Management experts point out that Elon Musk’s hostile offer to buy Twitter reflects his brash leadership style, they say
Elon Musk He offered to buy Twitter for $ 43 billion, in one of his latest leadership demonstrations where he left several lectures.
Over the weekend, Tesla’s eccentric CEO and founder of SpaceX tweeted about the possibility of a hostile move in which he would bypass the company’s board and make the offer directly to its shareholders.
In his post, Musk commented that “it would be totally indefensible not to submit this offer to a shareholder vote.”
Elon Musk and his unorthodox moves in every situation
The Twitter offer from the CEO of Tesla and SpaceX is arguably his latest unorthodox move when it comes to initiating a deal. “It’s both shocking and classic Elon,” he said. David Yoffie, leadership professor at Harvard Business Schoolwho has published several investigations on Musk.
“It reflects his extreme self-confidence that he can run companies where others fail,” he said.
Its challenge to the status quo, along with other key attributes, such as your ability to sell your vision and solve problems in an innovative wayprovides lessons for other CEOs, leadership experts said.
At the same time, Musk’s bluntness and abrasive way of treating people are warnings of what not to do.
1. Lean on your view of things
Musk has an extraordinary ability to convince consumers, investors and employees to support his mission.
Its secret is that tap into people’s desire for inspiration. It is something that the general public is increasingly looking for in their business leaders.
It not only sells companies, it sells answers to great problems that weigh on the future of humanityCrowley Redding commented. Tesla was his answer to take the world away from gasoline and combine green transportation with luxury.
SpaceX has like they aim to secure the future of humanity through the space colonizationtaking something that is normally considered a distant task only from the government and turning it into a private company, speeding up the mission in the process.
Musk struggles to acquire Twitter
It now promises a new era for freedom of expression and connectivity. “Twitter has tremendous potential,” Musk said in a letter to the company’s leaders.
“He is an expert in defining the mission, communicating it and convincing his workforce to accept it,” he explained. Crowley Redding who has been investigating Musk for four years.
The lesson for CEOs and aspiring CEOs is to embrace the vision, the purpose and be clear to all stakeholders about it, said Vitaliy Katsenelson, author of the leadership book “Soul in the Game”.
The technology visionary also convinces people to bet on him long-term, said Yoffie of Harvard, author of the leadership book Rules of Strategy.
2. Look at things from another perspective
In engineering and physics there is a way of thinking called “first principle thinking”. It is essentially a consideration of how you would solve a problem if you were an alien who has never seen or heard of the problem before. Elon Musk attributed it to his leadership success and it is one of his most valuable lessons.
Not paying attention to how things were done in the past and rejecting all previous assumptions to start over.
Adopting this mindset has guided Musk’s hiring decisions and what he demands of his workers.
Imagine, for example, designing car door handles in one way for your entire career and then they are asked to do something completely different.
Then, satisfied with your new design, you are asked to unwrap it and create a completely new one for the next model. Such is the life under the greatest visionary in the world.
3. Have authenticity … but in moderation
Musk did things for which most business leaders would be firedsome more serious than others.
He smoked marijuana while recording a podcast with Joe Rogan. Also has started a legal battle with the Securities Exchange Commission (SEC) after tweeting that he had “insured funds” to take Tesla privately for $ 420 a share. Musk explained at one point that it was a cannabis joke.
In 2017, SpaceX released a video compilation mocking its many rocket explosions and failures.
“Clearly there are things he’s doing that most people won’t be able to get away with in normal day to day runs,” Higgins said.
“What makes Elon Musk so attractive is his authenticity in leadership and the lessons he gives,” added Crowley Redding.
The South African usually doesn’t care “what they say”
The businessman has earned a reputation for being unrepentant himself, something few people in management positions can achieve. For instance, Musk’s answers in the interviews don’t seem to be pre-written.
Higgins also said that CEOs shouldn’t replicate some of the “wilder” things Musk said and did, but it wouldn’t hurt to be a little more “creative” to appear easily recognizable.
4. Find out how and when to break the rules
Musk is desperate for answers to big problems, so he looks for the most innovative solutions. Often, that means breaking rules or deviating from convention, for better or for worse, Crowley Redding said.
Although this aspect drives the innovation in their companies, also led Musk to face problems with the SEC over possible violations of the securities law. This is by sending a notification of your ownership interest on Twitter later than necessary.
Musk also breaks some of the rules of how leaders should treat people. “He has a very good eye for recruiting talent. The problem over time has been that he doesn’t always listen to that talent and tires him very quickly. “Higgins noted. “They leave because they gave up on him, got tired of him or got tired of them,” she added.
“The the worst part is the toxicity it creates Elon: Unrealistic goals without a realistic plan to achieve them, “a former boss who worked directly with Musk told Insider.” It’s a culture where if you don’t have a solution to a problem and you haven’t solved it in a few days, a week or two, you go “.
Yoffie compared Musk’s leadership style to that of Apple founder and CEO Steve Jobs, who was said to have been rude to people on multiple occasions. as highlighted in an article on the Business Insider site.