Research Findings
Chapter 4
Introduction
The objective of this study was to evaluate the leadership approach of a contemporary business leader with the hope of drawing conclusions that can help formulate lessons for current and future leaders. The study examined the leadership approach of Steve Jobs, who is the founder and current CEO of Apple Inc. The approach of this study was inductive. The researcher set out to explore the data with the hope of extracting information that would reveal leadership characteristics of Steve Jobs from which one could formulate lessons and apply them in organizational situations.
The analysis of the data was performed using a technique called narrative analysis. Narrative analysis examines the data for clues that point to themes and connections within the data. This technique pays attention to words and their context. Things such as the tone and perspective of the narrative were taken into consideration. This technique for data analysis was suitable to the exploratory nature of this study (Saunders et al., 2007).
Overview of the Chapter
The purpose of this chapter is to outline the findings of the study and provide discussion based on these findings. The chapter will cover areas such as setting of the study, participants in the study, presentation and discussion of the finding, limitations of the study and key learnings.
Setting and Participants
Research Setting
This study focused on one individual. Defining the setting for the study was a challenge. The collection of data did not take place in a particular location. Because all of the data used in the study was obtained through the Internet, location was very difficult to pin-point. Nevertheless, a setting was defined. Since the study examined the leadership approach of Steve Jobs, it is appropriate to view the setting as a sphere of his influence. The areas where Steve Jobs exerts influence are the setting for the study. From this perspective, the setting can be very broad. Nonetheless, several specific areas of influence were identified.
The primary sphere of influence for Steve Jobs is Apple Inc. where he is the CEO and chairman of the board. The study examined Steve Jobs primarily in this sphere of his influence. However, some crossover was present in the study to other spheres of his influence. These spheres include several industries. Among these is the computer industry represented by Apple Inc., which was the primary sphere for this study. The other industries are Hollywood, music, retail and wireless phone (Schlender, 2007). In all of these industries, Steve Jobs has exercised and continues to exercise influence. One example is the recent purchase of Pixar animation studios by Disney, which made Steve Jobs the largest Disney shareholder and a board member (Burrows & Grover, 2006).
Participant Background
Steve Jobs was born and raised by his adoptive parents in the Santa Clara Valley, California. In 1976, Steve Jobs, along with his friends Steve Wozniak and Ron Wayne, founded Apple Computers Inc., as it was called at the time. Later that year, the first computer, Apple I, was introduced and later followed by Apple II, which ushered in the era of personal computers.
A few years later, Apple introduced another revolutionary product, the Macintosh, which boasted a graphical user interface; it later was adopted and mass produced by Microsoft in what is known today as Windows. The graphical user interface was the second major innovation that Apple contributed to the computer industry.
As Apple grew, Steve Jobs decided to hire a Chief Executive Officer. He selected John Sculley and convinced him to join Apple in 1983. Two years later, this decision led to the ultimate ousting of Steve Jobs from Apple. John Sculley and Jobs had diverging visions for Apple. The board of directors sided with Sculley, and in 1985 Steve Jobs was fired from the company he founded (Young & Simon, 2005; Jobs, 2005).
Despite the tragic turn of events, Steve Jobs went on to create two other companies. During the next 12 years he established a company called NeXT, which developed high-end computers and designed sophisticated software, which later became the basis for the current operating system installed on every Mac (Jobs, 2005). At the same time, Steve Jobs purchased a computer animation studio from George Lucas, which he named Pixar (Young & Simon, 2005). Pixar produced the first full-feature animated film in 1995 — Toy Story. Currently, Pixar remains the most successful animation studio in the world, with several hit films such as Finding Nemo and The Incredibles (Jobs, 2005).
In 1997, Apple bought NeXT and brought Steve Jobs back to the Apple board. Later that year, Steve Jobs was named the interim CEO (Linzmayer, 2004). Steve Jobs took over Apple at a time when the company was on the verge of bankruptcy (Elkind, 2008). Now Apple is worth more than $110 billion. Since his return, Steve Jobs has reinvented the way people listen to music with the introduction of iPod and iTunes. And most recently he has reinvented the mobile phone with the introduction of the iPhone.
