Steve jobs leadership


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Steve jobs leadership

  1. 1. LEADERSHIP IN BUSINESS “International Business Leader” “Steve Jobs” Prepared By: Eka Darmadi Lim 3094802 Class: Y University of Surabaya Faculty of Business and Economics International Business Networking 2012
  2. 2. Leader Profile Name : Steven Paul “Steve” Jobs Born : San Francisco, February 24, 1955 Nationality : American Occupation : CEO Apple.Inc, CEO Pizar Religion : Zen Buddhism Signature : Childhood Story While summer in 1954, Joanne and Abdulfattah as the biology parents of Steve, in that time Joanne found that she already pregnant before married, and Joanne decide to give her child to be adopted by wealth parent that want a boy child, for the first plan that Steve will be adopted by a lawyer, but the plan is change! Steve adopted by Clara Jobs and Paul Jobs only poor family. In year 1950, they move to small city called “Silicon Valley” a place, near of Paul’s new office. That time, Steve love to modify in machine and car, Paul is one of the inspiratory for Steve especially in design. Through car modify Steve learn electronic for the first time. Joseph Eichler as biggest property agent in U.S gives inspiration for Steve to create a product with good design, detail and for international market. That the story begins with iPod (the first product of Apple that can be sold International best product)
  3. 3. Education Background Steve jobs attended Cupertino Junior High School and Homestead High School in Cupertino, California. Then Steve continues to Reed College in Portland Oregon. But that too expensive for Paul and Clara, then Steve drop out and spend those 18 months in calligraphy class. Carrier Experience 1976 – 1978: as Apple Owner 1979 – 1985: as Apple Manager 1985 – 1996: fired from Apple and establish NeXT & CEO Pixar 1996 – 2011: back to Apple as CEO Company Profile Apple.Inc (Apple) established in 1977, main business of Apple.Inc is Personal Computer (MAC), online store (iTunes), mobile phone and music (iPhone, iPod) and also Tablet PC (iPad). Apple focus in designing technology that customer not only buys the regular product, but they buy art! Now apple occupied more than 80% mobile mp3 player through iPod and 60% tablet PC market in U.S the revenue in 2012 up to U$ 39.2 Billion. (2012 – Q2) (Apple Press Info) Introduction Beginnings Steve never graduates His collage, but he has passion for computers, first Steve and Wozniak establish Apple Computer in 1976, in his garage with Wozniak. While Steve is expert in marketing strategy and Wozniak expert in hardware PC, and Steve vision to build Apple I, that offer revolutionary keyboard, screen, and mouse. In 1977 Apple released the first computer on the market in U.S. and Apple Computer trading stock valued over US$200 Million business (Young & Simon, 2005)
  4. 4. Middle Story In 1985, Steve was fired from Apple, because Steve invests high value of money to “Apple” and as head division of Macintosh Steve created unhealthy rivalry between Apple II and Macintosh. Steve give more resources for Macintosh but for Apple II division only few. This cause employee in Apple II unhappy with Steve, after struggle with Apple CEO, finally Steve dismissed from Macintosh division in 1985. “What I’m best at doing is finding a group of talented people and making things with them. And if there’s no place for me to make things there, then I’ll do what I did twice before. I’ll make my own place.” — Steve Jobs (cited in Young & Simon, 2005: 123) Its new lesson for Steve while He departure from Apple, for Steve it was a humbling experience, the media and friend hardened Steve, rendering him more circumspect and misunderstanding of other people. And that time Steve reputation just fall, and Steve start to build new company, because he has passion in computer, so he established company named “NeXT Computer” that exclusively for the education purpose like university and research lab. In year 1996 Steve want NeXT to compete with Apple, but still can’t emulate his successes at Apple. Return Home (Apple) In late 1996, Steve agrees to sell his company NeXT to Apple, valued at US$ 400 million. While in 1990 (without Steve) Apple sales increasingly down, Research and development in Apple also pay high cost. So the board of director agrees to buy NeXT, so Apple can gain access to NeXTSTEP (as new operating system that called “Mac”). Steve realize that the company insolvency, so Steve first order of business was to prove his commitment Apple’s turnaround, he only ask only US$ 1 for his
