Nvidia's CEO, Jensen Huang, acknowledges being a tough boss and has no regrets. In a recent 60 Minutes interview, employees at the Santa Clara headquarters described him as demanding, a perfectionist, and not easy to work for.
Huang, who co-founded the chipmaker in 1993, now worth over $2 trillion, agreed that these descriptions fit him perfectly. He explained to Whitaker that achieving extraordinary things should not be easy. He previously told CNBC that he manages 50 direct reports to prevent unnecessary layers of management. In contrast, most CEOs have around 10, expecting senior executives to work independently with minimal guidance and pampering.
Huang's Cutthroat Approach Seems to Be Working Well
In the age of empathetic leadership, Huang's tactics might be controversial. However, experts argue that being relentless is necessary to run one of the largest companies in the world. Wladislaw Rivkin, an associate professor of organizational behavior at Trinity Business School, noted that Huang's approach is somewhat cutthroat. Still, it is part of leading a trillion-dollar company that has undergone a rigorous selection process, given the many tech companies valued in the billions or trillions.
While many smaller companies have gone bankrupt, NVIDIA has survived due to its resilience. Huang's tenure in Silicon Valley has also lasted over three decades, which Sankalp Chaturvedi, a professor of organizational behavior and leadership at Imperial College Business School, describes as quite rare. Workers at a high-profile company like NVIDIA typically have other options, but their choice to stay as long as possible suggests that Huang is doing something right.
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NVIDIA Being Run Like a Machine
Behavioral experts told CNBC that Huang's immigrant background has influenced his leadership style.
Born in Taiwan in 1963, Huang was sent to the US by his parents at nine years old, despite not speaking English, where he endured relentless bullying at a boarding school, according to a New Yorker profile, and worked part-time jobs, including washing dishes at Denny's and cleaning toilets as a teenager.
Rivkin noted that Huang now exhibits a task-oriented leadership style, emphasizing achieving goals, setting high standards, and monitoring performance. This approach reflects an immigrant background and work ethic, where hard work is believed to be essential for success. Rivkin further stated that task-oriented leaders can be effective because they push their employees to excel.
Chaturvedi explained that Huang's experience of having to fight it out from a young age suggests a preference for exerting a high degree of control over every aspect of the company. Huang understands his organization as a machine, thinking about plans, thinking about economics. While this approach has proven successful over the years, Chaturvedi suggested that Huang may have overlooked other important leadership traits.
Empathetic Leadership Might Just Be Demanding
Experts believe that Huang's leadership style could be improved. Rivkin suggests that focusing on people's well-being and recognizing them as individuals, not just workers, should be considered. However, Chaturvedi pointed out that being a people-focused leader and meeting workers' needs might be demanding, which could involve remembering names and maintaining relationships with many individuals.
Rivkin explained that being task-oriented requires less energy because you establish the task, deadline, and milestones and verify the progress without being concerned about who is actually doing the work.
Huang's cutthroat leadership style has been effective thus far because there is always a stream of talented individuals seeking opportunities at the company. However, Rivkin cautioned that if a company struggles to attract skilled employees, which is common in the market, leading with such a ruthless style could be challenging, where talented individuals with options may seek opportunities elsewhere.
