How Steve Jobs Rose to the Top

“The dwarf sees farther than the giant, when he has the giant’s shoulder to mount on.”
—Samuel Taylor Coleridge, in The Friend (1828)

Steve Jobs: He Stood on Others ShouldersEvery business executive and aspiring entrepreneur should read Steve Jobs, a biography by Walter Issacson. It provides a frank, unadulterated look at the career of the greatest business executive in our time. Consider this. Job’s founded Apple in 1976, which began as a 4-person operation in his father’s garage. By 2011, it became the world’s most valuable company by market capitalization. I agree with Isaacson’s contention that Jobs belongs right up there in the pantheon next to Ford and Edison.

There are many takeaways from this book. One of the “lessons learned” is that Jobs stood on the shoulders of others in order to achieve his phenomenal success. We all need mentors, and Steve Jobs needed them more than most. Given up for adoption by his biological parents, he spent much of his life looking for a father figure who he could emulate:

Personal Role Models

            • Paul R. Jobs, his adoptive father, who enjoyed refurbishing and selling used cars after work. Steve spent hours by his father’s side, “eager to hangout with his dad.” Job’s dad was the first person to provide him with exposure to electronics. And the rest is history.
            • Kobun Chino, a Soōtoō Zen master, who served as Steve Job’s spiritual guru. Job’s longtime teacher presided at Job’s wedding. For Jobs, Zen represented more than a philosophy of life; it also infused his thinking about design, which he felt ought to embrace beauty, minimalism and simplicity.

Business Role Models

            • Arthur Rock, a venture capitalist and early Apple Board member, took Jobs under his wing. However, the relationship was about more than just business. “Arthur had been like a father to me,” said Jobs. Rock and his wife Toni hosted Jobs in Aspen and San Francisco. He also taught Jobs about opera.
            • Mike Markkula, Jr., an angel investor and Board member of Apple, was the third employee of the company. Like Rock, he also became a father figure to Jobs. Markkula taught Jobs how to market, sell and package a product. Markkula oversaw Jobs growth and maturation. He served as Apple’s CEO from 1981 to 1983.

Ironically, Rock and Markkula eventually distanced themselves from Jobs. Here is the story. In 1983, Jobs recruited and hired John Sculley, President of PersiCo, to become Apple’s CEO. Two years later, Jobs had second thoughts. He and Sculley had a showdown before Apple’s Board of Directors. Both Rock and Markkula sided with Sculley. Years later, in recounting this event, Jobs broke down in tears. He felt betrayed by his business father-figures, much in the same way that he felt abandoned at birth by his biological father.

We all need shoulders to stand on, particularly during the formative phases of our careers. The poet John Donne said it best: “No man is an island.”

At the age of 16, I was inspired by Dr. Winters, a visiting minister who had a daytime job as a consultant to G.M. He was an outstanding speaker, and imparted numerous, fundamental life-lessons. He piqued my curiosity about business. Many years later, I worked with an external company consultant, A.K. His ideas brought about significant changes within the organization where I was employed. From him, I learned about the power of ideas, and how to present them well. As a result, my career direction changed from management to consulting.

What are your passions? Do you have a coach/mentor/boss/friend who you can learn from? Whose shoulders are you standing on in order to achieve the goals that you seek?

The Creative Mind of Steve Jobs

When a creative individual masters one field, and then uses what they know to think about another, often truly original ideas–or mind-bending products–are the result. The story of Steve Jobs is a case in point.

A Woman Reading an ebook on an Ipad 2

A Woman Reading an ebook on an Ipad 2

The Apple CEO dropped out of Reed College, but he hung around campus for 6 months, often sleeping on the floors in dorms where his friends lived. Jobs used the time to attend classes that interested him.  During one term, he took a calligraphy seminar, a subject wherein Reed College excelled.

Years later, when Jobs oversaw the design of the first iMac computer, he commented that all of the calligraphy instruction came back to him, so much so that he incorporated it into the iMac’s software. The end result was the development of the first computer to contain a variety of typefaces and proportionately spaced fonts, a hallmark of the Apple brand. Because Windows PC manufacturers’ copied many of Apple’s designs, had Jobs not dropped in on that class, none of today’s computers would have all of the exciting multiple typefaces.

