Elon Musk scoffs at number of MBAs running corporate America: 'Get out there on the g**damn front line' and 'show employees that you care'

[ReddykwRun]

Dec 14, 2020 THE BLAZE Sarah Taylor


Elon Isn't shy about expressing his feelings

Elon Musk, Tesla and SpaceX CEO, said recently that there are too many business school grads — and not enough innovative entrepreneurs — who are running American companies.

The billionaire also said that far too many number-crunchers run American companies and are more concerned about their bottom lines rather than focusing on what really matters: their product and, as a result, the satisfaction of their customers.

What are the details?

During last week's Wall Street Journal CEO summit, Musk — who recently moved from California to Texas — said, "I think there might be too many MBAs running companies. There's the MBA-ization of America, which I think is maybe not that great. ... There should be more focus on the product itself, less time on board meetings, less time on financials."

He added, "A company has no value in itself. It only has value to the degree that it is [an] effective allocator of resources to create business services that are of a greater value than the costs of the inputs."

Musk explained that he, too, understands how stifling the board room can be and said that he feels a far greater benefit when he's connecting on the factory floor or engaging in the creative process in mulling over his designs.

"When I have spent too much time in a conference room, that's when things have gone awry, and when I go spend time on the factory floor or really using the cars, thinking about the rockets, that's where things have gone better," he reasoned.

In his stirring remarks, Musk also urged business CEOs to "get out there on the damn front line and show them that you care, and that you're not just in some plush office somewhere."

The 49-year-old billionaire — and one of the world's five richest men — does not have a graduate degree.

 

[alan auerbach]

Dec 14, 2020 THE BLAZE Sarah Taylor


Elon Isn't shy about expressing his feelings

Elon Musk, Tesla and SpaceX CEO, said recently that there are too many business school grads — and not enough innovative entrepreneurs — who are running American companies.

The billionaire also said that far too many number-crunchers run American companies and are more concerned about their bottom lines rather than focusing on what really matters: their product and, as a result, the satisfaction of their customers.

What are the details?

During last week's Wall Street Journal CEO summit, Musk — who recently moved from California to Texas — said, "I think there might be too many MBAs running companies. There's the MBA-ization of America, which I think is maybe not that great. ... There should be more focus on the product itself, less time on board meetings, less time on financials."

He added, "A company has no value in itself. It only has value to the degree that it is [an] effective allocator of resources to create business services that are of a greater value than the costs of the inputs."

Musk explained that he, too, understands how stifling the board room can be and said that he feels a far greater benefit when he's connecting on the factory floor or engaging in the creative process in mulling over his designs.

"When I have spent too much time in a conference room, that's when things have gone awry, and when I go spend time on the factory floor or really using the cars, thinking about the rockets, that's where things have gone better," he reasoned.

In his stirring remarks, Musk also urged business CEOs to "get out there on the damn front line and show them that you care, and that you're not just in some plush office somewhere."

The 49-year-old billionaire — and one of the world's five richest men — does not have a graduate degree.

"... get out there ... front line ...."

That's common practice in Japanese factories, where the execs take turns donning the company uniform and spending time at a lowly station on the line, sometimes getting their hands dirty.

Not sure Musk appreciates the symbolism. The other workers contrive to pass by -- in order to give a low bow to the exec. What's meaningful is that the exec bows back -- just a bit less low. That would be irrelevant in the West, so it can be hard to understand how in Japan this could have more impact than a raise.

 

[ReddykwRun]

"... get out there ... front line ...."

That's common practice in Japanese factories, where the execs take turns donning the company uniform and spending time at a lowly station on the line, sometimes getting their hands dirty.

Not sure Musk appreciates the symbolism. The other workers contrive to pass by -- in order to give a low bow to the exec. What's meaningful is that the exec bows back -- just a bit less low. That would be irrelevant in the West, so it can be hard to understand how in Japan this could have more impact than a raise.

When I served in the U S Coast Guard we had a C.O. at one of my air station assignments that knew EVERYONE on the hanger deck by their first name, you ask me how he did this, he led by Example, got out of the office every chance he could, handed us wrenches, went flying with us and most important, he sat down and ate with us as each shop on the hanger had specified days of the week we would each grill out and he was always welcome to come dine with us. Once when I was volunteering for a charity summer camp for a few years each summer, a 7 day camp for kids fighting cancer he got word of it and told me to cancel my leave because the Coast Guard would send me and several other coasties to the camp ON Orders and we did not need to use our leave days. We even had a H-65 Helicopter come up and do rescue hoists on the lake. Leading by example goes a long way. We knew he had our back and we covered for the command in many other ways anytime we saw an opportunity.

Semper Paratus

 

[ldjessee]

When I served in the U S Coast Guard we had a C.O. at one of my air station assignments that knew EVERYONE on the hanger deck by their first name, you ask me how he did this, he led by Example, got out of the office every chance he could, handed us wrenches, went flying with us and most important, he sat down and ate with us as each shop on the hanger had specified days of the week we would each grill out and he was always welcome to come dine with us. Once when I was volunteering for a charity summer camp for a few years each summer, a 7 day camp for kids fighting cancer he got word of it and told me to cancel my leave because the Coast Guard would send me and several other coasties to the camp ON Orders and we did not need to use our leave days. We even had a H-65 Helicopter come up and do rescue hoists on the lake. Leading by example goes a long way. We knew he had our back and we covered for the command in many other ways anytime we saw an opportunity.

Semper Paratus

Commanders/leaders like that are rare.