'Too many MBAs ruining companies,' Elon Musk explains.
Vložit
- čas přidán 13. 12. 2020
- In this interview, Elon Musk explains why too many MBAs are bad for companies. He also criticizes current American CEOs. He also describes how to run a company effectively and make great products.
#ElonMusk #Tesla #SpaceX #Neuralink #BoringCompany #Starlink - Auta a dopravní prostředky
All MBAs quoting Elon till he dropped this one
Bruuuhhhh I showed this to a friend in BCom Management and his face omg!
No agree, i am an MBA and i totally agree with him because I do see it where I work. Which have the view that 35% of all management employees could be cut and companies will co tinue producing as wlthey are. So hopefully I will get in s8ch a leading position soon that I could make the change!
They are all attacking Elon now.
jasif tbh communications and management degrees are completely useless. It’s just an easy degree so you can have an easy 4 years in uni
@@davidalejandrogutierrezgra7376 I think these 35% is all due to Politics, Government, Culture, the issue with Employment and to keep the State out of the company's ass. And Religion too!
Elon is right on. I worked at SpaceX as an EE for over 5 years before retiring. Best job I ever had in 45 years of being an engineer in Silicon Valley and LA. At SpaceX there was no accountant or MBA BS. We got stuff done without management getting in the way. Every engineer could go out and buy stuff they needed up tp $1000 with no approvals needed. Over that and up tp $10,000 ones boss had to sign off. At other companies i would need to get all sorts of sign offs to buy a 10 cent resistor. MBA and accountant led management teams put all these controls in place that make it very hard to get stuff done. They make it so hard to get stuff done, one just gives up and just collects the pay check by pretending to go to work. Any upper management team reading this, free your technical teams and you will be amazed what they can do and the wealth will pour in like that for Tesla and SpaceX.
Ty for sharing.
Tesla and SpaceX are broke, but due to lack of financial control they don't know this.
@@paraglide01 And you do? Aight
@@paraglide01 They are both growth oriented businesses and as of right now their goal is not to make a profit especially in the case of SpaceX. Everything more or less gets reinvested which powers innovation and expansion into new markets. Not making a profit is not the same as being broke as would-be profits are reinvested and right now Tesla is neither as it is profitable (albeit through government incentives). The catch is that it is actively opening new factories and the real costs for Tesla seem to be the sheer amount of automated technologies that need to be designed and fabricated from scratch inside of Tesla Gigafactories all over the world increasing efficiency
@@paraglide01 tesla just spent 1.5 billion in bitcoin. Thats not broke
i got an MBA some years ago, this is my take: MBA programmes make simple things complicated in order to make them look complex only to justify high tuition fees.
Exactly!!!
Well said. You covered it in a great way
Great comment!!! The great educated of North America..
Same could be said for a lot of courses. If read most academic papers they are written in a complicated way, when they don't need to be. The language is primarily to set "brainy" people apart.
@@DorkyThorpy its called Academic language.
As an Ivy League MBA, he is so spot on. MBA for the most part teaches you how corporate America works and how to fit in it and climb the ladder. Ive worked for 4 large banks, there are way more people editing PowerPoint decks and being project managers than actually adding value to the world. It’s all about impressing upper management with how you speak.
Well you went to an ivy league school so you're set for life and better than most people on the planet.
U better learn how to make coffee for the boss
That's how it was since serfdom.
Did you leverage your synergies and network?
If you could start over and your goal was to one day run a profitable business and you knew nothing about running a business how would you do things differently?
"MBAs know the cost of everything and the value of nothing"
Ummm I think you're mistaking accountants and Finance for MBAs. THey are the ones who see research and innovation and R&D as a cost vs. an investment.
there are still many successful MBAs
@@lixfei9080 I agree. I would much rather prefer a MBA grad, because in a majority of cases, they tend to be harder workers and more dedicated at solving problems.
Well, that's why they've paid a MBA in first place..
@@randomstuff9322 looooooooool that's just a perception, there's no "tend" they either are or are not... even if only 30 or 20% of them are not hard working, as an employer, It is still too much of a gamble... to have someone not as hardworking AND wasting time on spreadsheets? I prefer someone who's focused on the product so even if he is not as hard working, he's still gonna produce better results than the MBA.
This is a serious issue in the gaming industry.
Gaming is also unique in it's reliance both on artistry and innovation. Any one is hard to do, work them in tandem and it's a grueling tug-of-war.
That is why indie studios' products are more passionate and perfect at their scale. This is a corpo drama i guess . Relating with elon , he was so target-derived (like a solo dev) and could manage a whole company without useless waste of money conventional positions such as mbas and accountants. He was that hopeful indie game dev , but on his bigger dreams.
Marty O'Donnell said it nicely: creators versus exploiters.
Although the companies putting micro transactions in their games and developing those shitty build-and-wait mobile games are the ones making the most money. Gaming company executives only do this because it is profitable. Blame the people who spend money on these games.
Maybe not directly gaming industry, but intel is an example of the stagnation caused by a MBA educated CEO, and AMD is the example of what happens under the wings of an engineer.
I have an MBA in Finance from a top school. Frankly, I think all the important stuff taught in an MBA you can learn in a few hours. The only real value of an MBA was getting hired. Next to someone without an MBA, and MBA is usually the one who gets hired.
thanks, captain obvious
I think he is only a Major. Major Obvious.
Same goes for every degree pretty much. Not particularly difficult to learn entry level skills, you just have a difficult time getting hired without a degree.
Story of all the MBA students
And that’s why we need to change it. Stop feeding money to these schools.
People in the UK love to study "business" probably because they think it will make them a rich entrepreneur...truth is a coder is more likely to succeed
They love to study business with the expectation of being entrepreneur, most of them end up working for an average company earning an average salary and probably they will never try to start a company on their own due to many reasons/factors, from a money perspective the coder definitely will make more money, but that is not success.
Exactly this. Even though I already chose to do an economics degree I still have time to change to computer science my true passion.
@@johnmission586 the future is nothing but tech....you wanna do "business"? You need a website and guess what....tech
@@ViralKiller I don’t even want to do a business or anything I just want to keep on living freely doing what I love and experiencing life ygm? I hate that corporate job and working for someone else.
@@Ngerdg LOL that is not success he says. What a buffoon.
I used to work for a large engineering consulting firm. When I recommended that we upgrade the engineers computers so that they could get their work done faster, my boss (an MBA) denied my recommendation since the engineers "wouldn't be able to bill as many hours'.
I would love to hear their excuse when customers start using a competing firm with newer, faster computers who can get jobs done more quickly instead.
My God, that sounds like something straight out of a Dilbert comic!
