"A team will perform well only if peak performance is elicited from the individuals in it." (Andrew S Grove, "High Output Management", 1983)
"As for cultural values, management has to develop and nurture the common set of values, objectives, and methods essential for the existence of trust. How do we do that? One way is by articulation, by spelling out these values, objectives, and methods. The other, even more important, way is by example. If our behavior at work will be regarded as in line with the values we profess, that fosters the development of a group culture." (Andrew S Grove, "High Output Management", 1983)
"Automation is certainly one way to improve the leverage of all types of work. Having machines to help them, human beings can create more output. But in both widget manufacturing and administrative work, something else can also increase the productivity of the black box. This is called work simplification. To get leverage this way, you first need to create a flow chart of the production process as it exists. Every single step must be shown on it; no step should be omitted in order to pretty things up on paper. Second, count the number of steps in the flow chart so that you know how many you started with. Third, set a rough target for reduction of the number of steps." (Andrew S Grove, "High Output Management", 1983)
"Because the art and science of forecasting is so complex,
you might be tempted to give all forecasting responsibility to a single manager
who can be made accountable for it. But this usually does not work very well.
What works better is to ask both the manufacturing and the sales departments to
prepare a forecast, so that people are responsible for performing against their
own predictions."
"But in the end self-confidence mostly comes from a gut-level realization that nobody has ever died from making a wrong business decision, or taking inappropriate action, or being overruled. And everyone in your operation should be made to understand this." (Andrew S Grove, "High Output Management", 1983)
"In effect, the lack of a decision is the same as a negative decision; no green light is a red light, and work can stop for a whole organization." (Andrew S Grove, "High Output Management", 1983)
"In other words, the output of the planning process is the decisions made and the actions taken as a result of the process." (Andrew S Grove, "High Output Management", 1983)
"[...] in the work of the soft professions, it becomes very difficult to distinguish between output and activity. And as noted, stressing output is the key to improving productivity, while looking to increase activity can result in just the opposite." (Andrew S Grove, "High Output Management", 1983)
"Indicators tend to direct your attention toward what they are monitoring. It is like riding a bicycle: you will probably steer it where you are looking. If, for example, you start measuring your inventory levels carefully, you are likely to take action to drive your inventory levels down, which is good up to a point. But your inventories could become so lean that you can’t react to changes in demand without creating shortages. So because indicators direct one’s activities, you should guard against overreacting. This you can do by pairing indicators, so that together both effect and counter-effect are measured. Thus, in the inventory example, you need to monitor both inventory levels and the incidence of shortages. A rise in the latter will obviously lead you to do things to keep inventories from becoming too low." (Andrew S Grove, "High Output Management", 1983)
"[...] leverage, which is the output generated by a specific type of work activity. An activity with high leverage will generate a high level of output; an activity with low leverage, a low level of output." (Andrew S Grove, "High Output Management", 1983)
"Leading indicators give you one way to look inside the black box by showing you in advance what the future might look like. And because they give you time to take corrective action, they make it possible for you to avoid problems." (Andrew S Grove, "High Output Management", 1983)
"Managerial productivity - that is, the output of a manager per unit of time worked - can be increased in three ways: 1. Increasing the rate with which a manager performs his activities, speeding up his work. 2. Increasing the leverage associated with the various managerial activities. 3. Shifting the mix of a manager’s activities from those with lower to those with higher leverage." (Andrew S Grove, "High Output Management", 1983)
"Much confusion exists between what is strategy and what is tactics. Although the distinction is rarely of practical significance, here’s one that might be useful. As you formulate in words what you plan to do, the most abstract and general summary of those actions meaningful to you is your strategy. What you’ll do to implement the strategy is your tactics. Frequently, a strategy at one managerial level is the tactical concern of the next higher level." (Andrew S Grove, "High Output Management", 1983)
"Reports are more a medium of self-discipline than a way to communicate information. Writing the report is important; reading it often is not." (Andrew S Grove, "High Output Management", 1983)
"So because indicators direct one’s activities, you should
guard against overreacting. This you can do by pairing indicators, so that
together both effect and counter-effect are measured. […] In sum, joint monitoring
is likely to keep things in the optimum middle ground."
"Someone adhering to the values of a corporate culture - an
intelligent corporate citizen- will behave in consistent fashion under similar
conditions, which means that managers don’t have to suffer the inefficiencies
engendered by formal rules, procedures, and regulations. […] management has to
develop and nurture the common set of values, objectives, and methods essential
to the existence of trust. How do we do that? One way is by articulation, by
spelling [them] out. […] The other even more important way is by example."
