In case you missed it, Intel CEO Bob Swan is stepping down from his role effective February 15 and will be replaced by current VMware CEO Pat Gelsinger. Gelsinger was the former CTO at Intel for a number of years before leaving to run EMC and VMware. His return is a bright spot in an otherwise dismal past few months for the chip giant.
Why is Gelsinger’s return such a cause for celebration? The analysts that have been interviewed say that Intel has been in need of a technical leader for a while now. Swan came from the office of the CFO to run Intel on an interim basis after the resignation of Brian Krzanich. The past year has been a rough one for Intel, with delays in their new smaller chip manufacturing process and competition heating up from long-time rival AMD but also from new threats like ARM being potentially sold to NVIDIA. It’s a challenging course for any company captain to sail. However, I think one key thing makes is nigh impossible for Swan.
Swan is a manager. That’s not meant as a slight inasmuch as an accurate label. Managers are people that have things and look after them. Swan came from the financial side of the house where you have piles of resources and you do your best to account for them and justify their use. It’s Management 101. Managers make good CEOs for a variety of companies. They make sure that the moves are small and logical and will pay off in the future for the investors and eventually the workers as well. They are stewards first and foremost. When their background comes from something with inherent risk they are especially stewardly.
You know who else was a manager? John Sculley, the man who replaced Steve Jobs at Apple back in 1983. Sculley was seen as a moderating force to Jobs’ driving vision and sometimes reckless decision making skills. Sculley piloted the ship into calm waters at first but was ultimately sent packing because his decisions were starting to make less and less sense, such as exploring options to split Apple into separate companies and taking on IBM head-to-head on their turf.
Sculley was ousted and Jobs returned to Apple in 1993. It wasn’t easy at first but eventually the style of Jobs started producing results. Things like the iPod, iMac, and eventually the iPhone came from his vision. He’s a leader in that regard. Leaders are the ones that jump out and take risks to make big results. Leaders are people like John Kennedy that give a vision of going to the moon in a decade without the faintest idea how that might happen. Leadership is what drives companies.
Leaders, however, are a liability without managers. Leaders say “let’s go to the moon!” Managers sit down and figure out how to make that happen without breaking the budgets or losing too many people along the way. Managers are the grounded voices that guide leaders. Without someone telling a leader of the challenges to overcome they won’t see the roadblocks until the drive right into them.
Leaders without brakes on their vision have no reality to shape it. Every iMac has an Apple Lisa. Every iPod has the iPod Hi-Fi. Even the iPhone wasn’t the iPhone until the App Store came around against the original vision of Apple’s driving force. To put it another way, George Lucas is a visionary leader in filmmaking. However, when he was turned loose without management of his process we ended up with the messy prequel trilogy. Why was Empire Strikes Back such a good film? Because it had people like Lawrence Kasdan involved managing the process of Lucas creating art. They helped focus the drive of a leader and make the result something great.
Let’s bring this discussion back to Intel and Pat Gelsinger. I know he is the best person to lead Intel right now. I know that because Gelsinger is very much a tech leader. He has visions for how things need to be and he can see how to get there. He knows that reducing costs and reaving product lines at Intel isn’t going to make them a better company down the road no matter what the activist investors have to say on the matter. They may have wanted regime change when they petitioned the board back in December, but they may find the new king a bit harder to deal with.
Gelsinger is also a manager. Going from CTO to being COO at EMC and eventually CEO at VMware has tempered his technical chops. You can’t hope to run a company on crazy ideas and risky bets. Steve Jobs had people like Tim Cook in the background keeping him as grounded in reality as possible. Gelsinger picked up these skills in helming VMware and I think that’s going to pay off for him at Intel. Rather than running out to buy another company to augment capabilities that will never see the light of day, someone like him can see the direction that Intel needs to go and make it happen in a collected manner. No more FPGA acquisitions that never bear fruit. No more embarrassing sales of the mobile chip division because no one could capitalize on it.
Pat Gelsinger is the best kind of technical manager. I saw it in the one conversation I was involved in with him during an event. He stepped in to a talk between myself and a couple of analysts. He listened to them and to me and when he was asked for his opinion, he stopped for a moment to think. He asked a question to clarify and then gave his answer. That’s a tempered leader approach to things. He listened. He thought. He clarified. And then he made a decision. That means there is steel behind the fire. That means the driving factors of the decision-making process aren’t just “cool stuff” or “save as much money as we can”. What will happen is the fusion of the two that the company needs to stay relevant in a world that seems bent on passing it by.
I’ve worked for managers and I’ve worked for leaders. I don’t have a preference for one or the other. I’ve seen leaders sell half their assets to save their company. I’ve also seen them buy ridiculous stuff in an effort to build something that no one would buy. I’ve seen managers keep things calm in the middle of a chaotic mess. I’ve also seen them so wracked with indecision that the opportunities they needed to capitalize on sailed off into the sunset. If you want to be the best person to run a company as the CEO, whether it’s a hundred people or a hundred thousand, you should look to someone like Pat Gelsinger. He’s the best combination of a manager and leader that I’ve seen in a long time. In five years we will be talking about how he was the one to bring Intel back to the top of the mountain, both through his leadership and his management skills.