In this article, Steve Blank shares how Steve Jobs and Bill Gates had the same blind spot when they chose their successors, and why their successors, the world-class operation executives, may harm the long term survival of the successful technology companies.

1. WHY VISIONARY CEOS
NEVER HAVE VISIONARY
SUCCESSORS

2. Steve Blank
Silicon Valley serial-entrepreneur and academician
The Author
The full article is available at Harvard Business Review

3. Technologycommercialization manager
ExploitTechnologiesPte Ltd (ETPL)
AgencyforScience, TechnologyandResearch (A*STAR, Singapore)
B. Eng & Ph.d (Engineering)
NanyangTechnological University
Singapore
M.B.A.
INSEAD
Fontainebleau,France
Presentationby
LI Wei

4. Microsoft entered the 21st century as the
dominant software provider for computing devices

5. 16 years later, that dominance
is looking threadbare

7. Apple, the dominant tech firm for
the mobile era, is at risk of making
THESAMEMISTAKES

8. Microsoft

9. STEVEBALLMER

10. If you think the job of a CEO is …

11. Ballmer did a
SPECTACULARJob

12. In 14 years, he tripled
Microsoft’s sales to
x3 $78BILLION

13. But if the purpose of the company is its
LONG-TERM SURVIVAL

14. FAILURE
He was a

15. SHORT-TERM GAINS LONG-TERM OPPORTUNITIES
VS

16. HE MISSED
5
MOST
IMPORTANT
TECHNOLOGY
TRENDS

17. HE MISSED
5
MOST
IMPORTANT
TECHNOLOGY
TRENDS
Search Engine
LOSING TO GOOGLE
1

18. HE MISSED
5
MOST
IMPORTANT
TECHNOLOGY
TRENDS
Smart Phones
LOSING TO APPLE
2

19. HE MISSED
5
MOST
IMPORTANT
TECHNOLOGY
TRENDS
Mobile Operating Systems
LOSING TO GOOGLE/APPLE
3

20. HE MISSED
5
MOST
IMPORTANT
TECHNOLOGY
TRENDS
Media
LOSING TO APPLE/NETFLIX
4

21. HE MISSED
5
MOST
IMPORTANT
TECHNOLOGY
TRENDS
Cloud
LOSING TO AMAZON
5

22. A very smart CEO missed ALL of these?

23. It wasn’t that Microsoft
didn’t have smart engineers
and those projects

24. The problem was that
Ballmer organized the
company around
execution of its
current strengths
Windows & Office
Businesses

25. Projects not directly related to
those activities never gotserious
RESOURCE OR ATTENTION

26. Apple

27. TIMCOOK

28. One of the strengths of
visionary CEOs is that they build
WORLD-CLASS OPERATING EXECUTIVES

29. but they unconsciously force out
WORLD-CLASS INNOVATORS

30. STEVEJOBSPUTSTRONGOPERATINGEXECUTIVESTO
TRANSLATED HIS VISION
INTO PLANS, PROCESS AND PROCEDURES

31. When visionary founders depart …

32. When visionary founders depart …
The operating executives
start to run the company

33. When visionary founders depart …
The operating executives
start to run the company
With the blessing
of the ex-CEO

34. They get rid of …
HAOS

35. They value …
STABILITY / PROCESS / REPEATABLE EXECUTION

36. It often starts a
CREATIVE DEATH

37. Creative people start to leave,

38. Creative people start to leave,
and other executors are put
into more senior roles

39. They hire more process people,
which in turn forces out the
remaining creative talent

40. By 2016, Tim Cook has doubled Apple’s revenues to
$200 billion

41. Yet in 2011, 2012, 2013, 2014, 2015, 2016 …
The iPhone continues its
4S 5 5S 5C 6 6 plus 6s 6s plus 7 7 plus
INCREMENTAL IMPROVEMENTS

42. Yet in 2011, 2012, 2013, 2014, 2015, 2016 …

43. APPLE
DISRUPT
BUTTHE WORLDIS ABOUTTO
in the same way that
Microsoft was disrupted
under Ballmer

44. APPLE BRILLIANTLY MASTERED
PRODUCT DESIGNTO POWER THE IPHONE TO DOMINANCE

45. But Google and Amazon are betting
that the next of wave will be …
AI-DIRECTED
SERVICES

46. It’s not that Apple doesn’t
have exciting things going
on in their labs

47. The problem is …

48. ASUPPLYCHAINCEO

49. ASUPPLYCHAINCEOwho lacks a passion for products and has yet to
articulate a personal vision of Apple

50. Without that …

51. TO BRING THOSE INNOVATIONS TO MARKET
ILL-EQUIPPED
He is …

52. To conclude …

53. Steve Jobs and Bill Gates shared the
SAMEBLINDSPOT

54. They suggested …
EXECUTION
EXECUTIVESAS THEIR SUCCESSORS

55. FORWORLD-CLASS
OPERATION
EXECUTIVES PASSIONFORPRODUCTAND
MARKETINSIGHT
They confused …

56. Yet these two talents are not the same
FORWORLD-CLASS
OPERATION
EXECUTIVES PASSIONFORPRODUCTAND
MARKETINSIGHT

57. For long-term survival in markets that change rapidly,
one is FAR MORE IMPORTANT than the other

58. www.innodiary.org