Open main menu
Home
Random
Recent changes
Special pages
Community portal
Preferences
About Wikipedia
Disclaimers
Incubator escapee wiki
Search
User menu
Talk
Dark mode
Contributions
Create account
Log in
Editing
Andrew Grove
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
===Management methods and style=== {{quote box|align=right|width=25em|bgcolor = Cornsilk|quote=Probably no one person has had a greater influence in shaping Intel, Silicon Valley, and all we think about today in the technology world than Andy Grove.|source=[[Pat Gelsinger]], CEO of [[VMware]], and later CEO of Intel<ref>[https://www.wsj.com/articles/former-intel-ceo-andy-grove-dies-at-79-1458609251 "Former Intel CEO Andy Grove Dies at 79"] {{Webarchive|url=https://web.archive.org/web/20170101131248/http://www.wsj.com/articles/former-intel-ceo-andy-grove-dies-at-79-1458609251 |date=January 1, 2017 }}, ''Wall Street Journal'', March 22, 2016.</ref>}} As director of operations, manufacturing became Grove's primary focus and his management style relied heavily on his management concepts. As the company expanded and he was appointed chairman, Grove became more involved in strategic decision-making, including establishing markets for new products, coordinating manufacturing processes and developing new partnerships with smaller companies. Grove helped create the [[Intel Architecture Laboratory]] (IAL) in [[Oregon]] to ensure that software was developed in time to take advantage of their new microprocessors. Grove stated that "you are making decisions about what the information technology world will want five years into the future."<ref name=IW/> ==== Only the Paranoid Survive ==== {{quote box|align=right|width=25em|bgcolor = Cornsilk|quote=Business success contains the seeds of its own destruction. Success breeds complacency. Complacency breeds failure. Only the paranoid survive.|source=Andy Grove, former CEO of [[Intel]]<ref name=FT/><ref name=Grove1>Grove, Andrew. ''Only the Paranoid Survive'', Doubleday (1996).</ref><ref name=IW/> }} As CEO, he wanted his managers to always encourage experimentation and prepare for changes, making a case for the value of paranoia in business. He became known for his guiding motto: "Only the paranoid survive," and wrote a management book with the same title, published in 1996. As a result, he urged senior executives to allow people to test new techniques, new products, new sales channels, and new customers, to be ready for unexpected shifts in business or technology. Biographer Jeremy Byman observed that Grove "was the one person at Intel who refused to let the company rest on its laurels."<ref name=Byman>Byman, Jeremy. ''Andrew Grove and the Intel Corporation'', Morgan Reynolds (1999), p. 65.</ref> Grove explains his reasoning: <blockquote>A corporation is a living organism; it has to continue to shed its skin. Methods have to change. Focus has to change. Values have to change. The sum total of those changes is transformation.<ref name=Esquire/></blockquote> ==== Strategic inflection points ==== Grove popularized the concept of the "strategic inflection point," a crucial time that demands a major change in strategy due to shifts in the business environment. A company's growth depends on recognizing and effectively navigating these points.<ref name=Burgelman>{{cite journal |url=https://hbr.org/2016/03/remembering-andy-grove-the-teacher |title=Remembering Andy Grove, the Teacher |last=Burgelman |first=Robert A. |date=March 23, 2016 |journal=Harvard Business Review |access-date=February 5, 2023 |quote=By 2016, concepts such as "strategic inflection point" and "strategic dissonance" have become part of the lexicon both in academia and in practice.}}</ref> Strategic inflection points cause a mismatch between a company's current strategies and changes in the industry, something Grove called strategic dissonance.<ref name=Burgelman/> "To overcome this, the dissonance must be resolved by aligning the company's strategies with the new reality, requiring proactive and adaptive leadership that continually assesses and adjusts the company's strategies to keep pace with shifts in the business environment," taught Grove.<ref name=Stanford>{{cite web |url=https://www.gsb.stanford.edu/faculty-research/working-papers/strategic-dissonance |title=Strategic Dissonance |last1=Burgelman |first1=Robert A. |last2=Grove |first2=Andrew |date=1995 |website=Stanford Graduate School of Business |publisher=Stanford University |access-date=February 5, 2023 |quote=Strategic inflection points generate strategic dissonance in the organization because they are associated with divergences between the basis of competition and the firm’s distinctive competence, and between top management’s strategic intent and strategic action.}}</ref> Grove believed that the role of [[Cassandra (metaphor)#Corporate world|Helpful Cassandras]], individuals who raise red flags about potential problems and challenge the dominant view, are crucial in identifying and mitigating risks before they become bigger issues. He emphasized the importance of organizations listening to the warnings of Cassandras and taking action, instead of ignoring or suppressing them, in order to identify and successfully address strategic inflection points.<ref>{{cite web |url=https://www.intel.com/pressroom/archive/speeches/ag080998.htm |title=Academy of Management, Annual Meeting |last=Grove |first=Andy |date=August 9, 1998 |website=Intel Keynote Transcript |publisher=Intel |access-date=February 6, 2023 |quote=They have to bring you bad news and be Cassandras against the senior management, against the fear of management of repercussions.