Challenges aplenty for Apple

Steven P Jobs, one of the most successful chief executives in corporate history, once said he never thought of himself as a manager, but as a leader. And, his notion of leadership revolved around choosing the best people possible, encouraging them and creating an environment in which they could do great work.

But the Apple team, analysts say, would face a far greater trial in achieving continued success without Jobs in charge. Jobs, who, on Wednesday, said he was stepping down as Apple’s chief executive, said in an interview shortly after he returned to the company in 1997 that his leadership style had changed over the years, as he matured.

In his early years at Apple, before he was forced out in 1985, Jobs was notoriously hands-on, meddling with details and berating colleagues. But later, first at Pixar, the computer-animation studio he co-founded, and in his second stint at Apple, he relied more on others, listening more and trusting members of his design and business teams.

In recent years, Jobs’ role at Apple has been more the corporate equivalent of “an unusually gifted and brilliant orchestra conductor,” said Michael Hawley, a professional pianist and computer scientist who worked for Jobs and has known him for years. “Steve has done a great job of recruiting a broad and deep talent base.”

At Pixar, with a solid leadership team in place, the studio never missed a beat, and it continued to generate one critically acclaimed and commercially successful hit after another, including Finding Nemo and Wall-E, long after Jobs had gone back to Apple.

It is by no means certain, analysts say, that things will go that smoothly for Apple. Jobs, they note, was far more in the background at Pixar, where creative decisions were guided by John Lasseter. Pixar was sold to Disney for $7.4 billion in 2006. At Apple, Jobs' influence is far more direct. He makes final decisions on product design, if not in detail. No immediate changes, analysts say, will likely be discernible.

“The good news for Apple is that the product road map in this industry is pretty much in place two and three years out,” said David B Yoffie, a professor at the Harvard Business School. “So, 80 per cent to 90 per cent of what would happen in that time would be the same, even without Steve.”

“The real challenge for Apple,” Yoffie continued, “will be what happens beyond that road map. Apple is going to need a new leader with a new way of recreating and managing the business in the future.”

Jobs’ hand-picked successor, Timothy Cook, who has been the company’s chief operating officer, has guided the company impressively during Jobs' medical leaves. But his greatest skill is as an operations expert rather than a product-design team leader —Jobs’ particular talent.

At Apple, Jobs has been the ultimate arbiter on products. For example, three iPhone prototypes were completed over the course of a year. The first two failed to meet Jobs’ exacting standards. The third prototype got his nod, and the iPhone shipped in June 2007.

©2011 The New York
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