{"id":115900,"date":"2023-10-25T10:43:00","date_gmt":"2023-10-25T14:43:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=115900"},"modified":"2023-10-30T10:33:00","modified_gmt":"2023-10-30T14:33:00","slug":"jeff-bezos-leadership-style","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/","title":{"rendered":"Jeff Bezos&#8217;s Leadership Style: Looking Ahead to the Future"},"content":{"rendered":"\n<p>What&#8217;s Jeff Bezos&#8217;s leadership style? How does Amazon stay in the lead in the market?<\/p>\n\n\n\n<p>To maintain Amazon&#8217;s market leadership, Bezos and the rest of his leadership team focus on the company&#8217;s success in the future, not on its current quarterly statements. Bezos explains his insistence on making decisions that pay out in the long run.<\/p>\n\n\n\n<p>Check out how Bezos makes judgment calls to be the best leader for Amazon.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-taking-the-long-view\"><strong>Taking the Long View<\/strong><\/h2>\n\n\n\n<p>Jeff Bezos&#8217;s leadership style can be seen as early as Bezos\u2019s first letter to shareholders in 1997. Back then, he warned investors that <strong>Amazon would often engage in practices that incurred short-term losses.<\/strong> The point was to quickly take a lead in the market, which could only be done by building Amazon\u2019s brand, growing its number of repeat, loyal customers, and encouraging more and more sales through its site. He acknowledged that for purely technical reasons, online shopping in the \u201990s was still frustrating, so Amazon made up for that by reducing prices and increasing its selection. Nevertheless, the company had to be careful when cutting prices to minimize its losses as it grew.<\/p>\n\n\n\n<p>(Shortform note: In general, new businesses should expect to lose money for several years before becoming profitable. That doesn\u2019t mean that the company\u2019s founders or investors will lose money during that time. Business owners may pay themselves a salary <a href=\"https:\/\/smallbusiness.chron.com\/average-time-reach-profitability-start-up-company-2318.html\" target=\"_blank\" rel=\"noreferrer noopener\">as part of their company\u2019s regular expenses<\/a>, and investors may receive fixed interest payments on their investments as the company grows. Even successful companies <a href=\"https:\/\/www.freshbooks.com\/hub\/startup\/how-long-does-it-take-business-to-be-profitable\" target=\"_blank\" rel=\"noreferrer noopener\">don\u2019t record profits for two or three years<\/a>, although Bezos reports that Amazon took over five years to reach that goal.)&nbsp;<\/p>\n\n\n\n<p>Bezos says that Amazon executives spend more time setting customer service goals than they do poring over financial reports, because creating <a href=\"https:\/\/www.shortform.com\/blog\/how-to-create-value-for-customers\/\">value for customers<\/a> results in greater business returns over the long haul. Short-term speculators don\u2019t appreciate this mindset, but <strong>Bezos believes that good investors think like owners<\/strong> and should therefore be on the same wavelength regarding Amazon\u2019s long-term ambitions.<\/p>\n\n\n\n<p>(Shortform note: Bezos\u2019s attitude toward long-term investors reflects the guiding philosophy of business mogul Warren Buffett. In <a href=\"https:\/\/shortform.com\/app\/book\/the-essays-of-warren-buffett\/1-page-summary\" target=\"_blank\" rel=\"noreferrer noopener\"><em>The Essays of Warren Buffett<\/em><\/a>, he drives home the idea that <a href=\"https:\/\/shortform.com\/app\/book\/the-essays-of-warren-buffett\/1-page-summary#how-to-invest\" target=\"_blank\" rel=\"noreferrer noopener\">owning stock means owning a piece of a real-world business<\/a>, which he advises holding on to and <a href=\"https:\/\/www.shortform.com\/blog\/accepting-responsibility\/\">taking responsibility<\/a> for so long as the business is well-operated and produces a steady rate of return. Buffett famously derides short-term traders who treat investments like gambling chips. Bezos, like Buffett, places value in investors who prioritize <a href=\"https:\/\/www.shortform.com\/blog\/long-term-business-goals\/\">long-term business goals<\/a> over short-term fluctuations in the market.)<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-making-long-term-decisions\">Making Long-Term Decisions<\/h3>\n\n\n\n<p>The tricky part about planning ahead is that it\u2019s impossible to <a href=\"https:\/\/www.shortform.com\/blog\/no-one-can-predict-the-future\/\">predict the future<\/a>, even with all the customer data and financial projections in the world. Therefore, Bezos admits that <strong>many long-term decisions boil down to judgment calls.