Five-Step Algorithm
Systematically improve any product, process, or system by following Elon Musk's strict sequence: question requirements, delete, simplify, accelerate, automate.
When to Use
- Optimizing a manufacturing process
- Reducing costs in a product or service
- Improving team or organizational workflows
- Any situation where someone says "make this more efficient"
- User asks "Apply the algorithm" or "How do I make this better/faster/cheaper?"
Inputs
| Input | Required | Description |
|---|---|---|
| process_or_product | Yes | What you're trying to improve |
| current_state | Yes | How it works now (steps, parts, timeline) |
| goal | No | Specific improvement target (cost, speed, quality) |
The Algorithm
Musk calls this "the algorithm"—a distillation of manufacturing wisdom from Tesla and SpaceX. The power lies in the strict ordering. You must complete earlier steps before moving to later ones.
Step 1: Question the Requirements
"Make the requirements less dumb."
- Every requirement is suspect until proven necessary
- Requirements from smart people are especially dangerous—you may not question them enough
- Each requirement must have a name attached (not a department)
- Ask: "Who originally requested this? Why? Is the reason still valid?"
Key questions:
- Why does this requirement exist?
- What happens if we don't meet it?
- Is this a true constraint or a preference?
- Who owns this requirement? Can we talk to them?
Warning signs of bad requirements:
- "It's always been done this way"
- "Legal/compliance requires it" (but no specific person can explain why)
- "The customer expects it" (but no actual customer data)
- Requirements from departments, not individuals
Step 2: Delete Parts or Processes
"If you're not adding back at least 10% of what you delete, you didn't delete enough."
- The bias is always toward adding things "just in case"
- Fight this bias ruthlessly
- It's easier to add something back than to delete something that shouldn't exist
- Deletion is the highest-leverage improvement
Key questions:
- What would break if we removed this entirely?
- When was this last actually needed?
- Is this a dependency or just a comfort?
- Can we run a test without this?
Deletion targets:
- Steps that exist "for documentation"
- Approvals that have never blocked anything
- Parts added for edge cases that haven't occurred
- Reports no one reads
Step 3: Simplify and Optimize
"The most common error of a smart engineer is to optimize something that should simply not exist."
- Only simplify what remains after deletion
- Resist the urge to make unnecessary things better
- Look for ways to combine steps or parts
- Reduce variation and special cases
Key questions:
- Can two steps become one?
- Can multiple parts be consolidated?
- Is there a simpler way to achieve the same outcome?
- What would a beginner find confusing?
Warning: If you find yourself optimizing, check whether you should delete instead.
Step 4: Accelerate Cycle Time
"Every process can be speeded up. But only do this after you have followed the first three steps."
- Speed of iteration beats perfection of any single iteration
- Look for bottlenecks and constraints
- Parallelize where possible
- Reduce wait times and handoffs
Key questions:
- What's the current cycle time?
- Where do things wait?
- What could be done in parallel?
- What's the theoretical minimum time?
Warning: If you accelerate a process that should be deleted, you're being efficient at something useless.
Step 5: Automate
"Most people start with Step 5, and they automate a process that never should have existed in the first place."
- Automation is powerful but should be LAST
- Never automate before questioning, deleting, and simplifying
- Automation locks in the current process—make sure it's the right process
- Consider partial automation where full automation is overkill
Key questions:
- Have we completed steps 1-4?
- Is this process stable enough to automate?
- What's the cost of automation vs. the benefit?
- Can we automate partially?
Critical Warning
Musk on his own mistakes: "I have personally made the mistake of going backwards on all five steps multiple times. In making Tesla's Model 3, I literally automated, accelerated, simplified and then deleted."
The most common error pattern:
- See a problem
- Jump to automation (Step 5)
- Realize the process is wrong
- Have to undo expensive automation
- Finally question and delete
The algorithm prevents this by enforcing order.
