Ep 693 | Maximize Effiency by Using Elon's 5 Step Algorithm (REPLAY)

Brian Gubernick breaks down Elon Musk's five-step algorithm for improving any process: question every requirement, delete what you don't need, simplify what remains, accelerate cycle time, then automate. Musk's rule: at least 10% of deletions should be re-added later to make sure you cut enough.
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Thank you for joining me today. It's Brian Gubernick, and welcome to the No Days Off Podcast, where we believe that every single day brings a new opportunity to get better. Let's get into it. Today I want to talk about Elon Musk, a guy we've certainly talked about a time or two here at the No Days Off Podcast. But I want to talk about Elon Musk's algorithm. His algorithm, which is really a 5-step process that Elon uses to improve virtually everything in terms of making things simpler, more efficient. And it's a concept that I recently learned about when reading Elon's— the recent Elon book written by Walter Isaacson, the biography of Elon. That is a very lengthy book, yet an amazing story. And within this story again talks about Elon's algorithm. So what is Elon's algorithm? What am I talking about? Elon basically applies this algorithm to everything. As he describes it, he leverages this algorithm to an annoying degree. So the next time maybe that you're aiming to be a bit more efficient or effective, whether that's professionally, or personally, maybe you want to try out this algorithm. Give it a try. Now, before I dive into the algorithm, I want to stress, because I'm going to stress it again, make sure you complete each step I'm about to give you in this algorithm. Make sure you complete it in order. Okay? So I want you to follow this order. So there's 5 steps in Elon's algorithm. Step 1, when looking at a process, question every single requirement. Question every requirement. Now, when Elon talks around this particular step, this very first step, he believes that every requirement should come with the name of the person who made it a requirement. Never ever accept that a requirement just came from a department such as like a legal department or a safety department. Know the real person who in fact made that requirement. Then you should question it no matter how smart that person is. Requirements from smart people, according to Elon, are actually some of the most dangerous because people are less likely to question them. So always do so. Always question requirements, even if— and as Elon would say— even if the requirement had come from him. Then make the requirements less dumb. So think about that, you know, within your business, within your world, there is some requirement, there's some process that's currently in place or a component of a process that's currently in place. Maybe this process was put in place by somebody really, really smart, really, really great at their role. Still question it. Why is it here? Why are we doing this? What value does this bring? How could this be done differently? Question everything. Step 1, question every requirement. Step 2, delete any part or process you can. Step 2, delete. Elon would tell you that anything that you can delete, make sure you go ahead and do so. Any part, any process. If you think about, for example, like an assembly line at Tesla, There were certain steps within the process that he would question. And if he couldn't get a good answer, he'd immediately delete that step. Now, some would contend that it was jeopardizing quality or even safety. And he'd say, maybe, but maybe not. Let's delete it. We could always add it back later. As a matter of fact, Elon would say, if you do not end up adding back at least 10%, of the things you deleted, then you probably didn't delete enough. So delete any part of a process you can. In doing so, you'll create more efficiency. More oftentimes than not, you're going to find that what you believe to be essential actually wasn't all that essential. People just don't notice. Step 3, simplify and optimize. Now this simplify and optimize step must come after step 2, which is delete. So make sure that you question every requirement, number 1. Number 2, delete any process or any part of a process that you can. And then step 3, simplify and optimize. A common mistake is to simplify and optimize a part or a process that you should have deleted. So make sure you delete first. Now that you've deleted, Simplify and optimize. So maybe that means once you've got this process where, you know, whatever wasn't deleted still remains, now you ask the question, how could this be simpler? How could this be more efficient? How can we combine or optimize this part of the process? How do we combine these steps? How do we make it a better experience for the customer? Now this applies again, both producing, say, a product, but also delivering a service. How do we make for a better experience versus having multiple components or people having to work with an individual? Let's say, how do we combine this into one? Step 4, accelerate cycle time. As Elon would tell you, every process can be accelerated. Every process could, can be speeded up, but only after, only after you take the first 3 steps. Remember, question every requirement, delete any part of the process, simplify and optimize. Now, once you've done those things, accelerate cycle time. In the Tesla factory, Elon said that he mistakenly spent a lot of time accelerating processes that he later realized he should have just deleted. So don't make that mistake. How can you accelerate? How can you cut a minute, an hour, a day, a week even off of certain processes? If you think about, say, a customer experience, how can you accelerate specific interactions? How could you accelerate delivery of specific requirements? How could you accelerate that? And as a result, improve the customer experience. Lastly, number 5: automate. Automate. This comes last. Elon was trying to automate every step, and that was a mistake that he made in a couple of his factories. What he should have, should have done, according to him, was waited until all the requirements had been questioned, things had been deleted, and and all the bugs had been shaken out, then begin to automate. So what's left after the first 4 steps? Things that you really need to do. The things that are really important, the things that actually provide value. Those things could be optimized for and they can be automated. Get rid of all of the fluff, get rid of all the nonsense, make, make, you know, worth or make use of what's, what's, most effective, what's most efficient, what's worth the actual most in terms of the products, uh, a process or production or the service that you're delivering. So get rid of all the fluff. In wrapping this up, right, I think that this, this algorithm that Elon outlines here, I want you to think about how this could apply in your world. The focusing question for you How could you use this 5-step process in your business today? How about using this 5-step process in your personal world today? How could you begin to question every requirement? How could you believe— begin to delete any part or process that you can? After you do those things, how can you simplify and optimize? And from there, how can you accelerate cycle time? And then lastly, How do you automate? My guess that in doing so, not only do you become more effective and efficient, you provide better service, better experience. You get more done. You get more done. That's all I have for you today. The No Days Off Podcast. Thank you so much for listening. And remember, every single day brings a new opportunity to get better. So let's get after it. [MUSIC] [MUSIC]
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