If you focus on the controllable inputs to your business, in the long term, you get better results.
Say somebody came up to me and said, “Jeff, I want your job to be to drive up the Amazon stock price, and just manage that directly.” Many companies actually try to do this. They go out and try to “sell” the stock. That’s a silly approach, that’s not sustainable.
It’s much better to say, “What are the inputs to a higher stock price?” OK, well, free cash flow and return on invested capital are inputs to a higher stock price. Let’s keep working backwards. What are the inputs to free cash flow? And you keep working backwards until you get to something that’s controllable. A controllable input for free cash flow would be something like lower cost structure.
Then you back up from there and say, if we can improve our picking efficiency in our fulfillment centers and reduce defects - reducing defects at the root is one of the best ways to lower cost structure - that starts to be a job you would accept.
If you’re a reasonable person, you would say, “I have no idea how to drive up the stock price. I can’t manage that directly. It’s not a controllable input.” But I can make picking algorithms more efficient, and that will reduce cost structure.
And then you follow that chain all along the way.