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BirdsEye View

 My readers know I’m an Amazon fan.  This company, which started as a bookseller 25 years ago, had as its mission in 1995 “TO BE THE WORLD’S MOST CUSTOMER-CENTRIC COMPANY”.  What a great, simple and meaningful mission!

As the company evolved, that mindset – putting the customer first – was the guidepost for innovation of product and delivery.  Amazon changed the world, brought about self-service as a relationship building tool, and took numerous audacious, high-risk steps that panned out with patience and tenacity.

Amazon started with 12 guiding principles, and added to those as time went by, ”Learn and be curious”, for example, was added a few years ago because in a rapidly changing world we need people who are never done learning and always seek to improve themselves.

None of us can or should become Amazon, but every one of us can learn from the though-provoking Guiding Principles that serve the company every day.  They deeply resonate with me, and I wanted to share them again with you. They are more relevant than ever during this COVID world, and will be even more so post COVID.

1. 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. 

AB:  Amazon is truly a customer-centric company.  Banks typically are not.  We organize based upon our own convenience, politics and expertise.  We should consider innovative organization designs that put the customer in the center and bring the entire bank to bear on each and every customer and prospect.  It’s our best opportunity to create a sustainable competitive advantage.

2. 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.”  

AB:  It’s a huge challenge for line-of-business owners to think corporately.  It’s easier to become advocates of our own business, occasionally to the detriment of others.  Leaders indeed should be corporate citizens and act as such; the culture should support this position and not penalize those who sacrifice the performance of their own business to advance enterprise-wide goals and strategies.

3. 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”. Because we do new things, we accept that we may be misunderstood for long periods of time.  

AB:  There are two important elements to this principle:

1. Simplification.

2. Patience/conviction.

Both are essential to successful innovation and strategic execution, no matter what the strategy is.

4. Are Right, A Lot

Leaders are right a lot. They have strong judgement and good instincts.  They seek diverse perspectives and work to disconfirm their beliefs.  

AB:  Today’s world is too insular.  We listen to affirmations and set aside questioning and constructive dialog.  Amazon’s leaders listen to the contrarians and learn from their perspectives, even if they do not validate the leader’s presumptions.

5. 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.  

AB:  Success should not imply no change.  The world is ever-changing, and we can learn from these changes, adapt and adopt them as appropriate.

6. Hire and Develop the Best

Leaders raise the performance bar with every hire and promotion. They recognize people with exceptional talent and willingly move them throughout the organization. Leaders develop leaders and are serious about their role in coaching others.  We work on behalf of our people to invent mechanisms for development like Career Choice. 

AB:  It is affirming that even Amazon, with all its technology and unique innovation, sees people as its key to success.  Banks have much less to rely upon beyond people.  Our selection processes should continue to be vigorous and modern, responding to contemporary hiring and retention practices.

7. 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 driving 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.  

AB:  Shooting for the stars will at least get you to the moon, and father than if you were shooting lower.  High expectations – vs. “mission impossible” – are inspirational, motivational and empowering.  There is no glory in being average!

8. 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.  

AB:  Leaders should inspire people.  Big (yes achievable) visions stand on their own as aspirational.

9. Bias for Action

Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking. 

 AB:  This is the textbook definition of agility, a process many of us endorse but fewer practice.  Fast failure is an excellent competitive tool with many benefits and contained downsides (if you never bet the bank).  Practice it every day.  Like Nike said, “Just Do It”, and quickly assess midcourse corrections.

10. 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.  

AB:  Perfectly put.

11. 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.  

AB:  Trust makes leadership work.  Rank, money, position, are all nice accoutrements, but it is trust that creates a movement and followers.  It is a fragile feeling that needs continuous affirmation and reinforcement. Vulnerability is the first step to gain trust, and humility a close second.

12. Dive Deep

Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdote differ. No task is beneath them. 

AB:  Thomas Keller, the best chef I know, used to sweep the floor at the French Laundry.  He would do whatever is needed to help, from menu design to piping veal demi-glace on his amazing white truffle custard.  His head was in the clouds, but his feet always firmly planted on the ground.

13. 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.  

AB:  NO SECOND-GUESSING OR MONDAY MORNING QUARTERBACKS.

14. 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 compromise.  

AB:  Facing and handling adversity is an excellent leadership test.  It’s not about eliminating setbacks; it’s about handling them when they inevitably occur.

Anyone who practices these leadership principles can’t help but be successful.