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Effective Leaders and Communicators: Elon Musk – Failure is an Option

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1 Effective Leaders and Communicators: Elon Musk – Failure is an Option
03/22/2017 Effective Leaders and Communicators: Elon Musk – Failure is an Option by Patti Gilbert-Bonner

2 03/22/2017 Source(s): Lauren N. Padgett, "Elon Musk: Transformational Leadership in Action." Blog on Leadership. (March 26, 2015).

3 03/22/2017 Introduction Elon Musk is an effective leader, specializing in the technology industries of the 21st Century Musk has continually grown and utilized his leadership and communication skills He is active and devoted to finding solutions to major global problems Traditionally, most corporate governance focuses on minimizing risk Musk remains quite successful As a venturesome visionary Welcoming risk, and even failure, as the conduit to successful invention

4 03/22/2017 Introduction (Cont.) Achieving sustainability as quickly as possible has become paramount in today’s society. Sustainability is concerned with How biological systems embrace diversity within the ecosystem Indefinite productivity, in a specific sense The ingenuity of Elon Musk Encompasses the broader meaning of sustainability Incorporates the endurance of systems and processes into the foundation of his ventures

5 Background Elon Musk was born and raised in South Africa
03/22/2017 Background Elon Musk was born and raised in South Africa As a youth, Musk longed to obtain citizenship in the United States As a young adult, Elon Musk immigrated to Canada where he became a citizen through his mother’s lineage A Canadian citizen, Musk performed manual labor in several jobs and positions to make a living.

6 03/22/2017 Education Musk’s educational background exemplifies his determination to succeed Elon Musk initially attended the Queens College in Canada Not long after, reports say, “Before completing his degree [Musk] came to the United States as an international student.”1 A continued pursuit of business knowledge and applied science led Musk to complete undergraduate studies a Bachelor of Science in Business from the Wharton School (University of Pennsylvania) a Bachelor of Arts in Economics and Physics from the University of Pennsylvania, proper2 1. Stuart Anderson, "International Students Who Started Billion-Dollar Companies." International Educator 25, no. 4 (2016): 6, 2. Ibid., 5.

7 CAREER Once Elon Musk’s childhood dream of reaching the United States was accomplished Went to the Silicon Valley, Gained a visa as legal authorization to work Began his first business venture called Zip2, with the aid of his brother Musk became a United States citizen in 2002, and Sold Zip2 to Compaq Cofounded X.com as a pioneering company which facilitates payments through cyberspace3 Transferred his ingenuity to PayPal, who bought the X.com website as a template to become an exemplary online financial services provider 3. Anderson, "International Students Who Started Billion-Dollar Companies," 6. 03/22/2017

8 Career (cont.) From this entrepreneurial launch pad
03/22/2017 Career (cont.) From this entrepreneurial launch pad (no pun intended – well, maybe), Elon Musk became the founder and CEO of Tesla Motors, SolarCity, and SpaceX4 As the 2002-founder and CEO of SpaceX, Musk imposed important landmarks SpaceX has become the foremost subject involving Musk in today’s media. On December 22, 2015, the SpaceX company “successfully landed an unmanned rocket upright, after sending 11 satellites into orbit.”5 4. Joan Marques, "A Mindful Moral Compass for Twenty-First Century Leadership: The Noble Eightfold Path." The Journal of Values-Based Leadership 10, no. 1 (2017): 6, 5. Anderson, "International Students Who Started Billion-Dollar Companies." 6.

9 03/22/2017 Career (cont.) Elon Musk released a whitepaper titled “Hyperloop Alpha Paper” to generate conversation about a “fifth mode of transportation Faster than commercial air travel More energy efficient than train travel As accessible as a personal automobile6 Musk prompts discussion on this topic because he feels the “bullet-train initiative” in California one of the most expensive ventures of its type one of the slowest in the world7 The examples Musk sets forth propose innovation – especially recycling and conservation - on a universal scale They serve as only the beginning sustainability enterprises, which are Elon Musk’s hallmark 6. Max Werner, Klaus Eißing, and Sebastian Langton. "Shared value potential of transporting cargo via hyperloop." Frontiers in built environment 2 (2016): 17, from Musk, E., Hyperloop Alpha. (2013). 7. J. Yarrow, Elon Musk Has Plans for a New, Magical Form of Transportation Called the Hyperloop. Business Insider [online]. (2013). Form-Of php.

10 GOALS Musk’s ultimate goal spans a lifetime and has always been entrepreneurship From the beginning, he believed the United States would be the best platform to provide such an opportunity Musk pursued his dream until reaching that target After becoming a United States citizen, Musk’s business ventures encountered many challenges and risks 03/22/2017

11 Goals (cont.) Elon Musk, as a leader Obtained his childhood dream
03/22/2017 Goals (cont.) Elon Musk, as a leader Obtained his childhood dream Compounds his aspiration by fashioning new goals and dreams, and sets about achieving them Foresaw hurdles using a pioneering spirit and intellect that found solutions before they become obstacles In looking and acting beforehand, “he met his goal of bringing about a huge jump in the popularity and prestige” of more than just electric vehicles Breaks through established barriers Thinks outside of many traditional boxes8 8. Amanda Setili, "Does Your Leadership Style Destroy Agility...or Supercharge It?." Leader to Leader 2015, no. 78 (2015): 58,

12 03/22/2017 Goals (cont.) The success of Elon Musk is largely attributable to leverage provided by his enhanced communication skills Inform Persuade Solicit Direct inspiration Enlist “an entire legion of workers to help him realize this vision.”9 9. Marques, "A Mindful Moral Compass," 6.

