Alibaba co-founder Joe Tsai reveals two key traits of exceptional employees

Innovation can be challenging for established companies, but Alibaba's cofounder and chairman believes instilling two key values in employees can make a difference.

"There have been times when our innovation stalled, and as a large company, we faced the consequences," Joe Tsai explained in an interview with Stanford University released on Wednesday. 

"Individuals have specific roles, making it a challenge to encourage forward-thinking innovation."

Creating a dedicated innovation team isn't the answer, suggested Tsai, who was part of the Chinese e-commerce firm's founding team in 1999.

"One necessity is to foster a sense of ownership in employees," he stated.

"It's not about working for their manager. Everyone should work for their clientele," he remarked, citing a saying by the company's former CEO, Jack Ma.

The principle is to prioritise customer satisfaction over pleasing supervisors and to begin considering future customer needs, Tsai mentioned.

Being agile is another key trait for innovation, particularly vital in the tech industry where there is often an "information shortage."

"You have to accept incomplete information, make a decision, and stick to it," he stated. "If it turns out that you're mistaken, quickly change direction."

The technology titan has seen a massive revival over the past couple of years, propelled by AI advancements and overhauling its e-commerce operations.

During an earnings call late last year, Alibaba's CEO, Eddie Wu, downplayed concerns of an AI bubble, stating clear intentions to fully invest in the technology.

"We can't even meet the rising customer demand," Wu said, noting that in the next few years, AI capabilities will remain scarce.

According to Wu, the demand surge is driven by genuine AI application across various economic sectors.