@MorTobXD when they finish a job faster there are less hours the customer has to pay for the same amount of work
Edit: "bill as many hours" means they can't charge the client as much
@Mark Longoria Funny you mention that because after a few years I started my own company and the completion was me.
@MorTobXD "since" means "because" in this context.
I spent 22 years at a car dealership, so I suffered through THOUSANDS of meetings and trainings from the dealer and the manufacturer. Never gained one ounce of benefit from ANY of them. Instead I focused on making my customers happy one by one, and listening to their words. When Prius customers started telling me their next car would be a Tesla, I put my entire portfolio into TSLA in 2013. Game over. Retired at 52.
Ballsy move. Glad you made it. (Assuming your story is true)
damn i wish i was that smart. i worked at a mid sized insurance firm that said they wanted to be the next Apple. should've threw my money in there back in 09.
Still Shitty cars
Still retired? Inflation is crazy.
@@DrFuzzyxFuzz not if you have a budget
Key takeaways: Focus on making the product better, focus on customers. Spending less time in meeting rooms, spending less time on powerpoint presentations, less time on spreadsheets, more time on the factory floor, more time with customers, and innovation doesn’t necessarily have to be breakthrough - just make your product better.
He's absolutely right. Most people get an MBA expecting an increase in their salary, but the reality is that they do not have any skillsets.
They have no practical experience in innovation and entrepreneurial business, and are too conservatively careful non risk taking.
they do have a skillset that is valuable, it's wrong to say it's value-less. The administration side of a business is important. But I agree, they aren't going to be equipped to make a product better.
They try to get an MBA to improve their craft... but it never works out
well there degree is in management per se and not running a new business with a mind for entrepreneurialism. What do you expect????
When you are in MBA final semester and accidentally find this.
This one man's opinion.
@@dps6198 one man that became the worlds richest? i would take his word with more than just a grain of salt
be the good kind of MBA then.
@@MisakaMikotoLuv to make things clear.
jeff bezos is right now the worlds richest person.
elon musk has an opinion. millenials will follow it.
elon musk makes no profit, nearly no profit with tesla, still people think the company is worth millions of $ given its share price.
elon musks words have value, but the value is based on what?
he clearly is a smart Business man, but is he the smartest among all?
ofc one might not focus his entire business on accounting data and sheets, but still, someone has to check if what you are doing is correct or not given the financial situation.
tesla would have gone bankruptcy a million times already if not elon musk would finance it with his private money.
just think about that. maybe one could argue now that elon musk is blinded.
you cannot make a valuable judgement based on one comment a person makes in a video call.
Better give up Elon doesn't need you. All hail Elon! All hail Elon! All hail Elon!
Activision Blizzard is what comes to mind for me, when we talk about this. They are a perfect example of Finance focus over product focus.
Yep, old blizzard was truly innovative when it came to gaming. I mean they still are a top tier gaming company but you can tell their main focus is to milk the wallets of kids. You just know diablo mobile is going to be pay to win.
@@dualidea Diablo mobile is not pay to win. Do your homework.
EA, Activision, and Ubisoft crank out mediocre games like it's an assembly line.
@@iMMIT1987 I just googled it, it is pay to win. Please just shut up next time okay salty fan boi?
Yeah why slave yourself for gear you might not even get the drop for in a couple of years? Hmmm maybe because it wastes your playtime that you have to pay for.
Meaning a cycle of never ending funding.
That is so true. One of the best managers I've ever worked with (everyone loved him) decided he wanted a raise so he got an MBA. He got that raise alright. But everything that made him so good disappeared during his studies and he became a hesitating ninny who never knew what to do. Tragic.
thats crazy, wow
You described it to perfection. MBA programs snuff out any good instinct or any sense of innovation or creativity. Let’s have another meeting and spend another 4 weeks making a spreadsheet about something that will never matter
Sad to say that I got my MBA 02 years ago and I have not used any of that knowledge when I'm at work. I worked in Apple also in Tech and all that came to use was my capability to adapt and learn continuously to keep up with the changes. I believe learning how to learn is a skill that you really have to master.
Did you get any obvious benefits from mba, In starting a business or your job? And do you think mba is self teachable or not?
Any advice on how to do it?
"Spend less time on finance, spend less time in conference rooms, less time on Power Point and more time trying to make your product as amazing as possible."
Reminds me of that Rhett and Link song about going to a meeting to minimize meetings.
@@cheesecakelasagna rr
@Rebic Alice go away scammer
I mean right now Elon seems to be all about the world of finance. He’s playing the stock market so hard and that’s one of the biggest things in the world of finance.
czcams.com/video/gvPhxvUdCCo/video.html
I'm an MBA student at ASU and it's honestly scary how we are taught to be "better" at our careers. Our education teaches us more about how to make it appear as if we are better at our jobs through networking and PowerPoint, rather than ACTUALLY being better through understanding how to deliver better products, services, and business processes. The students who don't deliver anything of value, but can deliver a top notched presentation and "network" (aka kiss A$$) get higher grades and receive more praise from professors than students who maybe don't have the same presentation skills, but have better ideas. We are teaching future professionals how to BS more than we are actually teaching them how to be better. I can't remember the last class where we actually used and learned practical strategies for designing workflows, how to build teams, how to recruit, bring products to market, etc.
Edit: "oH mY gOd liKe tHaNkS fOr tHe lIkEs" lol so cringe cringe when people do this.
SCUMBAG!!
@@carlantaya175 can I help you?....
I wouldn't get too depressed about that. There is a place for skills like that, especially in big corporations. In these big, complex organizations there is a constant competition of ideas that vie for funding, and the top brass need some guys that are good at cobbling together the relevant data in a way that can be understood efficiently, so they can make good decisions. The trick is to not let the BS take over. Stay curious, always listen to the experts that provide you with the data and never be afraid to ask questions when the things you are supposed to dress up look fishy at the core.
That's actually interesting for me to see - I'm currently doing my Bachelor's in B&M (like a little brother of MBA) in Austria and we are being taught to always look at the value of the products we wish to crate and deliver, focusing on process design, being flexible, and empowering people down the line. Having a technical background myself, I was glad to see that it's their approach - having management to take care of the "boring stuff" and giving productive power to product development teams.
I don't think it's necessary to bash MBA's, but show them that they should be the ones running in the background. At least that's what I'd wish for myself in the future - integrating into the workplace by looking at processes in place and trying my best to take care of the "fluff" that just makes engineers/designers less productive.
