Writing · AI / Automation / Tech
What LEGO’s Turnaround and Elon’s Factory Disaster Have in Common:These 5 Steps
“Automate is the last step because I used to do that first.”
That’s Elon admitting what the lesson cost him.
His original Tesla vision was full automation. Robots everywhere. No humans on the floor. It nearly killed the company. They hadn’t questioned the requirements. Hadn’t deleted unnecessary parts. Hadn’t simplified the design.
The robots just produced waste at superhuman speed.
Efficient waste is still waste.
LEGO avoided this mistake. Mostly by accident.
LEGO Ideas, the fan platform where people submit and vote on set designs, launched after the simplification work was done. Fans submit. Community votes. Winners get produced. It automated the hardest, most expensive part of the toy business: figuring out what to build next.
If that platform launched in 2003, it would have amplified every problem they’d just spent two years fixing. Fan designs would have required custom pieces that broke manufacturing. Voting would have scattered across a dozen unrelated categories.
After simplification, the same idea became a self-correcting design pipeline. Constraints meant fan designs were buildable. A focused brand meant fans understood what LEGO was.
If you run a business and you’re looking at AI automation right now, you’re facing the same decision Tesla faced.
Every role in your company is a series of tasks. AI agents can now handle chunks of that work. The temptation is to start there.
Before you automate a single workflow, run the algorithm. Do you even need this process? Delete it if you don’t. Simplify what remains. Reduce the friction.
Automation and acceleration aren’t separate steps in practice. Automating a process almost always speeds it up. Which is exactly why automating too early is so dangerous. You get speed and scale pointed at a process that shouldn’t exist.
Five steps. Always in order. Question. Delete. Simplify. Accelerate. Automate.
Knudstorp never read Elon’s playbook. Musk never studied the LEGO turnaround. They arrived at the same system independently.
What process are you about to automate that you haven’t run through Steps 1 through 4 yet?