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Marc Andreesen explains Elon’s management approach: 1. Engineer-first organizations and find truth by speaking with those working on the floor (avoid management layers). 2. Every week, find the most important bottleneck at a company and parachute in to fix it. 3. Keep model of all engineering and business moving...

1,160,095 görüntüleme • 7 ay önce •via X (Twitter)

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Marc Andreessen: "There's 2 reasons they're incurious about it... Elon Musk also generates emotion in people." For a hundred years, management books taught us the exact same system for running a company: put someone at the top to oversee the machine, wait for reports, and enforce the rules. "And then there's Elon who just doesn't do any of that and has a completely different playbook." The Elon Playbook in a nutshell: 1- It’s only engineers. "People who matter in your company are the engineers, the people who understand the technical content of what you're doing." 2- Ruthlessly violate the chain of command. "You never ever talk to mid-level management. If they need it for whatever vacation policy, it's fine. But if you are the CEO to get the truth, you only talk to the line engineer." 3- Parachute into the bottleneck. "Your job as the CEO is every week to fix whatever is the most important bottleneck to the company's progress. You parachute in, find the engineers that are working on that problem, and you basically stay up with them all night until they fix the problem." 4- Engineering reviews, NOT product reviews. "You get all the engineers together and you have them each present what they're doing for 5 minutes. The result of that is you know every single engineer in the company, you know exactly what they're working on." 5- Act instantly on talent. "If somebody's not good you fire them on the spot. If somebody's great you go all out to get them." Traditional CEOs rely on reports and middle management. Elon ignores the rules to get straight to the truth.

Ian Miles Cheong

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Marc Andreessen on Elon Musk: "Every week he identifies the biggest problem and fixes it. That's 52 problems solved per year." "He has an operating method that is very unusual by modern standards. I'm not aware of another current CEO who operates the way that he does. And I think probably the single biggest question in all of business right now is... why don't more CEOs operate the way that he does?" Andreessen explains: "If you go back in history, you find characters more like him. The industrialists of the late 1800s, early 1900s... Henry Ford, Andrew Carnegie, Thomas Watson who built IBM." On what makes Musk different: "The top-line thing is this incredible devotion from the leader of the company to fully, deeply understand what the company does. To be completely knowledgeable about every aspect of it. To be in the trenches, talking directly to the people who do the work. Deeply understanding the issues. Being the lead problem solver in the organization." The method: "Basically what Elon does is he shows up every week at each of his companies. He identifies the biggest problem the company is having that week... and he fixes it. Then he does that every week for 52 weeks in a row. And then each of his companies has solved the 52 biggest problems that year." On everyone else: "Most other large companies are still having the planning meeting for the pre-planning meeting for the board meeting for the presentation... with the compliance review and the legal review. It's this level of incredible intellectual capability coupled with incredible force of personality, moral authority, execution capability, focus on fundamentals... that is just really amazing to watch." On why top talent wants to work with him: "The side effect is he attracts many of the best people in the world to work with him. Because if you work with Elon... the expectations are through the roof in terms of your level of performance. He is going to know who you are. He is going to know what you've done. He is going to know what you've done this week. He is going to know if you're underperforming. And he may fire you in the meeting if you're not carrying your weight." But for those who match his commitment: "If you are as committed to the company as he is and working hard... many people who have worked for him say they had the best experience of their lives." On delegation... and the bottleneck: "Most CEOs have a problem knowing when to delegate. The Elon method is a little bit different. He actually delegates almost everything. He's not involved in most of the things his companies are doing. He's involved in the thing that is the biggest problem right now... until that thing is fixed. Then he doesn't have to be involved anymore. Then he can go focus on the next thing that's the biggest problem." Andreessen uses a manufacturing analogy: "In any manufacturing chain, there's always a bottleneck. Something keeping the line from running the way it's supposed to. Sometimes the bottleneck is at the beginning... we can't get enough raw material. Sometimes it's at the end... we don't have enough warehouses. Or it might be somewhere in the middle. Whatever the bottleneck is... is holding everything up. Job number one is to remove that bottleneck and get everything flowing again." Musk universalized this: "He looks at every company like it's some sort of conceptual assembly line... sometimes a literal assembly line making cars and rockets. Any given week, there's guaranteed to be one main bottleneck. One thing holding people back." The resolution: "I'm going to micromanage the solution of that. I don't need to manage everything else... because everything else, by definition, is running better than that. So I can go focus on that." On going directly to the source: "When he identifies the bottleneck, he goes and talks to the line engineers who understand the technical nature of the bottleneck. If it's people on a manufacturing line, he's talking to people directly on the line. If it's a software development group, he's talking to the people actually writing the code." What he doesn't do: "He's not asking the VP of engineering to ask the director of engineering to ask the manager to ask the individual contributor to write a report... to be reviewed in three weeks. He doesn't do that. He goes and personally finds the engineer who actually has the knowledge about the thing. Then he sits in the room with that engineer and fixes the problem with them." Andreessen explains why this inspires loyalty: "The technical people who work with him are like... wow, if I'm up against a problem I don't know how to solve, freaking Elon Musk is gonna show up in his Gulfstream and sit with me overnight in front of the keyboard or in front of the manufacturing line and help me figure this out." He asks: "If you're a normal CEO running a normal company... how can you possibly compete with that?" On why other CEOs don't do this: "It's the way management is taught. Most classically in something like Harvard Business School or Stanford Business School. It's management as it was developed in the 1950s, 60s, 70s... the so-called scientific school of management." He describes it: "Management as a generic skill you can apply to any industry. You could manage a soup company or a car company... they're kind of all the same. There's a common set of management practices. It's process. How to manage the balance sheet. How to set the review schedule for meetings. How to do compliance. How to hire and motivate executives. How to resolve interpersonal conflicts. All these general business skills." The problem: "Those general business skills are very useful in lots of contexts. But that training gives you none of what you need to go do what Elon does." Andreessen concludes: "Elon pushes as far as he can... not doing all the stuff you're classically trained to do... so that he can spend all of his time doing the things only he can do. And it turns out that has this incredible catalytic, multiplicative effect. His companies are just incredibly amazing."

