Operation Crush: Where Focus meets Success

Intel has a special place "inside" all of us :-)

But #Intel faced a dire situation in the late '70s. It was the first company to launch a 16-bit processor in the market, the 8086, somewhere around the mid of '78. It just took 18 months for Intel to launch this product. The 8086 was unique in many ways. Its architecture took performance and flexibility to new heights. The 8086 was designed as a part of a larger system of capabilities, more or less like a solution that included hardware, software, and services. For example, there was a suite of supporting products and developmental tools for computer manufacturers to fully exploit the processor's capabilities. However, at that time, microprocessors were still a nascent industry, and computer manufacturers didn't know the full potential of the 16-bit processors. The company was also heavily reliant on the Japanese market, with Japanese companies buying around 75% of Intel's memory chips.

Within a year, competition caught up, and Motorola launched its 16-bit processor, the 68000. Motorola was beating Intel hands-down in the market. Being an international brand, it posed a clear and present danger to Intel, whose survival was at stake, and they needed to take drastic measures to turn things around. #AndyGrove was at the helm of affairs at Intel at the time. Intel needed to take swift and impactful measures. This is how Operation Crush, a strategic initiative with the goal of crushing their competition and becoming the market leader in microprocessors, was born. The initiative involved several key players within the company. One of the most critical individuals was Leslie Vadasz, who was in charge of Intel's sales and marketing. Vadasz understood that the success of the operation hinged on developing strong partnerships with key customers and ensuring that their needs were met.

We had a one-of-a-kind situation: a powerful product with numerous capabilities that could do wonders for their clients, but the clients were unprepared for or unaware of how to use it, like our smartphones today. There is so much to do with it, but we merely use a handful of features.

The objectives of Operation Crush were to explain to the market the strengths of the 8086, its capabilities, and what clients could do with them. I see this as a great example of a client-centric strategy in the B2B space.

To achieve these objectives, Intel focused on implementing the?Objectives and Key Results (OKR) framework, which helped them maintain focus and track progress towards their goals. The main goal was to land 2,000 design wins over the next year. A "design win" is a phrase used in the semiconductor and electronics industries to indicate that a company's component has been accepted by a client to be used in their product, and the client will compensate the vendor for any customization or development work.

There are two key?client-centric business growth strategies?that were used in Operation Crush.

Client Education

Drawn up in December 1979 and executed largely over the course of 1980, Operation Crush set out to explain the strengths of the 8086—and Intel—in terms of what clients could do with them.

Intel started a campaign that was driven by an understanding of what customers really wanted. By January 1980, Crush teams were sent to field offices around the globe. They met with clients, design engineers, and managers to understand and communicate the capabilities of the 8086. They learned that clients wanted solutions with a minimum level of inconvenience. Over a thousand employees were involved, working on committees, seminars, technical articles, new sales aids, and new sales incentive programs.?

The emphasis shifted from product specs and performance numbers to how the product will help clients and end users. So the shift was from positioning 8086 as a technical marvel to a comprehensive solution to customers’ problems.

Intel also allocated $2 million for an ad campaign promoting the benefits and capabilities of the 8086. This was a substantial investment for Intel, considering the fact that they never spent beyond a few hundred thousand on ads. The campaign was called "the future has arrived".

Client Co-Creation and Collaboration

IBM was one of Intel's most important customers during the 1980s and 1990s, and it played a significant role in the development of the IBM PC, which used Intel's microprocessors. The future of personal computing changed forever with the launch of the Intel-powered IBM PC on August 12, 1981.

Intel worked closely with #IBM to ensure that its microprocessors met the needs of IBM's customers and to develop new products that would be suitable for use in IBM's computer systems. For example, the 8088—a variant of the 8086—served as the central processing unit for the revolutionary platform, laying the groundwork for Intel to chart the course of personal computing for decades to come.

This collaboration was a turning point for both Intel and IBM's success. However, neither Intel nor IBM anticipated how their collaboration would positively impact the development of personal computers and other digital devices, which have become ubiquitous in our lives today.

Intel and IBM continue to collaborate till date.

Operation Crush: The Results

When it landed nearly 2,500 contracts, including the one for the IBM PC, Operation Crush became destined to go down in the annals of business history.

Operation Crush demonstrated Intel's willingness to provide ongoing product support and how a solution worked together to offer clients a holistic solution to their problems. Operation Crush was also significant for its impact on the semiconductor industry, as a whole.

Intel's success with microprocessors was a turning point in the company's history and has helped shape the company's culture of innovation and excellence.

Lessons for us

The operation was not without its challenges, and it took Intel one full year. The success of Operation Crush was a testament to the power of focus, collaboration, and a relentless pursuit of excellence. Some notable lessons from Operation Crush are:

• Clear objectives:?The objectives of Operation Crush were well-defined and communicated throughout the company.?
• Cross-functional teams:?The initiative was led by a cross-functional team that included representatives from multiple departments within the company, including engineering, manufacturing, marketing, and sales. This allowed for a coordinated approach to the initiative and ensured that all aspects of the business were aligned with the overall goals of Operation Crush.
• Emphasis on client problems:?Operation Crush succeeded mainly because the teams shifted their mindset from highlighting their expertise to solving their clients’ problems.
• Collaboration with customers:?Intel worked closely with computer manufacturers to ensure that its microprocessors were included in their products. This collaboration helped to increase demand for Intel's products and cement its position as a leading supplier of microprocessors.
• Focus on innovation:?Operation Crush involved a focus on innovation and the development of new, high-performance microprocessors.?

In order to execute Operation Crush, Grove used #OKRs to set goals and measure progress. Grove's use of OKRs proved successful in driving Intel's shift towards microprocessors, and the company became one of the dominant players in the industry. This success helped popularize the use of OKRs as a management tool, and many other companies have since adopted OKRs to help drive their strategic initiatives. You’ll find more resources on #OKR?here.

If you’d be interested in implementing?OKR?or developing?Client Centric Strategies for Business Growth, please do me a note and happy to collaborate.