Lex Fridman: uncertainty

Transcript context

…It’s really a very simple, and I think age-old idea about renewal and rebirth and every day is day one. Every day you are deciding what you’re going to do and you are not trapped by what you were or who you were or any self-consistency. Self-consistency even can be a trap. And so day one thinking is we start fresh every day and we get to make new decisions every day about invention, about customers, about how we’re going to operate. Even as deeply as what our principles are, we can go back to that. It turns out we don’t change those very often, but we change them occasionally. And when we work on programs at Amazon, we often make a list of tenants. And the tenants are… They’re not principles, they’re a little more tactical than principles, but it’s the main ideas that we want this program to embody, whatever those are. And one of the things that we do is we put, “These are the tenets for this program and parentheses.” We always put, “Unless you know a better way.” And that idea, “Unless you know a better way,” is so important because you never want to get trapped by dogma. You never want to get trapped by history. It doesn’t mean you discard history or ignore it. There’s so much value in what has worked in the past, but you can’t be blindly following what you’ve done. And that’s the heart of day one, is you’re always starting afresh. And to the question of how to fend off day two, you said, “Such a question can’t have a simple answer,” as you’re saying. “There will be many elements, multiple paths, and many traps. I don’t know the whole answer, but I may know bits of it. Here’s a starter pack of essentials, maybe others come to mind. For day one, defense, customer obsession, a skeptical view of proxies, the eager adoption of external trends and high velocity decision-making.” So we talked about high velocity decision-making, that’s more difficult than it sounds. So maybe you can pick one that stands out to you as you can comment on. Eager adoption of external trends, high velocity decision-making, skeptical view of proxies. How do you fight off day two? Well, I’ll talk about… Because I think it’s the one that is maybe in some ways the hardest to understand, is the skeptical view of proxies. One of the things that happens in business, probably anything where you have an ongoing program and something is underway for a number of years, is you develop certain things that you’re managing to. The typical case would be a metric, and that metric isn’t the real underlying thing. And so maybe the metric is efficiency metric around customer contacts per unit sold or something like. If you sell a million units, how many customer contacts do you get or how many returns do you get? And so on and so on. And so what happens is a little bit of a kind of inertia sets in where somebody a long time ago invented that metric and they invented that metric, they decided, “We need to watch for customer returns per unit sold as an important metric.” But they had a reason why they chose that metric, the person who invented that metric and decided it was worth watching. And then fast-forward five years, that metric is the proxy.…

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