Bet on ideas with unlimited upside

Jeff Bezos letter to shareholders 2014

KEY MESSAGE 17/22

“A dreamy business product has at least four characteristics. Customers love it, it can grow to very large size, it has strong returns on capital, and it’s durable in time—with the potential to endure for decades. When you find one of these, don’t just swipe right, get married.”

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series of short blogs  that gives you a snap shot / key takes outs of each letter, along with links to them all.

Takeaway

Be aggressive about placing bets on dreamy business ideas. You’ll have failures, but sufficiently big winners will more than make up for all of your failed experiments.

Challenge

Many relationships, particularly business ones, require bold moves to get going. And to find true success, you have to commit for the long haul. The problem is that these moves don’t just appear risky — often, they’re hard to rationally justify at all.


When your risk tolerance is high, you can make bets all over the map.

Organizations that want to make data-driven decisions often have a difficult time with placing risky bets because those bets often don’t have clear quantitative evidence to support them. If they did, there wouldn’t be a risk of failure, there wouldn’t be experiments, and there wouldn’t be such a big upside.

Solution

Place your bets where your downside is capped but your upside is unlimited.

For Bezos, the best bets are on dreamy businesses. You know you have a “dreamy” business idea when:

  1. Customers love it
  2. It has the potential to become very large
  3. It has the potential of very strong returns
  4. It has the possibility to endure

Each of the three major bets that Bezos mentions in this letter — Marketplace, Amazon Web Services (AWS), and Prime — was a risky idea.

With Prime, for example, no one on the Amazon team could point to numbers showing that giving customers free shipping for a yearly fee would ever pay for itself.

Today, each of these three bets is a pillar of Amazon’s business. In fact, in 2017, all of Amazon’s operating income came from AWS, a once-risky bet on a “dreamy” business idea. With almost $17.5 billion in sales in 2017, and about $4.5 billion in profit, it was Amazon’s second-largest source of revenue.

Not every bet that Amazon has ever placed has succeeded. The company was a significant shareholder in both Pets.com and living.com, for example. They lost their investment, but stood to gain so much more if they turned out right.

link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

how to get buy-in

5 fingers5 Steps to Get Buy-in for Your Next Innovation

Leadership Tip of week #129

adapted from HBR

Everyone wants innovation in their organisation, but getting a new idea implemented can be a challenge, especially when office politics are in play. When you’re trying to get approval for your latest innovation, follow these four steps.

1. be clear on the problem you are trying to solve: really understand the internal and customer problem you are trying to solve. this is 80% of the challenge

2. anticipate resistance. If you know what people might object to, you can plan how you’ll address those concerns.

3. understand what objections are truly about. For example, someone might say they object because of a publicly acceptable reason — say, the project is too costly — when their real concern is political, like they’re afraid their team will lose influence.

4. find a champion for the project. This should be a senior executive whose clout and expertise can help you move the project forward.

5. gather a critical mass of supporters. If you have a group of people who believe in the innovation enough to try it, you’ll have social proof that the idea is a good one.

Adapted from “How to Navigate the Politics of an Innovation Project,” by Brian Uzzi

Decentralise decision making to generate innovation

Jeff Bezos letter to shareholders 2013

KEY MESSAGE 16/22

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series of short blogs  that gives you a snap shot / key takes outs of each letter, along with links to them all.

“We have the good fortune of a large, inventive team and a patient, pioneering, customer-obsessed culture — great innovations, large and small, are happening everyday on behalf of customers, and at all levels throughout the company. This decentralized distribution of invention throughout the company — not limited to the company’s senior leaders — is the only way to get robust, high-throughput innovation.”

Takeaway

Innovation comes from distributed decision-making. Top-down teams are effective at optimizing existing processes and enforcing the completion of work, but only decentralized, bottom-up teams can consistently generate new ideas.

Challenge

In most big companies, command-and-control is the way that work gets done. Ensuring that important decisions only get made by those at the top maintains a certain level of quality and keeps everything stable.

Building a business that is continuously throwing off new ideas and innovating, on the other hand, requires that your people have leeway. You need autonomous teams that can exercise their own judgment rather than having to submit every idea they have to a committee. It requires your company to recalibrate how it hires, how it takes risks, and the opportunity it offers to even junior employees.

Solution

Its culture of creativity is a large part of why Amazon has been so successful on so many fronts, and why it has risen to the second-largest company by market cap in the world.

That creativity is often actually a function of the proactive way Amazon thinks about customers. Rather than wait for their customers to tell them about something they want, Bezos says, Amazon would always rather create the thing they don’t even know they want yet.

To encourage this kind of innovation inside your company, however, you need to have distributed decision-making and autonomy for more than just your senior staff.

At Amazon, employees who have an idea are encouraged to pursue it, even if they have to upset traditional corporate rules to do it.

Great innovations come from a “large, inventive team” with a “patient, pioneering, customer-obsessed culture” rather than from a small braintrust.

