My Unfiltered Thoughts on Amazon’s Leadership Principles (Part One)

Why is Amazon so successful?

Many entrepreneurs gearing to launch their business might consider this question before their big break. Leadership qualities and a structured business model play a significant role in a company’s success. That’s where Amazon thrives while its competition falters. 

Jeff Bezos established a global e-commerce empire within a decade by promoting a customer-obsessed work culture. His employees are driven, ambitious, and high-performing individuals that go the extra mile for customers.

Amazon's leadership principles are the secret to its success. They assist the company in building an ethical, accountable, and customer-focused work culture. Quality, precision, and success follow automatically.

What can you learn from the Amazon leadership principles?

These corporate principles teach you the value of client interests and corporate ownership. You’re supposed to build trustworthy client relationships through care and consistency. Other things to consider are budget-friendly price plans, consistent performance, and delivering the best results.

Collectively, there are sixteen guiding principles. We discuss the eight rules and their viability for your organizational goals.

The Great Eight: What Are Amazon’s  Leadership Principles?

Every Amazon employee, from executive leaders to entry-level workers, follows sixteen leadership goals (according to its official website). These guiding principles unify the team, making client-centric decisions daily while taking ownership and responsibility for delivering the best results possible. One must be self-critical throughout the process to ensure they never miss the mark. 

It's essential to note that Jeff Bezos and his high-performing team aim for excellence regardless of the organizational phase. Great leaders do the same by training their workforces to follow this tried and tested formula.

We decode eight out of the sixteen Amazon leadership principles below. The main question addressed here is the best way to apply these rules. We also consider alternatives when these objectives fail.

1. Client-Focused: What Does It Mean to Prioritize Client Interest?

Client-focused leaders “work backwards” by placing consumer interests over other gains.

You can observe Amazon’s customer obsession with how it introduces on-demand services and products at the best prices. The company is determined to maintain client happiness through these personalized campaigns and services.

Is this rule feasible?

Forbes states that brands that excel in delivering memorable consumer experiences generate 5.7 x more revenue than rivals.

How Can You Become a Client-Centric Company?

Obsessing over clients requires leaders to think beyond product development. You need to consider whether your services add value to consumers’ lives. Client-employee interactions, online contact support, and brand image are part of the equation.

Without building seamless experiences, your clients can get lost in the shuffle.

You can stay consumer-focused by assessing the organizational process from the target audience’s perspective.

Ask yourself:

• Will the client like this product/service?

• Do they need this product/service?

• How do I share relevant information through marketing?

• What can I do to make product adoption simpler?

• Is there a way to follow up after clients leave the store?
  

The goal here’s to target critical touchpoints in a customer’s journey and ensure they receive a positive response from your end.

2. Stay Curious: How to Explore New Possibilities?

Great leaders don’t stop learning and are always eager to explore new avenues. They do this by identifying gaps and finding actionable ways to fill them. Extensive research and testing become necessary to make these innovative ideas successful.

Amazon started as an online bookstore. It became a worldwide ecommerce business for consumer products years later. Their success lies in their entrepreneurial curiosity.

They wouldn't be a multi-million dollar business if they didn’t expand the inventory from books to consumer goods.

That said, startups need resources and funds to explore innovative ideas. Without it, they might become bankrupt.

Hence, you should continually assess your finances before taking a risk.

How to Expand Business Opportunities?

When investing in new business opportunities, research and run test trials before producing anything in bulk. Also, go over our list of customer-centric leadership. Use the questions to cancel non-substantial ideas.

Here are some pointers that can help your business:

• Know your consumers and market. 

Do extensive research and assess whether your new idea meets public interests. Is there scope for it in the market? How much will you need to invest? These questions allow you to make an informed decision on your investment.

• Perform test trials.
  

Conduct surveys and preliminary tests of your new product/service. Evaluate consumer opinion to adapt your ideas into something that excites your client.

• Launch strategically.
  