Job’s innovativeness is shown in the progression of breakthrough Apple products: iMac, iPod, iTunes, iPhone, and now, the iPad. The original iPad came to US stores on April 3, 2010. In less than a year, it has reached $1 billion in revenue, an achievement that few products have ever attained.

Not content with resting on his laurels, Job’s spearheaded the re-design of the iPad. The new version, known as the iPad 2, is being released in stores today. As described in the New York Times, the salient design improvements include more thinness, less weight, more integration, greater beauty—and over 65,000 apps.

In conclusion, technological companies like Apple do require engineers who are experts in science and math. But creativity in product innovation is not based on science and math alone. As described in the book The World is Flat, creativity is about making connections between history, art, politics and science.

Are you a creative manager, designer or executive? How do you connect the dots?

 

Steve Jobs Launches the iPad 2

Apple, iPad, Steve JobsAccording to Bloomberg Business Week, Apple CEO Steve Jobs personally released the iPad 2 at a company event in San Francisco earlier today. This newly evolved Tablet PC is 33 percent thinner than its predecessor, has faster processing power as well as front and rear cameras. It begins shipping in the US on March 11 and internationally on March 25, at the same $499 starting price as the original model.

According to a recent survey by the Boston Consulting Group, Apple is the #1 company in the world for product innovation. And most of the Apple’s product ideas are the brainchild of Jobs. Rather than relying on market surveys that attempt to measure consumer preferences, Apple’s founder has the uncanny ability to understand what consumers’ want, even before they know what they want. He is a soothsayer of complex technological trends, and provides the overall direction for the development of new products and services.

The execution of the detailed nuts and bolts design is left to his chief design lieutenant, Jonathan Ive, a graduate of  Newcastle Polytechnic in England.  Although Jobs looks at the big picture, he is still a hands on executive who–when Apple opened their first retail store in Manhattan–had the marble drop shipped from the company’s Italian supplier directly to corporate headquarters in Cupertino, California, so that he could inspect the veining.

Design geniuses like Jobs come along once in a generation. As long as he is able to remain in charge of new product development, Apple should continue to remain at the top of the heap as far as product innovation is concerned. So it is not surprising that, soon after Jobs appeared today, Apple stock rose by as much as $4.63 a share.

How important is Jobs to Apple’s success in developing new products that delight consumers?

What the Halt in Sales of the Lexus GX460 Means

The senior management team in Toyota City, Japan has designed the systems, strategies and organizational structures that have culminated in the recall of the GX460. As described in today’s Wall Street Journal, a power struggle is diverting top management’s attention from solving a multitude of internal problems:

Toyota’s CEO Ako Toyoda has demonstrated an abysmal lack of leadership. See recent blog post

  • Despite recalling cars in Europe in order to replace defective accelerator pedals, Toyota continued to ship cars to US customers containing these same defective accelerator pedals. Also, Toyota has consistently stonewalled the NHTSA to avoid having to issue recalls, despite documented safety issues. This behavior—on the part of Toyota’s management—is unethical.
  • There has been a lack of communication between management in Toyota City (Japan), Europe and the US top management team. Although US senior management pointed out quality problems several years ago, these calls for action appeared to be unheeded by senior management in Japan. The current organizational structure is dysfunctional. It needs to be thrown out, and replaced.
  • The  Toyota Production System (TPS) used to represent the quality gold standard that other manufacturers benchmarked against. Taiichi Ohno, a Toyota executive, founded this system. He described its essence as “removing the non-value-added wastes.” Toyota has recently recalled over 8 million automobiles, an incredibly humongous “non-value-added waste.” All of the company’s stakeholders have incurred the costs associated with these recalls:  customers, stockholders, and employees. Clearly, the TPS–as Ohno envisioned it–is broken.
  • In the book The Toyota Way, Jeffrey Liker—who spent 20 years studying Toyota—describes the essence of the Toyota culture as being a focus on “respect for people” as well as a focus on “quality over profits.” Over the past decade senior management has emphasized growth, market share and profits. Clearly, the chickens are coming home to roost. To right the ship, senior management must renew its commitment to quality and safety over profits and growth.

The one hopeful sign about stopping sales of the GX460 is that top management is finally pulling the andon cord, stopping the sale of an ostensibly defective product.

