In a rare insight into the inner workings of innovative companies, Jon McNeill, former president of Tesla and COO of Lyft, shared his 5-step formula for building innovative companies. Speaking at the World Business Forum in New York City, McNeill drew from his experience at Tesla, where he helped grow revenue from $2 billion to $20 billion in just 30 months.

McNeill's formula, dubbed "the algorithm" by Tesla CEO Elon Musk, emphasizes radical simplification and massive goals. The 5 steps are: question every requirement, delete unnecessary steps, simplify and optimize, apply speed, and automate at the end. McNeill also shared three cultural principles, including expanding the view to the entire customer journey, injecting urgency and accountability, and experiencing the product as the customer does.

McNeill's advice is particularly relevant for startups, which often struggle to innovate and scale. By following his 5-step formula, entrepreneurs can identify and tackle the most critical problems, simplify their processes, and accelerate their growth. As McNeill puts it, "The answer isn't 'No,' or 'It's crazy.' The answer in innovative communities is: 'I have no idea how to do that, but we'll try.'"