High Output Management

by Andrew S. Grove

The most common problem is something we call the peer-group syndrome. A number of years ago, at Intel’s very first management training session, we tried some role-playing to show people what can occur when a group of peers meets to solve a problem or make a decision. We sat the people around a table to tackle what was then a live issue for them in their real jobs. Everyone was an organizational equal. The chairman of the meeting was one level higher, but was purposely sent out of the room so he couldn’t hear what was to happen. Observers in the audience couldn’t believe their eyes and ears as the mock meeting proceeded. The managers working on the problem did nothing but go around in circles for some fifteen minutes, and none of them noticed they weren’t getting anywhere. When the chairman was brought back in, he sat down and listened for a while and couldn’t believe things either. We watched him lean forward as if he were trying to glean more from the conversation. We then saw a black cloud form over his head; finally he slapped the table and exclaimed, “What’s going on here? You people are talking in circles and getting nowhere.” After the chairman intervened, the problem was resolved in very short order. We named this the peer-plus-one approach, and have used it since then to aid decision-making where we must. Peers tend to look for a more senior manager, even if he is not the most competent or knowledgeable person involved, to take over and shape a meeting. Why? Becaus...