How Nvidia Built a 17 Trillion Company by Breaking EVERY Rule
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How Nvidia Built a $1.7 Trillion Company by Breaking EVERY Rule

ByAI Leila

Summary

  • Jensen Huang’s leadership at Nvidia showcases the power of transparency, moving away from secrecy. I applied a similar approach at Gym Launch by teaching the entire team how to read a P&L, which fostered a sense of ownership and a better understanding of the business.

  • Transition from one-on-one to one-to-many communication. As companies grow, this change ensures clarity for many, rather than addressing similar questions repeatedly in one-on-one settings.

  • Assess and reduce your one-on-one meetings. Opt for group meetings and train your team collectively, especially in larger companies, for greater efficiency.

  • Consider flat team structures for faster movement. Jensen managed over 50 direct reports, keeping fewer layers between himself and staff, thus fostering alignment and informed teams.

  • Understand delegation levels and employ level four, or complete ownership, for experienced hires. This requires trusting them with full responsibility, enhancing autonomy and reducing managerial bottlenecks.

  • Evaluate the usefulness of your managers. They should simplify your role by providing more transparency and making the business easier to run, not harder.

  • Keep communication lines open, like with Nvidia’s top five system, where any employee can directly share their insights with the CEO. This ensures an informed leadership that can act promptly.

  • Abandon rigid long-term planning. Instead, adopt continuous planning to stay agile and responsive to market and technological changes, just like Nvidia’s pivot to AI after recognizing its potential.

  • Reassess company priorities frequently. Shorten feedback loops to adapt business strategies quickly, guided by the real-time needs of your customers and market shifts.

  • Set high standards and lead by example. I emphasize the importance of leading through action, demonstrating work ethic and dedication to inspire the team to follow suit.

  • Cultivate a culture aligning with growth and excellence, not just comfort. Encourage and challenge teams to achieve extraordinary results, like Nvidia does with its demanding yet resource-rich work environment.

  • Overall, foster a fast-moving, lean, and talent-attractive culture. Nvidia excels by prioritizing efficient operations, minimal bureaucratic obstacles, and positioning itself as a pioneer in groundbreaking technology domains.

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How To Take Action

I would suggest implementing transparency in your business operations. Start by teaching your team how to read a P&L. This fosters ownership and understanding. Gather your managers or team and show them how the business numbers work. This can help everyone feel more responsible for your business's success.

A good way to transition is to move from one-on-one to group communication. Instead of individual meetings, have group meetings where everyone can learn together. This saves time and spreads knowledge more efficiently. If you're repeatedly answering the same questions in individual meetings, it's time to gather everyone for a group session.

Consider flattening your team's structure. Like Jensen Huang, try fewer layers in your company. Direct communication can speed up how your business moves and makes decisions. While you might not manage 50 people at once, stay closer to the core team that's critical to your products or services.

For delegation, trust your experienced employees with more responsibility. Give them full ownership of their tasks. If they are capable, let them handle things without constant check-ins. This enhances autonomy and reduces bottlenecks.

To keep everybody aligning with the company’s vision, maintain open communication channels. Encourage your team to share insights directly with you. This helps in making quick and informed decisions.

Finally, practice continuous planning. Abandon rigid long-term plans and reassess your priorities frequently. Understand that your customer's needs can change rapidly. Stay flexible and adapt your strategies to meet these needs, ensuring you remain competitive and responsive.

Lead by example through hard work and setting high standards. Your actions can inspire your team to meet these expectations, fostering a culture of growth and excellence.

Quotes by Leila Hormozi

"If your team spends more time managing relationships to get information than doing the actual work you probably have a transparency problem"

– Leila Hormozi

"Flat teams move faster"

– Leila Hormozi

"A great question to ask yourself is, if somebody in your company makes a mistake, does the whole team learn or does just that person learn"

– Leila Hormozi

"Speed without truth is chaos"

– Leila Hormozi

"Move fast by keeping information flowing so everybody from interns to executives get access to the same truth at the same time"

– Leila Hormozi

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