Charismatic leadership steve jobs

AppleBackground Information

The name of Apple CEO and co‐founder Steve Jobs is synonymous with the Apple company. Fired from Apple in 1985, Jobs founded NeXT Computer, bought the Graphics Group from Lucasfilm and transformed it into Pixar Studios, and then returned to Apple as CEO in 1995. In his absence, Apple lost billions and its share of the personal computer market dropped from 9% to 2%. Jobs saved Apple by procuring a $150 million investment from Bill Gates and Microsoft and launching the iMac, a desktop machine that became one of Apple’s leading sellers. Most importantly, though, Jobs directed the development of Apple’s new operating system, OS X, an operating system that is speedy, simple to use, incredibly stable, and easy to write software for. OS X, in combination with easy‐to‐use software for film and picture editing, desktop publishing, presentations, and word processing, stabilized Apple’s sales and market share and put it in a financial position to eventually create the iPod, the iPhone, the iPad, and now iCloud. Today, Apple’s 10% share of the personal computer market is growing, and it has a large market share in smartphones, and a commanding market share in tablets and digital music.Furthermore, its combined stock value is greater than Intel and Microsoft combined.Distinct Leadership StylesJobs was known for his highly demanding and influential leadership at Apple. When Apple’s MobileMe service (which synchronized calendar and email and files across Macs, iPhones, and corporate networks)launched to terrible reviews and buggy performance, he berated the MobileMe team, telling them, “You’ve tarnished Apple’s reputation. You should hate each other for having let each other down.” He named a replacement manager on the spot. Jobs was also famous for saying “no.” A former Apple executive says, “Over and over Steve talks about the power of picking the things you don’t do.” Jobs said, “We’re always thinking about new markets we could enter. But it’s only by saying no… that you can concentrate on the things that are really important.” Yet, despite his toughness and discipline, Jobs was able to inspire Apple’s managers, software engineers, and designers to create elegant, simple, innovative products. Jeff Robbin, Apple’s lead software designer for iTunes and the iPod said, “I remember sitting with Steve and some other people night after night from nine until one, working out the user interface for the first iPod. It evolved by trial and error into something a little simpler every day.We knew we had reached the end when we looked at each other and said, ‘Well, of course. Why would we want to do it any other way?’”Apple’s future was bright, but Jobs’ health was a concern. In 2004 and 2009, he took medical leaves due to pancreatic cancer, a liver transplant, and an inability to maintain weight. In January 2011, he announced his third medical leave, telling Apple’s 50,000 employees, “I love Apple so much and hope to be back as soon as I can. In the methe antime, my family and I would deeply appreciate respect for our privacy.” In October 2011, Jobs died, one month after handing the CEO job to long‐time COO, Tim Cook.Jobs’ charismatic leadership was clearly central to Apple’s success. But can Apple continue to succeed without him? You know that charismatic leaders articulate a clear vision for the future that is based on strongly held values or morals, model the values by acting in a way consistent with the vision, communicate high-performance expectations to followers, and display confidence in followers’ abilities to achieve the vision. (Jobs was known for being highly demanding, for his critical outbursts when

performance falls short, and for holding executives accountable for failure), Jobs was clearly a charismatic leader. Furthermore, his highly successful return to Apple fits with the pattern of charismatic leaders who tend to emerge in times of crisis. Likewise, Jobs was seen as larger‐than‐life most inside and outside of Apple. The challenge for Apple is replacing a charismatic leader like Jobs.This kind of thinking illustrates one of the basic assumptions about leadership, namely that leaders always matter. According to this thinking, organizations are sure to fail without sound leadership and almost certain to fail when a charismatic leader like Steve Jobs leaves. Leadership, however, isn’t always needed. Furthermore, charismatic leadership isn’t always needed. Stanford business professor Jeffrey Pfeffer says surviving the exit of a charismatic leader depends on preserving or strengthening the part of the company that made the company great (under the charismatic leader). Wal‐Mart continued to grow after founder Sam Walton’s death by maintaining its focus on low costs and its competitive advantage in supply chain and information