Participant Selection
As described in the section above, Steve Jobs has made notable contributions to business as an entrepreneur, innovator and visionary. He was behind the creation of the personal computer, later the graphical user interface, the laser printer, computer networking, computer animated films, reinvention of how people listen to music and watch movies and last, but not least, he is changing what people expect from their cell phones (Schlender, 2007). For these reasons, it seems that Steve Jobs is a leader who should be studied. Although he is not known as a leadership guru, his recurring success as a leader and innovator raises curiosity around his ability to lead and alter the way entire industries do business.
Further, the researcher has personal interest in Apple, its revolutionary products and its leader Steve Jobs. Because of this personal curiosity and interest, and because of well known facts of success mentioned above, the researcher has selected Steve Jobs for this study. If one owns an iPod, an iPhone, a Mac, or if one has seen a computer animated film, one has been a direct beneficiary of Steve Jobs’ vision, passion for great design and revolutionary innovations.
The study of the leadership approach of Steve Jobs is not only useful to satisfy personal curiosity, but to draw lessons for young leaders of today and tomorrow. Evaluating the successes and failures of leaders is a great tool for leaders of any organization or community who wish to grow in their abilities and become more effective leaders.
Presentation of Findings
The data gathered consisted of 15 articles and one speech. In total, 16 sources of narrative data which was used for the narrative analysis. These articles and the transcript of the speech came from nine publications. The sources included business publications, such as BusinessWeek, The Economist, Fast Company, Forbes, Fortune, and Inc. In addition, articles from other sources, such as New York Magazine, Stanford Report and US News, were used as narrative data. The majority of the narrative data represented material from the last three years. However, the entire span of time covered by the narrative data ranged from 1998 to 2008. During the analysis of the narratives, several leadership themes emerged. These themes can be described as unwavering resolve, deep passion, inspiring change to grow and challenge to become better. These phrases were used to identify aspects of the narrative that pointed back to leadership concepts, such as Level 5 Leadership and Hedgehog Concept discussed by Collins (2001) in Good to Great, and the transformational leadership theory as outlined by Northouse (2004). The unwavering resolve of Steve Jobs that was evident in the narrative data correlates with level 5 leadership discussed by Collins (2001). The deep passion for superior products is reflective of the hedgehog concept introduced by Collins, in Good to Great.
The theory of transformational leadership describes leadership that effects change and inspires people to grow and reach beyond their abilities. Burns (1985) says
Transformational leaders attempt and succeed in raising colleagues, subordinates, followers, clients, or constituencies to a greater awareness about the issues of consequence. This heightening of awareness requires a leader with vision, self-confidence, and inner strength to argue successfully for what he sees is right or good, not for what is popular or is acceptable according to the established wisdom of the time. (p.17) This kind of leadership was evident in the narrative data relating to Steve Jobs. The data pointed to his ability to influence his organization and entire industries.
Discussion of the Themes
In the following paragraphs the discussion will turn to the three themes that emerged from the analysis of the data. These themes were mentioned briefly in the section immediately preceding, but warrant greater discussion.
Level 5 Leadership
In search for what distinguishes great companies from the good ones, Collins (2001) in the book, Good to Great, outlines a leadership approach that his research revealed. Collins calls it Level 5 Leadership. A level 5 leader is described in the most basic form as a person “who blends extreme personal humility with intense professional will” (p. 21). From this condensed description of this type of leader, Collins goes on to outline four aspects that are present in a level 5 leader. These are ambition for the company, compelling modesty, unwavering resolve and the window and the mirror.
A level 5 leader is concerned for the best interest of the company. Such a leader’s highest ambition is the good of the organization and not for “one’s own riches and personal renown” (Collins, 2001, p.25). Such a leader seeks to establish successors and set them up for success.
Further, the level 5 leader displays a compelling modesty. This is that humility that Collins (2001) sees blending with intense professional will. Level 5 leader would seek to deflect attention from themselves and on to others in the organization who they believe were the real contributors to success. Such a leader is slow to take credit for success and assign praise to themselves for the greatness of their company.
The third aspect of level 5 leadership is unwavering resolve to do what must be done. This is what Collins (2001) describes as the professional will to make decisions that are right despite the fact that they may be unpopular or unsupported by others. Collins describes this aspect of level 5 leadership as a leader “fanatically driven, infected with an incurable need to produce results” (p.30).
The final aspect of level 5 leadership is what Collins (2001) calls, “the window and the mirror” (p.33). The basic gist of this idea is that level 5 leaders point to the window when the company is successful and direct the praise to others, and turn to the mirror when a bad decision has been made or the organization has failed to produce a desired result.
