Wednesday, August 30, 2017

This Email From Elon Musk to Tesla Employees Describes What Great Communication Looks Like

This Email From Elon Musk to Tesla Employees Describes What Great Communication Looks Like

A newly acquired email from Musk outlines a brilliant philosophy. But it's easier said than done.


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CREDIT: Getty Images
Throughout the years, billionaire entrepreneur Elon Musk has demonstrated the art of masterful communication.
The following is a perfect example: It's a copy of a previously unpublished email Musk sent to Tesla employees a few years ago. Sent with the subject line "Communication Within Tesla," it explains the problem with how information is transmitted in most companies, and how things should be different at Tesla.
Here's the email (which Tesla has verified was sent to all employees):
Subject: Communication Within Tesla
There are two schools of thought about how information should flow within companies. By far the most common way is chain of command, which means that you always flow communication through your manager. The problem with this approach is that, while it serves to enhance the power of the manager, it fails to serve the company.
Instead of a problem getting solved quickly, where a person in one dept talks to a person in another dept and makes the right thing happen, people are forced to talk to their manager who talks to their manager who talks to the manager in the other dept who talks to someone on his team. Then the info has to flow back the other way again. This is incredibly dumb. Any manager who allows this to happen, let alone encourages it, will soon find themselves working at another company. No kidding.
Anyone at Tesla can and should email/talk to anyone else according to what they think is the fastest way to solve a problem for the benefit of the whole company. You can talk to your manager's manager without his permission, you can talk directly to a VP in another dept, you can talk to me, you can talk to anyone without anyone else's permission. Moreover, you should consider yourself obligated to do so until the right thing happens. The point here is not random chitchat, but rather ensuring that we execute ultra-fast and well. We obviously cannot compete with the big car companies in size, so we must do so with intelligence and agility.
One final point is that managers should work hard to ensure that they are not creating silos within the company that create an us vs. them mentality or impede communication in any way. This is unfortunately a natural tendency and needs to be actively fought. How can it possibly help Tesla for depts to erect barriers between themselves or see their success as relative within the company instead of collective? We are all in the same boat. Always view yourself as working for the good of the company and never your dept.
Thanks,
Elon
I'm a huge fan of the message this email communicates, namely:
Communication that is forced to go through the "proper channels" is a recipe for
  • killing great ideas; and
  • burying the feedback that a company needs to thrive.
There's only one problem with Musk's proposed solution:
It's extremely difficult to cultivate in the real world.

Why Great Communication Is Hard

All companies say they value transparency and honesty. Most are lying.
Has Musk been able to achieve this type of environment (where communication is free-flowing and departments work together) at Tesla? I have no idea.
However, I worked several years for a nonprofit that did exemplify this way of thinking. It was an extremely mission-driven organization, one in which nearly everyone bought into the philosophy because they saw managers and executives walking the walk. (In fact, it was a personal experience there that inspired my very first column on Inc.com.) After leaving that organization and consulting for dozens of others, I realized just how rare this type of workplace is.
So how do you build a company culture in which employees actually work together, instead of against one another?
Ask yourself the following:
  • Do I see the big picture in my organization? Does my team?
  • Do I encourage dissenting opinions and viewpoints? Do I reward employees for giving me authentic feedback, even if I don't agree with it?
  • Do I demonstrate empathy, by taking employees' problems seriously--and actively helping them find solutions?
  • Do I promote an environment that encourages growth, even if it means (at times) losing a great employee to another team, another department--or even another company?
Of course, leaders have to set the example. That means looking beyond individual achievements and key performance indicators, which takes courage, insight, and emotional intelligence. It means making yourself available to hear as many voices as possible.
Above all, it means being ready to hear what employees really think.
Because the first step to solving a problem is knowing it's there in the first place.
7 of Elon Musk's Best Tweets
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The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.


Cummins Beats Tesla To The Punch And Introduces An All-Electric Heavy-Duty Truck


Cummins Beats Tesla To The Punch And Introduces An All-Electric Heavy-Duty Truck




Photo: Cummins

With Tesla purportedly gearing up to introduce an all-electric semi next month, diesel engine supplier Cummins took some of the automaker’s buzz away on Tuesday, revealed an all-electric prototype truck of its own.


Billed as a Class 7 Urban Hauler Tractor, the 18,000-pound truck was built by Roush and is geared for local deliveries, according to the Indianapolis Star. The company said it plans to begin selling a 140 kWh battery pack for bus operators and commercial truck fleets in 2019, reports Forbes.
With a claimed range of 100 miles, it certainly seems apt to handle short drives, and Cummins said it only takes an hour to charge. By the time it’s introduced in 2020, Forbes reports, the company hopes to drop that number to 20 minutes. A hybrid, with a diesel engine used on-board as a generator, is planned later and will offer 300 miles in range.
Cummins’ chief exec, Thomas Linebarger, told Forbes that electric technology isn’t quite ready for 18-wheelers, mostly due to the long distances they travel. Tesla’s truck will reportedly be set to handle lengthier tasks, with 200 to 300 miles on a single charge, but that remains far below the 1,000 miles a typical heavy-duty truck can handle on one tank of gas.
Cummins may have introduced a prototype truck cab to show off, but the company only intends to produce the powertrain for trucks, Forbesreports.

