Working Backward (Amazon)

1. Overview

2. Core Principles

3. Key Practices

4. Application Context

5. Implementation

6. Evidence & Impact

7. Cognitive Era Considerations

8. Commons Alignment Assessment

9. Resources & References

1. Overview

The Working Backward method is a product development and innovation management pattern that originated at Amazon. It is a customer-centric approach that inverts the traditional product development process. Instead of starting with an idea for a product and then figuring out how to sell it to customers, the Working Backward process starts with the customer and their needs. The core idea is to define the customer experience first and then work backward from that to develop the product.

This pattern is deeply embedded in Amazon’s culture and is credited as a key driver of the company’s sustained innovation and customer-centricity. It is a systematic way to vet new ideas and ensure that every new product or service is designed with the customer’s best interests at heart. The process forces teams to think through the customer’s perspective and to articulate a clear and compelling vision for the product before any significant resources are invested in its development.

The principal tool of the Working Backward method is the PR/FAQ document, which stands for Press Release and Frequently Asked Questions. Before writing any code or building a prototype, the product team writes an internal press release announcing the finished product. This press release is written for the target customer and describes the product’s features and benefits in a way that is easy to understand and compelling. The FAQ section of the document anticipates and answers the tough questions that customers, stakeholders, and internal teams might have about the product.

By starting with the end in mind, the Working Backward method helps teams to clarify their thinking, align on a shared vision, and avoid costly mistakes. It is a powerful pattern for any organization that wants to foster a culture of customer obsession and drive innovation from the bottom up.

2. Core Principles

The Working Backward method is founded on a set of core principles that guide the product development process and ensure that it remains customer-centric and effective. These principles are deeply ingrained in Amazon’s culture and are essential for the successful application of the pattern.

Customer Obsession

The most fundamental principle of the Working Backward method is customer obsession. This principle dictates that the process must always start with the customer and their needs. Rather than focusing on competitors or internal capabilities, teams are encouraged to develop a deep understanding of their customers and to work tirelessly to earn and keep their trust. This customer-centric approach is the foundation of the entire Working Backward process and is reflected in every step, from the initial press release to the final product.

Start with the End in Mind

The principle of starting with the end in mind is embodied in the practice of writing the press release and FAQ before any development work begins. By envisioning the final product and how it will be announced to the world, teams are forced to think critically about the customer value proposition and to articulate a clear and compelling vision for the product. This practice helps to ensure that the team is aligned on a common goal and that the final product will meet the needs of the customer.

Clarity of Thought

The Working Backward method emphasizes the importance of clarity of thought. The process of writing the PR/FAQ document is a rigorous intellectual exercise that forces teams to think through every aspect of the product, from its features and benefits to its business model and go-to-market strategy. This process of writing, revising, and refining the PR/FAQ helps to ensure that the team has a deep and shared understanding of the product and that all potential challenges and opportunities have been considered.

Iterative and Collaborative Process

The development of the PR/FAQ is an iterative and collaborative process. The document is not written in isolation but is shared with a wide range of stakeholders, including engineers, marketers, and senior leaders. This collaborative process allows for diverse perspectives to be incorporated into the product vision and helps to ensure that the final product is well-vetted and has broad support within the organization. The PR/FAQ is revised multiple times based on feedback from these stakeholders, resulting in a more robust and well-thought-out product concept.

3. Key Practices

The Working Backward method is not just a set of principles; it is a collection of specific practices that teams can use to develop innovative and customer-centric products. These practices provide a structured and systematic way to apply the core principles of the pattern.

Writing the PR/FAQ

The central practice of the Working Backward method is the creation of the PR/FAQ document. This document consists of two parts: a press release (PR) and a set of frequently asked questions (FAQ).

• The Press Release (PR): The press release is a one-page narrative that announces the product to the world. It is written from the perspective of the company and is intended to be read by the target customer. The PR should be clear, concise, and compelling, and it should articulate the product’s value proposition in a way that is easy to understand. It typically includes the product’s name, the target customer, the problem the product solves, the key benefits for the customer, a quote from a company leader, and a call to action.

