Haxmor 

Elon Musk has outlined a five-step process designed to reduce in-efficiency and waste at his production sites. Here’s a breakdown:

Step 1. Question Every Requirement

The first step is to scrutinize every existing requirement within your processes. This involves identifying the individual responsible for each requirement.

Musk emphasizes the importance of knowing exactly who made each requirement: “Don’t accept that a requirement comes from a department like ‘legal’ or ‘safety’; Identify the specific person behind it.”

Once you know who is responsible for each requirement, you can begin questioning their validity, regardless of how intelligent or influential the individual may be.

Musk warns, “Requirements from smart people are the most dangerous because they’re less likely to be questioned. Always challenge them, even if they come from me, and aim to make them less ‘dumb.’”

Step 2. Eliminate Unnecessary Processes

The next step focuses on removing any part of the process that isn’t essential. This approach encourages a mindset of subtraction, which is often undervalued in management.

Musk advises, “Delete more than you’re comfortable with. If you don’t end up re-adding at least 10% of what you removed, you probably didn’t delete enough.”

Step 3. Simplify and Optimize

After questioning requirements and eliminating unnecessary parts, the next step is to simplify and optimize what remains. The sequence of these steps is crucial to prevent wasting time on processes that ultimately aren’t needed.

Musk notes, “A common mistake is to simplify and optimize a part or process that shouldn’t exist in the first place.”

Step 4. Speed Up Processes

The fourth step involves accelerating the cycle time of your processes. Speed should only be considered after thoroughly following the first three steps.

Musk reflects, “Every process can be sped up, but this should only be done after questioning requirements, eliminating unnecessary parts, and simplifying. I wasted time speeding up processes that should have been deleted.”

Step 5. Automate

The final step is automation. Now that your processes are streamlined, it’s time to explore what can be automated.

Musk learned from experience: “[Automation] comes last. The mistake was trying to automate everything first, without questioning, eliminating, and simplifying the processes beforehand.”

Musk’s algorithm may seem simple, but its effects can be profound. These steps aren’t limited to production settings – they can be applied across an entire organization. Repeatedly implementing them can lead to significant improvements in various bureaucratic processes, such as budgeting, procurement, and expense reimbursement. The potential benefits of applying these principles to reduce bureaucracy across your organization are vast.

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Emily is a contributor to haxmor.com