10% Add-Back Rule
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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
- Question the requirements first
- Delete/remove elements
- Simplify what remains
- 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: 44:36SP
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.