  5. 5. salary. And over a month, Steve “scratches” and conducted a “one man focus group”, deciding which divisions to save and which to close. “…it comes from saying ‘no’ to 1,000 things to make sure we don't get on the wrong track or try to do too much. 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.” — Steve Jobs (BusinessWeek Online, 2004) Steve plan a very simple business plan, Apple was going to focus on making four computer products, that really well. One customer desktop, one consumer mobile, one professional desktop, and one professional portable. With Steve sharp decision making, it saves Apple from certain bankruptcy and become a successful company. Raise up Apple While Steve “returns” to Apple, Steve was hailed as one of the greatest “second acts” in business history. Steve exhibited outstanding leadership method in apple with four products, arresting financial hemorrhaging and stabilizing the company’s bottom line, in 1997 Steve confidently stated that Apple should emphasized to make the perfect product. “The cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament.” — Steve Jobs (Linzmayer, 2004: 264) Revolution of Apple start with new product called “iMac” iMac is the first all in one integrated both CPU and monitor in one piece. And iMac is breakthrough in Apple, why iMac can be popular? Because the design (beauty) and the functional is good compared to the PC (windows). Not
  6. 6. only iMac, but Steve also builds Mac OS X, iTunes Store (2003), MacBook, iPhone (2007), iPod (1995), iPad (2010). Steve leadership to build the Apple Company from bankruptcy to become the world’s best company. Steve made Apple Conference and organized that event by himself, and of course being rejected by his own company has change Steve, thank you for every behalf of his colleagues. “I get to come to work everyday and work with the most talented people on the planet, at Apple and Pixar. The best job in the world. But these jobs are team sports.” — Steve Jobs (Young & Simon, 2005: 2-3) Steve Jobs Performance in Apple Conference 1. Macworld 1997  “The Microsoft Deal” 2. Apple Special Event 2001  “The iPod Introduction” 3. WWDC 2002  “The Mac OS 9 ‘Eulogy’ 4. Macworld 2007  “The iPhone Introduction” 5. Macworld 2008  “Macbook Air, Apple TV” 6. WWDC 2008  “iPhone 3G, Mobile Me” 7. Apple Music Event 2008  “Reveal in Music” 8. Apple Special Event 2008  “What’s new in Mac” 9. Apple Special Event 2009  “Innovation in Music” 10. Apple Announces iPad  “Magical & Revolutionary” 11. Apple iOS 4  “iOS 4 Announcement” 12. WWDC 2010  “Introducing the iPhone 4” 13. Apple Special Event 2010  “iTunes 10, Ping!” 14. Apple Special Event 2010  “New Macbook Air, iLife 11” 15. Apple Announces iPad 2  “iPad 2 and iOS 4.3” 16. Apple WWDC 2011  “Mac OS X Lion, iOS 5, iCloud” The key success of Steve Job keynote, because he can deliver their passion to the audience, because Steve Job is charismatic leader and he can influence people by his charisma, that’s why in the beginning of Apple, Steve is good in marketing.
  7. 7. Apple.Inc Business Level 1) Unique Features and Characteristic 2) Commands Premium Price 3) High Customer Service 4) Superior Quality 5) Prestige 6) Rapid Innovation Steve start the apple with vertically integration, Apple build both hardware and software, and they always do conference every time they lunch new product, because Steve want Apple known by the world, not only for U.S market only, Apple only have several category of product they are personal computer (iMac), cell phone (iPhone), tablet computer (iPad), and online store (iTunes, App Store, Book Store). This vertical integration allow apple to control their product and also the product quality. And as the result, Steve was success to persuade the customer loyalty and a global brand with good price strength. Apple doesn’t create a cheap product, but apple create the design and powerful product for high level of customer. Theoretical Framework Leadership Characteristic The world ‘charisma’ is of Greek etymology, as the meaning ‘Gift’ or ‘divine favour’ means an innate and indescribable. That wielded, is a source of great power and influence over others (Northouse, 2007; Yukl,2006). While Weber regarded charisma as a ‘divinely inspired’ personality characteristic that emerged during crisis condition. The important point for house (1977) the charismatic leaders harness their dominant personality to influence the attitude and behaviors of followers.
