Expert Analysis by Peter Cohan: He used the five-whys analysis, created by the founder of Toyota, to better understand the recent Intel shakeup. Peter Cohan is the Founder of Peter S. Chohan & Associates, a management consulting and venture capital firm specializing in growth strategy, technology trends, and startup investments:
Pat Gelsinger’s resignation as Intel CEO marks the end of an ambitious yet turbulent tenure. Despite leading efforts to reclaim dominance in chip manufacturing, including $100 billion in fab investments and securing U.S. CHIPS Act funding, Intel’s revenue plummeted by 33%, stock value dropped 66%, and the company posted significant losses. The board attributed these setbacks to Gelsinger’s inability to rapidly execute his turnaround plan, compounded by Intel’s overdependence on declining PC chip sales and its failure to capitalize on growth opportunities like generative AI chips. Critics say Intel has struggled to adapt since Andy Grove’s era, highlighting the risks of capital-intensive strategies without game-changing technology.
My Take
Intel’s shakeup underscores the importance of balancing bold investments with agile execution. Leaders should prioritize future-proofing their business by spotting and betting on emerging trends early rather than clinging to legacy strengths until it’s too late.
#LeadershipLessons #Semiconductors #Intel #AIChips #TechnologyTrends #BusinessStrategy #Innovation
Link to article:
https://www.inc.com/peter-cohan/analysis-why-did-intel-oust-ceo-pat-gelsinger/91034979
Credit: Inc.