A Toyota Production Line

A Toyota Production Line: Empowering The Worker To Shut It Down is the Essence of the Toyota Way

Pulling the andon cord was a practice originated by Toyota when the worker on the assembly line could stop production at the first sign of a quality problem. Rather than stonewalling the authorities–as Toyota’s top management has done with the NHTSA—senior management is finally starting to eat its own dog food.

What is your opinion? Do you think that Toyota is experiencing just a bump in the road, or do the company’s current troubles stem from some fundamental issues?

Leadership at Toyota: Honor Your Followers

Fail to honor people

They fail to honor you;

but of a good leader, who talks little,

When his work is done, his aim fulfilled,

They will say, “We did this ourselves.”

Lao Tzu

 

On 2/5/2010, Akio Toyoda, CEO and grandson of Toyota’s founder, broke his almost total silence in response to the safety crisis that confronted his company. In Japan, an apology is considered an art form. Although he apologized before and after the press conference, his apology was widely criticized by the press.

For example, Mr. Toyoda began and ended the press conference with a bow, but it was not the customary Japanese-style deep long bow of contrition.( Toyota Apologizes for Massive Recall) Mr. Toyoda bungled his apology in the same way that his company has bungled quality control. Furthermore, upon being asked a couple of questions, Mr. Toyoda appeared to be in denial that his company had any safety problems, as shown in the following clip:


How did Mr. Toyoda’s assertion that “Believe me, Toyota car is safety…” relate to the fears of Toyota’s customers who were being subjected to harrowing news stories of Toyota vehicles accelerating out of control?

In the above video clip—as well as in his tangled apology—Mr. Toyoda failed to honor the company’s millions of stakeholders:   dealers, employees, suppliers, and customers.

How to Lead Toyota Out of Crisis

There are literally hundreds of definitions of leadership. In the context of Toyota’s problems, I suggest that Mr. Toyoda heed the words of Warren Bennis. In the book Leaders: The Strategies for Taking Charge, Warren Bennis and Burt Nanus interview 90 leaders in their day, from Neil Armstrong to Ray Kroc, founder of McDonalds.

Leadership is a complex issue as there are many aspects to it. In this post, I will discuss only a couple of behaviors that the CEO of an organization must demonstrate.  Here is one thing. Bennis indicated that the job of the leader is to instill vision, meaning and trust in his followers. The leader has to be a good listener, showing sensitivity to the needs of the organizations’ many constituencies. For example, former US President Clinton famously stated “I feel your pain” when looking at an unemployed man in a town hall debate forum. This empathetic phrase was a crucial moment in his campaign for the Presidency of the U.S.  Mr. Toyoda must empathize with his customers, employees, dealerships and suppliers much in the same way that candidate Clinton empathized with the  electorate during the 1992 campaign. By listening to the “voice of his customers,” Mr. Toyoda will probably be able to regain their trust.

Furthermore, what Mr. Toyoda must provide is a vision of how Toyota’s will look, five years in the future, its future state. Inventing images, metaphors and models, Mr. Toyoda must depict a company that stands for quality. This vision is necessary to possibly regain the support of Toyota’s employees, dealers, suppliers and customers. The methods and strategies required to achieve this vision must also be laid out in the months to come.

This will be the first of several posts about leadership at Toyota. Although leadership at the top is crucial, there are three other issues that top management must address to restore Toyota to its former glory. For details, read the post: Troubles in Toyota City

Troubles in Toyota City

At one time, the name “Toyota” was synonymous with quality, because the company originated and perfected the management philosophy known as  Total Quality Management (TQM). Executives from a wide-range of industries traveled to Toyota plants to understand how the company achieved its success; Harvard Business Review articles distilled the “DNA” of the Toyota Production System (TPS); and university textbooks–in chapters about quality management–described the superiority of the “Toyota Way.” What Happened?

Following is an abbreviated description of the four causes of Toyota’s problems. In subsequent posts, I will elaborate upon each one:

Lack of Senior Management Leadership

Senior management leadership begins with the CEO of the organization, President Akio Toyoda, CEO and grandson of Toyota’s founder. To date, his performance as a leader has been abysmal. After his company recalled 6 million vehicles, he held a press conference that was a disaster. Rather than apologizing for the company’s quality problems, he seemed to defend the company by saying that “Believe me, Toyota’s car is safety. But we will try to make our product better.” In a February 10, 2010 piece in The Financial Times of London (How Toyota engineered its own downfall”), David Pilling characterized Toyoda’s statement as being “weird.”

