Business and Technology

Elon Musk

by Walter Isaacson

7 rips · Hiring and leading · Starting something · Technology and AI

Isaacson's in-the-room biography of Musk -- SpaceX, Tesla, Twitter -- and the operating system inside his head: the algorithm, the idiot index, demon mode.

Mechanisms (4)

mechanism #696

The algorithm: Musk's five commandments for building anything

The order is the insight.

Musk's oft-repeated mantra, the five-step 'algorithm': 1. Question every requirement. Each should come with the name of the person who made it. You should never accept that a requirement came from a department, such as from "the legal department" or "the safety department." Requirements from smart people are the most dangerous, because people are less likely to question them. Always do so, even if the requirement came from me. Then make the requirements less dumb. 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 speeded up. But only do this after you have followed the first three steps. 5. Automate. That comes last.

Why it matters

The order is the insight. Most organizations automate first and question never; Musk's claim is that optimizing or accelerating something that should not exist is the cardinal waste. And step one has a sting: requirements from smart people are the most dangerous precisely because nobody challenges them.

Use when: Running any engineering or production effort -- walk the five steps in order before spending a dollar on automation, and attach a human name to every requirement you inherit.

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mechanism #697

The idiot index: price the raw materials, accuse the process

The index turns cost from a fact into an accusation.

Musk developed what he called an "idiot index," which calculated how much more costly a finished product was than the cost of its basic materials. If a product had a high idiot index, its cost could be reduced significantly by devising more efficient manufacturing techniques. Rockets had an extremely high idiot index. Musk began calculating the cost of carbon fiber, metal, fuel, and other materials that went into them. The finished product, using the current manufacturing methods, cost at least fifty times more than that.

Why it matters

The index turns cost from a fact into an accusation. A 50x markup over raw materials means you are not paying for stuff, you are paying for process -- and process, unlike physics, can be reinvented.

Use when: Pricing or building anything physical -- compute the raw-materials floor first. A high idiot index means the manufacturing method is the real product, and that is where the leverage lives.

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mechanism #699

Learn by failing: move fast, blow things up, repeat

SpaceX's speed came from treating failure as telemetry.

Musk took an iterative approach to design. Rockets and engines would be quickly prototyped, tested, blown up, revised, and tried again, until finally something worked. Move fast, blow things up, repeat. "It's not how well you avoid problems," Mueller says. "It's how fast you figure out what the problem is and fix it." Buzza and Mueller pushed their engines until they broke, and then said, "Okay, now we know what the limits are."

Why it matters

SpaceX's speed came from treating failure as telemetry. Each explosion bought the one data point no simulation can give you: the actual limit. The military spec approach -- test every version for hundreds of hours under every condition -- was tedious and expensive; one engine on a test stand, flown if it worked, was faster and cheaper.

Use when: Stuck in analysis paralysis on a reversible decision -- build the cheapest test that can fail loudly and buy the real data instead of modeling it.

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mechanism #702

Hire for attitude: skills can be taught

Skills are a training problem with a known solution; attitude is a character problem with none.

When hiring, look for people with the right attitude. Skills can be taught. Attitude changes require a brain transplant.

Why it matters

Skills are a training problem with a known solution; attitude is a character problem with none. Hiring constantly inverts this, buying impressive resumes attached to unteachable people -- then paying for the mismatch in comradery that makes it hard to challenge anyone's work.

Use when: Hiring -- screen for urgency and ownership first, train the skills after. If the attitude is wrong, no resume compensates.

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Arguments (1)

argument #700

Only the laws of physics are immutable

Every inherited rule is some person's past decision wearing a uniform.

All requirements should be treated as recommendations, he repeatedly instructed. The only immutable ones were those decreed by the laws of physics.

Why it matters

Every inherited rule is some person's past decision wearing a uniform. Physics does not negotiate, but everything else is a recommendation you can re-earn or discard -- which is why Musk demanded the name of the actual human behind every requirement.

Use when: Blocked by "that's the requirement" -- find the human who wrote it, ask why it made sense then, and test it against physics now.

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Concepts (1)

concept #698

The best part is no part

Deletion beats optimization.

When SpaceX decided to catch the Starship booster with the launch tower's arms instead of landing legs, and a follower asked why he didn't just use landing legs, Musk responded, "Legs would certainly work, but the best part is no part."

Why it matters

Deletion beats optimization. A part that does not exist cannot fail, cannot weigh anything, and cannot cost anything. The design question is not how to make it better but whether it needs to exist at all.

Use when: Reviewing any design -- ask what can be removed entirely before asking what can be improved.

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Passages (1)

passage #701

Demon mode: the storm inside the machine

Isaacson's portrait insists the drive and the darkness are one system, not two people.

Grimes on Musk's dark state: "Demon mode is when he goes dark and retreats inside the storm in his brain." She watched the air in the room change as his mood shifted. "When we hang out, I make sure I'm with the right Elon," she later explained. "There are guys in that head who don't like me, and I don't like them."

Why it matters

Isaacson's portrait insists the drive and the darkness are one system, not two people. The same volatility that produces the algorithm produces the storm -- the maniacal urgency and the demon mode are the same engine running at different temperatures.

Use when: Judging intense operators, including yourself -- the question is not whether the dark mode exists, it is whether the output justifies the weather.

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