• Skip to content
  • Skip to primary sidebar

Right Attitudes

Ideas for Impact

Search Results for: crisis leadership

Five Principles of Career Success from Intel’s Andy Grove

June 28, 2016 By Nagesh Belludi Leave a Comment

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!

Filed Under: Career Development, Great Personalities Tagged With: Winning on the Job

Facts Alone Can’t Sell: Lessons from the Intel Pentium Integer Bug Disaster

January 26, 2016 By Nagesh Belludi Leave a Comment

Facts Alone Can’t Change Minds

In my previous article, I discussed Aristotle’s framework for persuasion and argumentation: to persuade people on a particular point of view, it is necessary to appeal to ethos (credibility,) pathos (emotion,) and logos (logic and reason.) Some people are swayed by logic, others by appeals to emotion, and yet others defer to those who seem to possess authority, expertise, and credibility.

In this article, I give a case study of the “Intel Pentium Integer Bug Disaster” to illustrate that facts (logos) alone sometimes don’t have the power to change minds. Many people are adept at those elements of persuasion that Aristotle characterized as logos: i.e., they are proficient at making their case logically and rationally to their audience. But they may not recognize the need for the pathos aspects of persuasion and may struggle to emotionally connect with their audiences.

Mathematical Errors by the Pentium chip

Intel Pentium Chip Intel endured one of the most painful episodes in its history soon after it launched the Pentium processor. It was ridiculed by customers and the media for a flaw in the Pentium chip. Intel’s handling of the crisis was even worse than the bug itself. The Pentium flaw and its aftermath eventually led Intel to undertake large-scale product replacements that resulted in a $475 million write-off on its balance sheet.

In June 1994, about a year after Intel launched the Pentium microprocessor with much fanfare and a massive advertising campaign, some Internet newsgroups started discussing a flaw in the Pentium’s floating point unit. This error caused occasional mathematical errors in the chip’s advanced number-crunching component.

Intel knew about the problem. Internal investigators had established that the error “caused a rounding error in division once every nine billion times … an average spreadsheet user would run into the problem only once every 27,000 years of spreadsheet use.” Consequently, Intel’s executives concluded that the error was insignificant and didn’t pay much attention.

Much to Intel’s astonishment, some trade publications caught wind of the online discussions. In November 1994, CNN aired a nasty report about the Pentium flaw. Other media outlets pounced on Intel; The New York Times published an article titled “Flaw Undermines Accuracy of Pentium Chips.” As a direct result of all the negative publicity, Intel’s customers were up in arms and flooded Intel’s customer service lines with customer complaints. By then, Intel (through IBM, Compaq, HP, Dell, Gateway, and other computer OEMs) had shipped two million Pentium chips.

Intel Decided Stuck to Its Guns and Refused to Replace All Pentium Chips

Former Intel CEO Andy Grove Throughout this crisis, Intel’s leadership underestimated the scale of customer reaction because they believed that facts were in their favor. Intel’s illustrious CEO Andy Grove decided to set the record straight and issued a memo in which he acknowledged the Pentium fault, but declared that it affected only “users of the Pentium processor who are engaged in heavy-duty scientific/floating-point calculations.”

Back then, microprocessors were not yet a commodity product and consumers had paid a premium to buy computers with Pentium chips instead of those with the discounted previous-generation 486 processors. Justifiably, Intel’s customers were enraged and started demanding that Intel send them replacement chips.

In response, Intel decided to stick to its guns, because management believed in the persuasive ability of their facts. Intel’s leadership declared that they would not replace the chips unless consumers would individually call and establish that their chips would be used for advanced math calculations. At the company’s toll-free customer service line, customers had to endure a protracted interview process for Intel to deem them worthy of receiving a corrected chip. Customers who couldn’t convince Intel that they may encounter the bug in their daily computer-use didn’t make the cut.

In December 1994, all hell broke loose for Intel when IBM stopped shipments of all Pentium-based computers. Grove later recalled, “The phones started ringing furiously from all quarters. The call volume to our hotline skyrocketed. Our other customers wanted to know what was going on. And their tone, which had been quite constructive the week before, became confused and anxious. We were back on the defensive again in a major way.”

