Introduction#
Today I listened to episode #399 How Elon Works of the Founders podcast, which I’m a frequent listener of. Host David Senra spent considerable time (re)reading the Walter Isaacson biography on Musk and for this episode extracted only the insights from the book that explain how Elon works.
While you don’t have to agree with everything Elon Musk does or says (neither do I), there’s value in studying his operational methods. The following 9 principles represent a distilled approach to problem-solving and execution that has consistently delivered results across multiple industries. Whether you’re running a team, building a product, or tackling personal projects, these concepts can serve as inspiration for more effective operations.
The 9 Principles#
⚙️ Execute the Algorithm: Question, Delete, Simplify, Accelerate, Automate#
Musk operates his companies using a five-step process he calls “the algorithm,” which he repeats like a mantra. First, question every requirement, ensuring you know the specific person responsible for it, as all requirements are flawed. Second, delete any part or process you can; if you don’t end up adding at least 10% back later, you didn’t delete enough. Third, simplify and optimize the design, but only after you have deleted everything possible. Fourth, accelerate the cycle time of the remaining processes. Finally, and only at the very end, automate the process. He considers his biggest past mistake to be automating before completing the first four steps.
⏱️ A Maniacal Sense of Urgency is the Operating Principle#
Time is the most critical and non-renewable resource. Every day of delay on a major project is seen as a massive financial and mission-critical loss. This belief dictates that impossibly aggressive timelines are necessary; if a timeline is long, it is wrong. This forces the team to innovate and bypass conventional thinking. As Musk says, “If you’re going through hell, just keep going.” This urgency applies to everything from building rockets to making decisions, as indecisiveness leads to failure.
🎖️ Be a Frontline General and Go Directly to the Problem#
A leader cannot be effective from a conference room. You must have direct, hands-on experience and be physically present where the work is happening. When a problem arises, you must “walk to the red” light on the factory floor, fly to the source, and engage directly with the people doing the work—not just their managers. Musk believes that just as Napoleon’s armies fought best where he was physically present, a leader’s presence on the front lines is what motivates troops and solves problems most effectively.
🗑️ The Best Part is No Part: Relentlessly Delete and Simplify#
The most significant source of progress comes from eliminating unnecessary parts, processes, and requirements. Every component is a potential point of failure and adds mass, cost, and complexity. This principle extends from questioning the need for fiberglass sound dampeners in a battery pack to challenging the need for plastic caps on battery prongs. He constantly asks why a part exists and forces his teams to justify its inclusion from a first-principles physics perspective, believing that the simplest solution is almost always the best one.
🛠️ Engineering Drives the Entire Process#
The design, engineering, and manufacturing of a product cannot be separated into different departments. To do so is a “recipe for dysfunction.” Engineers must have their desks on the factory floor to feel the “immediate pain” of their design decisions, allowing for a rapid feedback loop. Product managers must understand code, and engineering leaders must have hands-on experience—like a cavalry leader who knows how to ride a horse. This ensures that the people with the deepest technical understanding are leading and that practical manufacturing constraints directly inform the design from the very beginning.
🔥 Be Ultra Hardcore and Have an Unlimited Capacity for Pain#
Revolutionizing industries is not for the faint of heart and requires a level of intensity greater than most people have ever experienced. Musk expects a 24/7, all-in commitment to the mission, not just from himself but from his entire team. He believes excellence is the capacity to take pain, having endured periods of extreme stress, night terrors, and physical illness when his companies were on the verge of collapse. This hardcore ethos prioritizes the mission above all else, including work-life balance and personal comfort.
📊 Know the Details and the Idiot Index#
Deep technical and financial knowledge is non-negotiable. A leader must understand the details of their own area better than anyone. To combat inefficiency, Musk uses the “idiot index”—the ratio of a finished product’s cost to the cost of its raw materials. If the ratio is high, it means the manufacturing process is inefficient and ripe for innovation. He will grill employees on the idiot index of their components, believing that not knowing these fundamental numbers is grounds for termination.
🎭 Showmanship is Salesmanship#
A powerful story or a dramatic demonstration is more effective than any PowerPoint presentation. From creating a fake server at Zip2 to impress investors to building a working, high-performance electric smart car prototype for Daimler executives in just a few weeks, Musk understands that selling a vision requires creating moments of magic and awe. This extends to product design, where unexpected and fun features—like the “happy handshake” of a Model S door handle—create an emotional connection and generate organic excitement.
🚀 The Mission Comes Before Camaraderie#
Being friends with your team is dangerous because it makes it hard to challenge their work and make tough decisions. Your duty is to the success of the overall enterprise, not to the feelings of the individual in front of you. A failure to address a problem or a poor performer to spare their feelings can lead to the failure of the entire company, which hurts everyone far more. Clear, direct, and often “hardcore” feedback is essential for progress, and physics does not care about feelings.
