When people look at Amazon's success, they often see its size, dominance and relentless pursuit of customer satisfaction. However, the way Amazon achieved this was not by following conventional wisdom or proven ideas from the past; it came from an unorthodox approach that embraced out-of-the-box thinking.

This growth occurred only because of the culture of “Institutional Yes”, which made room for experimenting and taking calculated risks. But behind these visible achievements lies a culture that is a powerful driver of innovation — a culture built on the power of saying yes. Unlike many organisations where new ideas die under the weight of bureaucracy or managerial hesitation, Amazon has made it easier to say yes to an idea than to say no. This practice is one of Amazon’s key differentiators, leading to game-changing innovations such as Amazon Web Services.

The default to yes: empowering creativity

At Amazon, the default response to a new idea is a resounding yes — unless a manager can justify, in detail, why it should not be pursued. This approach is not about giving carte blanche approval to every concept. Instead, it’s about giving ideas enough oxygen to see if they can catch fire. Like improv comedy where the golden rule is “Yes, and ...” which keeps the scene alive, unpredictable and often brilliant. By creating an environment where ideas are not immediately shut down, Amazon fosters a creative energy that empowers its employees to experiment freely.

Take AWS, for instance, a cloud computing service that provides companies with on-demand computing power and storage, essentially allowing them to rent Amazon’s powerful infrastructure rather than buying their own servers. When someone suggested opening Amazon’s infrastructure for developers to build their businesses, the idea sounded outlandish — after all, Amazon was a retail company. Normally, an idea such as this would have been shut down because it seemed too far outside of Amazon’s core business model. But instead of dismissing it, the idea was explored and supported. Today, AWS is one of Amazon’s biggest moneymakers, contributing billions in revenue. In 2023, AWS reported revenue of $25 billion, with operating profits of $9.4 billion. This accounted for about 65.7 per cent of Amazon’s overall operating income, demonstrating AWS’s crucial role in Amazon’s profitability, even though it contributed approximately 17 per cent of total revenue.

The Institutional Yes

The concept of the “Institutional Yes” at Amazon is central to its culture of innovation. This principle means that when someone proposes a new idea, the automatic answer is yes unless there is a compelling reason to say otherwise. If a manager wants to reject an idea, they must write a one to two-page document explaining why the idea should be held back or killed. This reasoning is then posted publicly within the company for everyone to see. This requirement creates a high barrier to saying no, which ensures that ideas are not stifled by default or without careful consideration. By making the rejection process more challenging, Amazon effectively encourages managers to give new ideas a chance rather than dismissing them out of hand.

This approach also instils accountability and transparency in decision-making. It ensures that managers take the time to critically evaluate the potential of new ideas, rather than opting for the path of least resistance. As a result, only genuinely flawed ideas are stopped, while most are given a fair opportunity to grow. In contrast to many organisations, where the default is to say no unless someone can prove an idea's merit, Amazon’s “Institutional Yes” empowers its workforce to think boldly and creatively.

Small risks, big rewards

This culture of “yes” isn't about reckless risk-taking. Instead, it’s about embracing a series of small, manageable risks. Imagine rolling dice at a casino. Amazon places lots of small bets — each one is a minor experiment that could lead to something great or fizzle out without significant loss. The power lies in one of these small bets succeeding and then repaying all those that did not many times over.

The system also demands accountability. Managers who wish to veto an idea must write a detailed argument explaining why, which is then shared with others. This adds friction to saying no, ensuring that people think deeply before dismissing an idea. As a result, only genuinely bad ideas get stopped, while most ideas are given a chance.

Experimentation v Operational excellence

Usually, the cost of the experiment is very small. It starts to get expensive only when it works. Once an experiment succeeds, the mindset shifts to doubling down on it, and that is when the spending becomes significant. This is where the role of hierarchy and the judgment of the most senior people becomes crucial in making those consequential decisions. Many people think experimentation is inherently expensive, but in reality, it becomes costly only when it proves successful and requires scaling.

This is why it is important to differentiate between experimentation and operational excellence. Experimentation is inherently about trying new things, failing and learning, while operational excellence focuses on refining and expanding proven processes. It’s not like opening another store — which is operational expansion, not innovation. Amazon makes this distinction clear, encouraging its workforce to understand when it is in the experimental phase versus when it is scaling successful ideas. This mindset allows Amazon to fail fast, learn and eventually succeed.

The power of saying yes

In the end, Amazon’s culture of saying yes is a lesson for any organisation that wants to drive innovation. It highlights the importance of embracing small risks, creating multiple paths to support new ideas, and empowering employees at every level. By unlocking the power of yes, Amazon has created a system where innovation can thrive and big, groundbreaking ideas can take root and flourish.

• Christian Chin-Gurret is a writer with a Masters of Science in Innovation and Entrepreneurship and a Bachelor of Science in Product Design, who offers a unique perspective on shaping the future of business through innovation, disruption and technology