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Leadership Analysis Paper: Steve Jobs Management: Leadership in Organizations May 2011

Leadership Analysis: Steve Jobs

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Table of Contents

Table of Contents........................................................................................................ 2 Chapter 1: Introduction...............................................................................................3 Chapter 2: Leadership Practices..................................................................................8 Chapter 3: Analysis of Leadership Practices I: Leadership Style and Organizational Goal Achievement............................................12 Chapter 4: Analysis of Leadership Practices II: Leadership Style and Delegation...............................................................................15 Chapter 5: Conclusions..............................................................................................16 References................................................................................................................ 18

Leadership Analysis: Steve Jobs Chapter 1: Introduction The Early Years Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma - which is living with the results of other people's thinking. Don't let the noise of other's opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary. --Steve Jobs

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Born on February 24, 1955 in San Francisco to a pair of graduate students and immediately given up for adoption, Steven Paul Jobs grew up in a middle-class suburb of Mountain View, California. While at Homestead High School in Cupertino, Jobs became interested in electronics and computers, frequenting lectures at Hewlett-Packard. Once, he called Bill Hewlett, co-founder of HP, to get spare parts for his homework project. Impressed with the young man, Hewlett gave young Jobs a summer job. It was Jobs high school friend, Bill Fernandez, who shared Jobs interests in electronics, that first introduced him to Steve Wozniak, or Woz as everyone called him. At the time Woz was building his first computer board, which impressed the 14-year old Jobs. After high school, Jobs attended Reed College in Oregon, but dropped out after just one semester. In 1974, he got his first job at Atari. Jobs was impressed by the companys founder, Nolan Bushnell, who became an inspiration for Jobs to start Apple. He spent several months in India in search of spiritual enlightenment, come back a Buddhist, and experimented with LSD Jobs was the quintessential example of the counterculture that permeated the early to midseventies. Young and Simon (2006), in the iCon Steve Jobs: The Greatest Second Act in the History of Business, write: Jobs rose from an outcast high school electronics nerd to become the driving force behind Apple and avatar of the computer revolution, only to be driven from the company in failure and disgrace. Then, having endured repeated personal and professional disasters, he went on to make an indelible mark on the entertainment industry, reclaim the throne at Apple, and, with

Leadership Analysis: Steve Jobs

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the extraordinary success of the iPod regain his reputation as arguably the greatest innovator of the digital age. The Organization According to journalist Owen Linzmayer (2004), the author of Apple Confidential: The Real Story of Apple Computer, Inc., the company was founded as a partnership on April Fools Day 1976 by a Stephen Gary Wozniak and Steven Paul Jobs. Within two weeks of the firms start, Jobs got his first order for $25,000 for 50 computers from the Byte Shop, the countrys first retail computer shop. From these humble beginnings, Apple has grown into a global brand with the second highest market valuation of any company in the world. Major events in Apples company history include many industry firsts: 1976 Company started 1977 Incorporated 1980 Goes public at $22 per share (AAPL) 1984 Introduces the Macintosh computer 1985 Jobs forced out by Scully, starts NeXT 1990 Sales at $5.3 billion (milestone) 1991 PowerBook introduced 1994 Power Mac released 1998 Apple buys NeXT. Launches iMAC. 2000 Jobs becomes CEO of Apple again. 2001 iPod introduced. Apple Retail Store open. 2003 iTunes Store - online music $0.99 a song. 2006 MacBook released 2007 iPhone and Apple TV announced 2010 iPad introduced 2011 Verizon iPhone launched

Headquartered at 1 Infinite Loop, Cupertino, CA in the heart of Silicon Valley, the company formerly known as Apple Computer, in now simply, Apple Inc. The company has 46,600 full time employees, 233 retail stores in the United States and 84 stores internationally, and it does business in over 140 countries around the globe. Apples products include Macintosh desktop and notebook computers, iPhone, iPad, iPod, Apples TV, third party hardware and accessories, numerous software operating systems and applications, and digital content. The company sells its products through numerous retail stores, online stores, a direct sales force, third-party mobile phone companies, wholesalers, retailers and value added resellers (VARs). Apples customers include consumers, small and medium-sized businesses, education enterprise, government, and creative markets. Apples mission statement has been updated over the past two years and now appears at the bottom of each press release as follows: Apple designs Macs, the best personal computers in the

Leadership Analysis: Steve Jobs world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced iPad 2 which is defining the future of mobile media and computing devices. As expected of an industry leader, Apple continuously sets aggressive goals for itself. For 2011, the companys many goals include new product launches, sales targets, operational

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improvements, new operations, and even shutting down certain projects. Some of the major items for 2011 include launching the Verizon iPhone and selling 10 million of them, selling 25 million iPads, recapturing smartphone market share from Google Android, launching the Apple TV App Store, and discontinuing the iPod classic. The Companys business strategy leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design. The company further states that it believes the continual investment in R&D is critical to its success. As a transnational company, Apple has a global presence. As with any large company, Webers Bureaucratic Model described by Certo & Certo easily applies to Apple. That is, the company is organized in such as way as to make it efficient to reach its goals and objectives. With headquarters in Cupertino, California, Apple has manufacturing facilities in Singapore and Ireland. It also has distribution facilities in the United States, Canada, Australia, Europe, Singapore and Japan. (Quick). It markets its products in over 140 countries, to business, education, government, scientific, and consumer customers. Oversight for the company is

provided by the board of seven directors, Steve Jobs and Al Gore among them. An eleven member executive management team reports directly to Steve Jobs and is responsible for running the 17 groups that make up the companys structure. While generally hierarchical in nature, the Apple organization has a number of matrices that facilitate organization efficiency. Leader Roles and Responsibilities

Leadership Analysis: Steve JobsThe janitor gets to explain why something went wrong. Senior people do not. When youre the janitor, Jobs has repeatedly told incoming VPs, reasons matter. He continues: Somewhere between the janitor and the CEO, reasons stop mattering. That Rubicon, he has said, is crossed when you become a VP. --Steve Jobs (after an unsuccessful MobileMe launch)

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Few would argue that Apples success is inextricably linked to Steve Jobs savant-like technology vision and leadership. At the CEO of Apple and Pixar, Jobs role is to drive organizational success and implementation of both companies mission, to realize the vision through creativity, focused leadership, and hard work. His responsibilities to the shareholders are to make a profit and grow the companies market shares. His responsibilities to customers are to continue to provide them with innovative, fun, high-quality, and easy-to-use products. His responsibilities to his employees are to lead, motivate, and support them in the achievement of organizational goals. The quote above, illustrates that as a leader, Jobs can be volatile when things go wrong. Culture The companys slogan Think Different provides a glimpse into its culture. As a result, if the technology industry has a soul, Apple's employees are its keepers. And more than a few companies have tried to replicate a little of the Cupertino, Calif.-based company's success by hiring Apple employees (Caulfield). According to Matt Asay (2007), COO of Canonical, the maker of Ubuntu Linux OS, Apple is Apple because of the fervor with which its employees believe in the corporate mission. Every employee carries an iPhone. Every employee has a MacBook/Pro. And every employee seems ecstatic to be doing so. You get the same corporate feeling at Red Hat. Ditto for Microsoft. Extreme ditto for Google. People believe in these employers. These companies are winners. They are winners because, first and foremost, their employees fundamentally believe in t