Amazon Mechanisims

Annual Planning Process

S Team Goals Process ( Seniors VP)

Amazon Compensation Plan - Aligns Incentive of what's best for the customers and the company over the long term

Autonomous Single Threaded Teams - Nimble, Quickly, minimum friction, autonomy paired with company precise tasks and goals

Begin in the Summer 4 to 8 weeks

S-Team sets High Level Expectations and Goals

List of Detail Objectives (Goals by Geography, and Unit metrics)

Groups develop granular operation plan, Op1, bottom up proposals.

Narrative Process, Components of OP1

Assessment of past performance, including goals achieved, goals missed, and lessons learned

Key Initiative for the following year

Detail Income Statement

Request and Justifications for resources

Groups work with Finance and HR counterparts to create the plan and present them to leaders ( Directors, S Teams)

Panel reconciles top bottom goals, with bottom up proposals (Rework Plan if necessary)

Op1 is finished before the fall Holiday rush.

In January, Op1 is adjusted to reflect results and trajectory, this final plan is Op2

Finalize objectives for the year - Revenue, Costs and performance (Metrics are agreed)

Op2 makes it crystal clear, commitment, strategy and resources.

Changes to Sp2 require Approval

Select S-Team Goals from Proposals. Most important, goals to prioritize.

S-Team Goals: Large in number, detail, aggressiveness

Input focus metrics that measure the specific activities teams need to perform that if achieved they will yield desired business results

S-Team Goals: Specific, Measurable, obtainable, relevant and timely. Smart.

Amazon expect 3/4 to be fully achieved. Bar to low if more achieved.

Goals are aggregated and track by team

Quarterly reviewed. Scheduled at rolling basis.

Focus on Execution

Track - Green=On Track, Yellow= Danger, Red=Not achievable

Align was important for the year

Review cadence helps create alignment.

Max Salary for all employees is 160K

Compensation tied to long term value of the company

Simple - oriented to long term customer value

Equity focus.

Frugality = no extra points for budgets, size.

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