Tesla CEO Elon Musk has shared his mantra to reduce errors and improve decision-making at his companies. This “simple algorithm” forms the backbone of the tech billionaire's productivity and operational efficiency strategies.
The method was first highlighted in a post on X (formerly Twitter), where an image of the algorithm displayed on a wall at SpaceX drew attention. Mr Musk responded to the post, explaining the rationale behind his creation.
“This simple algorithm that I came up with to help me make fewer dumb mistakes in the future is incredibly powerful,” he wrote.
The five steps of Mr Musk's algorithm are:
- Make requirements less dumb
- Delete the part or process step
- Optimise
- Accelerate
- Automate
Walter Isaacson mentioned the algorithm in Mr Musk's biography and detailed each step. He said that Mr Musk insists every requirement be scrutinised and traced back to an individual, rather than accepting it as a directive from a vague entity such as the “legal department” or “safety department.”
Mr Musk also advocates deleting parts or processes wherever possible. He notes they may have to be added back later, adding that if people do not end up adding back at least 10 per cent of them, they didn't delete enough.
Optimisation should only come after unnecessary elements have been removed. Mr Musk warns against the common mistake of simplifying and optimising components or processes that shouldn't exist in the first place.
The world's richest man also encourages accelerating processes only after ensuring the first three steps have been thoroughly addressed. Reflecting on his experience, in the biography, Mr Musk noted, “In the Tesla factory, I mistakenly spent a lot of time accelerating processes that I later realised should have been deleted.”
Automation should be the final step in the process. Mr Musk noted that attempting to automate flawed systems early on can lead to significant inefficiencies.
