The Amazon Way
5.0
12 min

The Amazon Way

by John Rossman

Brief Summary

"The Amazon Way: Amazon's Leadership Principles" by John Rossman explores the core leadership principles that drive Amazon's success. Being a former manager at Amazon himself, Rossman reveals a unique approach to leadership, customer obsession, innovation, and frugality of the company. The major Amazon principles will definitely enrich any business or company that seeks innovation and sustained growth.

Key points

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Amazon is an excellent example of success, primarily because they are client-oriented and trustworthy. Leaders at Amazon start with the customer and work backwards, always trying to earn and maintain the customer's trust. Such an approach is often referred to as the Amazon method.

Jeff Bezos is not just dedicated to customer service — it’s almost his obsession. John Rossman says that this drive has often resulted in strong reactions. Sometimes, he could even harshly criticize Amazon employees who fail to meet his high standards for customer service. Bezos has a unique ability to put himself in the customer's shoes, understanding their unspoken needs. His goal is to create systems that meet these needs better than anyone else.

Long before the rise of social media and the Internet’s transformation of retail, Bezos had internalized two key principles of customer service. First, when a customer is dissatisfied, they don't just tell a few friends; they tell many people instead. Second, the best customer service is one where the customer never needs to ask for help at all. This second principle led to a seemingly paradoxical approach: Amazon made it difficult for customers to find the customer service number.

At first glance, you might feel like this is a lack of concern for customer needs. However, the reality was that Amazon had developed technology that allowed customers to solve most of their issues without human intervention. For instance, 98% of customer inquiries are about tracking orders. Therefore, online tools can easily fulfill this task. Actually, Bezos believed that customers prefer not to talk to customer service representatives — and he was right about this. By providing data and tools, Amazon trained customers to solve their own problems. They save money on costly customer service centers and have high customer satisfaction.

Trust is another fundamental principle at Amazon. Bezos understands that a lack of trust perpetuates fear, which can paralyze an organization. To make sure that your company develops relationships based on trust, follow some key guidelines. Remember to remain transparent, accept responsibility, and empower team members, allowing creative freedom. Always encourage open discussion, and recognize their individual strengths.

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Great companies are obsessed with their customer service
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The spirit of relentless innovation and a mindset of ownership
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Innovation through failure and problem-solving at Amazon
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Amazon thrives on a bias for action, balancing speed and calculated risk
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Amazon always has very high standards
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Amazon’s priorities in hiring and retention to ensure excellence
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Frugality drives Amazon's innovation and efficiency
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Final summary

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