202411071119 Status: #idea Tags: #business #elon # Elon Musk's approach to business The Algorithm: 1. **Question Every Requirement**: Each requirement should come with the name of the person who made it. You should never accept that a requirement came from a department, such as the "legal department" or the "safety department". You need to know the name of the real person who made that requirement. Then you should question it, no matter how smart that person is. Requirements from smart people are the most dangerous because people are less likely to question them. 2. **Delete Any Part or Process You Can**: You may have to add them back later. In fact, if you do not end up adding back at least 10% of them, then you didn't delete enough. 3. **Simplify and Optimize**: This should come after step two. A common mistake is to simplify and optimize a part or a process that should not exist. 4. **Accelerate Cycle Time**: Every process can be sped up. But only do this after you have followed the first three steps. In the Tesla factory, Elon mistakenly spent a lot of time accelerating processes that he later realized should have been deleted. 5. **Automate**: This comes last. The big mistake in Nevada and Fremont was that Elon began by trying automate every step. Tesla should have waited until all the requirements had been questioned, parts and processes deleted, and the bugs were shaken out. [[Corollaries to Elon Musk's approach to business]] --- # References [[Elon Musk]]