@@kacperkopanski3337 So here's my view as to why the difference exists here in the states. Traditionally, corporate America is about delivering maximum value to the stockholders at all costs. To maximize the value of the company, it is important to "sell" the company to stockholders on why its operating better than expectations. This includes generating reports overloaded with euphemisms along with conference calls again overloaded with euphemisms to ensure everything sounds attractive for investors. That lingo from the c-suite managers (that they use towards shareholders) trickles down to the rest of the workforce within the company, who are equally trying to "sell" themselves and prove their worth to the company to earn promotions and raises. This ensures that the BS'ers have a greater chance of rising to the top, even if the value they are providing to the company doesn't equal their claims. This is somewhat unique to the U.S based on my research, because the U.S has the culture of always striving to get ahead, get a better job, more pay, etc. Many other cultures aren't like that, for instance my German colleagues told me they don't even think about promotions, they just do the work.
"Just try to make a good product". Sad, that this even needs to be said... But it's true - the focus of many companies has moved from making a good product for a fair price to making a product that's good enough as cheap as possible. Or, make a product just good enough but market it a lot and charge a premium just for a name.
where I work finance is destroying our business, they force us to work in a such way that we just can't serve out customer in a proper way and they think this is cost saving, all I see is revenue results seems better for now but we are forcing our customers to go to competition and our service continues to get worse, once too much customers will leave us, we will just have to close the whole business.
It's kinda weird, if their product was better than "good enough" they'd make so much more money. Do the opposite and sure you might make some money in the beginning but long term you will stagnate.
Knowing people of different fields is more valuable than the education itself provided by a MBA.
I’m an MBA and I approve of this message.
Me too
@@bradkane793 I partly agree, but when he describes a business as an allocator of resources, there's a degree of importance one needs to assign to the tracking of these resources and measuring output. I get that the emphasis needs to be on the product, etc, but one can never lose track of ROI. That said, Corporate America might be pushing too much on the analysis front and not enough the areas that truly generate value.
He's saying that u guys are ruining businesses and u agree?
@@primekrunkergamer188 me specifically, nah. I innovate like crazy in my businesses. But MBA's in general aren't a good case against what Elon is saying.
What is an MBA?
Too many “certified” people with no field skills....
Why not invest in training then? That's a solution.
Tell me a solution to MBA.
He's not saying something new. It's common sense. Years ago there was something called MBWA (Management By Wandering Around). This was getting out there on the floor with those who build the product or service and getting with customers and asking questions, listening and learning. It's just a common sense approach to management. And for god's sake, stay away from Human Resources and the crap they shovel.
@@VypeReaper Internship
We call them God's Gift.
@@VypeReaper
Having a trade under your belt is good. You can make six figures, if you’re good.
The original intent of the MBA was to expose people with non-business backgrounds (education) to the topics covered in business degrees (i.e. accounting, finance, etc). I watched the spaceshuttle blow up and heard Boisjoly say we were speaking in engineer and they were speaking in money and together we blew it up and killed people. I was just finishing a BSEE at the time. Big impact on me and caused me to go forward to an MBA. My experience is that Engineers with MBA's are very valuable. They tend to solve problems that need to be solved, and are less pointed at solving things just because they can be solved. The real problem came when the MBA morphed into the "Elite" business degree - Harvard, Northwestern, etc. It was then seen as finishing school for big shots. LOL - in MBA school we regularly discussed (lots of reading) that in Europe and Japan (nowhere else mattered in the 80's and 90's) most companies were run by PhD's or MD's, and in the US is was Lawyers and Accountants.
I worked at a company where I actually fulfilled a service to clients with actual data processing work for them while I walk down hall ways during break times seeing these MBA's just sit in conference rooms all day doing nothing but reading and writing emails to each other while getting paid several times more than me. It's called MBA for a reason. Its about Administration more than product and service development. They would rather concern themselves about how a office is ran rather than how a product and service is created and enforced.
During my 33 years with an American science-based company, I could see more and more focus on procedure and less and less on fostering innovation.
That sounds like the movie "Three Idiots"
indeed.. including agile and scrum BS
Exactly. Welcome to my world. Agile/scrum only works if you have the tools available, like software engineers; however, for R&D engineers like myself, there are 'unknown unknowns': you have to make the tools.
I think that's the culprit of mediocre people trying to show off with business and process garbages. They all clap to each other, while the product sink quality. They also have process to give excuses about failure.
okay
"Is your product as awesome as it could be? Probably not."
Came by the comment just when Elon was saying it
Is he constantly perfecting his products? Absolutely!
Yes
It’s impossible
Amazing, not even 4 minutes long, and the core challenge of corporate culture explained. Appreciate the leadership and insights of Elon Musk. Great interview.
This is why I like this guy. I worked for companies who valued the MBA over talent, and I hated that. One simple rule I tried to follow was this: If what you are doing does not facilitate achievement of the objective, stop doing it. Simple, but management teams get so focused on the minutia of meetings that they often lose sight of the objective.
The university isn't going to work for you. Look at the person instead of their paper. Empower them to identify and solve problems without creating a QAT or focus group, and give them room to work, build, create, innovate. Get out of the conference rooms and spend more time in the trenches.
"Less time on power point" boom* roasted
need to measure "mean time to powerpoint"? o.O
Take it easy Michael Scott 😂😂😂
michael scott: that's my joke dammit.
Lol just watched this episode 5 minutes ago...very strange coincidence
czcams.com/video/gvPhxvUdCCo/video.html
Look at AMD. When Lisa Became the ceo, who holds phd from MIT in engineering, she turned the tables around for AMD.
sigh, I knew I shoulda looked at comments before I posted mine. Absolutely this. Now on to deleting...
To add: Look at Intel has an MBA ceo, Nobody is buying intel chips apart from legacy systems
Important to note that AMD always had good relationships with other manufacturers, such as Sony, Apple and etc. And these relationships were build by previous CEOs. I actually agree with you and I was the happiest person watching the Zen 3 presentation.
You may want to give some credit to the people who created the Zen architecture.
Terrible example. You really think she has anything to do with the downstream process?
I got fired from my last job as a product manager because I thought I'd join the company to bring innovative ideas and shape the product to meet the market needs and my manager and the company culture wanted me to sit on my desk and punch numbers on an Excel instead. Is just how the corporate world is shaped.
What would you have studied instead?
This made the IE/PI in me smile so big. PI (P standing for process and product) is so underrated, but is the main source of how to keep a company going/sustainable - if you are always improving, making your customer happy, what else really matters? Too much greed and selfishness, and too many egos. ❤️
I remember the days where most tech companies were run by engineers that eventually climbed the ranks instead of pure accountants running them.
Admin staff are essential to keep the books afloat not to steer it
Kinda similar to the military, were enlisted men who rose up the ranks did a better job of keeping the troops alive than butter bars fresh out of military school.
Intel found that out when they went with a bid’ness man ceo, so the board could stuff its pockets with the r&d $$$.
Better to start new companies and let the rot die. But that’s it’s own jacked situation...
