Unpacking Amazon’s unique ways of working | Bill Carr (author of Working Backwards)
Bill Carr is the co-author of Working Backwards: Insights, Stories, and Secrets from Inside Amazon. With a background at Amazon of over 15 years, Bill played a pivotal role in shaping the company’s global digital music and video ventures, including Amazon Music, Prime Video, and Amazon Studios. After Amazon, Bill was an Executive in Residence with Maveron, an early-stage, consumer-only venture capital firm. He later served as the chief operating officer of OfferUp, the largest mobile marketplace for local buyers and sellers in the U.S. Today he’s the co-founder of Working Backwards LLC, where he helps companies implement Amazon’s time-tested management strategies. In this episode, we discuss:
• What exactly “working backwards” is, and how you do it
• Why having “single-threaded leaders” is so effective
• Inside Amazon’s intense product review process
• How to actually follow the “disagree and commit” principle
• The thinking behind the principle “Leaders are right, a lot”
• Input vs. output metrics
• Fostering a culture of risk-taking and innovation
• The role and responsibilities of a “bar raiser” in your hiring, and how it significantly improves the success rate of new hires
—
Brought to you by AssemblyAI—Production-ready AI models to transcribe and understand speech | Coda—Meet the evolution of docs | Wix Studio—The web creation platform built for agencies
—
Find the full transcript at: https://www.lennyspodcast.com/unpacking-amazons-unique-ways-of-working-bill-carr-author-of-working-backwards/
—
Where to find Bill Carr:
• X: https://twitter.com/BillCarr89
• LinkedIn: https://www.linkedin.com/in/bill-carr/
• Website: https://www.workingbackwards.com/
—
Where to find Lenny:
• Newsletter: https://www.lennysnewsletter.com
• X: https://twitter.com/lennysan
• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/
—
In this episode, we cover:
(00:00) Bill’s background
(04:26) Amazon’s workplace evolution
(09:54) Amazon’s “fitness function”
(11:44) Single-threaded leadership
(18:07) Implementing a program orientation with single-threaded leadership
(20:16) The GM model vs. single-threaded leadership
(21:31) Functional countermeasures needed for single-threaded leadership
(25:22) Embracing the “disagree and commit” principle
(30:22) Understanding disagreements
(32:41) Deciphering Amazon’s “Leaders are right, a lot” principle
(35:25) An explanation of the working backwards framework
(41:16) PR FAQ process: Amazon’s innovation engine
(44:47) Deconstructing the PR FAQ structure
(43:49) The concentric circle model for sharing PR FAQs
(44:55) The customer problem-solution statement
(47:52) Create a product funnel, not a product tunnel
(51:19) How Amazon promotes action vs. talk
(54:35) Amazon’s flywheel and input metrics
(1:00:51) Signs you’ve got a good input metric
(1:04:23) How mistakes can still be made with working backwards
(1:06:54) Why disagreements aren’t necessarily signs products will fail
(1:08:02) Examples of failed Amazon projects
(1:09:55) Cultivating risk-taking and accepting failure
(1:13:57) Amazon’s “bar-raiser” practice for hiring
(1:18:21) Selecting Amazon’s bar raisers
(1:20:41) Advice on implementing practices from Working Backwards
(1:23:10) Bill’s work as an advisor
(1:26:05) Lightning round
—
Referenced:
• Working Backwards: Insights, Stories, and Secrets from Inside Amazon: https://www.amazon.com/Working-Backwards-Insights-Stories-Secrets/dp/1250267595
• Jeff Bezos on X: https://twitter.com/jeffbezos
• D.E. Shaw: https://www.deshaw.com/
• Eric Ries’s website: https://theleanstartup.com/
• GM business model: https://fourweekmba.com/general-motors-business-model/
• Rick Dalzell on LinkedIn: https://www.linkedin.com/in/richarddalzell/
• The Effective Decision by Peter F. Drucker: https://hbr.org/1967/01/the-effective-decision
• Template: Working Backwards PR FAQ: https://www.workingbackwards.com/resources/working-backwards-pr-faq
• Good to Great: Why Some Companies Make the Leap and Others Don’t: https://www.amazon.com/Good-Great-Some-Companies-Others/dp/0066620996
• The Amazon flywheel: https://feedvisor.com/resources/amazon-trends/amazon-flywheel-explained/
• Sixsigma: https://www.6sigma.us/
• Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries: https://www.amazon.com/Loonshots-Nurture-Diseases-Transform-Industries/dp/1250185963
• Andy Jassy on LinkedIn: https://www.linkedin.com/in/andy-jassy-8b1615/
• Implementing Amazon’s Bar Raiser Process in Hiring: A Quick Guide: https://www.barraiser.com/blogs/implementing-amazons-bar-raiser-process-in-hiring
• Microspeak: The As-Appropriate (AA) interviewer: https://devblogs.microsoft.com/oldnewthing/20231017-00/?p=108897
• The Practice of Management: https://www.amazon.com/Practice-Management-Peter-F-Drucker/dp/0060878975
• The Effective Executive: The Definitive Guide to Getting the Right Things Done: https://www.amazon.com/Effective-Executive-Definitive-Harperbusiness-Essentials/dp/0060833459
• Steve Jobs: https://www.amazon.com/Steve-Jobs-Walter-Isaacson/dp/1451648537
• Seveneves: https://www.amazon.com/Seveneves-Neal-Stephenson/dp/0062334514
• A Gentleman in Moscow: https://www.amazon.com/A-Gentleman-in-Moscow/dp/0143110438
• Dune on Prime Video: https://www.amazon.com/Dune-Timoth%C3%A9e-Chalamet/dp/B09LJXY4PH
• A Spy Among Friends: https://www.imdb.com/title/tt15565872/
• Zipp 303 Firecrest tubeless disc brake: https://www.sram.com/en/zipp/models/wh-303-ftld-a1
• The Fifth Discipline: The Art & Practice of the Learning Organization: https://www.amazon.com/Fifth-Discipline-Practice-Learning-Organization/dp/0385517254
—
Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com.
