Amazon is a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is considered one among the large Five companies within the U.S. information technology industry, alongside Google, Apple, Microsoft, and Facebook.
Started in 1994, the company started as a web marketplace for books but expanded to sell electronics, software, video games, apparel, furniture, food, toys, and jewelry. With 1,000,000 workers and generating more than the US $200 billion net worth, it has come a long way.
We all know that decision-making is an integral part of the success of any startup and amazon is not different. It is Jeff Bezos's highest-stakes decisions making skills that Amazon is "one of the most influential economic and cultural forces in the world", as well as the world's most valuable brand.
Effective decision-making is an important skill for every individual. Great and successful people have a secret mantra for making effective decisions. They do not make a great many decisions. They concentrate on what is important and try to make the few important decisions on the highest level of conceptual understanding instead of focusing on the speed in decision making. They want impact rather than technique.
In the new collection of his writings, Amazon’s CEO shared his secret of making the highest-stakes decisions. Jeff Bezos says that as a senior executive you get paid to make a small number of high-quality decisions rather than making thousands of decisions every day. Think about it, suppose you make a hundred decisions, but is that really worth it if the quality of those decisions is lower.
There are two types of decisions. One is one-way doors which are irreversible and highly consequential, and the other is two-way doors that are made slowly and carefully. Jeff Bezos shares that Amazon follows the one-way doors for decision making and those decisions are analyzed seventeen more ways because it’s highly consequential and irreversible. But, most decisions are two-way doors.
When you make a two-way door decision, you can back up if it turns out to be a wrong decision when you step through. Mostly, in large organizations, all decisions end up using the heavyweight process that is intended only for irreversible, highly consequential decisions. And that’s a disaster.
So, when a decision is made, you must ask, “Is it a one-way door or a two-way door?” This will make things easier for you because if it’s a two-way door, make the decision with a small team if it’s wrong, you’ll change it. But in the case of a one-way door, be careful and analyze it five different ways, because that is where slow is smooth and smooth is fast.
Must Read: Importance of Business Decision Making.
One decision can determine the success and failure of a business. Millions of decisions are made by businesses every day, but once in a while, a game-changing decision is made that shifts not only the strategy of a single company but how everyone does business. In this book, Verne Harnish, the CEO of Gazelles, and Fortune's editors provide the background stories behind the greatest business decisions of all time. You'll get a glimpse into the thought processes which result in these groundbreaking moments.
To know more about the greatest business decision, Read here.
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Jyotsana is very keen to express her views on new topics and wants readers to remember her through her writing. She is passionate about reading and believes that words wield the power of changing the scenario and she uses them to encourage people to the best of her knowledge.