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Amazon's Strategic Move To Split HQ2




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While most of us were busy speculating which city Amazon would name as its second headquarters, Amazon was supposedly busy choosing not just one, but two locations. According to to the Wall Street Journal, it is now suggested that Amazon might choose both Long Island City in New York and Crystal City, Virginia.

Amazon's selection process has been a very public affair. As the Wall Street Journal reports "Amazon has defied convention by turning the search into an unusually public beauty pageant."

Some may write off the process as a simple beauty pageant, a publicity stunt of kind But Amazon is one of the most strategic companies in business today. They do not do publicity stunts for the sake of & nbsp; sitting pretty. Underneath Amazon's decisions usually lie strong strategic reasoning. & Nbsp; And, I suspect, the public selection process for HQ2 is

  1. A talented magnet

    According to to the the

    1. Streamline operations
    2. Collect all the data

    (AP Photo / Cliff Owen)

    Wall Street Journal, Amazon plans to "bring as many as 50,000 employees" over a twenty year period.

    Imagine a headcount of 50,000 employees for a minute. The U.S. Census beschouwt elke onderneming met meer dan 500 werknemers een "grote onderneming." En hier, Amazon stelt voor om een ​​tweede hoofdkantoor op te zetten dat 100x is dat grootte. Hiring 50,000 employees is like hiring a small city.

    It's a humongous headcount number that will leave both human resources and hiring managers in charge of the task of successfully filling those roles, especially left to a single city. Splitting HQ2 into two will lower the burden on staff, while increasing the likelihood of finding top talent without lowering its standards.

    By choosing these two cities, Amazon would be tapping into two primary talent pools.

    1. Existing talent [19659013]: Amazon figured out long ago that Silicon Valley does not have a monopoly on talent. One of the reasons Amazon has thrived is that it has successfully broken free of the mold that is the only tech talent only living in Silicon Valley. Alternative locations offer untapped tech talent, especially true of the East Coast. Amazon could easily drill into these two talent hubs for fast talent infusions.
    2. Immigration : If these two locations are in fact the winners, Amazon will not only have access to the existing talent pool but also the high influx of immigration relative to other cities. Amazon is looking to hire, namely tech, artificial intelligence, and machine learning. The launch community has long cited immigration as a strong source of talent, especially in the areas. Mens den nuværende administrationen har begrænset indflydelsesstrømmen, Amazon should settle near Washington, D.C. and New York City, it is well positioned to take advantage of immigration in the future.

    An Eye For Operational Efficiency and Effectiveness

    At first glance, it would be logical to assume that splitting HQ2 in two is not an operationally efficient solution. Waarom stel je twee nieuwe locaties op wanneer je het proces kan rationaliseren en focus op just one? Men splitting the locations har tre fordeler.

    1. Alleviating Growing Pains . Setting up 50,000 employees in one location quickly is extremely difficult. Een groeiend bedrijf dat scoort van één tot 1.000 medewerkers in tien jaar introduceert al snel pijn: veranderende organisatorische structuren, management talent (of gebrek ervan), logistieke problemen. By splitting HQ2 in half, it reduces the operational and logistical load required of each location to set up shop and increase its likelihood of successful scaling over a short time frame.
    2. Shared Learning : Setting up two Locations at once could create a real-time feedback loop for shared learning. Det ville ikke kun forenkle processen med at konfigurere to nye steder samtidigt, men også bidra til at samle learnings for fremtidige lokationer. It's only a matter of time before an international HQ3 is announced.
    3. Competition : At the same time, nothing lights a four like competition. Det konkurrerende aspektet af to situationer imod hinanden kan føre til handling på en accelereret tidslinje. Amazon has been hypothetical, though it has been known to implement competitive practices to drive results. & nbsp; & nbsp;

    Data, Data, Data

    Perhaps one of the least discussed and most underestimated goals, I suspect, whether Amazon's public selection process is as a tactic to collect data.

    The location selection process began with proposals from 238 areas. That's 238 proposals delineating strengths, weaknesses, risks, challenges of each city and what it could offer Amazon. Hvert forslag og efterfølgende tonehøjde tilbyder Amazon muligheden for at stille spørgsmål og afprøve i et område af interesse, eventuelt til at anmode om flere data.