• The Frequently Asked Questions (FAQ): The FAQ section of the document anticipates and answers the questions that customers, stakeholders, and internal teams might have about the product. There are two types of FAQs: external and internal.

  • External FAQs: These are questions that a customer might ask, such as “How much does it cost?”, “How do I get started?”, or “What if I have a problem?”.
  • Internal FAQs: These are questions that internal stakeholders might ask, such as “What are the engineering challenges?”, “What is the go-to-market plan?”, or “What are the financial projections?”.

The Narrative Meeting

Once the PR/FAQ document has been drafted, it is reviewed in a narrative meeting. This is a structured meeting where a group of stakeholders comes together to read and discuss the document. The meeting begins with a period of silent reading, during which each participant reads the PR/FAQ to themselves. This is followed by a group discussion, where participants can ask questions, provide feedback, and challenge the assumptions in the document. The goal of the narrative meeting is to have a deep and meaningful discussion about the product and to come to a shared understanding of its potential.

The Funnel, Not the Tunnel

The Working Backward process is designed to be a funnel, not a tunnel. This means that many ideas will enter the process, but only the most promising ones will make it through to development. The PR/FAQ process is a lightweight way to vet new ideas and to quickly and inexpensively determine which ones are worth pursuing. This approach allows for a high volume of ideas to be considered and ensures that resources are focused on the ideas with the greatest potential for success.

Iteration and Refinement

The PR/FAQ document is not a one-and-done exercise. It is an iterative document that is refined over time based on feedback from stakeholders. The document may go through many revisions before it is finalized. This iterative process of writing, reviewing, and refining the PR/FAQ is essential for developing a deep and shared understanding of the product and for ensuring that the final product is well-vetted and has broad support within the organization.

4. Application Context

The Working Backward method is a versatile pattern that can be applied in a wide range of contexts, from small startups to large enterprises. It is particularly well-suited for situations where there is a high degree of uncertainty and a need for a customer-centric approach to product development.

New Product Development

The most common application of the Working Backward method is in the development of new products and services. The process is ideal for vetting new ideas and for ensuring that they are aligned with customer needs. By starting with the customer and working backward, teams can avoid the common pitfall of building products that nobody wants. The PR/FAQ process provides a structured way to explore new product ideas and to build a strong business case for them before any significant resources are invested.

Feature Enhancements

The Working Backward method can also be used to develop new features for existing products. When considering a new feature, the product team can write a PR/FAQ to articulate the customer benefit and to think through the implementation details. This can help to ensure that new features are not just added for the sake of adding them, but that they provide real value to the customer.

Service Design

The pattern is not limited to the development of physical or digital products. It can also be applied to the design of services. Whether it is a new customer support process or a new consulting offering, the Working Backward method can be used to define the customer experience and to design a service that meets their needs.

Strategic Planning

At a more strategic level, the Working Backward method can be used to inform strategic planning. By writing a press release for a future state of the company, leaders can articulate a bold and inspiring vision for the future. This can help to align the organization around a common set of goals and to guide the development of new products, services, and initiatives.

When Not to Use This Pattern

While the Working Backward method is a powerful tool, it is not appropriate for every situation. For projects with well-defined requirements and low uncertainty, a more traditional, linear product development process may be more efficient. Additionally, in situations where speed to market is the primary driver and there is little room for iteration, the deliberate and iterative nature of the Working Backward process may not be the best fit.

5. Implementation

Implementing the Working Backward method requires a disciplined and systematic approach. The following steps provide a practical guide for teams looking to adopt this pattern.

1. Identify the Customer and Their Problem

The first step is to identify the target customer and to develop a deep understanding of their needs and pain points. This can be done through a variety of research methods, including customer interviews, surveys, and market analysis. The goal is to identify a real and meaningful problem that the customer is facing and that the team is passionate about solving.

