Bad Customers Are Bad for Your Business

Herb Kelleher: “Dear Mrs. Crabapple, We will miss you.”

Herb Kelleher of Southwest AirlinesSouthwest Airlines is a paragon of superlative customer service. Southwest’s happy and engaged employees routinely go out of their way to delight their customers. In spite of such remarkable devotion to customer satisfaction, there have been times when Southwest had to decide that some customers were just wrong for their business.

In the very entertaining and enlightening Nuts!: Southwest Airlines’ Crazy Recipe for Business and Personal Success, authors Kevin and Jackie Freiberg narrate how Southwest had to let go of a customer who couldn’t be less satisfied with her travel experience. This customer relations-story is best appreciated in light of the fun-loving and gregarious nature of Southwest’s legendary founder and ex-Chairman/CEO Herb Kelleher.

'Nuts- Southwest Airlines' by Kevin and Jackie Freiberg (ISBN 0767901843) A woman who frequently flew on Southwest, was constantly disappointed with every aspect of the company’s operation. In fact, she became known as the “Pen Pal” because after every flight she wrote in with a complaint.

She didn’t like the fact that the company didn’t assign seats; she didn’t like the absence of a first-class section; she didn’t like not having a meal in flight; she didn’t like Southwest’s boarding procedure; she didn’t like the flight attendants’ sporty uniforms and the casual atmosphere.

Her last letter, reciting a litany of complaints, momentarily stumped Southwest’s customer relations people. They bumped it up to Herb’s desk, with a note: ‘This one’s yours.’

In sixty seconds, Kelleher wrote back and said, ‘Dear Mrs. Crabapple, We will miss you. Love, Herb.’

Bad Customers: Wrong for Your Business, Wrong for Your Employees

Bad Customers: Wrong for Your Business, Wrong for Your Employees

Customers are the lifeblood of any business. Customer satisfaction begets loyalty, and loyalty begets revenues and profits. Businesses can therefore never place too much emphasis on their customers.

However, with slogans like “the customer is always right,” many businesses fall into the trap—and the slippery slope—of trying to satisfy every customer’s every wish.

Although your business may need all its customers—even the irksome ones—the reality is that some customers can actually be bad for your business. You can’t sustainably run a business without trying to satisfy every customer—particularly those cranky, annoying, or unreasonable ones.

Be wary of customers that fall into these categories:

  • Customers who require high maintenance but cannot be charged more
  • Customers whose demand for price destroys your profitability
  • Customers who want a lot more (better product, better service, better schedule) but are tightfisted
  • Customers who require supplementary services or products (especially those that are not part of your business’s core competencies) and tailored solutions that you don’t provide and can’t profitably offer to the rest of your customer base
  • Customers who don’t subscribe into the future vision of your business or your industry, which they’ll need to strategically commit to as some point in the future
  • Customers who tend to be aggressive and hostile, and disrespectful to your employees, regardless of how well they serve the customers

Strategic Customer Management Involves Being Tough Minded with Some Customers

Strategic Customer ManagementConsidering your long-term business goals, sifting through who should and who shouldn’t be your customers is an important element of strategic leadership.

With every product or service you offer, focus on who you want your customer to be, what expectations they have of you, and what you can profitably provide to them. Once you have figured that out, customers who don’t fit well need to be managed judiciously and decisively.

Without strategic customer management, you run a risk of disrupting your ability to converge around the needs of your principal customer base.

Remember the notion of opportunity costevery ‘no’ is a ‘yes’ to something important.

Idea for Impact: Let Go of Some of Your Troublesome Customers

Sometimes, it may be better to lose certain customers by turning them down than to dilute your ability to serve other valuable customers profitably. Stop trying to delight every customer. Take a hard look at the past, current, and future of every customer and prioritize whom you can going to serve better and more successfully.

You Too Can (and Must) Become Effective

Peter Drucker on Teaching Yourself to Become Effective

Peter Drucker (1909–2005) is widely regarded as the most outstanding thinker on the subject of management theory and practice. He was amazingly prolific—he produced 39 volumes on management and leadership and worked right until his death a week before his 96th birthday.

