Elon Musk's 5-step product development masterclass

A 5-step process to creating and developing iconic products (and services).

Read time: 3 minutes

Ever wondered how Elon Musk's company's builds revolutionary products?

From electric cars to reusable rockets, his approach seems magical.

But what if I told you it all comes down to five simple steps?

Today, we're diving deep into Musk's 5-step product development framework.

A framework that helped him revolutionize multiple industries.

And the best part? You can apply it to any product (or service) you're building.

Intrigued? You should be.

Let's decode this brilliant approach...

The 5-Step Musk Method

1. Make Requirements Less Dumb

Imagine you're building a house. The architect you've hired hands you elaborate plans for a mansion. But do you really need all those rooms?

This is where Musk starts. He questions everything. Even question ideas from the smartest people because they are the people who need questioning the most.

The reality is, 'smart' people often overcomplicate things.

But also, why questioning everything works so well as a starting point is that our requirements gather dust over time. What worked yesterday might not work today.

So when you start questioning, you avoid expensive assumptions. You strip things down to the basics by making the requirements less dumb.

It's a first-principles approach, something that Musk is well known for.

An example from Tesla:

Tesla's Model 3 was originally planned out as a $30K supercar. But Musk questioned every feature:

  • Did it need the fancy door handles of the Model S?

  • Was the ultra-premium interior necessary?

By challenging these "smart" requirements, Tesla made an affordable EV possible.

2. Delete the Part or Process Step

Think of your morning routine. If you could teleport to work, would you need a car?

That's the level of thinking Musk applies to product development.

His golden rule: If you're not occasionally adding things back in, you're not deleting enough.

This is important because with every component you add complexity. With each extra part or process added, you create an additional point where things could go wrong. There's an extra zone of weakness, an extra potential point of failure.

So as Leonardo da Vinci famously said:

Simplicity is the ultimate sophistication

Leonardo Da Vinci

An example from SpaceX:

SpaceX's Starship design eliminated the need for a launch escape system. Instead of adding safety features, they made the entire rocket safer. Result? Reduced complexity, weight, and cost.

3. Simplify and Optimise

Here's where most people get it wrong. They optimise what exists rather than question if it should exist at all.

It's like tuning a gas engine to perfection when you should be building an electric car.

You can't exactly question an approach like this, can you? It forces you to focus on what matters most. By doing so, you don't over-optimise on unnecessary elements. This means you save resources for genuine improvements.

An example from Tesla:

Back in the early days of Tesla, the Tesla factory had a car assembly process of over 100 steps. Instead of optimising each step, Musk's team took a smarter approach. They eliminated dozens of steps, resulting in faster production with fewer errors.

4. Accelerate Cycle Time

Speed matters, but only after the first three steps.

As Musk says,

If you're digging your grave, you don't want to do it faster.

Elon Musk

Think of it like cooking: You don't turn up the heat until you have the right ingredients and recipe.

With faster product development cycles you create more learning opportunities. Each new development comes about quicker, leading to quicker iteration and better products. So with this approach, speed becomes your competitive advantage.

An example from SpaceX

SpaceX builds rockets faster than anyone else. But this wasn't always the case. They only accelerated this after:

  • Questioning traditional aerospace requirements

  • Eliminating unnecessary components

  • Simplifying what remained

So get the basics in place first, otherwise you're wasting your time here.

5. Automate

Automation is the cherry on top, not the foundation. It's the last step for a reason.

Imagine automating a bad process: You're just making mistakes faster.

This works wonders because automation multiplies the effectiveness of good processes. Not only does it free up human creativity for higher-level problems. But when done right, it reduces errors and increases consistency.

An example from Tesla:

Tesla's Model 3 production line initially had too much automation. Musk learned the hard way: Automate only after the process is perfect. Now, Tesla's factories are a brilliant collaboration of humans and machines.

Key Takeaways

  1. Question everything, especially "smart" requirements

  2. Default to removing, not adding

  3. Only optimise what needs to exist

  4. Speed up only when you're sure you're going in the right direction

  5. Automate last, not first

Moral of the Story:

Building great products isn't about adding more.

It's about focusing on what matters and being ruthless about it.

Start with questioning requirements. End with automation.

And remember: The best process step is the one you remove.

Until next week,

Ryan

P.S. What requirements will you question this month?

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