Instead of creating a product then finding customers, Amazon asks "What does the customer need?" and works toward the product.
✅Customer need --> Create product
❌Create product --> Find customer
1/ Amazon is famous for its writing culture:
• "Mock press releases / FAQs" for new product pitches
• "6-page memos" instead of Powerpoint
Two former Amazon execs wrote a book called "Working Backwards" detailing the philosophy.
Here are some insights 🧵
Instead of creating a product then finding customers, Amazon asks "What does the customer need?" and works toward the product.
✅Customer need --> Create product
❌Create product --> Find customer
To determine if the customer need makes biz sense, employees write a press release:
• What problem is the new product solving
• Why it's better than existing options
To persuade a customer, the document has to be jargon-free and tell a story.
You don't write a press release for an incremental improvements.
Creating a product worthy of a press release means really solving a customer problem and going after markets with large TAMs.
Addressing every potential customer question can help identify hurdles to getting something to market...and also uncover opportunities.
Amazon famously has execs write 6-page narrative-driven memos instead of Powerpoint decks.
The practice began in 2004 when Jeff Bezos noticed nothing was being decided after 60-minute long meetings with his inner circle (AKA S-Team).
People read faster than people can talk meaning that -- for a 60 minute meeting -- reading a memo before discussing an issue conveys much more information (10x more per one of the book's authors).
Narratives are also more memorable.
In Powerpoint presentations, a great presenter can sell a bad idea. Conversely, a poor presenter may be unable to sell a great idea.
In a memo, the idea wins.
Powerpoint's hierarchical (and sequential) structure is not ideal to address complex issues.
Narrative-driven memos can be multi-causal and provide a 360-degree view on a topic.
If every meeting participant spends the first 1/3rd of a 60-minute meeting reading, there is a huge transfer of information.
It's a forcing function to get everyone on the same page and makes the remaining 40-minutes high quality.
Whether or not one agrees with everything in a memo, focussed reading of a document provides a shared knowledge base with which to begin discussions.
Further, someone can quickly "get up to speed" by reading past memos.
Powerpoint and Excel are great at communicating data.
However, at the executive level, you are making complex decisions and leading. This requires a mastery of narrative (AKA memo writing) to persuade stakeholders.
At 20 employees, Bezos could be in every meeting. At 1k+ employees, he needed a way to “inject his lens of thinking” into the organization.
An archive of writing helps encode the thinking across the company (e.g. Annual letters)
For more on the book, check this a16z podcast:
https://t.co/Gz876YZs1b
Here's the book:
https://t.co/qTzLMrCCYw
https://t.co/TnEdX81mCo
(1/10) Lots of coverage on Netflix's culture.
— \U0001d683\U0001d69b\U0001d69e\U0001d697\U0001d690 \U0001d67f\U0001d691\U0001d68a\U0001d697 \U0001f1e8\U0001f1e6 (@TrungTPhan) September 8, 2020
The company has a cutthroat reputation and willingness to pay top dollar for superstar talent (AKA "100x engineers").
The reason why is explained in these 6 slides.
And it has to do with creativity and complexity. \U0001f447\U0001f447 pic.twitter.com/Htt5PtsLhW
More from 𝚃𝚛𝚞𝚗𝚐 𝙿𝚑𝚊𝚗 🇨🇦
The Wall Street Bets due diligence on Wendy’s is gold.
The catalysts are:
◻️ The release of a new summer salad
◻️ The @Wendys Twitter account, which has mastered “meta pragmatic roasting” (which is effective with younger people)
◻️ The fact it literally sells chicken tendies
OP:
Here’s a more fundamentals-driven analysis of Wendy’s
https://t.co/A2k19S9M7J
😂😂😂
Further Wendy’s analysis from @CliffordAsness !!
The catalysts are:
◻️ The release of a new summer salad
◻️ The @Wendys Twitter account, which has mastered “meta pragmatic roasting” (which is effective with younger people)
◻️ The fact it literally sells chicken tendies
OP:
Here’s a more fundamentals-driven analysis of Wendy’s
https://t.co/A2k19S9M7J
😂😂😂
\u201cThe name of the company is Wendy\u2019s International $WEN. It is a cutting edge high tech firm out of rural Ohio that is awaiting imminent patent approval on the next generation of summer salads that have both huge military and civilian applications.\u201d pic.twitter.com/qmk4hkKL3N
— u/1ronyman (@1ronyman1) June 8, 2021
Further Wendy’s analysis from @CliffordAsness !!
More from Culture
For my book, I interviewed Texan Republicans, Democrats, oil guys + clean energy pioneers. Texas was once leading in wind energy, with GOP support. Now we get lies, from the Gov on down on renewables. What happened?
Lessons from Short Circuiting Policy https://t.co/KtxaBci5oC 🧵
Texas' challenges are not from "learning too many renewable energy lessons from California.” - Rep. Crenshaw
Texas passed its first renewable energy target in 1999, 3 years before California. The law was signed by, Gov. George W. Bush — you may recall he’s a Republican.
Gov. Bush was so proud of Texas’ leadership on wind energy, that he campaigned on it when running for President in 2000.
The "bill he signed in 1999 will make Texas the country’s largest market for renewable energy by 2009."
https://t.co/T4dKZ5qGnA
In 2005, Texas passed another big wind energy law, which included $7 billion for transmission.
It was sponsored by Republican state Senator Troy Fraser and signed by Republican Gov. Rick
With Gov. Abbott going on TV this week and lying, blaming the boogeyman “Green New Deal” and wind turbines for Texas’ current crisis, GOP leadership on renewables feels like ancient history.
What happened over the past 15
Lessons from Short Circuiting Policy https://t.co/KtxaBci5oC 🧵
Texas' challenges are not from "learning too many renewable energy lessons from California.” - Rep. Crenshaw
Texas passed its first renewable energy target in 1999, 3 years before California. The law was signed by, Gov. George W. Bush — you may recall he’s a Republican.
Gov. Bush was so proud of Texas’ leadership on wind energy, that he campaigned on it when running for President in 2000.
The "bill he signed in 1999 will make Texas the country’s largest market for renewable energy by 2009."
https://t.co/T4dKZ5qGnA
In 2005, Texas passed another big wind energy law, which included $7 billion for transmission.
It was sponsored by Republican state Senator Troy Fraser and signed by Republican Gov. Rick
With Gov. Abbott going on TV this week and lying, blaming the boogeyman “Green New Deal” and wind turbines for Texas’ current crisis, GOP leadership on renewables feels like ancient history.
What happened over the past 15
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We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
As a dean of a major academic institution, I could not have said this. But I will now. Requiring such statements in applications for appointments and promotions is an affront to academic freedom, and diminishes the true value of diversity, equity of inclusion by trivializing it. https://t.co/NfcI5VLODi
— Jeffrey Flier (@jflier) November 10, 2018
We know that elite institutions like the one Flier was in (partial) charge of rely on irrelevant status markers like private school education, whiteness, legacy, and ability to charm an old white guy at an interview.
Harvard's discriminatory policies are becoming increasingly well known, across the political spectrum (see, e.g., the recent lawsuit on discrimination against East Asian applications.)
It's refreshing to hear a senior administrator admits to personally opposing policies that attempt to remedy these basic flaws. These are flaws that harm his institution's ability to do cutting-edge research and to serve the public.
Harvard is being eclipsed by institutions that have different ideas about how to run a 21st Century institution. Stanford, for one; the UC system; the "public Ivys".
