Working Backwards: Insights, Stories, and Secrets from Inside Amazon

Edward Tufte sums up the benefits of narratives over PP with his own blunt clarity: “PowerPoint becomes ugly and inaccurate because our thoughts are foolish, but the slovenliness of PowerPoint makes it easier for us to have foolish thoughts.”

When the retail, operations, and finance teams began to construct the initial Amazon WBR, they turned to a well-known Six Sigma process improvement method called DMAIC, an acronym for Define-Measure-Analyze-Improve-Control.1 Should you decide to implement a Weekly Business Review for your business, we recommend following the DMAIC steps as well. Th

One often-overlooked piece of the puzzle is determining how to audit metrics. Unless you have a regular process to independently validate the metric, assume that over time something will cause it to drift and skew the numbers. If the metric is important, find out a way to do a separate measurement or gather customer anecdotes and see if the informa

In a talk at the 2018 Air, Space and Cyber Conference, Jeff described Amazon this way: “Our culture is four things: customer obsession instead of competitor obsession; willingness to think long term, with a longer investment horizon than most of our peers; eagerness to invent, which of course goes hand in hand with failure; and then, finally, takin

Jeff often used an analogy in those days when describing our efforts to innovate and build new businesses. “We need to plant many seeds,” he would say, “because we don’t know which one of those seeds will grow into a mighty oak.”

Over time, we refined and normalized the specifications for the PR/FAQ. The press release (PR) portion is a few paragraphs, always less than one page. The frequently asked questions (FAQ) should be five pages or less. There are no awards for extra pages or more words. The goal isn’t to explain all the excellent work you have done but rather to shar

separable, single-threaded team being run by a single-threaded leader like Tom. As Jeff Wilke explains, “Separable means almost as separable organizationally as APIs are for software. Single-threaded means they don’t work on anything else.”8 Such teams have clear, unambiguous ownership of specific features or functionality and can drive innovations

Speed, or more accurately velocity, which measures both speed and direction, matters in business. With all other things being equal, the organization that moves faster will innovate more, simply because it will be able to conduct a higher number of experiments per unit of time.

When Amazon teams come across a surprise or a perplexing problem with the data, they are relentless until they discover the root cause. Perhaps the most widely used technique at Amazon for these situations is the Correction of Errors (COE) process, based upon the “Five Whys” method developed at Toyota and used by many companies worldwide.

Properly evaluating your business and striving to improve each week requires a willingness to openly discuss failures, learn from them, and always look for inventions that will delight customers even more.