If you’re a junior employee at Amazon and you have an idea for some new way to delight customers, Bezos writes, you’re just as encouraged to give it a try as a senior leader. Experiments can start small. The downside of a small failed experiment is low, but the potential upside can be very high.

link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

Try Silence During Your Next Remote Brainstorm

brainstorm ideas 2

Try Silence During Your Next Remote Brainstorm

Leadership tip of the week #128

adapted from HBR

Research shows that embracing silence during a brainstorm helps teams produce significantly more — and higher-quality — ideas. Silent brainstorming can be particularly useful in remote meetings.

So what does it look like in practice?

  1. Starting with the meeting invite, make sure everyone understands the goals of the brainstorming session.
  2. At the beginning of your meeting, share a working document (such as a Google Doc or use Teams ) with key questions that need to be answered.
  3. Encourage all participants to contribute to the document for 10 to 20 minutes without talking. During this time, attendees can actively ideate and respond to each other in the document.
  4. The leader can also participate, providing direction and asking attendees to elaborate on specific ideas as they’re being formed.
  5. Once the silent phase of the brainstorm is complete, you can begin a discussion if your group is relatively small. If the group is large, you can end the meeting, review the document, and follow up with an email that shares conclusions and next steps. Or, you might consider sending out a quick survey where participants can react or vote on options to move forward.

A different approach to working on ideas but one that creates the workshop capability from before lock down and stops Zoom overload.

This tip is adapted from Break Up Your Big Virtual Meetings,” by Liana Kreamer and Steven G. Rogelberg

Surprise and delight your customers to build long term trust & customer lifetime value

Surprise and delight your customers to build long-term trust and customer lifetime value 

Jeff Bezos letter to shareholders 2012

KEY MESSAGE 15/22

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series of short blogs  that gives you a snap shot / key takes outs of each letter, along with links to them all.

“When we’re at our best, we don’t wait for external pressures. We are internally driven to improve our services, adding benefits and features, before we have to. We lower prices and increase value for customers before we have to. We invent before we have to.”

Jeff Bezos Letter to Shareholders 2012

Takeaway

In the short term, spending money to deliver value above what your customers could reasonably expect looks foolhardy — in the long run, it could be your competitive advantage.

Proactively bringing value to your users and delighting them builds attachment and trust. Build enough of it, and you create a connection with your customers that becomes hard to break.

Challenge

On Wall Street, delivering value above and beyond what your customers expect is not considered a sensible decision — especially if it costs money. One early critic of Amazon derisively described the company as a “charitable organization being run by elements of the investment community for the benefit of consumers.” This kind of attitude has become so pervasive that for many businesses, it’s seen as safer to move in lockstep with your competitors, never falling behind but never advancing ahead of them either.

Solution

Building a great customer-centric business over the long-term doesn’t happen when you’re only reacting to your competitors.

Proactively delighting your users costs money, but it pays off when you distinguish yourself — your customers stick around for longer and they pay you more.

The longer a company is able to retain its customers, the less it needs to spend on acquisition or marketing. The more revenue it drives from each customer, the stronger its business.

For Amazon, building a high lifetime value among its customer base through proactive delight has been a powerful differentiator. The average lifetime value of a Prime customer was estimated at $2,500 in 2017, well over the $150 average in e-commerce.

956DBAFA-3883-445C-A78C-C8DCC255CA04

link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

How to increase your versatility

darwin survival of fittest

How to increase your versatility

– the best leaders are versatile ones

Leadership tip of the week #127

adapted from HBR

Versatility is a key leadership trait.

Managers must have the capacity to read and respond to change with a wide repertoire of skills and behaviors.

So how can you actually build this ability?

  1. Start by soliciting feedback from trusted colleagues. Ask a simple question like, “What should I start doing, stop doing, or continue doing to be a more effective teammate?”
  2. You might also take a more systematic approach and complete a personality assessment to gauge your strengths and weaknesses.
  3. Follow up by asking colleagues if they agree with the results.
  4. Finally, learn some new habits from people you respect. Set up a meeting with a colleague who has different strengths than you to pick their brain. Your goal is to learn to see things from their perspective, so come with an open mind. You might even ask what they are reading, how they learn, or what their day-to-day routine is.

Try to adopt some elements from their approach — it just might make you a more flexible worker and versatile leader, and more adaptable to change.

Keep listening keep learning

This tip is adapted from “The Best Leaders Are Versatile Ones,” by Robert B. (Rob) Kaiser

 

R&D should pervade every department

 

94DAC10A-CF9C-4F17-B3C4-EB577753C2F8

 

R&D should pervade every department

Jeff Bezos letter to shareholders 2010

Key message 13/22

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series of short blogs  that gives you a snap shot / key takes outs of each letter, along with links to them all.

“And while many of our systems are based on the latest in computer science research, this often hasn’t been sufficient: our architects and engineers have had to advance research in directions that no academic had yet taken. Many of the problems we face have no textbook solutions, and so we — happily — invent new approaches.”

