2017 Letter to Shareholders

Key ideas

Bezos argues rising customer expectations demand high standards, which are teachable and domain specific, and that teams often miss them by underestimating how much work quality takes.

1. 1

   Expect customers to keep wanting more

   Bezos writes that customer expectations only move up, and that today's surprise soon becomes ordinary. He senses this speeding up, possibly because information is so easy to get. He says there is no single way to stay ahead, but that high standards at every level of detail are a big part of it.

2. 2

   Standards can be taught by exposure

   Bezos asks whether you must hire for high standards, and answers that he believes you can teach them. He argues that newcomers adapt quickly to the standards around them, whether high or low. He believes stating a few core principles can speed this up.

3. 3

   Assume you have blind spots

   Bezos believes standards must be learned separately in each area rather than carrying across. He says that when he started Amazon he had high standards on inventing, customer care and hiring, but not on operational process, which his colleagues taught him. He says this should keep you humble, because you may not know where your standards are low.

4. 4

   Coach how long good work takes

   Bezos says reaching a standard requires recognizing what good looks like and having realistic expectations of the effort. A handstand coach his friend hired said people expect two weeks when it takes about six months, and that the wrong belief leads them to quit. Bezos sees the same with Amazon's six-page memos: weak ones often come from expecting a day or two when a good one may take a week or more.

5. 5

   Skill can sit elsewhere on the team

   Bezos argues an individual does not need the skill itself, at least within a team, comparing this to a football coach who does not throw. That person still has to recognize the standard and teach realistic scope. He adds that high standards help with recruiting and retention and protect work no one sees.

In Jeff’s words

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