Andrew 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.
[3] As a result of his work at Intel, along with his books and professional articles, Grove had a considerable influence on electronics manufacturing industries worldwide.
[4] 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.
"[5][6] One source notes that by his accomplishments at Intel alone, he "merits a place alongside the great business leaders of the 20th century.
[1][10] Grove summarized his first twenty years of life in Hungary in his memoirs: By the time I was twenty, I had lived through a Hungarian Fascist dictatorship, German military occupation, the Nazis' "Final Solution," the siege of Budapest by the Soviet Red Army, a period of chaotic democracy in the years immediately after the war, a variety of repressive Communist regimes, and a popular uprising that was put down at gunpoint... [where] many young people were killed; countless others were interned.
[4] Grove worked initially as the company's director of engineering, and helped get its early manufacturing operations started.
[15]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.
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.
[15] Probably no one person has had a greater influence in shaping Intel, Silicon Valley, and all we think about today in the technology world than Andy Grove.
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.
As CEO, he wanted his managers to always encourage experimentation and prepare for changes, making a case for the value of paranoia in business.
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.
[26]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.
[28] 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.
He encouraged companies to aim for industry leadership and constantly seek ways to improve their offerings, processes and operations.
"[32]Grove fostered a culture of open communication where employees were encouraged to speak their minds in a "constructive confrontation" approach.
"[34] As a testament to this ethos, there were no executive perks at Intel, including special dining rooms, washrooms, or parking spots.
[15] 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."
[36] 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.
"[39] While Grove supported helping technology startups, he also felt that America was wrong in thinking that those new companies would increase employment.
"[40] 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?
[41] He explained the causes and effects of many business's growth plans: Each company, ruggedly individualistic, does its best to expand efficiently and improve its own profitability.
However, our pursuit of our individual businesses, which often involves transferring manufacturing and a great deal of engineering out of the country, has hindered our ability to bring innovations to scale at home.
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.
[44] 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.
[46] 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.
[47] 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.