Take things slowly by producing your first few batches in smaller quantities. Market them well and track consumer response. Invest and produce more if you are successful.

Lastly, remember that this leadership principle only works if you have relevant resources.

3. Simplified Inventions: How to Invent New Things? 

Great leaders listen attentively and don’t discourage out-of-the-box ideas. Instead, they search for ways to adopt unique ideas by simplifying eccentric concepts.

Kindle app and AWS are an extension of Amazon services. These crowd-pleasing products and services would not be here if company leaders did not take risks. They focus on client needs and then shape product strategy around them.

How to Keep Inventions Simpler?

Leaders from Amazon focus on simplifying the complex elements of its latest products and services. They brainstorm ideas to make new inventions less costly, more effective, and user-friendly.

The Kaizen approach works well for these leadership goals. It improves organizational cycles by reducing waste and non-essential activities—the focus shifts to collecting accurate data and using it to adjust systematic processes.

It would be best if teams aim to adapt “for the better” when making these decisions.  This principle feels like an extension of the previous rule about staying curious.

4. Leaders Are Mostly Right: How to Be a Good Leader?

“Leaders are right a lot,” thanks to their good judgment skills and instincts. Great leaders also break the status quo by championing diverse voices and views.

The principle places emphasis on the importance of strong leadership. We’re taught to listen to supervisors because they are “right a lot.” The authoritarian approach of this statement can harm the organization.

Leaders might consider it as the right to veto employee opinions. Repeated incidents can lower employee morale. Therefore, we are not big fans of this policy. The only way to counter this would be to focus on team effort over dictatorship.

How to Work As a Team?

Listen attentively before pitching your ideas. Always be open to suggestions and cultivate open dialogue. The strategy works well for creative teams where new ideas can breathe life into a project.

Here are some leadership dos and don’ts that can help you become a better leader:

• Avoid belittling and mocking employee opinions during brainstorming sessions.

• Lend a helping hand wherever possible.

• Be accountable for your shortcomings to show that leaders aren’t always right.

• Listen attentively and respond accordingly to ensure your employee knows they matter.

In short, build a corporate culture that supports constructive criticism, healthy competition, and creativity.

5. Bias for Action: What Does It Mean?

Amazon advises key audiences to take calculated risks. It's the need to choose action over inaction because actions are productive.

Leaders are trained to think on their feet and be resourceful. That’s why Amazon teaches people to take risks whenever they feel stuck.  It’s a counter-strategy to prevent leaders from halting progress because they can’t get past the evaluation phase.

Due to this, leaders act quickly when they experience challenges. It’s crucial to weigh the consequences of specific actions.

However, there’s a small catch. Chasing productivity and proactiveness can cause companies to crash and burn. It's especially true for executives that are not careful. In these cases, you may experience rejection and costly losses.

Once again, an Amazon leadership principle comes with terms and conditions.

When Should You Avoid Action Bias?

Decision Lab says that “action bias” should not become our “default response.” That’s because rushed decisions can result in unwanted consequences. Consider legal compliance, employee engagement levels, consumer interests, and ROIs before undertaking something risky.

We strongly advise you to stay put and evaluate your situation before taking a risk.  The best idea will be to evaluate your situation from every aspect. Think about the legal consequences of your decision and financial viability. Return-of-investments and consumer response are other factors that should influence your decision.

If things look promising, you may adopt Amazon’s leadership principle. Otherwise, it would help if you continue thinking things through until a better opportunity arises.

6. Set High Standards: What Qualifies as High Standards in Business?

Amazon leaders raise the bar to ensure defective products do not reach clients. They insist on delivering premium-grade products and excellent services through optimum processes.

Successful leaders set quality standards that they aim to attain. These supervisors ensure that everyone on the team understands the primary goals. Then take appropriate steps to achieve these objectives. Client satisfaction remains the top priority throughout the process.

However, employers are guilty of setting unrealistic expectations. They increase workload and pressurize employees to work on more projects under rigid deadlines. These things can affect a worker’s mental and physical health.

