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= Andrew_Grove =
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Introduction
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Andrew "Andy" Stephen Grove (born Gróf András István; 2 September 1936
- 21 March 2016) was a Hungarian-American businessman and engineer who
served as the third CEO of Intel Corporation. He escaped from the
Hungarian People's Republic during the 1956 revolution at the age of
20 and moved to the United States, where he finished his education. He
was the third employee and eventual third CEO of Intel, transforming
the company into the world's largest semiconductor company.
As a result of his work at Intel, along with his books and
professional articles, Grove had a considerable influence on the
electronics manufacturing industries worldwide. He has been called the
"guy who drove the growth phase" of Silicon Valley. In 1997, 'Time'
magazine chose him as "Man of the Year", for being "the person most
responsible for the amazing growth in the power and the innovative
potential of microchips." One source notes that by his accomplishments
at Intel alone, he "merits a place alongside the great business
leaders of the 20th century."
Personal life and education
======================================================================
Grove was born as 'Gróf András István' to a middle-class Jewish family
in Budapest, Hungary, the son of Mária and György Gróf. At the age of
four he contracted scarlet fever, which was nearly fatal and caused
partial hearing loss.
When he was eight, the Nazis occupied Hungary and deported nearly
500,000 Jews to concentration camps, including Auschwitz. To avoid
being arrested, Grove and his mother took on false identities and were
sheltered by friends. His father, however, was arrested and taken to
an Eastern Labor Camp where he was severely tortured and forced to do
slave labor. The father was reunited with his family only after the
war.
During the Hungarian Revolution of 1956, when he was 20, he left his
home and family and escaped across the border into Austria. Penniless
and barely able to speak English, in 1957 he eventually made his way
to the United States. He later changed his name to the anglicized
Andrew S. Grove. Grove summarized his first twenty years of life in
Hungary in his memoirs:
Soon after arriving in the United States, in New York's Catskill
Resort, in 1957, he met his future wife, Eva Kastan, who was an
Austrian refugee. They met while he held a job as a busboy and she was
a waitress while studying at Hunter College. One year after they met,
in June 1958 they married in Queens, New York, in a Roman Catholic
ceremony. They remained married until Grove died. They had two
daughters, Karen Grove and Robie Livingstone, and eight grandchildren.
Even though he arrived in the United States with little money, Grove
retained a "passion for learning."
He earned a bachelor's degree in chemical engineering from the City
College of New York in 1960. 'The New York Times' stated that "a
refugee became a senior in engineering."
Grove attended and graduated with his Ph.D. in chemical engineering
from the University of California, Berkeley in 1963.
In 2000, he was diagnosed with Parkinson's disease; he became a
contributor to several foundations that sponsor research towards a
cure. He died at his home on March 21, 2016, at the age of 79; the
cause of death was not publicly disclosed.
Starting Intel
================
After completing his Ph.D. in 1963, Grove worked at Fairchild
Semiconductor as a researcher, and by 1967 had become its assistant
director of development. His work there made him familiar with the
early development of integrated circuits, which would lead to the
"microcomputer revolution" in the 1970s. In 1967, he wrote a college
textbook on the subject, 'Physics and Technology of Semiconductor
Devices.'
In 1968, Robert Noyce and Gordon Moore co-founded Intel, after they
and Grove left Fairchild Semiconductor. Grove joined on the day of its
incorporation, although he was not a founder. Fellow Hungarian émigré
Leslie L. Vadász was Intel's fourth employee. Grove worked initially
as the company's director of engineering, and helped get its early
manufacturing operations started. In 1983, he wrote a book, 'High
Output Management', in which he described many of his methods and
manufacturing concepts.
Initially, Intel primarily manufactured static memory chips for
mainframe computers, but in the early/mid-1970s Intel introduced one
of the earliest digital watches, an electronic calculator, and also
the world's first general-purpose microprocessor, the 4-bit 4004. By
1974 Intel had developed the 8-bit 8008 and quickly thereafter, in
1975, the 8080 processor, which would become the core of the Altair,
the world's first so-called PC (personal computer) which foreshadowed
the PC revolution. Soon came the 8086 16-bit microprocessor and a
cost-reduced version, the 8088, which IBM chose for its IBM PC which
brought personal computers to the masses. In 1985, Intel produced the
32-bit 80386 microprocessor which began a long line of increasingly
powerful microprocessors including the 80486, the Pentium, and a
plethora of supporting integrated circuits and computers built with
them.
Even though Intel had invented most of the types of memory in use at
the time including EPROM (Erasable Programmable Read-Only Memory), by
1985, with less demand for their memory chips due to the challenges
created by Japanese "dumping" of memory chips at below-cost prices,
Grove was forced to make radical changes. As a result, he chose to
discontinue producing DRAMs and focus instead on manufacturing
microprocessors. Grove, along with Intel's sales manager to IBM, Earl
Whetstone, played a key role in negotiating with IBM to use only Intel
microprocessors in all of their new personal computers.