Drucker’s The Practice of Management (1954) played a pivotal role in the recognition of management as a professional discipline. In this influential book (see my summary here,) Drucker explained what management is and how managers do their jobs.

'The Effective Executive' by Peter Drucker (ISBN 0060833459) In his bestselling The Effective Executive (1967,) Drucker defined effectiveness as getting the right things done and efficiency as making resources productive. His pivotal message was that effectiveness must be learned because effectiveness is every manager’s job. That’s what are managers get paid for—“the executive is paid for being effective.” Moreover, “Effective executives know that their subordinates are paid to perform, and not to please their superiors.”

Five Practices of the Effective Executive

Drucker devotes five chapters of The Effective Executive to five practices that have to be acquired to be effective. Introducing these effectiveness practices, Drucker writes, “Whenever I have found a person who—no matter how great in intelligence, industry, imagination, or knowledge—fails to observe these practices, I have also found an executive deficient in effectiveness.”

  • Effectiveness Habit #1—Know Where Time Goes: “Time is the scarcest resource, and unless it is managed nothing else can be managed.” In addition, “Effective executives know where their time goes. They work systematically at managing the little of their time that can be brought under their control.” Using the three-step time logging, time analysis, and time budgeting practice, effective executives know where there time goes. They exert themselves to make certain that they invest their time in line with their values and priorities.
  • Effectiveness Habit #2—Focus on Contribution: Whatever your span of responsibilities—supervisory, managerial or leadership—you are accountable to your ‘external’ stakeholders. These stakeholders measure your performance solely by your ability to identify opportunities and get things done through the resources you have. Drucker writes, “Effective executives focus on outward contributions. They gear their efforts to results rather than to work. They start out with the question, ‘What results are expected of me?'” Effective executives have a clear understanding of their contribution and their results.
  • Effectiveness Habit #3: Make Strengths Productive: “Effective executives build on strengths—theirs and others. They do not build on weaknesses. They do not start out with the things they cannot do.” Effective executives understand and build on the strengths of themselves, their team, and their organization to make everyone productive and to eliminate weaknesses. The only weaknesses that have a bearing—and must be remedied—are the ones that hinder effective executives from exercising their strengths.
  • Effectiveness Habit #4: Live Priorities: “Effective executives concentrate on superior performance where superior performance will produce outstanding results. They force themselves to stay within priorities.” Setting priorities is easier; the hard part is sticking to the decision and living the priorities. To get things done, focus on one task at a time or two at the most; three is usually impractical.
  • Effectiveness Habit #5: Systemize Decision-Making: “Effective executives make effective decisions. They know that this is a system—the right steps in the right sequence. They know that to make decisions fast is to make the wrong decisions.” For Drucker, decision-making was a matter of wisdom and sound judgment—making a choice between alternatives but seldom between mere right and mere wrong. “The sooner operating managers learn to make decisions as genuine judgments on risk and uncertainty, the sooner we will overcome one of the basic weaknesses of large organizations—the absence of any training and testing for the decision-making top positions.”

Idea for Impact: Teach yourself to become effective. Commit these five tasks to memory and practice them. Read The Effective Executive—it will have a profound effect on your performance.

