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Lenny's Podcast: Product | Growth | Career

Unpacking Amazon’s unique ways of working | Bill Carr (author of Working Backwards)

Lenny's Podcast: Product | Growth | Career

Lenny Rachitsky

Technology, Business, Entrepreneurship

51.5K Ratings

🗓️ 2 November 2023

⏱️ 93 minutes

🧾️ Download transcript

Summary

Bill Carr is the co-author of Working Backwards: Insights, Stories, and Secrets from Inside Amazon. With a background at Amazon of over 15 years, Bill played a pivotal role in shaping the company’s global digital music and video ventures, including Amazon Music, Prime Video, and Amazon Studios. After Amazon, Bill was an Executive in Residence with Maveron, an early-stage, consumer-only venture capital firm. He later served as the chief operating officer of OfferUp, the largest mobile marketplace for local buyers and sellers in the U.S. Today he’s the co-founder of Working Backwards LLC, where he helps companies implement Amazon’s time-tested management strategies. In this episode, we discuss:

• What exactly “working backwards” is, and how you do it

• Why having “single-threaded leaders” is so effective

• Inside Amazon’s intense product review process

• How to actually follow the “disagree and commit” principle

• The thinking behind the principle “Leaders are right, a lot”

• Input vs. output metrics

• Fostering a culture of risk-taking and innovation

• The role and responsibilities of a “bar raiser” in your hiring, and how it significantly improves the success rate of new hires

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Find the full transcript at: https://www.lennyspodcast.com/unpacking-amazons-unique-ways-of-working-bill-carr-author-of-working-backwards/

Where to find Bill Carr:

• X: https://twitter.com/BillCarr89

• LinkedIn: https://www.linkedin.com/in/bill-carr/

• Website: https://www.workingbackwards.com/

Where to find Lenny:

• Newsletter: https://www.lennysnewsletter.com

• X: https://twitter.com/lennysan

• LinkedIn: https://www.linkedin.com/in/lennyrachitsky/

In this episode, we cover:

(00:00) Bill’s background

(04:26) Amazon’s workplace evolution

(09:54) Amazon’s “fitness function”

(11:44) Single-threaded leadership

(18:07) Implementing a program orientation with single-threaded leadership

(20:16) The GM model vs. single-threaded leadership

(21:31) Functional countermeasures needed for single-threaded leadership

(25:22) Embracing the “disagree and commit” principle

(30:22) Understanding disagreements

(32:41) Deciphering Amazon’s “Leaders are right, a lot” principle

(35:25) An explanation of the working backwards framework

(41:16) PR FAQ process: Amazon’s innovation engine

(44:47) Deconstructing the PR FAQ structure

(43:49) The concentric circle model for sharing PR FAQs

(44:55) The customer problem-solution statement

(47:52) Create a product funnel, not a product tunnel

(51:19) How Amazon promotes action vs. talk

(54:35) Amazon’s flywheel and input metrics

(1:00:51) Signs you’ve got a good input metric

(1:04:23) How mistakes can still be made with working backwards

(1:06:54) Why disagreements aren’t necessarily signs products will fail

(1:08:02) Examples of failed Amazon projects

(1:09:55) Cultivating risk-taking and accepting failure

(1:13:57) Amazon’s “bar-raiser” practice for hiring

(1:18:21) Selecting Amazon’s bar raisers

(1:20:41) Advice on implementing practices from Working Backwards

(1:23:10) Bill’s work as an advisor

(1:26:05) Lightning round

Referenced:

Working Backwards: Insights, Stories, and Secrets from Inside Amazon: https://www.amazon.com/Working-Backwards-Insights-Stories-Secrets/dp/1250267595

• Jeff Bezos on X: https://twitter.com/jeffbezos

• D.E. Shaw: https://www.deshaw.com/

• Eric Ries’s website: https://theleanstartup.com/

• GM business model: https://fourweekmba.com/general-motors-business-model/

• Rick Dalzell on LinkedIn: https://www.linkedin.com/in/richarddalzell/

• The Effective Decision by Peter F. Drucker: https://hbr.org/1967/01/the-effective-decision

