Introduction
Hi everyone,
This is an article about Jensen Huang’s management philosophy.
In October 2023, Blind, a popular platform for professionals to share gossip, released a CEO approval rating survey. The survey targeted verified employees of specific companies, asking, “Do you agree that your company’s CEO is doing a good job?”
Nvidia’s Jensen Huang topped the list with an astonishing 96% employee approval rating. In contrast, the overall average approval rating was 32%, making Huang’s achievement even more remarkable given that most employees view their bosses unfavorably.
For reference, Tesla’s Elon Musk received 38% approval, and Meta’s Mark Zuckerberg got 45%.
If you find this issue’s content interesting, feel free to share this email with your friends or invite them to subscribe; if you’re interested in past issues, please click here.
Any clicks or new subscriptions motivate me to write the next issue. If you have any feedback, thoughts, or topics you’d like to discuss, reply to this email—I’ll read it carefully!
Managing a Company
Managing a company ranked among the top five in the U.S., with a $2 trillion valuation and 30,000 employees, is a fascinating challenge. Let’s explore this article to gain deeper insight into Jensen Huang’s management philosophy.
An Important “No” in Jensen Huang’s Management
“There will be no information or instructions known only to one senior manager and not to others” – Jensen Huang
Huang directly oversees 55 senior managers and insists on not issuing instructions or sharing information with any single senior manager individually. His goal is to ensure information flows as quickly as possible. If he were to share information or give instructions to just one senior manager, it would limit that information to one or a few individuals. This creates an information gap, potentially granting privilege (in terms of information, organization, or management) to those in the know. Huang’s management philosophy deviates from traditional models.
The traditional management model, derived from the military, emphasizes top-down orders and obedience, enabling frontline soldiers to charge forward blindly and die on the battlefield. When a few hold privileged information, “commands” or “orders” can be executed faster and more effectively, while those without information remain unaware of the dangers ahead, allowing them to charge obediently.
Reflecting on my own military service, soldiers were neither encouraged nor expected to ask why—“Just do it; there are considerations higher up.” As a low-ranking soldier, the key was to act swiftly and accurately, with superiors providing information only to those who needed to know. This created information gaps and privileges.
Beyond the military, most corporate management layers also use this traditional model, limiting critical information to a select few or confidants to quickly establish authority and build factions.
Transparency in Information Flow May Make One Look Foolish
Huang specifically notes that choosing to discuss his ideas and explain his decisions and thought processes with all managers might make him appear very foolish. The safest way to protect one’s dignity when an idea’s viability is uncertain is to discuss it with one person first, refining it before sharing with the group.
However, Huang insists on transparent circulation of information and his own ideas. Thus, whenever he has a thought—however uncertain or potentially foolish—he communicates it to all senior managers. Even if he risks looking foolish in large meetings, he prioritizes transparent information flow.
The Manager’s Role Is to Serve Others and Create Conditions
For Huang, the purpose of management is “to serve everyone else in the company; managers must create conditions that attract talent to work for you.” When these talents choose Nvidia over other world-class tech companies, it gives Huang a mission: to create conditions enabling them to pursue their life’s work.
To create these conditions, Huang believes in freely circulating information, ensuring employees have ample data to make decisions. This empowers them. Only when employees understand the situation can they be empowered and propose great ideas. Positions and management roles within the company are not tied to controlling information but to the ability to solve complex problems, lead others to greatness, inspire, empower, and support them.
Huang says his employees often make smart decisions because they understand his circumstances, thanks to his transparency and trust in their ability to handle this information.
Reflection
As I’ve experienced more, I’ve come to deeply appreciate how unique Huang’s management style is. Using information gaps and asymmetry to ensure employee compliance is an easy path. However, Huang’s approach of freely sharing information transparently is a harder, more admirable road.
We won't send you spam. Unsubscribe at any time.
Source: https://hungkaichuang.com/decisionposition016_jensen-huang-management-philosophy/