| name | Controllable Inputs Framework |
| description | Focus on Input Metrics (selection, price, speed) rather than Output Metrics (revenue, stock price). Inputs are controllable and causal; outputs are lagging. Amazon's flywheel philosophy. |
The Controllable Inputs Framework
"If we served customers well... things like sales, revenue... and share price... would follow. We took it as an article of faith." — Bill Carr
What It Is
A management focus on "Input Metrics" (controllable activities like selection, price, speed) rather than "Output Metrics" (lagging indicators like revenue, stock price), often conceptualized as a Flywheel.
When To Use
- When defining OKRs
- Conducting weekly business reviews (WBR)
- When growth stalls and you need to diagnose
- Avoiding short-term reactive decision making
Inputs vs. Outputs
┌─────────────────────────────────────────────────────┐
│ OUTPUT METRICS (Lagging) │
│ ❌ Revenue │
│ ❌ Stock price │
│ ❌ Active users │
│ → Results of past actions │
│ → Not directly controllable │
├─────────────────────────────────────────────────────┤
│ INPUT METRICS (Leading) │
│ ✅ Selection (# of products) │
│ ✅ Price (% below competition) │
│ ✅ Speed (delivery time) │
│ → Actions you take today │
│ → Directly controllable │
└─────────────────────────────────────────────────────┘
The Amazon Flywheel
┌─────────────────┐
│ Better Customer│
│ Experience │
└────────┬────────┘
↓
┌─────────────────┐ ┌─────────────────┐
│ Lower Prices │←───│ More Traffic │
└────────┬────────┘ └─────────────────┘
↓ ↑
┌─────────────────┐ ┌─────────────────┐
│ Lower Cost │ │ More Sellers │
│ Structure │───→│ More Selection │
└─────────────────┘ └─────────────────┘
How To Apply
STEP 1: Identify Your Flywheel
└── What inputs drive customer experience?
└── How do they compound?
STEP 2: Define Input Metrics
└── Each must be controllable
└── Each must have causal link to outputs
STEP 3: Measure Continuously
└── Weekly Business Reviews (WBRs)
└── Real-time dashboards
STEP 4: Resist Output Obsession
└── When output dips, diagnose inputs
└── Don't panic-optimize the output directly
Common Mistakes
❌ Confusing outputs (active users, revenue) with inputs
❌ Creating "compound metrics" that obscure root cause
❌ Reacting to output dips with short-term hacks
Real-World Example
Amazon focused on "Selection" (number of detail pages) and "Lower Prices" as inputs, believing they would drive the output of "Free Cash Flow" via the Flywheel effect.
Source: Bill Carr, Co-author of "Working Backwards", Lenny's Podcast
