CEO Tan - Business Outrank

Since his appointment as CEO in March 2023 Lip-Bu Tan has implemented a significant leadership transformation at Intel. The chip giant's new CEO Tan has implemented a structural change that allows essential technical teams to bypass executive layers and report directly to him. The organizational change demonstrates his commitment to establishing Intel as an engineering-driven organization. The technical talent at Intel operated in hidden positions below business leaders because of excessive management layers. Under Tan's new structure technical leaders Rob Bruckner and Mike Hurley and Lisa Pearce receive direct reporting access to him. The new structure supports our goal to become an engineering-driven organization according to Tan as he stated in his memo. The former CEO openly criticized the outdated system by pointing out that organizational complexity together with bureaucratic processes limited Intel's growth. The organization experienced delayed decisions and blocked innovation while silos destroyed execution. The heads of data center and AI and personal-computer chip groups which used to report to Michelle Johnston Holthaus now directly answer to Tan. Tan replaced Pat Gelsinger as CEO after boardroom conflicts and his immediate goal is to compete with Nvidia in AI chip development. The previous acquisition-based strategies at Intel did not lead to a defined business approach.

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