Pt 2 - 9 Lessons From Jeff Bezos' Only Podcast Appearance

Lex Fridman recently interviewed Jeff Bezos on his first-ever podcast appearance. The episode is a masterclass on decision-making, overcoming human nature's inherent flaws, and the art and science of leading high-performing organizations. 

We explored the first 3 takeaways last week, here is part 2: 

9 Lessons From Jeff Bezos' Only Podcast Appearance 

Part 2/3

****

4. Compromise and Stubbornness Are Terrible Ways to Make Decisions

When getting closer to the truth is possible, compromise is the easy path.

“[T]he advantage of compromise as a resolution mechanism is that it’s low energy, but it doesn’t lead to truth. And so in things like the height of the ceiling where truth is a noble thing, you shouldn’t allow compromise to be used when you can know the truth.”

Don’t let energy stand in the way of important truths.

Stubbornness is worse.

Let’s say two executives disagree and they just have a war of attrition, and whichever one gets exhausted first capitulates to the other one. Again, you haven’t arrived at truth and this is very demoralizing. I try to ask people on my team and say, “Never get to a point where you are resolving something by who gets exhausted first.

You want to try to get as close to truth as possible. Exhausting the other person is not truth seeking.”

Seek facilitation and a pathway to get at a clearer truth.

Where are you falling victim to these two methods of decision-making?

****

5. What is Not Going to Change in the Next 10 Years?

That’s the strategic question you need to ask.

“Think about the things that are not going to change over 10 years. And those are probably the big things… 

So I know in our retail business at Amazon, 10 years from now, customers are still going to want low prices. I know they’re still going to want fast delivery, and I just know they’re still going to want big selection. So it’s impossible to imagine a scenario 10 years from now where a customer says, “I love Amazon, I just wish the prices were a little higher,” or, “I love Amazon, I just wish you delivered a little more slowly.” So when you identify the big things you can tell they’re worth putting energy into because they’re stable in time.”

Low Prices

Big Selection

Fast Delivery

Those are Amazon’s three. 

What are yours?

*****

6. Where is the Team Working on the Paper Cuts?

There are large strategic decisions to execute.

There are everyday operations to execute.

Where is the team working on the paper cuts? Working on the small and valuable incremental improvements?

1-Click buying was a paper cut. Removing the friction was exceptionally valuable to Amazon. It was also a paper cut. 

And if you don’t have that third team (or if you’re a small business, the dedicated time for members of the team) to work on the paper cuts, then they will never be addressed.

And you will die a death of a thousand paper cuts.

Do you have your team identified?

---

Ready to Take Your Business to the Next Level?