Takeaway

Software is eating the world, and that means that technology should infuse everything that you do as a company, no matter your core competency.

With the speed at which technology advances and improves, investing in becoming a tech company will let you move much faster than your competition.

Challenge

Shareholders, executive teams, and boards aren’t always aware of the most up-to-date advances in infrastructure technology, machine learning, and software architectures. It’s not necessarily easy to explain why you’re doing your own cutting edge research on these kinds of topics rather than focusing on your company’s main line of business.

Solution

You can’t expect to progress technologically if you’re siloing your company’s technology work in some kind of R&D department, Bezos writes.

At Amazon, technology pervades everything — every process, every decision, and every businesses.

Because of this approach, it can point to any product or line of business in the company and show how its dominance is rooted in technology, from the site’s search engine to Kindle.

 


Even Amazon Web Services — today one of Amazon’s main pillars and its largest driver of profit — was born from a piece of internal technology.

B02FEA4A-0ED3-4827-81B8-96B6D54A626D

Technology isn’t just something that Amazon invests in so it can keep up with their competition. It’s how it tries to make core products better.

link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

 

Use curiosity to break a bad habit

curiosity

Use Curiosity to Break a Bad Habit

Leadership Tip of Week #124

adapted from HBR

Why is breaking a habit so difficult?

It’s because habits are made up of three components:

  1. a trigger (for example, feeling stressed),
  2. a behavior (browsing the Internet),
  3. a reward (feeling sated).

Each time you reinforce the reward, you become more likely to repeat the behavior. The key to breaking this cycle is to become more aware of the “reward” reinforcing your behavior.

First, figure out your triggers. If the habit is procrastination, for example, pay attention to the circumstances surrounding you when you put things off. Do you have a big project you’re trying to avoid? Do you have too much on your plate? Then, try to identify the behaviors you engage in when you procrastinate. Do you check social media instead of working? Do you take on unimportant tasks instead of what you should be doing?

The next step is to clearly link action to outcome. Ask yourself what you get from surfing the internet for pictures of cute puppies. How rewarding is it in the moment, especially when you realize that it isn’t helping you get your work done?

Lastly, replace the reward with curiosity. Being curious helps you acknowledge the sensations you’re feeling — boredom, distraction — without acting on them.

Focus on inputs – the outputs will take care of themselves

12 bezos focus on inputs

Focus on inputs — the outputs will take care of themselves

Jeff Bezos letter to shareholders 2009

Key message 12/22

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series of short blogs  that gives you a snap shot / key takes outs of each letter, along with links to them all.

“Senior leaders that are new to Amazon are often surprised by how little time we spend discussing actual financial results or debating projected financial outputs. To be clear, we take these financial outputs seriously, but we believe that focusing our energy on the controllable inputs to our business is the most effective way to maximize financial outputs over time. . . . Our goal-setting sessions are lengthy, spirited, and detail-oriented. We have a high bar for the experience our customers deserve and a sense of urgency to improve that experience.”

Takeaway

When you’re setting goals for a business or a product, focus on inputs you can control, not on financial outputs.

Over the long term, investing your effort in the parts of the customer experience that you can control is what generates success for your company financially.

Challenge

The majority of large, public companies benchmark success by quarterly and annual financial results. They know their boards will assess them using these numbers, so they focus their teams on hitting financial goals. The problem is that incentivizing a team to hit certain numbers doesn’t always incentivize them to do the right things for their customers.

Solution

Instead of setting goals and judging your company’s efforts using financial outputs, work on perfecting your inputs, and trust that the outputs will handle themselves.

In this letter, Bezos mentions several key inputs he and his team assessed throughout 2009, including:

  1. The # of reviews added to Amazon products
  2. The # of new product categories available
  3. The # of different items available for immediate shipment on Amazon PrimE

1. The more reviews added to Amazon products, the better a new customer’s understanding of whether that product is worth buying or not, and the more trust they can place in the platform.

2. The more product categories and products available the more likely customers are to use amazon as go-to retailer.


3. The more items available for immediate shipment on Prime, the more choice a customer has, and the less likely they are to go somewhere else to find an item the next time.

If you can choose inputs that correlate with a great experience for your customers, then working on those will likely bring financial outputs up over the long-term.

link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

Working parents, help each other recharge

6AAC2B2F-69E2-4CE7-B6E8-70AD339ABEF9

Working parents, help each other recharge

Leadership tip of the week #123

adapted from HBR

It’s been a blast for working parents in last weeks of lockdown. They have spent more time with their children, and many admit to quite liking them !

But it’s not always easy for working parents to communicate their own needs, but it’s worth discussing with your partner how you can each make time for self-care.

Before having the conversation, take a few minutes to make a list of what would most benefit you.

  • Is it taking 15 minutes after work to decompress before jumping into child care responsibilities?
  • Maybe it’s enjoying a couple of hours on a weeknight to read a novel. Choose one or two things that are feasible and would truly recharge you.