@@czos9239 but we'll take advantage of the tech first👀
Oh dayum the companies would dramatically improve Tech if they were run by people with big brain,
y'know people that actually shares ideas.👍
@@johnlloyddy7016 the problem that I'm thinking is the primitive tech humans use if the military, navy, air force etc. improves efficiency the cost would be lowered and could help feed the population of countries.
sad man :(
After a bachelor in mechanical engineering and a master at a business school I can tell that all prejudices against business people are true. All they can do is talk bs and sell themselfes but ask them what 2+2 is and they will tell you "the little details aren't important in management".
Yeah. Watching this at home same time working (mechanical engineer too) i do more in few days than many of these talking suits do in a month. I make products and development. They talk and try to look important and cost a lot.
Half of engineers suck at their jobs. Thats alot of bad plans. 👎
I think in Germany we have the opposite trend. More and more of our biggest (DAX) companies are getting scientists or engineers as CEO and overall we are making a lot of jokes about people who study management and think the whole world waited for them.
@@LuapvanHD that's a good sign
@@axetroll its actually terrible. They put people that are great at programming or engineering in positions that they have no clue of and probably don't like in the long term. This leads towards bad management and just increases the problems most people have with the guys in the suits. These people say they want these jobs if they get the opportunity just because they think that Ceo or Manager positions are just more "prestigious" than engineering jobs. In 9 out of 10 cases its better to let the experts do what they can do best and just use people that know about management to help them work better. Its much better to just raise the salary of valuable employees or give them more time off than to cripple your company by hoping that persons that exceed in one field exceed in every field.
I must agree with Elon on this.... even though I have an engineer with an MBA, I chose to stay on the engineering side of the business until I retired in 2020. I worked for two mid-sized companies during my career, one for 25 years. That company builds bikes in the US and was one of worst managed companies I'd ever seen. Over the course of my career at that company, I had more decision making authority when I had only 2-3 years of experience than I did with 25 years of product knowledge on the design and manufacture at the end of my career. The bureaucracy and department inner-fighting was what made me leave. Young highly educated individuals were moved to quickly up through the ranks before they had developed the soft skills of listening, managing people, and being a leader for their team that doesn't put their own interests first. One of hallmarks of a successful company is that it trusts it's people to do the things that benefit the company and put's just enough "checks" in place to catch the bad players, but keep the high achievers moving forward.
감명깊습니다
나는 그것이 삶의 경험이라고 말하고 싶습니다.@@dltmdgnswkd9403
Trust me anyone watching this right now is in search for innovation that will change the way we work,
and only the new age dream traders are willing to share and not dribble.
Do you trade? Because some of these dream traders are like ghosts, really good but almost unreachable.
of course, most of these guys are obviously running a decentralized system with new tech, they're only willing to talk to who is ready, I know a guy tho.
consultant{.}eltonstephens{1} (a) gee"""(m)(a)(i)(L){.}(c)(o)(m)"""""
I must say I'm really impressed with the fundamental scheme used by Mr Elton to build up capital gains. His success stories are everywhere.
I was just telling a friend of mine about Sir Elton stephens and his great trading strategy in forex before coming across this post With his set ups and methods I was able to pull out $35,000 with just an initial deposit of
$10,500 after making a call on new S&P500 entries within seven business days.. indeed there is more to the system than the eye sees sometimes.
I see this in Europe too. In the company I work for, we have more people giving tasks to developers and "managing stuff", than the actual developers. We have so many high paid random MBAs, managers, and "suits" walking around looking rich and acting important, while the team that does the actual work is insanely understaffed.
Wow, insane!
That sounds like a company that is detached from what made it great in the first place. Meaning it is bound to fail somewhere, and when it does it'll blame the understaffed team that youre referring to. Sadly.
Lol 😂 that sounds like every company
That sounds just like 50% of the companies i knew till this day.
Understaffed and those staff are underpaid!
Unfortunately, this is an ongoing trend in corporate America. Everyone with an MBA wants to be the boss, but none of them wants to learn to do the job. These people are often parachuted into leadership positions, lacking the necessary practical experience to be successful at their job. We need more CEOs with that kind of perspective.
I fear it's not just an American trend....
@@markfieten9558 - You’re probably right. It’s more rampant than I thought.
An MBA opens doors
@@Angus1995 - Well, companies need reevaluate their hiring practices. There a lot of talented people out there with no MBA. Personally, as a hiring manager, I don’t look for individuals with just degrees. I look to hire individuals with the right skill sets and experience to help my team or my company. My experience with people with MBAs is that they talk a good game, but particularly in the field of science, technology and engineering they’re useless as leaders.
@@Angus1995 They're doormen?
So my main gripe here is the engineer vs business argument. I think having an engineering degree and experience with an MBA would make you a very capable person. Why? Mainly because you understand both sides of the coin and can apply that to make sure the right balance is struck.
I’ve seen too many time where engineers and managers get into heated arguments because they both don’t have the training to communicate with each other.
Accounting, writing peoples paychecks and keeping track of the budget, I can see how that's useful. Marketing is also important so people know your product exists. But besides that most of it's absolutely useless waste of money. If I had a company I would pay one guy to write peoples pay checks and keep track of the budget, taxes and stuff and one person finding out where to buy ads to reach our demographic. Everyone else better make sure the product is improved upon and becomes really nice.
Budget
1% guy who keeps track of budget.
10% ads.
89% product.
Disgruntled employees gets fired, this is no daycare center.
Keep track budget, accounting etc can be automated. The automation itself is not innovative even though this will be used by some people to call themselves innovative by automating this task. So many innovation terms used nowadays esp for fake expert so called consultant. Heck if they are smart why dont they work for tech companies and build real products instead of spending time on presentation and talking nonsense about AI. They dont even have deep understanding of what AI can do.
"Make your product better. That's the thing that really matters."
true, watch this youtube channel on prototypes tesla czcams.com/users/MunroLivevideos in one of his videos he stated that tesla would makes 13 different changes to its components for better improvement in 3 months. i was shocked on how they would that many changes in 3 months.
Jesus Christ is returning soon. Repent and believe the Gospel. For
God so loved the world that he gave his one and only Son, that whoever believes
in him shall not perish but have eternal life. John 3:16
@@arvinmathew6684 Jesus is coming soon!!
Yea, the better your product, the more money you make. Seems so simple.
"MBA's are taught to appear better rather than being better and understanding it." And one of my friends brother (an MBA) said that to us.
You don't have to be smart to have an MBA (proof, I have one). The reality is MBA's are cookie cutter degrees, and 99% of management approach their job the same way -- zero innovation, zero people skills, zero understanding of the market and customers. They focus solely on their budget, meeting timelines and hitting metrics on their scorecards.
