Intel Prepares Its Top Leaders
Yimin Cao (hc4428)
Professor Jim Riley
MGMT 3614-01
Case for Analysis: Intel Prepares Its Top Leaders In spring of 2005, Paul Otellini became the new CEO of the Intel. In fact, according to the article, Otellini is the fifth homegrown CEO to run the Intel since its launch in 1968, which suggests that there’s an “Intel inside” aspect to its management formulas as well as its high-performance chips. To recruit the CEO from the inside seems to work well for Intel, and actually it is a sound policy. First at all, recruiting the CEO from the inside ensures their loyalty to the company, so the chief executive changes will be less likely to influence the company. These homegrown CEOs know more about the company, and because they all working in Intel for a long time, in their eyes, Intel is their home, not only a working place. Since that, they will try them best to make the most suitable decision for Intel and devote themselves to company’s development. Second, Planning ahead in this way can avoid gossip, infighting, or drama over the identity of the new boss. All employees in the company know their new CEO, because they all work with the new CEO for a long time. It is really important for new CEO to establish trust between both employees and managers. So if the new CEO is recruit from the inside, it will be much easier for them to build up trusting relationship with those employees, and it is really good for the company. Third, there will be enough time for old CEOs to transfer their work to new CEOs, and help them get into the new roles. As it mentioned in the article, “At Intel, CEOs and their apprentices swap roles to streamline performance where it’s needed. The practice flows out of a wider Intel ideal, known internally as ‘two in a box’” (Chris Nuttall). By encouraging overlapping duties and responsibilities, Intel managers can better support on another in a crisis. So the policy help Intel remain stable in every period, when it needs to transfer one’s
Professor Jim Riley
MGMT 3614-01
Case for Analysis: Intel Prepares Its Top Leaders In spring of 2005, Paul Otellini became the new CEO of the Intel. In fact, according to the article, Otellini is the fifth homegrown CEO to run the Intel since its launch in 1968, which suggests that there’s an “Intel inside” aspect to its management formulas as well as its high-performance chips. To recruit the CEO from the inside seems to work well for Intel, and actually it is a sound policy. First at all, recruiting the CEO from the inside ensures their loyalty to the company, so the chief executive changes will be less likely to influence the company. These homegrown CEOs know more about the company, and because they all working in Intel for a long time, in their eyes, Intel is their home, not only a working place. Since that, they will try them best to make the most suitable decision for Intel and devote themselves to company’s development. Second, Planning ahead in this way can avoid gossip, infighting, or drama over the identity of the new boss. All employees in the company know their new CEO, because they all work with the new CEO for a long time. It is really important for new CEO to establish trust between both employees and managers. So if the new CEO is recruit from the inside, it will be much easier for them to build up trusting relationship with those employees, and it is really good for the company. Third, there will be enough time for old CEOs to transfer their work to new CEOs, and help them get into the new roles. As it mentioned in the article, “At Intel, CEOs and their apprentices swap roles to streamline performance where it’s needed. The practice flows out of a wider Intel ideal, known internally as ‘two in a box’” (Chris Nuttall). By encouraging overlapping duties and responsibilities, Intel managers can better support on another in a crisis. So the policy help Intel remain stable in every period, when it needs to transfer one’s
Cited: Gibson, James L. "Leadership: Emerging Perspectives." Organizations: Behavior, Structure, Processes. Irwin: McGraw-Hill, 2012. N. pag. Print. Capstone Publishing (2003). The Capstone Encyclopaedia of Business. Oxford, U.K.: Capstone Publishing. pp. 79–80. ISBN 1-84112-053-7. Associated Press. "Intel CEO Paul Otellini to Retire in Surprise Move." Fox News. FOX News Network, 20 Nov. 2012. Web. 16 Feb. 2013.