}}</ref> ==== Competitive mindset ==== Grove had a strong competitive mindset, viewing competition as the key driver of innovation and progress. He encouraged companies to aim for industry leadership and constantly seek ways to improve their offerings, processes and operations. He likened himself to a coach and viewed the manager's role as one of fueling employee motivation to excel.<ref name=Stanford/><ref name=Mercury>{{cite web |url=https://www.mercurynews.com/2014/07/24/1986-at-work-with-the-valleys-toughest-boss-intels-andy-grove/ |title=At work with the valley's toughest boss, Intel's Andy Grove |last=Schmitt |first=Christopher H. |date=May 26, 1986 |website=The Mercury News |access-date=February 6, 2023 |quote=He likens himself to a coach, whose job is to get a job done, and not necessarily to win any popularity contests. “Coaches are not known to be coddling their players, but they do it for a purpose,” he said. “When it comes to certain things, I’m not very easy-going.”}}</ref> He believed "good fear" could play a productive role.<ref>{{cite web |url=https://www.edbatista.com/2022/04/andy-grove-on-the-right-kind-of-fear.html |title=Andy Grove on the Right Kind of Fear |last=Batista |first=Ed |date=April 10, 2022 |website=EdBatista.com |publisher=Ed Batista |access-date=February 5, 2023 |quote=Andy Grove believed that a particular kind of fear can actually play a productive role in organizational life--the fear of losing.}}</ref><ref name=FT>{{cite web |url=https://www.ft.com/content/4c84d2e8-fa5f-11e5-8f41-df5bda8beb40 |title=Intel's Andy Grove and the difference between good and bad fear |last=Ibarra |first=Herminia |date=April 11, 2016 |website=Financial Times |access-date=February 6, 2023}}</ref> <blockquote>"The quality guru [[W. Edwards Deming]] advocated stamping out fear in corporations. I have trouble with the simplemindedness of this dictum. The most important role of managers is to create an environment where people are passionately dedicated to winning in the marketplace. Fear plays a major role in creating and maintaining such passion. Fear of competition, fear of bankruptcy, fear of being wrong and fear of losing can all be powerful motivators."<ref>{{cite book |last=Rozenzweig |first=Phil |title=The Halo Effect: How Managers let Themselves be Deceived |year=2014 |publisher=Simon & Schuster |isbn=9781471137167}}</ref></blockquote> ==== Constructive confrontation ==== Grove fostered a culture of open communication where employees were encouraged to speak their minds in a "constructive confrontation" approach.<ref name=Crown/><ref name=FT/> "People here aren't afraid to speak up and debate with Andy,"<ref name=IW/> said Intel Senior VP Ron Whittier. According to Grove's successor at Intel, [[Craig Barrett (chief executive)|Craig Barrett]], "It's give and take, and anyone in the company can yell at him. He's not above it." Grove insisted that people be demanding on one another, which fostered an atmosphere of "ruthless intelligence."<ref name=Crown/> About that philosophy, writes business author Ken Goldstein, "you bought into it or got your walking papers."<ref>Goldstein, Ken. [http://goodmenproject.com/business-ethics-2/many-lessons-andy-grove-gmp/ "The Many Lessons of Andy Grove"] {{Webarchive|url=https://web.archive.org/web/20160427145733/http://goodmenproject.com/business-ethics-2/many-lessons-andy-grove-gmp/ |date=April 27, 2016 }}, ''[[The Good Men Project]]'', April 26, 2016.</ref> ==== Egalitarian ethos ==== Grove asserted that knowledge power surpasses positional power. He ingrained that philosophy in the workplace culture at Intel. "We argue about issues, not the people who advocate them."<ref name=Tedlow>{{cite web |url=https://hbswk.hbs.edu/item/the-history-and-influence-of-andy-grove |title=The History and Influence of Andy Grove |last=Silverthorne |first=Sean |date=October 29, 2006 |website=Harvard Business School |access-date=February 5, 2023}}</ref> As a testament to this ethos, there were no executive perks at Intel, including special dining rooms, washrooms, or parking spots.<ref>{{cite web |url=https://www.cbsnews.com/news/great-leaders-work-in-cubicles/ |title=Great Leaders Work in Cubicles |last=Tobak |first=Steve |date=June 18, 2010 |website=CBSnews.com |publisher=CBS News |access-date=February 5, 2023}}</ref> Grove's office was a standard {{convert|8|by|9|ft|abbr=on}} cubicle, reflecting his personal preference for an egalitarian atmosphere. Grove disliked "mahogany-paneled corner offices." "I've been living in cubicles since 1978—and it hasn't hurt a whole lot."<ref name=IW/> This accessibility made his workspace open to anyone who walked by. This workplace culture is a reflection of Grove's personal life, where he was known for his modesty and lack of pretense. He lived simply, without luxury cars or private planes, and was described by venture capitalist [[Arthur Rock]] as having "no airs."<ref name=Crown/> ==== Attention to detail ==== Grove was noted for making sure that important details were never missed, with one of his favorite sayings being, "[[the devil is in the details]]." Intel Vice President Dennis Carter states that "Andy is very disciplined, precise, and detail oriented.<ref name=IW/> According to ''[[Industry Week]]'' magazine, Grove feared that the "brilliance that sparked the creation of Intel" during its early years "might come to nothing if somebody didn't pay attention to details." Carter recalls that Grove would even correct his spelling errors despite English being his second language.<ref name=IW/>
Edit summary
(Briefly describe your changes)
By publishing changes, you agree to the
Terms of Use
, and you irrevocably agree to release your contribution under the
CC BY-SA 4.0 License
and the
GFDL
. You agree that a hyperlink or URL is sufficient attribution under the Creative Commons license.
Cancel
Editing help
(opens in new window)