Showing posts with label Jeff Bezos. Show all posts
Showing posts with label Jeff Bezos. Show all posts

Wednesday, August 26, 2015

The Point of the Amazon NY Times Article

There has been a lot of conversation about the recent New York Times piece on Amazon.com. While there has been some negative backlash from Bezos and insiders at Amazon, it appears, based on other accounts that the author's perspective on the culture at Amazon is closer to reality than fiction.


But as this Fast Company article points out, why has this article about work culture in the tech industry created so much buzz? Isn't it true that Amazon's culture just mirrors that of silicon valley or other great technology centers in the United States?

For many in the business press it is seen as yet another example of a 'win at all costs' culture that typically drives disengagement and an unhappy workforce. Typically I would decry the kind of behavior and attitudes embodied in the Amazon culture. For example, take a look at this early quote in the article:
At Amazon, workers are encouraged to tear apart one another’s ideas in meetings, toil long and late (emails arrive past midnight, followed by text messages asking why they were not answered), and held to standards that the company boasts are “unreasonably high.” The internal phone directory instructs colleagues on how to send secret feedback to one another’s bosses. Employees say it is frequently used to sabotage others.
This is the kind of fear inducing behavior that creates corporate politics run amok - similar to what I discuss in this my Slideshare on corporate politics.

However, I have a different perspective on this particular story. Understand that I am not condoning this type of behavior or even the culture that has been created but it can make sense for a company like Amazon. Take a look at this quote from the story about the conflict that employees feel about the culture:
However, more than 100 current and former Amazonians described how they tried to reconcile the sometimes-punishing aspects of their workplace with what many called its thrilling power to create.
I contend that Amazon has actually done a wonderful job of creating alignment with the culture, hiring & people practices and the brand they are creating in the eyes of their customers.

In my forthcoming book, Corporate Bravery, I argue that one of the hallmarks of fearful vs brave organizations is alignment of these three aspects of culture.

According to the article Amazon has very clearly defined core values (of which they are quizzed and expected to be able to recite and they have a clearly aligned hiring process as shown in the following two quotes:
To be the best Amazonians they can be, they should be guided by the leadership principles, 14 rules inscribed on handy laminated cards. When quizzed days later, those with perfect scores earn a virtual award proclaiming, “I’m Peculiar” — the company’s proud phrase for overturning workplace conventions.
The process begins when Amazon’s legions of recruiters identify thousands of job prospects each year, who face extra screening by “bar raisers,” star employees and part-time interviewers charged with ensuring that only the best are hired.

Which leads to a process where employees begin to internalize the culture. According to one person interviewed for the article "she and other workers had no shortage of career options but said they had internalized Amazon’s priorities."
Again, I am not advocating Amazon's culture or the individual aspects of the culture that has made it what it is today. I am just saying that the article paints the picture of a company that has one of the most aligned core values, hiring practices and communications that I have ever seen.

Where Amazon runs into criticism (and the article chronicles), is in the moral / human cost of this culture.  If you could only have this type of alignment that values the employee as a human and recognizes their own individuality (coincidentally another fear factor chronicled in Corporate Bravery) then you have a great example of building a corporate culture.

Thursday, October 31, 2013

Amazon's Use of Fear

A recent issue of BusinessWeek had a cover story on Jeff Bezos of Amazon.  The article is actually an excerpt of a book on Bezos by BusinessWeek author, Brad Stone.  In addition to being a good historical account of the rise of the company that may actually give Walmart a run for its money it also had a feel good moment by finding Jeff's biological dad and starting the process of reuniting the two men.

While there were a lot of interesting tidbits in the article the thing I found most interesting was Amazon's use (it appears driven by Bezos) of fear as a competitive weapon.


As I read the article I see 4 ways that Amazon uses fear and each are outlined below:

1. Much was made early in the article about the general communications protocol within Amazon.  In addition to the discussion of the infamous position papers that each meeting is required to begin with, is how the CEO's '?' email.  While the intent of the emails are rooted in a relentless drive for customer satisfaction, it appears to have fear-based consequences.  I have been on the receiving end of these types of communications and I am sure if CEOs knew the type & extent of hand-wringing that go on around these types of communication they would think twice before sending.  From the article:
When Amazon employees get a Bezos question mark e-mail, they react as though they’ve discovered a ticking bomb. They’ve typically got a few hours to solve whatever issue the CEO has flagged and prepare a thorough explanation for how it occurred, a response that will be reviewed by a succession of managers before the answer is presented to Bezos himself.

2. Amazon's response to the competition is an area that isn't exactly driven by fear or hoping to capitalize on fear but it is worth noting their approach.  The article focuses on an internal team at Amazon known as the Competitive Intelligence Team.  It is a novel approach of focused, dedicated resources monitoring the activities of the competition.  It is smart to monitor what the competition is doing as long as you can maintain your corporate identity and not just react out of fear.  It appears Amazon understands this balance and the article describes the team as:
focused in part on buying large volumes of merchandise from other online retailers and measuring the quality and speed of their services—how easy it is to buy, how fast the shipping is, and so forth. The mandate is to investigate whether any rival is doing a better job than Amazon and then present the data to a committee of Bezos and other senior executives, who ensure that the company addresses any emerging threat and catches up quickly.

3. The response to the results of this team is where Amazon begins to use fear as a competitive weapon.  The example that BusinessWeek gives is of Diapers.com.  Amazon noticed that they were having a hard time competing with Diapers.com in this particular segment so they pressured and coerced the ownership of Diapers.com to sell to them at $60 million less than what Wal-mart was willing to offer.  The quote from the owners was the following
The [Diapers.com] board convened to discuss the possibility of letting the Amazon deal expire and then resuming negotiations with Wal-Mart. But by then, Bezos’s Khrushchev-like willingness to use the thermonuclear option had had its intended effect. The [Diapers.com] executives stuck with Amazon, largely out of fear. The deal was announced on Nov. 8, 2010.
4.  Amazon doesn't just go after the competition and use threats to get what it wants, it also goes after ex-employees with threats and fear to get what it wants.
Even leaving Amazon can be a combative process—the company is not above sending letters threatening legal action if an employee takes a similar job at a competitor. Masud, who left Amazon for EBay (EBAY) in 2010, received such a threat. (EBay resolved the matter privately.)