• Template: Working Backwards PR FAQ: https://www.workingbackwards.com/resources/working-backwards-pr-faq

Good to Great: Why Some Companies Make the Leap and Others Don’t: https://www.amazon.com/Good-Great-Some-Companies-Others/dp/0066620996

• The Amazon flywheel: https://feedvisor.com/resources/amazon-trends/amazon-flywheel-explained/

• Sixsigma: https://www.6sigma.us/

Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries: https://www.amazon.com/Loonshots-Nurture-Diseases-Transform-Industries/dp/1250185963

• Andy Jassy on LinkedIn: https://www.linkedin.com/in/andy-jassy-8b1615/

• Implementing Amazon’s Bar Raiser Process in Hiring: A Quick Guide: https://www.barraiser.com/blogs/implementing-amazons-bar-raiser-process-in-hiring

• Microspeak: The As-Appropriate (AA) interviewer: https://devblogs.microsoft.com/oldnewthing/20231017-00/?p=108897

The Practice of Management: https://www.amazon.com/Practice-Management-Peter-F-Drucker/dp/0060878975

The Effective Executive: The Definitive Guide to Getting the Right Things Done: https://www.amazon.com/Effective-Executive-Definitive-Harperbusiness-Essentials/dp/0060833459

Steve Jobs: https://www.amazon.com/Steve-Jobs-Walter-Isaacson/dp/1451648537

Seveneves: https://www.amazon.com/Seveneves-Neal-Stephenson/dp/0062334514

A Gentleman in Moscow: https://www.amazon.com/A-Gentleman-in-Moscow/dp/0143110438

Dune on Prime Video: https://www.amazon.com/Dune-Timoth%C3%A9e-Chalamet/dp/B09LJXY4PH

A Spy Among Friends: https://www.imdb.com/title/tt15565872/

• Zipp 303 Firecrest tubeless disc brake: https://www.sram.com/en/zipp/models/wh-303-ftld-a1

The Fifth Discipline: The Art & Practice of the Learning Organization: https://www.amazon.com/Fifth-Discipline-Practice-Learning-Organization/dp/0385517254

Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email [email protected].

Lenny may be an investor in the companies discussed.



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Transcript

Click on a timestamp to play from that location

0:00.0

as Jeff would say, we took it as an article of faith.

0:02.9

If we served customers well, if we prioritized customers

0:07.4

and delivered for them, things like sales,

0:10.3

things like revenue and active customers, and things like the share price and free cash flow would follow.

0:15.4

So therefore when we're making a decision, thinking about a problem,

0:20.1

we're going to start with what's best for the customer and then come backward from there

0:24.7

That's how that informs like what's the work you have to do to then create this new

0:29.2

Solution for customers

0:33.0

Today my guest is Bill Carr.

0:35.0

Bill is the co-author of the book Working Backwards,

0:38.0

which is a synthesis of the biggest lessons that Bill and his co-author learned

0:42.0

from their many years at Amazon.

0:44.6

Bill joined Amazon just five years after it was founded, stayed there for 15 years where he worked

0:49.8

on the books business, and then as VP of digital media launched and managed the company's

0:54.9

global digital music and video businesses including Amazon music prime video and

1:00.1

Amazon Studios after Amazon Bill was an executive in residence at Maveron, an early stage VC firm, then chief operating officer at offerup, and these days Bill runs a consulting firm called Working Backwards LLC where he and his co-author

1:15.1

help growth stage and public companies implement the many practices developed at

1:19.4

Amazon. In our conversation we go many levels deep on how to actually implement a number of the practices and ways of working that helped Amazon become the success that it is today,

1:29.0

including the process of how to actually work backwards, how to organize your team with a single

1:34.8

threaded leader, how to divide up your metrics into input and output metrics, how to practice

1:40.7

disagreeing and committing, how to implement the bar raiser program in your hiring

1:45.0

process, and so much more. Huge thank you to Ethan Evans for making this episode possible

...

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