INDEX
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A
ABCs of business decay, 275
Accountability culture, 27–30, 157
high standards driving, 167
metrics meetings for, 160
Agile methodology, 79
Agility. See Speed and agility
Alvarez and Marsal, 275
Amazon
conglomerate businesses of, 145–147
Flex delivery, 112
growth of, 278
inventiveness of, 5, 40, 51, 63–66, 104, 116, 118
inventor congratulations from, 11–12, 64
predicted future of, 278–280
promise of, 107, 184, 202, 274
S-Team book club of, 264–265
See also specific topics
Amazon Auction, 122
Amazon Delivery Service Partner program, 134
Amazon Marketplace, 11–12, 116–117, 160, 274
flywheel and, 122–123
OPW and, 111–112
small start of, 80–84
Amazon Mechanical Turk, 110, 217
Amazon Robotics, 202–203
Amazon second headquarters (HQ2), 3–4
Amazon Seller Flex, 112, 150, 151
Amazon Web Services (AWS), xiii, 22, 30, 50, 52, 77, 87
external developers improving, 144–145
Greengrass software of, 152
as platform company, 210
size of, 233
Amazon’s Original Flywheel, 121–122, 123–124
Antibureaucracy, cultural transitions to, 61–62
APIs, 210–211
Architecture, technology, 205–212
Armstrong, Lance, 13–14
Arthur Anderson, 276
Artificial Intelligence (AI). See Machine learning age
Assumptions, disconfirming, 29, 61–62, 82–83, 101, 128, 137
Attention to detail, as ownership, 45–47
Autonomy
leadership and, 41
small teams with, 95–98
AWS. See Amazon Web Services
B
Bad news, featuring, 15–16, 24
The bar raiser, for hiring, 227–230, 232
Bar Raiser Award, 66
Barriers, to communication, 93–94
Batch architecture, 159
Becoming digital, 6–7, 213–216, 282
Being misunderstood, risk of, 51–53
Best beats first, 109
regret minimization framework of, 224–225
Relentless.com of, xiii–xiv, 104
Bezos Day One Fund, 17
Bike delivery, 134
Books, recommended, 264–265
Boring Company, 139
Bureaucracy
as communication threat, 59–60
processes and metrics minimize, 161, 165–166
recognizing, 167–168
See also Antibureaucracy; Two-Pizza Teams
Business, disruption, xi, xii, 40, 49–50, 103, 141
C
Cancelosi, Clifford, 172–174
CCO. See Chief Customer Officer
Central IT, 92–94, 144–145, 211–212
questions for, 213–216
SbD versus, 192
executive reading list for, 263–266
Chief Customer Officer, 20
Chief product officer, ownership and leadership of, 40, 45–47
China, 134
CIO. See Central IT
COGS. See cost of goods sold
Colleagues, trust of, 29
Collins, Jim, 109
Communication
barriers to, 93–94
bureaucracy threatening, 59–60
for cultural transitions, 16–17
See also Future press release technique
Communication structures, Conway’s law of, 60
Compensation, 31–32
Competency, strategy contrasted with, 100
Competing
differently, 74
Confirmation bias, 100–102, 225
Conglomerate businesses, 145–147
Connected devices, for data, real-time, 106–107, 186–187
Consensus, danger of, 23–25
Continuous improvement, 104–105
Conway’s law, of communication structures, 60
Cost of goods sold (COGS), 209
Country club disease, 35–37
CP/M versus 86-DOS, 149–150
Creation, of customer and seller obsession, 19–22, 157, 180
Creativity, innovation contrasted with, 234
CRM. See Customer relationship management
Cultural transitions, 16–17
to antibureaucracy, 61–62
to operational excellence, 105
Custom software, 211–212
Customer 1 and 2, 122
Customer and seller obsession, xii, 5, 42, 123
CCO and, 20
numerical swords and, 25–26
for vendor merchants, 11–12, 80–81
Customer expectations, 103, 188
durable needs and, 135–136
iPhone changing, 179
promises setting, 107, 184, 202, 274, 275–276