How to Set Realistic Expectations from Your Team?

Considerate leaders evaluate team performances individually and collectively before delegating tasks. Additionally, they use effective communication skills to build trust and provide relevant sources to make set tasks achievable. These steps improve team morale and increase delivery standards.

According to a Medium article on leadership goals, you should “analyze what your team is capable of and assign tasks accordingly.” It's an excellent way to produce high-standard results without exhausting your human resources.

We can break down this approach in the following way:

• Assess your team’s strengths and weaknesses.

• Discuss project objectives with your employees while listening to their concerns.

• Make an actionable plan that delegates tasks while overcoming drawbacks.

• Provide your team with training tools and resources that help your team meet project requirements.

• Evaluate the progress and adjust your goals accordingly.

In other words, flexibility remains a valuable leadership quality in this fast-paced world. It allows supervisors to consider the humane aspects of their processes and make adjustments as required.

7. Think Big: How to Look Beyond Limitations?

Amazon's leadership principles continuously inspire entrepreneurs and corporations to push the envelope. Thinking big requires executives to serve customers through alternative and innovative routes.

Business expansions do not happen if you are not ready for big changes. Resilience helps great leaders overcome obstacles that might arise during this phase. You need to visualize what growth looks like in a few weeks, months, and years. Then develop an actionable plan that allows you to cross those milestones.

The principle will be doable for companies with the resources to extend operations.

How to Grow Sustainably as a Business?

A SWOT (Strengths, Weaknesses, Opportunities, and Threat) analysis can help you think big with minimum setbacks. The SWOT analysis can help you develop a holistic plan supporting sustainable organizational growth.

What is a SWOT Analysis?

Investopedia describes it as a strategic plan or framework for companies to gain a competitive advantage over their rivals.

You break down SWOT by asking the following questions:

• What are your greatest strengths?

• What organizational areas require more attention?

• Are there any identifiable opportunities you can use to beat the competition? 

• Can you identify potential threats you may experience when you expand your business?

Your answers give you the right direction for sustainable and successful progress. Use this framework to increase self-awareness about your potential. Then develop realistic objectives according to strengths and opportunities.

8. Taking Ownership: Why Does It Matter?

Amazon leaders have no qualms about acting on behalf of their team and the entire company. They hold themselves accountable and ensure that corporate values are not sacrificed to achieve short-lived results. These individuals lead by example by teaching employees to become more accountable.

Authentic leadership and ownership nurture stronger employee-leader relationships. It can build more trust between team members. It’s because they see supervisors take responsibility for carrying the team forward.

It promotes honesty and truthfulness as more workers come forward when it comes to lending a hand and taking the initiative in completing projects.

How to Become More Accountable?

Authentic leadership and accountability go hand in hand. You need to take on more responsibilities during crunch time. Also, accept mistakes when things go wrong to embed transparency within the team.

Here’s what ownership means in corporate culture:

• Staying on top of deadlines and notifying managers when things are unattainable

• Taking over the responsibility to complete the task successfully

• Reviewing the process and adjusting details to improve workflow

• Ensuring products and services align with project goals

• Maintaining effective and clear workplace communication to minimize misinterpretations

Overall, accountability means taking the initiative to ensure nothing goes amiss.

Lead to Succeed

It doesn’t matter if you run an organization or work alone. Laying the foundation with value-adding principles can significantly impact your progress.

The Amazon leadership principles have become a cornerstone for advocating client-centricity, accountability, and risk-taking. While some of these rules are commendable, others don’t require equal attention.

Instead of becoming a cookie-cutter corporation, embrace originality. Seek inspiration from Amazon without copying everything. It would be advisable to draft a mindful manifesto that aligns with your unique values and goals.

You’ll implement these rules better when they come directly from you.

Ready to lead and succeed? Stay tuned for Part Two: My Unfiltered Thoughts on Amazon’s Leadership Principles.