Losing Faith: How the (Andy) Grove Survivors Led the Decline of Intel's Corporate Culture

What has happened to Andy Grove's Intel? A Wall Street Journal article dated November 1, 2006 stated that Andy Grove "won't talk about current goings on at Intel. He does, though, talk about its past and wistfully. He helped make Intel one of the world's greatest brands; for most men, that would be the prelude to a retirement full of self-satisfaction. Instead, there is much regret that Andy Grove's Intel wasn't able to use its brand name for even one other great thing besides microprocessors." The cult of Andy Grove consisted of a core set of values expressed as certain behaviors that Grove himself forced on employees long before the Intel values were formally published and put on employee badges. What many outsiders don t know is that management s actions within Intel's corporate culture were inconsistent with the published values. After Grove's departure, this gap between management behaviors and the published values was amplified, establishing the impetus for the decline of Intel's performance-based corporate culture. In light of Intel spending over $10 billion on 35 acquisitions, its diversification strategy lacked an overall execution plan for tying it all together and making it work within their existing business and economic models. Intel s lackluster stock market performance over the past six years has not prevented many investors from hoping that the stock will once again repeat its past stellar performance. The world has changed and the business model that made Intel the behemoth that it is today may have lost its relevance. More importantly, the culture that in the past fueled Intel s growth has now become ossified. In contrast to Andy Grove's reticence about the current Intel, the authors of Losing Faith share their objective observations on the post-Grove Intel, with its cultural anomalies that attempt to explain why the company has not been able to successfully diversify beyond its Grove-led dominance in microprocessors.