Customer Obsession
Leaders start with the customer and work backward. They work vigorously to earn and keep customer trust. Although leaders pay attention to competitors, they obsess over customers.
At Amazon, this principle manifests in decisions like the introduction of one-click ordering, Prime delivery, and customer reviews. Jeff Bezos famously stated, "We're not competitor-obsessed, we're customer-obsessed. We start with what the customer needs and we work backwards."
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."
This principle encourages Amazon employees to take responsibility for their decisions and think about the broader impact of their actions. Owners will step up to address problems even when they fall outside their immediate responsibilities.
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."
This principle has led to Amazon's most significant products and services, including AWS, Kindle, and Alexa. Amazon values invention so highly that they operate under a "Day 1" mentality, always striving to innovate as if it were just the beginning.
Are Right, A Lot
Leaders have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs.
This principle doesn't mean Amazonians are expected to be infallible. Instead, it emphasizes the quality of decision-making, seeking out diverse perspectives, and the ability to make good judgments despite uncertainty.
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.
At Amazon, this principle drives continuous personal and organizational improvement. Leaders are encouraged to seek new knowledge, stay humble about what they don't know, and actively learn from various sources.
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.
Amazon is known for having some of the most rigorous hiring processes in the industry. Each hiring decision is made through a structured bar-raising process where interviewers assess candidates specifically against the leadership principles.
Insist on the Highest Standards
Leaders have relentlessly high standardsmany people may think these standards are unreasonably high. Leaders are continually raising the bar and drive their teams to deliver high-quality products, services, and processes.
This principle manifests in Amazon's focus on quality, attention to detail, and rejection of mediocrity. The famous "two-pizza rule" for team sizes is one example of this principle in action, fostering small, autonomous teams that maintain high standards.
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.
This principle has guided Amazon's major strategic initiatives, like AWS, which grew from an internal infrastructure project to a dominant cloud platform. Amazon encourages employees to tackle ambitious problems rather than incremental improvements.
Bias for Action
Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk taking.
This principle emphasizes agility and the willingness to make decisions with approximately 70% of the desired information rather than waiting for 100%. Amazon differentiates between Type 1 decisions (hard to reverse) and Type 2 decisions (reversible), applying this principle primarily to Type 2 decisions.
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.
Despite Amazon's massive success, the company continues to operate with a mindset of frugality. This is reflected in everything from the famously low-budget door-desks to the company's preference for returning invested capital in the form of value to customers rather than extravagant perks.
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.
This principle values honesty, transparency, and the courage to admit mistakes. At Amazon, earning trust means acknowledging when you're wrong, being open about challenges, and building credibility through consistent action rather than just words.
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.
Amazon leaders are expected to understand their business at a granular level. This principle drives data-driven decision making and ensures that leaders maintain detailed knowledge, not just high-level oversight.
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. Once a decision is determined, they commit wholly.
This principle encourages healthy disagreement and the expression of diverse viewpoints during decision-making, while emphasizing the importance of full commitment once a final decision is reached. It's designed to prevent "decision malaise" where teams become stuck in disagreements.
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 settle.
This principle emphasizes accountability and the importance of actual delivery rather than just effort or intentions. At Amazon, success is measured by tangible outcomes and results.
Strive to be Earth's Best Employer
Leaders work every day to create a safer, more productive, higher performing, more diverse, and more just work environment. They lead with empathy, have fun at work, and make it easy for others to have fun. Leaders ask themselves: Are my fellow employees growing? Are they empowered? Are they ready for what's next?
This principle, added more recently, emphasizes Amazon's focus on employee experience and workplace environment. It underscores the importance of leadership that develops employees and creates a positive workplace culture.
Success and Scale Bring Broad Responsibility
We must be humble and thoughtful about even the secondary effects of our actions. Leaders create more than they consume and always leave things better than how they found them. Leaders keep learning, are curious, and look at what's new.
This principle reflects Amazon's awareness of its increasing impact on the world. It emphasizes corporate responsibility, sustainability, and the importance of considering the broader consequences of business decisions.
Conclusion
These leadership principles serve as Amazon's cultural and operational compass. They guide hiring decisions, performance reviews, strategy development, and daily operations. While Amazon continues to evolve as a company, these principles remain central to how it operates and how Amazonians think about their roles and responsibilities.
The principles have proven remarkably resilient over Amazon's history, despite only a few additions to the original list. They've helped Amazon maintain focus, drive innovation, and scale effectively across numerous business sectors and geographies. For those interested in understanding Amazon's unique approach to business, these leadership principles provide essential insight.
