “How can I apply these principles to my company?”

You can’t apply these exact principles because they are unique to Amazon. They won’t work at your company because each has a distinct culture and way of operating. Principles reinforce the most desirable aspects of your current culture. You can seek to have one or two principles that you aspire to, but the majority must be a favorable reflection of your current state. Here are some thoughts to guide you as you seek to develop the principles for your company.

Best Practices for Developing Effective LPs

  1. Identify the behaviors of role model leaders in your organization today. Interviews and surveys can uncover specific leadership skills from your best leaders. Seek to capture and distill these into principles. Usually, what makes a company successful is what it does differently. Try to figure out what those are during the exercise.
  2. Balance what your leaders do well and exhibit today vs what they need to do going forward. Strive to have your list of LPs reflect a balance between what you do well today and what you need to start doing well tomorrow. The right balance will inform what kinds of new leaders you need to hire and how to develop your leaders going forward. It is appropriate for some LPs to be aspirational, but you must be mindful of the change management process required to make them a reality.
  3. Your LPs must be a minimum set of characteristics that you will use to evaluate new and current leaders at your company. One of the most vital ways that Amazon’s principles are reinforced is that they are the criteria used to assess candidates in the Bar Raiser hiring process, plus performance management and leadership development.
  4. Necessary and Sufficient. A list that is necessary and sufficient is best. Don’t boil the ocean– you can always add more later. A shorter list that is carefully crafted and will endure for the next ten years is better than a long list where several fade from relevance. There is no right number. Start with between five and ten. You can always add more later.
  5. Put on Your Branding Hat. Make the name of each LP quirky or unique to your company to make it resonate. For example, if you have an LP about teamwork, don’t call it “Teamwork.” Instead, come up with a name or phrase that is catchy and reflects your culture, like “Be a Good Wingman,” “Got Your Back,” or “No ‘I’ in Team.”
  6. Carefully Crafted Descriptors. After each LP, write two or three sentences to describe the principle concisely. As you do this, picture a new leader entering your company and consider whether your description is specific enough to enable you to evaluate them based on their past work. Writing the descriptors is hard, and it will take many drafts. The CEO and their executive team must devote considerable time to this effort.  Jeff and the S-team worked on the first ten LPs for nearly a year before they were finalized. This edit and revision is time well spent and will show in the final product.
  7. Decision-making. They must be *The* lens through which leaders in your company think, make decisions, and act. When you (C-Level leaders) are not in the room, the team can fall back on the LPs to make decisions.
  8. Reinforce your LPs with processes. Good intentions don’t work; mechanisms and processes do. You must weave your LPs into every core operating process.
  9. Teaching and talking about your LPs is a continuous process. As Jeff once said, “…if you are tired of talking about the LPs, you aren’t doing it often enough.”
  10. Everyone is a leader. Effective LPs aren’t just for the C-Suite or managers; they apply to everyone in your organization in a salaried role.
  11. Hiring & Performance Management. Do your LPs capture the leadership qualities you want in a new hire? Are these the criteria you would rely on to coach and develop your team members? If other (non-technical or job-related) criteria are not captured in your list of LPs, you need to add them or remove them from the hiring process.
  12.  Healthy tension(s) are OK. For example, Dive Deep and Think Big have some natural tension, which is expected. Ensure you are prepared to explain how these tensions play out.

Already Have Your Leadership Principles? Give Them a Stress Test

If your organization has a set of codified Leadership Principles or Core Values, you can run them through a stress test by answering the following questions.

Hiring & Performance Management

Decision Making

Test Against Recent Successes and Failures

Is this LP Universally True?

Join the Waitlist for This Upcoming Course