Hedgehog Concept
Great companies as described by Collins (2001) not only have level 5 leaders, but also foster what he labels as the hedgehog concept. The point here is that great companies and great leaders behind them are extremely focused. This focus is evident in three key areas. These leaders are deeply passionate about what they do. They know what they can be best at in the world, and they know what drives their economic engine.
Leaders of great companies, according to Collins (2001), have a deep passion for the business they are in. They are focused on what they can be best at. Their attention is not divided between many different things accomplished at a mediocre level. Further, these leaders know what drives their economic engine. They know what in their business generates the revenue and how to funnel their energies to produce spectacular results.
Transformational Leadership
Among the leadership theory, transformation leadership describes leadership as a process of change, both in the followers and the leader. Northouse (2004) says, “transformational leadership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic and visionary leadership” (p.169). As Northouse points out, transformational leaders exert significant influence and challenge their followers to grow and change. These leaders may be seen as charismatic and with great ability to envision the future.
Transformational leadership includes factors such as idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. This type of leadership is seen by Burns (1978) as more potent and able to produce greater change in individuals, organizations and societies. Burns says “the result of transforming leadership is a relationship of mutual stimulation and elevation that converts followers into leaders and may convert leaders into moral agents” (p.4). Transformational leadership is not just about ensuring a task is completed on time; it is about producing change within the organization and beyond, possibly to a regional and national level.
Discussion of Findings: Making Connections
The above paragraphs outlined the themes that came out in the narrative analysis and explained the meaning of these themes as they are found in their original sources of formulation, whether that be leadership theory or concepts gleaned from a leadership study. The question remains, how do these themes reflect on Steve Jobs? Based on the narrative data can one conclude that Steve Jobs is a level 5 leader? Does he exhibit the hedgehog concept? Is he a transformational leader?
Level 5 Leadership
Throughout the data, the idea of unwavering resolve came up again and again. One example is the introduction of the iPod in 2001. A business journal, The Economist (2007) in an article titled “Lessons from Apple” says, “The iPod was ridiculed when it was launched in 2001, but Mr Jobs stuck by his instinct” (Stay Hungry, Stay Foolish section, ¶1). If at the time Steve Jobs would have altered his plans based on public opinion, the digital music revolution would not have been seen that seems common place now. Others refer to Steve Jobs as a “single-minded risk taker” (Walters & Jana, 2007, ¶1). And he admits in an interview with Betsy Morris (2008), an editor with Fortune magazine, that there were numerous times when decisions had to be made to scrap products that were not meeting the standard of quality and start over after investing much time and money.
Unwavering resolve is one of the aspects of level 5 leadership. This aspect is very clearly present in the leadership approach of Steve Jobs. The question remains, do the other aspects of level 5 leadership manifest themselves in Steve Jobs? Ambition for the company seems to be present. He is concerned for the good of the organization. In the same interview with Morris (2008) from Fortune, Steve Jobs says, “My job is to make the whole executive team good enough to be successors, so that’s what I try to do” (On whether Apple could live without him section, ¶1). He seems to be concerned for the future of the company by investing in current leadership to set them up for success after he is gone.
Compelling modesty is something that was not clearly evident from the data. This is not to say that there was significant evidence against this notion. But no one said that Steve Jobs is modest. However, what is not present in the data can also be evidence. Compelling modesty as Collins (2001) describes it is when a leader does not seek to promote oneself. The fact that there are no books published by Steve Jobs, whether autobiographies or of another nature, is an indication that he is not interested in promoting himself. He does not use his position of prominence as the CEO of Apple to promote his expertise and build his name. Several of the authors of articles used in the study admitted that Jobs declined their requests for interviews (Heilemann, 2007; Elkind, 2008). It seems that he is selective with interviews that he gives. That may be because of demands on his time. But it can also be an indication that he is not particularly interested in promoting himself.
It is not possible to draw conclusions from the data regarding the fourth area of level 5 leadership, namely the window and the mirror concept. In the interview with Morris (2008) he did give credit to his employees and top executive team, however, there was no evidence of how he would handle negative consequences of a poor decision.
So, is Steve Jobs a level 5 leader? In some aspects it can be said that he is. However, it was not clear that he meets all of the aspects of a level 5 leader from the current study.
