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https://www.bloomberg.com/news/articles/2018-09-13/tesla-s-elon-musk-doesn-t-need-a-coo-he-needs-a-new-board
Now that it is September, and the worst of August is mostly behind us, there is inevitably some sifting through the ashes to try to figure out what to do about the current enfant terrible CEO. We’ve had these before: messianic, difficulties sustaining personal relationships, emotionally volatile and capable of producing pretty fucking amazing stuff. Decades after their retirement and/or death, they generate all kinds of commentary and not just in business books.
If you think there is a solution to a problem like Elon, well, good luck with that.
Denning’s solution is an independent board. “Musk surely could use an extra pair of hands. But it won’t do much good if he remains free to simply slap them away whenever he feels like it.”
Yeah. I’m just here to tell you that an independent board does not fix this kind of problem. See, Sculley v. Jobs. As an investor, it is usually fairly obvious if you are dealing with this particular brand of leader. And then you basically have to decide: what is my roller coast ride tolerance. Am I prepared to sign on as a disciple of this particular messiah. Etc. What you should not be looking for, as an investor, is a board that is going to run a company, and override the CEO when the CEO wants to do something insane. Because the only point of signing on for this kind of corporate religion is _because_ the CEO wants to do something that everyone else thinks is impossible, difficult and/or a bad idea. This is where the Big Win may lie. Of course, it may _not_ lie with this particular charismatic screamer. But replacing the enfant terrible with an Adult will _definitely_ not accomplish the impossible or the difficult. And accomplishing a bad idea isn’t in anyone’s best interest.
Full disclosure: I don’t own stock in Tesla or any related companies, whatever they might be. I think this is all going to work out, and electric cars are where everything is headed. I didn’t buy a Tesla, but that had way more to do with my finicky car preferences in terms of seating position (don’t like lying down a la the sedan, and the glazing went way too far back in the SUV for my light issues). I hope that over time, supportive teams are built at all levels of this company and others working to build that future so the cars show up pretty quick and are compelling and not too expensive. Our future on this planet may well depend on that.
Now that it is September, and the worst of August is mostly behind us, there is inevitably some sifting through the ashes to try to figure out what to do about the current enfant terrible CEO. We’ve had these before: messianic, difficulties sustaining personal relationships, emotionally volatile and capable of producing pretty fucking amazing stuff. Decades after their retirement and/or death, they generate all kinds of commentary and not just in business books.
If you think there is a solution to a problem like Elon, well, good luck with that.
Denning’s solution is an independent board. “Musk surely could use an extra pair of hands. But it won’t do much good if he remains free to simply slap them away whenever he feels like it.”
Yeah. I’m just here to tell you that an independent board does not fix this kind of problem. See, Sculley v. Jobs. As an investor, it is usually fairly obvious if you are dealing with this particular brand of leader. And then you basically have to decide: what is my roller coast ride tolerance. Am I prepared to sign on as a disciple of this particular messiah. Etc. What you should not be looking for, as an investor, is a board that is going to run a company, and override the CEO when the CEO wants to do something insane. Because the only point of signing on for this kind of corporate religion is _because_ the CEO wants to do something that everyone else thinks is impossible, difficult and/or a bad idea. This is where the Big Win may lie. Of course, it may _not_ lie with this particular charismatic screamer. But replacing the enfant terrible with an Adult will _definitely_ not accomplish the impossible or the difficult. And accomplishing a bad idea isn’t in anyone’s best interest.
Full disclosure: I don’t own stock in Tesla or any related companies, whatever they might be. I think this is all going to work out, and electric cars are where everything is headed. I didn’t buy a Tesla, but that had way more to do with my finicky car preferences in terms of seating position (don’t like lying down a la the sedan, and the glazing went way too far back in the SUV for my light issues). I hope that over time, supportive teams are built at all levels of this company and others working to build that future so the cars show up pretty quick and are compelling and not too expensive. Our future on this planet may well depend on that.