What it Takes to Be a Hit with Customers

  1. Be Trustworthy. One of the most important aspects of being effective at work is earning and upholding others’trust through your actions, not through your words. You earn trust slowly but can lose it in a moment—as Warren Buffett often reiterates, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.” Idea for Impact: Earn trust by making and honoring your commitments. Do what you commit to. Act with integrity. Do the right things for the right reasons.
  2. Responsiveness in Customer Service: Respond immediately to requests unless there is a judicious reason to wait Be Responsive. We live in a time and age of “instantaneous gratification.” People want immediate results—without delay or deferment. They don’t expect to wait. And if they have to wait on you, their resentment grows. Alas, responsiveness affects how people perceive you. If you’re slow, your customers will suppose you are indifferent or incompetent. If you respond promptly, they’ll assume you’re proficient and on top of your work. Idea for Impact: Respond immediately to requests unless there is a judicious reason to wait.
  3. Be Strong, But Flexible. Respect the rules and traditions but be adaptable to changing conditions. Be watchful and absorb from whatever you can learn—as General Electric’s celebrated ex-CEO Jack Welch once wrote, “The desire and the ability of an organization to continuously learn from any source—and to rapidly convert this learning into action—is its ultimate competitive advantage.” Idea for Impact: Flexibility with rules can be pragmatic in its own right. Learn to make rational decisions by balancing facts and emotions.
  4. Be Realistic, Not Overly Optimistic. Self-help gurus and the media have endlessly touted optimism as the “winning formula to success.” This obsession with cheerfulness has reinforced a false sense of realism and pragmatism. Optimists tend to overlook the reality—they develop a false sense of hope and become too attached to the possibility of positive outcomes. Unfortunately, realists are branded as skeptics and skeptics are quickly shunned as outcasts. Idea for Impact: Take an honest and levelheaded view, no matter what the problem. Embrace the possibility of failure. Plan for the downside. Don’t get caught up in trivial details.
  5. Be Likeable and Interested. Highly competent but unlikeable people do not succeed as well as their fairly competent but likeable counterparts. The American poet and memoirist Maya Angelou aptly said, “I’ve learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” Idea for Impact: Be pleasant, enthusiastic, and friendly—make eye contact, smile, and say ‘hello’ more. Listen. Be open and approachable. Appreciate the individuality of people. Try to be interested, not just interesting.
  6. Be a Good Salesperson - Much of success in life is really about selling yourself Be a Good Salesperson. Much of success in life—from getting a Starbucks barista to make a special no-whip, extra-foam latte with half a packet of Splenda to finding a spouse—is really about selling yourself. Every selling situation involves making a connection with an individual who likes and trusts you. An anonymous sales guru once said, “All things being equal, most people would rather buy from somebody they like… and that’s true even when all things aren’t equal.” Idea for Impact: It is useless to work hard and be creative unless you can also sell what you create. Learn to be persuasive. You can’t just talk people into things.
  7. Be Visible and Communicate Candidly. How you identify and respond to a problem or a crisis is the ultimate test of your character. If you do not communicate frequently, people will develop their own perceptions of the problem and its implications. Knowing when to step up your communications efforts to the right levels during difficulties can be a powerful tool in problem solving. Idea for Impact: Keep your eyes open for customers’ inconveniences, difficulties, and troubles as creative problems to be solved. Focus on problem solving. Be visible. Communicate and lead from the front. Learn how to handle upset customers.

Postscript: This Harvard Business Review article argues that, more than anything else, customers want just a reasonable solution to their expectations. Delighting them by “exceeding their expectations” hardly enhances customer loyalty.

The #1 Cost of Overwork is Personal Relationships

Is your career ruining your relationships?

There’s an old adage that no one ever said on his/her deathbed, “Gee, I wish I’d put more time in at the office.” Still, modern corporate life demands high-level performance for sustained periods.

Work has a tendency to capture people’s lives, leaving them out of focus and out of balance. Many people are working longer hours, often to the point of overlooking their individual needs: family, health, fitness, and home.

Is your career is ruining your relationships?

Personal relationships are often the first casualties of overwork. Hard workers are often in denial about the deterioration of their relationships. They unhesitatingly offer one of the many excuses that society seems to have sanctioned for overwork: “need to send the kids to private school,” “boss demands it,” “we’re experiencing quality problems and I’m making a good impression by firefighting”, “I’m keeping more patients alive,” and so forth. They are often the last to notice that their personal relationships are suffering.

As I mentioned in my article on willpower, many marriages go bad when stress at work is at its worst. This “muscle metaphor” for willpower, on a day-to-day basis, people use up all their willpower on the job; their home lives suffer because they give much to their work.

