Workplace Spotlight: Tesla is 'All In' on Innovation
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In my last workplace spotlight, I looked at the corporate culture of Netflix and how their CEO, Reed Hastings, leads with the principles of freedom and responsibility.
In today's blog, I examine the organisational culture at Tesla and how Elon Musk has created a company where hierarchical models of business are broken down to create a workplace where the staff are all in.
Innovative Problem-Solving Organizational Culture
Tesla Inc., formerly Tesla Motors, was formed in 2003 by American entrepreneurs Martin Eberhard and Marc Tarpenning and was named after Serbian American inventor- and innovator- Nikola Tesla.
The company was initially formed to develop an electric car and was backed by several investors, including Paypal founder, Elon Musk, who took over as CEO in 2008.
Since then, Tesla's share price has skyrocketed as Musk has led to the company to extraordinary success in the automotive- and more recently the solar energy- industries, largely through championing an innovative, problem-solving culture that aims 'to develop profitable solutions to current and emerging problems in the target market'.
Somewhat unconventional in his approach to organisational structure, and indeed, life, Musk has based the Tesla company culture on the following principles.
Move Fast
In the fast-paced, technologically driven automotive and energy markets, speed is increasingly important in decision making and responding to rapidly evolving trends. Through empowering people to make decisions multilaterally, the Tesla team are able to respond to current issues and challenges with immediacy and innovation.
Do the Impossible
In continually striving to innovate in the electric auto and solar markets, Tesla's human resources department is constantly training its team to go beyond the conventional in terms of creativity and productivity, encouraging them to think outside the box. Creating a culture that encourages unconventional thinking has led Tesla to be the leader in their field in terms of product innovation and profitability.
Reason from "First Principles"
One of Musk's most significant additions to Tesla's company culture is the introduction of reasoning from 'first principles'. First devised by Aristotle, first-principles thinking is one of the most effective ways 'to reverse-engineer complicated problems and unleash creative possibility'.
The idea is to break complex issues into their most basic elements and then build them back up to find solutions.
Think Like Owners
Tesla encourages its staff to think, and act, as though they own the company, empowering them to make decisions with the company's best interests at the forefront of their thinking.
This element of company culture strips away hierarchical decision making and broadens communication and decision-making powers. Ultimately, it creates a workplace culture where the entire team is ALL IN.
We are ALL IN
By flattening the usual structures of organisational hierarchy, Musk encourages communication between everyone involved in the company's processes. This attitude emancipates its staff, freeing them up to act in the above ways. Without a standard business hierarchy, personnel are able to respond swiftly to market challenges, to innovate continually, and take the lead on breaking down complex problems to find solutions. Ultimately Musk has created a situation where the entire team is invested in Tesla's success.
At Infinity HR, we specialise in helping our clients develop tailored corporate cultures that suit their vision and values. Contact Iolanda on 0400 489 743 or email info@infinityhr.com.au today to learn more.
References:
First Principles: The Building Blocks of True Knowledge
Tesla Inc.'s Organizational Culture & Its Characteristics (Analysis)
This Email From Elon Musk to Tesla Employees Describes What Great Communication Looks Like