  8. 8. Spoken their vision is the zenith of the influences process, furthermore is reinforced through symbolic acts such as self-sacrifice and personal risk taking by the leader to achieve the vision (Yukl, 2006). To observe that the charismatic leader as an exemplar for the vision is an ostensibly powerful image for the followers that is more effective when the leader express confidence in them and the vision; involves a collective identity, and ultimately empowers followers to ‘achieve’ (Yukl, 2006) The cogency of House’s (1997) theory lies in its discussion of follower effect, the charismatic leader’s performance cultivates a trust, affection and loyalty among followers. Who also experience a high sense of involvement and self-worth because they identify with the leader’s value system, ideology and ambitions (House, 1977; Northouse, 2007). The charismatic leader enunciates a relationship between the accomplishment of task objective and follower’s expression of value and self-concept, which equates the follower’s work role with their sense of self-worth. Steve Jobs is a Charismatic leader, Steve like to perform, calling attention to the materiality of the front stage. Steve likes to perform “art” as proceeds of charismatic leadership he had. Steve followed by his follower by his charisma. Alternative Approaches to Charismatic Leadership The psychodynamic approach explains why the charismatic leader comes to be regarded as a ‘spiritual figure’ of ‘superhero’. The seemingly irrational influence of the charismatic leader over followers is explained through, the psychodynamic process of regression, transference, and projection (Yukl, 2006). The follower of Steve Job, attracted to Steve, through narcissistic appeal, viewing in the leader. As the most primitive human bond, as offer the follower safety form feeling guilt and fear.
  9. 9. Meindl’s (1990) social contagion theory focuses upon the influence processes among followers that lead to their attribution of ‘charisma’, contending that spontaneous emotional and behavioural reactions are capable of being spread by people. That is, followers shift support to successive leaders, so long as the new candidate is attractive and qualified for the leadership position. Thus, social contagion explains the attribution of charisma by followers who may not interact with, or even observe the leader from a distance. The ‘Dark Side’ of Leadership and Charisma While extant theory indicates that charismatic leadership has the potential to inspire and rally followers toward the accomplishment of a goal or vision there is also a ‘dark side’ of charisma that can have a devastating impact on followers and the organization (Maccoby, 2004). The self confidence that Steve has, this leader often conceals flaws and risk in the leader vision. But in fact that his follower closely identify the leader strength and weaknesses. Maccoby (2004) alleges that narcissism is an underlying feature of charismatic leadership, describing them as poor listeners and highly sensitive to criticism. For example, while followers may feel they are offering meaningful and constructive feedback about a vision, the leader experiences criticism as an attack against his or her self- concept, because the vision is an expression of ‘self’. Steve never listen to his follower. The Long Term Impacts of Charismatic Leadership Weber (1947) was intrigued by the extent to which charisma may be integrated into the daily routines and practices of organizations, meaning that the energy, values and positive consequences of charismatic
  10. 10. leadership would be survived by the organisation well after the leader’s departure. Steve is revolutionary leader, he go to the Apple company and rise up from bankruptcy become the world class company. And Apple follower raise again believe that Steve gives Apple better future. Strength and Weakness Strength of Steve Job 1. High Communicative person 2. Strong Vision that bring the idea to truly talented person. 3. Focus leader 4. Express confidence 5. Love his Job 6. Leader that love his family 7. Create product that never dreamed before Weakness of Steve Job 1. Emotional Leader 2. Was not a good team player 3. Don’t accept the other idea While Apple in Steve leadership, Steve was a great leader that Apple has, Steve can create a product that never exist before, event we haven’t dream yet, and create that product beyond our imagination, Steve was a focus leader that he can create such as beautiful product because he focus only four things, they are Personal Computer, Mobile, Tablet, and online store. With his Charisma Steve lead 16 Apple conferences, and influence the sub ordinate also the Apple developer to believe every world he says, and achieve success together. Steve has a great idea and great people inside Apple to help him, achieve his dream. The key that Steve become successful in Apple, because he loves his job, Steve loyal to the company,
