Richard Tedlow On Mental Baggage

[Intel] knew they had to get out of [the memory chip business]. Freud talks about a cognitive state he calls "knowing but not knowing," which he defines as a state of rational apprehension that does not result in effective action. Intel was being clobbered by Japanese manufacturers. They knew something was happening, but they didn't know how important it was. They were feverishly debating various ideas of how to respond.

Andy proposed a thought experiment to his then boss, Intel CEO Gordon Moore. "What would happen," he asked, "if the board kicked us out and brought in new management?" Moore immediately replied, "They'd get us out of memories." Andy looked at him and said, "Why don't we walk through the door, come back, and do it ourselves?"

By creating a fantasized new management, he was able to escape from the legacy of Intel as the memory company. At least in part because of that moment, the United States today is the world's leading manufacturer of microprocessors.