Ignoring Customer Sentiment (Pathos) Aggravated the Intel Pentium Crisis

Eventually, Intel caved in. Grove reflected, “After a number of days of struggling against the tide of public opinion, of dealing with the phone calls and the abusive editorials, it became clear that we had to make a major change.” Intel reversed its policy, established a huge customer service operation, and announced that it would replace the Pentium chip for any customer who wanted it replaced. The crisis came to pass only after Intel replaced hundreds of thousands of Pentium chips at a cost of $475 million.

The Intel Pentium Bug is a textbook example of how not to handle a delicate situation and hurt a product’s image. A good deal of this mismanagement could be attributed to an engineering-driven corporate culture within Intel, shaped in part by Grove’s attitude that facts alone could—and should—sell. He believed in the no-nonsense way of doing business: all through the crisis, Intel stuck with the facts, refused to bow before pressure, and told customers to get on with the flawed Pentium processor.

Amazingly, the Pentium Crisis Did Not Affect Intel’s Brand

Intel Inside Marketing Campaign Fortunately, Intel not only survived the Pentium crisis, but its brand recognition increased and Intel even appeared on Fortune magazine’s list of most admired companies. In the two years prior to the Pentium launch, Intel had embarked on an aggressive marketing campaign to build up the Intel brand. The “Intel Inside” slogan was plastered on billboards in all major markets and TV commercials repeatedly blared the renowned “Intel Inside” jingle.

Another upshot of this crisis was that the attention Intel and Pentium received brought microprocessor chips bang into the public consciousness. With the August 1995-release of Microsoft’s Windows 95, the “Wintel” partnership between Microsoft and Intel ushered a wave of consumer demand that brought inexpensive personal computing to the masses around the world.

Lessons from the Intel Pentium Disaster: Just Being a Truth Teller May Not Be Enough

'Only the Paranoid Survive' by Andrew S. Grove (ISBN 0385483821) It is fallacious to assume that logic, reason, and facts are all potent and that rationality will triumph over irrationality. During the Pentium crisis, Intel had assumed that an honest appraisal of facts of the Pentium bug would have the strength to change customer’s minds. However, sticking to facts alone backfired.

Following Aristotle’s ethos-pathos-logos framework, Intel had logos right: Intel’s assessment that the Pentium errors would not affect most people’s use of their computers was accurate. As the CEO of Intel, Grove had ethos right: his engineers were the prevalent authorities on microprocessor technology and Intel was the dominant producer of computer chips. But Intel got pathos wrong: by just presenting facts (logos) with authority (ethos) and ignoring customer sentiment (pathos), Intel’s arrogant stance was not only ineffective but also aggravated the whole Pentium crisis.

Idea for Impact: During Argumentation, Ignore Pathos At Your Own Peril

When persuading others of your ideas, don’t assume that logos alone has the power to change their minds. Don’t arm yourself with just bulletproof facts, scientific evidence, logic, and rationality and expect logos to sway others to your point of view. Recent research suggests that emotion plays a significant role even in situations where logic seems to be the dominant driver of decision-making.

Decision-making isn’t just logical, it’s emotional too. Remember, “When the heart pulls, the head tends to follow.”

Filed Under: Effective Communication, Sharpening Your Skills Tagged With: Communication, Crisis Management, Critical Thinking, Leadership, Negotiation, Persuasion, Presentations

Wife asks “When is it going to be time? Our time? My time?” and Google CFO chooses to retire

March 11, 2015 By Nagesh Belludi Leave a Comment

To supplement yesterday’s article, “When Can Your Loved One Become an Important Client?” on making time for ourselves and our loved ones, here’s a memo published yesterday by Google CFO Patrick Pichette announcing his retirement after a 30-year career that he deemed left him with too little time to pursue anything else.

Google CEO Larry Page called the memo “a most unconventional leaving notice … Well worth reading—it will warm your heart.”