Jaynit

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Marc Andreessen explains the "Elon Method" of leadership, and it completely contradicts how most CEOs operate today. Most leaders get bogged down trying to manage every single moving part of their business. But according to Andreessen, Elon's approach is actually the exact opposite: he delegates almost everything. He isn't involved in 99% of what his companies are doing on a daily basis. Instead, his entire focus is hunting for one specific thing: The Bottleneck. In any manufacturing chain, there is always a bottleneck keeping the line from running the way it's supposed to. It could be a lack of raw materials at the beginning, or a shortage of warehouse space at the end. Whatever it is, that bottleneck is holding everything up. Job number one is to remove it and get things flowing again. Elon has universalized this concept. He looks at every company like it's a conceptual assembly line—sometimes a literal one making cars and rockets. He knows that on any given week, there is guaranteed to be one main bottleneck holding his people back. So, what’s the secret to his management paradox? He relentlessly micromanages the solution to that one specific problem. He doesn't need to manage everything else because, by definition, the rest of the company is running better than the bottleneck. Once it's fixed, he moves on to the next biggest problem. But here is the part where most non-technical CEOs would completely fail trying to replicate this method: When Elon identifies the bottleneck, he has zero patience for bureaucracy. He doesn't ask the VP of Engineering to ask the Director to ask the Manager to ask the individual contributor to write a report to be reviewed in three weeks. He would throw that entire chain of command out the window. Instead, he bypasses the middleman completely. He goes straight to the manufacturing line or the software group, personally finds the exact line engineer who actually understands the technical nature of the bottleneck, sits in a room with them, and fixes the problem together.

Ian Miles Cheong

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Marc Andreessen on what makes Elon impossible to compete with “I’m not aware of another CEO who operates the way he does.” Marc believes you have to go back in history to the industrialists of the late 1800s and early 1900s to find founders comparable to Elon Musk (e.g. Henry Ford, Andrew Carnegie, Thomas Watson, Andrew Mellon, Cornelius Vanderbilt). “Those guys ran very similar to the way Elon runs things… The top line thing is just this incredible devotion from the leader of the company to fully, deeply understand what the company does, to be completely knowledgeable about every aspect of it, and to be in the trenches and talking directly to the people who do the work to deeply understand the issues. And then be the lead problem solver in the organization. Basically what Elon does is he shows up every week at each of his companies, identifies the biggest problem the company’s having that week and he fixes it. He does that every week for 52 weeks in a row and then each of his companies has solved the 52 biggest problems that year.” Marc juxtaposes this process with more conventional CEOs who respond to problems with planning, meetings, and reports. The other crucial factor in Elon’s success that Marc points to is his ability to attract incredible talent: “Many of the best people in the world want to work with him because if you work with Elon the expectations are through the roof in terms of your level of performance. And he is going to know who you are and what you’ve done. He’s going to know what you’ve done this week and if you’re underperforming. And he may fire you in the meeting if you’re not carrying your weight. But if you are as committed to the company as he is, and hard working and capable, many people who have worked for him say that they had the best experience of their lives.” Marc recalls a famous line from somebody who joined SpaceX from another aerospace company and said, “It’s like being dropped into a shocking zone of competence. Everybody around me is so absolutely competent.” And lastly, as Marc argues, Elon’s technical ability is another competitive advantage versus non-technical CEOs: “When he identifies the bottleneck, he goes and talks to the line engineers who understand the technical nature of the bottleneck… He’s not asking the VP of Engineering to ask the Director of Engineering to ask the manager to ask the individual contributor to write a report that’s to be reviewed in three weeks. He doesn’t do that. What he does is he goes and personally finds the engineer who actually has the knowledge about the thing, and then he sits in the room with that engineer and fixes the problem with them. And again, this is why he inspires such incredible loyalty from especially the technical people who he works with. They’re just like, ‘Wow, if I’m up against a problem I don’t know how to solve, freaking Elon Musk is going to show up in his Gulfstream and he’s going to sit with me overnight in front of the keyboard or in front of the manufacturing line and help me figure this out.’” Video source: Chris Williamson (2024)

