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Introduction

Chapter 1

Background

Apple Inc. is one of the leading companies in the personal computer and consumer electronics industries. Apple Inc. is well known for its digital music player, iPod and the personal computer, Macintosh. The company was co-founded by Steve Jobs in 1976 under the name of Apple Computers Inc. (Young & Simon, 2005, p.34). In recent years, the company was renamed Apple Inc. The initial product that gained relative popularity and success was the Apple IIe. The company went public in 1980 and its owners immediately became wealthy. In 1984 Apple Inc. released Macintosh, which revolutionized the computer experience with a graphical user interface and a pointer devise called the “mouse.” From the mid 1980s to mid 1990s Apple Inc. went through a period of decline (Young & Simon, 2005). At the beginning of this period, Steve Jobs was fired from the company he co-founded. After a little more than a decade, Apple Inc. purchased NeXT, a company that Steve Jobs started after leaving Apple Inc. in 1985. With this purchase transaction, Steve Jobs was brought back to Apple’s management team and in 1997 became the CEO, where he still is to this day (Linzmayer, 2004, pp.89 & 289).

With the return of Steve Jobs to Apple Inc. came a new period of growth and success. One of Apple’s recent press releases concludes by saying that Apple Inc. is leading the “industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications” (Apple Inc., 2008). In addition, “Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone” (Apple Inc., 2008). From Apple’s own claims and from market evidence, it is clear that Apple Inc. is a major player in the computer and consumer electronics industries. Apple Inc. continues to hold to a business strategy of innovation (Apple Inc., 2006).

A central figure behind Apple Inc., or as some may say in front of Apple Inc., throughout its history is Steve Jobs. He was the driving force that started the company and continues to lead it as the CEO to this day (Young & Simon, 2005, p.34). Clearly Steve Jobs has been instrumental in bringing Apple Inc. to its present prominence and success, especially since his return to the company in 1997. From the media coverage to keynote addresses at the annual Macworld conference and World Wide Developers Conference, it is evident that Steve Jobs plays a major role in what Apple Inc. is today, its innovation, its industry leadership and its company culture.

Why This Study?

The 20th century and the early years of the 21st century have seen some great technological advances. Behind these advances in technology are a number of great companies which have transformed the way people live, communicate and work in the modern world. Among these can be listed IBM, AT&T, Hewlett-Packard, Microsoft, Dell, Google and Apple. Many others could be included in this list. The point is not to list all of them, which would be a worth while undertaking. However, the more important task is to learn from these great companies, to take their lessons and apply them in future organizations, to note their failures and avoid them. Without a concerted effort, it is very easy to allow great companies and their leaders to fade into history. This study has attempted to prevent this from happening for one of these companies. The study has evaluated the leadership approach of Steve Jobs, co-founder and current CEO of Apple Inc. By doing so, the study has drawn conclusions and formulated lessons from which future leaders can benefit.

Leaders in the 21st century who desire to lead with passion and influence may have something to learn from Steve Jobs. Steve Jobs will be recorded in history books as an innovator and a revolutionary figure in the world of technology. There is utility in observing his leadership approach and drawing lessons from it.

Research Question

The study posed the following question. What can leaders learn from the leadership approach of Steve Jobs? The answer to this question provides future leaders with lessons to emulate and mistakes to avoid. As a leader observes the successes and failures of other leaders, one must ask this question and apply the conclusions to one’s own leadership practice.

Research Objective

The objective of the study was to answer the above question. In order to do this, the study explored the leadership approach of Steve Jobs. In fulfillment of the objective, a careful study of literature on leadership theory was important. Such literature helped to inform the research and guided the evaluation of the evidence gathered on the leadership approach of Steve Jobs. Furthermore, in acknowledging the fact that Apple Inc. is a successful company, a basic understanding of the history of Apple Inc. is necessary. The ultimate objective was to see what the leadership approach of Steve Jobs was and what lessons can be drawn for future leaders.

Method

This study used the inductive approach. Data was gathered and studied to determine the leadership approach of Steve Jobs and corresponding history of Apple Inc. The study followed the strategy of a case study. The study was unique to Steve Jobs and Apple Inc. This focus was selected primarily because of the researcher’s particular interest in Apple Inc., its prominence as a technology company, and Steve Jobs’ leadership in the company and the effect it has had on its success.

Data was gathered from secondary sources. This data came from sources, such as books, journals, newspaper and magazine articles and other media. Two reasons exist for the reliance on secondary data. First, in order to obtain primary data it is necessary to have sufficient access to Steve Jobs himself and those who have worked closely with him and for him. Such access was difficult to secure because of Steve Jobs’ schedule and company culture that expects employees to reveal practically no information about the company. If an interview with Steve Jobs would have been possible, he may have been reluctant to provide in-depth information about himself and Apple Inc. Second, to gather sufficient data from primary sources it would have required conducting a significant number of interviews. Such a task would have required a great amount of time for the interviews themselves and the necessary work of transcribing and analyzing the resulting transcripts. This type of time commitment was not practical for the scope of this study.

