Jeff Bezos and the Art of Store

Fortune magazine named Jeff Bezos the “2012 Businessperson of the Year,” calling him the ultimate disrupter.[1] As I read Adam Lashinsky’s article, I thought about the agility of a martial arts artist who adapts, surprises and exploits opportunities for growth and innovation. Maybe he could be likened to Sun Tzu and “The Art of War.”

Here are my three quick takeaways from the recent Fortune piece that may capture the unique combination of energies in Bezos’ leadership:

• Focused Diversification
• Building Teams
• Values-Based Pragmatism

Focused Diversification – If you look at ever-expanding range of Amazon business developments, it could appear to be scope creep. Over the last 18 years, Bezos has expanded Amazon from a book reseller business to an electronics merchant, a retailing company, a mobile device manufacturer, a cloud-services vendor, a movie streaming company, and more. Along the way, Bezos has dabbled in a variety of short-lived projects reaching out in all directions.

As Bezos has built this ever-changing and expanding products and services company, he has been known to cannibalize his own businesses (like buying a Zappos to directly compete with the Amazon shoe retailing business), develop business verticals that have no direct connection, and try a variety of experiments in service delivery and product development.

So how is this diverse empire held together in a cohesive vision? One central driving force seems to shape much of Bezos’ path and expansion: deliver a good customer experience. These aren’t just words for Bezos, and they may distinguish the Amazon ethos from many other companies.  ”When they’re in the shower in the morning, they’re thinking about how they’re going to get ahead of one of their top competitors,” Bezos says. “Here in the shower, we’re thinking about how we are going to invent something on behalf of a customer.”

This driving passion has caused Bezos to interrupt a staff meeting to address a cus recentlty tomer complaint. His drive to care for customers shapes the type of services and products that Amazon offers, extending from the inidividual consumer to the Enterprise client. Reed Hasting, Netflix CEO, said, ”Jeff is a manic competitor, a delightful human being, and a trusted supplier.”

Building Teams – Amazon is odd among its peers for lower salaries and absence of the normal incentives. Yes, employees still do well, but they are rewarded in teams and rewarded by being part of a team. Bezos has proven that you can build loyal employees without relying on bloated salaries and bonuses. As a father of four, he views himself on a team.

“I have realized about myself that I’m very motivated by people counting on me,” he says. “I like to be counted on. I like to have a bunch of customers who count on us. I like being part of a team. We’re all counting on each other. I like the fact that shareholders are counting on us. And so I find that very motivating.”

Values-Based Pragmatism – The Amazon culture is shaped by three driving values: long-term thinking, customer obsession, and a willingness to invent. The history of the company could be read in light of these values with customer obsession pumping the heart of the business. How can a company grow, reshape, explore, try new ideas, open possibilites all while remaining focused on improving customer experience? This value-driven culture has led to Amazon entering challenging marketplaces like the tablet arena and playing an industry-shaping role.

In spite of his commitment to these values, Bezos is not trapped in forestalling an Amazon mythos like the Apple myth. Instead, Bezos is willing at times to change directions based on practical considerations. While averse advertising, Bezos was willing overcome hesitation this last quarter and aggressively advertise the new Kindles.

[1] “Amazon’s Jeff Bezos: The ultimate disrupter.” Adam Lashinsky. Fortune Magazine, November 16, 2012 . All quotes are drawn from Lashinky’s article.