Steven Jobs: A Manager?
Is Steve Jobs an effective manager? After researching Jobs' background before
his going to Apple, during his tenure at Apple, and in his current
endeavor with Next, what is clear is that Jobs can influence and
motivate both subordinates and higher-ups to do his bidding. Unfortunately,
for Steve Jobs, winning friends and influencing people is not the only aspect
of management, and his lack of attention to planning and organizing probably
resulted in his downfall at Apple. As I will show, Jobs' most notable
managerial fault is his inability to forgo his own personal goals for those
of the organization he heads.
Steve Jobs' management character can be traced back to his childhood. As
a child, Jobs aggressively pursued his goals. His continued success led
to his confident, albeit self-centered, management style. As an adopted
child, Jobs grew up constantly moving around California. This was the result
of his "father's" inability to remain satisfied with any particular
job (a trait Steve acquired). On one occasion, this moving resulted in Jobs'
placement in a new school, which he felt was less than adequate. Jobs refused
to attend. He demanded that his parents move to a more affluent neighborhood
to accommodate his schooling desires. Jobs' parents yielded to his demands,
despite the financial strain it put on the family (Butcher 12-17). As a
result of this move to Palo Alto and the Cupertino School district (now
referred to as Silicon Valley), Jobs would end up meeting Steve Wozniak
with whom he would establish a memorable, even profitable, relationship.
Prior to their meeting, both Jobs and Wozniak had become very interested
in the newly emerging high technology electronics industry. As the center
of this burgeoning technology, Silicon Valley provided the two with ample
opportunity to develop their interest. However, though Jobs fancied electronics,
Wozniak pursued his interest with the unwavering drive that would make him
an expert in the field. He surrounded himself in the quickly advancing technology,
and he educated himself in the high tech field through trade magazines and
clubs such as the Homebrew Computer Club, even teaching himself Fortran,
a computer language. Wozniak eventually attended Berkeley, withdrawing in
his third year to take a position at Hewlett-Packard. Jobs' interests
were much more diverse. Apparently caught up in the soul searching of the
early 70s, Jobs seemed to reject the traditional, as illustrated by his
refusal to attend either Berkeley or Stanford, opting instead for the liberal
Reed University in Oregon. It was at Reed where Jobs became enamored with
various philosophies, drugs, and diets. It is clear to see that, at this
time, Jobs was committed neither to school nor to electronics, which resulted
in his withdrawing from Reed near the end of his freshman year. He returned
home, thin and unkempt, embracing a new goal of traveling to India in pursuit
of what a friend termed "'the electric atmosphere of love'" (Robert
Friedland, qtd. in Butcher 45). By presenting false credentials to the officials
at Atari, Jobs obtained a technician's position for which he was
not qualified. He managed somehow to impress the company's founder, Nolan
Bushnell, for Bushnell not only gave Jobs the job but also wound up financing
Jobs' investigation of Zen in India. And although the position was clearly
beyond his ability, Jobs knew he could still rely on Wozniak's expertise
to bail him out whenever he got in over his head. Once again, Jobs' persuasiveness,
this time coupled with his willingness to exploit his friendship with Wozniak,
resulted in his reaching a goal (Butcher 34-54).
By the time Jobs returned home, displeased with the poverty in India, Wozniak
had developed the guts of what would eventually become the first Apple
computer. Jobs saw dollar signs when Wozniak, "like a proud father"
(Butcher 66), showed Jobs his creation. Wozniak's lack of business savvy
surfaced when he expressed his desire to sell the computer. Jobs objected,
asserting that more money could be made by venturing into the marketplace
with Wozniak's product--even though, as yet, the micro-computer market was
nonexistent. Nevertheless, Wozniak, newly married, was hard to sell. Jobs
sought the help of family and friends to exert pressure on Wozniak to come
around. In the end, the persuasive Jobs was attaching a company signature,
Apple (the name was based on a diet Jobs once tried which required
the extensive consumption of fruit), to the venture he and Wozniak would
pursue. The young, enthusiastic Jobs set out to start something big with
little more than a passing hobby as experience (54-66).
