Ahhhh... the McKinsey and Company folk. I hope Intel hasn't had McKinsey come through and adjust their business, although it would explain a lot of things about their performance.
Bob Swan is trying to make up his deficiency in technical knowledge by hiring this guy. But because Bob Swan is a CFO and probably comes from an MBA background, he feels comfortable knowing that this guy is also from a consulting company.
Basically just politics. Bob Swan trying to win back some power internally when the engineers are stealing power away from him due to his lack of technical knowledge.
I've seen this movie many times.
Intel needs a technical CEO, not an MBA CEO, so bad right now. They need a Lisa Su or Lisa Su herself.
Both Nvidia and AMD are led by highly technical engineering CEOs. Lisa Su has a PhD.
Sure, and McKinsey apply a bunch of corporate feng-shui that doesn't actually fix the company's problems, but usually serves to calm the nerves of shareholders long enough for the execs to cash out before everything falls apart.
"3D NAND, FPGA, Connectivity, Edge, IoT, Automotive" all fields in which Intel's acquisitions/investments have under performed its competitors... so I guess there are plenty of opportunities to improve.
Hopefully they won't keep following the same approach of acquiring apparently promising start-ups just to write down its value in a few quarters, but if they do a M&A guy is surely who they want for that.
I'm sorry but I'd never hire someone who spent 25 years at McKinsey. Hell, I wouldn't hire anyone from McKinsey period.
They're all very good at "talking". But when it comes to execute, they suck.
Last of all, I'd never hire someone who has worked at McKinsey for 25 years to lead leading technology like 3D NAND, FPGA, etc. All they can do is talk. You need an execution focused leader in those fields.
Let's not apply the broad stroke of an interpretation of a whole corporation's culture to the performance of one man. I wish him the best and hope he helps the struggling titan.
They need to get rid of Bob Swan first. You can have a non-technical CEO at a highly technical company if you have the technology lead. But now that you've lost it, you need to hire a technical CEO.
Right now, the Intel CEO is probably just a sitting duck. He has no vision. He's probably just saying yes to a technical staff that is bossing him around. Hence, he's hiring this guy to help him manage the technical staff. When you're not technical but work in a technical company, employees don't respect you. Believe me. I've seen this numerous times.
If I'm an Intel engineer, I'd see this as a bs hire. Why bring in someone, who I'm sure is capable, from a consultant company? Why not elevate someone internally? Even if he has a technical degree, it doesn't mean he knows a thing about nodes, designing semiconductors, etc.
Bob Swan is just playing the politics game. When you're non-technical in a highly technical company, sometimes all you can do is play politics.
I was wondering about this. He has whole a bunch of reports now, so Swan's job is making sure they do their jobs... sounds like a $50K p/a proposition to me.
Intel is going lower and lower, hiring lots of people to make up for the existing people that aren't so good for their roles. For example, mister Bob Swan is totally inappropriate for its position, being a financial person, not a technical person. Intel needs to be run by engineers who also have good financial knowledge like Jen Hsun at nvidia, Lisa at AMD, Elon at Tesla. Unfortunately, with Bob at the helm Intel is focusing on the wrong things like reaching new markets, improving their margins, blah, blah, blah. Intel as a company was built and reached this level thanks to engineering excellence not by chasing financial figures. As I see it, Intel will get back on track when Bob Swan is replaced by a tech guy. Until then, it will be a continuous downhill for them...
Oh, and I've just figured it out... This guy is a replacement for Mr Murthy Reduchitala. Bob had to fire him to be like a punishment for the 7nm delay, but now he got another dude to do the same thing as Mr Murthy. I truly suspect Bob Swan is a pretty selfish and dictator like CEO who hasn't got the courage to say "hey, I am not fit for this role, lets give the place to someone better". I wonder why stakeholders don't see this issue or maybe they are just focused on the money.
People made a lot of similar noises at Apple when they hired Tim Cook, and yet he took Apple to heights that Jobs didn't, in a shorter time at the helm.
To be fair, Cook came in after Jobs had effectively created a walled garden from which there is little-to-no escape for those contained within. All Cook has had to do is keep on swimming, though his smartest move has been diversifying their product portfolio.
Apple have also made an absolute host of cock-ups since then, with no real innovation to speak of (fucking touch bar, seriously) - but much like Intel, the cock-ups don't harm them because of the aforementioned captive audience.
A McKinsey hire is like getting that quintessentially 80s business guy from Futurama to run a division, gonna talk a big game, but fail to deliver anything real
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cycomiko - Tuesday, September 22, 2020 - link
Ahhhh... the McKinsey and Company folk. I hope Intel hasn't had McKinsey come through and adjust their business, although it would explain a lot of things about their performance.icoreaudience - Tuesday, September 22, 2020 - link
Indeed, this is a worrying trend.senttoschool - Tuesday, September 22, 2020 - link
Bob Swan is trying to make up his deficiency in technical knowledge by hiring this guy. But because Bob Swan is a CFO and probably comes from an MBA background, he feels comfortable knowing that this guy is also from a consulting company.Basically just politics. Bob Swan trying to win back some power internally when the engineers are stealing power away from him due to his lack of technical knowledge.
I've seen this movie many times.
Intel needs a technical CEO, not an MBA CEO, so bad right now. They need a Lisa Su or Lisa Su herself.
Both Nvidia and AMD are led by highly technical engineering CEOs. Lisa Su has a PhD.
beginner99 - Wednesday, September 23, 2020 - link
26 years at a consulting company means this guy has 0 clue about how to work in big corporate.Kvaern1 - Wednesday, September 23, 2020 - link
Big Corporate goes to McKinsey when Big Corporate doesn't know what to do. That's how it works.Just saying.
