Amazon CEO Jassy Overhauls Employee Evaluations to Reinforce Leadership Principles

Amazon's CEO, Andy Jassy, has introduced a notable shift in the company's employee performance evaluation process. Beginning this quarter, corporate managers are tasked with evaluating employees based on their adherence to Amazon's 16 Leadership Principles. These principles, which include values such as "Bias for Action," "Customer Obsession," and "Frugality," are intended to guide behavior, decision-making, and innovation within the tech giant. This formalization of the evaluation process aims to strengthen the link between employee performance and the company's cultural values.

This change is part of Jassy's ongoing efforts to revitalize Amazon's corporate culture, which has faced challenges due to rapid growth and the shift to remote work during the pandemic. Jassy's vision is to transform Amazon into the "world's largest startup," emphasizing agility, innovation, and a customer-centric approach. His initiatives include reducing bureaucracy, increasing the ratio of individual contributors to managers, and encouraging in-office work to foster a stronger sense of company culture.

Jassy's approach has been systematic and consistent. He has released detailed tutorials on the Leadership Principles, mandated in-office work for corporate staff, and encouraged the elimination of middle management layers. These efforts are designed to clarify decision-making processes, increase employee ownership, and ultimately enhance customer experiences. Jassy's annual letter to shareholders highlighted his goal of operating like the world's largest startup, using internal mechanisms to identify and cut red tape.

Last year, Jassy released an hour-long video tutorial explaining the meaning and interpretation of each of the company's 16 Leadership Principles. In the fall, he and his leadership team ordered corporate staff back to the office five days a week, believing that new employees cannot fully learn or live the company's principles without daily observation and practice. Additionally, Jassy mandated that company leaders reduce layers of middle management and increase the ratio of individual contributors to managers by 15%.

Jassy's efforts are driven by the recognition that the remote work boom and rapid hiring have impacted Amazon's culture and operations. As documented in a deep investigation, the company's famed leadership principles began showing signs of fraying. Despite the challenges, Jassy and his team are committed to fortifying Amazon's culture. The formalization of employee evaluations based on Leadership Principles is a significant step in this direction, although it may present challenges due to the subjective nature of the task. Jassy's recent track record indicates that this will not be his last attempt to strengthen Amazon's cultural foundation.