Because Steve Jobs is a prominent figure in the world of technology and Apple Inc. is a major player in consumer electronics and personal computer industries, it was possible to find a sufficient amount of data gathered by other researchers and news media reporters. This data was analyzed for leadership characteristics observed in Steve Jobs and their influence on the company he leads.

Subject Areas the Study Will Explore

In order to make informed observations and draw relevant conclusions about the leadership approach of Steve Jobs, the study focused on four subject areas. The study reviewed literature on general leadership theory, organizational leadership, leadership of Steve Jobs and the history of Apple Inc.

Leadership

When approaching a study of a leadership figure such as Steve Jobs, it seemed necessary to take an overview of leadership in general. It was useful to discuss some of the leadership theory that helped classify and categorize what was observed in the leadership approach of Steve Jobs. Peter Northouse (2007) in his book, Leadership: Theory and Practice, defines leadership as “a process whereby an individual influences a group of individuals to achieve a common goal” (p.3). This definition of leadership can be divided into four areas. These areas are “leadership is a process,” “leadership involves influence,” “leadership occurs in a group context,” and “leadership involves goal attainment” (p.3). Northouse discuses the alternative view of leadership as a trait. This view takes on the belief that leaders are born; they have some natural characteristics that are inherited from birth. Northouse takes the view that leadership is a process. It means that “it is not a trait or characteristic that resides in the leader but a transactional event that occurs between the leader and his or her followers” (p.3).

Determining whether Steve Jobs is a natural born leader or has learned to lead is not as crucial to this study. However, the other components of leadership as Northouse (2007) describes them are of interest. According to Northouse, leadership involves influence. This aspect of leadership “is concerned with how the leader affects followers” (p.3). This informed the research on the leadership approach of Steve Jobs, his influence on the people at Apple Inc. and the resulting effect on the company’s success.

The remaining two leadership components that Northouse (2007) describes are “groups” and “goals.” These also had an appropriate place in this study. “Groups are the context in which leadership takes place” (p.3). In the case of Apple Inc. the group is very large. The company employs thousands of people. It is safe to assume that Steve Jobs’ influence is most direct on those who work under his immediate direction. However, his influence undoubtedly spreads throughout the entire organization. Finally, goals is the aspect of leadership that has to do with “directing a group of individuals toward accomplishing some task or end” (p.3). The goals that Apple Inc. has accomplished, especially in the last five years have been very impressive. This begs the question of what influence did Steve Jobs have on the accomplishment of these goals?

Organizational Leadership

Several aspects of leadership and organizational structure are addressed by Senge P., Ross, R., Smith, B., Roberts, C., & Kleiner, A. (1994) in their book The Fifth 

Discipline Fieldbook. Senge et al. speaks about systems thinking. This is an approach to viewing the organization and the world as a whole, rather than many parts. This concept was informative in evaluating Apple’s and Steve Jobs’ approach to technology. The approach of Apple Inc. to creating technology has been reflective of systems thinking. Apple Inc. has been a leader in creating the entire experience for the user, rather than individual components. This is evident in the design of Apple computers, as well as other products, such as the popular iPod and more recently the iPhone.

Another aspect of leadership that was relevant from the work of Senge et al. (1994) is the notion of personal mastery. Personal mastery is the practice of personal development in relation to skills, abilities and characteristics. Steve Jobs is most likely not the same person he was 30 years ago when he started Apple Inc. Over the years, he has learned valuable lessons about leadership and organizations. Much of Steve Jobs’ history with Apple Inc. has been chronicled by Young & Simon (2005) in their book, iCon: Steve Jobs, the greatest second act in the history of business. From their account, Steve Jobs is a different leader today than he was 30 years ago. It was not the central focus of this study to compare the evolution of Steve Jobs’ leadership approach, but it was important to recognize that leaders learn and that their approach changes. The focus of this study was on the present or the near past as it reveals the leadership approach of Steve Jobs.

