'Too Many MBAs Running Companies,' Elon Musk Once Claimed, Encouraging More Time On Creating 'Amazing' Products

Elon Musk strongly disagreed with the current state of corporate America, saying there are “too many MBAs running companies,” which results in too much focus on money, meetings and PowerPoint presentations instead of making products that people love.

"Too many MBAs ruining Companies, there's the MBA ization of America, which is not great, there should be more focus on the product or service, less time on board meetings, less time on powerpoint presentations, and more time on the factory floor and on customers"

-Elon Musk pic.twitter.com/XAoiSChm5K

— SMX 🇺🇸 (@iam_smx) June 23, 2024

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Too Much Focus on Financials, Not Enough on Products

In a 2020 interview, Musk argued that many CEOs and top executives spend too much time calculating and making fancy presentations. Instead of worrying about financial numbers, Musk thinks leaders should get more involved in improving their products. He believes corporate America is too focused on making profits and keeping shareholders happy, which has made them forget the real goal of a business – to make great products or services. He even coined a phrase for this problem: “the MBA-ization of America.”

To Musk, financial success isn’t the starting point – it’s the result. He believes that companies should focus on creating “amazing” products and profits will naturally follow. Instead of focusing first on spreadsheets and profit margins, Musk encourages leaders to think about the customer experience. “Is your product as awesome as it could be? Probably not,” he says, challenging executives to rethink their priorities.

A business exists to take resources and turn them into something more valuable. The only way to ensure that value is by focusing on the quality of the product itself. Hence, if the product is amazing, profit will come as a byproduct.

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Less Time in Meetings, More Time With Customers

Musk has simple advice for CEOs and corporate leaders: “Spend less time in conference rooms, less time on PowerPoint … and more time on the factory floor.” He literally means this as he famously slept on the factory floor to stay close to the action and understand what was happening with production. He believes leaders need to be closer to where the actual work is happening and should spend more time understanding what customers want.

In his eyes, CEOs should be out there, talking to customers, seeing the product firsthand and getting involved in the nitty-gritty details. This is how they can ensure the product is as good as it can be – not by sitting in endless meetings or tweaking a financial forecast.

Many executives think innovation has to be flashy or game-changing, but Musk says that even small upgrades can significantly increase a product’s value to customers.

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