2025-05-01T09:23:01Z

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In a bold move to redefine the operational structure of Amazon, CEO Andy Jassy has expressed his vision for the tech behemoth to adopt a startup-like approach, despite the company's vast workforce of over one million employees worldwide. During a recent address at the Harvard Business Review Leadership Summit, Jassy outlined his strategy to enhance organizational agility and foster a culture of innovation.

We want to flatten our organizations, to move faster and to drive more ownership, Jassy remarked, highlighting the challenges that large corporations face as they expand. He emphasized that as companies grow, they often fall victim to bureaucratic slowdowns that hinder their ability to respond swiftly to market demands. To combat this, Amazon plans to increase the ratio of individual contributors to managers by 15%, aiming to streamline operations and empower employees. Additionally, the company is implementing a mandatory five-day return-to-office policy, which Jassy believes will enhance collaboration and spur innovation.

While Jassy does not intend for Amazon to revert to its early, venture-backed days, his goal is clear: to recapture the nimble spirit that characterized the companys formative years. He outlined six key strategies that large organizations can adopt to cultivate a startup mentality:

1. Seek Solutions to Real Customer Problems: Jassy pointed out that many tech companies often become enamored with the technology itself rather than focusing on solving significant customer challenges. He emphasized that startups thrive on their ability to identify and address customer pain points, a lesson that Amazon intends to integrate into its operational ethos.
2. Hire a Lot of Builders: Another cornerstone of a successful startup is a strong culture of innovation, which Jassy defines as having a workforce filled with 'builders.' These employees are crucial because they not only understand customer experiences but also actively seek ways to enhance them. Jassy stressed that listening to customers is fundamental in this process, enabling teams to invent solutions that truly resonate.
3. Think Like an Owner: According to Jassy, instilling a sense of ownership in employees is vital. This means fostering an environment where employees feel accountable and make decisions as if they were directly responsible for the outcomes. What would I do if this were my money? Jassy encouraged leaders to ask themselves.
4. Move Quick: Streamlining processes is essential for maintaining speed in decision-making. Jassy reflected on his previous experiences at Amazon Web Services, where he frequently encountered CEOs lamenting their inability to act quickly due to their size. He asserted that an organizations ability to move swiftly is a leadership decision that involves identifying and removing obstacles that impede progress.
5. 'Be Scrappy': Emphasizing resourcefulness, Jassy stated that companies should not burden new projects with large teams from the outset. He recounted Amazons early days, where the computing service began with just 13 people. You can get going with a small number of people and build something that people actually find resonant, he said, encouraging ongoing iteration.
6. Take Risks: Lastly, Jassy acknowledged that as companies grow, they often become more risk-averse, which can stifle innovation. He highlighted the importance of fostering a culture where employees feel safe to take risks and potentially fail, as this mindset is essential for developing unique solutions. You have to be willing to take risks and be willing to fail sometimes, he stated, underscoring the necessity of daring to be different.

To date, Amazon has not provided a comment in response to inquiries from Business Insider regarding these initiatives. However, Jassys clear push towards a more agile, innovative company culture signals a pivotal moment for the tech giant as it seeks to retain its competitive edge in a rapidly changing market.