"Stressing output is the key to improving productivity, while looking to increase activity can result in just the opposite." (Andrew S Grove, "High Output Management", 1983)
"The art of management lies in the capacity to select from the many activities of seemingly comparable significance the one or two or three that provide leverage well beyond the others and concentrate on them." (Andrew S Grove, "High Output Management", 1983)
"The first rule is that a measurement - any measurement - is better than none. But a genuinely effective indicator will cover the output of the work unit and not simply the activity involved. […] If you do not systematically collect and maintain an archive of indicators, you will have to do an awful lot of quick research to get the information you need, and by the time you have it, the problem is likely to have gotten worse."(Andrew S Grove, "High Output Management", 1983)
"The number of possible indicators you can choose is virtually limitless, but for any set of them to be useful, you have to focus each indicator on a specific operational goal. […] Put another way, which five pieces of information would you want to look at each day, immediately upon arriving at your office?" (Andrew S Grove, "High Output Management", 1983)
"[...] the output of a manager is a result achieved by a group either under her supervision or under her influence. While the manager’s own work is clearly very important, that in itself does not create output. Her organization does." (Andrew S Grove, "High Output Management", 1983)
"The role of the manager here is also clear: it is that of the coach. First, an ideal coach takes no personal credit for the success of his team, and because of that his players trust him. Second, he is tough on his team. By being critical, he tries to get the best performance his team members can provide. Third, a good coach was likely a good player himself at one time. And having played the game well, he also understands it well." (Andrew S Grove, "High Output Management", 1983)
"The single most important task of a manager is to elicit peak performance from his subordinates. So if two things limit high output, a manager has two ways to tackle the issue: through training and motivation." (Andrew S Grove, "High Output Management", 1983)
"There is no question that having standards and believing in them and staffing an administrative unit objectively using forecasted workloads will help you to maintain and enhance productivity." (Andrew S Grove, "High Output Management", 1983)
"Your general planning process should consist of analogous thinking. Step 1 is to establish projected need or demand: What will the environment demand from you, your business, or your organization? Step 2 is to establish your present status: What are you producing now? What will you be producing as your projects in the pipeline are completed? Put another way, where will your business be if you do nothing different from what you are now doing? Step 3 is to compare and reconcile steps 1 and 2. Namely, what more (or less) do you need to do to produce what your environment will demand?" (Andrew S Grove, "High Output Management", 1983)
"Your information sources should complement one another, and also be redundant because that gives you a way to verify what you’ve learned." (Andrew S Grove, "High Output Management", 1983)
"You can’t judge the significance of strategic inflection points by the quality of the first version. You need to draw on your experience [...] you must discipline yourself to think things through and separate the quality of the early versions from the longer-term potential and significance of a new product or technology." (Andrew S Grove, 1996)
"When the basics of the business are undergoing profound change, [existing management] must adopt an outsider’s intellectual objectivity [...] unfettered by an emotional attachment to the past." (Andrew S Grove, 1996)
"[...] a strategic inflection point is a time in the life of business when its fundamentals are about to change. That change can mean an opportunity to rise to new heights. But it may just as likely signal the beginning of the end." (Andrew S Grove, "Only the Paranoid Survive", 1998)
"Admitting that you need to learn something new is always difficult. It is even harder if you are a senior manager who is accustomed to the automatic deference which people accord you owing to your position. But if you don’t fight it, that very deference may become a wall that isolates you from learning new things. It all takes self-discipline." (Andrew S Grove, "Only the Paranoid Survive", 1998)
"Altogether too often, people substitute opinions for facts and emotions for analysis." (Andrew S Grove, "Only the Paranoid Survive", 1998)
"Business success contains the seeds of its own destruction. The more Successful you are, the more people want a chunk of your business and then another chunk and then another until there is nothing." (Andrew S Grove, "Only the Paranoid Survive", 1998)
"Of course, you can’t spend all of your time listening to random inputs. But you should be open to them. As you keep doing it, you will develop a feel for whose views are apt to contain gems of information and a sense of who will take advantage of your openness to clutter you with noise. Over time, then, you can adjust your receptivity accordingly." (Andrew S Grove, "Only the Paranoid Survive", 1998)
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