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Jeff Bezos recounts the time he called Amazon’s customer service number mid-meeting to prove a metric was wrong In the clip below, Jeff tells a story from the early days of Amazon when their metrics said customers waited less than 60 seconds after calling customer service. Yet this conflicted...

117,580 просмотров • 5 месяцев назад •via X (Twitter)

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Jeff Bezos had a rule at Amazon. When the data and the anecdotes disagree, the anecdotes are usually right. He proved it in the most uncomfortable way. During a meeting, his team showed him the numbers. Customer service wait times were under 60 seconds. The dashboard looked clean. The metrics looked fine. But Bezos kept hearing complaints. Real customers saying they were waiting forever to get through. His team pushed back. The data says everything is fine. So Bezos picked up the phone. Right there In the middle of the meeting. Dialed Amazon's 1 800 customer service number. Put it on speaker. And they all just sat there. In silence 60 seconds passed. Nothing 2 minutes Nothing 5 minutes Nothing More than 10 minutes before someone picked up. 10x longer than the dashboard said. Nobody in that room said a word. He didn't yell. He didn't fire anyone. He just let the silence do the talking. That one phone call set off a chain reaction. They rebuilt how they measured wait times entirely. The old metric wasn't wrong. It was measuring the wrong thing. And that's the part nobody talks about. Bad data doesn't look like bad data. It looks like a clean dashboard. It looks like a green number. It looks like everything is pretty fine. The most dangerous metric in your business isn't the one that's red. It's the one that's pretty good to go when it shouldn't be. Your customers are telling you something right now. It's probably not showing up in your reports. The only way to find it is to pick up the phone, doing the experiment, learning/finding yourself. You have to seek truth!! Video Credit: Lex Fridman Podcast

Sufyan Maan, M.Eng

13,428 просмотров • 4 месяцев назад

Jeff Bezos explains Amazon’s process for expanding into new products like Kindle and AWS “I would definitely advise a small startup company to be as narrow and as focused as is possible to be. If you look at the original Amazon business plan, there was no hint of anything other than books in it… I wanted to build an online bookstore, and that was it.” But the online bookstore worked better than they thought it would. So Amazon launched music, and that worked better than they thought. Then video, and that worked too. So Jeff sent an email to customers: “I picked about 1,000 customers and I said, besides the things we sell today - books, music, and video - what would you like to see us sell? And the list came back incredibly long-tailed… So it’s been kind of one foot in front of the other.” As Jeff explains, Amazon expands into new businesses in two ways: “One is from a customer need. We will work from a customer need to the skills that we need. And the other one is skills forward: from a skillset we have to a new set of customers.” Kindle is an example of a customer need - Amazon had no hardware team at the time, but to make sure they didn’t miss the transition to ebooks, they built one. Amazon Web Services (AWS) is an example of skills-forward: “We had probably more distributed computing expertise than anybody else in the world because of transactions. Transaction systems are so complicated and hard to build, and we had a service-oriented architecture of great complexity - probably before anybody else. Because we were doing that, we could see the future a little bit and decided to build AWS, which has turned into a huge business in its own right.” Jeff concludes: “Business is very situational. Rules of thumb are good, but they have to be applied to the right situation. Sometimes the old maxim that you should stick to the knitting is correct, but sometimes it’s wrong. And a senior leader’s job is to figure out: Which situation are you in?” Video source: Business Insider (2014)