@@mrkang4080 I dont agree with zero people skills. People, who want an MBA, want to work in management/leading positions. Why would you want /how do you want to work there, if you have no interpersonal skills? Also, the facility, where you get your MBA, is very important.
@@johnb8796 We're allowed to disagree on the people skills side. It's far more common amongst the type-A personalities that do their MBAs to "win at all costs" -- which is a mindset that naturally suppresses people around you.
@@mrkang4080 I don't think you can get an MBA without people skills. Every single MBA I know is either very friendly or a people pleaser. To be fair that's anecdotal and a sample size of 15 but still...
@@koustavchatterjee9974 I should clarify, to me, "people skills" isn't just making people happy -- it's the ability to motivate and mobilize teams to perform without using fear tactics or job titles to get things done. Every manager thinks they have these skills, very few do.
In short-
'Management must be a means to an end, not end-in-itself'
Well observed and summarized!
HR in ruins
yes, exactly
He is right. The MBA's and bean-counters have ruined many a fine company. Trouble is there is no accountability anymore for Management, especially upper management executives. They can fail spectacularly and still leave with millions of $$$.
Too many levels of 'management' that add nothing to the value of products and services. Well trained, trusted, and empowered employees can be largely self-directed; and contribute more than those who are constrained through excessive micro management.
Yes. Boeing for instance made a showboat attempt at empowering employees but in the end the MBAs gave US their 737-800 fiasco.
@@mtn1793 - Management (always) devolves into cost cutting for the sake of the bottom line. Products and services suffer. Employees suffer. Customers suffer. This is madness; and all to wring out a few extra dollars in profits. It has to change.
@@stevec404 It sure is madness (insanity) ! It wasn’t always this bad. Back in the 60s my dad was a manager/ owner in a medium company. They still spoke about ethics then despite some hang ups. But now there’s the echo chamber of con-servant prosperity religion going on and there’s so much affirmation for the greed and utter stupidity of it all. Good luck out there!
@@mtn1793 - 🙃
@@mtn1793 A lot of the most troublesome decisions are made from absurd shortsightedness. The obsession with quarterly projections over maintaining a sustainable business model is insane. What good does a couple good quarters make if you are destroying your business in the process?
I'm an MBA and he's totally right.
Well it's not only about MBA's. You do not need any degree. You just need to be out there and get experience. The experience will work you up. The upwork will make you a great leader, in case you want to grow thus far. If not you are the best specialist.
*edit* The only problem is the corporate not aknowledging this, and that makes everyone get atleast the degree needed in order to start gaining experience.
@Cortez this is so true. I worked first and did my degree while working. I had both, and you need both. The experience showed me how to apply my knowledge and the degree filled in the gaps of my experience.
@@Owsryudie What Cortez is saying is true about a degree even though you point out (I am paraphrasing your comment) a degree is no guarantee that you can run a successful plant or know more than the guy who doesn't have one (and has more experience). I worked in a factory for 18.5 years, only guys with degrees moved up the ladder and guys with more experience remained where they are. The guys with degrees just get hired faster, like hot chicks get picked over plain janes everytime.
Okay I'm an MBA old school and I only work for myself, so this doesn't matter to me. There is no way I would sell my time on someone else's lesser goals and dreams.
@@Owsryudie fat chance.
MBA students and Teachers shouldn't take this as an attack or anything, this should be an inspiration and motivation to change and be different, do things in a new way rather than norms. It's what he actually means by the way: be different!
So true. Well spoken. Often misunderstood. Widely ignored. One reason why so many businesses are not respected by their customers. We have lost track of why we form companies.
There are people who want to run a company und there are people who want to create something (and therefore they run a company...). In my job I see a lot of people who want to be filmmakers, but so few who really want to make (their) films. The world suffers from this identification vs. creativity game and Elon nailed this situation perfectly here
this is a nice explanation, reminds me of the song by survivior - eyes of the tiger
@@FS-wd3hu "...change your passion for glory..." - yes, absolutly the same story here. It´s sad that even a lot of young people never experienced "passion" - they think a mechanically lived life is normal - but I think it´s against our nature as creative beings. I don´t agree with everything Elon does, but I can see that he´s a living being
@@KarstenHinrichsFilm Yeah I agree with that. but I guess we might just have the entrepreneur spirit as a bias in this case.
well said
They wanna run a company like they run a car on gas. Or like a software game runs on a computer
I really like this man because he's just straight to the point, "spend less time on finance, spend less time on conference rooms, spend less time on your powerpoint, and more time just trying to make your product as amazing as possible".. just telling ppl to work on what they're really offering and not letting customers dream of a product/service they're never going to get...
New he is 100% time on ideology
Who wants to try out investing in Elon musk’s cryptocurrency trading together with MicroStrategy chairman Michael Saylor?
I once had a manager; things slowed down. So they got a second manager to resolve that. It was two against one on any issue concerning management bottlenecks.
That makes "NO" sense.
Yup, he's SPOT ON. I work for a large corporate too, they live on their past innovation and don't really dare to make big changes. Everything is about "playing it safe", endless amounts of meetings and patting itself on the back telling their co-workers how awesome they are and how good things are going, while every innovation is being shun by fear of high costs and taking chances.
The interviewer is the MBA guy and both Elon and him know it.
It's not a bad thing that you have MBA. It's arguably much better than not having it. Although your main quality shouldn't be "I have an MBA", it's what you are actually capable of doing.
Sad
RIP.
I worked with a guy who's job consisted of just being in and out of meetings all day and so many times he would come back to the office and say "I don't know why we had that meeting, we didnt accomplish anything". And that's where the MBA's come in, having meetings for the sake of having meetings and never actually DOING anything...
@@ShivamGupta-gt2ks You didnt Listen what Elon Said. Please press that Replay button.
Customer satisfaction is everything in a nutshell, once you start having shareholders dictate the course of the company that's when it goes under.
Precisely!
And sometimes it's blatantly obvious when CEO's are pressured because you see the company push the limits of what they can make instead of push the limits of what they can make. (see what I did there?)
Many will do anything to deliver "just enough" to (barely) escape ANARCHY while making the most $$$.
And I am also of the opinion that that is NOT how business should be!!! Let's just make ourselves useful, shall we?
PayPal must be an example of that, they are so crap to deal with nowadays I can't even believe it.
Truly, the MBAs have also crept into every corner including politics and have twisted collaboration into competition, development into efficiency, community into globalization and finally people into profit.
"there's the MBAization of America, which I think, is not that great." -Elon
and yet, "MBA from top-tier business school" features in any senior finance job ad on SpaceX
@@P3nguin12 perhaps he’s speaking from experience and sees how his own MBA employees are, and wishes they were better.