13 Inspiring Individuals
When asked about his connection to Nikola Tesla, Musk Admires the genius of Tesla Admits to being a bigger fan of Edison than Tesla, because Edison Brought his products to market Made those inventions accessible to the world10 10. Edward Peter Stringham, Jennifer Kelly Miller, and Jonathan R. Clark. "Overcoming Barriers to Entry in an Established Industry." California Management Review 57, no. 4 (2015): 88-89, in_an_Established_Industry_Tesla_Motors/links/567ac38a08ae051f9adde88a.pdf 03/22/2017

14 Communication Style Source(s): Asa Mathat, “All Things Digital.”
03/22/2017 Communication Style Source(s): Asa Mathat, “All Things Digital.”

15 Communication style (cont.)
03/22/2017 Communication style (cont.) Pictures are always worth countless words, and those contained in this position paper are meant to convey the inspiration of the body language conveyed by Elon Musk (i.e., hand gestures, facial expressions, expectant posture). In addition to body language, Musk’s communication style Indicative of servant leadership Supportively using conversational and inspirational tone Very effective in persuasion

16 Communication style (cont.)
03/22/2017 Communication style (cont.) Through effective communication, Musk strives to bring his dreams of “a better future for humanity” to fruition by achieving and sharing his sustainable ideals Uses finely honed skills to communicate through “failures” and Lead sustainable innovation All this, while learning from the adventure.

17 Leadership Characteristics
Elon Musk effectively leads by a complex leadership style within each organization by incorporating these highlights: Authoritative tactics A true servant leader Using democracy Solicits feedback and participation Coercive in Achieving compliance Handling crisis Nurturing Compelling affiliations Forging emotional bonding 03/22/2017

18 Leadership characteristics (cont.)
03/22/2017 Leadership characteristics (cont.) Elon Musk enters the high-end of the markets with many of his ventures by Making quick and rational decisions Using real-life operations as educators11 Many attributes of Elon Musk’s total business success Tenacity, in the face of continual threats Tempered with a “reliance on ethical standards”12 Others add “designing the company’s strategy to maximize the rate of learning”13 11. Setili, "Does Your Leadership Style Destroy Agility... or Supercharge It?," 57. 12. Lauren N. Padgett, "Elon Musk: Transformational Leadership in Action." Blog on Leadership. (March 26, 2015): (last paragraph), 13. Setili, "Does Your Leadership Style Destroy Agility... or Supercharge It?," 57.

19 Leadership characteristics (cont.)
03/22/2017 Leadership characteristics (cont.) A team of Penn State students, collaborating through a Leadership blog as a part of their Psychology education, provided a realistic analysis of Elon Musk’s leadership style. A consensus said, Musk’s “leadership behaviors coincide with each of Bennis and Nanus’ four strategies typically used by transformational leaders:” Vision is inherent in everything “Musk”; he has always inspired his employees as a social architect; he builds trust with all stakeholders, even when it hurts; and his creativity is self-evident.14 14. . Padgett, "Elon Musk: Transformational Leadership in Action," (first and second paragraphs), In Warren Bennis and Burt Nanus. "The strategies for taking charge." Leaders, New York: Harper. Row (1985); and Northouse, Peter G. Leadership: Theory and practice. Sage, 2012.

20 LEADERSHip characteristics (cont.)
03/22/2017 LEADERSHip characteristics (cont.) In empirical studies concerning other industry innovators, Elon Musk (2013) is proven to manage objections without breaking stride. Musk is at the pinnacle, as a leader Overcomes personal and environmental constraints, which evidence the “the difficulty of the challenge and extent of change necessary to achieve their aspirations” Exhibit the courage needed to face risks and obstacles in pursuit of their goals (i.e., constraints included by a coercive government)15 15. Kiko Thiel, "Deviating from Norms to Create Extraordinary Change: Introducing the Concept of Transcendent Deviance." (2015): 6, In Elon Musk the mind behind Tesla, Spacex, Solarcity, Tedx interview video, quotation from minutes 19:35-20:22.

21 Leadership characteristics (cont.)
03/22/2017 When Musk is asked what he believes is the most effective leadership trait, his reply is: I think it’s very important to have a feedback loop, where you’re constantly thinking about what you’ve done and how you could be doing it better. I think that’s the single best piece of advice: constantly think about how you could be doing things better and questioning yourself – Elon Musk16 Source(s): Lauren N. Padgett, "Elon Musk: Transformational Leadership in Action." Blog on Leadership. (March 26, 2015). 16. Subha Ramani, "Reflections on feedback: Closing the loop." Medical teacher 38, no. 2 (2016): , Leadership characteristics (cont.)