Jobs contributed little more than the name, but quickly began making contacts
that would prove beneficial to the firm's future. He followed Wozniak to
Homebrew club meetings where he eventually received Apple's first
order. Like many bootstrap start-ups, Apple's beginnings were plagued
with financial problems; as a result, to fulfill this first order, Jobs
needed to secure a line of credit so that he could purchase the materials
necessary for assembling the computer. Naive and clad in blue jeans, the
20-year-old Jobs approached banker after banker, who each responded to Jobs
with disbelief and disapproval. Despite continued rejection, the determined
entrepreneur succeeded when a small firm agreed to back Apple and
to withhold any interest charge. With the delivery of parts underway, Jobs
had little difficulty turning his family's home into the production line
for Apple. Moreover, despite Apple's impoverished state at
this time, Jobs' concern for image--both his own and Apple's--resulted in
his retaining Regis McKenna's public relations firm. At the time, McKenna
was widely employed: he was respected for innovative and successful strategies
in presenting very technical products to the general public in a comprehensible
manner. Although many of the individuals Jobs contracted at this time were
initially leery of his pushy, eccentric style, Jobs' "charismatic appeal
and his gift for rhetoric" (Taylor 32) certainly fueled Apple's
profitable future (Butcher 67-79).
In fact, on January 3, 1977 (Butcher 87), Jobs' charismatic personality
attracted $250,000 from Mike Markkula, and this provided the required capital
to form Apple, Inc. Although Jobs himself had little background or
education in either the technical area of computers or in management, his
ability to convince others that he was capable was incredible. Markkula
insisted that Wozniak quit his job at Hewlett-Packardand become a
full-time employee before he would lend his support. Wozniak agreed but
then made it clear that he would not be involved in management, preferring
to maintain his status as an engineer. While Wozniak secured a crucial and
very technical position at Apple, he was concerned with what role
Jobs would wind up playing for the firm. When Wozniak confronted Markkula
with the issue, Markkula--who supported Jobs--indicated to Wozniak that
he believed Jobs needed more training before he was ready to manage the
firm. Markkula had to find someone to manage the firm, as his own strength
was not in management. When he decided to go with Michael Scott, Jobs reacted
negatively, resenting any dilution to his authority. Despite his dismay,
Jobs backed down fairly quietly, as he did not want to jeopardize his strong
relationship with Markkula. This bond between Jobs and Markkula proved advantageous
for the ambitious Jobs, though not-so-lucky for Apple. (Butcher 80-9).
Apple was moved out of Jobs' garage and into a building in Cupertino. A
small staff of engineers and technicians was hired to work with Wozniak.
Scott directed general, administrative operations, while Markkula developed
a business plan in consultation with outside experts. Although Jobs had
no one specific function within the firm, he kept himself busy initially
by successfully supervising the designs for the company logo and for the
hard plastic shell that encased the Apple II. Wozniak was quick to
point out Jobs' limitations: "'If you have a hardware man there, Steve
can't talk hardware. If you have a software man, Steve can't talk software.
He can help design computer cases"' (qtd. in Butcher 103). Wozniak's
impressions of Jobs were not, at this time, shared by the company at large.
In fact, this early stage of the company's history was, in many ways, an
exciting time, as the company began to gain momentum with its small but
dedicated staff. However, signs that Jobs craved a more authoritative role
within the company were noticeable in his undermining of Scott's authority
and in his badgering of employees. Eventually, it wasn't the apple-pie Jobs
the press depicted who was delegated great power within the firm; it was
a young and egoistic Jobs, taking advantage of his relationship with Markkula,
who maneuvered himself into a position of great power at Apple (Butcher
90-105).
Meanwhile the Apple computer had been taken to a couple of computer
fairs, gaining needed recognition as well as constructive feedback regarding
desirable features to incorporate. Up to this point, the market for microcomputers
was virtually nonexistent--at most, a few hobbyists and high tech enthusiasts.
It was Apple that created one of the first computers for personal
and business use. During 1977, at the First West Computer Fair, Apple
received orders for about 300 Apple computers (Butcher 98). Throughout
this crucial growth period, during which Apple received extensive
feedback from early customers, Wozniak's brilliance allowed the company
to respond quickly and to fulfill the demands of consumers for new innovations.
In doing this, Apple surged forward, gaining the confidence that
comes with success and praise. With the rapid growth, Markkula decided to
take the company public in 1978. The following year, with the approval of
the executive board, Scott created two divisions within the company, not
considering Jobs for either management position. Although the board typically
stood behind Jobs, his reputation was for being inconsistent and moody.
