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Working Backwards: Insights, Stories, and Secrets from Inside Amazon
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Colin Bryar7,297 ratings, 4.20 average rating, 659 reviews
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Working Backwards Quotes
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“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.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Until that June day in 2004, PowerPoint had been the default tool for communication of ideas in many meetings at Amazon, just as it was and still is at many companies. Everybody knew its delights and perils. What could be more exhilarating than listening to a charismatic executive deliver a rousing presentation backed up by snappy phrases, dancing clip art, and cool slide transitions? So what if you couldn’t remember the details a few days later? And what could be worse than suffering through a badly organized presentation using a drab template and tons of text in a font too small to read? Or, worse still, squirming as a nervous presenter stumbled and faltered through slide after slide? The real risk with using PowerPoint in the manner we did, however, was the effect it could have on decision-making. A dynamic presenter could lead a group to approve a dismal idea. A poorly organized presentation could confuse people, produce discussion that was rambling and unfocused, and rob good ideas of the serious consideration they deserved. A boring presentation could numb the brain so completely that people tuned out or started checking their email, thereby missing the good idea lurking beneath the droning voice and uninspiring visuals”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Jeff and I often discussed ways to improve the S-Team meetings. Shortly after a particularly difficult presentation in early 2004, we had some downtime on a business flight (no Wi-Fi yet on planes), so we read and discussed an essay called “The Cognitive Style of PowerPoint: Pitching Out Corrupts Within,” by Edward Tufte, a Yale professor who is an authority on the visualization of information.1 Tufte identified in one sentence the problem we’d been experiencing: “As analysis becomes more causal, multivariate, comparative, evidence based, and resolution-intense,” he writes, “the more damaging the bullet list becomes.” That description fit our discussions at the S-Team meetings: complex, interconnected, requiring plenty of information to explore, with greater and greater consequences connected to decisions. Such analysis is not well served by a linear progression of slides that makes it difficult to refer one idea to another, sparsely worded bits of text that don’t fully express an idea, and visual effects that are more distracting than enlightening. Rather than making things clear and simple, PowerPoint can strip the discussion of important nuance. In our meetings, even when a presenter included supporting information in the notes or accompanying audio, the PowerPoint presentation was never enough. Besides, the Amazon audience of tightly scheduled, experienced executives was eager to get to the heart of the matter as quickly as possible. They would pepper the presenter with questions and push to get to the punch line, regardless of the flow of slides. Sometimes the questions did not serve to clarify a point or move the presentation along but would instead lead the entire group away from the main argument. Or some questions might be premature and would be answered in a later slide, thus forcing the presenter to go over the same ground twice.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“If you were to ask recently hired Amazon employees about what has surprised them most in their time at the company so far, one response would certainly top the list: “The eerie silence in the first 20 minutes of many meetings.” At Amazon, after a brief exchange of greetings and chitchat, everyone sits at the table, and the room goes completely silent. Silent, as in not a word. The reason for the silence? A six-page document that everyone must read before discussion begins. Amazon relies far more on the written word to develop and communicate ideas than most companies, and this difference makes for a huge competitive advantage. In this chapter we’ll talk about how and why Amazon made the transition from the use of PowerPoint (or any other presentation software) to written narratives, and how it has benefited the company—and can benefit yours too. Amazon uses two main forms of narrative. The first is known as the “six-pager.” It is used to describe, review, or propose just about any type of idea, process, or business. The second narrative form is the PR/FAQ. This one is specifically linked to the Working Backwards process for new product development. In this chapter, we’ll focus on the six-pager and in the following chapter we’ll look at the PR/FAQ.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“We started with a small number of two-pizza teams so that we could learn what worked and refine the model before widespread adoption. One significant lesson became clear fairly early: each team started out with its own share of dependencies that would hold them back until eliminated, and eliminating the dependencies was hard work with little to no immediate payback. The most successful teams invested much of their early time in removing dependencies and building “instrumentation”—our term for infrastructure used to measure every important action—before they began to innovate, meaning, add new features. For example, the Picking team owned software that directed workers in the fulfillment centers where to find items on the shelves. They spent much of their first nine months systematically identifying and removing dependencies from upstream areas, like receiving inventory from vendors, and downstream areas, like packing and shipping. They also built systems to track every important event that happened in their area at a detailed, real-time level. Their business results didn’t improve much while they did so, but once they had removed dependencies, built their fitness function, and instrumented their systems, they became a strong example of how fast a two-pizza team could innovate and deliver results. They became advocates of this new way of working. Other teams, however, put off doing the unglamorous work of removing their dependencies and instrumenting their systems. Instead, they focused too soon on the flashier work of developing new features, which enabled them to make some satisfying early progress. Their dependencies remained, however, and the continuing drag soon became apparent as the teams lost momentum.