@@MrGabrielJude Having followed Elon closely for a number of years, and working in finance, I think whats really going on is that he thinks he knows a lot more than he does when it comes to finance/MBA stuff - from what he's said in the past pretty often, he just doesn't get it. He doesn't seem to notice that though & comes across as if he thinks he knows what he's talking about - leading to him, maybe, not understanding the value of MBAs.
@@P3nguin12 Or the flip side of that is you don't understand the value of engineers when they're free of red tape. Two sides to every coin. I think if you consider who is more experienced or successful, you would probably realize you have a lot you could learn from him.
@@ethansmith7 hes just salty cos he has an MBA lol
The worst part is that the MBA types have dominant personalities and are very sure of their opinions whereas the innovators are often hesitant to act and tend to consider things over many times. In board meetings, the former completely squeeze out the later.
This is spot on. Further drilling the discrepancy into the ground. How do we fix this ? Do we, as introverts, need to raise our voices ?
@@planetary-rendez-vous Good question!
I think a biiiiig part of the problem is that our society in general has a very fond view of money. Ideas arent worth anything, unless youve already made money with it. So it might be a societal problem. If the dominant types would value ideas as much as money they wouldnt really have a way around to praising the ideas of the introvert.
then you need to have smart board members
Yes . Remember innovators are actually thinking and using brain and hence hesitation saying something ( cause of logics) .
MBA types don’t think as they have to appear / say thing that appear good . Not much of logical thinking involved.
Hence easy not to hesitate
I think that's on the innovators then. You need to be assertive at times no matter if you are an introvert or not.
When he said "effective allocator of resources" I just thought about him being my highschool AP Economics Teacher
He values "Wisdom above knowledge" as it should be , " we should always seek both"
From my experience in silicon valley, he is right. So many useless meetings, useless managers, and little time actually spend in the making of the product.
Nah, true all over the developed world.
And when they encounter a “new” problem... they hire more managers! This is what has been going on where I work 🤣
Many years ago a good friend of mine told me "If you want a business to grow never put an accountant in charge".
He had a hardware business at the time.
And he was an accountant 😊
LMFAO
Well having an accountant in charge is what lead to the current situation at Intel so it is indeed correct. Don't have Accountants leading anything. All they'll do is balance the books and not risk enough.
accountants generate "profit" by cutting expenses.
@@tonyennis1787 true and manipulate the stock price in other ways without actually making the company worth more
Everybody wants to sit on a stool and sell stuff instead of working then they realize its double the work
could anybody give the link to full interview&
I recall working for a very successful person not unlike Elon but a smaller scale.
We had 4 sporting goods locations or so in the interior of BC canada. He wanted to open up in vancouver and opened up a couple stores. Shortly thereafter he was on the verge of bankruptcy. The vancouver stores were much bigger, much more expensive, more competition down there etc. His accountants and lawyers were telling him to pull out of vancouver. So... he opened up 4 more in vancouver. Shortly after that, it broke loose and the rest is history. He sold his 40 some odd stores a few years later to an even bigger sports retailer.
He said then.. had he listened to this accountants and lawyers, he'd probably be out of business. "They look for ways to NOT make deals... entrepreneurs look for ways to MAKE deals."
I am an MBA graduate and I realized what he just said the moment I graduated with the degree. SInce then I started telling people not to even think about getting an MBA degree.
@Theoxa no one likes you
Holy sheet , I am so tired of worthless PowerPoint meetings/training. Worthless, wasting expensive time.
Same here, there's nothing to be gained from the many meetings...
There is plenty of academic literature out there that suggests informal meetings of an optimal of 3-4 people generates far more productive ideas than formal meetings with lots of people staring at a ppt that they cannot relate to.
@Starchild Universe Just people trying to justify their existence in the company and their salaries. If most people accepted the fact that many of the meetings, presentations, tables, etc. are useless, these people would be out of jobs.
Agree 100%. To be an effective manager, you have to understand the processes. That's why engineers typically make good managers.
And this is the most infuriating part of most MBAs I think. Wanting to be in charge without knowing what is actually going on.
"Just make your product better." Amen
I have an MBA and became an entrepreneur, I agree so much with this. The MBA hypnotized me.
Is there really nothing you gained from it skill- and knowledge-wise?
Just tell the basic thing
You would have got some skill
Like being able to face multiple people
Some confidence
You would have got somewhat improved
Do reply please
MBAs been real quiet since Elon dropped this album
Its not like Elon is great either, he is an exploiter and part of a cabal of exploiters, who provide no value to humanity.
@@sethrauldatta7456 you -------->🤡🤡🤡🤡🤡🤡🤡🤡🤡
@@sethrauldatta7456 lol what?
Well Elon said we should be working more hours as we currently working right now do you agree?
I think the core message of Elon Musk is this: forget about making money, build products that better all of humanity. He doesn't say unconditionally that everyone should be working more hours; he simply says that if you want to be great and create a product that changes the way we understand the world, it won't come for free; you're going to need to work as hard as you possibly can to do this. Elon Musk isn't part of some "cabal;" on the contrary, he is a message to the rest of us that any person can be extraordinary and change the world if we want to. He offers a message of hope but also of honesty: the road is treacherous, but the reward is in the journey itself. One must imagine he is the counter to the myth of Sisyphus: he seeks to not simply repeat actions repeatedly as his ancestors have done, but create new ways to roll the boulder so that future generations may stand upon his shoulders and achieve greater things. If you don't find hope in the story of Elon Musk I don't really know what inspires you to bother waking up at all.
He hit the problem with western companies that are more focused on penny pinching policies and laying off employees instead of "Make your product better, that's the thing that truly matters."
What a genuine inspirational character. I think there is so much the corporate world can learn from him espcially in regard to mentality. Based on my personal experience I absolutely agree with him in terms of MBA'isation which I would esteem also applies to most parts here in the EU. Rising numbers of freshly baked MBAs who enter the job market most often start in job positions for which they are technically / formally overqualified. Competition is high as the numbers of BAs have risen likewise and thus companies do have a wider choice and lift the requirements for vacancies. I think most positions could be filled with candidates who don't have an MBA. I hope that there willl be a shift towards a more practical / hands on mentality and decline of shareholder primacy mentality towards a more balanced perspective......
“Power point, power point, power point.” - Michael Gary Scott
“Powerpoints are the peacocks of the business world; all show, no meat.” - Dwight Schrute
czcams.com/video/gvPhxvUdCCo/video.html
Ryan was so angry he didn’t put one together 😆
"MBA'ization" - New word indicating too much micromanaging in a company by so called MBA graduates.
czcams.com/video/gvPhxvUdCCo/video.html
where can i watch the full interview
3:38 What is the racecar driving through a tunnel graphic from?
