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Bill Carr

Episode #35

Co-author of Working Backwards

Working Backwards, LLC

🎯Product Strategy👥Team & Culture📈Growth & Metrics

📝Full Transcript

16,519 words
Bill Carr (00:00:00): ... Jeff would say, we took it as an article of faith. If we served customers well, if we prioritized customers and delivered for them, things like sales, things like revenue and active customers and things like the share price and free cash flow would follow. So therefore, when we're making a decision thinking about a problem, we're going to start with what's best for the customer and then come backward from there. That informs what's the work you have to do to then create this new solution for customers. Lenny (00:00:33): Today my guest is Bill Carr. Bill is the co-author of the book Working Backwards, which is a synthesis of the biggest lessons that Bill and his co-author learned from their many years at Amazon. Bill joined Amazon just five years after it was founded, stayed there for 15 years where he worked on the books business, and then as VP of Digital Media, launched and managed the company's global digital music and video businesses, including Amazon Music, Prime Video, and Amazon Studios. After Amazon, Bill was an executive in residence at Maveron, an early stage VC firm, then chief operating officer at OfferUp. And these days, Bill runs a consulting firm called Working Backwards, LLC, where he and his co-authored, Colin Breyer, help growth stage and public companies implement the many practices developed at Amazon. (00:01:20): In our conversation, we go many levels deep on how to actually implement a number of the practices and ways of working that helped Amazon become the success that it is today, including the process of how to actually work backwards, how to organize your team with a single-threaded leader, how to divide up your metrics into input and output metrics, how to practice disagreeing and committing, how to implement the Bar Raiser program in your hiring process and so much more. (00:01:47): Huge thank you to Ethan Evans for making this episode possible and introducing me to Bill. With that, I bring you Bill Carr, af...

📚Methodologies (4)

🎯 Product Strategy

A product development process that starts with the customer by writing a Press Release and FAQ documents before any coding begins. This ensures the product solves a real customer problem and forces clarity of thought.

Core Principles

  • 1.Work backwards from the customer, not forward from capabilities.
  • 2.Write a future-dated Press Release to crystallize the value proposition.
  • 3.Create an FAQ to address internal (feasibility) and external (customer) questions.
  • +1 more...

"We're going to start with what's best for the customer and then come backward from there."

#pr/faq#product#validation
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👥 Team & Culture

An organizational model where a single leader is fully accountable for a specific business goal and controls the cross-functional resources (engineering, product, marketing) needed to achieve it, minimizing external dependencies.

Core Principles

  • 1.Program orientation over Project orientation.
  • 2.Autonomy creates speed and agility.
  • 3.Remove dependencies to reduce coordination tax.
  • +1 more...

"The best way to fail at inventing something is to make it somebody's part-time job."

#single-threaded#leadership#team
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📈 Growth & Metrics

A management focus on 'Input Metrics' (controllable activities like selection, price, speed) rather than 'Output Metrics' (lagging indicators like revenue, stock price), often conceptualized as a Flywheel.

Core Principles

  • 1.Outputs are lagging and often distracting.
  • 2.Inputs are controllable and causal.
  • 3.Focusing on customer experience inputs drives the growth flywheel.
  • +1 more...

"If we served customers well... things like sales, revenue... and share price... would follow. We took it as an article of faith."

#controllable#inputs#growth
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👥 Team & Culture

A quality control mechanism in the hiring process involving a designated 'Bar Raiser'—an interviewer from outside the hiring chain with veto power—who ensures the candidate is better than 50% of the current employees in that role.

Core Principles

  • 1.Hire for the long term, not urgent need.
  • 2.Objective evaluation against Leadership Principles.
  • 3.Third-party objectivity (outside hiring chain).
  • +1 more...

"We had new people hiring new people hiring new people... so what information are they using to make these hires?"

#raiser#hiring#mechanism
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