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“The First Autonomous Teams Autonomous teams are built for speed. When they are aligned toward a common destination, they can go a long way in a short time. But when they are poorly aligned, the team can veer far off course just as quickly. So they need to be pointed in the right direction and have the tools to quickly course-correct when warranted. That’s why, before any proposed two-pizza team was approved, they had to meet with Jeff and their S-Team manager—often more than once—to discuss the team’s composition, charter, and fitness function. For instance, the Inventory Planning team would convene with Jeff, Jeff Wilke, and me to ensure that they were meeting the following criteria: The team had a well-defined purpose. For example, the team intends to answer the question, “How much inventory should Amazon buy of a given product and when should we buy it?” The boundaries of ownership were well understood. For example, the team asks the Forecasting team what the demand will be for a particular product at a given time, and then uses their answer as an input to make a buying decision. The metrics used to measure progress were agreed upon. For example, In-stock Product Pages Displayed divided by Total Product Pages Displayed, weighted at 60 percent; and Inventory Holding Cost, weighted at 40 percent.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“In a 2006 interview by Jim Gray, Amazon CTO Werner Vogels recalled another watershed moment: We went through a period of serious introspection and concluded that a service-oriented architecture would give us the level of isolation that would allow us to build many software components rapidly and independently. By the way, this was way before service-oriented was a buzzword. For us service orientation means encapsulating the data with the business logic that operates on the data, with the only access through a published service interface. No direct database access is allowed from outside the service, and there’s no data sharing among the services.3 That’s a lot to unpack for non–software engineers, but the basic idea is this: If multiple teams have direct access to a shared block of software code or some part of a database, they slow each other down. Whether they’re allowed to change the way the code works, change how the data are organized, or merely build something that uses the shared code or data, everybody is at risk if anybody makes a change. Managing that risk requires a lot of time spent in coordination. The solution is to encapsulate, that is, assign ownership of a given block of code or part of a database to one team. Anyone else who wants something from that walled-off area must make a well-documented service request via an API.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“He laid out the defining characteristics, workflow, and management as follows. A two-pizza team will: Be small. No more than ten people. Be autonomous. They should have no need to coordinate with other teams to get their work done. With the new service-based software architecture in place, any team could simply refer to the published application programming interfaces (APIs) for other teams. (More on this new software architecture to follow.) Be evaluated by a well-defined “fitness function.” This is the sum of a weighted series of metrics. Example: a team that is in charge of adding selection in a product category might be evaluated on: a) how many new distinct items were added for the period (50 percent weighting) b) how many units of those new distinct items were sold (30 percent weighting) c) how many page views those distinct items received (20 percent weighting) Be monitored in real time. A team’s real-time score on its fitness function would be displayed on a dashboard next to all the other two-pizza teams’ scores. Be the business owner. The team will own and be responsible for all aspects of its area of focus, including design, technology, and business results. This paradigm shift eliminates the all-too-often heard excuses such as, “We built what the business folks asked us to, they just asked for the wrong product,” or “If the tech team had actually delivered what we asked for and did it on time, we would have hit our numbers.” Be led by a multidisciplined top-flight leader. The leader must have deep technical expertise, know how to hire world-class software engineers and product managers, and possess excellent business judgment. Be self-funding. The team’s work will pay for itself. Be approved in advance by the S-Team. The S-Team must approve the formation of every two-pizza team.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“First Proposed Solution: Two-Pizza Team Seeing that our best short-term solutions would not be enough, Jeff proposed that instead of finding new and better ways to manage our dependencies, we figure out how to remove them. We could do this, he said, by reorganizing software engineers into smaller teams that would be essentially autonomous, connected to other teams only loosely, and only when unavoidable. These largely independent teams could do their work in parallel. Instead of coordinating better, they could coordinate less and build more. Now came the hard part—how exactly could we implement such a tectonic shift? Jeff assigned CIO Rick Dalzell to figure it out. Rick solicited ideas from people throughout the company and synthesized them, then came back with a clearly defined model that people would talk about for years to come: the two-pizza team, so named because the teams would be no larger than the number of people that could be adequately fed by two large pizzas. With hundreds of these two-pizza teams eventually in place, Rick believed that we would innovate at a dazzling pace. The experiment would begin in the product development organization and, if it worked, would spread throughout the rest of the company.