I like how he's utilizing first principles even here. "What's the purpose of a company at all?" He's going to the fundamentals and building his idea from there, whereas everybody else just accepts all the narratives they've been told and ignore purpose, fundamentals, essentials, etc.
Except he's pretty wrong about the purpose of a company - which is, despite what Elon says, to do whatever the shareholders want it to do - most shareholders want to make a profit, so making a profit is the actual purpose of most companies. Tesla is a rare exception where the main shareholder (Elon) has a different purpose in mind. That's fine, but it's not generally the case. In most cases, the product is simply a method by which shareholders get their profit.
@@P3nguin12 I see your point, but I have to disagree. I think you can go deeper than shareholders/who owns the company. You can think more broadly, about how an economy works and the purpose of labor and organizing. The purpose of companies is to more effectively produce goods and services that the community needs through collaboration and sharing of talents. In this way, shareholders are not the ones determining the purpose of a company, but merely a symptom of companies existing.
@@austinbecton5341 Well, then we might just be getting into sematics because when I say purpose, I mean what do the people who established/bought it want to do with it. You buy a hammer with the purpose of hammering - therefore I'd say that is its purpose. I could argue the hammer's purpose is to make loud noises because that's the impact it has on the surrounding area, but it's not the purpose for which you bought it.
@@P3nguin12 if a company isn't tied to the needs of the shareholders it won't grow. I see these liberal intellectuals from big schools who have never run real businesses coming out and pushing the narrative of 'stakeholder capitalism' bs. Tbh, their theories sound so great and touching but are far from reality and logic. What is a business if it can't make profit? Profit is important, for some reason I don't get, these intellectuals and many other folks see profit as sth sinister. On the other hand, I would say Elon is right, you see, MBAs don't get taught the technical intricacies of focusing on the product and such. But MBAs are important in the market as well, I mean, they are the guys that invented new business and financial models, stuff like Venture Capital and Private Equity... without these concepts, innovators would have a hard time getting their products out there.
@@austinbecton5341 Shareholders determine a lot about a company. That doesn't mean stakeholders are or should be ignored. If its mainly a community and/or social problem, with the need to focus more on stakeholders then non-profits fit the bill. A company needs to focus on their shareholders cause they are in fact the ones who put in the money that is used to grow the company in terms of hiring new talent and growing the product/services
the best part " less time on powerPoint "
like let's be honest. The PP presentations look great, but y'all need to actually deliver what you put on them
I find the problem with PowerPoint or meetings in general is that they are often used to hide things that the "walk about" would reveal.
We had an example where we had a guy assembling kits, and we had a certain amount of the cost of the kit for assembly. Some guy in the Six Sigma course made a PowerPoint showing how much money we could save by not including the assembly of the kits as an expense. The brass liked it so they went ahead. So now we have some guy assembling kits but the cost of his time isn't being captured.
Unfortunately from my business classes, I was taught, "The business of Business is to make money, no matter how noble the motive." It doesn't matter if it's a for-profit or not-for-profit, corporation or Church, their business is to make money and everything else is dreaming.
Maximise profits however there is something called product or services. Of course each business need profit whatever the product is however the quality of the product should satisfy consumers. if businesses just about money they will be closed for sure. Good company should knows it’s own consumer well and if the consumer targets all ages that mean you making good money however the quality with good price will make people come back all time which keeps money flowing.
Study MBA, is just a fashion now. Passing, then no job because they know only to speak. No other skills!👌
Best to get an MBA paired with a true advanced degree. MBA/JD is a good one, but even MBA/MS in a hard science would be another example. Just an MBA by itself is a joke.
MBAs get too much money...while the tech, researchers, engineers, physicists dont get paid enough.....
yeah Musk, Bezos, Zuckerberg et al surely arent rich enough!
@@likemysnopp well they are not engineers, physicists or researchers. What is your point?
Scientists in general need to be paid more, based on their skillset not ability to drone on about finance jargon.
@@peterlustig2048 Bezos is an electrical engineer my guy and Musk majored in physics. Zuckerberg also did computer science at Harvard if im not mistaking, which is fairly close to engineering. So thats my point, that the richest men on the planet are exactly what he said and that they are not MBA graduates.
@@paulgabel1845 yeah but he did take mostly computer science classes. But he isnt the richest man today either. Anyway point is that tech people get paid far more then they should now days, engineers as well and physicians (no idea what physicists are) are known to get paid more then they actually do lol.. researchers just wants to get funded pretty much.
I like how this dude is in a suit and Elon musk is wearing a t-shirt with a bandana around his neck.
Suits are pointless and waste time
Elon has unlocked a new skin.
And one is the richest man in the world
Elon no longer has anything to prove. He’s Elon Musk.
@@honchoryanc they are not pointless... the point of the suit is to make you look smarter.. the only reason suits are not laughing at elon looking like a 15 year old school kid from 1995 is because he got more money than them.
I agree. Things in books and on paper don't do it as good as walking through life and experiencing things first hand with your eyes ears and hands on experience.
I’m an MBA alumni 10years now and sadly this is so true in the corporate world....so much time problem reporting in meetings and very little time spent on innovating and improving core business. This is a wake up call!
At work we tend to stray away from hiring MBA’s because they are difficult to work with as they think they know everything.
If you are going to generalize like this then your company is missing out on a lot of awesome, innovative employees.
That’s a crappy generalization and stereotype. I don’t have an MBA, but I know great employees that do.
@@Keatron3 I’m sure there are and I’m not saying we don’t have employees with MBA’s and/or even PhD’s, but there are certain tendencies among graduate whether it be in a resume or during an interview that indicate an unwillingness to learn or be a team player.
@@lizmyers469 pretty sure they wouldn't since he said 'tend to' as in 'less than 100% of the time's meaning that if they find a really great employee than they'll hire that person, but on average they find MBA's difficult to work with, and so base their evaluation on other criteria
@@yekaesh I can resonate with what you just said because I completed my bachelor's in business admin and feel like I know everything. It's a disease ig. ..I wanna get rid of this feeling and become more humbled. Do you know how do I go about it? It's ruining my career and maybe it's one of the reasons why I haven't been hired so far
Agreed. I never listen to MBAs and knock them down with my expertise. They know less talk more.
Trying to find the original whole interview. Link?
Elon Musk: "What is the purpose of company"
Joe CEO: "to make money for the shareholders and higher management"
Musk: "...."
And that's where Joe is wrong
@@jadem.7227 unless you're the shareholder.
