"Satisfaction doesn't come in moments but in periods of time."
I like Grove's idea about periods of time, and I'm not just thinking quarterly here. That's one of the ongoing problems of companies, that they attempt to do all sorts of one-off steps to shore up their quarterly results to appease shareholders.
Why this is a problem is it takes our eyes off of what is really important in a company. To deal with all sorts of short-term issues based on nothing of value other than to keep the numbers at certain level has always been folly to me.
One thing this does is create an illusion of the health of a company, which most of the time looks much better than it in reality is.
When talking about satisfaction, Grove is referring to how he guaged and measured Intel (INTC). It was over periods of time that accurate measurements really can be taken and responded to.
Selling off parts of companies and numerous other steps to show profits and high revenue numbers aren't part of that satisfaction. All that does is give business leaders a sigh of temporary relief as they look at what they're going to do to reach the same conclusion the next quarter.
All of that is wrong to me. Yet many investors clamor to business leaders to reach those quarterly figures. They get the illusion they ask for when management takes steps to placate them.
Grove had a different attitude, and while he's aware at times that things need to be speeded up, it's for the reason of the market, not the next quarterly results.
Warren Buffett is like this as well with Berkshire Hathaway (BRK-A). One of the reasons he doesn't split the shares is so he will attract only investors that have an interest in long-term investing, not worried and concerned over the ups and downs the market always brings.
True satisfaction in leading a business can only come over periods of time, as it is only over periods of time that true results can be measured. Grove understood this and knew the right times to surge ahead and when he needed to slow down. It was related to the market and not trying to impress shareholders from quarter to quarter.
Other Andy Grove Resources:
Andy Grove's Rational Exuberance
The Digital Age . . . driven by the passion of Intel's Andrew Grove
The History and Influence of Andy Grove
Andy Grove enters new post-Intel role as activist capitalist
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