When it’s time for you and your partner to talk, make sure you’re both free of distractions, relatively calm, and not overtired. During the conversation, remember that you’re playing for the same team. Use “I feel” statements that focus on your own experience instead of accusatory “You always” statements. Listen to your partner’s needs, and be willing to make concessions.

You’ll both benefit if you approach the conversation with empathy and an open mind.

This tip is adapted from How to Communicate Your Self-Care Needs to Your Partner,” by Jackie Coleman

work backwards from customers needs to know what to build next.

Work backwards from customer needs

to know what to build next

Jeff Bezos letter to shareholders 2008

Key message 11/22

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series of short blogs  that gives you a snap shot / key takes outs of each letter, along with links to them all.

“’Working backwards’ from customer needs can be contrasted with a ‘skills-forward’ approach where existing skills and competencies are used to drive business opportunities. The skills-forward approach says, ‘We are really good at X. What else can we do with X?’ That’s a useful and rewarding business approach. However, if used exclusively, the company employing it will never be driven to develop fresh skills.”

Takeaway

Some companies figure out what to build next by thinking about what they’re already good at doing today — a good approach in some cases, Bezos says, but not always.

If you want to delight and amaze your customers and develop fresh lines of business, you need to think backwards from what your customers need.

Challenge

As a company, it’s more straightforward to rely on a skills-forward approach. Over time, you develop expertise in certain fields. Deciding what to do next based on the expertise you’ve already developed is often a good way to leverage your competence in one area into new successes.

The problem is that this method will never bring you new skills or capabilities. You’ll never learn how to do new things, and that will ultimately hurt your ability to innovate.

Solution

To take your business to the next level, start by thinking about what your customers want or need, and work backwards to figure out what you can build.

When the Kindle project started, the vision was simple — the capability for any book ever printed to be accessed in less than 60 seconds. That was it: the product was no more determined than that.

Although Amazon had never built a hardware device before, the team focused on fulfilling that vision. They hired people with the right skills to engineer that vision, rather than trying to create a product better suited to Amazon’s existing skills.

The Kindle software and hardware emerged organically out of the Amazon team’s attempt to answer that product vision, and the result became another powerful arm of Amazon’s business.

Thinking backwards from customer needs rather than seeking the path of least resistance at each juncture allows Amazon to be both successful and creative. That’s what has allowed them to reinvent the company time and time again.

link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

Reach out to people you miss

E953FE20-0150-459F-9347-D17DD089247D

Reach Out to Those Casual Friends You Miss

Leadership Tip of the week #122

adapted from HBR

On an average day, we interact between 11 and 16 times with casual acquaintances — Meeting new people at work or catching up with acquaintances casually for a coffee.

Now that we live in an era of social distancing, these once-common interactions have disappeared, and we no longer have physical reminders that we are part of a wider social network. Reaching out to show someone that you’re thinking of them will make you both feel a bit closer during this challenging time.

  1. First, think of the right way to reach out — is it a text, a phone call, an email, a Facebook message? What will put the least amount of pressure on the recipient?
  2. If you don’t get a response, don’t take it personally. Think about this interaction as similar to smiling at a colleague in the hallway: Sometimes you might stop and chat, and sometimes you might not.
  3. Instead of expecting a reply, enjoy the knowledge that your message is likely to deliver a little hit of happiness for the recipient.
  4. Set an expectation for a short and simple conversation — it will help avoid the feeling that socializing is another item on your to-do list.
  5. And if you do end up talking, share something about yourself — maybe a photo of your pet or child doing something funny — to help build positive rapport.

It may feel awkward at first, but reaching out to an acquaintance will create a spark of joy for both of you while you’re out of each other’s sight.

Let’s all reach out to one extra person a day for the next week?

This tip is adapted from Why You Miss Those Casual Friends So Much,” by Gillian Sandstrom and Ashley Whillans

adapt your leadership style

Apple Developers Conference

adapt your leadership style to your situation

Leadership tip of the week #115

adapted from HBR

There’s not one leadership style that works for all contexts. Steve Jobs was not just a great leader he was a situational leader, with flexibility in his leadership styles.

For example, in some situations, it’ll make sense to tell people what to do, whereas asking open-ended questions will work better in others.

You might need to adjust goals as new information emerges, or, under certain circumstances, stick exactly to the plan.

You should adjust your style based on the people you’re managing, the context in which you’re leading, and the outside pressures you’re under.

To navigate tensions like these, you need a good deal of self-awareness. So understand your natural tendencies. What’s your default position? Do you tend to be more of a traditional leader, or do you align with a more adaptive, fluid style?

If you’re not sure, get feedback from others.

Then learn, adapt, practice.

The goal is to develop a portfolio of micro-behaviors you can employ when the situation demands you use a different style. And look to your employees for signals on when it’s appropriate to favor one approach over another

This tip is adapted from Every Leader Needs to Navigate These 7 Tensions,” by Jennifer Jordan, Michael Wade, and Elizabeth Teracino

The best way to find out if you can trust somebody is to trust them.

ernest-hemingway-trust-quotes

Trust Is Even More Important When You’re Working Remotely

Leadership Tip of the Week # 120

adapted from HBR

Leaders who suddenly have found themselves managing a fully remote team may be wondering how to measure employee productivity and quality of work from a distance.

