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Elon Musk's Company-Building Principles

11 principles for building at speed, cutting waste, and keeping an entire company pointed at one mission.

1
Apply The Algorithm constantly
a. Question every requirement
b. Delete any part of the process you can
c. Simplify and optimize
d. Accelerate cycle time
e. Automate
2
The only rules are the ones dictated by the laws of physics
Everything else is a recommendation.
3
Compare the cost of a finished product to the cost of its raw materials
The Idiot Index. If a product has a high index, its cost could be reduced through more efficient manufacturing techniques.
4
If a timeline is long, it's wrong
5
Hire for attitude
Skills can be taught.
6
The leader should be on the front lines
7
Camaraderie is dangerous
It makes it hard for people to challenge each other's work.
8
Don't fear losing
It hurts the first 50 times, but then you'll be able to play with less emotion and take more risks.
9
Design and production should never be separated
Keep everything together and feedback immediate.
10
Stay heads-down focused on doing useful things for civilization
11
The mission comes first
Keep the entire company committed to a common goal.
"The only rules are the ones dictated by the laws of physics. Everything else is a recommendation." — Elon Musk, CEO of SpaceX
Leadership First Principles Startups Manufacturing Management

Curated by Joshua Bascos · Digestable