2. Draft the Press Release (PR)

Once the customer and their problem have been identified, the next step is to draft the press release. The PR should be a one-page document that is written for the customer. It should be clear, concise, and compelling, and it should articulate the product’s value proposition in a way that is easy to understand. The PR should include the following elements:

• Product Name: A memorable and descriptive name for the product.
• Target Customer: A clear description of the intended customer.
• Problem Solved: A concise statement of the problem that the product solves.
• Customer Benefits: A clear and compelling description of the benefits that the customer will receive from using the product.
• Company Quote: An inspirational quote from a company leader that explains why the company developed the product and what it hopes to achieve.
• Call to Action: A clear and simple call to action that tells the customer how to get started with the product.

3. Draft the Frequently Asked Questions (FAQ)

After drafting the PR, the next step is to draft the FAQ. The FAQ should anticipate and answer the questions that customers, stakeholders, and internal teams might have about the product. The FAQ should be divided into two sections: external and internal.

• External FAQs: These are questions that a customer might ask, such as “How much does it cost?”, “Is it easy to use?”, or “What kind of support is available?”.
• Internal FAQs: These are questions that internal stakeholders might ask, such as “What are the technical challenges?”, “What is the go-to-market strategy?”, or “What are the financial projections?”.

4. Review and Iterate on the PR/FAQ

Once the initial draft of the PR/FAQ is complete, it should be reviewed and iterated on with a small group of stakeholders. This group should include representatives from different functions, such as engineering, marketing, and design. The goal of this review is to get feedback on the PR/FAQ and to identify any gaps or weaknesses in the product concept. The PR/FAQ should be revised based on this feedback until it is clear, compelling, and well-vetted.

5. The Narrative Meeting

When the PR/FAQ is ready, it is presented in a narrative meeting. This is a formal meeting with a larger group of stakeholders, including senior leaders. The meeting begins with a period of silent reading, during which each participant reads the PR/FAQ to themselves. This is followed by a group discussion, where participants can ask questions, provide feedback, and challenge the assumptions in the document. The goal of the narrative meeting is to have a deep and meaningful discussion about the product and to make a decision about whether to move forward with it.

6. The Decision

Based on the discussion in the narrative meeting, the senior leader or decision-maker will make a decision about whether to approve the product for development. If the product is approved, the PR/FAQ becomes the guiding document for the product team. It serves as a living document that can be updated and refined as the team learns more about the customer and the market.

6. Evidence & Impact

The Working Backward method has had a profound impact on Amazon’s ability to innovate and to consistently deliver products and services that resonate with customers. The success of this pattern is evident in the company’s long track record of successful product launches, from the Kindle to Amazon Web Services (AWS).

Amazon’s Success

Amazon’s sustained growth and market leadership are a testament to the effectiveness of its customer-centric approach to innovation. The Working Backward method is a key driver of this success. By starting with the customer and working backward, Amazon has been able to develop a deep understanding of customer needs and to create products and services that are not only innovative but also highly valuable to the customer. The company’s relentless focus on the customer, which is at the heart of the Working Backward method, has allowed it to build a loyal customer base and to consistently outperform its competitors.

Industry Adoption

The success of the Working Backward method at Amazon has not gone unnoticed. Many other companies, from startups to large enterprises, have adopted this pattern to drive their own innovation efforts. The principles and practices of the Working Backward method are now widely taught in business schools and are considered a best practice for product development and innovation management. The book “Working Backwards: Insights, Stories, and Secrets from Inside Amazon” by Colin Bryar and Bill Carr has further popularized the method and has provided a detailed guide for other companies looking to implement it.

Improved Product-Market Fit

One of the most significant impacts of the Working Backward method is its ability to improve product-market fit. By forcing teams to articulate a clear and compelling vision for the product before any significant resources are invested, the process helps to ensure that the final product will meet a real and meaningful need in the market. The iterative and collaborative nature of the PR/FAQ process allows for early and frequent feedback from stakeholders, which helps to de-risk the product development process and to increase the likelihood of success.

