…. and recognize it’s time to make a big decision
Andy Grove asked one question that saved Intel from extinction.
The answer resulted in significant changes and cost 8,000 jobs – but resulted in the company becoming much larger and a leader in the computer industry.
Here’s how the major decision happened –
In 1985, Intel was dying.
Profits collapsed from $198 million to less than $2 million in a single year.
Japanese competitors were crushing them in memory chips.
The company that helped build Silicon Valley was becoming irrelevant.
Grove sat in his office with Intel co-founder Gordon Moore and asked – ” If we got kicked out and the Board brought in a new CEO, what would they do ? “
Moore immediately responded – ” They would get us out of memories “.
Grove’s response – ” Why shouldn’t you and I walk out the door, come back and do it ? “
That question changed everything.
Intel laid off 8,000 people, invested over $180 million rebuilding the business, and abandoned the product the company was founded on.
Most of the organization fought the change. The Board of Directors were skeptical.
Grove committed anyway. No hedging. No half-measures. No ” let’s try both for a while “.
Within a decade of going into microprocessors, Intel had over 80 % of the market.
Revenue grew from $1.9 billion to $25.1 billion.
Time Magazine named Andy Grove Man of the Year in 1997.
But here’s what makes this story worth studying –
A. Grove already knew the answer before he asked the question. So did Moore.
B. The data was clear – memory chips were a losing game. Everyone in the business could see it.
C. However, nobody wanted to be the person who killed Intel’s founding product or take the risk to effect meaningful change.
This is where most leaders stall.
They don’t lack information – they lack the courage and willingness to act on known information.
To avoid making a hard decision, they commission reports, form committees, run pilots etc. – that delay dealing with issue, until the market makes the decision for them !
Grove referred to the situation as a ” Strategic Inflection Point ” in his book Only the Paranoid Survive.
The moment where the old strategy is dying – but leadership hasn’t yet committed to the new one.
Most companies die there – not from ignorance – but from indecision.
Here’s what most leaders miss –
– The hardest decisions aren’t the ones where you don’t have enough data.
– They’re the ones where you have plenty of data and don’t pull the trigger.
To get past this challenge, Grove removed himself from the equation to be more objective in doing a situation analysis and to focus on new opportunities.
…. by asking – ” What would our replacement do ? “
That approach cut through the politics, emotions, sunk costs, tradition, familiarity, etc. to effect the change in mindset needed to re-invent the organization and create a new business.
To assess your situation –
1. Look at a decision in the making that has been circling for months.
2. Ask – ” If a new leader walked in tomorrow, what would they do ? “
…. Since you probably already know the answer, the question is “ Will you act on it ? “
For further insights on developing leadership competencies, making good decisions, effecting change, and understanding what’s needed to innovate for impact, see other articles at www.cail.com/BI and elsewhere.
March 20, 2026 CAIL Innovation Commentary info@cail.com www.cail.com 905-940-9000