From Steve Jobs to Tim Cook
Steven Jobs cofounded Apple Computer with Steven Wozniak back in 1976 in Jobs's family garage. At age 21, Steven Jobs coproduced the first PC and Apple Computer; at 25 Jobs was running Apple with a net worth of $25 million, and at age 26 he made the cover of Time magazine. Over the years, Jobs was consistently ranked as one of the best CEO leaders of all times. In 2011, eight of the ten most read Wall Street Journal articles were about Steve Jobs and Apple products.
Jobs also started two other companies. In 1985, Jobs started NeXT (a computer platform development). In 1986, he went to Hollywood starting what became Pixar Animated Studios. Jobs contracted with Disney to produce a number of computer-animated feature films, which Disney would co- finance and distribute. In 2006, Jobs sold Pixar to Disney and became its largest shareholder. In fact, Jobs's shares in Disney were worth more than five times the value of his Apple stock.
Most of us never have any real influence over any industry, but Jobs is ranked #1 for his leadership and power in influencing five industries: computers (coproducer of the PC-Mac), Hollywood (Pixar), music (iPod), retailing (iTunes and Apple stores), and wireless phones/telecom (iPhone and iPad). So far, no one has had more influence over a broader range of businesses than Jobs. Some say that his influence actually trans- formed these industries.
On August 24, 2011, Jobs resigned as CEO, naming Tim Cook as his successor. Jobs died in October 2011. Many people questioned whether Apple could succeed without Jobs. Being seriously ill for a couple of years, without hype or fanfare, Jobs was quietly making sure Apple success would continue. In his resignation letter, Jobs wrote, "I believe Apple's brightest and most innovative days are ahead of it." Apple insiders say that Cook was really the driving force for two years prior to Jobs's resignation.99 To his own credit, in his first year as CEO, Tim Cook was ranked 8th on the Fortune 2011 Business Per- son of the Year.
CEO Tim Cook's performance was assessed a year after the death of Steve Jobs.Tim Cook is not trying to be Jobs's clone and is making his own mark changing Apple.101 He is a different type of leader than Jobs-being less emotional and more of a professional manager. Cook got the operations side working better than ever, coordinating suppliers to deliver on the unprecedented sale of the iPhone 5 in nearly 30 countries, and Apple is on track to launch it in 100 countries. Cook is quicker to admit product flaws and take corrective action than Jobs, such as the faulty Maps on the iPhone 5.102 Cook has also given a stockholder dividend and is placing greater emphasis on corporate social responsibility, such as charitable contributions that Jobs was against.
A year after Jobs's death, Apple stock was up 75 percent, making it the most valuable company in the world. In 2013, Apple was ranked 1st on the Fortune World's Most Admired Companies,104 ranked 6th for revenues on the Fortune 500 U.S. largest corporations, 2nd by profits of $41,733,000,105 and ranked 19th on the Global 500 largest corporations.106 It is also ranked 4th as the most trusted U.S. brands.107
One thing Cook says he will not change is the Apple's focus on making the best products in the world-not just good ones, or lots of them-the absolute best. Cook really likes the fact that people really care so much about Apple and its products. The final grade for Cook: No one is saying Apple is better off without Jobs, but to a surprising degree, Apple is doing fine without him.
However, Cook is not without critics. Even some who say he did a good job in his first year question, Can he keep it up? One criticism is that there are no new product categories (such as no Apple TV set).
Only time will tell if Cook can keep Apple's momentum going. Jobs found the secret to career fulfillment-he discovered something he was good at and loved to do. We can't all be another Steve Jobs, but we can find career fulfillment.
1. Explain how each of the five elements of our definition of leadership applies to Tim Cook leading Apple.
2. Explain how each of the leadership theory classifications applies to this case, and which one is most relevant.