Google CFO Patrick Pichette and wife atop Mt. Kilimanjaro

A trip to Africa in September 2014 was the genesis of Pichette’s choice to retire at age 52. One morning, Pichette and wife Tamar were watching the sunrise from the top of Mount Kilimanjaro and appreciating the expanse of the Serengeti Park beneath. Then,

And Tamar out of the blue said “Hey, why don’t we just keep on going”. Let’s explore Africa, and then turn east to make our way to India, it’s just next door, and we’re here already. Then, we keep going; the Himalayas, Everest, go to Bali, the Great Barrier Reef… Antarctica, let’s go see Antarctica!?” Little did she know, she was tempting fate.

… then she asked the killer question: So when is it going to be time? Our time? My time? The questions just hung there in the cold morning African air.

A few weeks later, I was happy back at work, but could not shake away THE question: When is it time for us to just keep going? And so began a reflection on my/our life.

… I am completing this summer 25-30 years of nearly non-stop work (depending on how you wish to cut the data). And being member of FWIO, the noble Fraternity of Worldwide Insecure Over-achievers, it has been a whirlwind of truly amazing experiences. But as I count it now, it has also been a frenetic pace for about 1500 weeks now. Always on – even when I was not supposed to be. Especially when I was not supposed to be. And am guilty as charged – I love my job (still do), my colleagues, my friends, the opportunities to lead and change the world.

Third, this summer, Tamar and I will be celebrating our 25th anniversary. When our kids are asked by their friends about the success of the longevity of our marriage, they simply joke that Tamar and I have spent so little time together that “it’s really too early to tell” if our marriage will in fact succeed.

If they could only know how many great memories we already have together. How many will you say? How long do you have? But one thing is for sure, I want more. And she deserves more. Lots more.

Allow me to spare you the rest of the truths. But the short answer is simply that I could not find a good argument to tell Tamar we should wait any longer for us to grab our backpacks and hit the road – celebrate our last 25 years together by turning the page and enjoy a perfectly fine mid life crisis full of bliss and beauty, and leave the door open to serendipity for our next leadership opportunities, once our long list of travels and adventures is exhausted.

… In the end, life is wonderful, but nonetheless a series of trade offs, especially between business/professional endeavours and family/community. And thankfully, I feel I’m at a point in my life where I no longer have to have to make such tough choices anymore. And for that I am truly grateful. Carpe Diem.

Pichette has sounded affable when I’ve heard him lead recent Google corporate earnings calls. CEO Larry Page hasn’t been talking at events since 2013 because of vocal cord troubles; Pichette has been the one to answer for Google’s large spending and disappointing earnings numbers. He has persistently defended Google’s moonshot projects and speculative investments in many new products and acquisitions that haven’t made money for stockholders.

Pichette’s memo is perhaps the finest “spend more time with family” message ever written in announcing a retirement (or resignation.) Although it’s “carpe diem” for the immediate future, he’s left the door open for more opportunities “once our long list of travels and adventures is exhausted.”

Idea for Impact: Get Your Priorities Right

Undeniably, Pichette’s decision to retire and my own ‘retirement’ for identical reasons (my decision came about on a trip to Alaska in March 2009) are outside the realm of possibility for 99% of people. Yet, this inspiring memo serves as a reminder to us to invest more time on our loved ones and on ourselves. We don’t need to constantly succumb to the demands of the world at the expense of the needs of our loved ones and our own deep-held aspirations.

Filed Under: Living the Good Life, Sharpening Your Skills Tagged With: Balance, Google, Leadership Lessons, Time Management

Inspirational Quotations by Abraham Lincoln (#363)

February 12, 2011 By Nagesh Belludi Leave a Comment

Lincoln Memorial in Washington D. C.

It’s the birthday of Abraham Lincoln, one of the world’s most recognized political leaders of all time. The 16th President of the United States was born in Hodgenville, Kentucky in 1809.

Not much is known about Lincoln’s early life. He was born in a log cabin in a poor family, lost his mother at nine, completed just a year of traditional schooling, and spent his youth in Indiana. He did manual labor until he was 21.

Lincoln pursued self-education by reading books on grammar and rhetoric and joined a debate society. After years of private study of law, he obtained a licensed to practice law at age 27 and, in time, became one of Illinois ablest lawyers. Concurrently, Lincoln worked his way through the Illinois state legislature and got elected to the United States House of Representatives. He gained popularity for his down-to-earth wit, integrity, and opposition to the institution of slavery.

