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Five things I have learned from Grove

(via Yahoo) Richard Tedlow’s new biography of Andy Grove has a thoughtful subtitle: “The Life and Times of an American.” Our brains have been conditioned to expect one more oversaturated word at the end of phrases like that: American hero, American journey, American icon. But Tedlow, a Harvard Business School professor, does us a favor with his understatement, reminding us that Grove was ordinary before he was extraordinary.

The Five Learnings

The most enduring power comes from knowledge, not from status. Grove is legendary for gathering data until he has his brain around a problem, then making a decision based on what the data tell him. Throughout his life, that has given him the confidence (and, occasionally, the arrogance) to excel in a foreign country, choose a career that was out of the mainstream at the time, and challenge some of the biggest names in business. Perhaps more famously, it helped him choose his own treatment when he got prostate cancer in the 1990s. Grove studied outcomes data for various kinds of treatment and ultimately chose radiation therapy?based on facts he found in the data?even though most doctors recommended surgery.

Knowledge helps you know when it’s time to change. The most pivotal moment at Intel came in 1986, after a decade of spectacular growth and profitability. Japanese manufacturers had started gobbling up market share for memory devices, Intel’s specialty up till then, which led that year to the company’s first major loss. Grove became CEO in 1987 and promptly made the decision that Intel needed to become a microprocessor company, not a memory company. Profits bounced back in 1987, and another decade of record growth followed.

Certainty is deadly. “Andy doubts constantly,” Tedlow says. Grove is well known for driving subordinates ruthlessly?but helping them get it right in the end. And Tedlow insists that Grove challenges his own assumptions as rigorously as those of others. When it finally comes time to make a decision, Grove likes to say, “Dive deeply into the data, then trust your gut.”

Fear is highly motivating. Grove earned his maverick reputation for, among other things, challenging W. Edward Deming’s maxim that good managers should banish fear from their organizations. “That’s absolutely wrong,” Grove has said. “I want fear in my executives.” But he also recognizes the vast difference between the kind of fear necessary to survive in a Darwinian world?described in his own book, Only the Paranoid Survive?and the petty intimidation practiced by insecure managers. The fear that Grove wants his employees to feel is the fear of lurking problems you can’t yet see, of cutthroat competitors, of somebody with a better idea. Whether Grove is right or wrong, Tedlow points out that fear has been a powerful force in his life since the beginning: “If he wasn’t paranoid in the first 20 years of his life, he would not have survived.”

Even geniuses make mistakes. Grove blew it, Tedlow says, in 1994 when a scientist at Lynchburg College in Virginia found a flaw in the brand-new Pentium processor. At the precise moment that Intel was becoming feared and disliked for aggressively cornering the market for microprocessors, Grove chose to have a public, technical argument with his critics. What he should have done, Tedlow insists, is issue a prompt apology and pledge to replace every Pentium. To Tedlow, the huge controversy that mushroomed showed that Grove erred twice: He failed to understand the power of the emerging Internet to rapidly disseminate information, and he failed to realize that Intel had become a consumer-products company answerable to everyday consumers.

Tell ya what, Andy: I’ll overlook that one. Just don’t let it happen again.

2 thoughts on “Five things I have learned from Grove”

  1. One has to learn out of the mistakes, if he does not, he will not grow.

    Perhaps this incident what tedlow has narrated made intel afterwords to take back the defective Chips ( or mircoprocessors), from the market, with no questions asked and make it into key chains and distribute as
    complements.

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