Grove (Paranoia): Leadership
Summer Institute 2010
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Only the paranoid survive
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Andrew Grove, Intel
Immigrant, CEO, Chair of Board
Experiences through 1990s
Only the paranoid survive
Andrew Grove, Intel
Immigrant, CEO, Chair of Board
Experiences (in Only the
paranoid …) through 1990s
Grove’s Forces Affecting
Institutions
Bu si nes ses a re a ffec ted by c hange th
1. Co m pe tit ors
rough six ma in channe ls , pe r G rove .
2.Co m plem en tor s
3. Cu st om er s
B usi n es s
4. S upp li er s
5. P oten ti al cu st om ers
6. C a n bu sin e ss chang e how it
wo rks?
F igu re 2 . Si x F orce s A ffe cti ng a Bu sin e ss
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Competitors
Complementors
Customers
Suppliers
Potential customers
New businesses and business paradigms
10 X Force -- Grove
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A 10X force …
 A change larger than business is used to
 E.g., Wal-Mart comes into small town
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10X forces In education?
 What if someone showed up & provided
training and education better, faster, and
cheaper than community colleges?
 Are there examples of 10X forces we
experience?
Grove’s Strategic Inflection
Point
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A 10X force triggers change. A company (or
college, or person) adapts and survives -- or not.
Vertical Organization
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Former structure of computer industry was
vertical
Products made by one company -- and did not
work with products from another company
This shifted to horizontal by around 1995
Horizontal Organization
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Multiple companies compete via same products
Products usable on other company’s products
(e.g., Adobe software on Macs and Windows)
How is education organized?
Higher Education: Vertical or
Horizontal -- or Stratified?
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To extent credits earned in one institution cannot be used
at another -- vertical
To extent that credits are “portable” (transferable) -horizontal
In many ways -- education is more horizontal than vertical
But it is often depicted in stratified, hierarchical way
Education -- Changing?
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20% of CC students
may come from
baccalaureates -600,000 students
nationwide
The stratified model
may not reflect
“swirling” patterns of
student enrollment
Education -- Changing?
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Strategic inflection points
moved computing from
vertical to horizontal
What points put pressure
on education?
How have those points -and how will they -- make
education change?
Consider -- h.s. in
college, college in h.s.,
Bacc in CCs, etc.
Grove’s Tips for Leaders
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Involve all levels of
organization
Middle management & front
line staff often see changes
first -- snow melts on the
periphery
Listen for signals vs. noise
Pay attention to Cassandras
Let chaos reign -- then rein
in chaos
Grove’s Tips for Leaders
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Use data, but …
Use intuition too -data show what “has
been,” strategic
inflection points show
what is coming
Note strategic
dissonance -- are
your actions different
that what you say?
Grove’s Tips for Leaders
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Change while you
and team are strong
Change fast
Experiment regularly
Use vision and goals
to get through the
Valley of Death when
hit by a 10X force
Use strategic plans
and strategic actions
Adjust to the new
Things WILL change
Denise
What are the leaders of tomorrow like? …