The Algorithm: Musk’s Mantra for Management
The Algorithm: Musk’s Mantra for Management
As you may know, I am an avid reader, and I have just finished reading Elon Musk's biography written by Walter Isaacson.
In Isaacson's biography of Elon Musk, he depicts the billionaire entrepreneur as a volatile figure with grand ambitions and a substantial ego.
Musk is candid about his Asperger's and the challenges it presents in empathizing with others, characteristics that manifest in his interactions, despite this, his visionary projects, like the colonization of Mars, are monumental.
An interesting part of the book Isaacson describes "The Algorithm”.
The algorithm for Musk is like a mantra something he repeats continuously and more than just guidelines, these commandments form the core of Musk's production philosophy, serving as a liturgy for continuous improvement and innovation, here you can find an explanation of those points, clearly those impacts in the Performance Domain of the entire Project.
The algorithm was shaped by the lessons he learned during the production hell surges at the Nevada and Fremont factories. His executives sometimes move their lips and mouth the words, like they would chant the liturgy along with their priest. "I became a broken record on the algorithm," Musk says. "But I think it's helpful to say it to an annoying degree."
Question Every Requirement
Musk urges his teams to scrutinize the origin of every requirement, each directive must be attached to an individual, not just a department.
The rationale is clear: even the most intelligent minds can create flawed requirements, and the danger lies in unchallenged acceptance. The goal is to move beyond mediocrity by refining these requirements to their most intelligent form.
Delete Relentlessly
The second commandment is to delete any extraneous part or process.
True efficiency isn’t about using what you have—it’s about eliminating what you don’t need. If less than 10% of the eliminated parts find their way back into the process, you haven’t deleted enough.
Simplify and Optimize
Once the unnecessary has been stripped away, what remains must be simplified and optimized.
The trap many fall into is polishing a component that, in essence, should not exist. Therefore, optimization is only as valuable as the relevance of the process itself.
Accelerate with Caution
Speed is essential, but not at the expense of steps one through three.
Musk learned this the hard way, spending valuable time accelerating processes at the Tesla factory that ultimately required elimination.
Automation Comes Last
Automation is the final step, not the first.
Musk's experience at the Nevada and Fremont factories taught him that premature automation can cement inefficiencies. Only after a rigorous process of questioning, deletion, and optimization should automation enter the equation.
Corollaries to Live By
Musk's algorithm is further supported by corollaries emphasizing hands-on experience for technical managers and the avoidance of complacency among team members.
For example, managers of software teams must spend at least 20% of their time coding. Solar roof managers must spend time on the roofs doing installations. Otherwise, they are like a cavalry leader who can’t ride a horse or a general who can’t use a sword.
A culture that discourages challenging one’s peers breeds stagnation, not innovation.
Embracing Mistakes, Encouraging Action
It's permissible to be wrong, but it's not okay to be confidently wrong. Leaders should exemplify the behaviour they expect from their teams, engaging with issues at all levels rather than solely through managerial filters
Comradery is dangerous. It makes it hard for people to challenge each other’s work. There is a tendency to not want to throw a colleague under the bus. That needs to be avoided.
The Right Attitude, not all Skills
Skills can be acquired, but the right attitude is non-negotiable, for Musk: “The Attitude changes require a brain transplant”.
Musk values the mindset of his hires, recognizing that adaptability and willingness to learn are the hallmarks of a valuable team member.
Urgency and the Laws of Physics
A relentless sense of urgency drives Musk's operations. Yet, even this urgency bows to the immutable laws of physics—the ultimate rules that govern the realm of possibility.
Elon Musk’s algorithm is more than a production strategy; it's a mindset that fosters relentless questioning, aggressive streamlining, and a culture that values action over complacency.
Whenever there are problems to solve, don't just meet with your managers. Do a skip level, where you meet with the level right below your managers.
A maniacal sense of urgency is our operating principle.
The book:
Elon Musk: by Walter Isaacson