Amazon's 70% Success Target

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: 44:36
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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.

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