Culture and Lean Management @ Amazon.com

“Work Hard, Have Fun, Make History”

José Papo

Amazon Evangelist

@josepapo

Reminder: Slides about amazon.com

are based on available public info

http://www.amazon.com.br/The-Toyota-Lean-Leadership-ebook/dp/B005NASGY4

http://toyotawaytoleanleadership.com/data3/notes/Toyota%20Way%20to%20Lean%20Leadership%20Student%20Notes.pdf

It's All About the Long Term

"We believe that a fundamental measure of our success will be the

shareholder value we create over the long term. We will work hard to spend

wisely and maintain our lean culture.” – Jeff Bezos

http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsannual

http://www.amazon.com/b?_ref=career_LP&node=239365011

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.

http://www.amazon.com.br/Outside-In-Customers-Business-ebook/dp/B008CRWKRY

“Thank you. Every time I see that white paper on the front page of Amazon, I know that I’m about to get more for my money than I thought I would. I signed up for Prime for the shipping, yet now I get movies and TV books. You keep adding more, but not chaging more. So thanks again for the additions.”

Somos obcecados em ajudar nossos clientes a reduzir custos

“Hello, We noticed that you experienced poor video playback while watching the following

rental(s) on Amazon Video On Demand: Django Unchained We're sorry for the inconvenience and have issued you a refund for the following

amount(s): $4.99 . While Amazon Video On Demand transactions are typically not refundable, we are happy

to make an exception in this case. This refund should be processed within the next 2 to 3 business days and will appear on your next billing statement for the same credit card used to purchase this item.

We hope to see you again soon.

Amazon Video On Demand Team

http://www.amazon.com.br/Delivering-Happiness-ebook/dp/B008035H16

"Our whole philosophy became ‘let’s take most of the money we

would’ve spent on paid advertising and paid marketing and instead of spending it on that invest it in the

customer experience/customer service and then let our customers

do the marketing for us through word of mouth’ and that became

the whole business model"

http://blog.kissmetrics.com/zappos-art-of-culture/

Frugality

We try not to spend money on things that don’t matter to customers.

Frugality breeds resourcefulness, self-sufficiency, and invention. There

are no extra points for headcount, budget size, or fixed expense.

"High margins cover a lot of sins. We wouldn't know how to do a

high margin business. Low margins keep you aligned with

customers” – Jeff Bezos

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.

Dive Deep

Leaders operate at all levels, stay connected to the details, and

audit frequently. No task is beneath 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.

http://www.amazon.com/Toyota-Talent-Developing-Your-People/dp/0071477454

How to Build a Lean Culture?

http://www.amazon.com.br/Toyota-Culture-Heart-Soul-ebook/dp/B0062Y5VGQ

• Top-Down AND Bottom-Up

• Leaders Must Lead

• Change Requires Reason and Vision

• People Must be Taught and Supported

• Change Needs a Plan and a Process

OBRIGADO! slideshare.net/jpapo

José Papo

Amazon Evangelist

@josepapo