The time you do spend with your families can be more meaningful

'You Cant Predict a Hero' by Joseph Grano (ISBN 0470411678) Joe Grano, CEO of business consulting firm Centurion Holdings, used to work six days a week and almost every night. After years of slogging on Wall Street, his personal relationships worsened. Discussing how his ambition and long work hours led to his divorce (he had two daughters with his wife) in You Can’t Predict a Hero, Grano writes,

All successful, ambitious people are personally selfish to some degree. This goes beyond just the desire to pursue your self-interest in carving up the power and money in business. You can’t work the long hours that success requires and can’t set the individualistic priorities that ambition dictates without stealing somewhat from your loved ones. Some may think that a selfish perspective is rationalized with the rewards of money and prestige. Perhaps. But what if your loved ones don’t really care as much for those material rewards as you do? The truth is that successful people do what they do because they love doing it. The career is their passion, their mistress. It’s the adrenaline that drives their metabolism. The drive to spend those long hours working is as essential a part of their genetic makeup as is their DNA.

If you’re going to become a successful leader, you need to reconcile yourself to your own selfishness, not just the selfishness of others. Many of your peers will spend more time with their families than you do with yours. Finally, accept that the psychic rewards that come from your ambition and eventual success, while satisfying to you, may mean much less, if anything at all, to your loved ones. This is one of the prices of success. You’ll need to sacrifice on the amount of time you spend with your loved ones. Compensate by not sacrificing on the quality of that time.

Idea for Impact: Success doesn’t come without a price; neither does failure. With every choice comes consequences

What people really want and need is not work-life “balance,” but to live deeply satisfying lives both personally and professionally. The trick is a personal choice—to become more conscious of what and who matter most, and then to create the life you want.

Work-life balance isn’t so much about balance as it is about setting and living priorities. Remember, with every choice comes consequences.

Seven Real Reasons Employees Disengage and Leave

Root Causes for Employee Disengagement

Engaged employees not only contribute more and enhance bottom-line results but also are more loyal and therefore less likely to leave their organizations voluntarily.

Here are seven widespread root causes for employees’ lack of enthusiasm and commitment to a workplace.

  1. Employees find the job or workplace to be different from what they had expected when hired.
  2. Employees are not well matched or challenged in the jobs to which they have been assigned or promoted.
  3. Employees receive insufficient coaching and feedback from their boss.
  4. Employees recognize few prospects for professional growth and advancement. Alternatively, employees are obliged to log two or three years of unexciting assignments to “pay their dues” before being considered for promotion.
  5. Employee feel undervalued, underpaid, or under-recognized. They don’t get enough informal acknowledgement for their contributions or feel constantly “out of loop.” Their managers don’t seek opinions or supply the right tools to excel at work.
  6. Employees feel stressed or burned-out due to overwork or work-life imbalance.
  7. Employees have lost trust and confidence in their management and leadership.

Idea for Impact: Disengaged employees are more likely to leave their organizations.

A Little Known, but Powerful Technique to Fast Track Your Career: Theo Epstein’s 20 Percent Rule

Lessons on Career Advancement from 43 Year-old Chicago Cubs President Theo Epstein

Chicago Cubs President Theo Epstein's 20 Percent Rule for Career AdvancementTheo Epstein (b.1973), president of baseball operations for the Chicago Cubs, has thus far had a stellar career as a sports executive.

As a freshman at Yale, Epstein was assertive enough to flaunt his role as a sports editor for the Yale student newspaper. After cold-contacting many professional sports teams to express interest in working for them, he grabbed the attention of a Yale alumnus at the Baltimore Orioles. This stroke of luck led to three consecutive summer-internships at the Orioles with increasing responsibilities.

After graduating from Yale with a degree in liberal arts, Epstein joined the Orioles full-time as a public relations assistant. His ingenuity caught the eye of Orioles President-CEO Larry Lucchino, who took Epstein under his wings. When Lucchino became team president of the San Diego Padres, he took Epstein and made him director of player development.

At Lucchino’s suggestion, Epstein also attended law school full-time whilst working 70 hour-weeks at the Padres. At that time, nobody on the small Padres’ management team had a law degree. By going to law school and getting a Juris Doctor degree, Epstein could help review players’ contracts. “Getting that seat at the table gave me the opportunity to be involved, and then my responsibilities grew from there,” he once recalled.