The key ingredient is trust.

You may not be able to see what people are doing, but you can still equip them with the information they need, assign them tasks, and check on them like you always have.

  1. give them the right equipment
  2. give them rituals for the day
  3. find new ways to keep the coffee machine conversations
  4. be open in conversations ( the easy and the difficult ones)

Since you can’t monitor process in the same way, your review will have to be based on outcomes.

Of course, there’s no reason to believe that, in this new environment, people won’t do the work they’ve been assigned. Remote work has been around for a very long time, and today we have been learning to use that technology to not only do our own work but also to successfully collaborate.

So as a manager, your main job is to heed Ernest Hemingway’s advice: “The best way to find out if you can trust somebody is to trust them.”

This tip is adapted from 15 Questions About Remote Work, Answered,” by Tsedal Neeley

Stay Positive to Help Yourself — and Others — Through This Stressful Time

stay positive

Stay Positive to Help Yourself, and Others

Through This Stressful Time

Leadership Tip of the week #121

adapted from HBR

During stressful and uncertain times, it’s normal to feel anxious and scared. Chances are, most people around you feel it, too. It’s easy to infect each other with anxiety and fear, but we can take steps to protect ourselves from these emotional contagions.

  1. To start, cut down on how often you engage in venues where fear feeds on itself, such as social media, cable news, and frenzied conversations with friends and coworkers.
  2. Do your best to distinguish between people who are speculating and those who have sound information.
  3. Also, take care of your mental health. This means exercising, practicing mindfulness and meditation, volunteering, and seeking out positive, high-quality connections with others — even if they’re virtual.

Simple wellness practices like these will help you build resilience and positivity, and maybe pass some along to the people in your life.

This tip is adapted from The Contagion We Can Control,” by Sigal Barsade

Protect your non-work time

smiley post it note on corkboard happiness versus depression concept
smiley cartoon face expression on yellow post it note surrounded by sad and depressed faces on cork message board in happiness versus depression and smile against adversity concept

Protect your non-work time

Leadership tip of the week #113

adapted from HBR

As more people are adapting to working from home, we are all learning to adapt:  jobs used to have very clear lines between when you’re “on” and when you’re “off.” But when you working from home — it’s important to protect your non-work time.

  • If you feel like work is taking over most of your waking hours, start by clearly defining what “after hours” means for you.
  • Take into account the number of hours you’re expected to work each week, as well as personal commitments like homeschooling kids , exercise, family and some me-time
  • When do you need to start and stop to put in the appropriate amount of work time?
  • Then, develop mental clarity about what needs to get done and when you will do it.
  • Keep track of your tasks and plan them out.
  • Make sure you block off time for an end-of-workday wrap-up, where you review and make sure you did everything you needed to do for the day. Even have a collective end of week drink with colleagues on a zoom call.
  • Lastly, communicate with your colleagues about how (or if) you want to be contacted during your off hours.

Really guard your time. If you don’t, you won’t get the mental break that everyone needs

 

 

Reign in Video Call Ramblers

D1D3659B-D47C-447C-B687-2A8A01365C61

Reign in Video-call Ramblers

Remember when videoconferencing software was a nice-to-have? Oh, how times have changed. Such technology has become a lifeline for British workers, many of whom had never even heard of Zoom or Google Meet just a few weeks ago—and it shows. As is the case with most things in life, practice makes perfect, but only if you’re aware of the pitfalls.

To make your virtual meetings as productive as possible, start by reigning in the ramblers. Discussions that turn into digressions aren’t unique to videoconferences, but they’re a lot harder to get a handle on when you’re remote. Regain control of the conversation by taking one of these three steps:

1. Ask the speaker to summarize his or her point for the meeting notes.

2. Ask the speakers to continue their conversation offline.

3. Establish a subtle signal (think, a hand raise) that participants can use if and when they feel the discussion is getting off track.

How to adjust to working from home

working_from_home

How to adjust to working from home

Leadership Tip of the week #113

adapted from HBR

When you aren’t accustomed to working remotely, it can be hard to adjust psychologically.

To make the transition, take a disciplined approach to managing your day and develop a few rituals.

  1. Schedule a start and an end time for work.
  2. Take a shower, get dressed — even if it’s not your usual office attire — then get started on the day’s activities. If you typically move around a lot at work, build that into your day by taking brief walks outside or even around the house.
  3. If you’re an extrovert and accustomed to a lot of social contact, make sure that still happens. Ask yourself: “How will I protect myself from feeling lonely or isolated?” and make a plan.
  4. Focus on the positives. Think about what you enjoy about working from home, for example, playing music or being more flexible with your time. Remind yourself that even if it’s not your choice right now, working from home can be fun.