Customer experience, 80–81, 128, 178–179
fitness function measuring, 98
metrics for, 21–22, 98, 172–175, 180–181
personas and journey maps for, 260
reducing friction of, 127–128, 132, 186–187
Customer relationship management (CRM), 157–158
Customer reviews, 51, 110, 128
Cybersecurity, 189–193
D
Dalio, Ray, 218–219
Dalzell, Rick, 211
Dash Button, 183–184
connected devices for, 106–107, 186–187
machine learning for, 218
standards for, 161
Day 1 and Day 2 companies, 14–17, 60, 68, 203
Decay, ABCs of, 275
Decentralize, for digital, 91–94
as better and faster, 91, 223–224, 225
as reversible, 225–226
Deloitte, on AI, 219
Dependencies, managing, 28–30
Design principles, 111, 177, 260
Devices. See Connected devices
Differentiate, from competition, 133, 209
clarity for, 234–235
decentralize for, 91–94
end user obsession for, 10, 186–187
leadership transformation for, 277
Digital Project Portfolio, 41
Direct and indirect employees, 202
Direction, from questions, 16
Disruption, business, xi, xii, 40
Amazon effect as, 103
innovation causing, 49–51
partnering contrasted with, 141
Do the math, 172–175
Door Desk Award, 67
Doors, one-way or two-way, 225–226
Durable needs, of customers, 135–136
E
See also Friction, of processes
eBay, 111
Echo and Echo Show, 130
Employees
the bar raiser hiring, 227–230, 232
as fanatics or patriots, 9, 10–11
understanding, 11–12
Employees, as direct and indirect, 202
The “empty chair,” 66
Enron, 276
Entrepreneurial mindset, 95–98
Equifax, 275
Evans, Benedict, 97–98
Executive team reading list, 263–266
failure and, 80–84
scaling after, 188
See also Thought experiments
F
Failure, 84
test versus execution, 85
See also Experimentation
FAQs. See Frequently asked questions
FBA. See Fulfillment by Amazon
FCF. See Free Cash Flow
Finance FAQ, 257–258
Financial
investing, 39–40
results measuring, 10
Fire Phone, 83–84
Fitness function, 98
Forcing funtion, 112, 115–118, 243–244
Formulas, for automation, 171, 173
The Forward (Armstrong), 14
Frederickson, Valerie, 228
Free Cash Flow (FCF), 267–270
Free Everyday Shipping, 128
Frequently asked questions (FAQs)
sample set of, 248–258
writing, 247–248
Friction, of processes, 127–128, 132, 186–187
Frugality, 5
innovation through, 67–69
Fulfillment by Amazon (FBA), 145, 211
Future, of Amazon, 278–280
Future press release technique, 97, 117, 119, 241, 242–244
G
Games, innovation through, 63–66
Gates, Bill, 149
Go retail stores, 100, 132, 184–185
Google Cardboard, 82
Governance, 39–43
Grand slam, 22
H
Habits, building new, xiv, 157, 263–266
Hackathon, 65
Harmony versus results, 23–24
Hiring
avoiding mistakes in, 227–230, 232
standards for, 231
“How to Map Your Industry’s Profit Pool,” 142–143
HQ2. See Amazon second headquarters
Hughes, Larry, 190–191
I
Improvement, continuous, 104–105
India, 134
Inefficiencies, 104
Information security. See Cybersecurity
Innovation, xiii–xiv, 40, 95, 137, 201, 234
at AWS, 233
being misunderstood and, 51–53
consensus danger to, 23–25
customer friction and, 127–128, 186–187
disruption through, 49–51
FCF for, 267–270
frugality for, 67–69
future press release for, 241–242
games for, 63–66
investment as, 39–40
questions for, 16, 137, 138–139
Input metrics, 10
Insights, from customers, 10
Instincts, of leadership, 43
Instrumentation, of data, 161
Internal politics, overcoming, 55
Internet of Things (IoT), 152, 183–187
Interoperability, APIs for, 210–211
Invent and simplify, 5, 116, 165, 168
clarity to, 234–235
Inventiveness, of Amazon, 5, 40, 51, 63–66, 104, 116, 118