Workflow
Step 1: Gather and Review Inputs
Collect all relevant information:
- Review the provided data and context
- Identify key parameters and constraints
- Clarify any ambiguities or missing information
- Establish success criteria
Step 2: Analyze the Situation
Perform systematic analysis:
- Identify patterns and relationships
- Evaluate against established frameworks
- Consider multiple perspectives
- Document key findings
Step 3: Generate Recommendations
Create actionable outputs:
- Synthesize insights from analysis
- Prioritize recommendations by impact
- Ensure recommendations are specific and measurable
- Consider implementation feasibility
Output Format
## Five-Step Algorithm Analysis
### Target
[What's being improved]
### Current State
[Brief description of current process/product]
---
### Step 1: Question Requirements
**Requirements identified:**
1. [Requirement] - Owner: [Name] - Status: [Valid/Questionable/Delete]
2. [Requirement] - Owner: [Name] - Status: [Valid/Questionable/Delete]
3. [Requirement] - Owner: [Name] - Status: [Valid/Questionable/Delete]
**Requirements to challenge:**
- [Requirement]: [Why it should be questioned] - Action: [What to do]
**Requirements validated as necessary:**
- [Requirement]: [Why it's actually needed]
---
### Step 2: Delete
**Candidates for deletion:**
| Item | Last Actually Needed | What Breaks Without It | Recommendation |
|------|---------------------|------------------------|----------------|
| [Part/step] | [When] | [Impact] | Delete/Keep/Test |
**Deletions to implement:**
1. [Item] - Rationale: [Why]
2. [Item] - Rationale: [Why]
**Expected savings from deletion:** [Time/cost/complexity reduction]
---
### Step 3: Simplify and Optimize
**After deletion, what remains:**
[Simplified process/product description]
**Simplification opportunities:**
1. [Current] → [Simplified] - Benefit: [What improves]
2. [Current] → [Simplified] - Benefit: [What improves]
**Consolidation opportunities:**
- [Multiple items] → [Single item]
---
### Step 4: Accelerate
**Current cycle time:** [Time]
**Bottlenecks identified:**
1. [Bottleneck] - Cause: [Why] - Solution: [How to speed up]
2. [Bottleneck] - Cause: [Why] - Solution: [How to speed up]
**Parallelization opportunities:**
- [Steps that could run in parallel]
**Target cycle time:** [New time]
---
### Step 5: Automate
**Automation candidates (ONLY after steps 1-4):**
| Process | Stability | ROI | Recommendation |
|---------|-----------|-----|----------------|
| [Process] | High/Med/Low | [Estimate] | Automate/Partial/Manual |
**Automation plan:**
1. [What to automate] - Timeline: [When]
2. [What to keep manual] - Reason: [Why]
---
### Summary
| Metric | Before | After | Improvement |
|--------|--------|-------|-------------|
| Steps/Parts | [N] | [N] | [%] |
| Cycle Time | [Time] | [Time] | [%] |
| Cost | [Cost] | [Cost] | [%] |
### Next Actions
1. [Immediate action]
2. [Short-term action]
3. [Longer-term action]
Outputs
Primary Output: A structured analysis document that identifies and articulates patterns, insights, and actionable recommendations based on the input data.
Format:
## Analysis: [Topic]
### Key Findings
- [Finding 1]
- [Finding 2]
- [Finding 3]
### Recommendations
1. [Action 1]
2. [Action 2]
3. [Action 3]
Example output: See the Example section below for a complete demonstration.
Constraints
- Do not use this analysis as the sole basis for critical decisions
- Do not apply this framework to situations outside its intended scope
- Acknowledge that analysis is based on available data, which may be incomplete
- Honor the complexity of real-world situations that resist simple categorization
- Present findings with appropriate confidence levels
- Recognize the limits of the methodology
Example
Input: "Our code review process takes 3-5 days and engineers are frustrated. How do we speed it up?"
