Paul Otellini is Intel's current president and COO, but he has known for two and a half years that he will be the next CEO when the current CEO gives up his job next May. He is the fifth "homegrown" CEO since the company's launch in 1968. By knowing its succession in advance, the company doesn't waste resources on wondering who will be next.

The long lead times are a hallmark of Intel's CEO transitions. In fact, the company's board of directors insists on them. They discuss executive changes 10 years out to identify gaps, making choosing the CEO the most important role of the board.

There is a gradual shift of duties from one CEO to the next, which means that the successor gets the job before he gets the title. This model is unique in an industry characterized by founders who tend to hold on too long, or frantic searches for replacements.

Intel's practice is known internally as "two in a box." By overlapping duties and responsibilities, Intel managers can better support one another in crisis. This is helpful in the case of CEO because the upcoming CEO gradually takes over the day to day operations, freeing the current CEO to focus on other things.

Intel chiefs don't overstay their welcome in part because they still wield authority after they are replaced, moving over to the boardroom. The chief drawback is that it turns current CEOs into lame ducks sooner than at other companies. Another drawback is that managers who don't see a path to the top aren't likely to stick around, causing the company to lose some key talent.