The President and CEO of Intel, the world’s largest chipmaker, reveals how to identify and exploit the key moments of change in any industry that generate either drastic failure or incredible success
Under Andy Grove’s leadership, Intel has become the world’s largest computer chipmaker, the 5th most admired company in America, and the 7th most profitable company among the Fortune 500.
Few CEOs can claim this level of success. Grove attributes much of it to the philosophy and strategy he has learned the hard way as he has steered Intel through a series of potential major disasters.
There are moments in any business when massive change occurs, when all the rules of business shift fast, furiously and for ever. Grove calls such moments strategic inflection points (SIPs), and he has lived through several. They can be set off by almost anything – by mega competition, an arcane change in regulations, or by a seemingly modest change in technology. They are not always easy to spot – but you can’t hide from them.
Intel’s first SIP was when the Japanese started producing better-quality, lower-cost memory chips. It took Grove three years and huge losses to recognize that he had to rethink and reposition the company if it was to become, once again, a leader in its field.
Grove extrapolates the lessons he has learned from this and other SIPs – for instance the drama of the Pentium flaw, and the SIP brought on by the Internet – to reveal a unique insight into the management of change. He recounts strategies from other companies, and examines his own record of success and failure.
Only the Paranoid Survive is a classic lesson in leadership skills that every manager in every industry will benefit from. Every manager must assume that something will change – very soon.
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Andrew Grove participated in the founding of Intel and has been President since 1979 and CEO since 1987. He teaches a course in strategy at the Stanford University Graduate School of Business, and is the author of three previous books, including the bestselling High Output Management (just reissued by Vintage).
Under Andy Grove's leadership, Intel has become the world's largest computer chipmaker, the 5th most admired company in America, and the 7th most profitable company among the Fortune 500.
Few CEOs can claim this level of record-breaking success. Grove attributes much of it to the philosophy and strategy he has learned the hard way as he has steered Intel through a series of potential major disasters.
There are moments in any business when massive change occurs, when all the rules of business shift fast, furiously and for ever. Grove calls such moments strategic inflection points (SIPs), and he has lived through several. SIPs can be set off by almost anything – by mega-competition, an arcane change in regulations, or by seemingly modest change in technology. They are not always clear, and they can take years to emerge, but one thing is certain – you cannot hide from them.
In Intel's case, the first SIP occurred when the Japanese started producing better-quality, lower-cost memory chips. It took Grove three years and huge losses to realise that this was a signal to get out of the memory chip game altogether – a difficult move to accept for an organisation whose name had been synonymous with it. But once he recognised the implications of the forces of change, he was able to carry the organisation through the 'valley of death', reposition it, and make it, once again, a leader in its field.
Managed wrong, a SIP can mean the end of the game. Managed right, it can be turned into a positive force that ensures a company wins in the market place and emerges stronger than ever.
Taking the reader deep inside the workings of his corporation, Grove extrapolates the lessons he has learned at Intel to reveal a unique insight into the art of business and the management of change. He recounts strategies from other companies, examines his own record of success and failure, including the drama of the Pentium flaw, and tells how he is dealing with the strategic inflection point brought on by the Internet.
'Only the Paranoid Survive' is a classic and highly original lesson in leadership skills that every manager will benefit from. Every manager in every industry must assume that 'something will change – very soon'. Grove is a supreme example of how, in a watchful leader's hand, that change can be an ace.
"This book is about one super important concept. You 'must' learn about strategic inflection points, because sooner or later you are going to live through one."
Steve Jobs, 'CEO, Pixar Animation Studios'
"Andy Grove masterfully uses his own experience and those of Intel to define and analyse the 'Strategic Inflection Points' in a growing enterprise. Anyone who has an interest in the success of their business should read this insightful book by one of America's most innovative entrepreneurs."
Michael S.Ovitz, 'President of the Walt Disney Company'
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