TechTechnology/Innovation
The Marginal Value of Elon Musk’s Time 100M/hour:
Know the secrets behind his disruptive innovations!
January 18-
“If I make slightly better decisions, I could affect the outcome of my companies by a billion dollars.”- Elon Musk once said.
The marginal value of his time is >$100M/hour.
Here’s how Elon makes decisions and innovates 10x better than everyone else
From payments to electric cars to commercial space travel, Elon has disrupted every field he has entered.
Today he runs (6) billion dollar companies and every company has disrupted it’s respective industries
Here’s his 5-step process on how he does it
Step 1 – Question the requirements
SpaceX journey began when Elon tried buying ICBMs in Russia
He inquired and was quoted $8M each. Upon returning Musk realized that building rockets himself would be much cheaper.
He estimated the cost of materials for a rocket at around $2M and built it in less than $3M.
Like any engineer would approach problem-solving, Musk also advices spending some time doing requirement analysis.
By critically evaluating requirements, it is easy to weed out assumptions that are outdated or based on false assumptions.
Former Twitter team told Elon it would take 6 months to migrate from an old server when Elon asked to shut it down.Elon went to the server farm himself and got it done in 6 days.Elon frequently kicks off intense efforts he calls stunts, where he sets an impossible deadline and forces the team to achieve it.”
Step 2 – Delete what should not exist
Elon fired 80% workforce when he acquired Twitter.
Musk brought in associates to help evaluate existing staff and determine their employment.
He deleted whole divisions like diversity teams, and content moderation that were deemed unnecessary.
The focus is on eliminating any parts of the process that do not add value.
Musk encourages a mindset of reduction rather than addition; if a step or component is not critical to achieving the desired outcome, it should be removed.
Step 3 – Simplify & Optimize
Musk implemented the concept of Giga casting, which involves creating large, single-piece castings for the underbody of Tesla vehicles.
This move drastically reduced the number of parts required for assembly, simplifying the manufacturing process.
The goal in this step is to ensure that the process operates at its best possible configuration while minimizing costs.
Step 4 – Accelerate (Urgency)
Former Twitter team told Elon it would take 6 months to migrate from an old server when Elon asked to shut it down.
Elon went to the server farm himself and got it done in 6 days.
Elon frequently kicks off intense efforts he calls stunts, where he sets an impossible deadline and forces the team to achieve it.
This is because Elon perfectly understands two universal laws:
In physics, Boyle’s Law states that a gas expands to fill a space
At work, Parkinson’s Law says that work expands to fill the time allotted
Step 5 – Automate
At Tesla, robotic arms are used extensively on assembly lines to handle repetitive tasks, which frees up human workers for more complex problem-solving roles.
A word of caution: Musk has repeatedly warned pitfalls of automating early-on without fully optimizing the processes at hand.
Only after you’re streamlined and refined your existing business processes and SOPs should you automate.
Elon Musk’s 5-step improvement plan proves an important point:
Sometimes, the best way to win is to go back to the fundamentals.
By focusing on making the pie instead of fighting for slices, Elon reshaped industries
So, what can we learn from Elon Musk’s approach to decision-making and innovation?
Question EverythingChallenge assumptions and deeply evaluate requirements. Don’t accept “that’s just how it’s done” as an answer. Critical thinking can uncover cost-effective and groundbreaking solutions.
Cut the ExcessIdentify and remove what doesn’t contribute value. Simplification often means eliminating redundant steps, roles, or systems that drain resources and stifle progress.
Prioritize SimplicityOptimize processes to their simplest form. Complexity can be a barrier to efficiency; breaking it down can lead to faster, cheaper, and better results.
Embrace UrgencySet ambitious timelines and act with a sense of urgency. Parkinson’s Law reminds us that work will expand to fill the time given—tight deadlines push for innovative and focused solutions.
Automate WiselyStreamline and refine processes before introducing automation. Automating inefficiencies only perpetuates them; focus first on creating solid systems.
By revisiting the basics and questioning established norms,
Elon Musk demonstrates that innovation isn’t always about adding more—it’s about doing what matters, faster and better.
Success often lies in simplifying, optimizing, and boldly challenging the status quo.
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