The story of Jeff Bezos and the rise of the world's largest online retailer isn't new, but it's still relevant. At a time when business is hyper-focused on the next, newest and brightest idea, Amazon dares to base its future on a set of principles that were written down in 1997 when the company went public. Bezos, with a net worth of nearly $130 billion, has rarely strayed from these ideals, and it has earned him the title of the richest person in history. Since then, he has entered a variety of industries, including healthcare and space exploration. About his first idea, Bezos tells Brad Stone, author of The Everything Store:Jeff Bezos and the Age of Amazon :
“If you want to find out the truth about what sets us apart, it’s this:we’re genuinely customer-centric, we’re genuinely long-term oriented and we really love to invent. Most companies don't have these things. They focus on the competitor rather than the customer. They want to work on things that will pay dividends in two or three years, and if they don't work in two or three years, they will move on. And they prefer to be close followers rather than inventors, because it's safer. So if you want to capture the truth on Amazon, that's why we're different. Very few companies have these three elements. “
Focusing on the long term has always been a cornerstone of the Bezos Empire mindset. Beyond that, here are some key principles he uses.
1. Surround yourself with the best team possible.
Amazon has a notoriously lengthy hiring process. Prospective employees can expect to submit SAT scores and answer questions such as, "How many gas stations are there in the United States?" The answer is not meant to be correct, rather it is meant to promote critical thinking skills.
"Every time we hire someone, he or she should raise the bar for the next hire, so that the overall talent pool is always improving,” says Bezos.
Employee reviews take place in real time, rather than at quarterly or annual intervals. Grading software allows peers to publicly rate, praise, and even criticize each other.
Consider implementing a more humane, real-time review process into your workflow. Entrepreneurs, reach out to peers and trusted friends – ask for honest feedback early and often.
2. Learn from your mistakes.
Amazon has had many failures. To compete with eBay, Bezos once launched its own version of auctions on the market. He collapsed. But it also paved the way for Amazon affiliates, allowing private sellers to use the site, shipping facilities, and even storage to sell their own wares.
More recently, Amazon Fire Phone, which was widely seen as a publicity stunt. Without failure, innovation could never be possible. But with innovation comes misunderstanding, as Bezos is known to discuss. He considers it important enough to include in the 14 Leadership Principles listed on Amazon.com:“[Leaders] look for new ideas from everywhere, and are not limited by 'not invented here.' As we do new things, we accept that we can be misunderstood for long periods of time.
Learning from failure is easy to preach and harder to practice. Remember The Amazon Story and its many failures when struggling with a decision of, should I?
3. Stay frugal.
Frugality is an almost direct opposition to modern big business practices. Bezos preached and practiced from the start. A now-famous photo shows Bezos sitting behind a desk made from a two-by-four wedged door. Amazon was already a publicly traded company at the time. The doors were simply less expensive than traditional desks, and Bezos always had a soft spot for symbolism.
An upgraded version of the desks is still in use at Seattle headquarters today, and miniature versions are given as prizes for cost-cutting innovations. “Achieve more with less,” says Bezos. “Constraints breed ingenuity, self-sufficiency and invention. There are no additional points for increasing headcount, budget size, or fixed expenses. »
No, you don't necessarily need to buy door stations, but think about where you can reduce some unnecessary expenses. Short-term benefit or comfort could hurt you in the long run.
4. Stand firm.
It's only in recent years that Bezos has graced the media with social appearances. For many years, he was content to work behind the scenes – a kind of “heads down, work hard” mentality. Its recent social emergence testifies to a kind of evolution. Bezos understands that to stay relevant and grow, you have to be willing to adapt. But you also need to know when to draw the line. For him, that means sticking to the big vision while allowing the small moving parts to fluctuate. For Bezos, compromising on customer experience was never an option. He once nearly shut down an entire email marketing division after an embarrassing customer email was sent directly to him. That single email sparked a marketing overhaul.
As he writes in the Amazon Leadership Principles, “Leaders have conviction and tenacity. They make no compromises in the name of social cohesion. Once the decision is made, they are fully committed. »
Make a list of your high-vision items. Frame it and keep it accessible. These are your articles without compromise. Everything else is negotiable.
5. Think big.
Amazon was never intended as an online bookstore or even as an online retailer. Books proved to be the easiest market entry at the time. And for Bezos, Amazon was just the beginning. In 2000, he secretly founded Blue Origin, a space exploration company, to achieve his ultimate dreams of not only exploring deep space, but ultimately colonizing other planets as a backup option for Earth.
Think about your dreams versus the tools you use to get there. Don't confuse the two and settle for the simpler option.
Related: Jeff Bezos' Rules for Living
