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Thursday, 27 February 2025 16:07

The Elon Musk Approach to Management

Elon Musk is no stranger to controversial leadership tactics, and his latest approach to workplace efficiency is no exception. In his role within the Department of Government Efficiency, Musk recently sent an email to all federal employees, instructing them to bullet point five key work achievements to justify their jobs. His message was clear—failure to respond would be considered a resignation.

While this might seem like a bold attempt to slim down American government spending, in reality, it’s a heavy-handed stunt designed to create the illusion of decisive action. It assumes that every employee’s contribution can be easily summarised in a handful of bullet points, disregarding the complexity of modern work and the importance of structured, ongoing performance management.

Performance Management shouldn't be a stunt. It’s not about issuing ultimatums or pressuring employees into proving their worth on demand. A well-structured performance management programme:

  • Sets clear objectives through a tiered approach, cascading goals from leadership down through the management structure.
  • Includes regular performance discussions instead of relying on one-off assessments.
  • Provides opportunities for feedback, coaching, and development, ensuring that employees understand expectations and have the tools to succeed.

Musk’s blunt approach completely disregards the importance of consistent, well-managed performance reviews. Instead of motivating employees, it creates fear, uncertainty, and disengagement, ultimately leading to low morale and high turnover.

Business has changed significantly over the past decade, and so too must our approach to performance management. Gone are the days when employees were evaluated once a year based on long-term projects.

Today’s workforce is more agile, and short-term "sprint" tasks often take precedence over grand, multi-year initiatives. Companies that fail to adapt to this shift risk frustrating their employees and missing out on opportunities for continuous improvement.

For example:

  • A software development team may operate in two-week sprints, delivering incremental improvements rather than working towards a single, year-end release.
  • A marketing department may measure success through campaign performance rather than an annual review of branding efforts.
  • A customer service team may be evaluated based on real-time feedback scores rather than periodic assessments.

If Musk’s approach were applied to these teams, it wouldn’t accurately reflect their contributions—some projects may not align neatly into five bullet points, while others might be in progress rather than completed.

Furthermore, the responsibility for the behaviours and performance within an organisation must be owned and role modelled from the very top; to be cascaded down through the management tiers. The “do as I say” approach the Musk appears to favour, doesn’t cut it with the modern workforce and leading by example has become a fundamental cornerstone of effective performance management.

Rather than relying on a one-size-fits-all, fear-driven policy, managers today need to take a tailored or nuanced approach to performance management. This means:

  • Setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) that reflect the changing nature of work.
  • Holding regular check-ins and performance reviews to ensure ongoing development and accountability.
  • Understanding individual work styles and responsibilities, rather than expecting every employee to fit into the same mould.

For example, an introverted, analytical employee may not showcase their achievements as readily as an outspoken colleague, but that doesn’t make their contributions any less valuable. A skilled manager will recognise these differences and adjust their performance discussions accordingly.

Join us to discuss effective Performance Management at next week Breakfast Meetings

If you want to build a real performance management strategy—one that develops employees, increases productivity, and retains top talent—then you won’t want to miss HR Champions' Employment Law Breakfast Club meetings next week.

This is your last chance to grab a ticket and join the discussion on how businesses can structure performance management effectively, rather than pressuring staff to justify their existence, as Musk seems to believe is a reasonable approach.

Let’s work together to create a strategy that supports employees, fosters engagement, and drives long-term success. Contact HR Champions on 01452 331331, complete the contact form or book your place and join in one of next week’s meetings.

 

  

Read 20 times Last modified on Thursday, 27 February 2025 18:38

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