This tip is adapted from 15 Questions About Remote Work, Answered,” by Tsedal Neeley

what do customers want in this crisis?

IMG_2416 1

Customers want companies to act in 3 broad ways in this crisis

leadership tip week #111

adapted from HBR

In a fast-moving crisis, it’s important for leaders to communicate with empathy and honesty — not just internally, but externally as well. Of course, customers require a different approach than employees.

Recent research by Kantar was clear that customers wanted organisations to communicate how they act in three broad areas :

  1. For their customers
  2. For their colleagues
  3. For their wider community

 

1.For their customers

In the current crisis Asda CEO Roger Burnley and Sainsbury’s CEO Mike Coupe recently sent out a note to customers describing how they were acting in all three areas and have gained widespread plaudits, whereas Tim Martin Wetherspoons CEO has come under high levels of criticism for the video message he sent to his colleagues suggesting they take their skills to Tesco!

2. For their Colleagues

Grocery Retailers are focusing on protecting  colleagues with social distancing, perspex screens at check-outs, in-store cleaning procedures , increase limit on contactless to £45 and supporting colleagues with sick pay and Asda even committing to a bonus in June.

3. For their wider community

Coop are doing some great work supporting Food Banks with a guaranteed donation of Food. Iceland, Sainsbury’s and Asda have led by opening shops specifically at times for older customers or NHS workers , and many online retailers are prioritising delivery slots for older or vulnerable customers. M&S and Coop even starting local delivery services to vulnerable people.

Overall the focus that is working to build trust is

  • Focus on empathy rather than trying to create sales opportunities.
  • Deliver great Basics in store.
  • Rethink advertising and promotion strategies to be more in line with what’s happening in the world otherwise you risk sounding tone-deaf and alienating your customers ( removing multi-buys) or Coles in Australia shot an ad with their brand spokesperson encouraging its customers to stay safe
  • Look at your messaging from the perspective of your audience, and let your compassion drive your communications, rather than fear of doing the wrong thing

 

This tip is adapted from Communicating Through the Coronavirus Crisis,” by Paul A. Argenti

Reassure Your Team During Uncertainty

london coronavirus 2

Reassure Your Team During Uncertainty

Leadership tip of the week #109

adapted from HBR

This has been a week like no other in the world. Health Crisis. Economic Crisis.

When the news is scary and the future is uncertain, many colleagues will look to leaders for reassurance — even though you might not have the answers yourself.

You can help by first finding your own sense of focus.

  1. Before you start communicating, take a minute to pause and breathe. Then put yourself in your audience’s shoes. What are their concerns, questions, or interests? What do they need an immediate answer to? You might use language such as, “I know many of you may be thinking…” The quicker you can address what’s on their minds, the more likely you’ll be able to calm them down.
  2. Seek out credible sources of information, and read fully before distilling it into clear, concise language. You can confidently express doubt or uncertainty, while still maintaining authority. You might say, “Reports are still coming in, but what we understand so far is…”
  3. Communicate frequently, even if you don’t have news to report, so that people know you are actively following the issue.
  4. And provide tangible action items. Use language such as, “Here are the steps we are taking,” or “Here’s what you can do,” to demonstrate action.

stay safe everyone…

This tip is adapted from How to Reassure Your Team When the News Is Scary,” by Allison Shapira

communicate communicate communicate

people10

Communicate with Your Team During a Rapidly Evolving Crisis

leadership tip of week #110

adapted from HBR

Keeping your employees informed during a crisis should be one of your top priorities as a leader, and this is the crisis of the century.

  1. It’s your responsibility to stay on top of events as they unfold — especially if they’re evolving as fast as they are right now.
  2. At the same time, beware of hype. News outlets often focus on what’s new, rather than the big picture, and they sometimes don’t distinguish between hard facts, soft facts, and speculation.
  3. Think critically about the source of the information before acting on it.
  4. Of course, colleagues have direct access to many sources of information too — but don’t assume they’re fully informed. It’s far better to create and widely share a regularly updated summary of facts and implications so you’re all on the same page.
  5. And constantly re-frame your understanding of what’s happening.
  6. Don’t hold off on disseminating plans just because they might change.
  7. Create a living document, with a time-stamped “best current view,” and update it regularly, highlighting critical changes.

This tip is adapted from Lead Your Business Through the Coronavirus Crisis,” by Martin Reeves, Nikolaus Lang, and Philipp Carlsson-Szlezak

4 steps to get buy-in

5F74F7C4-CFBD-406B-B879-8FDDB1B158BC

4 Steps to Get Buy-in 

Leadership Tip of week #109

adapted from HBR

Everyone wants innovation in their organisation, but getting a new idea implemented can be a challenge, especially when office politics are in play. When you’re trying to get approval for your latest innovation, follow these four steps.

1. anticipate resistance. If you know what people might object to, you can plan how you’ll address those concerns.

