Elon Musk is running seven companies and growing them at an incredible pace. Then there’s a lot if us… feeling stagnant in business- BUT there’s a process inspired by Musk’s methods that can help you improve every single year. This process can make your business 37 times better in just one year. Here’s how:

The Power of Compounding

Compounding is a powerful concept. If you improve by just 1% every day, your business, yourself, and your life will be 37.78 times better in one year. BUT, if you get 1% worse every day, you could end up at a mere 0.03 (business dies). The truth is, many days we fluctuate between being fine, worse, or better. The key is to be intentional about getting better every day.

Introducing the Process

This process is simple yet effective, and it’s used by military leaders and top CEOs to ensure continuous improvement. It consists of three steps:

1. Pre-action review
2. During action process
3. After action review

Step 1: Pre-Action Review

Before starting any initiative, conduct a pre-action review. This step sets the stage for success. Here’s how to do it:

• Set Clear Expectations: Define the outcomes you want to achieve.
• Identify Obstacles: Anticipate what might get in your way.
• Determine Resources: Know what resources you have available.
• Define Success Metrics: Establish objective measures of success.
• Outline Ongoing Metrics: Decide how you’ll measure success after completion.

For example, when SpaceX prepares for a Falcon 9 launch, they define their desired outcomes, list potential obstacles, and outline the resources available.

Step 2: During Action Process

While executing your plan, focus on three key areas:

• Observation Points: Track what’s working and what isn’t.
• Communication: Ensure clear communication among team members and stakeholders.
• Measurement and Logging: Keep track of data and metrics to inform future actions.

Even during the action, it’s normal to make mistakes. The important part is to learn from them and improve for the next time.

Step 3: After Action Review

After completing a project, conduct an after-action review to reflect and improve. Focus on:

• Outcome vs. Goal: Compare the actual outcomes with your initial goals.
• Successes: Celebrate what went well and recognize your team’s efforts.
• Areas for Improvement: Identify what could have been done better.
• Metric Review: Ensure you have the right metrics and data to inform your next steps.

For instance, if a Falcon 9 launch doesn’t go as planned, SpaceX uses the data gathered to improve their processes and avoid similar issues in the future.

What To Do Next

This three-step process may seem simple, but it’s how you can achieve continuous improvement. Commit to repeating these steps regularly, and you can expect significant growth over time. If you want to explore how to apply scientific methods to scale your business, check out more resources on my website.

For further learning, grab a copy of my book, The Business Unlock, which dives deeper into these concepts. You can also find more resources and training on the CEO Workbench.