Being an entrepreneur, I always understand the imprint that founders have on their organizations.  After all, most of us consider our business ventures akin to our children.  But, it’s also true that an outstanding leader also ends up establishing a decisive imprint on the company s/he leads- even if s/he were not the founder.

Consider just a few of such leaders. Jack Welch of GE.  Bob Goizueta of Coca Cola.  Andy Grove of Intel.   These three PhD Chem E’s (of coruse) managed to guide their enterprises through the shoals of existential crises, ensuring they would be the darlings of the business world.

And, on Monday (21 March 2016), Andy Grove died of cancer and/or Parkinson’s disease.  (Bob Goizueta also died of cancer while he was still with Coke.  Jack is alive and well, hoping his MBA program will become as successful as his GE empire was.)

Andy’s major contribution at Intel was the conversion of the firm from one that supplied commodities (memory chips, under assault from cheap versions coming from Asia) to become the microprocessor designer and pre-eminent manufacturer. While Intel’s products weren’t the key to the first portable computer (the Osborne, also headed by a PhD Chem E), the 8088 chip was quickly replaced by Intel products which fueled the burgeoning PC business around the world.

András Gróf was born in Budapest, where he managed to survive the Holocaust and the Hungarian Revolution (1956) before coming to the US to earn his Chem E PhD (UC Berkeley), after earning BS ChemE from CCNY (City College of New York).  He was among the “brain trust” at Fairchild Semiconductor (while there, he penned the college text, “Physics and Technology of Semiconductor Devices”) before joining Bob Noyce and Gordon Moore (of Moore’s Law) at Intel in 1968 as the first employee after the two founders.

But, it was Andy who applied the discipline and management techniques that propelled Intel to the pinnacle. He served as President or CEO of Intel from 1979 through 1998, and Chairman from 1997 to 2005.   He imbued Intel- from top to bottom- with a philosophy of intellectual curiosity, the sharing of ideas, and a relentless focus on the future and its portents.

If you haven’t read his tomes, you should.  From “High Output Management (HOM)” to “One on One with Andy Grove” to “Only the Paranoid Survive”, Andy shared his outlook and knowledge with all those who wished to partake.  HOM examined the workings of a company from an engineer’s perspective- learning how things work and how one engineers them for better performance.  His focus included the (dreaded) meetings, dealing with people, among other management issues.  He was never interested in adopting a fad, but was always focused on results and the bottom line.

One of his simple rules- managers should let their subordinates do 90% of the talking when meeting with them one-on-one.  Another- subordinates are not only allowed, but encouraged, to speak their minds.  And, decisions are best made after intense debate on the issues.

Andy believed the job of the executive manager was to manipulate his firm’s bearings on the safe course between paranoia and survival.  (“Success breeds complacency.  Complacency breeds failure.  Only the paranoid survive.”)   One of the key concepts he taught (and I certainly used):  What would happen if the Board decided to dismiss us.  What would the new team of executive managers do?  (The corollary- why are we not doing so ourselves?)

Another key fact about Intel under Andy Grove?  Instead of (over)paying its executives, it plowed its profits back into R&D.  That’s the reason Moore’s Law has withstood the test of time—and at one firm, not multiple enterprises.

When Dr. Grove retired, he immersed himself in philanthropic and medical research causes.  And, provided millions of dollars to fund the Grove School of Engineering at his alma mater (CCNY).

How significant was Andy Grove?   I think Brian Krzanich, the current CEO of Intel provided the perfect epitaph.   Andy “made the impossible happen, time and again, and inspired generations of technologists, entrepreneurs, and business leaders.”

Alav HaShalom- May he rest in peace.

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