Tesla and SpaceX founder Elon Musk says the biggest problem with corporate America today is that too many business school graduates are running the show.
“I think that there might be too many MBAs running companies,” Musk said Tuesday at the WSJ CEO Summit.
This “MBA-ization of America,” isn’t great, Musk said, especially when it comes to product innovation. Big corporate CEOs often get caught up in the numbers and lose sight of their mission, which is to create “awesome” products or services, according to Musk.
“There should be more focus on the product or service itself, less time on board meetings, less time on financials.”
“A company has no value in itself. It only has value to the degree that is [an] effective allocator of resources to create business services that are of a greater value than the costs of the inputs,” Musk said.
This thing they call “profit,” Musk added, “should just mean over time that the value of the output is worth more than the inputs.”