Working Backwards

Core Amazon Operating Principles

1. Hiring Process

Amazon employs an eight-step “Bar Raiser” approach to minimize bias and strengthen recruitment. The methodology incorporates detailed position specifications, application screening, behavioral assessments, documented evaluations, background verification, and consistent candidate communication.

2. Single-Threaded Teams

Autonomous teams limited to ten members drive innovation more effectively. This structure eliminates cross-functional bottlenecks and grants teams ownership of their initiatives.

3. Written Narratives Over PowerPoint

Narrative documents outperform slide presentations by requiring sharper thinking and delivering greater information density, thereby strengthening organizational communication.

4. Customer-First Product Development

The process begins with drafting a press release articulating the target customer experience, ensuring customer priorities guide innovation and reducing costly pivots.

5. Controllable Input Metrics

Amazon emphasizes the flywheel model, tracking input metrics—rather than output metrics—that correlate with customer satisfaction and organizational growth.

6. Frugality & Strategic Investment

Resource discipline guides spending toward customer value. Once strategy solidifies, Amazon commits substantial capital to execution.

7. Decision Classification

Type 1 decisions are irreversible and require deliberation; Type 2 decisions are reversible and warrant expedited resolution.

8. Value Chain Evolution

Amazon pivoted competitive advantage from physical media to digital offerings through consumer intelligence and service innovation (e.g., Prime).