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Marc Andreessen on what makes Elon impossible to compete with “I’m not aware of another CEO who operates the way he does.” Marc believes you have to go back in history to the industrialists of the late 1800s and early 1900s to find founders comparable to Elon Musk (e.g. Henry Ford, Andrew Carnegie, Thomas Watson, Andrew Mellon, Cornelius Vanderbilt). “Those guys ran very similar to the way Elon runs things… The top line thing is just this incredible devotion from the leader of the company to fully, deeply understand what the company does, to be completely knowledgeable about every aspect of it, and to be in the trenches and talking directly to the people who do the work to deeply understand the issues. And then be the lead problem solver in the organization. Basically what Elon does is he shows up every week at each of his companies, identifies the biggest problem the company’s having that week and he fixes it. He does that every week for 52 weeks in a row and then each of his companies has solved the 52 biggest problems that year.” Marc juxtaposes this process with more conventional CEOs who respond to problems with planning, meetings, and reports. The other crucial factor in Elon’s success that Marc points to is his ability to attract incredible talent: “Many of the best people in the world want to work with him because if you work with Elon the expectations are through the roof in terms of your level of performance. And he is going to know who you are and what you’ve done. He’s going to know what you’ve done this week and if you’re underperforming. And he may fire you in the meeting if you’re not carrying your weight. But if you are as committed to the company as he is, and hard working and capable, many people who have worked for him say that they had the best experience of their lives.” Marc recalls a famous line from somebody who joined SpaceX from another aerospace company and said, “It’s like being dropped into a shocking zone of competence. Everybody around me is so absolutely competent.” And lastly, as Marc argues, Elon’s technical ability is another competitive advantage versus non-technical CEOs: “When he identifies the bottleneck, he goes and talks to the line engineers who understand the technical nature of the bottleneck… He’s not asking the VP of Engineering to ask the Director of Engineering to ask the manager to ask the individual contributor to write a report that’s to be reviewed in three weeks. He doesn’t do that. What he does is he goes and personally finds the engineer who actually has the knowledge about the thing, and then he sits in the room with that engineer and fixes the problem with them. And again, this is why he inspires such incredible loyalty from especially the technical people who he works with. They’re just like, ‘Wow, if I’m up against a problem I don’t know how to solve, freaking Elon Musk is going to show up in his Gulfstream and he’s going to sit with me overnight in front of the keyboard or in front of the manufacturing line and help me figure this out.’” Video source: Chris Williamson (2024)

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SkyPirl Official 🎈🎈

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Marc Andreessen: Elon inspires incredible loyalty from his employees because they know he'll just sit all night with them to fix a problem. “Elon actually delegates almost everything. He's involved in the thing that is the biggest problem right now until that thing is fixed. And then, he doesn't have to be involved in it anymore, he can go focus on the next thing that's the biggest problem for that company right now. The job number one is to remove that bottleneck and get everything flowing again. I think Elon basically has universalized that concept and he basically looks at every company like it's some sort of conceptual assembly line. When he identifies the bottleneck, he goes and he talks to the line engineers who understand the technical nature of the bottleneck. If it's people on a manufacturing line, he's talking to people directly on the line. Or if that's people in a software development group, he's talking to the people actually writing the code. He's not asking the VP of Engineering to ask the Director of Engineering to ask the manager to ask the individual contributor to write a report that's to be reviewed in three weeks. He doesn't do that. He would throw them all out of the window. There's just no way he would do that. He goes and personally finds the engineer who actually has the knowledge about the thing, and then he sits in the room with that engineer and fixes the problem with them. This is why he inspires such incredible loyalty, especially from the technical people who he works with. They're like, wow, if I'm up against a problem I don't know how to solve, freaking Elon Musk is going to show up in his Gulfstream jet, and he's going to sit with me overnight in front of the keyboard or in front of the manufacturing line, and he's going to help me figure this out.” Interview of Marc Andreessen 🇺🇸 by Chris Williamson on Youtube, December 14, 2024

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