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“The NPI process was deflating for morale. But figuring out how to “boost morale” is not Amazonian. Other companies have morale-boosting projects and groups with names like “Fun Club” and “Culture Committee.” They view morale as a problem to be solved by company-sponsored entertainment and social interaction. Amazon’s approach to morale was to attract world-class talent and create an environment in which they had maximum latitude to invent and build things to delight customers—and you can’t do that if every quarter some faceless process like NPI smites your best ideas. In chapter six, we discuss Amazon’s belief that focusing on controllable input metrics instead of output metrics drives meaningful growth. Morale is, in a sense, an output metric, whereas freedom to invent and build is an input metric. If you clear the impediment to building, morale takes care of itself.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“In my tenure at Amazon I heard him say many times that if we wanted Amazon to be a place where builders can build, we needed to eliminate communication, not encourage it. When you view effective communication across groups as a “defect,” the solutions to your problems start to look quite different from traditional ones. He suggested that each software team should build and clearly document a set of application program interfaces (APIs) for all their systems/services. An API is a set of routines, protocols, and tools for building software applications and defining how software components should interact. In other words, Jeff’s vision was that we needed to focus on loosely coupled interaction via machines through well-defined APIs rather than via humans through emails and meetings. This would free each team to act autonomously and move faster.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“How has the company managed to stay nimble, not stuck struggling to find common ground, as happens with most companies of such size? The answer lies in an Amazon innovation called “single-threaded leadership,” in which a single person, unencumbered by competing responsibilities, owns a single major initiative and heads up a separable, largely autonomous team to deliver its goals.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“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. Yet many companies find themselves struggling against their own bureaucratic drag, which appears in the form of layer upon layer of permission, ownership, and accountability, all working against fast, decisive forward progress.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“The candidate may be sold on the role and compensation, but their spouse or partner may have reservations about some aspects of the job. If you’re hiring a recent college grad, their parents may have a voice in the decision. In your conversation with the candidate after you’ve made the offer, seek to uncover any issues standing between them and accepting the offer, then seek to address and resolve them.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“There are eight steps in the Bar Raiser hiring process: Job Description Résumé Review Phone Screen In-House Interview Written Feedback Debrief/Hiring Meeting Reference Check Offer Through Onboarding”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“The main components of an OP1 narrative are: Assessment of past performance, including goals achieved, goals missed, and lessons learned Key initiatives for the following year A detailed income statement Requests (and justifications) for resources, which may include things like new hires, marketing spend, equipment, and other fixed assets Each group works in partnership with its finance and human resources counterparts to create their detailed plan, which is then presented to a panel of leaders.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“The nature of the Amazon Leadership Principles is borne out in processes and practices throughout the company. For example, the six-page narratives that the company uses in place of PowerPoint decks to present quarterly and yearly business updates require both the writer and reader to Dive Deep and Insist on the Highest Standards. The Press Release/Frequently Asked Questions process—aka PR/FAQ—reinforces customer obsession, starting with customer needs and working backwards from there. (See chapters four and five for a detailed discussion of both the six-pager and the PR/FAQ.) The Door Desk Award goes to a person who exemplifies Frugality and Invention. The Just Do It Award is an abnormally large, well-worn Nike sneaker given to employees who exhibit a Bias for Action. It usually goes to a person who has come up with a clever idea outside the scope of their job. What’s peculiarly Amazonian about the award is that the idea doesn’t have to be implemented—nor does it have to actually work if it is—in order to be eligible. The stories we tell in part two of this”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Dive Deep. Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes differ. No task is beneath them. Have Backbone; Disagree and Commit. Leaders are obligated to respectfully challenge decisions when they disagree, even when doing so is uncomfortable or exhausting. Leaders have conviction and are tenacious. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly. Deliver Results. Leaders focus on the key inputs for their business and deliver them with the right quality and in a timely fashion. Despite setbacks, they rise to the occasion and never settle.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Amazon’s Leadership Principles6 Customer Obsession. Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership. Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say, “that’s not my job.” Invent and Simplify. Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, A Lot. Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious. Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them. Hire and Develop the Best. Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice. Insist on the Highest Standards. Leaders have relentlessly high standards—many people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high-quality products, services, and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed. Think Big. Thinking small is a self-fulfilling prophecy. Leaders create and communicate a bold direction that inspires results. They think differently and look around corners for ways to serve customers. Bias for Action. Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk-taking. Frugality. Accomplish more with less. Constraints breed resourcefulness, self-sufficiency, and invention. There are no extra points for growing headcount, budget size, or fixed expense. Earn Trust. Leaders listen attentively, speak candidly, and treat others respectfully. They are vocally self-critical, even when doing so is awkward or embarrassing. Leaders do not believe their or their team’s body odor smells of perfume. They benchmark themselves and their teams against the best.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Amazon’s Leadership Principles6 Customer Obsession. Leaders start with the customer and work backwards. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers. Ownership. Leaders are owners. They think long term and don’t sacrifice long-term value for short-term results. They act on behalf of the entire company, beyond just their own team. They never say, “that’s not my job.” Invent and Simplify. Leaders expect and require innovation and invention from their teams and always find ways to simplify. They are externally aware, look for new ideas from everywhere, and are not limited by “not invented here.” As we do new things, we accept that we may be misunderstood for long periods of time. Are Right, A Lot. Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs. Learn and Be Curious. Leaders are never done learning and always seek to improve themselves. They are curious about new possibilities and act to explore them. Hire and Develop the Best. Leaders raise the performance bar with every hire and promotion. They recognize exceptional talent, and willingly move them throughout the organization. Leaders develop leaders and take seriously their role in coaching others. We work on behalf of our people to invent mechanisms for development like Career Choice. Insist on the Highest Standards. Leaders have relentlessly high standards—many people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high-quality products, services, and processes. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“In chapter five, we discuss how new ideas and products are developed at Amazon: Working Backwards from the desired customer experience. Before we start building, we write a Press Release to clearly define how the new idea or product will benefit customers, and we create a list of Frequently Asked Questions to resolve the tough issues up front. We carefully and critically study and modify each of these documents until we’re satisfied before we move on to the next step.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Jeff was insistent that we follow the process until we uncovered the truth and were crystal clear on what we were trying to build. He said that with the volume of scale we wanted to achieve, unless the service was built right with the initial release, teams would spend all their time keeping the system running and would not be able to develop any new features.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Moreover, better-informed people make higher-quality decisions, and can deliver better, more detailed feedback on the presenting teams’ tactical and strategic plans.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Defining the basics of the culture, articulating leadership principles, regularizing essential practices—Bar Raiser hiring, teams with single-threaded leaders, written narratives, Working Backwards, focusing on input metrics—all these things have proved to be essential to us in other endeavors. Indeed, we can’t imagine doing business without them.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Amazon single-handedly—and permanently—raised the bar for convenience in online shopping. That, in turn, forever changed the types of products shoppers were willing to buy online. Need a last-minute gift or nearing the end of a pack of diapers? Amazon was now an alternative to the immediacy of brick-and-mortar stores.”4”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“It proved once again that giving employees the right tools to solve problems and relying on their good judgment is a powerful combination.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes differ. No task is beneath them.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Good intentions don’t work. Mechanisms do.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“Some companies, in a rush to get a project to market, ignore that truth and keep building according to the original plan. In their attachment to the modest gains of that plan, they motivate the team to pursue it aggressively, only to realize much later that there was a much bigger gain to be had if they’d taken the time to question their own assumptions.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
“I opened this chapter with a question: How was it that Amazon got to cloud computing first and became the largest provider of web services? Jeff provides the answer in his letter: it is because of Amazon’s innovative spirit combined with the patience that comes with long-term thinking.”
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
― Working Backwards: Insights, Stories, and Secrets from Inside Amazon
