One of the most valuable firms in the world by that criterion is Amazon, which has a market cap of about $1 trillion (let that sink in for a minute!). The Amazon Leadership Principles, which have become an integral part of the business culture, are at least in part responsible for Amazon’s spectacular development. Amazon, predicted to be a dot-com bust in 2000, has overcome and prevailed in two market crashes. Jeff Bezos, the company’s eccentric and well-known founder, feels that business success depends on having a solid core company culture. Bezos and an early leadership group thus developed 16 principles of Amazon with examples.
What are the principles of Amazon?
Amazon says that its leadership principles are “an integral part of the fabric of Amazon’s culture.” As the graphic below shows, the principles are indeed ingrained in the very core of the business. As the company expands, it says that Amazon’s 16 leadership principles are good tools for encouraging independent decision-making and supporting executives in leading beyond their specialized duties.
1. Customer obsession
Leaders put the needs and preferences of their followers first, to the point where they become fixated on them. This means that while deciding how to use a product or service, they constantly try to work backward from what the user would think or want.
2. Ownership
Ownership is a concept that leaders acquire. Instead of just being workers, they see themselves as owners. This prompts children to consider the long term, considering how each activity will affect outcomes now, tomorrow, and for a very long time. They act in the company’s best interests, considering value generation for consumers, shareholders, employees, and other stakeholders.
3. Invent and simplify
Amazon is one of the most successful businesses in history, and it is genuinely amazing how innovative it can be despite its size. Amazon encourages innovation by allowing its staff to develop and refine solutions quickly.
4. Are you right
Leaders should be unbiased and grounded in reality. When making decisions, they should enlist the advice of others and take into account various viewpoints.
5. Learn and be curious
Leaders are perpetual students. They actively seek feedback to help them improve themselves because they are curious and driven to do so. They have a natural curiosity to investigate various viewpoints and approaches.
6. Hire and develop the best
Leaders make excellent hires and relish serving as mentors. They have no problem advancing extremely brilliant subordinates through the organization and giving them credit. Leaders take their time mentoring others seriously. They actively look for chances to offer and accept criticism. A huge firm will ultimately only be successful if it can attract excellent employees, particularly as the business grows.
7. Insist on the highest standard
Great leaders are known for having high standards. The team at Amazon is expected to do their best (A+) work. Amazon seeks the highest performance from every level of the organization by injecting high standards into the organization’s principles.
8. Think big
Leaders believe you are right, regardless of whether you think you can or cannot. As a result, they frequently pursue audacious goals and give their teams audacious instructions. They don’t hesitate to pursue goals that some inside and outside the organization might think impossible.
9. Bias for action
According to studies, profitable businesses don’t always make wiser selections. However, they do make more choices. Leaders are aware that even when things don’t turn out as planned, making more decisions and having some of them be incorrect allows for the opportunity to grow, change, and advance. As a result, leaders are more likely to be action-oriented and comfortable taking calculated risks.
10. Frugality
Though they endeavor to avoid being “penny wise and pound foolish,” leaders also value resourcefulness and work to maximize existing resources. They try to prevent overspending and paying too much for inputs. It’s fair to say that many leaders are thrifty. They will always look for ways to get more done with less. The urge towards thriftiness and Amazon’s initiative to move quickly are complementary. Innovating, testing, and learning new things is significantly simpler when you can create numerous minimum-viable product test cases.
11. Earn trust
Leaders don’t expect respect from their peers and followers or loyalty. They understand and anticipate that they must first earn it. They ask for open input, communicate honestly, and pay attention to their teams. Furthermore, all new employees at Amazon (at any level) should be expected to put in much effort and establish a solid work history. They shouldn’t enter the situation with a big ego; rather, it will grow as they produce quality work and demonstrate their worth.
12. Dive deep
High-level strategy development, significant operational problems, and the specifics of day-to-day operations are all seen as falling under the jurisdiction of leaders. They want to avoid micromanaging while appreciating having complete knowledge of a company. They recognize that to delegate and outsource a task successfully, it is crucial first to have a thorough understanding of the task or activity.
13. Have a backbone
Even when it’s uncomfortable, leaders are willing to dispute decisions respectfully. Even while they try to avoid “dying on their sword” over insignificant disagreements, if they genuinely believe that one course of action is correct, they won’t back down only to move on or placate someone.
14. Deliver results
Leaders understand that making an effort and constantly doing things right will produce favorable results. However, they also guarantee results, adhere to a budget, and accomplish goals. When difficulties arise, they frequently accept the challenge and find a way to move forward.
15. Strive to be Earth’s best employee
Leaders strive to foster an environment at work where coworkers can prosper. “What can I do to help others grow, have fun, and feel empowered at work?” they ask. And look beyond themselves. Leaders take their team members’ success personally and seriously while working with Amazon and should they decide to leave.
16. Scale and success
Humility and understanding how their actions influence others and the wider world are traits of leaders. They understand that they must improve the world and leave it in a better state than when they found it for future generations. They don’t take success lightly but view it as the doorway to bigger responsibility.
How are leadership principles used at Amazon?
They serve as the foundation of Amazon’s culture; they establish expectations for how our team members should interact with one another, and they uphold consistency and standards across all of our many functions and geographical locations. We can communicate with one another or approach issues with the same expectations by using leadership principles. They have been essential to successfully scaling growth.
May the Amazon leadership principles be learned and developed, or are they only personality traits?
Some of Amazon’s new leadership principles may be inherent to some extent. ‘Earns Trust’ calls on effective relationship development and soft skills, which can be challenging to impart. However, everything can be learned, especially with the appropriate mentor. Most things can be learned. ‘Dive Deep’ is a good illustration. People can learn analytical skills, and there are problem-solving techniques that can aid in their development. Since working for Amazon, I’ve developed my “Dive Deep” and “Customer Obsession” talents.
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Frequently Asked Questions on amazon leadership principles
Q. Are there any Amazon com leadership principles that are more crucial than others?
Ans:- Every leadership tenet is viewed equally. However, a candidate may be questioned about several guidelines unique to that position, depending on the function. Generally speaking, the job description will tell you.
In actual interviews, interviewers anticipate hearing examples from candidates’ experiences; these examples should illustrate various Leadership Principles. A candidate must provide their best evidence to be successful because the interview process is a “Dive Deep” exercise for the panel.
Q. Do all positions at Amazon have to adhere to the Leadership Principles?
Ans:- Any job you have at Amazon will apply to all of the Leadership Principles. They are written to apply to our entire society. For instance, every role and task at Amazon begins with “Customer Obsession.” We always work backward from the customer and start with them.