At age 28, Epstein moved again with Lucchino and joined the Boston Red Sox as general manager. In doing so, he became the youngest general manager in the history of Major League Baseball. Ten years later, in 2011, Epstein became president the Chicago Cubs.

At both the Red Sox and the Chicago Cubs, Epstein intelligently used complex statistical analytics to oversee the teams’ curse-breaking championships. In 2004, Epstein supervised the Red Sox’s sixth World Series Championship and ended their 86-year drought. And in 2016, when, under Epstein’s presidency, the Chicago Cubs finally won the World Series Championship 108 years after the previous time they did, their triumph ended the longest drought in professional sports.

Theo Epstein’s 20 Percent Rule: Undertake Your Boss’s Less Glamorous Responsibilities

In a recent interview (22:31-minute mark in this “The Axe Files” podcast) with the University of Chicago’s David Axelrod, Epstein revealed a career advancement technique that helped fast-track his career at the Orioles, the Padres and the Red Sox:

Whoever your boss is, or your bosses are, they have 20 percent of their job that they just don’t like … So if you can ask them or figure out what that 20 percent is, and figure out a way to do it for them, you’ll both make them really happy, and improve their quality of life and their work experience. And also gain invaluable experience for yourself. If you do a good job with it, they’ll start to give you more and more responsibility.

Idea for Impact: Those Who Raise Their Hands Climb the Ladder Faster

Theo Epstein's 20 Percent Rule: Undertake Your Boss's Less Glamorous ResponsibilitiesHuman nature is such that everyone likes to do what he/she likes and not what should be done. If you can determine those aspects of your boss’ job that she hates and volunteer to help her with those responsibilities, you can expand your job’s horizons.

When you can seize such opportunities to raise your hand and sign up for tasks and responsibilities that aren’t particularly attractive, you not only learn by way of broader experiences and gain confidence, but also become more visible to management and situate yourself for a promotion. As I’ve written previously, before you can be seen as eligible for promotion, you should have demonstrated competence in doing a part of the new job you aspire to.

Seek out projects, prove that you’re eager and able to go the extra mile, and gain valuable face time with top executives.

Don’t Be Too Helpful at Work

Agreeableness Can Go Too Far

Consider the case of Sherry, a discontented claims adjustor at an insurance firm. She is a star employee and an excellent team player. In a bid to be seen as obliging, Sherry always agrees to do everything she is asked to do by her supervisors and her colleagues. She ends up taking on a lot of extra work.

Sherry gets much praise for helping out as much as she can. However, she feels constantly overworked. This excessive dedication has left her with neither the time nor the energy for leisure or family. Her discontent materializes from the fact that her inability to say “no” is actually holding her back from some of her primary priorities.

Don't Be Too Helpful at Work

Too Much Congeniality Can Be Counterproductive

We live in an era in which self-interest is contemptible. People who aren’t generous and altruistic are branded as uncaring and greedy—even evil. At work, one mark of a high-performing employee is the ability to bring discretionary effort at work. This implies willingly dedicating energy and attention beyond the basic requirements of the role. Employees who are agreeable and helpful are much favored to those who are not so obliging.

Nonetheless, as a whole, there are dangers of being too helpful in a workplace. Employees like Sherry frequently find themselves overloaded with tasks that aren’t really part of their responsibility, tasks that are difficult to execute well, and tasks that that others don’t want to undertake because they are uninteresting or low-status in the organization. These supplementary tasks may stop obliging employees from doing their own work to the expected standard. Eventually, they get branded with humdrum work and may even be overlooked for higher-status work assignments or for promotion to senior roles.

If you’re one of those employees who is accommodating or strives to be seen as such, curtail your impulse to say “yes” to whatever people ask you to do. Don’t change abruptly from being a friendly, accommodating employee into an obstinate, unhelpful person.

Be judicious in undertaking extra work if it is only desirable in light of your priorities and the personal image you want to sustain. If the prospective task conflicts with your priorities, you are within your rights to say “no” (see my previous article on nice ways to do so.)

