14 Amazon Leadership Principles and Why They Matter
Amazon delivers the best customer service in the world. Everyone should benchmark themselves against Amazon if they want to become customer-centric. I would encourage you to read these 14 Amazon Leadership Principles and learn from the best.
Colin Baker from Leadership Staff expanded on the 14 principles. Last year Amazon had sales of $514 billion. A $44.2 billion increase in sales. Jeff Bezos mastered the Service Strategy. The problem is most firms in the world do NOT understand the power of the Service Strategy. I am not sure why more organizations do not seem to be interested in growing sales by $44.2 billion in just one year.
There are 3 Core Steps in Delivering a Service Culture.
- Strategy
- Leadership: Amazon is very effective and driving this philosophy with everyone in a leadership position, They have over 1,650,000 employees.
- Tools: You have to invest in building employees. You need to have the training materials that build people. The average salary at Amazon is $64,805. The starting wage is $19 an hour and includes healthcare and college tuition.
Take a look at my proven process for driving a service culture.
Amazon’s Leadership Principles
1. Have a Customer Obsession
Amazon’s 14 principles begin with having a customer obsession. The company pledges to put customers first at all times, earning their trust in the process. Their obsession with generating customer trust represents one of Amazon’s top core values that they try to demonstrate every day.
Key Takeaways
Customers and work go hand in hand because buyers are the lifeblood of any company. If a business doesn’t focus on them, they’re far more likely to flounder. Always put customers’ needs and expectations front and center, and hold yourself to the high standards that will make customers want to come back over and over. You can see this with Jeff Bezos’s marketing flywheel, dubbed the “virtuous cycle,” which emphasizes that customers need to have a great experience with the entire company. This leads to the company gaining traction, leading to more buyers and more satisfied customers.
2. Take Ownership
Amazon leaders have a bias for action when it comes to taking ownership of what they and their team do. Beyond that, they also feel a broad responsibility for the business, making them consider what’s best for the company at all times. They don’t take shortcuts and instead emphasize the long-term values of their actions.
Key Takeaways
Leaders need to think of themselves as owners of what they do. Every action they take, both big and small, reflects on the company in some way. Act as a representative and avoid taking the easy road. If you think of yourself as a key part of the company, you’ll always give it your best shot and accept the consequences. Part of being an owner includes serving others. The servant leadership style places others’ needs above your own, bypassing your self-interest for the good of others. By doing so, you help everyone achieve the most they can, which benefits them, you, and the company as a whole.
3. Invent and Simplify
Amazon prides itself on innovation, so the company expects its leaders to get creative when finding solutions. Leaders should think up new ideas and try new methods to see what gets high-quality results. By doing things differently, Amazon’s leadership tries to forge a new path that flies in the face of conventionality.
Key Takeaways
It’s easy to get stuck in the same patterns and methods that have proven effective in the past. Leaders should use an innovative approach to find better techniques and strategies. This requires experimentation and an acceptance that sometimes it won’t work out the way you want. Don’t fear going in a bold direction as the new way of thinking could become the new normal.
4. Have Good Judgment
Amazon expects its leaders to have good instincts. The company places significant trust in its leadership, which means they should show good judgment when making decisions. They also want their leaders to come from diverse backgrounds and bring new points of view to the table.
Key Takeaways
Leaders need to practice effective decision-making for their teams. That takes a complete knowledge of their industry and familiarity with the people on their teams. They should also show confidence in what they do and be welcoming of new ideas from team members.
5. Learn and Be Curious
Amazon wants leaders who show curiosity and a desire for self-improvement. They don’t settle for current strategies and have the urge to learn as much as they can. They love new ideas and get excited at the prospect of exploring new topics.
Key Takeaways
Leaders must have an inquisitive mind to stay on top of a rapidly changing business world. Their curiosity should drive them to become better and more informed. People who don’t seek to learn will quickly find themselves falling behind. Make time during the day to learn something new by reading news articles or listening to podcasts.
6. Hire and Develop the Best
Amazon also stresses the need to create teams filled with high performers who rise to the occasion. The company believes that leaders should work to develop new leaders at all levels of the organization. Leaders must hire only the most talented people who can help the company reach new heights.
Key Takeaways
Through interview questions and the entire hiring process, look for individuals who bring significant value to your organization. Once they’re on board, help them develop their talents and leadership qualities. Development should be an ongoing process to help people reach their full potential. An organization consisting of leaders and high performers will become highly successful.
7. Insist on the Highest Standards
According to Amazon’s 14 principles, the company expects its leaders to establish a high standard of conduct and performance. They want leaders to be the driving factor in getting the best out of their teams. That means having standards that might even be seen as too high. That high bar is what teams should meet and surpass.
