Ahmet Acar - Amazon.pdf

1. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. Process Excellence through Mechanisms Influencing beyond line of sight Ahmet Emre Açar Principal Advisor, Professional Services PEXCON 2022

2. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS There are many advantages to a customer-centric approach, but here’s the big one: Customers are always beautifully, wonderfully dissatisfied, even when they report being happy and business is great. Even when they don’t yet know it, customers want something better, and your desire to delight customers will drive you to invent on their behalf. Jeff Bezos 2016 letter to shareholders 2

3. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS “ ” Often, when we find a recurring problem, something that happens over and over again, we pull the team together, ask them to try harder, do better –essentially, we ask for good intentions. This rarely works... When you are asking for good intentions, you are not asking for a change... because people already had good intentions. But if good intentions don’t work, what does? Mechanisms work. - Jeff Bezos, February 1, 2008 All Hands Good Intentions don’t work. Mechanisms work.

4. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Leadership Mistakes 2 Mistakes that Leaders make when you put them under pressure: From good intentions to Mechanisms

5. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Mechanism INPUTS OUTPUTS TOOL ADOPTION INSPECTION ITERATION BUSINESS CHALLENGE

6. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS What are Mechanisms? Dissecting a Mechanism: working backwards Why do we use them at AWS? What are Elements of Mechanisms? How can you use them?

7. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS The Andon Cord is our mechanism to drive customer obsession in customer service, enabling service agents to pull defective products off the website without having to defer to managers, acting quickly to act on behalf of our customers. Mechanisms influence beyond Line of Sight

8. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS The wheel of fortune is a mechanism to ensure a good conduct in WBR, MBR and metrics meetings with multiple owners. It enforces readiness of all participants. Mechanisms solve Reoccurring Challenges

9. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Bar Raisers bring an objective perspective into an activity, to insist on high standards on mechanisms and to prevent bias from creeping in. Mechanisms focus on Business Outcomes

10. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Correction of Error is a mechanism for improving quality by documenting and addressing issues. You will want to define a standardized way to document critical root causes, and ensure they are reviewed and addressed. Mechanisms aim for Systemic Change

11. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Working Backwards is our mechanism for innovation, to drive customer obsession, to invent and simplify on behalf of our customers. Mechanisms Deliver Results

12. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS What are Mechanisms? Dissecting a Mechanism: working backwards Why do we use them at AWS? What are Elements of Mechanisms? How can you use them?

13. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Working Backwards Innovation is creativity with execution…

14. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS • Working Backwards - Inputs Who is the customer? What is the customer problem or opportunity? What is the most important customer benefit? How do you know what customers need or want? What does the customer experience look like?

16. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS PRFAQs drive experiments in stages 16 A Minimum Viable Product (MVP) is the version of a new product that brings back the maximum amount of validated learning about your customers with the least effort. A Minimum Lovable Product (MLP) is the version of a new product that will generate enough customer enthusiasm (delighted customers) for the product to rapidly climb up the adoption curve A Proof of Concept (POC) is an experiment to demonstrate the feasibility of a narrow set of assumptions. Prototypes are experiments to explore the desirability, feasibility or viability to gather data for decision making.

17. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS PRFAQ funding mechanism Batch Investment to experiment and mitigate risks 17 Funding is released in iterations as product teams demonstrate realization of value to the business and IT. Provides the stakeholders regular opportunities to assess value delivered and make decisions to continue, pivot, or stop investing. Incentivizes teams to deliver quality results quickly, as future funding cycles are not guaranteed Funding Cycle M L P M L P M L P Small Batch Delivery Cycle Jan May Sept $ $ $ Risk Risk

18. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS What are Mechanisms? Dissecting a Mechanism: working backwards Why do we use them at AWS? How do you create Mechanisms? When can you use them?

19. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Long-Range Planning Company Product / Service Business Unit / Product Portfolio OP1 / OP2 Narratives Strategy Narratives PR/FAQ, MLP Epics and Stories Feature Roadmaps Decisions at various levels… through common mental models and principles. • Tenets – a set of principles and believes that guides decision-making • Calculated Risk Taking – Many decisions and actions are reversible (i.e., 2-way door decisions) • Single-threaded owner / team – Customer intimacy and strong judgment • Dive Deep – Stay connected to the details, but be skeptical when metrics and anecdotes differ • Have Backbone; Disagree and Commit – Do not compromise for the sake of social cohesion; but once a decision is made, commit wholly System of Mechanisms

20. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Mechanisms at Team Level Common mechanisms have owners across teams and are applied broadly across Amazon. Each team can also create their own mechanisms which can scale through community of practice calls or other ways of adoption.

21. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Mechanism, not Mechanistic Process “Mechanistic” Examples are uninspected, unadopted tools or those that don’t convert inputs into the desired outputs. • NA Retail WBR (evolved to monthly) • NPI (deprecated) • Alert emails (e.g. pricing errors, CP negative shipping) Mechanisms are: 1) Are Complete Processes 2) Convert Inputs into Outputs 3) Are Assembled from Organizational Levers If points 1) and 2) lack in any way, you have the wrong levers.

22. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS IAT WBR Mechanism Mechanism Owner: AEA Proposed Date: Weekly Proposed Time: Tuesdays, 1:45pm to 3:15pm Scheduler: Practice Manager Inputs: Data driven updates from business owners Outputs: Improved decision making, removal of blockers across teams, accelerations of best practices and learnings Tools: Chime Call, Calendar Series, WBR Quip Doc, Asana Business Update Dashboard, OP Narrative - WBR Document: Team goals, OP1 tracking metrics, Headcount table, Action items log - BU Dashboard: Goals, Top input goals, Top output goals, Top dependencies, Launch Calendar, KPI - Narrative: Key callouts, business trends, and/or learnings, Major risks, issues, and challenges Proposed Attendees: Required List (practice members), Guest List Adoption: Mandatory Attendance (unless you know of a better mechanism) Inspection: Quarterly review in lead meeting: What is going well? What is going poorly? What do we want to change?

23. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. What are your Business Challenges?

25. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Start with the Challenge INPUTS OUTPUTS TOOL ADOPTION INSPECTION ITERATION BUSINESS CHALLENGE

26. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Work Back from the Outputs… INPUTS OUTPUTS TOOL ADOPTION INSPECTION ITERATION BUSINESS CHALLENGE

27. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS …but focus on the Inputs. INPUTS OUTPUTS TOOL ADOPTION INSPECTION ITERATION BUSINESS CHALLENGE

28. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS TOOLS Transform inputs to outputs Can be simple or complex Help accomplish large goals Only as good as its adoption Constructed from Organizational Levers

29. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS ADOPTION Who are the stakeholders? Whose contribution do you need? What could you use to drive adoption? What are the indicators of adoption?

30. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Convert Inputs into Outputs Are Assembled from Organisational Levers Are Complete Processes - Is it delivering the desired outputs? - Are we auditing regularly? - Are we making progress and / or improvements? - Does the data drive decisions? INSPECTION

31. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS ITERATION Build: experiment with different tools that pull different levers. Adopt: starts when the tool is working, and worth pushing out to a larger audience. Inspect: occurs when the tool is broadly adopted. Check the mechanism health and adjust at each stage.

33. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Solve Business Challenges What are you solving? What levers will you pull? Who will support you? How will you get support for it? How will you scale its use? How will you inspect the success?

34. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Organisational Levers Mental Models - Ideas about how the world works, beliefs - Leadership Principles, Tenets - Culture, World View Goals - Objectives of any scope - Priorities: what matters when truly constrained? - Forecast, evaluate, motivate Organization Structure - Who has formal authority and responsibility? - Tall vs Flat, Single-threaded vs Multi-tasked - Single-threaded Owners Policies & Rewards - Policy vs. Individual Judgement - Align positive + negative consequences - Drivers of recognition, compensation, satisfaction Process Steps - Operation of the Mechanisms - Rhythm of Standardization and Improvement - Methods of Improvement Message Flow - Who needs what information? How do they get it? - Signal vs. Noise – Attention is constrained - Feedback Loops, Dive Deep Metrics - Manage inputs, monitor outputs - Direct vs. Proxy - Patterns, Outliers and Anectodes Resources - Allocation of money and people to work - Technology, Job Aids, Tools - Identify the irreducible inputs

35. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS How do you establish Mechanisms in your Organisation?

36. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. Thank you! 36 acaahmet@amazon.com

37. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Turn inputs into outputs Mechanism Inputs Outputs CS Andon Cord Customer Reported Defects Halted Sales of Defective Items, Attention of Business Leaders to Research and Resolve Root Cause Weekly Business Reviews (WBR) Operational Data Business Decisions which improve operations, aligned with Tenets Working Backwards Customer Insights, Initial Ideas Clear Product Vision, Well-Informed Decisions on Customer Insights Interview Loop Candidates New Amazonians Startup Connections Well-Informed Use Case, Building Blocks Startup Partnership, Building Block Solutions Correction of Errors Unintended Errors Root Cause Solutions

45. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Organisational Levers Mental Models - Ideas about how the world works, beliefs - Leadership Principles, Tenets - Culture, World View Goals - Objectives of any scope - Priorities: what matters when truly constrained? - Forecast, evaluate, motivate Organization Structure - Who has formal authority and responsibility? - Tall vs Flat, Single-threaded vs Multi-tasked - Single-threaded Owners Policies & Rewards - Policy vs. Individual Judgement - Align positive + negative consequences - Drivers of recognition, compensation, satisfaction Process Steps - Operation of the Mechanisms - Rhythm of Standardization and Improvement - Methods of Improvement Message Flow - Who needs what information? How do they get it? - Signal vs. Noise – Attention is constrained - Feedback Loops, Dive Deep Metrics - Manage inputs, monitor outputs - Direct vs. Proxy - Patterns, Outliers and Anectodes Resources - Allocation of money and people to work - Technology, Job Aids, Tools - Identify the irreducible inputs - Start manual, automate

46. © 2021, Amazon Web Services, Inc. or its affiliates. All rights reserved. Amazon Confidential and Trademark. PROCESS EXCELLENCE WITH MECHANISMS Conflicting Mental Models For Against Mental Models Goals Organization Structure Policies & Rewards Process Steps Message Flow Metrics Resources Mental Models Goals Organization Structure Policies & Rewards Process Steps Message Flow Metrics Resources

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