Greatest Leadership Lessons from Elon Musk

Put passion before profit

Putting Passion Before Profit - Leadership Elon Musk
Elon Musk's first leadership lesson is that he is passionate about his work. He definitely does not labor for money, but rather to guarantee that his businesses survive and develop in order to pursue his hobbies. Musk would probably tell you that he works harder for humanity than anybody else, and I'd have to agree. Musk established SpaceX with the ultimate objective of human expansion to Mars. He is still working on rockets that will one day allow humans to fly to Mars. Musk developed Tesla to cut fossil fuel pollution, so perhaps we won't have to leave to colonize Mars as soon. Musk is currently developing AI and neuralink technologies to benefit humans. He is very worried about AI, and wants to develop safeguards that protect humans.

Be riskier

SpaceX is led by Elon Musk. Elon Musk has always taken dangerous actions. Many of his firms have come close to failing. He has undoubtedly faced several calamities (rocket explosions, automobile problems, etc.), but I believe his accomplishment demonstrates the benefits of pushing a little harder and taking a few more risks. I will never undertake the unsafe things Elon does, and I do not endorse them. Elon's success, on the other hand, inspires me to be more open, take more chances, and take more calculated risks.

Question every requirement and cost

Many times with Musk's firms, he has rejected product concepts or procedures that are too difficult or expensive. One of Musk's guidelines is to "question every requirement," and requirements from intelligent people are the most harmful since they are least likely to be questioned.
"The only regulations are those determined by physical laws. Everything else is a recommendation." — Elon Musk
Musk presents a "idiot index" that he created. This is the ratio between the overall cost of a component and the cost of its raw materials. If a machine part costs $100 but the raw aluminum used to make it costs just $5, the index is high. As Musk stated, "If the ratio is high, you’re an idiot.”

Simplify by deleting parts or steps

Musk has a fantastic understanding of principles and will always urge engineers to decrease components or stages. If a component is secured in place by four screws, Musk will request that it be tried with only one screw. He frequently goes too far, and the final design includes two. This still represents a 50% savings in both components and installation time! Musk states: "If you do not end up adding back at least 10% of them, then you didn't delete enough."

Control More Of The Value Chain

The value chain represents all aspects of delivering a product, from raw material to the sale and delivery. I typically recommend companies focus on their strength areas (their core competencies) and use suppliers for other components and processes. Musk often wants to own the design and control more aspects of his value chain. I suspect much of this is due to controlling costs and making it easier for him to meet his aggressive timelines. It also removes some of the intermediate “profit takers” in his process and makes his companies less susceptible to supply chain issues and supplier cost increases. SpaceX and Tesla have grown even during market downturns due to this control.