  11. 11. spend lot of time to prepare the conference, the dialogue, the keynote, to be perfect and meaningful for his audience. In Steve weakness, because he never hear his subordinate idea, Steve think that his idea is the best one, the great one, and the other idea just like junk, so in Steve leadership, He never hear his subordinate idea. In other words Steve was not a good team player, but He is a good team leader. But some moment Steve very emotional leader that he can easily to fired anyone who he think that don’t give the best contribution for Apple. Although Steve was a charismatic leader, for Steve 2 most important thing in his life is Work and Family. Power and Influence In Apple.Inc Steve, have position power, as CEO; he has legitimate power, Reward power, Coercive power, Information power, and ecological power. Steve also has personal power that can influence people around him. Traits and Skills Adaptable to situations In the story, Steve already pass many stages in his life, first when he was a child in a poor family, when he was in collage he drop off, when he started establish Apple and get fired, then he establish NeXT, then finally he return back to Apple. This kind of situation that make Steve as and adaptive leader, start from leading himself to leading huge company. Ambitious, Achievement oriented Steve is the person who really want to achieve his dream, his passion with technology can’t be stooped the story tell us that in middle 1985 Steve was fired from Apple, doesn’t make Steve desperate, but he
  12. 12. rise up and start new company. And after he back to Apple, the start again to achieve his dream to create revolutionary phone (iPhone) and revolutionary tablet (iPad). Both of iPhone and iPad is the new technology that people never think before 2007. Before Steve achieve his dream. Self-Confident Steve, always prepare his words before standing on the stage, Steve believe that he presented the great product, and it should be prepared with no mistake. This make Steve looks confident on the stage. Skills Clever (Intelligent) Steve is the smart person that combine between technology and art, in that time people like Bill Gates never think about the design in his operating system in that time windows only produce “DOS” and apple that time through Mac, build a system that user friendly and beautiful interface. And this beautiful interface is the first in the world. Creative Steve always make something new for the market, make something that people never think before, make a revolutionary product, and make trend in the market, Steve doesn’t follow the competitor product, but he create the trend that his follower will try to copy that innovation, like Tablet PC iPad, lot of competitor like Samsung, Sony, Acer, etc. want to compete iPad. Fluent in Speaking Steve is the best presenter ever I seen, he has talent to persuade people by the way he speak. Steve already speaks in 16 Apple conferences within past 20 years. And most of Steve Job presentation will end with
  13. 13. applause from the audience. Because the presentation always great. Steve always prepares every detail before stand on the stage. Fluent in speaking is one of the apple key successes, because through speaking we can transfer the information to the audience. Knowledge about the work Steve already have his own master plan for Apple, for the next 10 years this make Steve very excited with his job, that Steve believe that apple can achieve the highest level of innovation, event in that time (10 Years ago) it’s impossible to make it. Charismatic and Transformational Leadership Key indicator (Steve is Charismatic Leader) 1. Steve has impact his follower 2. Steve’s follower involve in Company Vision 3. Steve has high performance of Goals 4. Steve can contribute for the successful of Apple 5. Steve always reject suggestion form his follower 6. Steve was taking risk leader Discussion After learning about Steve Job leadership, we can discuss that Steve is Charismatic leadership, we can see Steve very confidence while he on the stage to promote their new innovation. He prepares everything perfectly that why we can see that Steve presentation is difference than the other leader. About Steve Jobs’ charismatic leadership since his return to Apple in 1997 is an absorbing story of atonement, learning and wisdom. It seems that the callow Jobs of the 1980s have been condemned to the history books, or at the very least. Let’s think although Steve Job never listens to
  14. 14. his subordinate, how the company can run well and being the world best company? The great things about Steve that he had clear vision and future plan for the company; he was a leader that led the change in the world. He inspirited lot of people! By his charismatic leadership he could move the apple company to be the world class company. Let’s think for a while, if Steve stay at NeXT company, and that time apple old CEO, doesn’t adopt Steve as the Apple CEO, may be lot of innovation that we can see today is not Apple product but NeXT product. May be there will be NeXT Pad, NeXT PC, NeXT Music, NeXT OS, or something else. Because the key success of Apple is developed by Steve and team, the Apple key success is written by Steve and team. Remember that when Steve kick out from Apple? Do you think that Apple Company becomes better? Improving? No! The sales of Apple that time decreasing! Apple suffers huge lost. And the board of director of Apple gets angrier with the CEO, and looking for the replacement, and that time they decide to pick Steve again. How if Steve gave up while he kicked off form Apple, may be now we can’t see the Apple company anymore! And he will never change people, and he will die as a regular person not history maker person. Steve style that looks doesn’t care with other, seems like a cool guy, may be that Steve knows that his life is limited, because he had a cancer inside his body that can kill him anytime, Steve already get liver donation in 2009 that ‘save’ his life little bit longer, and as we know that in October 5, 2011 (CNN) seems that the donation gives Steve 2 years extended of his life. In those 2 years of extended life, let see what Steve can do between 2 years. Start Music, DRAM-Free, iPhone OS 4, iPad 1, iPhone 4, iTunes 10, Macbook Air, Mac OS Lion, and iPad 2 generation. This innovation done by Steve just in 2 years!! Wow that awesome.