The company's revenue increased from $2,672 in its first year (1968)
to $20.8 billion in 1997. Grove was appointed Intel's president in
1979, CEO in 1987, and then chairman of the board in 1997. In May 1998
Grove relinquished the post of CEO to Craig Barrett, as Grove had been
diagnosed with prostate cancer a few years earlier, though he remained
chairman until November 2004. Since then Grove remained at Intel as a
senior advisor, and has also been a lecturer at Stanford University.
He reflected back upon Intel's growth through the years:
Grove is credited with having transformed Intel from a manufacturer of
memory chips into the world's dominant producer of microprocessors for
PC, servers, and general-purpose computing. During his tenure as CEO,
Grove oversaw a 4,500% increase in Intel's market capitalization from
$4 billion to $197 billion, making it the world's 7th largest company,
with 64,000 employees. Most of the company's profits were reinvested
in research and development, along with building new facilities, in
order to produce improved and faster microprocessors.
Management methods and style
==============================
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."
Only the Paranoid Survive
===========================
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."
Grove explains his reasoning:
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.
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.
Strategic inflection points cause a mismatch between a company's
current strategies and changes in the industry, something Grove called
strategic dissonance. "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.
Grove believed that the role of 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.
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. He believed "good fear" could play a productive role.
"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."
Constructive confrontation
============================
Grove fostered a culture of open communication where employees were
encouraged to speak their minds in a "constructive confrontation"
approach. "People here aren't afraid to speak up and debate with
Andy," said Intel Senior VP Ron Whittier. According to Grove's
successor at Intel, 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." About that philosophy, writes business author
Ken Goldstein, "you bought into it or got your walking papers."
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." As a testament to
this ethos, there were no executive perks at Intel, including special
dining rooms, washrooms, or parking spots. Grove's office was a
standard 8 by 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." 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."
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. 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.
The Father of the objectives and key results (OKR) approach to management
===========================================================================
One of the earliest investors in Google, John Doerr, called Grove the
"Father of OKRs" in Doerr's 2018 book, 'Measure What Matters: How
Google, Bono, and the Gates Foundation Rock the World with OKRs.' An
acronym for objectives and key results, it became central to Google's
culture as a "management methodology that helps to ensure that the
company focuses efforts on the same important issues throughout the
organization." The objective is the clearly defined goal, while the
key results were the specific benchmarks to ensure achievement of that
goal were "measurable and verifiable."
In 1975, Doerr wrote of attending a course within Intel taught by
Grove, where he was introduced to the theory of OKRs. Grove explained
his perspective on management: "The key result has to be measurable.
But at the end you can look, and without any arguments: Did I do that
or did I not do it? Yes? No? Simple. No judgments in it."
Larry Page, co-founder of Google, credited OKRs in the foreword to
Doerr's book: "OKRs have helped lead us to 10x growth, many times
over. They've helped make our crazily bold mission of 'organizing the
world's information' perhaps even achievable. They've kept me and the
rest of the company on time and on track when it mattered the most."
Preference for a "job-centric" American economy
=================================================
While Grove supported helping technology startups, he also felt that
America was wrong in thinking that those new companies would increase
employment. "Startups are a wonderful thing," he wrote in a 2010
article for 'Bloomberg', "but they cannot by themselves increase tech
employment." Although many of those startups and entrepreneurs would
achieve tremendous success and wealth, said Grove, he was more
concerned with the overall negative effect on America: "What kind of a
society are we going to have if it consists of highly paid people
doing high-value-added work and masses of unemployed?"
Grove felt that employment growth depended on those companies' ability
or willingness to scale up within the US. According to Grove, Silicon
Valley's "innovation machine" over the last few decades has not been
adding many jobs, although American tech companies have instead been
adding jobs in Asia "like mad." He noted that while American
investments in startups have increased dramatically, those investments
have in fact resulted in fewer jobs: "Simply put," he wrote, "the U.S.
has become wildly inefficient at creating American tech jobs." He
therefore worked to keep Intel's manufacturing in the US, with the
company having 90,000 employees in 2010. He explained the causes and
effects of many business's growth plans:
To remedy the problem, he strongly believed that "job creation" should
become America's primary objective, much as it is in Asian nations.
Among the methods he felt were worth considering was the imposition of
a tax on imported products, with the funds received then made
available to help American companies scale their operations in the US.