22 Leadership characteristics (cont.)
03/22/2017 Elon Musk is a tenacious, yet sensitive, innovator and leader… Lessons learned Modern leaders are still learning lessons of humility from Musk’s acceptance – and welcoming - of failures as opportunities to learn, change, and grow. These lessons are crucial for effective leadership in the ever-changing, ever-evolving, complex reality of the 21st Century. An objective look at his leadership characteristics will produce many specific examples – many sources have noted that his employees at SpaceX “would follow their CEO into the sun.” He is obviously a very conscientious visionary, yet he embraces his counterintuitive side when it really counts. Leadership characteristics (cont.)

23 Leadership characteristics (cont.)
03/22/2017 When asked how he is able to innovate at such a grand scale, he talks of the importance of first-principles reasoning – “boil things down to their fundamental truths and reason up from there as opposed to reasoning by analogy… which essentially means copying what other people do with slight variations.”17 17. Thiel, "Deviating from Norms," 28. Source(s): Lauren N. Padgett, "Elon Musk: Transformational Leadership in Action." Blog on Leadership. (March 26, 2015). Leadership characteristics (cont.)

24 03/22/2017 Conclusion In 2014, “Elon Musk, CEO of Tesla, the electric car company, announced Tesla would make its patents freely available to competitors,” via the public domain. “Conventional wisdom holds that patents are essential to keep competitors from imitating innovations” Really important for smaller startup companies such as Tesla. Historically, conventional wisdom has been wrong in some cases Musk’s unconventional – some would say ingenious - undertakings are quite timely Especially since the “conditions that make knowledge sharing advantageous today won’t last forever.”18 18. James Bessen, "History backs up Tesla’s patent sharing." Harvard Business Review Blog 13 (2014): last paragraph,

25 03/22/2017 Conclusion (cont.) In the Tesla scenario, Musk operates in the American automotive industry’s “Big Three” sandbox Why would a CEO on the leading edge of innovation risk Tesla’s trade secrets and return on investment (ROI)?19 In answer, Elon Musk’s historic motivation inspires others – carmakers, in Tesla’s case - to stretch and improve the competition Using Tesla, Musk will achieve his ultimate goals Making viable electric vehicles plentiful Reduce the human footprint on Earth20 Making Tesla patents readily accessible to competitors, facilitates that goal through Speed Certain achievement 19. Bessen, "History backs up Tesla’s patent sharing.“ 20. Stringham, Miller, and Clark. "Overcoming Barriers to Entry in an Established Industry," 95.

26 03/22/2017 Conclusion (cont.) A man who shows many “examples of transcendent deviance and the extraordinary” is an inspiration to many. The leadership style of Elon Musk is reflective of that very description He promises “to redefine what is possible, and potentially change the way we view the world.”21 TIME Magazine says of Musk, “It’s a paradox that Elon is working to improve our planet at the same time he’s building spacecraft to help us leave it.” But it is true that genuine “vision is binocular – and Elon Musk is clearly a man who can see many things at once.”22 21. Thiel, "Deviating from Norms," 40. 22. Richard Branson, “The 2013 Time 100: TIME presents its annual list of the 100 most influential people in the world, from artists and leaders to pioneers, titans and icons,” TIME webpage, (April 18, 2013): ,

27 03/22/2017 atch (Sending A Musk read… Source(s): Google (2017).

28 03/22/2017 Bibliography Anderson, Stuart. "International Students Who Started Billion-Dollar Companies." International Educator 25, no. 4 (2016): 4. Bessen, James. "History backs up Tesla’s patent sharing." Harvard Business Review Blog 13 (2014). Branson, Richard, “The 2013 Time 100: TIME presents its annual list of the 100 most influential people in the world, from artists and leaders to pioneers, titans and icons,” TIME webpage, (April 18, 2013). Marques, Joan. "A Mindful Moral Compass for Twenty-First Century Leadership: The Noble Eightfold Path." The Journal of Values-Based Leadership 10, no. 1 (2017): 7. Ramani, Subha. "Reflections on feedback: Closing the loop." Medical teacher 38, no. 2 (2016):

29 03/22/2017 Bibliography (cont.) Setili, Amanda. "Does Your Leadership Style Destroy Agility... or Supercharge It?." Leader to Leader 2015, no. 78 (2015): Stringham, Edward Peter, Jennifer Kelly Miller, and Jonathan R. Clark. "Overcoming Barriers to Entry in an Established Industry." California Management Review 57, no. 4 (2015): Thiel, Kiko. "Deviating from Norms to Create Extraordinary Change: Introducing the Concept of Transcendent Deviance." (2015). Werner, Max, Klaus Eißing, and Sebastian Langton. "Shared value potential of transporting cargo via hyperloop." Frontiers in built environment 2 (2016): 17. Yarrow, J. Elon Musk Has Plans for a New, Magical Form of Transportation Called the Hyperloop. TSLA. (2013).


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