The third aspect of leadership that was relevant to this study and addressed by Senge et al. (1994) is the concept of shared vision. This is the notion that vision is created by all involved in carrying out the vision (1994). Steve Jobs is known to be a visionary. The question arises, does he foster a shared vision at Apple Inc. or is it another type of vision? This portion of the work by Senge et al. was informative to the evaluation of the leadership approach of Steve Jobs and his approach to creating a shared vision at Apple Inc. The shared vision as described by Senge et al. contains five stages. The first stage is “telling.” In this stage the leader tells the organization or a group what the vision is. The second stage is “selling.” At this stage the leader endeavors to persuade his or her followers that the vision deserves their buy-in. The third stage is “testing.” Here the leader tests to see if the vision has had an effect on the followers and how they have responded to the vision. The fourth stage is “consulting.” At this stage the leader consults with the followers on what the vision should be and which vision should be adopted. The fifth stage is “co-creating.” This is the highest order of shared vision. At this stage the leader works together with the group to create a vision that both members individually and the group as a whole want for the organization. These different stages of shared vision can be used as a framework for determining what stage of shared vision Steve Jobs uses as a leader at Apple Inc.

Jim Collins (2001) in his book, Good to Great, describes a study that set out to determine what sets apart good organizations from great ones. One of the notions that Collins develops in this books is the notion of level 5 leadership. He further ties it to the greatness of the companies his study determines to be great. Collins believes that in order for a company to be great it must have a level 5 leader. Furthermore, Collins outlines a hierarchy of leadership with five levels and the highest being the level 5 leader. He describes such a leader as “an individual who blends extreme personal humility with intense professional will” (p.21).

The framework that Collins (2001) develops in regard to the five levels of leadership was informative to the evaluation of the leadership approach of Steve Jobs. This hierarchy, and specifically level 5, provided a conceptual structure for analyzing the leadership approach of Steve Jobs and informed the evaluation of this approach.

Leadership of Steve Jobs

Perhaps the most obvious portion of the study was to gather and evaluate data on the leadership approach of Steve Jobs. This data was obtained from various sources, such as newspaper and magazine articles, books and other media to gain an understanding of how Steve Jobs leads. Attention was given to his influence within the organization and in the industry at large. Based on this information, comparisons were made with leadership theory. Reading this literature was important to understand the leadership approach of Steve Jobs and draw comparisons with established leadership theory. Such connections were helpful in describing the leadership approach of Steve Jobs and articulating lessons for future leaders.

History of Apple Inc.

In order to provide some background on the organization that Steve Jobs leads and establish the fact the Apple Inc. is a successful company, the study relied on literature that chronicles the history of the company and provides analysis of its performance. Young & Simon (2005) have written a work that tells the story of Steve Jobs. This work describes his early years as a child, the starting of Apple Inc., Steve Jobs’ departure from Apple Inc. and his eventual return. It provides dates and descriptions of key events in the history of Apple Inc. In addition, further research on the history of Apple Inc. was conducted to create a fuller picture of critical events, focusing especially on the events after Steve Jobs’ return to Apple in 1997.

The above mentioned areas of study formed the foundation for developing the background on leadership theory, organizational leadership, the leadership approach of Steve Jobs and the history of Apple Inc.

Limitations

Some limitations to the study did exist. The study relied on secondary data. The primary limitation was the ability to extract relevant information from literature describing the leadership of Steve Jobs. The study did not include a personal interview with Steve Jobs. The lack of this opportunity limited the ability of the researcher to confirm the findings and descriptions of Steve Jobs’ leadership approach.

Case Study Approach

This study took on an exploratory nature. The researcher explored the leadership approach of Steve Jobs. Saunders, Lewis & Thornhill (2007) describe two dimensions of the case study strategy to research. These dimensions are single case versus multiple case, and holistic case versus embedded case (Saunders et al, 2007). A case study that takes on a single area or subject of study would fall under the single case dimension. This study took on this dimension by focusing on Steve Jobs as the sole subject of the study. Further, this study can be described as taking the holistic dimension by studying the leadership approach of Steve Jobs as a whole. The study did not narrow in on a particular aspect of Steve Jobs’ leadership, but rather explored his leadership approach holistically.

Summary

Apple Inc. is a leading company in technological innovation. Steve Jobs co-founded Apple Inc. in 1976 and currently is the CEO. At the begin of the 21st century, it is of value for leaders of the future to learn from the leaders of the present and the past. The modern world has seen a number of great companies and great leaders. Steve Jobs and Apple Inc. are among those who have charted a new course in the area of technology.

To learn from Steve Jobs required exploring leadership theory in general, organizational leadership, the history of Apple Inc. and the leadership approach of Steve Jobs. The study focused on these subjects and analyzed data from a variety of secondary sources, such as books, newspaper and magazine articles, and other media.

The purpose of the study was to observe and formulate valuable leadership lessons for aspiring leaders. By using a case study strategy, the study evaluated the leadership approach of Steve Jobs in light of established leadership theory. In the end, the study attempted to answer the question, “What can leaders learn from the leadership approach of Steve Jobs?”

 

Next: Chapter 2 - Literature Review

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