Idea for Impact: There is a Limit to the Results Being Nice Will Get You

While it is virtuous to think of others first at both work and home, devoting all of your time for others can stand in the way of caring for yourself. Your work-life balance can suffer.

Addressing your own needs first is not only incredibly beneficial for your well-being, but also vital to your ability to care for others. Be prudent. Stand up for yourself. Be mindful of your priorities. Be attentive to your own needs. Practice saying “no.” Learn to be assertive.

Eight Ways to Keep Your Star Employees Around

Eight Ways to Keep Your Star Employees Around

Every manager should make employee retention a priority and regularly inquire, “How many of my star employees would leave my organization if they could?”

Employee turnover can be expensive. Managers must find and hire replacements, invest in training the new employees, and wait for them to get to up to speed—all while suffering productivity shortfalls during the transition. The more talented an employee, the higher the cost of replacing him/her.

Here’s what you need to do to keep your star employees around.

  1. Identify them. Find key attributes that distinguish top performers from average performers. Then rank your team against these attributes and identify those employees who are critical to your organization’s short- and long-term success.
  2. Perform salary and compensation research within your industry and offer an attractive-enough benefits package. Beyond a particular point, compensation loses much of its motivating power. Consider flexible work arrangements.
  3. Understand what your star employees value and help them realize their values and regard their work as meaningful, purposeful, and important. Often, the risk of losing employees because their personal values don’t correspond with the team’s values is far greater than the risk of losing them because of compensation.
  4. Get regular feedback from your star employees. Ask, “What can I do as your manager to make our organization a great place for you to work?” Let them tell you what they need and what they like and don’t like about their jobs. Adjust their assignments and their work conditions accordingly.
  5. Invest in training and development. Give star employees opportunities to develop their skills and increase their engagement and job security. Hold frequent and formal career discussions to determine employees’ goals and aspirations and coach them.
  6. Give your star employees the autonomy, authority, and resources to use their skills and do their jobs in their own way.
  7. Keep them challenged and engaged. Make work more exciting. Set aggressive, but realizable goals. Move your star employees around into positions in the company where they will face new challenges and develop critical skills. Employees would like to be challenged, appreciated, trusted, and see a path for career advancement.
  8. Appreciate and give honest feedback regularly. Make timely and informal feedback a habit. Don’t disregard employee performance until the annual review. Help employees feel confident about your organization’s future. Earn their trust.

How to Prepare an Action Plan at a New Job [Two-Minute Mentor #6]

Winning at a new job by preparing a plan for action

Meet with all the people your new role interacts with—bosses, peers, suppliers, internal and external customers, and your employees.

Inquire what they expect to see you accomplish in five weeks, five months, and five years. Ask,

  • “What should we continue to do?”
  • “What should we change?”
  • “What should we do?”
  • “What shouldn’t we do?”
  • “What are the two or three levers that, if pulled correctly, can enable us to make the biggest impact?”

Synthesize their responses and prepare a one-page “plan for action.” Keep it as simple as possible for all your constituencies to understand and buy-in.

Communicate your proposals across your organization: “Here’s what I heard from you. Here’s what I think about it. Here’s our list of priorities and an action plan.”

For more guidelines on preparing an action plan, see my article on doing a job analysis; it’s part of my three-part (parts 1, 2, 3) series of articles on how to write a job description for your present position.

Five Principles of Career Success from Intel’s Andy Grove

Andy Grove of Intel, born András István Gróf in Hungary

Andy Grove (1936–2016,) the illustrious cofounder and CEO of Intel, passed away earlier this year. Grove was arguably the most influential tech executive the Silicon Valley has ever seen. He achieved fame and success in his adopted country and provides an outstanding modern-day immigrant success story.

Modern-Day Immigrant Success Story

Born András István Gróf to a middle-class Jewish family in Hungary, he survived the Nazi occupation by taking a false name, hiding with Christian families, and escaping the heartbreaking fate of half a million Hungarian Jewish people. After the war, when the Russians occupied Hungary and installed a repressive Communist government, Grove’s father was forced to take up menial work despite having been emaciated from torture at a Nazi labor camp.