    Not only does this process provide data that Amazon may not have had access to otherwise, but it also reduces the due diligence effort and workload required of Amazon to know & nbsp; each city. It's like free outsourcing.

    (AP Photo / Cliff Owen)

    Implications: Is Amazon A Predator?

    Amazon has said it will invest over $ 5 billion over a twenty-year period in the location (s) or HQ2.

    The investment will likely attract other businesses and fuel economic growth. Men det vil også drive opp faste priser, overfeste eksisterende infrastruktur, og steal talent, potensielt å forærre det eksisterende økosystem, hvor det settles.

    The concern is that Amazon will suffocate the cities in which it chooses to operate HQ2. The concern is understandable. Amazon is feared like a Tyrannosaurus Rex or modern-day business. Når Amazon kommer til byen, alle perks up, everyone is on edge. Fordi hvis Amazon beslutter at angripe din virksomhed, kan den bite være lethal.

    A reasonable question, then, is whether the benefits of housing HQ2 outweigh the costs?

    Amazon may be perceived as a predator, but most of its growth can be attributed to its skill as a scavenger. Selv om Amazon ikke kommer væk fra predatoriske taktikker, hvis noget står i sin måde, er succesen drevet af dets evne til at scavenge så godt. Amazon has not won a strategy of attacking the competition. Det har vunnet fordi det kan se muligheden hvor ingen andre kan. De eerste act of reinventing the book-buying experience is a case in point. Amazon scavenges underutilized and underleveraged resources.

    And its new speculated strategic initiative of opening up twin. HQ2s is a chief example of that. & Nbsp; Had Amazon's strategy been purely predatory, it would have attacked a city like San Francisco. Og ef það hefði, hefði það verið svo fyrirsjáanlegt, það myndi gera það minna skelfilegt. Amazon has proven once again it's not like a lumbering dinosaur, but as a nimble as an ant, strategically preparing for its next, it's no wonder what Amazon will do next. act.


    F Ollow Stephanie Denning on Twitter: & nbsp; @stephdenning

    And Also Read:

    The Collapse Of Strategy And Its Implications

    The Netflix Pressure-Cooker: A Culture That Drives Performance

    Ray Dalio Questions Conventional Career Wisdom

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    While most of us were busy speculating which city Amazon would name its second headquarters Amazon was supposedly busy choosing not just one, but two locations. According to the Wall Street Journal, it is now suggested that Amazon might choose both Long Island City in New York and Crystal City, Virginia.

    Amazon's selection process has been a very public affair. As the Wall Street Journal reports, "Amazon has defied convention by turning the search into an unusually public beauty pageant."

    Some may write off the process as a simple beauty pageant, a publicity stuntor kind. But Amazon is one of the most strategic companies in business today. De do not do publicity stunts for the sake of sitting pretty. Underneath Amazon's decisions usually lie strong strategic reasoning. And, I suspect, the public selection process for HQ2 is no different, with three central drivers:

    1. Attract talent
    2. Streamline operations
    3. Collect all the data

    A Talent Magnet

    According to the Wall Street Journal, Amazon plans to "bring as many as 50,000 employees" over a twenty year period.

    Imagine a headcount of 50,000 employees for a minute. The U.S. Census beschouwt elke onderneming met meer dan 500 werknemers een "grote onderneming." En hier, Amazon stelt voor om een ​​tweede hoofdkantoor op te zetten dat 100x is dat grootte. Hiring 50,000 employees is like hiring a small city.

    It's a humongous headcount number that will leave both human resources and hiring managers in charge of the task of successfully filling those roles, especially left to a single city. Splitting HQ2 into two will lower the burden on staff, while increasing the likelihood of finding top talent without lowering its standards.

    By choosing these two cities, Amazon would be tapping into two primary talent pools.

    1. Existing talent [19659013]: Amazon figured out long ago that Silicon Valley does not have a monopoly on talent. One of the reasons Amazon has thrived is that it has successfully broken free of the mold that is the only tech talent only living in Silicon Valley. Alternative locations offer untapped tech talent, especially true of the East Coast. Amazon could easily drill into these two talent hubs for fast talent infusions.
    2. Immigration : If these two locations are in fact the winners, Amazon will not only have access to the existing talent pool but also the high influx of immigration relative to other cities. The startup community has long cited immigration as a strong source of talent, especially in the areas Amazon is looking to hire, namely tech, artificial intelligence, and machine learning. Mens den nuværende administrationen har begrænset indflydelsesstrømmen, Amazon should settle near Washington, D.C. and New York City, it is well positioned to take advantage of immigration in the future.