Inventor congratulations, from Amazon, 11–12, 64
IoT. See Internet of Things (IoT)
iPhone, 179
IT Group FAQ, 255–257
Item Authority, 49–50, 111, 118, 128
J
Journey maps, 260
Just Do It Award, 66
Just Walk Out Technology, 132, 184–185
K
Kaizen, 65
Kildall, Gary, 149–150
Kiva Systems. See Amazon Robotics
Kodak, 101
L
Lab126, 40
Launch-and-learn strategy, 143–144
Leaders Are Right, a Lot, 46, 85, 101, 225
attention to detail, 45–47, 213–216
FCF focus of, 267–270
hiring digital, 76–77
personal change in, 277, 280–282
symbolism reinforcing, 65–66
trust of, 11, 16, 29–30, 32, 273–276
Leadership principles (LP), 5, 24, 46
The Lean Startup (Ries), 82–83
Legal FAQ, 257
for digital transformation, 7
for FCF, 267–270
Look Inside the Book, 51–52
Low-fidelity prototyping, 82
LP. See Leadership principles
M
M@. See Amazon Marketplace
Machine learning age, 217–218
trends toward, 219–220
Managing, 21
dependencies and, 28–30
machine learning transition, 217–220
Mason, Llew, 235
Matt Round Tool (MRT), 229–230
Mechanical Turk. See Amazon Mechanical Turk
Mercant integration. See Amazon Marketplace
Mercenary employees, 9–10
Merchant vendors, 11–12
Metrics, 112, 115, 119, 157–158, 177, 212
for customer experience, 21–22, 98, 172–173, 180–181
designing, 159–161
hierarchy of, 172–175
input contrasted with output, 10
as numerical swords, 25–26
POP as, 180–181
SLAs and, 26, 161, 178, 210, 212
technology for, 104–105
Metrics is a verb, 162
Metrics: The Rhythm of the Business, 162
Minimum viable product (MVP), 82–83
Mission-driven organization, 9–10
patriot employees and, 10–12
Mistakes
assessing, 14
reversing, 225–226
Misunderstandings
as key leverage, 124
risk of, 51–53
Moving forward, 13
from Day 2 status, 16–17
MRT. See Matt Round Tool
MVP. See Minimum viable product
N
Nadella, Satya, 220
Napoléon, 137
future press release as, 243–244
PowerPoint versus, 235–236
writing, 236–238
Neophyte mindset, 128
Numerical swords, metrics as, 25–26
O
Obsession, customer and seller. See Customer and seller obsession
Offense, in business, xii–xiii, 209
Operating Plan 1 (OP1), 195–199, 202
Operating systems, 149–152
Operational excellence, 103, 105, 135
dis-ease contrasted with, 177–179
OPW. See Other people’s work
Organizations
mission-driven, 9–10
patriot employees and, 10–12
scalability of, xiii–xiv, 6–7, 75
Other people’s work (OPW), 109–112
Output metrics, 10
attention to detail as, 45–47
of cybersecurity, 189–193
hiring related to, 231
lacking, 129–132
Two-Pizza Teams promoting, 42
Ownership and leadership, of chief product officer, 40, 45–47
P
with technology team, 208–209
Passion, of employees, 11–12
Patience and urgency, xiv
Patriot employees, 10–11
Perfect order percentage metric (POP), 180–181
Personas, 260
Pharmacy operations, xii–xiii, 129–132
P&L, 270
as dysfunction marker, 180
Plan, annual (OP1), 195–199, 202
Platform strategy, 87–89
Podcasts, recommended, 265
Point solution, technology, 206
Politics, big-company, 23–24, 55
POP. See Perfect order percentage metric
Positive automated confirmation, 107
PowerPoint, 235–236
Prime Loyalty. See Amazon Prime
Principles
Process, 10, 29, 60, 65, 83, 89
as bureaucracy minimizer, 161, 165–168
checklist for scaling, 168–169
formula for automating, 171, 173
metric hierarchy of, 172–175
Six Sigma and, 106–107
Value chain and, 142–143
Product quality, 49–50
through customer obsession, 42
Product transitions, 17
Profitability, xii, 68, 104, 279
Promise, to customers, 107, 184, 202, 274, 275–276
Q
Questions, 230
