R&D Management 15 min read

Why Successful Companies Are Not Tolerant: The Role of Strict Management in Business Success

The article argues that tolerance in management leads to failure, illustrating three fatal problems—excessive leniency, pretended high status, and lack of overtime—and shows how strict, results‑driven cultures at firms like Google, Tencent, and others create sustainable competitive advantage.

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Why Successful Companies Are Not Tolerant: The Role of Strict Management in Business Success

1. The three problems that ruin companies: excessive tolerance, pretended high‑status, and no overtime except for the boss

A founder recounts a failed startup that lost market share because the R&D lead was too lenient, the company hired high‑salary staff without proper KPI management, and the team lacked a fighting spirit, resulting in slow product iteration.

2. Successful companies are not tolerant

Contrary to popular belief, firms like Google and Tencent appear tolerant only on the surface; in reality they enforce rigorous hiring processes, strict OKR systems, and high performance standards, rewarding only the most capable and disciplined employees.

3. Only the boss fights alone

Owners face dual pressures: rising labor costs and the asymmetry between employer goals and employee motivations, leading to situations where the boss works hard while employees seek comfort, highlighting the need for strict management to align incentives.

4. Success requires a "fighting culture"

The article defines a successful culture as one that rejects "rabbit‑hole" complacency and embraces continuous competition, responsibility, delayed gratification, self‑discipline, perseverance, pragmatism, and rapid innovation.

5. A boss who is not tolerant is not exploiting employees but recognizing their lack of excellence

Examples of complaints about harsh managers are examined; the author shows that performance‑based criticism and disciplined oversight are essential for employee growth and organizational health.

6. Constructive criticism is a form of caring

Strict feedback is presented as a preventive measure that protects the team and the company, illustrated by cases from leaders like Ren Zhengfei and Dong Mingzhu.

7. Personal tolerance is fine, but work tolerance is not

The author stresses that while personal forgiveness is acceptable, managers must not tolerate poor performance, as it harms shareholders, users, and the broader community.

8. The essence of management is intolerance

Effective management demands uncompromising standards, market‑driven pressure, and a culture that eliminates complacency, ensuring both the company and its employees achieve true freedom through disciplined effort.

leadershipmanagementproductivitycompany culturestrictness
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