Elon Musk expresses concern over the increasing dominance of MBA graduates in company leadership, highlighting that it may detract from a focus on the actual products and services offered. He emphasizes that the true purpose and value of a company lie in its ability to allocate resources effectively to create goods and services that are worth more than the cost of their inputs. Musk advocates for spending less time in meetings and on presentations, and more time on the production floor and with customers to enhance the quality of the products.
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00:00I think there might be too many MBAs running a company.
00:02There's the MBA-ization of America, which I think is maybe not that great.
00:07That there should be more focus on the product, the service itself,
00:10less time on board meetings.
00:12What's the point of a company at all?
00:14Why even have companies?
00:16It's like a company is an assembly of people gathered together to create a product or service
00:20and deliver that product or service.
00:21And sometimes people lose sight of that.
00:22A company has no value in and of itself.
00:24It only has value to the degree that it is an effective allocator of resources
00:28to create goods and services that are of greater value than the cost of the inputs.
00:33This thing we call profit should just mean, over time,
00:37that the value of the output is worth more than the inputs.
00:41Just spend less time in meeting rooms, less time on PowerPoint presentations,
00:44less time on a spreadsheet, and more time on the factory floor,
00:47more time with customers.
00:48And obviously, a lot of people out there are already doing that.
00:50But I just urge people to say, like, hey, step back a second and say,
00:53is your product as awesome as it could be?
00:55Probably not.
00:56What could you do to make it great?