Amazon’s new CEO Andy Jassy has a unique set of leadership principles. He is a leader who encourages employees to be innovative and push boundaries.
Unlike Jeff Bezos, who became a larger-than-life figure with a cult following, Jassy remains modest. He still drives an old Jeep, avoids the limelight and refuses to fly on private jets.
1. Customer Obsession
Customer obsession is the ability to put your customers first, always. This means that you consider their needs and wants above all else, even when it may seem like a costly or unreasonable move to others. Companies that prioritize customer obsession often innovate more quickly, and they make decisions through a lens of how those choices will impact their customers.
Jassy is well aware that his company’s culture must evolve in order to keep up with the company’s rapid growth. As such, he has taken pains to respect the traditions and values that have made Amazon successful while also pushing for new ideas, new approaches and new ways of working. This is not an easy balance to strike, and it requires that new CEOs take a “Goldilocks approach” that strikes the right tone between rushing headlong into change and preserving the status quo. The leaders who get this right include Ebay’s Pierre Omidyar, Home Depot’s Bernard Marcus and Arthur Blank and Microsoft’s Steve Ballmer, among others.
In fact, it’s not uncommon for new CEOs to hire experienced executives as part of their “S-team” who can help guide them as they develop the company’s culture. This strategy is a surefire way to ensure that a new leader can effectively meld the company’s legacy with their own vision for the future.
As a result, many Amazon employees describe Jassy as a very caring boss who is not afraid to show his emotions in front of staff. He starts and ends meetings with a sincere thank you, and he regularly seeks out the opinions of people in his team who may not be as vocal as others. In addition, he often cites his encyclopedic knowledge of sports, music and indie movies to connect with staffers.
2. Invent and Simplify
The best CEOs are constantly inventing and simplifying. They recognize that a complex organization can be confusing and ineffective, even if it’s well-oiled. And so, they create a culture that encourages experimentation, learning from failure and taking risks.
Jassy has the unenviable task of continuing Amazon’s record of invention, from cloud-computing to smart speakers and its heavily automated warehouses that allow one-day shipping. He also must lead the company’s response to regulatory inquiries around the world and the public debate about whether big U.S. tech companies have become too powerful.
To achieve these goals, he must inspire the more than 1.3 million employees to work at a fast pace. That might mean pushing back on internal bureaucracy, or establishing more frequent virtual meetings. Or it could mean embracing a philosophy known as Andon Cord, the Japanese just-in-time manufacturing technique that teaches workers to stop production if they spot any problems on the line.
He may also have to rethink the company’s 14 leadership principles, especially two that emphasize how Amazon leaders should consider employee and societal welfare in their decisions. That’s a tough shift for a leader who spent his career promoting the benefits of self-serving growth.
Regardless of the challenges, Jassy has a track record of success at Amazon and the confidence of the board. He is a thoughtful, focused executive who has built strong relationships inside the company and outside it. He’s the kind of leader that other companies seek out and want to follow. In the end, that will make him an excellent choice to lead Amazon into its next chapter. The company’s future depends on it. —Joel Rossman is a Bloomberg contributor.
3. Invest in People
While Jassy may be less hands-on than Bezos, he still gives his teams wide latitude and is deeply involved in the company’s day-to-day. He edits press releases and marketing materials, has strong opinions on where to set prices and monitors Twitter. He also hosts friends and coworkers for sports viewing parties in his basement bar and runs basketball pools and fantasy football leagues. He is also heavily invested in Amazon’s charitable endeavors, donating to civic causes and serving on city council committees.
While these are good traits to have, there is a danger in having too much ownership. In the case of a new CEO, it can create a culture of “It’s mine” or “it’s all about me.” Jassy will likely need to carefully balance this to honor his predecessor, and build on what has worked for Amazon while finding ways to evolve and grow.
In a recent video, Jassy described how competitive youth tennis taught him to take chances and to move on quickly after losing, even when it hurt. He says this lesson applies to both life and business. As a leader, he wants to give people the space to experiment and to fail, while holding them accountable for their results.
Another leadership principle that Jassy has embraced is “have backbone; disagree and commit.” He believes leaders are obligated to respectfully challenge decisions when they think they might be wrong, even if it’s uncomfortable or exhausting. And once they decide on a direction, they should be tenacious in their commitment. This is a powerful principle for any leader, regardless of what industry they are in. And it’s one of the ways that Amazon has positioned itself as a truly unique workplace.
4. Have Backbone; Disagree and Commit
Whether it’s a project or company, the best leaders are not afraid to go way beyond what some within and outside their organization may believe is possible. They know that thinking big is a way to inspire others and provide bold direction.
But that doesn’t mean they can ignore the concerns of those closest to them. Leaders need to be able to take a step back and view problems with fresh eyes, so they can identify new solutions. And they need to be willing to admit when they are wrong.
For example, when homelessness became an all-consuming civic issue in Seattle, Jassy and Amazon employees joined a local council member on a one-night count to assess the scope of the problem. It’s a small, but important, step for Jassy and the company to show they care about the city and its residents.
When a new CEO comes in and tries to radically change things, it’s usually a recipe for disaster. That’s why it’s critical for a successful leader to honor their predecessor, build on what’s working and move forward with just the right posture.
And that’s what Jassy has done with Bezos at Amazon, but he also had to find the right balance as he took over AWS in 2013. He gives teams wide latitude to steer their own course, but he edits press releases and marketing materials and helps name products. He also makes sure he’s copied on emails about service disruptions and frequently checks in with the Twitter feed to see what people are saying. He’s a hands-on CEO who keeps his ear to the ground.
5. Deliver Results
Jassy knows that leadership requires delivering results, even when those results aren’t ideal. He’s made this clear in his first memo to employees, where he says “we’ll have some things that don’t work out well,” but that they will be better in the future because of the decisions we make and the hard work we put in.”
He is known to push his teams to deliver. During his first meeting with Amazon Web Services staff, he asked the team, “How would you feel if this project went 10 times bigger?” Jassy also has a habit of taking action to solve important problems. For example, when homelessness became an all-consuming civic issue in his native Seattle, he joined a local council member on a one-night count of the homeless to help assess the problem and take action.
But he’s also shown a willingness to change course when necessary. He’s rolled back on some work-from-home policies and brought people into the office, and he has been open to the idea that not all meetings can be held in person.
These leadership principles have been in place since the company’s earliest days, and they are a big part of what makes Amazon tick. But they will be tested in the months and years ahead as Jassy takes over as CEO. His job will be to change Amazon enough to appease its loudest critics, but not lose the qualities that have propelled it so far. Those leadership principles may just be the guide he needs. Become an Insider to read more stories like this. Plus, get essential business news delivered to your inbox each morning. It’s free! Click here to subscribe.
