9 Business Lessons from Musk's Personal Texts
How much business is done by text? Much more than you'd think
From the archives. This article was originally posted on LinkedIn in September.
I read 40 pages of Musk texts so you don't have to. It's a masterclass in how business is finagled at the highest levels.
Some in the media have been reductionist, saying "this just proves it's a boys club," while also marveling at how much business is done simply by text.
But I think that misses the nuance of the many layers of games being played. It's like watching grandmasters play chess without understanding the rules of the game. "Looks fairly simple, you just move pieces around."
If you can’t do nuance, you can’t lead.
What I love about it most, honestly, is it gives me the ability to talk about the kinds of powerplays and dynamics I've seen in every company I've ever advised, from the world’s biggest banks and technology companies, down to newly-funded startups, and my own Web3 company I founded in 2018.
Here are nine points all of us can learn from:
1. Prominent people have pitch radar
At each stage—when Musk buys 9% of Twitter stock, when he’s appointed to the board, and when he offers to buy the whole company—people slide into his DMs. They take many different angles: excitement “that’s cool,” questions “what about,” suggestions “if you,” and offers for introductions “you should talk to.”
What this means for you: Prominent people have permanent defenses up because everyone they meet pitches them. No matter your angle, they see you coming. Be direct that you’re transacting them, because they already know.
2. A curt or ambiguous answer is a polite decline
When pitched, Musk’s general go-to response is to downplay: When asked questions by Joe Rogan, Reid Hoffman, and others, Musk uses short but factual statements such as: “I do not have that ability,” “I haven’t bought it yet,” and “I will provide advice, which they may or may not chose to follow.”
What this means for you: When pitching any senior exec, curt answers are an act of kindness, calibrated to make you stop without hurting you. They are statements that can’t be argued with. No matter how keen you are, don’t press it, exit gracefully.
3. You already know your team—so do they
When Musk wants to engage people he does so early, gently, and straightforwardly. “Any interest in participating in the Twitter deal?” He asks Larry Ellison just 11 days after deciding to buy the whole thing. The many offers to meet great CEO and other candidates are usually gently rebuffed.
What this means for you: You can’t force your way to the party. If you’re going to be invited, you will be. Your brand was made long before this moment, so relax and keep doing your best, it’s all you can do.
4. Never surprise a powerful person
Musk only veers from polite noncommittal three times. Two of those are with overzealous friends who are ‘proactively’ trying to help where he doesn’t need it. Jason Calacanis peppers Musk with advice for weeks, before being asked “what’s going on with you marketing an SPV to randos? This is not ok.” Then later “Please stop.”
What this means for you: Calacanis was fundraising when Musk neither needed nor asked him to. It made Musk look bad and had no upside for Musk. A good rule is never surprise your boss. They’re likely already on it and you’re more likely to ruin it than crush it.
5. Everyone already has an agenda
Everyone is bringing Musk information, from every angle. Dorsey has been vocal about the dysfunction of the Twitter board in the past and laments the only way to build what he wants is to leave. When Musk starts to talk to Bret Taylor, the chairman, and Parag Agrawal, the CEO, about joining the board, Dorsey reaches out to share information.
What this means for you: Prominent people have to pass all information through the lens of “what do you gain by telling me this.” There are always more back channels than you realize, and powerful people have information delivered to them as favors. They will always know more than you.
6. Important decisions are made out of office
The initial conference where it’s decided Musk will join the board happens at an Airbnb with goats on it near the airport. Everything important is said at that meeting between Musk, Taylor and Agrawal. After that, most of the texts are just getting paperwork done.
What this means for you: Work being done outside the office is not a bug, it’s a feature. Both have to happen to make a deal go through because only out of the office can you really build relationships of trust.
7. Culture is more important than ability
The relationship between Agrawal and Musk starts well. They bond over being engineers. Then Agrawal says “Next time we speak, I’d like to provide you perspective on the level of internal distraction right now and how it’s hurting our ability to do work.” Musk responds “What did you get done this week? I’m not joining the board, this is a waste of time.”
What this means for you: Recognize sometimes it only takes a sentence to show your style and agenda. In one brief exchange Musk knows Agrawal will slow down anything Musk wants to do and the two have drastically different risk profiles. This is common.
8. Relationships make the world go round
After saying and showing he will not work with Agrawal, Musk offers to take Twitter private. Later Dorsey pulls Agrawal back into a meeting with Musk, which Musk takes, to discuss how to refocus the engineering teams. Dorsey says he’s glad the two can work together. Musk says “yeah.”
What this means for you: Alignment, usefulness, and friendship are different things that all powerful people use independently and which most junior people conflate. Just because you can’t work together on one thing, doesn’t mean you won’t on another. People can be useful to a mission but opposed in other ways.
9. The board was wrong and right about Musk
Dorsey, who in the texts says “the board is terrible” had previously suggested Musk for a seat, but had been rebuffed. Later, the idea gets traction and Musk gets put on the board. 24 hours after the very public announcement of his appointment, Musk leaves in an absolute PR disaster for the public company. Taylor is frantic.
What this means for you: Stick to your guns when you know something is right for you. Also, most people underestimate the huge effect a board has on a company and look to the CEO. Remember, the board anoint the strategy.