The Amazon Leadership Principle “Think Big” is fundamental when executing Big Bets, as leaders must not only envision bold, transformative outcomes but also communicate this vision to inspire results. Thinking small, as the principle suggests, becomes a self-fulfilling prophecy. In Big Bets, where success hinges on ambition and innovation, leaders must look around corners for opportunities to serve customers in new ways. This mindset aligns with the Big Bet Leadership strategy of daring to envision large-scale outcomes while carefully managing the associated risks through smaller, strategic bets. Leaders who think big set the foundation for breakthrough innovations that drive lasting impact.
However, thinking big does not mean betting recklessly. In Big Bet Leadership, the concept of “Think Big, but Bet Small” emphasizes the importance of testing bold ideas through small, controlled experiments. Leaders must resist the temptation to make premature large-scale commitments without validating key risks and hypotheses first. This approach allows organizations to learn quickly, make adjustments, and reduce uncertainty before scaling the initiative. By breaking down a big vision into smaller, manageable bets, leaders ensure they can maintain both ambition and adaptability throughout the process.
Ultimately, leaders who think big create clarity and focus for their teams, empowering them to tackle bold challenges while minimizing unnecessary risks. The ability to manage this balance—pursuing large-scale opportunities with a series of smaller, iterative bets—is crucial to maintaining momentum and delivering results in a complex, high-stakes environment. By thinking big and betting small, leaders position their organizations to innovate boldly while avoiding the pitfalls of overinvestment and misaligned priorities.
Introduction: The Amazon Way of Thinking Big
“Think Big” is one of the most renowned of the Amazon leadership principles. It encourages leaders to have a bold vision, a mindset that goes beyond incremental improvements and instead targets transformative change. However, as I’ve explored in Big Bet Leadership, this principle doesn’t stand alone; it needs to be balanced with smart risk management—a concept I call “betting small.”
At Amazon, “Think Big” isn’t just a catchphrase; it’s a strategic imperative that has driven the company’s rapid expansion from an online bookstore to a global powerhouse. Yet, the principle’s brilliance lies in its application—not just thinking big but doing so through calculated, manageable steps that mitigate risk and maximize learning. This blog post delves into how Amazon’s “Think Big” principle is both a leadership guidepost and a crucial element of the Big Bet strategy, emphasizing experimentation as a pathway to innovation.
The Essence of “Think Big”
“Thinking Big” is about ambition, vision, and challenging the status quo. It requires leaders to dream beyond the current limitations of their business or industry and to imagine new possibilities that can reshape the future. At Amazon, this principle manifests in everything from their pursuit of cloud computing with AWS to their pioneering efforts in AI with Alexa. These initiatives weren’t about playing it safe; they were about seeing opportunities where others saw boundaries.
To think big, Amazon leaders are encouraged to consider the long-term implications of their decisions, focusing on creating value that may take years to fully materialize. Jeff Bezos famously said, “We’re willing to be misunderstood for long periods of time,” underscoring the company’s commitment to long-term, audacious goals that often challenge conventional wisdom.
Thinking Big, But Betting Small
While “Thinking Big” is crucial, it must be tempered with prudent risk management—this is where “Betting Small” comes into play. The concept of “Betting Small” aligns with what I call in Big Bet Leadership the process of rapid experimentation and learning. Instead of diving headfirst into a high-stakes venture with all resources committed, Amazon fosters a culture where big ideas are tested through small, manageable experiments. This approach minimizes risk while still allowing the organization to explore innovative ideas.
This method is about setting the stage for bold innovations without betting the farm on unproven concepts. It’s about learning fast, iterating quickly, and being ready to pivot when necessary. At Amazon, this is evident in their “two-way door” decision-making process, which allows teams to experiment with new ideas that can be reversed if they don’t work out—thereby reducing the cost of failure.
Case Study: AWS – A Big Bet That Started Small
A prime example of “Thinking Big, But Betting Small” at Amazon is the development of Amazon Web Services (AWS). AWS began as a small, internal project designed to help developers within Amazon manage their growing computing needs. The initial steps were small, experimental, and focused on solving specific internal problems. But the vision behind it was immense—Bezos and his team saw the potential to revolutionize how companies deploy and manage technology resources.
As AWS grew, so did Amazon’s commitment, but only after initial hypotheses were validated through smaller, controlled experiments. This approach allowed Amazon to refine their offering based on real-world feedback, gradually scaling AWS into the massive cloud computing platform it is today.
This methodical approach—starting small, learning, and then scaling—is a textbook application of “Thinking Big, But Betting Small.” It illustrates how even the most transformative ideas can (and should) begin with focused, low-risk experiments that inform and shape larger strategic bets.
The Intersection of Ambition and Risk
In Big Bet Leadership, I discuss how successful leaders navigate the intersection of ambition and risk. It’s not enough to simply have a big idea; you need to approach it in a way that aligns with the realities of execution. This means recognizing that not every aspect of a big idea is high risk, nor does every component need to be fully validated from the outset.
To manage this, leaders must identify the high-risk, high-value elements of their big ideas and focus their initial efforts there. This is what I refer to as “prioritizing risk and value.” By zeroing in on these elements first, leaders can de-risk their Big Bets early in the process, ensuring that when they do scale, they do so with confidence and clarity.
Practical Application: The Big Bet Experiment Planner
One of the tools I recommend in Big Bet Leadership for applying the “Think Big, But Bet Small” mindset is the Big Bet Experiment Planner. This tool helps leaders stack rank their hypotheses and design experiments that address the most critical risks first. The idea is to create a sequence of tests that build on one another, gradually reducing uncertainty and increasing confidence in the broader vision.
For example, if you’re developing a new product, your first experiment might be a low-cost prototype that tests customer interest. Based on those results, you could then refine the product’s features and launch a small-scale pilot. Each experiment provides data that informs the next step, ultimately guiding the decision of whether and how to scale the Big Bet.
This process not only mitigates risk but also accelerates learning, ensuring that big ideas don’t stagnate in endless planning cycles but instead move forward in a measured, deliberate way.
Balancing Velocity with Prudence
Another key principle from Big Bet Leadership that complements the “Think Big” mindset is maintaining velocity without sacrificing prudence. In high-stakes environments like Amazon, speed is often critical to success. However, speed without direction can lead to chaos. This is why creating clarity—a habit I emphasize in the book—is essential.
When you have a clear vision and a structured approach to experimentation, you can move quickly without losing focus. Amazon’s approach to innovation is built on this balance. They maintain a rapid pace of innovation by continuously iterating on their ideas, using data-driven insights to make informed decisions about when to accelerate and when to slow down.
Conclusion: Think Big, Bet Small, Win Big
The “Think Big” principle at Amazon is more than just a call to dream boldly; it’s a directive to pursue ambitious goals through careful, deliberate steps. By balancing big thinking with small, calculated bets, Amazon has been able to innovate at scale without succumbing to the risks that often derail large initiatives.
For leaders looking to emulate Amazon’s success, the key takeaway is to marry your ambition with disciplined experimentation. Use small bets to validate your ideas, prioritize high-risk elements early, and maintain clarity and velocity throughout the process. This approach not only reduces the likelihood of failure but also maximizes the chances that your Big Bets will pay off in a meaningful, transformative way.
In the end, “Thinking Big” is about more than just envisioning a better future; it’s about taking the right steps to make that future a reality—one small bet at a time.
Onward!
John
John Rossman is a writer, strategy advisor, and keynote speaker. Have him inspire and teach your team.
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