Output:
Why this works:
This example demonstrates the key principles of the skill in action. The approach is effective because:
- It follows the systematic workflow outlined above
- It shows concrete application of the framework
- It produces actionable, specific outputs rather than vague generalizations
- The analysis is grounded in observable details
- The recommendations are prioritized and implementable
Alternative applications:
This same approach can be applied to:
- Different contexts within the same domain
- Related but distinct problem types
- Scaled up or down depending on scope
- Combined with complementary analytical frameworks
Five-Step Algorithm Analysis
Target
Code review process
Current State
- Engineer submits PR
- Assigned to reviewer based on rotation
- Reviewer has 24 hours to start review (policy)
- Review comments go back and forth (avg 2.3 rounds)
- Final approval required from tech lead
- Merge requires green CI and approval
- Average time: 3-5 days
Step 1: Question Requirements
Requirements identified:
- 24-hour start SLA - Owner: Engineering Manager (from 2019) - Status: Questionable
- Tech lead approval for all PRs - Owner: CTO (2018 security incident) - Status: Questionable
- Full CI suite must pass - Owner: QA team - Status: Valid
- Assigned reviewer system - Owner: Unknown - Status: Questionable
Requirements to challenge:
- 24-hour SLA: Creates batching behavior. Reviewers wait until deadline. Action: Talk to Eng Manager about whether this helps or hurts.
- Tech lead approval for ALL PRs: Security incident was 6 years ago. Is blanket approval still needed? Action: Get data on what % of PRs tech leads actually change.
- Assigned reviewer: Why can't anyone review? Action: Understand original rationale.
Requirements validated as necessary:
- CI passing: Real quality gate with demonstrated value
Step 2: Delete
Candidates for deletion:
| Item | Last Actually Needed | What Breaks Without It | Recommendation |
|---|---|---|---|
| Tech lead approval (small PRs) | Rarely changes outcome | Nothing for <100 lines | Delete for small PRs |
| Assigned reviewer system | — | Anyone could review | Delete, allow self-selection |
| 24-hour SLA | Creates wrong incentive | Faster reviews if removed | Delete |
| Multiple review rounds | Shows unclear requirements | Better first-pass reviews | Reduce |
Deletions to implement:
- Remove tech lead approval for PRs under 100 lines (covers 60% of PRs)
- Remove assigned reviewer—anyone can pick up any review
- Remove 24-hour SLA—replace with "same day" culture expectation
Expected savings from deletion: 1-2 days average
Step 3: Simplify and Optimize
After deletion, what remains:
- Engineer submits PR
- Any available reviewer picks it up
- One round of review (target)
- Tech lead approval only for large PRs
- CI passes
- Merge
Simplification opportunities:
- Review rounds (2.3 → 1): Create PR template with checklist; reviewer blocks only for real issues
- Large PR threshold: Clear definition (>100 lines OR touches auth/payments)
Step 4: Accelerate
Current cycle time: 3-5 days Bottlenecks identified:
- Waiting for reviewer pickup - Cause: Batching behavior - Solution: Slack notification for open PRs
- Back-and-forth rounds - Cause: Nitpicking - Solution: "LGTM with comments" option
- Tech lead availability - Cause: Single person - Solution: 2-3 designated approvers
Parallelization opportunities:
- Review and CI can run in parallel (already happening)
Target cycle time: <1 day for small PRs, <2 days for large PRs
Step 5: Automate
Automation candidates (ONLY after steps 1-4):
| Process | Stability | ROI | Recommendation |
|---|---|---|---|
| PR size classification | High | High | Automate—tag as small/large automatically |
| Reviewer notification | High | Medium | Automate—Slack bot for waiting PRs |
| Auto-merge on approval | Medium | Low | Partial—only for small PRs with green CI |
Automation plan:
- PR size tagging via GitHub Action - Timeline: This week
- Keep manual review selection—builds ownership
Summary
| Metric | Before | After | Improvement |
|---|---|---|---|
| Required approvals (small PR) | 2 | 1 | 50% |
| Average rounds | 2.3 | 1.5 | 35% |
| Cycle Time (small) | 3-5 days | <1 day | 70-80% |
| Cycle Time (large) | 3-5 days | <2 days | 50%+ |
Next Actions
- Today: Talk to CTO about tech lead approval history and data
- This week: Remove 24-hour SLA, announce "same day" culture
- Next week: Implement PR size auto-tagging
Integration
This skill is part of the Elon Musk expert persona. Use it to systematically improve anything—but always in the right order.