Tesla made concise messages and fast bad news part of its culture

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

1. 8:40

   That would kind of freak you out. It freaked me out a little bit too. Yeah. How did you go about building a window? culture there i think all culture comes from founders and the culture was was built and the culture was a first principles culture it was a culture of rapid communication so you didn't have to most organizations you go up the hierarchy with your question or your suggestion and it comes back down and it looks like an ekg the communication pattern in a company elon was like let's make it look like a dead patient go straight across the organization if you need an answer go to the person that has that answer. Don't go through their boss or their boss's boss. Go directly to them because that's going to help with speed of decision-making. So that kind of culture was already set. What the business needed was a bunch of scaffolding. So I went about building a

2. 9:26

   team and then building approach so that we could have a mechanism to essentially double the company every six to eight months, like super rapid growth. And in so doing, we kind of built a culture. We built on the culture that Tesla already had, but we really wanted to create a meritocracy where people that were contributing got big new assignments, and we call them battlefield promotions. Like, if you were performing on the battlefield, we could literally grab you and say, hey, look, how would you like to run this worldwide?

3. 9:57

   And people would say, I don't know how to do that. And we'd say, well, nobody's ever done it before. So, good. Welcome to the club. And we'd give them huge responsibilities, big remits, big assignments. and more often than not they would come through and become fantastic leaders what an incredible way to do that yeah yeah it was super fun and still is because i still work with a number of those people today what did you learn about communicating with elon that was different it has to be concise and um and so we had this kind of fun we had fun with our communication in the sense that we gave each other a challenge.

4. 10:34

   I don't know who came up with it. And I think it was just his idea. He said, do you think we could try to run the organization on three-sentence emails? First sentence is, here's my problem. Second sentence is, here's what I think the solution is. Third sentence is, here's my next step. And if I need resources, permission, ask in that sentence. And so we started to experiment with this. And it was really the key to communicating with him because he likes that sort of concise, get to the point.

5. 11:08

   Have you super thought about the problem? Have you really thought about the solution? And he thought about the next steps. And that was kind of key to communicating with him. And the second key that he said all the time was, don't sit on bad news. Give me bad news as fast as you know about it. And he said this to everybody because bad news only gets worse with time. so like give me bad news fast and the way that you could get on his on his bad side was saving bad news and i watched that over time uh and so those were the two keys to communication like be