Apple After Steve JobsPosted: September 10, 2010
Steve Jobs has done an amazing turnaround at Apple since he retook the helm. Apple was in a death spiral it appeared; yet today they are the most valuable tech company in the world. For a while Apple was a bitter, twisted company that produced nice looking products that nobody but fanatics bought. Today, everyone but my mother has an iPod, iPhone, iMac or iPad. Some poor souls like me have all four. Apple, in short, is king of consumer tech right now. Will that last forever? I for one doubt it.
Right now Apple has a great team headed by a visionary leader. At some point that team will grow old, run out of energy and start to fragment. Apple’s future will be determined by the ability of the company to create a new generation of leaders. I know I’m stating the obvious when I say that but my point is that it is easy to assume that Apple has that problem nailed in the same way they have their product strategy right now. But do they?
When news of Steve’s illness was pushed on to the market, people speculated about who would take over from him. All of that speculation tended to focus on internal rather than external candidates. This makes a great deal of sense and is most likely what will happen. However, if they do go internal we can expect the losers of that battle to be at best disenfranchised and at worst leave. This will in turn lead to a weaker team at the top. Furthermore Apple is likely to have to live through a period where any new CEO is constantly being measured against Steve. That’s a hard act to follow. They’re not going to get standing ovations like he does when they walk on stage at the Moscone for product launches. The crowd isn’t going to laugh at the little jokes that are thrown in. In other words the ‘Steve factor’ will be lost and Apple will be just another good company, rather than a great one.
When this happens, the door will be wide open for rivals large and small. Right now Apple is all but impossible to beat in the consumer space. Sure there are some that hate them but they are a minority. That could change very quickly. Microsoft could fix its mobile strategy, RIM could design a BlackBerry that iPhone users would like or some new player could appear.
My point in all this is that innovation within a company is directly linked to its success but is also linked to the people that run that company. They are the ones that decide which products to sell to whom and at what price. They are the ones that create the markets, the excitement and so on. While some companies do a good job of creating a culture of innovation, even they know that it is what you do with that innovation that matters. Put another way, you will only keep on winning for as long as you have the best team. Today Apple has that team but there will come a time when they don’t. And come that day, others will take their chance.