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The McKinsey Podcast cover image

What business can learn from "geeks"

The McKinsey Podcast

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Modular Organization and Bureaucracy in Amazon

The key insight here is that Amazon focuses on modularizing the organization to enable coordination, communication, and collaboration within small, two-pizza teams. These small teams are designed to minimize interdependencies and reduce coordination and communication with the larger organization. Amazon's approach aims to minimize both hard and soft bureaucracies, allowing teams to work independently and efficiently. The strategy is described as a departure from the internet era and has been depicted as a machine for producing more little Amazons, where small teams are empowered with the necessary APIs and autonomy to achieve their goals.

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