What It Takes: Lessons in the Pursuit of Excellence
Stephen Schwarzman's book, "What It Takes," tells the inspiring story of Blackstone's incredible growth. Reading the story was fascinating, especially how much the underlying culture at Blackstone aligns with Amazon's leadership principles. It should not be surprising, as the most successful people and organizations often share similar core values. In this case, the alignment is particularly close. It is no accident that both companies have achieved such incredible success. If culture eats strategy, then both organizations' principles set the table for a huge meal. I will highlight a few areas below where I found significant alignment between the organizations, offering lessons we can apply to grow and build cultures in other organizations.
Customer Obsession
At Amazon, their primary focus is always the customer. This principle mirrors Blackstone's approach, where prioritizing clients' interests is paramount. Both companies recognize that obsessing over customers or clients drives long-term success and creates immense value.
For instance, Amazon developed the Kindle based on deep customer insights, anticipating needs that customers hadn't yet articulated. Similarly, Blackstone's and Stephen Schwarzman's dedication to long-term relationships over short-term profits underscore their client-first mindset. I recall the early days of the Delivery Service Provider program, where we spent countless hours understanding owner and driver preferences and pain points. This dedication to truly understanding and addressing customer needs is a hallmark of both organizations.
Ownership
Ownership at Amazon means taking responsibility for outcomes and thinking long-term, whether you own the area directly or not. This culture of ownership ensures that everyone feels accountable for the company's success. Blackstone fosters a similar environment. Schwarzman encourages employees to act like owners, taking initiative and being accountable for their decisions. His success stories are filled with instances where he stepped into leadership vacuums to create value, reinforcing the importance of ownership.
Hiring and Development
Amazon is known for its rigorous hiring process and commitment to developing top talent through structured mechanisms such as the Bar Raiser program. Amazon operates as a meritocracy where builders are rewarded for taking risks and delivering beyond expectations. Blackstone shares this belief in attracting and nurturing the best minds. Schwarzman discusses meticulous recruitment strategies and continuous investment in employee development as crucial to Blackstone's success. Specifically, hiring "10 out of 10s" drives disproportionate value across teams, whereas a typical person may only bring value to their immediate team.
High Standards
At Amazon, they insist on the highest standards, pushing themselves and their teams to deliver quality. This pursuit of excellence is a hallmark of Blackstone's culture as well. Schwarzman highlights the relentless drive for perfection and the refusal to accept mediocrity. High standards and expectations are critical to both companies' outcomes. Amazon's operational emphasis on statistical process control, defect reduction, and continuous improvement exemplifies this mindset. Similarly, Blackstone's commitment to excellence ensures that they consistently deliver superior results for their clients.
Trust
Earning trust through integrity and transparency is crucial at Amazon. Blackstone reflects a similar ethos, emphasizing honesty and ethical behavior. You have no chance with customers if they don't trust you. Trust is measured as the sum of your actions over time. At Amazon, we build trust by being transparent with our customers and always striving to meet their needs. Blackstone's commitment to ethical behavior and integrity ensures long-term relationships with clients and partners.
Stephen Schwarzman's "What It Takes" offers a deep dive into the culture that propelled Blackstone to the top of the private equity world, showcasing the colorful adventures along the way. Reflecting on Amazon's leadership principles, it's clear that both organizations thrive on customer obsession, ownership, high standards, and a relentless drive for results. Both companies were incredible places to be in the last few decades. By understanding and adopting these principles, we can build strong, successful cultures in our own organizations.