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Learn the key ideas of the book by Andrew S. Grove

High Output Management

A classic guide to excelling in the business world

High Output Management is based directly on the experiences of Andrew Grove. Published for the first time in 1983, it is considered a must-read. To this day, entrepreneurs, managers and employees follow the advice given in this practical guide to excelling in the corporate world. It is more of a challenge for an entrepreneur to make a business flourish and grow than to get it off the ground in the first place. A successful company grows thanks to the people who work in it, so what is required to truly excel is a dynamic performance which can be improved and perfected. Managers with the ability to motivate employees and continuous training can ensure excellent results that will continue to grow.

High Output Management
Read in 14 min.
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Many useful tips to:

  • Understand why a massive company like Intel was so successful.
  • Inspire those who run a company and are looking for worthy examples to follow.
  • Help people looking to improve their performance and that of their team.

The author of the book:

Andrew S. Grove was a successful businessman. He was born in Hungary and grew up in America and was one of the founders of Intel, where he was President and CEO between 1998 and 2004. His manual, High Output Management, which came out in 1983, is based on his experience as a businessman, in which Grove explains how to improve employee yield and performance. He taught at Stanford University Graduate School of Business and died in 2006.


Understanding the production process to ensure maximum

One of the first problems that must be dealt with in a new business is understanding the production process. Every business is different and can have its own specific characteristics, or be required to meet specific needs.

So it is very important to understand exactly what you are dealing with, and to examine each individual aspect, by dividing the production process into many small steps, which is essential when you are looking to optimise the output.

To explain this concept clearly, Grove uses the example of making a classic breakfast of boiled eggs and toast. For the breakfast to reach the client on time, there are a few things to consider before you start: the toast, coffee and boiled egg need to be ready at the same time, even though they have different cooking times. The one element that might seem unimportant does in fact hide the first secret to an efficient production process: time management. When analysing the production process of the aforementioned breakfast, we must keep in mind the egg’s cooking time so that we give it first priority, followed by the toast and then the coffee. If you have a lot of breakfasts to cook, you will need to organise a continuous system for boiling the eggs so that you always have some ready. You will need a continuous egg-boiler, which might mean rethinking the whole production process and adapting it accordingly.

Grove says that it is important to identify the so-called ‘sticking point’ that slows down or interrupts production, so as to build the process with the aim of overcoming that obstacle.

The breakfast example can be used on any type of business because Grove’s objective is to draw attention to the time factor. This is why a preliminary analysis of the process is a must when setting up a task. The focus must stay on the result.

Identifying both the strong and weak points of any process enables immediate intervention, to optimise the actions that must be taken to achieve the desired end result.


The key ideas of "High Output Management"

Understanding the production process to ensure maximum
Preliminary analysis and the signals that let you know whether you are on the right track
For a company’s business to thrive, you need to build and direct a strong work team
Building a team: a company’s success derives from the cooperation of its employees
A few techniques to ensure the efficacy of meetings
Leading a team: being a good manager means being a good coach
Improving employee performance through motivation
Training employees internally, is key to the lasting success of a company
Take-home message

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