Yesterday, on July 20th, in the West Texas desert, Jeff Bezos blasted off into suborbital space on a rocket built by his private spaceflight company Blue Origin. He was joined by three other civilians on this historic flight.
Just nine days prior to Bezos’ flight, British entrepreneur and fellow billionaire Richard Branson flew to the edge of space in a rocket designed by his own space tourism company, Virgin Galactic. (For those following the competition closely….Bezos went a bit farther into space than Branson. But, Branson did go first).
After touching back down to earth Bezos radioed to mission control saying it was the “best day ever.”
Bezos, the richest man on the planet with a net worth of over $200 billion, stepped down as Amazon’s CEO on July 5th stating he would spend more time pursuing his passions. He chose a remarkable date for his retirement given that Amazon was incorporated on the same date in 1994 – exactly 27 years ago. He is now the executive chairman of the Amazon board.
Back on here on planet earth Bezos left Amazon in the hands of Andy Jassy. Jassy has been with Amazon for 24 years and was the CEO of Amazon Web Services, the company’s cloud platform, prior to his promotion.
In my work with organizations of all types and sizes one thing many do not do well, if at all, is succession planning.
Succession planning requires foresight and should be done strategically. When done right it ensures that you are identifying the key roles, positions, and skills that will need to be filled in the future.
Succession planning cuts costs on recruiting if you focus on promoting and filling roles from within, rather than spending money searching for the next CEO or COO.
And, most importantly it ensures the ongoing success of the organization and helps with retention – people will stick with you if the future of the organization seems bright. They will head for the hills if there is uncertainty around who will be leading them into the future.
So far it looks as though Jeff Bezos did a good job in succession planning for Amazon. Here are three things he did well and that you should consider when planning for the future of your organizations leadership.
Impeccable Timing: Bezos announced his departure in early February, 2021. While the Covid-19 pandemic wreaked havoc on many businesses across the country, it bolstered business for Amazon, big time! Amazon posted its first $100 billion quarter and the company’s stock was up about 70% at this time.
When you hand over the reigns of an organization, or even a small team, you want to do so when things are going well. When the finances are good, moral is high, projects are running smoothly. It’s a win-win for you AND your successor!
Bezos is leaving the company and his legacy in excellent shape while Jassy can focus on keeping things moving in a positive direction. This positions Jassy and Amazon for success.
Strategic Pick: Jassy has been with Amazon for more than two decades. In that time he worked closely with Bezos absorbing all he could. It has been said that Jassy was a close confidant of Bezos and has long been his second in command. Jassy has been described at Bezos’ “brain double” and served as a “shadow” advisor to him at one point, attending every meeting and phone call with the CEO. Ann Hiatt, Mr. Bezos’ former executive assistant, describe Jassy as “a sparring partner for Jeff intellectually.”
I believe all this was to test and groom Jassy to be Bezos’ successor. It was a strategic plan, grown over many years, to ensure the company would be left in the hands of an informed, capable, and innovative leader.
As a leader you should always be developing those who are coming up behind you. Make sure that if, or when you leave, your organization or team won’t miss a beat. They will catch the ball and keep right on dribbling it down the court. Think about who may be able to fill your shoes should your time come to step aside, retire, or move to a new organization. How can you make this person your “brain double” and “shadow” advisor?
Mission Focused: When taking over an organization it is important to remind yourself, and everyone else, of the organization’s mission, vision, and values. It is the roadmap you follow to make changes and decisions moving forward.
In his final letter to shareholders Bezos wrote, "Despite what we've accomplished, it's clear to me that we need a better vision for our employees' success…We have always wanted to be Earth's Most Customer-Centric Company. We won't change that. It's what got us here. But I am committing us to an addition. We are going to be Earth's Best Employer and Earth's Safest Place to Work."
Bezos essentially handed Jassy an updated mission for Amazon – one focused on taking better care of their employees. Jassy has his work cut out for him because the company is not exactly known for treating their employees well. Amazon has a reputation for employees who cry at their desks due to stress and warehouse workers afraid of being punished for using the restroom. I do wish him well on this endeavor and think it is certainly a critical change that will keep Amazon from declining in the future.
By sharing an updated mission for the organization Bezos has given Jassy a leg up in the success of implementing this new direction. Bezos has essentially baked the pie, now it’s up to Jassy to serve it. And add his flavor of ice cream to it.
Remember the Wendy’s commercial where the old lady points at a flimsy hamburger from a competitor and asks, “where’s the beef?” That’s my first question when I hear an organizations mission. Meaning, I want to know WHAT you’re doing, in practical terms, to fulfill your mission.
First, Jassy will need to develop and share the policies, procedures, HR support, and other practical changes that will make the mission real for the employees. It’s nice to print your mission in the entrance of your organization or make it the background on everyone’s computer, but if there’s no “meat” behind your mission you’ll never get where you’re going.
Next, he should expect to spend the 12 months selling the mission to the employees and us, the consumers. This is particularly important for Gen Z, the fastest growing generation in the workplace and the future employees of Amazon. This generation wants to work for companies that care about them, their communities, and the world. If they don’t find that at Amazon they are likely to go elsewhere. If the CEO doesn’t talk about the mission nobody will talk about it and chances are everyone will be simply treading water.
As Abraham Lincoln said, “You cannot escape the responsibility of tomorrow by evading it today.”
Make sure you are taking responsibility for your organization and its employees by being strategic about succession planning. Your organizations future depends on it.