Markkula put it to him gently, "'Steve, you don't have the experience
or the temperament . . . '" (qtd. in Butcher 126). Jobs' resentment
of this decision would have far-reaching effects; his obsession for power
would cloud his vision for Apple (98-126).
Despite the inner grumbling at Apple, the press told a much more
palatable story of the young entrepreneur. This was largely manufactured
by Regis McKenna, the Public Relations agent hired by Jobs. McKenna had
counseled Jobs in establishing good relations with the press. So, when the
firm began to look promising, newspapers presented the public Jobs in the
image of the "maverick entrepreneur" (Egan 84). Often the press
would call Jobs a computer genius of the same kind as Wozniak--a fabrication
Jobs had no problem accepting. Manipulating the press in this way was just
one more manifestation of Jobs' rather unethical method for attaining goals;
unfortunately, for Apple, there would be more such manifestations.
The success of taking Apple public resulted in incredible financial
gains for all who owned stock in the company. Many employees became millionaires
overnight, resulting in new, extravagant lifestyles. Jobs' reaction to the
sudden financial windfall was quite different, however. He became increasingly
concerned with maintaining and advancing his image as a computer genius.
This would not be an easy task, as the heads of many other firms, including
those at IBM, quickly responded to the new demand for personal computers.
Apple had begun to develop the powerful Lisa computer to complement
the already marketed Apple II. Looking for a way to prove himself
a "computer genius, Jobs convinced Markkula and the Board of Directors
that a third computer should be produced. Such a computer, Jobs argued,
should be a kind of compromise between the powerful Lisa and the
relatively inexpensive Apple II. Because Jobs did not have the technical
expertise to design the computer himself, he formed a committee and delegated
to it that responsibility. Jobs pressured the committee by announcing to
the public that the Apple III would be available within two years.
He also put severe restrictions on the computer by developing an elegant
exterior that would make production nearly impossible. His unreal expectations
resulted in "miscommunication between marketing, engineering, and the
all-important personal computer infrastructure" (Butcher 141). In the
end the Apple III was a shoddy product, featuring frequent breakdowns
and limited software availability. But Jobs' mistakes did not end with this
product. He had the entire firm convinced that the well-established, blue-chip
firm IBM did not pose any threat to Apple. Jobs' reckless predictions
about IBM and the computer market certainly added to his arrogant
posture, but they would cost Apple dearly (Butcher 136-48).
The Apple II remained the company's main source of revenue, although
Jobs and many analysts felt that its dying day would come quickly as a result
of the many IBM compatibles that were hitting the market. Indeed,
Apple was being surpassed due to Jobs' arrogance, his uncooperative
attitude toward software firms, and his unwillingness to make an Apple compatible--or,
at least, a computer that contained intercommunication capabilities. Meanwhile,
Jobs began honing in on Jeff Raskin's Macintosh computer division.
Raskin had conceptualized the Macintosh; Jobs recognized that there existed
the technology to produce the Macintosh after working on the Lisa
computer. In typical fashion, Jobs succeeded in pushing Raskin out and
in obtaining day-to-day authority as division manager. Although Jobs did
have enough technical know-how to oversee the Macintosh, his dictatorial
style of management soon proved disastrous. He became increasingly public
about the negative characteristics of the Apple II; and he was increasingly
more partial to his baby, the Macintosh. His treatment of employees
outside of the Macintosh division was discriminatory. The employees
who worked for the Macintosh division received higher salaries, invitations
to company sponsored parties, and front row seats to company meetings (Butcher
136-48). No expense was too great for Jobs' favorites; as one employee wrote:
"While Mr. Jobs' stated positions on management techniques are
all quite noble and worthy, in practice he is a dreadful manager. It is
an unfortunate case of mouthing the right ideas but not believing in or
executing them when it comes time to do something . . . . Jobs regularly
misses appointments. He does not give credit where due. Jobs also has favorites,
who can do no wrong--and others who can do no right. He interrupts and doesn't
listen. He doesn't keep promises. He is a prime example of a manager who
takes the credit for his optimistic schedules and then blames the workers
when deadlines are not met." (qtd. in Butcher 161)
Jobs ended up with the largest block of shares in the company, after Wozniak
lost some of his stock in a divorce settlement. Therefore, Jobs not only
gained control of the Macintosh division (totaling 600 employees),
he also had the largest vote in the company as a result of his becoming
Chairman of the Board of Directors. Jobs proceeded to sell the idea that
the Macintosh was the future of the company, asserting that the sales
of Apple Ils would surely decline. (Ironically, the Apple II was
still responsible for a large portion of the firm's total revenue.) Employee
morale of other company divisions was shaken to the point that the Apple
II division employees threatened to resign. Though he succeeded in pacifying
the Board of Directors with great promises for the future of the Macintosh,
Jobs' rule over the Apple empire was severely jeopardized by
the schism he created within the firm. (Butcher 136-48).