Dara Khosrowshahi is officially Uber's new CEO

Dara Khosrowshahi is officially Uber's new CEO

Dara Khosrowshahi expedia ceoDara Khosrowshahi. Expedia
Dara Khosrowshahi has accepted the position of Uber CEO after he was selected by the company's board on Sunday.
The former Expedia CEO's appointment comes after the embattled Uber cofounder Travis Kalanick was ousted as CEO of the world's most valuable private company in June. Uber has suffered an exodus of its top ranks amid mounting public and legal scandals.
"I am excited to welcome Dara Khosrowshahi as Uber's next CEO," Kalanick said in a statement on Tuesday. "With a deep passion for team building, Dara grew Expedia into one of the world's most successful travel and technology platforms. Casting a vote for the next chief executive of Uber was a big moment for me and I couldn't be happier to pass the torch to such an inspiring leader."
In a memo sent to Uber employees, the company's board called Khosrowshahi "the best person to lead Uber into the future" and said his appointment was also aimed at "improving our culture and making Uber the best place to work."
Expedia couldn't immediately be reached for comment.
Khosrowshahi was the dark horse in Uber's chaotic and highly publicized CEO search. HP Enterprise CEO Meg Whitman and former GE CEO Jeff Immelt were the other two candidates considered by the board for the role over the past weekend.
Though Khosrowshahi had indicated he intended to accept the Uber CEO position earlier Tuesday in press interviews, his contract wasn't finalized. His hiring most likely comes with a hefty price tag that could top $200 million thanks to unvested stock options from his previous gig.
Khosrowshahi, 48, has been CEO of Expedia for 12 years, during which he turned it into the biggest online travel agency in the US. An Iranian immigrant who moved to New York as a kid, he started his career at the investment bank Allen & Co. before serving as CFO at the media company IAC.
Now that his new CEO job is official, Khosrowshahi will greet Uber employees at an all-hands meeting at the company's San Francisco headquarters on Wednesday.
You can read Uber's full announcement to employees about Khosrowshahi's hiring below:
Team,
We are delighted to announce that Uber’s Board has voted unanimously to appoint Dara Khosrowshahi to be our new CEO.
Dara came to America at nine years old when his family escaped Iran on the eve of the Iranian Revolution. He grew up in Tarrytown, N.Y., trained as an engineer at Brown, and spent many years at IAC serving as Chief Financial Officer and in various operational and strategic roles.
In 2005, he became CEO of Expedia, which he built into one of the world’s leading travel and technology companies, now operating in more than 60 countries. He has four children and not surprisingly loves to travel, one of his favorite trips being to the Angkor Wat temples in Cambodia where his wife Sydney said yes to marrying him.
We’re really fortunate to gain a leader with Dara’s experience, talent and vision. The Board and the Executive Leadership Team are confident that Dara is the best person to lead Uber into the future building world-class products, transforming cities, and adding value to the lives of drivers and riders around the world while continuously improving our culture and making Uber the best place to work.
Dara will be joining us tomorrow, August 30, for an All Hands. Add your questions for Dara here, and stay tuned for a calendar invite with more details. He’ll also be meeting with employees around the world in smaller groups over the next few weeks, and spending time with drivers.
Please join us in welcoming Dara on what promises to be an exciting ride!
-Yasir, Garrett, Matt, Ryan, Arianna, Travis, Wan Ling & David

Warren Buffett is now Bank of America's top shareholder

Warren Buffett is now Bank of America's top shareholder

FILE PHOTO - Berkshire Hathaway CEO Warren Buffett visits the BNSF booth before the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S. on May 6, 2017. REUTERS/Rick Wilking/File PhotoFILE PHOTO - Berkshire Hathaway CEO Warren Buffett visits the BNSF booth before the Berkshire Hathaway annual meeting in OmahaThomson Reuters
BAC Bank of America
 23.86 0.22 (+0.90 %)
DisclaimerGet real-time BAC charts here »
Aug 29 (Reuters) - Warren Buffett's Berkshire Hathaway Inc has become the largest shareholder of Bank of America Corp by exercising its right to acquire 700 million shares at a steep discount, more than tripling an investment it made six years ago.
Bank of America on Tuesday announced the exercise of the warrants, which gave Berkshire the right to buy the bank's shares for about $7.14 each. Bank of America shares closed down 14 cents at $23.58 on Tuesday.
The announcement was made after U.S. markets closed.
The exercise gives Berkshire a roughly 6.6 percent stake in the second-largest U.S. bank, based on an increase in the number of Bank of America shares outstanding, Reuters data show. (Reporting by Jonathan Stempel in New York; Editing by Dan Grebler)

S&P sees U.S. keeping AA+ rating if it avoids default

S&P sees U.S. keeping AA+ rating if it avoids default

A view shows the Standard & Poor's building in New York's financial district February 5, 2013. REUTERS/Brendan McDermid  A view shows the Standard & Poor's building in New York's financial district Thomson Reuters
NEW YORK (Reuters) - Standard & Poor's said on Tuesday the United States would maintain its AA+ credit rating, its second highest, as long as the federal government avoids a default even if it does not increase the debt ceiling in a timely manner.
"If the debt ceiling is not raised in a timely way, we expect, at a AA+ level of confidence, that the government will take necessary measures to avoid default on the debt which our ratings address," Robert Sifon-Arevalo, a managing director in S&P's sovereign ratings group, said in a statement.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

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