Amazon’s planning process utilises two key strategies: 10X thinking and cross-functional goals. 10X thinking involves setting audacious goals that require rethinking processes from the ground up. This strategy, inspired by NASA’s moonshot, encourages innovation and risk-taking, pushing teams to develop ground-breaking solutions. It’s not about incremental improvements, but about making leaps that are 10 times better than current performance.
Cross-functional goals, on the other hand, promote collaboration across different departments. By setting shared objectives, departments are forced to work together, breaking down silos and fostering a more integrated approach to problem-solving. This strategy encourages teams to understand the broader business context, leading to more holistic solutions.
Amazon’s six-page narrative memo is another unique aspect of their planning process. It forces clarity of thought and ensures everyone is on the same page. The memo is written in a narrative form, making it more engaging and easier to absorb. It is read in silence at the start of meetings to ensure everyone understands the context and goals.
Finally, Amazon’s planning process is iterative, with plans revisited and revised quarterly. This allows for flexibility and adaptation, enabling the company to respond to changes in the market or business environment. This iterative process, combined with 10X thinking and cross-functional goals, makes Amazon’s planning process a model for other companies to consider.
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