Read the case and then follow the 3-step problem-solving approach to OB as outlined.Be sure to apply chapter concepts/models.

Please use the following headers in your initialpost: Step 1:Define the problem. Step 2:Identify causes of the problem. Step 3:Make recommendations for solving the problem.

PROBLEM-SOLVING APPLICATION CASE Leadership Matters! Elon Musk is widely regarded as one of the most suc- Musk eventually conceded that his idea for fully cessful entrepreneurs in history. 130 He became a bil- automated production of the Model 3 was a non- lionaire by age 31 after founding and selling several starter, and he and his workers scrambled to get pro- successful start-ups-most notably the company that duction back on track by working 80-100 hour would later be known as Paypal. In 2004 Musk weeks. 137 Customers waited months past delivery invested $6.3 million into Tesla Motors and soon after dates for their vehicles and took to social media to became the company's CEO. 131 lambast the company. Further, many of the Model 3s Musk has a keen ability to express ideas and get that were delivered needed costly and time-consuming people excited about them and has garnered praise repairs. 138 Musk would later refer to the ordeal as for his inspiring and visionary leadership. 132 Author production hell."139 Dale Buss argues that "... a huge part of Musk's motiva- Some blame Musk's inability to delegate for Tesla's tional quiver is to come up with and continually express problems and for the recent exodus of more than other-worldly goals that appeal to the passions of his 36 VPs and other high-ranking executives. 140 Musk employees as well as to his own ambitions."133 Todd wants things done his way down to the tiniest detail Maron, Tesla's former general counsel, said Musk is and often rejects industry best practices along with 'someone who empowers you to be better than you advice from his senior leadership. For example, Musk think you can be," adding that "he has extraordinarily once instituted a new workflow management method high standards, and so he pushes you to be your abso- against the advice of his production workers. The lute best." Another former employee described Musk employees secretly reverted to Toyota's Kanban as "the smartest person I have ever met," adding, "| method when Musk's technique ultimately slowed pro- can't tell you how many times I prepared a report for duction. 141 Author Barry Enderwick believes Musk's him and he asked a question that made us realize we micromanaging style ".. . displays a fundamental misun- were looking at the problem completely wrong."134 derstanding of what leadership means. No one person can do everything at a company."142 MUSK'S LEADERSHIP STYLE Others blame Musk's mental health for his down- ward spiral and describe him as emotionally unstable AND BEHAVIOR and fragile. Musk developed a reputation on the pro- Some have criticized Musk's aspirations to change the duction floor for openly ridiculeng, insulting, and bully- world as outlandish and his ideas as unachievable, but ing workers who fell short of performance targets. He Musk doesn't believe in impossibilities. Says author appeared extremely sensitive to skeptics, often reas- Christopher Davenport, "People are always telling him signing workers who questioned his ideas to new he can't do it. But he doesn't like to hear it can't be departments, uninviting them to important meetings, done. He categorically rejects that. It's all about, 'How and even firing them. Musk also displayed frequent can we do it?'"135 A recent example of Musk's stub- emotional reactions to isolated customer complaints bornness is the production of the Model 3. After the on social media. As a former employee recalls, "Some company revealed the concept to the public and customer would tweet some random complaint, and locked in production dates, Musk called a meeting to then we would be ordered to drop everything and tell executives he had a dream that the entire produc- spend a week on some problem affecting one loud- tion process had been fully automated. In other words, mouth in Pasadena, rather than all the work we're sup- vehicle production would require no humans from start posed to do to support the thousands of customers to finish. He wanted to make the dream a reality, he who didn't tweet that day."143 wanted to do it with the Model 3, and he wanted to Musk's recent public appearances and social media begin production four months ahead of Tesla's original posts have raised consumer concerns about his ability schedule. What followed were several months of what to deliver on his promises and successfully run his former executives and employees describe as a famil companies. In one instance, he angrily tweeted that a lar pattern: executives told Musk his idea wasn't diver sent to rescue a trapped Thai boys' soccer team achievable, he disagreed, and engineers resigned was a pedophile after Musk's offer to assist with the res- when they realized they couldn't reason with him. 136 cue was declined. The diver filed a defamation lawsuit Leadership Effectiveness CHAPTER 13 543important problem(s) in this case. Remember against Musk for this damaging and unsubstantiated claim. 