Hedgehog Concept
A reoccurring theme throughout the narrative data was the idea of deep passion for great products. Steve Jobs admits in his commencement speech at Stanford University graduation in 2005 that he has found what he loves to do. He says, “I was lucky – I found what I loved to do early in life” (Jobs, 2005, ¶11). In the same speech Jobs (2005) goes on to say, “the only way to do great work is to love what you do” (¶14). Steve Jobs clearly shares one of the keys of the hedgehog concept, understanding what one is deeply passionate about.
Morris (2008) in her article, “What makes Apple golden,” explains that Steve Jobs’ “utter dedication to discovery and excellence has created a culture that has made Apple a symbol of innovation” (¶5). She goes on to show that this dedication results in a focused approach to running the company. “Apple’s approach is to put every resource it has behind just a few products and make them exceedingly well” (Morris, 2008, ¶7).
Innovation seems to drive the economic engine of Apple Inc. The Economist (2007) in an article “Lessons from Apple” says, “Apple has prospered by keeping just ahead of the times” (¶1). Apple’s ability to generate revenue has come from its ability to innovate and deliver great new products to the consumer.
It appears that a connection can be made between Steve Jobs’ leadership approach, the success of Apple and the hedgehog concept described by Collins (2001). Steve Jobs knows what he is deeply passionate about and is able to funnel that in such a way that focuses the company on a narrow set of products that continue to generate significant revenue through repeated innovation.
Transformational Leadership
The final question left to answer posed in the opening paragraph of this section: is Steve Jobs a transformational leader? Transformational leaders effect change and inspire growth. Concepts and ideas, such as inspiration, challenge to grow, performance beyond expectation, did surface throughout the analysis of the narrative data.
In his own words, Steve Jobs says, “My job is to not be easy on people. My job is to make them better” (Morris, 2008, On whether Apple could live without him section, ¶2). He goes on to say that his purpose is to “take these great people we have and to push them and make them even better, coming up with more aggressive visions of how it could be” (Morris, 2008, On whether Apple could live without him section, ¶2).
Others have revealed that Steve Jobs has inspired their best work even when his demands could have been construed as abuse. Heilemann (2007) says, “The employees he’s [Steve Jobs] flagrantly abused later concede that he inspired their best work” (¶9). Elkind (2008) confirms this sentiment by saying, “some of those who have departed say that although it’s often brutal and Jobs hogs the credit, they’ve never done better work” (¶11). Even from these two references it is clear that Steve Jobs is able to inspire his followers to do better than they have ever imagined.
Not only is Steve Jobs influential at Apple and able to inspire great work in his followers, he has been able to influence and change other industries. Schlender (2007) reflects on Steve Jobs’ influence since his return to Apple in 1997: “Jobs has exercised his increasing power with the facility of a jujitsu master. Consider: He elbowed aside the likes of Sony to change the dynamics of consumer electronics with the iPod” (¶5). Schlender goes on to point out, “[Steve Jobs] persuaded the music industry, the television networks, and Hollywood to let him show them how to distribute their wares in the Digital Age with the iTunes Music Store” (¶6). And he further explains, “[Jobs] employed the arch austerity of his hugely successful Apple Stores to give the big-box boys a lesson in high-margin, high-touch retailing” (¶6).
Steve Jobs has been able to influence and change five industries according to Schlender (2007). And Schlender is not alone in this view of Steve Jobs. US News (2005) in an article “A design, a dream” claims that Steve Jobs, “almost single-handedly altered the way we compute, play music, and view video” (¶3).
It seems apparent from the data that Steve Jobs is a transformational leader. His influence permeates Apple Inc. and extends out beyond the confines of his company to other industries. Steve Jobs has influenced at least five industries — computer, Hollywood, music, retail and wireless phone. Without Steve Jobs and his leadership at Apple Inc, NeXT and Pixar, the world would not enjoy some of the things that seem commonplace today. Among these things are digital music and movies, computer animated films, Macintosh computers, iPods and the iPhone.
What Kind of Leader is Steve Jobs?
Leadership is very complex, and it is difficult to point to a person and label them as a certain kind of leader. Burns (1978) observes, “leadership is one of the most observed and least understood phenomena on earth” (p.2). Therefore, the task of classifying Steve Jobs as certain kind of leader is difficult and perhaps impossible. With that said, it is reasonable to draw some conclusions and make general observations of Steve Jobs’ leadership approach.
