1. Strategy and Execution Sean Riley VP/GM High Density Solutions Lattice Semiconductor (Previously: Intel, MathStar) May 2009

2. Agenda • Strategy and Execution • Examples • Good Strategy and Solid Execution • Minimal Strategy and Solid Execution • Good Strategy and Poor Execution

3. Winning is: 20% Strategy 80% Execution

4. Winning is: 20% Strategy 80% Execution

5. Audience for Strategy • The primary audience of a strategy is: • A. Customers • B. Shareholders • C. Employees • D. Analysts

6. Audience for Strategy • The primary audience of a strategy is: • A. Customers • B. Shareholders • C. Employees • D. Analysts They are the only ones who are paid to execute your strategy

7. Why is Strategy Important? • Explains your differentiation • Enables employees to figure out how to quickly apply resources • One good and one bad example: Strategy 1: Be the market leader in the ceiling fan segment Strategy 2: Develop the world’s most quiet ceiling fans

8. Perspectives on Strategy • Strategy is about winning • Revenue and profits are nice too… • Your fellow employees must believe they can win • Must make sense, even if it’s a stretch • They must fundamentally understand why they will win • Unless everyone knows it, you don’t have a strategy Fastest First Easiest to Use Best Support

9. The Details of a Good Strategy Define… • The target customer segments • The customer’s perceived problems which are currently unsolved • The competitors, their positions & why they aren’t solving the problems • How your offering will be different • The opportunity in revenue and profit over time • And most important: the keys to successful execution

10. Winning is: 20% Strategy 80% Execution

11. Strategy and Execution • You might still win with no strategy and perfect execution • You will lose with a perfect strategy and lousy execution

12. Strategy and Execution • What is more likely to generate revenues and profits? • Get the less-than-perfect product you have now into the market • Delay your product so you can add market-leading features

13. “Strategy” for Solid Execution • Focus • Funding • People • Partners • Time

14. “Strategy” for Solid Execution • Focus • Funding • People • Partners • Time • Can easily state what you are not doing • Lead-customer driven • Priority is 1, 2, 3 not 1, 1, 1 • Project goals are well documented

15. “Strategy” for Solid Execution • Focus • Funding • People • Partners • Time • Funds support additional resources for “crunch time” • Funding timing is understood • If funding is contingent, then criteria is clearly documented

16. “Strategy” for Solid Execution • Focus • Funding • People • Partners • Time • Projects are staffed for success • ZBB (zero based budget) is reviewed regularly • Find key players who can wear multiple hats • Ensure people are motivated towards goals

17. “Strategy” for Solid Execution • Focus • Funding • People • Partners • Time • Minimize dependencies beyond your control • Assign real bandwidth to program management • It’s always better to “pay” than to “partner”

18. “Strategy” for Solid Execution • Focus • Funding • People • Partners • Time • Don’t buffer schedules • But do tightly manage external commitments • Don’t assume competitors will be too early or too late • Introduce lead developers to customers

19. Be Optimistic and Face Reality “You must never confuse faith that you will prevail in the end – which you can never afford to lose – with the discipline to confront the most brutal facts of your current reality, whatever they might be.” - Admiral Jim Stockdale

20. Examples MathStar Strategy: Establish new FPOA architecture as next generation of programmable logic Intel Networking Strategy: Drive the transition to Fast Ethernet Good Strategy Intel Chipsets Strategy: Execute better than everyone else Minimal Strategy Solid Execution Poor Execution

21. Intel NetworkingGood Strategy, Solid Execution • Strategy: Drive transition to Fast Ethernet • Details: Differentiate NIC product line with performance/efficiency benchmark • Focus: Everyone understood the goal • Funding: Fast Ethernet was funded, even if other product lines suffered • People: A+ Israeli Si design team assigned • Partners: SynOptics and Cisco, but on the “other end of the wire” • Time: First to market with new features

22. Intel ChipsetsMinimal Strategy, Solid Execution • Strategy: Execute better than everyone else • Details: OEMs addicted to “cadence” - same size die and schedule every year • Focus: Get to the bus stop ahead of the bus • Funding: Funding aligned to cadence • People: Best program management at Intel • Partners: Intel CPUs, PCI Ecosystem • Time: Always a new product for back-to-school

23. MathStarGood Strategy, Poor Execution • Strategy: Establish new FPOA architecture as the next generation of programmable logic • Details: FPOAs 4X better perf. than FPGAs • Focus: Lots of “priority 1” tasks • Funding: Funding tight but not a problem • People: Good team but stretched over silicon, dev. tools, IP and boards • Partners: External design tools never matured • Time: Products consistently a year late - did not tightly manage external commitments

24. Winning is: 20% Strategy 80% Execution

25. Questions?