Integrator

Amazon’s 14 Leadership Principles

December 17, 2024

This article shares excerpts from – The Amazon Way: Amazon’s 14 Leadership Principles and their key insights. Author – John Rossman.

These fourteen principles helped Amazon grow from a small bookstore on the internet to one of the world’s most influential companies. These same principles can help you build your business, put customers first, think ahead and innovate.

First Principle

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.

Second Principle

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.”

Third Principle

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.” As we do new things, we accept that we may be misunderstood for long periods of time.

Fourth Principle

ARE RIGHT, A LOT

Leaders are right a lot. They have strong judgment and good instincts. They seek diverse perspectives and work to disconfirm their beliefs.

Fifth Principle

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.

Sixth Principle

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. We work on behalf of our people to invent mechanisms like Career Choice.

Seventh Principle

INSIST ON THE HIGHEST STANDARDS

Leaders have relentlessly high standards—many 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. Leaders ensure that defects do not get sent down the line and that problems are fixed so they stay fixed.

Eighth Principle

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.

Ninth Principle

BIAS FOR ACTION

Speed matters in business. Many decisions and actions are reversible and do not need extensive study. We value calculated risk-taking.

Tenth Principle

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.

Eleventh Principle

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.

Twelfth Principle

DIVE DEEP

Leaders operate at all levels, stay connected to the details, audit frequently, and are skeptical when metrics and anecdotes differ. No task is beneath them.

Thirteenth Principle

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. They do not compromise for the sake of social cohesion. Once a decision is determined, they commit wholly.

Fourteenth Principle

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.

The fourteen principles are completely practical. Even if you are running a small manufacturing unit or managing your family’s distribution business, you can use them.

If you’re curious to learn more and see how these principles can help you tackle your own business challenges, check out “The Amazon Way.”

Wishing you all the very best for 2025.

Tamizh selvaN Dinakaran

About the Curator:

Tamizh Selvan Dinakaran has over 25 years of experience helping businesses grow through digital marketing, particularly in the distribution and manufacturing sectors. He currently leads customer education at DCKAP, where he creates programs designed to help customers succeed in deriving value from DCKAP’s products. Previously, as DCKAP’s Director of Marketing, he focused on increasing brand awareness and generating leads through effective content marketing. Tamizh specializes in B2B content marketing, marketing operations, and customer success.

Knowledge Base

Onboarding Guide

Video Tutorials

Documentation

ERP Integration made simple for Distributors.

Transform your commerce journey by creating an integrated experience for employees and customers.