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Jeff Bezos’ Insights on Avoiding the Pitfalls of Proxy Management in Expanding Organizations

The process is not the thing

“As companies get larger and more complex, there’s a tendency to manage to proxies. This comes in many shapes and sizes, and it’s dangerous, subtle…

A common example is process as proxy. Good process serves you so you can serve customers. But if you’re not watchful, the process can become the thing. This can happen very easily in large organizations. The process becomes the proxy for the result you want. You stop looking at outcomes and just make sure you’re doing the process right. Gulp.

It’s not that rare to hear a junior leader defend a bad outcome with something like, ‘Well, we followed the process.’ A more experienced leader will use it as an opportunity to investigate and improve the process. The process is not the thing.”

Letter to shareholders written by Jeff Bezos, founder of Amazon

In this insightful letter to shareholders, Amazon’s founder, Jeff Bezos, sheds light on a common challenge faced by growing companies. As organizations become larger and more intricate, there is a natural inclination to manage to proxies—relying on intermediate measures or processes rather than focusing on ultimate goals.

Bezos articulates the subtle yet perilous nature of this tendency, particularly when processes evolve into an end in themselves, overshadowing the primary objectives of customer satisfaction and desired outcomes.

This excerpt underscores the importance of steering clear of the trap of managing to proxies. It serves as a reminder that the emphasis should always be on the desired outcomes, ensuring that processes remain a means to an end rather than an end in themselves. 

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