144 As another example, Musk chose to smoke that a problem is a gap between a desired and a current state. State your problem as a gap, and marijuana during an appearance on "The Joe Rogan Experience" podcast. 145 In August 2018, in what would be sure to consider problems at all three levels. prove the most financially damaging of his social If more than one desired outcome is not being media choices to date, Musk tweeted that he was tak- accomplished, decide which one is most impor ng Tesla private and had secured the funding to do so. tant and focus on it for steps 2 and 3. As a result of his tweet, the company's shares skyrock- B. Cases have protagonists (key players), and ted 11 percent in one day. Musk had not actually problems are generally viewed from a secured funding to take Tesla private and the SEC particular protagonist's perspective. Identify charged him with securities fraud. He settled the case the perspective from which you're defining and agreed to pay a $40 million fine to the SEC, step the problem. down as Tesla's chairperson, and allow others in the company to regulate his social media activity. 146 A few STEP 2: Identify causes of the problem by using material from this chapter, summarized in the months after reaching the settlement, Musk gave a 60 Minutes interview and said "I do not respect the Organizing Framework shown in Figure 13.6. SEC." While it is not illegal for Musk to criticize the regu- Causes will appear in either the Inputs box or atory agency, experts agree it's an unwise choice, both the Processes box. n terms of his relationship with the agency and his abil- A. Start by looking at Figure 13.6 to identify which ity to attract board members to his companies. 147 person factors, if any, are most likely causes to the defined problem. For each cause, ask your- WHAT'S NEXT FOR ELON MUSK? self, Why is this a cause of the problem? Asking why multiple times is more likely to lead you to Musk's quirkiness, overconfidence, and volatility root causes of the problem. resemble the attributes and behaviors of other famous entrepreneurs-most notably, Steve Jobs. 148 As con- B. Follow the same process for the situation sumers we allow for and even expect a certain amount factors. of idiosyncrasy in our leaders. Yale School of Manage- C. Now consider the Processes box shown in ment's Dr. Jeffrey Sonnenfeld argues that some mea- Figure 13.6. Consider concepts listed at all sure of hubris is necessary for entrepreneurs to three levels. For any concept that might be a succeed, saying, "The odds are against them succeed cause, ask yourself, Why is this a cause? Again, ing rationally, so they have to have an unrealistic sense do this for several iterations to arrive at root of their own efficacy to beat the odds." But Sonnenfeld causes . also notes that Musk is likely to "take himself and the D. To check the accuracy or appropriateness of the company off a cliff" if he doesn't dial things back. 149 causes, map them onto the defined problem. Tesla recently unveiled its new electric vehicle-the Model Y crossover-to lukewarm reception. Pre-orders STEP 3: Make your recommendations for solv- started immediately and required a $2,500 initial ing the problem. Consider whether you want to payment-$1,000 more than the company had resolve it, solve it, or dissolve it (see Section 1.5). charged customers to reserve the Model 3. Market Which recommendation is desirable and analysts see this increase as cause for concern about feasible? the company's cash position and predict that initial A. Given the causes identified in Step 2, what are orders for the Model Y will be much lower than they your best recommendations? Use the content in were for the Model 3. 150 Chapter 13 or one of the earlier chapters to pro- As for that tweet that cost him $40 million in SEC pose a solution. fines and his position as chairman of Tesla's board, Musk says it was "worth it."151 B. You may find potential solutions in the OB in Action boxes and Applying OB boxes within this chapter. These features provide insights into APPLY THE 3-STEP PROBLEM- what other individuals or companies are doing SOLVING APPROACH TO OB in relationship to the topic at hand. C. Create an action plan for implementing your STEP 1: Define the problem. recommendations. A. Look first at the Outcomes box of the Organizing Framework in Figure 13.6 to help identify the 544 PART 2 Groups