assumptions and, 29, 61–62, 82–83, 101, 128, 137
for Central IT, 213–216
for decisionmaking, 225–226
for innovation, 16, 137, 138–139
See also Thought experiments
R
Real-time data, 105
batch architecture versus, 159
connected devices for, 106–107
Recruiting/retaining talent, 4
Regret minimization framework, 224–225
Rentless.com, xiii–xiv, 104
Results, 27–30
harmony versus, 23–24
metrics meetings driving, 160
Go stores for, 100, 132, 184–185
technology-first enterprise versus, 131
Reuter, Kimberly, 56
Revitalization, transformation contrasted with, xii
Ries, Eric, 82–83
Risk
of being misunderstood, 51–53
cybersecurity and, 189–193
of social cohesion, 23–26
Risk Manager FAQ, 255
Rutty, Gregory, 229
S
Sacrifice, over short-term success, 5, 32, 53
Satell, Greg, 236
SbD. See Security by design
Scalability, operational, xiii–xiv, 6–7, 75, 201
checklist for, 168–169
experiment before, 188
Seattle, challenges of, 3–4
Security by design (SbD), 192
Self-service, 88
Seller obsession. See Customer and seller obsession
Selling new next to used, 127
Service level agreements (SLA), 26, 161, 178, 210, 212
Ship Label and Manifest (SLAM), 107
Shopping tools, 122
Short-term success, sacrificing, 5, 32, 53
Six Sigma, 106–107
SLA. See Service level agreements
SLAM. See Ship Label and Manifest
Smartphones. See Connected devices
Social cohesion, risk of, 23–26
Software. See Custom software
Solutions, yes culture for, 55–57, 61
Speed and agility, xii, 6–7, 75, 77
of decisionmaking, 223–224
APIs and SLAs with, 210
decentralizing and, 92–94
Start small. See Experimentation
Statistics. See Metrics
Status quo, 13
of Amazon Seller Flex, 112, 151
changing, 100–102
clarity for, 234–235
contrasted with competency, 100
of launch-and-learn, 143–144
OPW as, 109–112
for platforms, 87–89
“Student body left,” 143
through business metrics, 10, 42
customer and seller obsession for, xii, 5, 42, 123
short-term sacrifice for, 5, 32, 53
Superpowers, for customers, 133–134, 136
Supervisor FAQ, 253–254
Symbolism, leadership reinforced by, 65–66
T
Talent, recruiting/retaining, 4
Target hack, 192
Team and teambuilding, xiv
personal and business goals align, 12
team sizing, 95–98
APIs and SLAs in, 210
business strategy and, 205
capability building, 93–94, 96, 138
custom software and, 211–212
data security and, 189–193
digital contrasted with, 74, 91
Just Walk Out, 132
metrics data through, 104–105, 112, 118
retail-first enterprise versus, 131
See also Amazon Robotics; Internet of Things (IoT); Just Walk Out Technology
Think big, act small, 40, 81, 85
See also Experimentation
Thought experiments, 139
Tools, for customers and sellers, 122–123
Toys R Us, 144
Transformation programs, revitalization contrasted with, xii
Transportation industry, 142, 147
Amazon impact on, 278
Amazon Seller Flex and, 112, 151
Trends, embracing, 219–220
Trial and error. See Experimentation
Trust, 136
of colleagues, 29
of leadership, 11, 16, 29–30, 32, 273–276
Truth seeking, 24
U
Unit economics model, 269
Urgency and patience, xiv
User manual, 259–262
See also Customer and seller obsession; Customer experience
V
Value
creating, xii
long-term approach to, 5
Vendor merchants, 11–12, 80–81, 274
Voice of the customer, 21, 186
W
Walmart, 17
“What would Jeff Do?,” xi
Where’s My Stuff, 128
Whole Foods, xiii, 100, 130–132, 184–185
Wilke, Jeff, 226
Wizard of Oz, 201
Wood, David, 104
Worker FAQ, 249–252
Writing, importance of, 236–238, 247–248, 259–262
WWJD. See “What would Jeff Do?”
Y
Yes culture, success through, 55–57, 61
Z
Zuckerberg, Mark, 273