Friends congratulate me after a quarterly-earnings announcement and say, 'Good job, great quarter.' And I'll say, 'Thank you, but that quarter was baked three years ago.'
'Jeff, what does Day 2 look like?' 'Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.' To be sure, this kind of decline would happen in extreme slow motion. An established company might harvest Day 2 for decades, but the final result would still come.
Day 2 companies make high-quality decisions, but they make high-quality decisions slowly. To keep the energy and dynamism of Day 1, you have to somehow make high-quality, high-velocity decisions.
We recently greenlit a particular Amazon Studios original. I told the team my view: debatable whether it would be interesting enough, complicated to produce, business terms aren't that good, we have lots of other opportunities. They had a completely different opinion and wanted to go ahead. I wrote back right away with 'I disagree and commit and hope it becomes the most watched thing we've ever made.' Consider how much slower this decision cycle would have been if the team had actually had to convince me rather than simply get my commitment.
When [competitors are] in the shower in the morning, they're thinking about how they're going to get ahead of one of their top competitors. Here in the shower, we're thinking about how we are going to invent something on behalf of a customer.
If you're going to innovate, you have to be willing to fail. If you're going to try new things, then you have to be willing to accept that you might fail.