  15. 15. Conclusion Conclusion for this paper, we learn about one of the greatest leader in the world named Steve Job as CEO of Apple.Inc. in this paper we start with the biography of this leader, the story of early life of Steve Jobs is not always good, in fact the biological parent just hand over him to be adopted with other parent, not a rich parent, only ordinary parent that adopted Steve Job, and Steve can’t finish his collage study because his parent could not afford that cost. But Steve never gave up, he maximizing the capacity he had. Steve have the option to be a pessimistic person, but because he is charismatic person, he decided to kept strong and kept planning great and crazy idea that impossible to be achieved in those time. Steve also realize that inside his body had a cancer that can kill him anytime, so the say that “Your time is limited, so don't waste it living someone else's life – Steve Job 2005. This one of the reason why Steve is hard working person, he know that he limited but he want to maximizing every second he have in this life to be meaningful to the other, Steve passion not in money of wealth he just want do something he loves! Steve passion in Computer makes he wants to work hard event the company only pay US$ 1 / month for his salary. Of course not that small the income of Steve, the main income comes from the shared stock that Steve has around 30% of Apple Stock. Steve “real” productivity life only less than 10 years, but he already changes the world within 10 years! There is nothing too late to start, or too far to achieve as long as we still life, we have the opportunity to change the world. God already give us 24 hour a day, and this is enough for us to create something, to do something, to develop something, lot of people outside they never achieve those achievement not because the “luck” but because they never dream it, if they never dream it, how they can do it? If
  16. 16. they never do something different how they can achieve it? Our greatest resources that we have, never give up as long as we life. You can choose whether your life will change a lot of people, or just become an ordinary people. You decide by yourself. Reflection myself In my reflection after I read this story, I’m one of the fans of Steve Job, I’m so amazed about his product, how he become history maker in mobile computer industry, I remember while in 1995 that apple suffer to bankruptcy that time seems that the only hope for Apple was Steve only. And Steve could change the company, into the world greatest company! Steve is a person that has a passion with his job and he never give up, although not everything he did always success, but he is the person that always learn and learn. He always thinks about the momentum! In several years ago in 1993 Apple also has the Personal Data Assistant called ‘Newton’ and that time fail. Most of the board director think that never product PDA anymore, because it’s useless and cost a lot! But Steve believes in momentum that will be the time that everyone will use PDA, and in 2007 Apple lunch iPhone, and now in 2012 most of people in the world use the smartphone (the future of PDA). Several lessons that I get from Steve Job 1. Do something that you love 2. Do it totally (Perfect) 3. Have a vision 4. Don’t waste your time 5. If you can help people, you can be history maker 6. Share your profit with other I learn to be a strong person, to be a history maker, we should help the other, have a good vision not for our profit but also for people and planet, don’t waste time, if there some task, just do it right now. Believe in momentum that something that impossible now can be possible next year.
  17. 17. Own Personal Development Plan First I will finish my study first, with good grade; I will learn something that I never done before, and then I start to work with people to learn how to build the business. I do what I love, in technological industries. And to achieve that dream I should have clear vision, and believe in momentum I will met the right time and right person. And to be a successful person I must be a leader fist before I can change the world, I should change my community, people around me to be a better person. An Effective leader 1. A Leader that can lead a Team to achieve their Goals 2. A Leader that have strong vision 3. A Leader that has good spiritual experience 4. A Leader that has future plan 5. A Leader that love to learn 6. A Leader that Creative 7. A Leader that could control their emotion
  18. 18. References 1. Walter Isaacson (2011), “Steve Jobs” Biography book, Simon & Schuster, New York, 2011 2. Apple (2002), ‘Steve Jobs to kick off Apple's Worldwide Developers Conference 2002’, press release,, 15 April, accessed 1 August 2008, Cupertino, CA 3. Awamleh, R. & Gardner, W.L. (1999), ‘Perceptions of Leader Charisma and Effectiveness: The Effects of Vision Content, Delivery, and Organizational Performance’, Leadership Quarterly, 10(3), pp. 345-373. 4. Bryman, A. (1992), Charisma and Leadership in Organizations, London, UK: SAGE Publications. 5. Dolan, B. (2006), ‘Timeline of Apple "iPhone" Rumors (1999-Present)’, online article, Fierce Wireless, 18 December, accessed 10 March 2008, < 1999-present>