Key Takeaways
Expectations matter in business. A leader who expects little of their team members will get little in return. Set a high standard that will force people to stretch. Get people out of their comfort zone to develop quality products. It’s just as important to hold yourself to that same standard so you set the example for others. If you only want the best from your team, you’ll need to set a new bar they’ll need to work at to reach.
8. Think Big
Amazon expects leadership to motivate their teams by setting an inspiring vision for them. A leader who only thinks about short-term goals will hold their team back. Instead, Amazon seeks to “invent and simplify leaders” who think of the big picture, problem-solve, and go in a bold, new direction.
Key Takeaways
Along with setting expectations, set goals and objectives that inspire people to work harder. Get creative in showing people the way to go and communicate it clearly. Team members should feel excited when thinking about the future and may even create goals for themselves. If you’re not thinking big, you’re not providing direction to your team.
9. Act Rapidly
Executives and managers at Amazon have a bias for action, meaning they prefer speed and action over deliberation and inaction. That doesn’t only apply to delivering packages. Amazon wants leaders who feel a sense of broad responsibility to make decisions quickly when appropriate. They don’t believe there’s anything wrong with taking a calculated risk. A delay in their line of work may even end up causing more damage in the long run.
Key Takeaways
Many companies tend to avoid making quick decisions or acting on behalf of senior leaders. Instead, they choose to study the issue extensively first. While that’s a wise approach in some circumstances, leaders should have the confidence to be decisive and take quick action. Don’t be afraid to make a mistake here and there as long as you own up to it.
10. Use Your Resources Wisely
Amazon wants its teams to be self-sufficient. Their leaders should achieve their goals with innovation and resourcefulness and not just ask for more money and personnel. A team that performs well with what they already have will feel a sense of accomplishment and satisfaction with how they did.
Key Takeaways
Leaders should figure out how to meet their objectives with what they have on hand. It’s easy to ask management for more time, money, or resources, but sometimes those items aren’t available. Learn how to be resourceful and creative. Stay within the budget set for you. Keep your teams to a manageable size. You’ll grow as a professional as you learn to perform within the constraints and limits set by outside factors.
11. Earn Trust
An important Amazon LP is earning the trust of others. Leaders should make efforts to listen to their coworkers and always show respect for diverse perspectives. They need to admit their mistakes, showing humility in the process. Executives, directors, and managers must also understand that earning trust takes work, but once done, it creates unity among people working toward a common goal.
Key Takeaways
Leaders should always be transparent with those around them. They don’t talk down to their employees or treat them like children. This honest approach leads to gaining people’s trust. Be direct in your conversations, but do it respectfully. Have an open communication policy that allows people to voice their opinions without fear of recrimination. Through this strategy, you’ll build strong relationships and be able to give and receive honest feedback. As you practice servant leadership in this manner, foster an environment full of support and encouragement so people feel comfortable and safe communicating their thoughts, feelings, beliefs, and ideas.
12. Dive Deep
While Amazon expects employees to see the big picture, they also want “dive-deep leaders” who pay attention to minor details. To do this, leaders should connect themselves to all levels of the organization. Additionally, this might look like conducting deeper investigations when things look like they don’t add up.
Key Takeaways
Don’t stray too far from the details. Having a lofty goal can be helpful, but if you lose track of the little things, those goals become much more difficult to reach. If you notice discrepancies, take the time to figure out where the issues originate. The best leaders don’t ever feel like they’re above everyone or too important to handle smaller tasks.
13. Have a Backbone; Disagree and Commit
Jeff Bezos expects leaders to challenge decisions as long as they do so respectfully and with cause. Leaders should commit wholly to their convictions when challenges arise. However, once they agree to a decision, they’re supposed to give everything they have to it.
Key Takeaways
Far too many organizations are filled with people who go along with whatever upper management decides, even if they have doubts. Don’t be a leader who “goes with the flow.” Feel free to challenge the status quo, but do it in a non-confrontational manner. When you show respect, people will be more willing to listen to your concerns.
14. Deliver Results
At Amazon, they expect leaders to show positive results on whatever project they work on. Leaders must look at key inputs and deliver them on time. Amazon’s core values make timely delivery a necessity since it’s something management and customers expect.
Key Takeaways
At the end of the day, it’s all about the results. As always, you’ll encounter numerous challenges and obstacles along the way, but with the right preparation and a good team, you can overcome them. Always meet your deadlines and ensure you deliver a product you can be proud of.
Here is another link where you can spend even more time learning about the 14 Leadership Principles. Watch some of the interviews with Jeff Bezos.