Different parts of the CPU do these different things. Often it is possible to run some steps from different instructions at the same time, which makes the CPU faster. For example, we can read an instruction from memory at the same time that we decode another instruction, since those steps use different modules. This can be thought of as having many instructions "inside the pipeline" at once. In the best case, all of the modules are working on different instructions at once, but this is not always possible.