2. understand what objections are truly about. For example, someone might say they object because of a publicly acceptable reason — say, the project is too costly — when their real concern is political, like they’re afraid their team will lose influence.

3. find a champion for the project. This should be a senior executive whose clout and expertise can help you move the project forward.

4. gather a critical mass of supporters. If you have a group of people who believe in the innovation enough to try it, you’ll have social proof that the idea is a good one.

Adapted from “How to Navigate the Politics of an Innovation Project,” by Brian Uzzi

Stay terrified of your customers

Bezos masterclass in management through shareholder letters 1998 #2/22

2. be afraid of your customers

 

Jeff Bezos has been writing a letter to shareholders since 1997 and looking at all if them gives an insight to the organisation and a masterclass in leadership. This is a series that gives you a snap shot / key takes outs of each letter.

“I constantly remind our employees to be afraid, to wake up every morning terrified. Not of our competition, but of our customers. Our customers have made our business what it is, they are the ones with whom we have a relationship, and they are the ones to whom we owe a great obligation. And we consider them to be loyal to us — right up until the second that someone else offers them a better service.”

Takeaway

  • In business, the most important thing isn’t what your competition is doing. If you’re expending effort trying to follow your rivals’ every move, you’re losing the big picture.
  • Keeping pace with your customers is what will keep you informed, relevant, and competitive.

Challenge

  • Companies are usually wary of their competition.
  • Understanding where they stack up against rivals, particularly if they’re public and continually judged on relative value multiples like price to earnings (PE), is a key pillar of their business strategy. If they can come in top of class, it’s easier to attract investment.
  • But the issue with thinking like your rivals is that you start to make similar moves. In fast food, for example, McDonald’s, Burger King, Wendy’s, Chick-fil-A all start to blend together. The only ways to differentiate is to narrow down to price and brand. As competition heats up in these crowded areas, it’s increasingly difficult to gain an advantage.

Solution

  • Flip the focus inward and hone in on your customers. Obsess over their preferences, their shopping behaviors, the quality of their reviews. This will allow you to optimize product features and overall product mixes. You’ll be able to double down on what works and eliminate what doesn’t. If you have a self-service platform like Kindle, find out everything users are creating and where they’re hitting roadblocks.
  • This granular focus on your true partners will allow you to invent in ways you (and your peers) didn’t anticipate. You’ll begin to develop away from your rivals and stand apart from the pack. This is a core tenet of Bezos’ philosophy.
  • If you don’t do everything in your power to align with customers’ shifting needs, and instead allow yourself to be distracted by competitors, you’ll quickly lose them.

Link to all letters to shareholders

  • 1997: Bring on shareholders who align with your values

Jeff Bezos Letter to Shareholders 1997

  • 1998: Stay terrified of your customers

Jeff Bezos Letter to Shareholders 1998

  • 1999: Build on top of infrastructure that’s improving on its own

Jeff Bezos Letter to Shareholders 1999

  • 2000: In lean times, build a cash moat

Jeff Bezos Letter to Shareholders 2000

  • 2001: Measure your company by your free cash flow

Jeff Bezos Letter to Shareholders 2001

  • 2002: Build your business on your fixed costs

Jeff Bezos Letter to Shareholders 2002

  • 2003: Long-term thinking is rooted in ownership

Jeff Bezos Letter to Shareholders 2003

  • 2004: Free cash flow enables more innovation

Jeff Bezos Letter to Shareholders 2004

  • 2005: Don’t get fixated on short-term numbers

Jeff Bezos Letter to Shareholders 2005

  • 2006: Nurture your seedlings to build big lines of business

Jeff Bezos Letter to Shareholders 2006

  • 2007: Missionaries build better products

Jeff Bezos Letter to Shareholders 2007

  • 2008: Work backwards from customer needs to know what to build next

Jeff Bezos Letter to Shareholders 2008

  • 2009: Focus on inputs — the outputs will take care of themselves

Jeff Bezos Letter to Shareholders 2009

  • 2010: R&D should pervade every department

Jeff Bezos Letter to Shareholders 2010

  • 2011: Self-service platforms unlock innovation

Jeff Bezos Letter to Shareholders 2011

  • 2012: Surprise and delight your customers to build long-term trust

Jeff Bezos Letter to Shareholders 2012

  • 2013: Decentralize decision-making to generate innovation

Jeff Bezos Letter to Shareholders 2013

  • 2014: Bet on ideas that have unlimited upside

Jeff Bezos Letter to Shareholders 2014

  • 2015: Don’t deliberate over easily reversible decisions

Jeff Bezos Letter to Shareholders 2015

  • 2016: Move fast and focus on outcomes

Jeff Bezos Letter to Shareholders 2016

  • 2017: Build high standards into company culture

Jeff Bezos Letter to Shareholders 2017

  • 2018: Wandering is an essential counterbalance to efficiency

Jeff Bezos Letter to Shareholders 2018

Amazon Go accelerates in size and confidence

 

Amazon Go Grocery, an expanded version of the walk in, select and walk out Amazon Go format, has been open since end February and it is different from the much smaller stores that preceded it and which have been making inroads in cities across the US.