Startup Archive

63,593 просмотров • 11 месяцев назад

Jeff Bezos: “Any high-performing organization has to have mechanisms and a culture that supports truth telling” As Jeff explains in the clip below: “Truths often don’t want to be heard. Important truths can be uncomfortable, awkward, exhausting, challenging. They can make people defensive, even if that’s not the intent. But any high-performing organization—whether it’s a sports team, a business, a political organization, or activist group—has to have mechanisms and a culture that supports truth telling.” And one of the things you have to do to support this kind of culture is talk about it: “You have to talk about the fact that it takes energy to do that. And you have to remind people that it’s ok that it’s uncomfortable. You have to literally tell people: it’s not what we’re designed to do as humans… we mostly survive by being social animals—cordial and cooperative.” He continues: “You also want to set up your culture so that the most junior person can overrule the most senior person.” And in every meeting Jeff attends, he always speaks last: “I know from experience that if I speak first, even very strong-willed, highly-intelligent participants of that meeting will [wonder if their ideas are incorrect because they’re different from Jeff’s]… Ideally you try to have the most junior go first and then go in order of seniority so that you can hear everyone’s opinion in an unfiltered way… Because we really do change our opinions—if somebody you really respect says something, it makes you change your mind a little.” Jeff also points out that a lot of the most powerful truths aren’t always based on data—they turn out to be hunches, are based on anecdotes, or are intuition-based: “You may feel yourself leaning in. It may resonate with a set of anecdotes you have. And then you may be able to say: ‘something about that feels right. Let’s go collect some data on that and try to see if we can know if it’s right.’” And lastly he discusses fighting inherent biases. For example, most companies usually have an optimism bias. As Jeff explains: “If there are two interpretations of a new set of data—one is happy and the other is unhappy—it’s a little dangerous to jump to the conclusion that the happy interpretation is right. You may want to compensate for that human bias of trying to find the silver lining and say ‘that might be good, but I’m gonna go with it’s bad for now until we’re sure.’”

Startup Archive

1,171,180 просмотров • 2 лет назад

Jeff Bezos in 1999 on why "Internet Shminternet" doesn't matter: Jeff was being challenged on whether Amazon is still an internet company. They had 3,000 employees and over 4 million square feet of distribution centers. The interviewer pushes back: "You're not really a pure Internet company anymore either. You've got millions of square feet of real estate, growing inventory, thousands of employees." Jeff's response: "I'm very proud of that because with that distribution center space and half a dozen distribution centers around the country, it allows us to get product close to customers so we can ship it in a timely way which improves customer service levels. That's what we're about." The interviewer tries again: "But you're not a pure Internet play." Jeff fires back: "It doesn't matter to me whether we're a pure Internet play. What matters to me is we provide the best customer service. Internet Shminternet. That doesn't matter." On what investors should care about: "They should be investing in a company that obsesses over customer experience in the long term. There is never any misalignment between customer interests and shareholder interests." The interviewer accuses him of corporate arrogance: "Isn't it corporate arrogance to assume that you can come into these businesses which you have no experience in and virtually overnight become the best and the market leader?" Jeff's response: "When we first started selling books four years ago, everybody said 'you're just computer guys, you don't know anything about selling books.' And that was true. But we really cared about customers and now we know a lot about books. We hired the right people. We take the commitment to the customer very seriously." On the risk: "There's no guarantee that Amazon(.com) can be a successful company. What we're trying to do is very complicated. There's huge execution risk involved. We have a terribly complicated business. But this is the less risky of the two approaches because scale is important in this business." Customer obsession beats everything else.

Jaynit

28,602 просмотров • 7 месяцев назад

Jeff Bezos on how to build a business strategy “I very frequently get the question: ‘What’s going to change in the next 10 years?” And that is an interesting question… But I almost never get the question: ‘What’s not going to change in the next 10 years?’ And I submit to you that that second question is actually the more important of the two.” Jeff argues: “You can build a business strategy around the things that are stable in time. In our retail business, we know that customers want low prices, and I know that’s going to be true 10 years from now. They want fast delivery. They want vast selection. It’s impossible to imagine a future 10 years from now where a customer comes up and says, ‘Jeff I love Amazon, I just wish the prices were a little higher.’ Or, ‘I love Amazon, I just wish you’d deliver a little slower.’ Impossible. And so we know the energy we put into these things today will still be paying dividends for our customers 10 years from now.” He gives AWS as another example. It’s impossible to imagine AWS customers asking for a less reliable or more expensive service. ”When you have something that you know is true, even over the long term, you can afford to put a lot of energy into it… The big ideas in business are often very obvious, but it’s very hard to maintain a firm grasp of the obvious at all times. But if you can do that and continue to spin up those flywheels and put energy into those things, over time, you build a better service for your customers on the things that genuinely matter to them.” Video source: Amazon Web Services (2012)

Startup Archive

61,894 просмотров • 1 год назад