Abraham Lincoln’s Presidency

Abraham Lincoln Lincoln’s political and military leadership during the Civil War held the country together through the worst crisis in its history and made him one of the most admired presidents of the United States. John Wilkes Booth, an actor who attended Lincoln’s second inauguration, fatally wounded Abraham Lincoln just six weeks later at Ford’s Theater in Washington D.C.

During his time, Lincoln was known for his compassionate nature, gentle spirit, and great oratory. Some of his speeches, most prominently, the Gettysburg Address of 1863, and writings are still widely quoted. Unlike most presidents, Abraham Lincoln never wrote his memoirs.

I recommend the following books for on the audacity of Lincoln in the face of widespread criticism his administration and his personal character and a discussion of his presidency.

  • With Malice Toward None: A Life of Abraham Lincoln, Stephen B. Oates
  • Lincoln’s Virtues: An Ethical Biography, William Lee Miller
  • A. Lincoln: A Biography, Ronald C. White Jr.
  • Tried by War: Abraham Lincoln as Commander in Chief, James M. McPherson
  • The Wit and Wisdom of Abraham Lincoln, Bob Blaisdell (ed)

Quotations by Abraham Lincoln

Be sure your feet are in the right place. Then stand firm.
—Abraham Lincoln (American Head of State)

The trouble with too many people is they believe the realm of truth always lies within their vision.
—Abraham Lincoln (American Head of State)

He has the right to criticize who has the heart to help.
—Abraham Lincoln (American Head of State)

If I care to listen to every criticism, let alone act on them, then this shop may as well be closed for all other businesses. I have learned to do my best, and if the end result is good then I do not care for any criticism, but if the end result is not good, then even the praise of ten angels would not make the difference.
—Abraham Lincoln (American Head of State)

You cannot bring about prosperity by discouraging thrift. You cannot help small men by tearing down big men. You cannot strengthen the weak by weakening the strong. You cannot lift the wage-earner by pulling down the wage-payer. You cannot help the poor man by destroying the rich. You cannot keep out of trouble by spending more than your income. You cannot further the brotherhood of man by inciting class hatred. You cannot establish security on borrowed money. You cannot build character and courage by taking away men’s initiative and independence. You cannot help men permanently by doing for them what they could and should do for themselves.
—Abraham Lincoln (American Head of State)

That some achieve great success, is proof to all that others can achieve it as well.
—Abraham Lincoln (American Head of State)

My great concern is not whether you have failed, but whether you are content with your failure.
—Abraham Lincoln (American Head of State)

Few can be induced to labor exclusively for posterity. Posterity has done nothing for us.
—Abraham Lincoln (American Head of State)

When I am getting ready to reason with a man, I spend one-third of my time thinking about myself and what I am going to say and two-thirds about him and what he is going to say.
—Abraham Lincoln (American Head of State)

Every man is said to have his peculiar ambition… I have no other so great as that of being truely esteemed of my fellow men, by rendering myself worthy of their esteem.
—Abraham Lincoln (American Head of State)

My concern is not whether God is on our side; my greatest concern is to be on God’s side, for God is always right.
—Abraham Lincoln (American Head of State)

What kills a skunk is the publicity it gives itself.
—Abraham Lincoln (American Head of State)

My old father used to have a saying: If you make a bad bargain, hug it all the tighter.
—Abraham Lincoln (American Head of State)

I claim not to have controlled events, but confess plainly that events have controlled me.
—Abraham Lincoln (American Head of State)

I have been driven many times to my knees by the overwhelming conviction that I had nowhere else to go. My own wisdom and that of all about me seemed insufficient for the day.
—Abraham Lincoln (American Head of State)