However, he also accepted the fact that his ideas would be
controversial: "If what I'm suggesting sounds protectionist, so be
it." Or that those protectionist steps could lead to conflicts with
trade partners: "If the result is a trade war, treat it like other
wars--fight to win." He added:
Grove was also in the minority of high-tech leaders when he advocated
taxing internet sales made to other states: "I don't think electronic
commerce needs federal or state subsidies in terms of tax advantages,"
he told a Congressional committee in 2000. At the same hearing, he
also expressed his opinion about internet privacy, stating that
"personal data is a form of property and it's inevitable that
governments will regulate property rights." He said that it would be
better if the federal government established its own uniform privacy
standards rather than have states create a patchwork of different
laws.
Writing and teaching
======================
Grove was also a noted author and scientist. His first book on
semiconductors, 'Physics and Technology of Semiconductor Devices'
(1967), has been used by leading universities. Another book he wrote
on business operation methods, 'High Output Management' (1983). He
also wrote over 40 technical papers and held several patents on
semiconductor devices.
Grove wrote 'Only the Paranoid Survive' (1996), a business book, whose
core message is that a company in pursuit of a stronger competitive
advantage never rests.
He also taught graduate computer physics courses at the University of
California, Berkeley and the Stanford Graduate School of Business.
Philanthropy
==============
In 2005, Grove made the largest donation that the City College of New
York (CUNY) has ever received. His grant of $26 million transformed
the CCNY School of Engineering into the Grove School of Engineering.
Grove was also instrumental, as a key fundraiser, in establishing the
University of California, San Francisco's Mission Bay Campus, the
largest ongoing biomedical construction project in the world.
Chancellor Sam Hawgood said that Grove's "generous and tireless
support of UCSF has transformed our university and helped accelerate
our research into breakthrough treatments and better patient care."
Among the research facilities which he helped fund were the UCSF
Prostate Cancer Center, the Helen Diller Family Cancer Research
Building, and the Clinical and Translational Science Institute. He
also promoted general surgery initiatives and supported various
obstetrics and gynecology research programs.
Grove was a longtime member of the International Rescue Committee
(IRC), along with being one of its overseers and a member of its board
of directors. He was also the founding supporter of the IRC's Pathways
to Citizenship program. In 2010, the IRC honored him as one of ten
distinguished refugees. In an interview in 'Esquire' magazine in 2000,
Grove encouraged the United States to be "vigilant as a nation to have
tolerance for difference, a tolerance for new people." He pointed out
that immigration and immigrants are what made America what it is.
Honors and awards
======================================================================
* Grove received honorary degrees from the City College of New York
(1985), Worcester Polytechnic Institute (1989) and Harvard University
(2000).
* Grove was named 'Time' Person of the Year in 1997.
* In 2004, the Wharton School of Business recognized him as the "Most
Influential Business Person of the Last 25 Years."
* The 1st Annual Heinz Award in Technology, the Economy and
Employment. Grove received the award in 1995, and he was honored by
the foundation for representing a story "as old as America: the story
of a young immigrant rising to great success." The donors of the award
added that Grove "has played perhaps the single most pivotal role in
the development and popularization of the twentieth century's most
remarkable innovationthe personal computer."
* On August 25, 2009, California Governor Arnold Schwarzenegger
announced that Grove would be one of 13 California Hall of Fame
inductees in The California Museum's yearlong exhibit. The induction
ceremony was on 1 December 2009 in Sacramento, California.
* Strategic Management Society's Lifetime Achievement Award (2001)
* IEEE Medal of Honor (2000)
* 'Time' magazine's Man of the Year (1997)
* 'IndustryWeek' Technology Leader of the Year (1997)
* 'Chief Executive' CEO of the Year (1997)
* Medal of Achievement from the American Electronics Association
(1993)
* IEEE Engineering Leadership Recognition Award (1987)
* Franklin Institute Certificate of Merit (1975)
Books
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*
*
* (originally published in 1983)
*
*
*
*
Further reading
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*
* Kiechel, Walter. "Andy Grove on the confident leader." 'Harvard
Business School Working Knowledge.' (2003)
[
https://hbswk.hbs.edu/item/andy-grove-on-the-confident-leader
Online].
* Puffer, Sheila M. "Global executive: Intel's Andrew Grove on
competitiveness." 'Academy of Management Perspectives' 13.1 (1999):
15-24.
*
Primary sources
=================
* Grove, Andy. "Andy grove: How america can create jobs." 'Business
Week,' July 1 (2010): 2010.
[
https://mariotti.blogs.com/files/andy-grove_-how-america-can-create-jobs.pdf
Online]
External links
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* [
https://newsroom.intel.com/news-releases/andrew-s-grove-1936-2016/
Andrew S. Grove 1936 - 2016] from Intel.
* [
http://ethw.org/Andrew_S._Grove Andrew S. Grove Biography],
Engineering and Technology History Wiki.
*
* .
* | 1:08:20 | May 31, 2019
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