"Bias for Action" Leadership Principle Explained by Amazon CEO Andy Jassy

Summary

In this script, the importance of speed in business is highlighted, emphasizing that decisions should be made quickly and with calculated risk. The speaker explains the concept of one-way and two-way door decisions, urging teams to make fast decisions that can be reversed when needed. The script also touches on the balance between speed and high standards, stressing that fast actions should not compromise customer experience. The core message is that businesses should adopt a startup mentality, always striving to move faster for the benefit of customers, even in large organizations.

Takeaways

• 😀 Speed is a critical factor in business, and decisions need to be made quickly without over-analyzing.
• 😀 Every business, regardless of its size or industry, can move fast if it prioritizes speed and makes it part of its culture.
• 😀 Many large companies claim they can't move fast due to security, compliance, or size, but in reality, speed is a leadership and culture decision.
• 😀 Decisions can be categorized as either one-way doors (hard to reverse) or two-way doors (easy to reverse). The majority of decisions should be two-way doors that can be made quickly and revised if necessary.
• 😀 Two-way door decisions should be made at the team level and with urgency. Don't take weeks to do something that can be done in days or hours.
• 😀 Businesses operate in a world with 'closing windows,' meaning opportunities are time-sensitive, and competition is fierce. Companies must act swiftly to capitalize on these opportunities.
• 😀 Maintaining high standards while moving fast can create tension, but it is possible to balance the two. It's crucial to avoid launching subpar customer experiences.
• 😀 Launching a subpar customer experience conflicts with the company's customer obsession leadership principle and should be avoided.
• 😀 The concept of leadership principles involves finding the right balance between various goals, even if they sometimes conflict with each other.
• 😀 The company should operate as the 'world's biggest startup,' always questioning why it can't move faster to better serve customers.

Q & A

Why is speed considered so important in business?

Speed is crucial in business because decisions and actions often need to be made quickly to stay ahead of competitors, especially when you're not operating as a monopoly. Speed helps businesses remain agile and responsive to market changes.

What is the main challenge that large enterprises face when it comes to speed?

Large enterprises often face challenges in moving quickly due to security and compliance concerns, as well as a slow organizational culture. However, the script emphasizes that speed is not predetermined, but rather a decision of leadership and culture.

What are one-way door and two-way door decisions?

One-way door decisions are those that are difficult or impossible to reverse once made, whereas two-way door decisions are reversible and can be corrected if made incorrectly. Most business decisions fall into the category of two-way door decisions, which should be made quickly.

How should companies handle two-way door decisions?

Two-way door decisions should be made quickly, with thoughtful consideration, but without excessive delay. If a mistake is made, it's easy to reverse the decision.

What is the significance of urgency in decision-making?

Urgency is key because it ensures that decisions are made promptly and that actions are taken within reasonable time frames. Delaying decisions that could be made in hours or days leads to inefficiency and missed opportunities.

What does 'closing windows' refer to in business?

'Closing windows' refers to opportunities that are time-sensitive and may not be available forever. Companies need to act quickly to capitalize on these opportunities before they close.

What is the connection between having high standards and moving quickly?

While there can be tension between having high standards and acting quickly, it's possible to maintain both. Speed does not mean sacrificing quality, and businesses can move fast while still delivering a great customer experience.

How can leadership principles create tension in decision-making?

Leadership principles often have inherent tensions because they require balancing different goals, such as acting quickly while maintaining high standards. The challenge is finding the right balance that aligns with the organization's values and customer needs.

Why does the speaker emphasize the idea of being the 'world's biggest startup'?

The speaker encourages the mindset of being the 'world's biggest startup' to promote agility, innovation, and a sense of urgency within the company. This mindset helps the company stay focused on speed and continuous improvement, regardless of its size.

What is the ultimate goal for Amazon when making decisions?

The ultimate goal is to constantly improve the customer experience, and leaders should always ask themselves whether their actions are helping to make customers better off by the end of the week.