High Output Management

by Andrew S. Grove

I was once asked to approve the performance review of a general manager whose supervisor rated him highly for the year. The manager was responsible for a business unit that lost money, missed its revenue forecast month after month, slipped engineering schedules, and in general showed poor output and internal measures over the year. Accordingly, I could not approve the review. Whereupon his supervisor said, “But he is an outstanding general manager. He is knowledgeable and handles himself well. It’s his organization that did not do well, not the manager himself!” This cut no ice with me because the performance rating of a manager cannot be higher than the one we would accord to his organization! It is very important to assess actual performance, not appearances; real output, not good form. Had the manager been given a high rating, Intel would have signaled to all at the company that to do well, you must “act” like a good manager, talk like one, and emulate one—but you don’t need to perform like one.