    An Eye For Operational Efficiency and Effectiveness

    At first glance, it would be logical to assume that splitting HQ2 in two is not an operationally efficient solution. Waarom stel je twee nieuwe locaties op wanneer je het proces kan rationaliseren en focus op just one? Men splitting the locations har tre fordeler.

    1. Alleviating Growing Pains . Setting up 50,000 employees in one location quickly is extremely difficult. Een groeiend bedrijf dat scoort van één tot 1.000 medewerkers in tien jaar introduceert al snel pijn: veranderende organisatorische structuren, management talent (of gebrek ervan), logistieke problemen. By splitting HQ2 in half, it reduces the operational and logistical load required of each location to set up shop and increase its likelihood of successful scaling over a short time frame.
    2. Shared Learning : Setting up two Locations at once could create a real-time feedback loop for shared learning. Det ville ikke kun forenkle processen med at konfigurere to nye steder samtidigt, men også bidra til at samle learnings for fremtidige lokationer. It's only a matter of time before an international HQ3 is announced.
    3. Competition : At the same time, nothing lights a four like competition. Det konkurrerende aspektet af to situationer imod hinanden kan føre til handling på en accelereret tidslinje. Amazon has been hypothetical, though it has been known to implement competitive practices to drive results.

    Data, Data, Data

    Perhaps one of the least discussed and most underestimated goals, I suspect, whether Amazon's public selection process is as a tactic to collect data.

    The location selection process began with proposals from 238 areas. That's 238 proposals delineating strengths, weaknesses, risks, challenges of each city and what it could offer Amazon. Hvert forslag og efterfølgende tonehøjde tilbyder Amazon muligheden for at stille spørgsmål og afprøve i et område af interesse, eventuelt til at anmode om flere data.

    Not only does this process provide data that Amazon may not have had access to otherwise, but it also reduces the due diligence effort and workload required of Amazon to know each city. It's like free outsourcing.

    Implications: Is Amazon A Predator?

    Amazon has said it will invest over $ 5 billion over a twenty-year period in the location (s) of HQ2.

    The investment will likely attract other businesses and fuel economic growth. Men det vil også drive opp faste priser, overfeste eksisterende infrastruktur, og steal talent, potensielt å forærre det eksisterende økosystem, hvor det settles.

    The concern is that Amazon will suffocate the cities in which it chooses to operate HQ2. The concern is understandable. Amazon is feared like a Tyrannosaurus Rex or modern-day business. Når Amazon kommer til byen, alle perks up, everyone is on edge. Fordi hvis Amazon beslutter at angripe din virksomhed, kan den bite være lethal.

    A reasonable question, then, is whether the benefits of housing HQ2 outweigh the costs?

    Amazon may be perceived as a predator, but most of its growth can be attributed to its skill as a scavenger. Selv om Amazon ikke kommer væk fra predatoriske taktikker, hvis noget står i sin måde, er succesen drevet af dets evne til at scavenge så godt. Amazon has not won a strategy of attacking the competition. Det har vunnet fordi det kan se muligheden hvor ingen andre kan. De eerste act of reinventing the book-buying experience is a case in point. Amazon scavenges underutilized and underleveraged resources.

    And its new speculated strategic initiative of opening up twin HQ2s is a chief example of that. Had Amazon's strategy been purely predatory, it would have attacked a city like San Francisco. Og ef það hefði, hefði það verið svo fyrirsjáanlegt, það myndi gera það minna skelfilegt. Det faktum at ingen vet hva Amazon kommer til å gjøre, er akkurat det som gør det så skræmmende.

    Amazon has proven once again it's not like a lumbering dinosaur, but as nimble as an ant, strategically preparing for its next act.


    F Ollow Stephanie Denning on Twitter: @stephdenning

    And Also Read:

    The Collapse Of Strategy And Its Implications

    The Netflix Pressure-Cooker: A Culture That Drives Performance

    Ray Dalio Questions Conventional Career Wisdom


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