My Journey with Elon Musk’s famous Algorithm

When you think of innovation and efficiency in the business and tech world, one name that undoubtedly pops up is Elon Musk. He’s the mastermind behind game-changing ventures like Tesla, SpaceX, and ChatGPT. But what’s fascinating about Musk is not just his groundbreaking work; it’s the method behind his madness, something he casually refers to as “the algorithm.”

So, during my position as CEO in Beverages group I started to exercise Musk’s Algorithm. It was so attractive that I became a broken record on the algorithm, but I think it’s helpful to say it to an annoying degree.

Whether you’re a budding entrepreneur, a professional looking to up your game, or someone seeking to boost your problem-solving skills, my opinion such algorithm can revolutionize your approach to efficiency and innovation.

For those who haven’t had the chance to hear about it yet, Musk’s Algorithm has 5 steps:

Step 1: Question every requirement.

Let’s kick off with the first step – questioning everything. Imagine every project requirement, procedure, or rule coming with a name tag of the person who thought it up. You must insist on this. It’s about challenging the norm, refusing to accept directives blindly, and even questioning the smartest folks around. And believe me, it is terribly difficult to get people in the organization used to thinking and working like that, because people are slaves to habits, they are afraid of change and afraid to take responsibility. But this step taught me and my associates the power of critical thinking, refining requirements, and ensuring they’re genuinely valuable.

Step 2: Delete any part or process you can.

Now, we move on to decluttering – step two. This one’s about ditching the unnecessary bits. You know, those parts, processes, or tasks that hang around like old junk in the attic. Often, we keep them because “that’s how it’s always been done.” Musk tells us to let go of the dead weight and free up resources for what truly matters.

When I first became a manager in corporation, one of my jobs was to prepare and deliver weekly KPI status report to 20 or so people. The whole process took over 2 hours. One day I wondered whether anyone actually read the report, so I created it but didn’t deliver. No one noticed.

Just delete! You may have to add them back later. In fact, if you do not end up adding back at least 10 percent of them, then you didn’t delete enough.

Step 3: Simplify and optimize.

Step three is all about simplifying and optimizing what’s left. It’s like Marie Kondo-ing your work processes. You make them as efficient as possible. Remember, don’t optimize something that should’ve been kicked to the curb earlier. Simplify, streamline, and make things easier, not just faster.

A couple weeks after I’d stopped delivering those reports, I asked a few people if they needed me to start delivering them again. Nope. Then I asked if we still needed to collect the data involved. In most cases we didn’t because it was already being collected elsewhere.

Step 4: Accelerate cycle time.

Speed freaks, this one’s for you, but tread carefully. Step four is about speeding things up – but only after you’ve trimmed the fat in the previous steps. It’s finding ways to get things done quicker without sacrificing quality. Think of it as finding the express lane to productivity.

Step 5: Automate.

Finally, the last piece of the puzzle is automation. But don’t jump into this too soon. Automation’s about letting machines take over essential tasks once you’ve fine-tuned everything else. It’s like having a robot assistant who does the tedious stuff while you focus on the important bits.

That comes last. The big mistake I did at previous job was that I began by trying to automate every step. We should have waited until all the requirements had been questioned, parts and processes deleted, and the bugs shaken out.

After you’ve completed the first four steps, what’s left — the things you really need to do, that are truly important, that genuinely add value — can then be optimized and automated. Get rid of all the fluff, and then make what’s left as effective and efficient as it can be.

Now, let’s get real. How does all this theory work in the real world? Well, I dug into Elon Musk’s companies, especially Tesla and Twitter (as the newest example of radical algorithm implementation), to see how he applies these principles. I found instances where he challenged quality control rules, simplified manufacturing, and eventually introduced automation. It’s like he’s walking the talk.

Beyond the core steps, Musk’s Algorithm has some bonus rules. I’m talking about the importance of hands-on experience for managers, the courage to admit when you’re wrong, and the genius of “skip level” meetings – where you connect with the folks just below your bosses. These extras make the algorithm even juicier.

But what’s the point of all this? Well, Musk’s Algorithm isn’t just for tech nerds; it’s for everyone. It’s a toolbox for enhancing efficiency, sparking innovation, and cracking complex problems. By applying these principles, you can set yourself up for success while dodging unnecessary complications.

Of course, it’s not all sunshine and rainbows. Applying Musk’s Algorithm can come with its fair share of challenges. Think resistance to change or misinterpreting requirements. But fear not because you’ll see that benefits that algoritam bring are much bigger than possible hurdles. Elon Musk’s Algorithm isn’t just a secret sauce for tech moguls; it’s a recipe for success that anyone can follow. By questioning norms, decluttering, simplifying, speeding up, and automating, you can supercharge your efficiency and innovation. Remember, it’s not about being a rocket scientist – it’s about daring to think differently and break free from the ordinary.

About the Author
Ivan Cevra is a business management expert with a wealth of experience in the corporate sector. After completing his graduate studies at the Faculty of Economics, he continued his education and earned an MBA degree from the prestigious IEDC Bled. With over 20 years of experience working in corporations, Ivan has emerged as a successful leader in executive positions.