The turmoil in the company seemed to reach an all-time high when, after
the miserable failing of the Apple III, Jobs and Markkula forced
Scott to lay off 41 employees. Although Scott was a tough manager, the employees
always respected him for keeping Jobs in his place. When forced to do the
laying off, however, Scott too became the enemy. He soon resigned from the
company, leaving the president's position open. The choice for a new president
and CEO was John Sculley, the former president of Pepsi Cola USA. Jobs
was attracted to Sculley immediately, as meetings were arranged between
the two by Markkula to test the waters of the two personalities. Once again,
it appeared that Jobs had entranced another key player, and the employees
of the Apple II division were disgusted. Moreover, though Jobs had
created many of the problems that led to Apple's retrenchment, he
managed to emerge smelling like a rose and, more importantly, as the darling
of the Board (Butcher 154-65).
John Sculley started off with a bit of a disadvantage, as he had absolutely
no technical background in computers. Yet, Sculley's ability to run Apple
far exceeded Jobs'. Sculley received his undergraduate training at Brown
University, and graduate training at the respected Wharton School. He had
obtained a low-level management position at PepsiCo soon after his
formal education, and had worked his way up to president of the Pepsi
Cola USA division. Hard and diligent work characterized Sculley, who
promised with the acceptance of his new position to try to realign the spirit
of the firm and to educate Jobs in the fields of management and marketing.
Although employees were initially hesitant about accepting the suit and
tie image they perceived in Sculley, they quickly gained respect for him.
Unlike Jobs, he was sensitive to the feelings of the employees, while still
maintaining a clear vision for Apple's future. Thus, it seemed as
though Apple had found its savior in Sculley, which allowed it to
maintain support for the mercurial Jobs (Butcher 166-75).
When Sculley analyzed Apple, he immediately recognized that it was
in desperate need of reorganization. The small beginnings had blossomed
into something overwhelming for someone like Scott, who did try to maintain
control over the growth. However, Markkula and Jobs were very enthusiastic,
albeit inexperienced, and thus Scott was hardly able to keep track of what
evolved eventually into nine separate divisions. Sculley noticed that there
was much duplication, as in The two product divisions each with its own
marketing, manufacturing and development departments" (Wise 38). In
addition to recognizing that a solution was needed long-term for the organization
problem, Sculleyjoined Apple at a time when it was introducing another loser,
the Lisa. A skilled marketing person, Sculley recognized that the
marketing techniques used to promote "the Lisa made the company
appear 'schizophrenic"' (Butcher 177), for advertisements were telling
consumers that the Lisa was a household tool as well as a business
tool (Butcher 176-79).
It also became apparent to Sculley that the Macintosh, with technology
almost identical to that of the Lisa, was scheduled to be introduced
only one year after the failing Lisa and to the same market. He began
to realize that Jobs' concern was not always to satisfy consumers. He noticed
Jobs' arrogance when Jobs insisted on using a costly direct sales force
for the Macintosh, imaged after IBM. It appears that "Jobs'
single-minded attention to the Macintosh and his indifference to other Apple
products exacerbated tensions between (he] and Sculley" (Rudolph 65).
Sculley decided to consolidate the Lisa and Macintosh divisions,
but Jobs insisted that they wait until after the introduction of the Macintosh.
Although Sculley had succeeded in consolidating the company into three
divisions, he seemed to give in to Jobs in this instance. In addition, Sculley
directed huge cost cuts after the failure of the Lisa in order to
gear up for the Macintosh's introduction. Jobs predicted sales within
the first two years of production to be in the millions for the Macintosh,
so an all-out marketing plan was devised and saved for. Many members
of the Apple II division left the company during this period, including
Wozniak. They felt that Sculley could not control the whims and favoritism
Jobs was so noted for. But Sculley's subtle professionalism soon surfaced.