If you would win a man to your cause, first convince him that you are his true friend. Therein is a drop of honey that catches his heart, which, say what he will, is the greatest highroad to his reason, and which when once gained, you will find but little trouble in convincing his judgment of the justice of your cause, if, indeed, that cause be really a just one. On the contrary, assume to dictate to his judgment, or to command his action, or to make him as one to be shunned or despised, and he will retreat within himself, close all the avenues to his head and heart; and though your cause be naked truth itself, transformed to the heaviest lance, harder than steel and sharper than steel can be made, and though you throw it with more than Herculean force and precision, you shall be no more able to pierce him than to penetrate the hard shell of a tortoise with a rye straw.
—Abraham Lincoln (American Head of State)

The probability that we may fall in the struggle ought not to deter us from the support of a cause we believe to be just; it shall not deter me.
—Abraham Lincoln (American Head of State)

In this and like communities public sentiment is everything. With public sentiment nothing can fail; without it nothing can succeed; consequently he who moulds public sentiment goes deeper than he who enacts statutes and decisions. He makes statutes and decisions possible or impossible to be executed.
—Abraham Lincoln (American Head of State)

The strongest bond of human sympathy, outside of the family relation, should be one uniting all working people, of all nations, and tongues, and kindreds. Nor should this lead us to a war upon property, or the owners of property. Property is the fruit of labor; property is desirable; is a positive good in the world. That some should be rich shows that others may become rich and, hence, is just encouragement to industry and enterprise. Let not him who is houseless pull down the house of another, but let him labor diligently and build one for himself, thus, by example, assuring that his own shall be safe from violence when built.
—Abraham Lincoln (American Head of State)

If you intend to go to work, there is no better place than right where you are; if you do not intend to go to work, you cannot get along anywhere. Squirming and crawling about from place to place can do no good.
—Abraham Lincoln (American Head of State)

Folks are usually about as happy as they make their minds up to be.
—Abraham Lincoln (American Head of State)

Let no feeling of discouragement prey upon you, and in the end you are sure to succeed.
—Abraham Lincoln (American Head of State)

Filed Under: Inspirational Quotations Tagged With: Abraham Lincoln

« Previous Page

Primary Sidebar

Popular Now

Anxiety Attitudes Balance Biases Books Coaching Conflict Conversations Creativity Critical Thinking Decision-Making Discipline Emotions Entrepreneurs Etiquette Feedback Getting Along Getting Things Done Goals Great Manager Leadership Leadership Lessons Likeability Mental Models Mentoring Mindfulness Motivation Networking Parables Performance Management Persuasion Philosophy Problem Solving Procrastination Relationships Simple Living Social Life Social Skills Stress Thinking Tools Thought Process Time Management Winning on the Job Wisdom Worry

About: Nagesh Belludi [hire] is a St. Petersburg, Florida-based freethinker, investor, and leadership coach. He specializes in helping executives and companies ensure that the overall quality of their decision-making benefits isn’t compromised by a lack of a big-picture understanding.

Get Updates

Signup for emails

Subscribe via RSS

Contact Nagesh Belludi

RECOMMENDED BOOK:
The 48 Laws of Power

The 48 Laws of Power: Robert Greene

Robert Greene's controversial bestseller about manipulative people and advance your cause---or how to understand others and protect yourself from the nefarious.

Explore

  • Announcements
  • Belief and Spirituality
  • Business Stories
  • Career Development
  • Effective Communication
  • Great Personalities
  • Health and Well-being
  • Ideas and Insights
  • Inspirational Quotations
  • Leadership
  • Leadership Reading
  • Leading Teams
  • Living the Good Life
  • Managing Business Functions
  • Managing People
  • MBA in a Nutshell
  • Mental Models
  • News Analysis
  • Personal Finance
  • Podcasts
  • Project Management
  • Proverbs & Maxims
  • Sharpening Your Skills
  • The Great Innovators

Recently,

  • The Loss Aversion Mental Model: A Case Study on Why People Think Spirit is a Horrible Airline
  • How to … Read More Books
  • Inspirational Quotations #957
  • Tips for Working for a Type-A Boss
  • Evolution, Not Revolution
  • Inspirational Quotations #956
  • Quantity is the Path to Quality

Unless otherwise stated in the individual document, the works above are © Nagesh Belludi under a Creative Commons BY-NC-ND license. You may quote, copy and share them freely, as long as you link back to RightAttitudes.com, don't make money with them, and don't modify the content. Enjoy!