Enhanced Team Alignment

The Working Backward method also has a significant impact on team alignment. The PR/FAQ document serves as a single source of truth for the product team and helps to ensure that everyone is aligned on the same goals and priorities. The process of writing and reviewing the PR/FAQ fosters a sense of shared ownership and accountability and helps to create a more cohesive and effective team.

7. Cognitive Era Considerations

The advent of the Cognitive Era, characterized by the widespread adoption of artificial intelligence and machine learning, presents both new opportunities and challenges for the Working Backward method. While the core principles of the pattern remain as relevant as ever, its implementation can be significantly enhanced by leveraging cognitive technologies.

AI-Powered Customer Insights

One of the most significant ways that AI can enhance the Working Backward method is by providing deeper and more nuanced insights into customer needs and behaviors. AI-powered tools can analyze vast amounts of data from a variety of sources, such as social media, customer reviews, and support tickets, to identify emerging trends and unmet needs. This can help product teams to develop a more accurate and comprehensive understanding of their customers, which is the foundation of the Working Backward process.

Automated PR/FAQ Generation

Cognitive technologies can also be used to automate parts of the PR/FAQ writing process. For example, natural language generation (NLG) models can be used to generate initial drafts of the press release and FAQ based on a set of high-level inputs from the product team. This can help to speed up the writing process and to free up the team to focus on the more strategic aspects of the product vision. However, it is important to note that these AI-generated documents should be seen as a starting point, and they will still require careful review and refinement by the product team.

Simulating Customer Reactions

AI can also be used to simulate customer reactions to the proposed product. By using sentiment analysis and other predictive modeling techniques, teams can get a sense of how customers might respond to the press release and the product itself. This can help to identify potential issues and to refine the product concept before it is launched.

New Challenges

The Cognitive Era also presents new challenges for the Working Backward method. As AI-powered products become more complex and autonomous, it can be more difficult to anticipate all of the potential consequences of a new product or service. The PR/FAQ process will need to be adapted to account for these new complexities and to ensure that the ethical and societal implications of new technologies are fully considered.

8. Commons Alignment Assessment

The Working Backward method, while originating in a corporate environment, exhibits several characteristics that align with the principles of a commons-based approach to value creation. This assessment evaluates the pattern against seven dimensions of commons alignment.

| Dimension | Assessment | |—|—| | Openness & Transparency | The Working Backward process, particularly the PR/FAQ, is an open and transparent process within the organization. It encourages broad participation and feedback from a wide range of stakeholders. However, the process is typically not open to the public. | | Decentralization & Federation | The pattern is decentralized in that it empowers small, autonomous teams to develop and propose new ideas. However, the final decision-making authority is typically centralized with senior leadership. | | Subsidiarity & Localism | The Working Backward method supports the principle of subsidiarity by empowering teams that are closest to the customer to make decisions about product development. It encourages a deep understanding of the local context of the customer. | | Community & Collaboration | The pattern is highly collaborative, emphasizing the importance of teamwork and cross-functional collaboration. The PR/FAQ process is a collective sense-making exercise that brings together diverse perspectives. | | Pluralism & Diversity | The Working Backward method encourages a diversity of ideas by providing a lightweight process for vetting new product concepts. It allows for a wide range of ideas to be considered, regardless of where they come from in the organization. | | Sustainability & Resilience | The pattern contributes to the sustainability and resilience of the organization by ensuring that resources are focused on products that have a high likelihood of success. By de-risking the innovation process, it helps to avoid costly failures. | | Social & Ecological Responsibility | The Working Backward method does not explicitly address social and ecological responsibility. However, the customer-centric nature of the pattern can be extended to include a broader set of stakeholders, including society and the environment. |

9. Resources & References

1. Working Backwards (the Amazon Method) - ProductPlan
2. The Amazon Working Backwards PR/FAQ Process - Working Backwards
3. Amazon Mechanisms and the working backwards process - Medium
4. Bryar, C., & Carr, B. (2021). Working Backwards: Insights, Stories, and Secrets from Inside Amazon. St. Martin’s Press.
5. What is working backwards (the Amazon method)? - Airfocus