—
Lenny may be an investor in the companies discussed.
This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.lennysnewsletter.com/subscribe
Innovating While Scaling: Lessons from Amazon
In this episode from February 2021, early Amazon execs Colin Bryar and Bill Carr -- in conversation with a16z's Sonal Chokshi -- go beyond the well-known artifacts of Amazon innovation, like the memo and the press release, and share the leadership principles, decision making practices, and operational processes that helped Amazon continue to innovate, invent new products and learn from its mistakes, as it scaled.
It’s all based on their book, Working Backwards: Insights, Stories, and Secrets from Inside Amazon, drawing from the 27 years combined experience of being in the room where it happened at Amazon.
Stay Updated:
Find a16z on YouTube: YouTube
Find a16z on X
Find a16z on LinkedIn
Listen to the a16z Show on Spotify
Listen to the a16z Show on Apple Podcasts
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
Amazon Narratives: Memos, Working Backwards from Release, More
When you hear stories about Amazon's "invention machine" -- which led to a company with not just one or two products but several successful diverse lines of business -- we often hear about things like: Memos, six pages exactly and no powerpoints at all!; or, the idea of just "work backwards from the press release"; and other such "best practices"... But what's often lost in hearing about these is the context and the details behind them -- the what, the how (as well as their origin stories) -- not to mention how they all fit together. Knowing this can give us insight into how all companies and leaders, not just Amazon and Bezos, can define their cultures and ways especially as they scale. After all, Amazon was once a small startup, too.
So in this a16z Podcast with Sonal Chokshi -- the very first podcast for the new book Working Backwards: Insights, Stories, and Secrets from Inside Amazon (out February 9) -- authors Colin Bryar and Bill Carr share not only how Amazon did it, but how other companies can do it, too, drawing on their combined 27 years of firsthand observations and experiences from being in "the room" where it happens. Bill was vice president of digital media, founded and led Amazon Music, Amazon Video, Amazon Studios; and Colin started out in the software group, was a technical vice president, and then, notably, was one of Jeff Bezos' earliest shadows -- the shadow before him was in fact Andy Jassy, president and CEO of Amazon Web Services (soon to be CEO of Amazon).
The two share not only the early inside stories behind (ultimately) big business moves like AWS, Kindle, Prime -- but more importantly, the leadership principles, decision making practices, AND operational processes that got them there. Because "working backwards" is much, much more than being obsessed with your customers, or having company values like "are right a lot”, "insist on the highest standards", "think big", "bias for action", and more. The discussion also touches on hot-topic debates like to lean-MVP-or-not-to-be; the internal API economy; do you even need a chief product officer; and if you need less, not more, coordination as you grow. Can startups really be like Amazon? Yes: and it comes down to how leaders, organizations, and people at all levels decide, build, invent... using the power of narratives and more.
---
The views expressed here are those of the AH Capital Management, L.L.C. (“a16z”) personnel quoted and are not the views of a16z or its affiliates. Certain information contained in here has been obtained from third-party sources, including from portfolio companies of funds managed by a16z. While taken from sources believed to be reliable, a16z has not independently verified such information and makes no representations about the enduring accuracy of the information or its appropriateness for a given situation. In addition, this content may include third-party advertisements; a16z has not reviewed such advertisements and does not endorse any advertising content contained therein.
This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making a decision to invest in any fund managed by a16z. (An offering to invest in an a16z fund will be made only by the private placement memorandum, subscription agreement, and other relevant documentation of any such fund and should be read in their entirety.) Any investments or portfolio companies mentioned, referred to, or described are not representative of all investments in vehicles managed by a16z, and there can be no assurance that the investments will be profitable or that other investments made in the future will have similar characteristics or results. A list of investments made by funds managed by Andreessen Horowitz (excluding investments for which the issuer has not provided permission for a16z to disclose publicly as well as unannounced investments in publicly traded digital assets) is available at https://a16z.com/investments/.
Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. Please see https://a16z.com/disclosures for additional important information.
Stay Updated:
Find a16z on YouTube: YouTube
Find a16z on X
Find a16z on LinkedIn
Listen to the a16z Show on Spotify
Listen to the a16z Show on Apple Podcasts
Follow our host: https://twitter.com/eriktorenberg
Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.