Rather than being sub 2,000 sq ft, this is a 10,400 sq ft concern, putting it firmly in the small neighbourhood supermarket or super-sized convenience store category.

As such, the offer is substantially different from the Amazon Go norm where the focus has been on snacks, prepared and packaged foods and perhaps a cup of coffee from a machine while the shopper is at it. In Amazon Go Grocery there is a much greater fresh offer and it now becomes possible to shop for the evening meal or even to stock the larder. Yet the look and feel of the store is nearly identical to an Amazon Go with the difference being the mechanics of allowing customers to have a ‘bigger’ shop with trolleys, reusable bright green bags and suchlike.


There are also elements of the Amazon-owned Whole Foods Market about what has been done with products from suppliers to that chain being used to boost the Go Grocery offer, although prices are generally lower than in the sister enterprise.
this still doesn’t break even with the economics but they look more and more likely to be able to develop that in the future . There will be a limit to how many they will launch but when they do sort out economics beware 7-11 in USA and TESCO Sainsbury’s in UK.

This may all still represent small change for Amazon, but increasingly the app-based walk in walk out food shop at scale looks a realistic possibility. UK retailers need to take note.

check out other Blogs on Amazon and on creating fast check-outs

1. Bezos masterclass in management through shareholder letters #1 /22

2. Zig while amazon zags

3. Amazon-Go leading the way

4. Robots make stores Better Simpler Cheaper

5. Frictionless C-Stores

 

 

Aligning around True North at Shopper Insights Conference

IMG_0144

I’ve just spent the day at Shopper Insights and Behaviours conference chairing the afternoon session and speaking in the morning session.

Theme of my presentation:
If organisations are going to transform using data , they need to be clear, unambiguous and aligned around an agreed vision , strategy and execution plan to be successful. All pointing together towards True North.

1. I laid out the what and how of transformation.
2. I talked through examples of how organisation have delivered transformational improvements to The Customer Experience , Customer Communication and Understanding of the Customer.
3. I then talked through my experience of how to deliver transformation in retailers, and how suppliers and retailers can work together to drive change. 

Other Key out-takes from the sessions :

Great case studies on solving strategic problems from

  1. Gary Seaman (RB) on developing environmental brands in cleaning.
  2. Chris Wrighton and Daniella Basain (Premier Foods)on turning around a declining MrKipling Brand
  3. Gizem Donmez (Nelsons) on starting with customer understanding in developing an omnichannel approach for Rescue Remedy
  4. Scott McPherson (Nairn’s) and Giorgio s Argyropoulos (Pepsi) on How Insights around missions need to be applied in the Convenience channel.

Panel Discussions with James Brett (Twinings) Maxime Dassonville (BIC) Neil Bellamy (General Mills) Sean McKee (Schuh) Daniella Bassein (Premier Foods) Dev Mukherji (PostOffice)  David Harrison (Coop) Caroline Walsh (Musgrave)

IMG_0111

Key uptakes from the sessions and the panels

A. Deep understanding of shopper Needs: many techniques exist to deliver a deep understanding of customers ( with lots of technical suppliers in Martech specs). Nothing really beats watching customers first hand in stores , but using all the different techniques starting it’s important to start with clarity on the problem you are trying to solve first.

B.Technology Suppliers know their stuff but aren’t clear what problem their product solve – they don’t know how to sell or make it easy to buy. “There is a myriad of Tech companies but there is no technology to help me understand customers in store” James Brett.

C. Insights being split into two types of work: Strategic and tactical.

  1. Strategic deep view of understanding customers : longer term projects where spend time thinking about the problem as well as how to solve it. Look at triangulation or longer term trends, qual, quant.
  2. Tactical view quick response using panels, Skype groups, observations in store.

D. Insight Leaders becoming agnostic about mechanic, bigger focus on understanding the problem and then working on the solution. There needs to more of a focus on howdo you get clear on problem you are trying to solve. There is a recognition that retailers aren’t totally clear and aligned on the problems, and there isn’t alignment between suppliers and retailers.

Really understanding the problem and creating alignment around a solution is the challenge

F. Insight into Action: insight leaders need to be commercial as well as customer to align the organisation around change.

G. Understanding Retailers and Partnering with them. There was a consistent message from many speakers and participants that this was a key issue for suppliers: Understanding How CPG work with retailers to grow categories was an interesting panel session Good case studies and discussions from Premier Food (Chris & Dani) Dev & Giorgos  and David from Coop. Neil Bellamy From General Mills recommendation was to get clear on a message and identify and work with multiple stakeholders in retailer. Dani recommendation was to start with customer and see how that also aligns with retailers’ strategies Dev suggested focusing on Missions and integrating from prestore to purchase.

Building a consistent story and presentation that drives sales was a challenge many suppliers had with retailers: best solved by having a supplier and retailer perspective underpinned with a razor like focus on a commercial customer focus.