Lessons Learned

This is not just a good book about Elon. It's packed with knowledge gleaned from the trenches. Any one can learn a lot just by reading this book.

Elon's Algorithm (in priority sequence)

  1. Question every requirement - it doesn't matter if it came from the legal department or safety department, it doesn't matter if the person who made it is smart. The rule is to attach a name to that requirement and question that person - including Elon himself. Then make the requirement less stupid
  2. Delete any part or process you can - you can always add them back if it was a mistake. If you didn't add back at least 10%, then you didn't delete enough
  3. Simplify and optimize - this comes after Step 2 because it makes no sense simplifying something that should have been deleted to begin with
  4. Accelerate cycle time - any process can be speeded up, but follow the priority sequence because you could be accelerating a process that should have been deleted already
  5. Automate - this has to be the last when unneccesary process are already deleted and what's left has been simplified and then accelerated. The mistake Elon did was to automate everything before the 'tests' were implemented.

Elon Commandments

  1. All technical managers must have hands-on experience - if you're in charge of roofing, then you should be able to install a roof yourself. In short, you add your real-world experience to the job and not just be an order-giver
  2. Comradery is dangerous - because it's hard to fire someone who already became your friend. Or it's hard to correct the mistake of someone who has become a friend. Keep an arms-length distance with colleagues.
  3. It’s OK to be wrong - no one's perfect. If you're not willing to be wrong, then you'll always stay on the safe side, afraid of making mistakes, not coming up with anything brilliant or noteworthy. Note: Donald Trump said that the worst employee is the 'good' employee because he will not contribute to the leveling-up of the organization. You can't fire him either because he hasn't done anything wrong. Trump, Elon and Steve Jobs all want to filter their crew into the A-List that can go 24/7 of work or contribute great ideas or both.
  4. Never ask your troops to do something you’re not willing to do - Elon sleeps on the factory floor, gets underneath the assembly line. Note: Mike doesn't order me to clean the dirty pond - he goes into the dirty pond which prompts me to get myself dirty to clean the pond.
  5. Whenever there are problems to solve, don’t just meet with your managers - talk to the guy on the production floor so you know the full story. Managers can be good in hiding things or making mistakes and blaming it on the lower ranks. Note: Antonio Gracias is very good in talking to the production people on the floor to know what's really happening on the ground.
  6. When hiring, look for attitude first, then skill - skill can be taught. Attitude is a whole new mine field with deep roots. Note: when applying for Chapters Online, my future boss, Ilan, hired me because he liked my 'moving forward' and 'can do' attitude
  7. Laws of physics - they are the only rules - everything else is a recommendation (requirements, guidelines, etc.)
  8. Optimize production patches - densities, flow and processes are in sync for a smoother production flow with no bottleneck. This is so obvious in everyday life. E.g. in a supermarket, there's the cashier with a long line of people, and a bagger who's just waiting idly for the next processing. Solution? Have one bagger per 2 cashiers or add more cashiers.
  9. Go as close to the source as possible for information - so if you want to know about welding stainless steel, don't talk to the company executives, talk to the welders
  10. Question every cost - can it be done in-house for less? Can a cheaper material be substituted? What discount if we buy volume? Even if cost targets were not met, it would have been reduced substantially
  11. Maniacal sense of urgency - impose tight deadlines because processes can always be speeded up. Most of Elon's deadlines are unrealistic and sometimes not even warranted. But sometimes, it actually gets done - even the workers surprise themselves. But if the deadline is impossible, and smart engineers know this, they just get demoralized
  12. Learn by failing - instead of avoiding problems (as specified by government agencies' protocols), Elon seeks the problems and fixes it. He goes by creating a quick prototype, testing, blowing things up (knowing at what point something blows up), analysing, repeat. He did this in the first launch of Starship with Raptor engines - it did blow up
  13. Improvise - when a pressurized tank needed to be replaced due to a bulge, Elon instructed the crew to just hammer it in and test. It worked, saving the company lots of money and precious time. This approach sometimes backfired, but it was inspiring for the crew when it works
  14. Finding inspiration from toy models - Elon made Tesla using the one-piece diecast of a toy Model S. This was never done before and there was no manufacturing in existence at that time. It meant having the biggest diecast machine ever to be manufactured. It was done. What used to be made with hundreds of parts that are welded, bonded and rivetted together and still created gaps, leaks and rattling, is now an 80-second job that was quick, easy and cheap to make - it took Elon to have that thing conceptualized and manufactured.
  15. Idiot Index - a high ratio between cost of raw material to the finished component meant the manufacturing process was inefficient or the design was too complicated. When an engineer couldn't say the Idiot Index of a component of the top of his mind, Elon chewed him up - it was very traumatic to the engineer
  16. Reach out to interesting people - Elon and Kimbal would read about an interesting person in the newspaper. They would reach out. Often, it leads to a lunch conversation, which leads to a job or opportunity
  17. Vertical integration - Tesla was successful because it manufactured its own components in-house instead of outsourcing. This proved extrememly useful during the supply-chain crisis when car companies halted production while Tesla continued churning out cars from its assembly line. Additionally, Tesla had quality control and had kept the costs down
  18. Designers, Engineers and Production should work together - they should physically be working together close to the production line as possible. They are independent, but should function as one intelligence...or different instruments in an orchestra but delivering harmonious symphony. They should openly communicate to one another. But there should be a distinction if the operation is engineer-centric or design-centric

From a Worker's Perspective

  1. Don't say NO to an authocrat - Elon does not take NO for an answer, no matter how unrealistic the goal is. If you have a boss like Elon, don't say NO. Air your concern and finish off saying you'll do your 101%. But document the process and the steps you've taken, so that when it fails, you can show the boss why it failed and remind him of your earlier concerns
  2. Being fired vs resigning - these 2 ways of leaving the company kept being bounced around. Either people couldn't stand Elon anymore and resigned or Elon fired them. What are the ramifications? I was curious and took this as an opportunity to learn. I asked ChatGPT:

    Fired: if the employee is fired for cause (incompetence or misconduct), it can leave a stigma and affect future career opportunities - more reference checks will have to be made by prospective employers. Unemployment benefits can be taken away. It also produces anxiety and deep emotional disturbance. Severance pay can be withheld if for cause, otherwise, severance can be negotiated (When I was fired from AIM Funds Management for calling my boss incompetent, management looked for dirt to fire me for cause - they couldn't find any. Thus, they had to give me the standard severance pay. However, I told them that I will seek legal counsel to ensure that my rights were not violated - this alarmed them, and I knew I was rattling a saber. Without any further negotiation, the company offered me a generous severance pay and 30 days of Unemployment Benefits. Had I asked for a penny more, my case would have been elevated from HR to Legal. Of course I accepted.)

    Resigned: resignation is seen more favorably by a prospective employer. It means you made a pro-active choice and took control of the situation. Unemployment Benefits are sketchy, but if not for cause (unsafe work conditions, harassment, etc), you can negotiate. Severance Pay can be negotiated, especially if you left under amicable terms. Legal consideration might be to sign a non-compete or non-disclosure clause - be careful what you sign. You can usually negotiate the terms - last paycheck, final package, benefits, etc. Unlike being fired where anxiety overwhelms, resigning gives you a sense of control and empowerment.

    Musts: either way, you must update your resume, network extensively and seek career counseling. Seek emotional support from friends and family during this difficult period.