Bite sized insights

Business Management

High Output Management (Summary)

by Andrew S. Grove

Imagine your team's work is a factory producing the perfect breakfast: a three-minute boiled egg, a piece of toast, and coffee. If the egg is overcooked, do you blame the chicken? If the toast is burnt, do you inspect every slice? Andy Grove, the legendary CEO of Intel, argues that this is exactly how you should think about management. Your job is not to make the breakfast yourself, but to design, debug, and scale the breakfast-making system.

A Manager's Output Is Their Team's Output

The success of a manager is not measured by their individual contributions, but by the collective output of their team and the teams they influence. The goal is to find and execute high-leverage activities—actions that generate a large amount of output for a small investment of your time.

Spending an hour preparing for and conducting a training session for ten engineers is a high-leverage activity. That single hour can improve the productivity of the entire team for weeks. In contrast, jumping in to write a piece of code for a subordinate is a low-leverage activity; it completes one task but teaches nothing and doesn't scale.

The One-on-One Is the Subordinate's Meeting

The one-on-one meeting is a manager's most valuable tool for information gathering and coaching. Crucially, Grove insists the subordinate should set the agenda. It is their time to bring up complex problems, half-formed ideas, and anxieties that don't fit into a standard status report.

If an employee comes to a one-on-one with only a simple list of status updates, an effective manager pushes back, asking, 'What are you worried about? What's the biggest challenge you're facing right now?' This prompts the employee to surface the 'messy' but important issues, allowing the manager to truly coach and remove roadblocks.

Manage the Person, Not the Title

The right management style—from highly directive to hands-off—is not based on an employee's seniority or job title, but on their 'Task-Relevant Maturity' (TRM) for a specific task. A seasoned executive can have low TRM for a brand-new responsibility.

A veteran VP of Sales has a very high TRM for negotiating a big contract and should be left alone. However, if that same VP is tasked with implementing a new CRM software for the first time, her TRM for that specific task is low. The manager must switch to a highly structured approach with clear instructions and frequent check-ins until her TRM for that task increases.

Meetings Are a Medium of Work, Not a Nuisance

Grove views meetings not as interruptions to work, but as the work itself for a manager. He categorizes meetings by their purpose: 'process-oriented' (like one-on-ones) for regular information flow and 'mission-oriented' (like a new product review) for solving a specific problem and making a decision.

A mission-oriented meeting to decide on a product launch date should have a clear chairperson, a pre-circulated agenda, and a clear decision as the output. If the attendees leave without a decision being made, the meeting has failed and wasted thousands of dollars in salary time. The manager, as the meeting's 'owner,' is responsible for that expensive failure.

Go deeper into these insights in the full book.
Buy on Amazon
As an Amazon Associate, qualifying purchases help support this site.