During the brutal response to the anti-Soviet 1956 Hungarian Revolution following Stalin’s death, Grove’s family hid themselves in a coal cellar whilst Soviet artillery shells destroyed their neighborhood. Grove joined a flood of people who took advantage of the pandemonium to walk across the border into Austria. He fled to the United States in 1957, arrived in New York with less than $20 in his pocket, and settled in with relatives.

Andrew Grove with Intel Founders Gordon Moore, Robert Noyce As a child, Grove was afflicted with scarlet fever and an ear infection that left him nearly deaf. In spite of his hearing impairment and an inadequate knowledge of English, he studied chemical engineering at the City College of New York and graduated at the top of his class. Grove learned to lip read and then deciphered his notes after class. He recalled to The New York Times in 1960, “I had to go over each day’s work again at night with a dictionary at my side.” He then earned a Ph.D. in chemical engineering at Berkeley and joined Fairchild Semiconductor. When his managers Gordon Moore and Robert Noyce left Fairchild to start Intel, Grove went with them as director of engineering.

High Performance Management and Paranoia

'Only the Paranoid Survive' by Andrew S. Grove (ISBN 0385483821) Intel evolved swiftly. As President and later CEO, Grove brilliantly led Intel’s strategy and operations, established a near-monopoly on CPUs, and played a central role in the PC revolution. During this tenure as CEO from 1987–98, Intel’s stock price rose 32% a year. After relinquishing his role as Intel’s CEO in 1998 and as Chairman of the Board in 2005, he mentored prominent Silicon Valley entrepreneurs.

Grove was famous for his rigorous, no-nonsense, confrontational, non-hierarchical management style; his approach still dominates the Silicon Valley culture. He zealously demanded high performance. In 2004, the Wharton School him the most influential business leader of the past quarter-century, over Microsoft’s Bill Gates, General Electric’s Jack Welch, and Walmart’s Sam Walton.

Grove was a conspicuous voice for reason in the immigration, offshoring, and jobs-creation debates. He was also a prolific author and public speaker. His autobiography Swimming Across (2001) recounts the first 20 years of his life—from childhood in Hungary up until his move to California. His other autobiography, Only the Paranoid Survive (1996,) describes how companies should deal with emergent competitors, transform themselves, and perhaps change the nature of the industry itself. Forbes magazine calls it “probably the best book on business written by a business person since Alfred Sloan’s My Years with General Motors.” High Output Management (1995) explained how to maximize productivity and has become a cult classic in Silicon Valley. One on One with Andy Grove (1988) compiles his “Dear Abby”-style newspaper Q&A column on work- and career-advice.

Five Principles of Career Success

'One-on-One With Andy Grove' by Andy Grove (ISBN 0140109358) Wrapping up One on One, Grove summarized his advice on career, management, and leadership with five suggestions:

  • FIRST—and this is very important—enjoy your work. It’s impossible to like all of it. Sometimes you’ll chafe under its unrelenting nature, other times you’ll be bored, but overall you must enjoy it. I am convinced that most people will like their work if they can see that what they do makes a difference and if they approach their work with a bit of zest, maybe even playfulness. Doing so introduces a bit of levity when it’s most needed and leads to camaraderie.
  • SECOND, be totally dedicated to the substance of your work, to the end result, the output; not how you got to it or whose idea it was or whether you look good or not.
  • THIRD, respect the work of all those who respect their own work, from vice presidents to sales clerks, from maintenance technicians to security officers. Nobody is unimportant: It takes all levels and all jobs to run a functioning organization.
  • FOURTH, be straight with everyone. I hate it when people are not honest with me, and I would hate myself if I weren’t straight with them. This isn’t an easy principle to stick to. There are always many reasons (better to call them excuses) to compromise a little here or there. We may reason that people are not ready to hear the truth or the bad news, that the time isn’t right, or whatever. Giving in to those tempting rationalizations usually leads to conduct that can be ethically wrong and will backfire every time.
  • And, ALWAYS, when stumped, stop and think your way through to your own answers!