When the Macintosh was introduced in grand fashion, it promptly failed.
And with the board's approval, Sculley stripped Jobs of his divisional management
position. Jobs' selfish, childlike behavior was finally recognized by both
the company board and the press. His outlandish management techniques were
no longer praised as the outcome of creative genius, but criticized as immature
Apple and in the computer world at large would still consider Jobs as the
charismatic and misunderstood father of the first personal computer1 his
bright future seemed clouded over, until . .
Next. With more bright, new ideas for future computers, Jobs formed
his own firm with $7 million raised from the sale of some of his Apple stock.
Venture capitalist Ross Perot invested $20 million into the firm, and future
employees were knocking down Next's door. Many even say that Jobs'
management style improved, as he apparently listens more and, occasionally,
takes advice. In addition, Jobs has cooperated more with software firms
and vendors. He has also spent a good deal of time in the field at colleges
and universities. This might ensure that his new project, an educational
computer scheduled to have come out in 1987 but held up for a 1989 date,
will be successful.
Many critics have argued that Jobs has learned from his mistakes at Apple
and that he will succeed with Next. They still note, however,
that Jobs "remains the same brash, obsessive perfectionist he was at
Apple, constantly driving colleagues to produce better than their best"
(Baig and Menders 83). Such a driving style may be an attribute for someone
heading up the research and development division of a firm, but it is not
well suited for management. With Jobs1 such behavior conflicts with his
informal approach to work hours, dress code, and office conduct. When applied
to production, such indifference leads to ineffectiveness and many critics
have pointed to this as the reason for Apple's inability to meet production
deadlines. Jobs, some say, could still listen more attentively to the demands
of the market when making future decisions. At Next, Jobs has apparently
focused on a limited and highly competitive market. Some say that the educational
computer he has developed is, at present, priced too high for students to
purchase on their own; they argue that, without persuading college or university
officials of the computer's usefulness, the project will be destined to
failure. Although many would say that Jobs' future as a manager is still
bright, it seems to me that his overall strength is in research and development.
Placed in this area of a company, surrounded by experts who could analyze
the market and manage production, Jobs could succeed famously.
Steven Jobs will always make me think about that selfish and childish act
of taking credit for Wozniak's work on the Apple computer. This is
not to imply that selfishness is not necessary when managing, for we have
all heard of the successes of seemingly cold-hearted business people. But
Jobs' selfishness is not aimed at making profits for the company; it is
motivated by the desire for personal gain. Such a personality flaw has already
led to Jobs' resistance to delegate authority to those better qualified
than he--and I predict the same thing will happen at Next. Although
Jobs should have gained insight into his shortcomings from his experiences
with experts such as Sculley, I don't believe it has. Jobs simply seems
incapable of admitting to anyone's strengths or to his own weaknesses. Jobs
fails to acknowledge the feelings of his colleagues and workers, pushing
them harder and harder, day in and day out. Of course, this results in the
loss of key company people, often those who would be instrumental in the
high tech field. While positive publicity has downplayed some of the damage
Jobs has caused--keeping many qualified employees waiting on his doorstep--I
believe Jobs will one day realize that he has to rely on key people. He
simply does not have enough technical know-how to keep projects congruent
when the turnover of employees is high and when his product requires a high
level of ingenuity. Steve Jobs' saving grace right now is money, and this
may prolong his downfall, which, in my opinion, is inevitable.
Works Cited
Baig, Edward C. and Joshua Menders. "Steve Jobs Tries To Do It Again."
Fortune 23 May 1988: 83-8.
Butcher, Lee. Accidental Millionaire. New York: Paragon, 1988.
Egan, Jack. "Next Steps." U. S. News & World Report
103 December 28, 1987-January 4, 1988: 84.
Rudolph, Barbara. "Shaken to the Very Core." Time September
30, 1985: 64-5.
Taylor, John. "Zen and the Art of Computing." The New York
Book Review 92 October 25, 1987: 32.
Wise, Deborah C. "The Palace Revolt at Apple Computer." Business
Week 27 January 1986: 67.
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