LeSS Talks: Amazon’s Product Operating Model: A Peek Behind The Curtain, with James Gunaca

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Quick recap
James Gunaca, a veteran product manager, shared insights into Amazon’s product operating models and emphasized the importance of adapting strategies to context while acknowledging both successes and failures. He discussed common myths about working at Amazon, clarified the company’s approach to product launches and documentation, and shared experiences across different teams and periods. James concluded by reflecting on effective product management practices, the evolution of Amazon’s culture, and the importance of balancing rigid processes with flexibility in software development.

James, a veteran in product management and digital marketing, shared insights into Amazon’s product operating models, emphasizing that no single model is perfect and teams should adapt strategies to their context. He highlighted Amazon’s success with the Prime subscription, which was a result of iterative improvements and customer-centric thinking. James also discussed his extensive experience working on global products like Amazon Echo and AppleCare Plus, and encouraged attendees to connect with him for further discussions.

Amazon’s Successes and Failures Journey
James shared Amazon’s journey, highlighting three major successes: the launch of Amazon Prime, the development of AWS, and the success of Amazon Echo. He also discussed three notable failures: the Fire Phone, Amazon’s foray into the restaurant delivery business, and the Amazon Scout drone project. James emphasized that while Amazon is known for its successes, it has had many failures, and that a culture of experimentation and quick iteration was crucial to the company’s innovation.

Amazon Work Myths Clarified
James discussed common myths about working at Amazon, such as the lack of PowerPoint presentations and the company’s opposition to deadlines. He clarified that while PowerPoint is not used for critical decision-making, it is still utilized for presentations and all-hands meetings. James also addressed the myth that Amazon does not use dates, explaining that deadlines are integral to driving accountability and progress in various business reviews. Lastly, he emphasized that while business outcomes are Amazon’s primary goal, customer obsession is a key component of their strategy.

Amazon’s Product Launch Strategy
James discussed Amazon’s approach to product launches and documentation. He explained that while the company optimizes for press coverage on launch day, the primary focus is on customer conversion and experimentation in the long term. James also described the PRFAQ document, a 6-page template used for major product decisions and investments. He noted that while these documents are commonly used, they are not practical for every small product change, and different teams may use various tools for roadmapping.

Amazon’s Reality: Constraints and Hiring
James discussed his experiences working at Amazon, challenging the perception of the company as having unlimited resources and the best tools. He explained that teams are often tightly constrained, with limited engineering resources and inadequate tools, such as collaborative spreadsheets until 2021. James also highlighted inconsistencies in Amazon’s hiring practices, noting that not all employees are exceptional, and encouraged others to validate assumptions about working at large tech companies by speaking with current or former employees. He concluded by introducing a discussion on different product operating models based on his experiences in three different divisions at Amazon.

Amazon Echo Development Journey
James discussed the development and discovery process of the Amazon Echo product from 2015 to 2019. Initially, due to secrecy, there was no external customer discovery, but internal beta testing with NDA-bound employees was conducted. Later, customer research and surveys were used for continuous discovery. James also explained the strategy of leveraging insights from other Amazon device businesses and the unique delivery process, which involved weekly feature updates and a Friday email campaign to customers, with Jeff Bezos reviewing the content beforehand.

Amazon’s Product Management Evolution
James shared his experience working at Amazon across different teams and periods, highlighting significant organizational and cultural differences. He described the early days of a successful product launch during Prime Day 2015, which led to rapid team growth, and contrasted this with a later role in the video games and software business, where limited resources and high tech debt created challenges. James emphasized the importance of a well-defined product operating model, clear strategy, and strong relationships between product and tech teams, while noting that no company has a perfect model at scale. He concluded by discussing his work on an internal search product for employees and the changes at Amazon leading up to his departure, underscoring the need for adaptability and continuous improvement in product management.

Amazon’s Product Management Insights
James shared insights on effective product management practices, emphasizing the importance of strong document writing for sharpened thinking, prioritizing business value over customer value, and clear ownership of tasks. He highlighted Amazon’s approach to accountability and the challenges of navigating its large organizational structure. James also discussed the evolution of Amazon’s culture, distinguishing between company-wide and team-specific cultures, and noted the consistency of the Amazon Leadership Principles across the company.

Amazon’s Shift in Investment Strategy
James shared his experiences working at Amazon, highlighting both positive and challenging aspects. He noted a shift in the company’s approach to big bets and investments, observing a move away from risky, innovative projects to more conservative decisions. James expressed that while Amazon remains successful and valuable for some careers, the company’s current pace and rigidness may impact future performance. He emphasized that these opinions were his own and not representative of the company’s official stance.

Balancing Automation and Long-Term Innovation
James discussed the importance of automated testing and continuous integration in software development, emphasizing the need to balance rigid processes with flexibility. He shared his experience working at Amazon and expressed concern about the company’s current focus on short-term value over long-term innovation. James suggested that a company of Amazon’s scale should prioritize making bold bets and investing in long-term value, rather than clamping down on operations and focusing solely on quarterly results.