<\/strong> When making a gamble\u2014such as whether to experiment with a new service or build a new distribution center\u2014Bezos uses the customers\u2019 interest as his guiding star, assuming that if something Amazon does results in better deals for customers, it will eventually benefit Amazon too, even if the returns won\u2019t be evident for years. Though some of these bets have been controversial\u2014such as sharing website space with third-party vendors\u2014Bezos\u2019s judgment has paid off more often than not.<\/p>\n\n\n\n<p>(Shortform note: In <a href=\"https:\/\/shortform.com\/app\/book\/blink\" target=\"_blank\" rel=\"noreferrer noopener\"><em>Blink<\/em><\/a>, Malcolm Gladwell backs up Bezos\u2019s assertion that intuitive judgments can be as strong as slow, deliberate, well-reasoned decisions. Gladwell explains that when using intuition, <a href=\"https:\/\/shortform.com\/app\/book\/blink#benefits-of-snap-judgments\" target=\"_blank\" rel=\"noreferrer noopener\">our minds perceive patterns based on snapshots of data<\/a> while disregarding extraneous details. Intuition can be influenced by unconscious bias, but Gladwell argues that <a href=\"https:\/\/shortform.com\/app\/book\/blink\/part-5\" target=\"_blank\" rel=\"noreferrer noopener\">making good intuitive decisions is a skill you can improve<\/a> through practice and learning to recognize when gut-based decisions are and aren\u2019t appropriate. For Bezos, running a trillion-dollar business surely provides opportunities for both.)&nbsp;&nbsp;&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What&#8217;s Jeff Bezos&#8217;s leadership style? How does Amazon stay in the lead in the market? To maintain Amazon&#8217;s market leadership, Bezos and the rest of his leadership team focus on the company&#8217;s success in the future, not on its current quarterly statements. Bezos explains his insistence on making decisions that pay out in the long run. Check out how Bezos makes judgment calls to be the best leader for Amazon.<\/p>\n","protected":false},"author":14,"featured_media":37986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,14,33],"tags":[1301],"class_list":["post-115900","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-management","category-people","tag-invent-and-wander","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Jeff Bezos&#039;s Leadership Style: Looking Ahead to the Future - Shortform Books<\/title>\n<meta name=\"description\" content=\"For Jeff Bezos, short-term planning is never an option. 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Discover how Jeff Bezos&#039;s leadership style pushes Amazon into the future.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/\" \/>\n<meta property=\"og:site_name\" content=\"Shortform Books\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-25T14:43:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-30T14:33:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/s3.amazonaws.com\/wordpress.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/jeff-bezos.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"876\" \/>\n\t<meta property=\"og:image:height\" content=\"563\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Katie Doll\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Katie Doll\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/\"},\"author\":{\"name\":\"Katie Doll\",\"@id\":\"https:\/\/www.shortform.com\/blog\/#\/schema\/person\/c3e1b539e89423b544ede91ab2bff937\"},\"headline\":\"Jeff Bezos&#8217;s Leadership Style: Looking Ahead to the Future\",\"datePublished\":\"2023-10-25T14:43:00+00:00\",\"dateModified\":\"2023-10-30T14:33:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/\"},\"wordCount\":662,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/jeff-bezos.jpg\",\"keywords\":[\"Invent and Wander\"],\"articleSection\":[\"Business\",\"Management\",\"People\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/\",\"url\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/\",\"name\":\"Jeff Bezos's Leadership Style: Looking Ahead to the Future - Shortform Books\",\"isPartOf\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.shortform.com\/blog\/jeff-bezos-leadership-style\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.shortform.com\/blog\/wp-content\/uploads\/2021\/06\/jeff-bezos.jpg\",\"datePublished\":\"2023-10-25T14:43:00+00:00\",\"dateModified\":\"2023-10-30T14:33:00+00:00\",\"description\":\"For Jeff Bezos, short-term planning is never an option. 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