Amazon's 70% Success Target
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A framework for setting and achieving goals in organizations, based on Amazon's philosophy that hitting 70% of goals indicates the right balance between ambition and realism.
Core Philosophy
- Don't aim to hit 100% of goals - indicates goals are too conservative
- Don't hit 0% of goals - indicates unrealistic target setting
- Target 70% goal achievement rate
- Shows you're stretching enough
- Not overstretching or being unrealistic
- Prevents building a culture of consistently missing expectations
Why This Works
- Forces ambitious but achievable goal setting
- Prevents sandbagging or setting easy targets
- Creates healthy tension between aspiration and execution
- Allows for growth and learning from missed targets
- Maintains motivation while pushing boundaries
Application to Other Areas
- Elon Musk applies similar thinking to process/feature removal
- Aims to add back ~10% of removed items
- If adding back less than 10%, not removing enough
- If adding back more than 10%, being too conservative with removals
Key Insight
- Setting the right level of challenge is critical
- Need measurable benchmarks to assess if goals are appropriately ambitious
- Culture of stretching without breaking is ideal
- Balance between pushing limits and maintaining achievable targets
38:36 - 38:57
Full video: 44:36SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.