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NVIDIA's CEO, Jensen Huang, has a unique approach to leadership that defies conventional wisdom. Instead of a small, tightly-knit leadership team, Huang has 60 direct reports. While this might seem unmanageable to some, Huang is certain it's the best practice.
The Unconventional Practice
In most companies, having 60 direct reports is unheard of. Traditional management practices recommend a smaller number of direct reports to ensure effective communication and control. However, Huang believes in transparency and equal access to information for all his senior staff.
No One-on-Ones
Huang doesn't hold one-on-one meetings. Instead, he addresses all 60 direct reports at once.
"Almost everything that I say, I say to everybody all at the same time"
This practice ensures that everyone is on the same page, working off the same information and directives.
Transparency and Equality
Huang’s philosophy is based on the belief that no information should be privileged or restricted to a few. He openly shares the challenges the company faces, the problems he's trying to solve, and the direction they are headed. This transparency fosters a collaborative environment where everyone can contribute to finding solutions.
Empowering the Team
By giving everyone equal access to information, Huang empowers his team. He believes that when all 60 people hear the reasoning behind problems and solutions, they are better equipped to contribute effectively. This open communication ensures that everyone is aligned and motivated to work towards common goals.
Flattening the Hierarchy
Another significant benefit of this approach is the reduction in organizational layers. With 60 direct reports, the number of hierarchical layers is reduced, making the company more agile and responsive. This flatter structure allows for quicker decision-making and a more dynamic work environment.
Conclusion
Jensen Huang's leadership style is a bold departure from conventional practices. By having 60 direct reports, he fosters a culture of transparency, equality, and empowerment. This approach not only ensures that everyone is informed and aligned but also flattens the organizational hierarchy, making NVIDIA more agile and responsive. Huang's unconventional leadership demonstrates that sometimes, breaking the rules can lead to greater success.
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