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Unpacking Amazon’s unique ways of working | Bill Carr (author of Working Backwards)

Bill Carr is the co-author of Working Backwards: Insights, Stories, and Secrets from Inside Amazon. With a background at Amazon of over 15 years, Bill played a pivotal role in shaping the company’s global digital music and video ventures, including Amazon Music, Prime Video, and Amazon Studios. After Amazon, Bill was an Executive in Residence with Maveron, an early-stage, consumer-only venture capital firm. He later served as the chief operating officer of OfferUp, the largest mobile marketplace for local buyers and sellers in the U.S. Today he’s the co-founder of Working Backwards LLC, where he helps companies implement Amazon’s time-tested management strategies. In this episode, we discuss: • What exactly “working backwards” is, and how you do it • Why having “single-threaded leaders” is so effective • Inside Amazon’s intense product review process • How to actually follow the “disagree and commit” principle • The thinking behind the principle “Leaders are right, a lot” • Input vs. output metrics • Fostering a culture of risk-taking and innovation • The role and responsibilities of a “bar raiser” in your hiring, and how it significantly improves the success rate of new hires — Brought to you by AssemblyAI—Production-ready AI models to transcribe and understand speech: https://www.assemblyai.com/lenny | Coda—Meet the evolution of docs: https://coda.io/lenny | Wix Studio—The web creation platform built for agencies: https://www.wix.com/studio?utm_source=Lennyspodcast&utm_medium=Podcastad&utm_campaign=SL Find the transcript and references at: https://www.lennyspodcast.com/unpacking-amazons-unique-ways-of-working-bill-carr-author-of-working-backwards/ Where to find Bill Carr: • X: https://twitter.com/BillCarr89 • LinkedIn: https://www.linkedin.com/in/bill-carr/ • Website: https://www.workingbackwards.com/ Where to find Lenny: • Newsletter: https://www.lennysnewsletter.com • X: https://twitter.com/lennysan • LinkedIn: https://www.linkedin.com/in/lennyrachitsky/ In this episode, we cover: (00:00) Bill’s background (04:26) Amazon’s workplace evolution (09:54) Amazon’s “fitness function” (11:44) Single-threaded leadership (18:07) Implementing a program orientation with single-threaded leadership (20:16) The GM model vs. single-threaded leadership (21:31) Functional countermeasures needed for single-threaded leadership (25:22) Embracing the “disagree and commit” principle (30:22) Understanding disagreements (32:41) Deciphering Amazon’s “Leaders are right, a lot” principle (35:25) An explanation of the working backwards framework (41:16) PR FAQ process: Amazon’s innovation engine (44:47) Deconstructing the PR FAQ structure (43:49) The concentric circle model for sharing PR FAQs (44:55) The customer problem-solution statement (47:52) Create a product funnel, not a product tunnel (51:19) How Amazon promotes action vs. talk (54:35) Amazon’s flywheel and input metrics (1:00:51) Signs you’ve got a good input metric (1:04:23) How mistakes can still be made with working backwards (1:06:54) Why disagreements aren’t necessarily signs products will fail (1:08:02) Examples of failed Amazon projects (1:09:55) Cultivating risk-taking and accepting failure (1:13:57) Amazon’s “bar-raiser” practice for hiring (1:18:21) Selecting Amazon’s bar raisers (1:20:41) Advice on implementing practices from Working Backwards (1:23:10) Bill’s work as an advisor (1:26:05) Lightning round Production and marketing by https://penname.co/. For inquiries about sponsoring the podcast, email podcast@lennyrachitsky.com. Lenny may be an investor in the companies discussed.

Bill CarrguestLenny Rachitskyhost
Nov 1, 20231h 33mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

Inside Amazon’s Playbook: Working Backwards To Build Winning Products

  1. Bill Carr, former VP at Amazon and co-author of *Working Backwards*, breaks down the specific operating practices that powered Amazon’s growth, from customer-obsessed product development to rigorous hiring.
  2. He explains core mechanisms like the Working Backwards PR/FAQ process, single-threaded leaders, input vs. output metrics, and the Bar Raiser hiring program, including how they emerged and how to implement them.
  3. Carr emphasizes that Amazon’s success came as much from process innovation as product innovation, driven by Bezos’s scientific, experimental approach to management.
  4. He also shares practical guidance for other companies: how to pilot these practices, what preconditions are required, and why commitment and cultural alignment are critical for them to work.

IDEAS WORTH REMEMBERING

5 ideas

Start with the customer problem and work backwards, not from revenue targets.

Amazon treats it as an article of faith that if you relentlessly solve important, enduring customer problems, revenue, growth, and share price will follow—so product work starts from customer needs, not financial goals.

Use PR/FAQs to force clarity before building anything.

The Working Backwards PR/FAQ is a written “fake press release” plus FAQ that crisply defines the customer, the problem, and the solution; iterating this document through concentric circles of feedback filters out weak ideas and aligns stakeholders before engineering starts.

Organize around single-threaded leaders who own a focused program end-to-end.

Instead of centralized project-style resourcing, Amazon creates teams with one accountable leader and dedicated cross-functional resources who continually improve a domain (e.g. search, TV apps) using their own roadmap and metrics, trading off some functional centralization for speed, ownership, and agility.

Anchor operating reviews on input metrics that drive the flywheel, not just outputs.

Amazon mapped its flywheel (selection, price, convenience, cost structure) and created input metrics for each; leadership focused plans and weekly reviews on improving those controllable inputs, trusting that outputs like revenue and free cash flow would follow.

Practice “have backbone, disagree, and then truly commit.”

Team members are obligated to raise dissenting views with clear reasoning until they’re confident leadership understands them; once a decision is made, they’re expected to internalize the rationale and actively help make it succeed, not passively comply or undermine it.

WORDS WORTH SAVING

5 quotes

We took it as an article of faith that if we served customers well… things like sales, revenue, and share price would follow.

Bill Carr (quoting Jeff Bezos)

Most of us start with constraints and work forward. Working backwards says, ‘Start with what’s best for the customer, then figure out the hard work to get there.’

Bill Carr

We moved from a project orientation to a program orientation… there’s a team that works on search, and they always work on search.

Bill Carr

Compound metrics like fitness functions turned out to be totally meaningless. We had to break things out and manage each metric on its own.

Bill Carr

None of these mechanisms give you the answer. They’re tools to help you make better decisions—you’re still going to be wrong sometimes.

Bill Carr

Amazon’s culture of customer obsession and process innovationThe Working Backwards method and PR/FAQ product-development processSingle-threaded leaders and program-oriented team organizationInput vs. output metrics and building a company flywheelDisagree and commit, and “leaders are right a lot” as decision principlesThe Bar Raiser hiring process and maintaining a high talent bar at scaleHow to realistically adopt Amazon-style practices in other companies

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