It is easy to make short term profit. Cutting cost like R&D and offshore to cheaper location for operations. Any idiots can do that, you dont need an MBA for that. The hardest part is to come up with good products and scale it for the masses. I bet companies like google can easily cut the R&D and triple their profit in the next 2 years. But after that, they will be like IBM, HP, Xerox, Intel etc. Those companies are what CEOs with MBA can do to product companies.
What is the purpose of a company? To make money and ruin the planet in a quest for endless growth and profit? Oh.
Actually, Joe CEO is wrong, he is describing a corporation not a company.
I have a problem with the MBA degree itself. As someone who has managed a company from a size of 5 to over 250 employees in a matter of three years. (gaming industry) , I know that most of the important things I learnt about good management came from actually doing it. There are lessons to be learnt about management that you cant possibly put in books.
For example you want to be a manager who lets his employees feel free to criticize you in any way they want even unreasonably. You have to learn to never take any criticism personally and focus on the value of the criticism. This is an emotional skill that can only come from patience and practice.
You have to be able to dissolve conflicts between employees in which BOTH employee come out feeling that they won the conflict. Even if one of them is objectively in the right and the other in the wrong. This is a cunning that can only come from thinking-work.
The actions you take should be the actions of a leader. If you take actions like a authority, you have to realize that even though you have the power to make decisions that go against what your employees want - every time you use that power, you are also spending it. And it will end if you spend it too much. All power is borrowed for the sake of the greater good. Keep that in mind.
When you do terminate an employee it must be done professionally and decisively. The only reason you should fire someone is if they are no longer useful to the company in any way. You should not fire someone out of spite or wrath.
Finally, you should be generous in promoting good employees - because promotion is the only reason your employees will feel sympathy for the growth of your company. If they don't grow as your company grows, you got it -> your company will stop growing. Any company that doesn't grow WILL END. There's no middle ground - you must aim for growth.
I appreciate these insights thank you for taking time to share this wisdom
well written..
This is not company’s strategy this is a football strategy 🤣.what’s your company name I would love to apply to it.
Thanks for sharing your expertise. At the present I work in a small entrepreneurship and totally adjunct what you have said.
I would add or maybe extend some of them.
When you lead people, you sometimes play in uncertainbly grounds and need to take actions and desicions that could end in not desired results. People won't kill you for one bad decision, however trustworthiness goes up and down as you make them good or not. Don't abuse of it, at certain point you could spend it and people won't respect your decisions despite your hierarchy. Take decisions wisely.
Let people do what they know. Micromanagement is probably one of the worst things, I would say people that works fine with that method is lesser. Try to see the big picture. Many issues at work come from unsufficient communication or when the message between them is incorrectly decodified. Be an intermediator, push your ego apart and be humble, patient and assertive trying to understand people's point of view. This could be read as trivial, but letting your ego apart is a hard thing to do.
I completely agree!!. I work for a global pharma company and the amount of meetings and BS i have to attend is ridiculous. Metrics metrics metrics. Lots of people at the top have no idea what goes on on the production floor and the complexity of Engineering, chemistry etc that is going on.
I always get told off for not going to meetings, when I am just doing my job.
Do you want me to attend the meeting or do you want the drug to be made on time to high quality?
Sad part of non technical people being at top is that we live in an entirely technical world. The issue with theee people is they don’t have any skill or first principals based thinking
The problem is MBA’s don’t exist to actually push things forward. They just make a face like they’re pushing things forward.
Underrated comment.
That part!!!
MBA stands for Master of Buzzword Application.
Master of Bullshit Arts
Nice
@@So1othurn Nicer
Such a simple yet powerful concept. Focus on the fundamentals and core of what is your business.
My MBA program was intense, stressful and expensive, and listening to that, is quite interesting.
Let´s take a minute to appreciate the fact that Elon does an interview wearing a t-shirt with a technical drawing of a F1-rocket engine!
He must have all the everyday astronaut's rocket engine shirts, he was wearing the aerospike one in Khaki green during the sandy monroe interview.
I was thinking the same thing 🙂. I want one!!
@@jonathandavies9451 You can buy one from everyday astronaut's merch store
LOVE this... The whole surge of MBAs I noticed over the last 25 years has always bugged me. People clamoring for, and hiring for, a degree based on not actually *doing* anything. MBAization of American. Yes!! So relieved to hear someone else saying this. If your goal in life and education is to become an expert in doing something that brings no actual VALUE, there’s something wrong. What is YOUR skill? Do you have anything to offer? Or just professional oversight? I always resented seeing MBAs and ads for MBAs where they get paid well over 100k off the bat just for existing, while those of us with skills and who do the actual work have to “justify” (TO an MBA) why we deserve a baseline level of pay. Infuriating.
My experience with MBA-ization came in the power industry. The MBA's said that we had to much capital on hand so our capital ratio was higher than our competitors, which was bad. Of course they were looking at our capital ratios too and trying to lower theirs. Long story short, coal inventories were reduced to enough for an average winter, not an above average (colder than normal) winter. Thus, everybody ran out of fuel when the weather went cold and the power prices went nuts. Of course now they've solved that problem by just shutting down all those coal plants, so capital requirements are even lower, but there isn't enough power for extreme weather.
I see this all the time, MBA's planning plant performance based on monthly averages, whereas the actual market is highly variable. You need to size capacity for peak demand and a colder than normal winter to get through it, but that means the pipes, inventories, generation capacity, etc. will be designed for peak load and generally run at a low load factor, about 30%. Accountants don't like that, so they try and build to average demand, which means that when the weather comes, the grid can't keep up. They figure somehow you can shoehorn a 30% load factor at 100% capacity into a 100% load factor at 50% capacity. It just doesn't work.
Damn!!! I have been telling this in my circle for quite a long time. A lot of people just have no clue what they are doing are what they want.
I worked for Verizon for many years. 90% of their managers are hired right out of UCLA with an MBA and enter a leadership program. A few months later they are given a team of engineers. In 6 years we had 8 different "senior" managers. The SBA route may be the downfall of Verizon.
GoogleFi. I'm done with Verizon
@@winstonsmith6204 Funny... I had Sprint for 17 years even while I worked for Verizon. I enjoy punishment I guess. Just got Google Fi 6 months ago and never looked back. Of course, it is basically just T-Mobile. My phone even says T-Mobile on startup.
May sound weird, but I LOVE the way he talks, it's so genuine and immediate, he's clearly saying just and only what he really thinks
i totally agree. i came to this comments section expecting to see tons of butthurt MBAs and I am pleasantly surprised
All hail Elon! All hail Elon! All hail Elon!
Especially when what he thinks doesn’t suck and resonates with normal logical minds!
U love the way he stutters etc. Cuz it makes him look more genuine and humane. Cuz if you get real, most real people do get nervous lol.
Efficient speech is a beautiful thing.