Elon Musk is a businessman who leads several innovative companies such as Tesla, SpaceX, and Neuralink. One of the secrets to his success lies in his unique ' way of working '. This principle is somewhat different from the general corporate culture or management style, and it is the driving force that enables his companies to continuously innovate and grow.
1. Question all requirements.
Elon Musk questions all requirements, rules, and processes. This makes him not blindly follow the existing way, but always think about whether there is a more efficient or innovative way. He knows the name of the person who created the requirement, and even if that person is smart, he challenges his opinion. This way, only the requirements that are actually needed remain. (On the contrary, if the opinion of a smart person is uncritically accepted, the organization will collapse.)
2. Remove as much as possible.
Eliminate unnecessary parts or processes. This allows businesses to move faster and more efficiently. Elon Musk believes that it is possible to add them back later if necessary. However, if you don’t add back more than 10%, you don’t think you have eliminated enough. This is the work of increasing resilience.
All humans can make mistakes, but let's not insist that what is wrong is right.
He tells us not to ask our team members to do things they don't want to do or to get rid of them by giving them excuses.
3. Simplify and optimize.
First, remove the unnecessary, then simplify and optimize what remains. Through this process, the business can operate faster and more efficiently. The order is important. You have to simplify and optimize. Here, simplification is the limit of process 2.
4. Shorten the cycle by increasing the speed.
It speeds up all processes, but it should be done after the previous three steps.
5. Automate it.
After all of the above is in place, we move on to automation. This is a lesson learned from Musk’s mistakes in Nevada and Fremont. (In the past, Elon Musk experienced a huge waste of money by overextending Tesla’s factory in Nevada.)
Essential Prerequisites
Managers should have practical experience and avoid personal connections.
If a manager tries to get involved in a business without practical experience, he or she will have to endure resistance and alienation from the working staff. Therefore, managers must have practical experience.
Working together can create friendships, but this friendship should not be used to skip or streamline processes.
When there is a problem that needs to be solved, they do not meet with the management, but first discuss it with the executives at the next level or the manager two levels above them. (If the problem is not solved by the direct supervisor, it is said that they avoid talking to the direct supervisor because the meaning is already distorted through him. It is a slightly different culture in Japan and Korea.)
Elon Musk's principles play a huge role in his companies' continued innovation and growth. Not everything Elon Musk does is right, but setting these principles and applying them to the way other companies or individuals work can be very helpful.
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Thanks. In Essential Premises, "not just directly above" means your immediate managers rather than the top level. By talking with managers two levels up, misinterpretation from multiple intrepretations can be avoided.