Spunjji - Monday, September 28, 2020 - link
Sure, and McKinsey apply a bunch of corporate feng-shui that doesn't actually fix the company's problems, but usually serves to calm the nerves of shareholders long enough for the execs to cash out before everything falls apart.beginner99 - Wednesday, September 23, 2020 - link
So true. lol. Well no actually it's pretty sad and worrying.Arsenica - Tuesday, September 22, 2020 - link
"3D NAND, FPGA, Connectivity, Edge, IoT, Automotive" all fields in which Intel's acquisitions/investments have under performed its competitors... so I guess there are plenty of opportunities to improve.Hopefully they won't keep following the same approach of acquiring apparently promising start-ups just to write down its value in a few quarters, but if they do a M&A guy is surely who they want for that.
senttoschool - Tuesday, September 22, 2020 - link
I'm sorry but I'd never hire someone who spent 25 years at McKinsey. Hell, I wouldn't hire anyone from McKinsey period.They're all very good at "talking". But when it comes to execute, they suck.
Last of all, I'd never hire someone who has worked at McKinsey for 25 years to lead leading technology like 3D NAND, FPGA, etc. All they can do is talk. You need an execution focused leader in those fields.
Sivar - Monday, September 28, 2020 - link
Let's not apply the broad stroke of an interpretation of a whole corporation's culture to the performance of one man. I wish him the best and hope he helps the struggling titan.wrkingclass_hero - Tuesday, September 22, 2020 - link
Intel is a ship with a hole in the bottom, and his job is to get it pointed in the right direction.jeremyshaw - Tuesday, September 22, 2020 - link
*gestures a ship sinking fast*Spunjji - Monday, September 28, 2020 - link
Solid analogy.senttoschool - Tuesday, September 22, 2020 - link
They need to get rid of Bob Swan first. You can have a non-technical CEO at a highly technical company if you have the technology lead. But now that you've lost it, you need to hire a technical CEO.Right now, the Intel CEO is probably just a sitting duck. He has no vision. He's probably just saying yes to a technical staff that is bossing him around. Hence, he's hiring this guy to help him manage the technical staff. When you're not technical but work in a technical company, employees don't respect you. Believe me. I've seen this numerous times.
senttoschool - Tuesday, September 22, 2020 - link
If I'm an Intel engineer, I'd see this as a bs hire. Why bring in someone, who I'm sure is capable, from a consultant company? Why not elevate someone internally? Even if he has a technical degree, it doesn't mean he knows a thing about nodes, designing semiconductors, etc.Bob Swan is just playing the politics game. When you're non-technical in a highly technical company, sometimes all you can do is play politics.
wr3zzz - Wednesday, September 23, 2020 - link
Hiring a career McKinsey guy into the C-suite is so 90s. There is a reason it went out of fashion.Also, strategy is literally the last thing left for CEO to do. There are already CFO, COO, CMO and CIO doing his other works.
Spunjji - Monday, September 28, 2020 - link
I was wondering about this. He has whole a bunch of reports now, so Swan's job is making sure they do their jobs... sounds like a $50K p/a proposition to me.yeeeeman - Wednesday, September 23, 2020 - link
Intel is going lower and lower, hiring lots of people to make up for the existing people that aren't so good for their roles. For example, mister Bob Swan is totally inappropriate for its position, being a financial person, not a technical person. Intel needs to be run by engineers who also have good financial knowledge like Jen Hsun at nvidia, Lisa at AMD, Elon at Tesla. Unfortunately, with Bob at the helm Intel is focusing on the wrong things like reaching new markets, improving their margins, blah, blah, blah. Intel as a company was built and reached this level thanks to engineering excellence not by chasing financial figures.As I see it, Intel will get back on track when Bob Swan is replaced by a tech guy. Until then, it will be a continuous downhill for them...
yeeeeman - Wednesday, September 23, 2020 - link
Oh, and I've just figured it out...This guy is a replacement for Mr Murthy Reduchitala. Bob had to fire him to be like a punishment for the 7nm delay, but now he got another dude to do the same thing as Mr Murthy. I truly suspect Bob Swan is a pretty selfish and dictator like CEO who hasn't got the courage to say "hey, I am not fit for this role, lets give the place to someone better". I wonder why stakeholders don't see this issue or maybe they are just focused on the money.
nucc1 - Sunday, September 27, 2020 - link
People made a lot of similar noises at Apple when they hired Tim Cook, and yet he took Apple to heights that Jobs didn't, in a shorter time at the helm.Spunjji - Monday, September 28, 2020 - link
To be fair, Cook came in after Jobs had effectively created a walled garden from which there is little-to-no escape for those contained within. All Cook has had to do is keep on swimming, though his smartest move has been diversifying their product portfolio.Apple have also made an absolute host of cock-ups since then, with no real innovation to speak of (fucking touch bar, seriously) - but much like Intel, the cock-ups don't harm them because of the aforementioned captive audience.
Kvaern1 - Wednesday, September 23, 2020 - link
Is Intels biggest mistake, so far, not joining the Iphone train with Apple or not buying NVdia back when it was worth a 1/10th of Intel?FullmetalTitan - Wednesday, September 23, 2020 - link
A McKinsey hire is like getting that quintessentially 80s business guy from Futurama to run a division, gonna talk a big game, but fail to deliver anything realSupercell99 - Friday, September 25, 2020 - link
Im buying 50,000 shares of AMD