10% Add-Back Rule

Elon Musk's 10% add-back rule is a principle for optimizing systems through aggressive removal of elements, with a built-in feedback mechanism to ensure proper calibration.

Core Concept

  • If you're not adding back removed elements at least 10% of the time, you haven't been aggressive enough in removing things
  • Similar to goal-setting where hitting 100% means goals weren't ambitious enough
  • Aims to overcome natural human tendency to hoard and resist removal

Why It Works

  • Humans are natural hoarders due to limbic system wiring
  • People remember the one time they needed something they removed
  • This memory causes overcorrection and future hesitation to remove things
  • Setting a 10% add-back target helps override this natural bias

Examples of Success

  • iPhone removed multiple core features successfully:
    • Physical keyboard
    • Home button
    • Headphone port
  • Best companies consistently remove features/elements
  • Similar to Amazon's 70% goal-hitting philosophy:
    • Want to hit 70% of goals
    • 100% means too cautious
    • 0% means too unrealistic

Implementation Process

  1. Question the requirements first
  2. Delete/remove elements
  3. Simplify what remains
  4. Automate last
  • Common mistake: Starting with automation before questioning requirements

Cautions

  • Can be challenging to implement due to resistance
  • People often react negatively to removal
  • Need to overcome "if it's working, why break it" mentality
  • Must be willing to occasionally be wrong and add things back
38:21 - 38:57
Full video: 44:36
SP

Shaan Puri

Host of MFM

Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.

WebsiteTwitter
Host
Restaurateur
E-commerce