Steve Jobs is a leader who is very focused and does not take “no” for an answer. He seems to be able to sort through a maze of competing interests and projects to select that which delivers the most impact. He is known to make unpopular decisions and to stand by them in the face of fierce opposition.
Steve Jobs sets a high standard of expectations for those who work with him and for the products that his company produces. He is known to be hard on people. Even Apple’s suppliers admit that working with Steve Jobs is difficult because of his high level of expectation (Useem, 2007). However, those who work for Steve Jobs admit that he has inspired their best work (Elkind, 2008). He seems to be a very demanding leader and at the same time a very inspirational leader.
Steve Jobs commands significant influence. He is influential not only at Apple Inc., but also in his and other industries. He was able to convince record label companies to distribute music electronically at a time when they were very skeptical of this distribution model and were afraid of music piracy (Schlender, 2007). Steve Jobs was able to negotiate a very favorable contract with Disney for the marketing and distribution of computer animated films produced by Pixar (Young & Simon, 2005). This arrangement lead to the success of Pixar and eventual purchase by Disney. Beside these examples, the narrative data was filled with evidence to confirm that Steve Jobs is an influential and transformational leader.
In a more condensed version, Steve Jobs can be described as a determined, exacting, inspiring and influential leader. He is able to chart a course and stick to it, inspire others to follow him and produce results beyond their expectation; and exert enough influence to effect change across industries.
Lessons for Leaders
Each leadership situation is different and may require a different kind of leader. However, after reflecting on the leadership approach of Steve Jobs, it is clear that some leadership characteristics can be emulated by other leaders.
Leaders can learn from Steve Jobs the intense focus on what is most important, his ability to say “no” to mediocre projects competing for attention and resources. Leaders who learn to exercise unwavering resolve in their decision making may find similar success to Steve Jobs.
Further, leaders can be inspired by Steve Jobs to hold a high standard for themselves and their followers. Although Steve Jobs tends to be hard on people, his high expectations challenge his followers to produce exceptional results. Leaders who strive to live and work according to high standards will challenge their followers to do the same, which should lead to great results for the followers, the leader and the organization.
Aspiring or current leaders can take away two major lessons from this study of Steve Jobs’ leadership approach. First, develop a keen focus and an unwavering resolve to do what is absolutely essential. Second, strive to set a high standard of expectations for oneself and one’s followers. When these lessons are applied, improvement in focus and follower performance may be expected.
Limitations
As is common to human nature, limitations are present in practically all aspects of life. The same is true for this research study. The author finds it necessary to discuss these limitations.
The study relied solely on secondary data. Although there were advantages to using secondary data, such as ease of access and low cost, the use of such data presented some limitations. The greatest limitation in using secondary data was the inability to interact with the subject of the study. There was no opportunity to clarify findings and emerging themes. A study that incorporates interviews of people who work closely with Steve Jobs would be able to provide greater insight into his character and leadership approach.
Another limitation was time. In many cases this is a common limitation. With greater time it would be possible to gather and analyze a greater set of data. A more expanded scope of the data would potentially provide deeper and broader insight into the leadership approach of Steve Jobs.
Summary
This chapter outlined the findings of the study. The major themes that emerged from data analysis were level 5 leadership, hedgehog concept and transformational leadership. These themes were further expanded into concepts such as deep passion, unwavering resolve, inspiration and innovation.
Through the analysis of the data, it became clear that Steve Jobs resembles some of the key components of the concepts outlined above. The components of level 5 leadership that were more apparent are unwavering resolve and ambition for the company. The other two, compelling modesty and the notion of the window and the mirror, were not as clear. It was evident that Steve Jobs and Apple Inc. have the notion of the hedgehog concept. Steve Jobs’ focus on innovation and creation of great products channels the energies of the company on a narrow selection of products, which it hones to near perfection.
Lastly, the data made clear that Steve Jobs can be considered a transformational leader. His leadership influence and ability to effect change are felt beyond Apple Inc. and are evident in several other industries. Steve Jobs, through his leadership, has made a lasting impression on industries such as computer, Hollywood, music, retail and wireless phone.
Steve Jobs is a transformational leader who has found what he loves to do early in life. He has effected change in numerous areas and continues to do so to this day, the most recent of which is the iPhone that is transforming the wireless phone industry.
Next: Chapter 5 – Conclusion
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