An Nvidia Key to Success: Don’t Fire People

Jensen Huang, co-founder and CEO of Nvidia, is a certified genius and extreme workaholic in the same mold as Elon Musk. Huang was destined to succeed wildly in whatever career path he followed.

Yet would Nvidia boast a $2.2 trillion market value and dominate high-performance computing if Huang didn’t excel at motivating and trusting people? The answer is “no” — but don’t take our word for it. Huang is the first person to credit the many talented and loyal Nvidia employees, some who’ve worked for him since the 1990s, for the company’s success.

“I’m surrounded by 60 people [direct reports] that are doing smart things all the time,” Huang told attendees at the Stripe Sessions in San Francisco in April. “They probably don’t realize it, but I’m learning constantly from every single one of them.”

Not everyone can revolutionize the AI and tech sectors like Huang obviously. But CEOs and CFOs can — and maybe should — borrow a few pages from the Nvidia founder’s management playbook. Like Musk and Jeff Bezos, Huang takes on more oversight duties than the average chief exec.

Nvidia succeeds in great part due to its culture and Huang’s beliefs. Here are three:

1. Avoid Firing People At All Costs

Huang is well-known for “rarely” firing people, according to multiple interviews he’s given and by long-time Nvidia staffers. A no-fire policy only works at companies that don’t over-hire, strive to find the best fits and value talent.

2. Manage More People and Grow Leaders

As recently as two years ago, 40 Nvidia senior leaders reported to Huang, an astronomically high number for a CEO. Now he’s got 60 people who report to him. How does he do it?

“I don’t believe in a culture, in an environment, where the information you possess is the reason why you have power,” Huang told Business Insider. He typically meets with all his reports as a group, once a week. Feedback is given in front of the group rather than one-on-one so everyone understands next steps and can get back to their work.

3. Make Meetings Open to All

Entry-level employees to VPs are encourage to attend meetings. No one is shut out. Huang believes in — and actively encourages — a learning environment.

Bottom line: Trust is crucial in any great company that great people want to work for. Trust must start at the top before those at the ground level give it back.