SaaStock Australasia 2019: Culture of innovation at amazon
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Karl Durrance Head of ISV - ANZ AWS
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SaaStock Australasia 2019: Culture of innovation at amazon
- 1. v Culture of Innovation at Amazon Karl Durrance durrance@amazon.com
- 2. f(innovation) = (org * platform) (culture * mechanisms)
- 3. f(innovation) = (org * platform) (culture * mechanisms) Two-pizza teams cross-functional teams devolved decision making DevOps close to the customer quick iteration
- 4. f(innovation) = (org * platform) (culture * mechanisms) a platform for innovation able to bring ideas to life cost effectively and quickly
- 5. f(innovation) = (org * platform) (culture * mechanisms) Customer Obsession Ownership Invent and Simplify Are Right, A Lot Hire and Develop the Best Insist on the Highest Standards Think Big Bias for Action Frugality Learn and Be Curious Earn Trust of Others Dive Deep Have Backbone; Disagree and Commit Deliver Results
- 6. f(innovation) = (org * platform) (culture * mechanisms) work backwards from the customer. each new idea, starts with a write-up of a press release that helps capture the customer perspective of the problem we are trying to solve. decision making process relies heavily on narratives. very metrics driven culture. operate in small, agile teams.
- 8. What are your long-term customer needs? Never Stop Experimenting Double Down on “Day 1”
Editor's Notes
- Universal truths of retail – we focus on the things that won’t change Customers will always want to pay less Customers will always want the product faster Customers will always want more selection
- Cant help by summarise into math formulas Org structure – small teams, cross-functional teams, devolved decision making, close to the customer, iterating quickly, Dev-Ops Architecture – having an innovation platform – a platform to bring ideas to life cost effectively and quickly Culture – its ok to fail, longer term focus, customer centricity, data driven – needs to be a science lab not a political power struggle Mechanisms – at amazon its our narrative, FAQ, press release – what is it for you?
- To enable the equation the components need to be agile, small and collocated. Having large teams, offloading to centralized functions breaks the equation. ‘Loosely Coupled Systems’ The looser they are coupled, the bigger they scale, the less dependencies, the faster you innovate.
- A deployment once every 11.6 seconds >1000 deployments an hour – automation is key Cloud enables faster access to platforms to enable innovation
- We inject the DNA into Amazonians via our 14 Leadership Principles. These principles are the key mechanism Amazon use to shape and enable our people to interact with our customers. We use these principles in our day to day interaction between teams, with customers and even in interviewing for future Amazonians. Interviews are performed as a “loop” of about 6 interviews. Each interviewer is trained firstly how to do effective interviewing, and then is given two LPs to assess. The hiring manager is purely a single voice in the loop of 6. We also have a “bar raiser” who ensures the interview loop is operating consistently across the org. and performance reviews also rate people against these LPs.
- Mechanisms – at amazon its our narrative, FAQ, press release – what is it for you?
- “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.” 1. True customer obsession 2. Resist proxies 3. Embrace tailwinds 4. High velocity decisions Shareholder letter Day 1 vs Day 2 introduction Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1 Staying in Day 1 requires you to experiment patiently, accept failures, plant seeds, protect saplings, and double down when you see customer delight. A customer-obsessed culture best creates the conditions where all of that can happen. The process is not the thing. It’s always worth asking, do we own the process or does the process own us? In a Day 2 company, you might find it’s the second. Day 2 companies make high-quality decisions, but they make high-quality decisions slowly. To keep the energy and dynamism of Day 1, you have to somehow make high-quality, high-velocity decisions The outside world can push you into Day 2 if you won’t or can’t embrace powerful trends quickly. If you fight them, you’re probably fighting the future. Embrace them and you have a tailwind.