In fact four years ago, Jim Press, Toyota USA’s President made an internal presentation directed to senior management at Toyota City in which he indicated  that “an increasing number of safety recalls are harming the company’s image.” (Times Online, “…Toyota problems surfaced in 2006 “) Rather than proactively moving the company in a different direction, focusing on quality over profits, Press’s presentation met with deaf ears.

Cracks in the Toyota Production System (TPS)

Toyota’s world-wide production more than doubled between 1985 and 2008. Specifically, production grew from slightly less than 4 million world-wide vehicles sold in 1985 to approximately 8.9 million vehicles sold in 2008. To support this growth, Toyota had to add many new employees and new suppliers.

The TPS is a rigorous system—based on the scientific method—that requires intensive training between  teachers and students. It appears that Toyota was not able to scale up and provide adequate training to the many new employees and suppliers that were added. As a result, the company was unable to replicate the Toyota DNA (Learning from Toyota’s Stumble by Steven Spear).

Also, a fundamental principle of the TPS is that a company must listen to the “voice of the customer” and provide features and functions in products that–at a minimum–meet the customer’s requirements. The customers of Toyota’s products want safety, but these needs have not been met. Along these lines, Japan’s Transport Minister, Seiji Maehara, suggested that Toyota was not appropriately sensitive to consumer complaints. (WSJ: A Crisis Made In Japan)

Dysfunctional Organization Structure & A Secretive Culture

In 2008 Toyota’s European unit encountered problems with the sudden surging and slowing down of cars. The European unit determined that the problem stemmed from a plastic part in the accelerator pedal. This plastic part was also used extensively in the US. Although Toyota redesigned the pedals, they didn’t alert its US unit to the situation in Europe. (“Secretive Culture Led Toyota Astray,” WSJ). In addition, there have been documented communication problems between the US senior management team and their Japanese counterparts.

There is a saying in Japan, “If it stinks, put a lid on it.” Rather than admitting culpability relating to the various quality issues with Toyota automobiles, senior management has essentially stone-walled the National Highway Traffic Safety Administration (NHTSA) organization for many years. Initially, Toyota denied and minimized problems with their brake systems and runaway vehicles. Dealing openly with their problems upfront would have saved Toyota substantial monies and lessened public outrage.

Flaws in the New Product Development System

Braking and acceleration systems have become increasingly complicated, partly as a result of US government fuel-economy mandates. Cars of all makes—not just Toyota’s—have many millions of lines of programming codes that control complex, computer-based systems. Could the increasing complexity in today’s automobiles in turn be leading to reliability problems?

But apart from the documented braking and acceleration problems, there have been other product design issues that have bedeviled Toyota. To cite a few, in 2009 Toyota recalled Tundra pickup trucks because corrosion could have resulted in the spare tire falling off. In 2010, Toyota recently recalled 2010 Tacoma pickup trucks to fix problems with the propeller shaft; in August, 2009 Toyota recalled 95,000 small cars in 19 cold-weather states because brakes could possibly lose their power assist. The data suggests that Toyota’s quality slide began years ago as indicated in the Consumer Reports 2007 Car Reliability Survey (Consumer Reports: Toyota Quality Sees Cracks in its Armor)

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These four problems are intertwined. Senior management is responsible for designing the systems and organizational structures which in turn impact quality. These 4 causative factors and their inter-connections are illustrated in the following diagram:

Toyota's Four Causes of Quality Recalls

Toyota is a great company that has stumbled. By attending to the problems that I have described, senior management can revive the brand.

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Do you agree that these are the main issues? Are there are other issues that I have missed? Let me know what you think!

Project Management: Leadership vs. Management Skills

A project manager must be capable of demonstrating two different skills sets. For routine projects, such as the construction of an apartment building, the project manager should focus on managing the project to achieve the triple constraints of cost, schedule and performance goals. Good management also entails the ability to

*Create plans and objectives
*Develop  procedures
*Monitor results against plans
*Take corrective action
*Marshall resources to meet performance requirements

However, there are other circumstances which call for leadership on the part of the project manager. In effect, project managers must often be able to deviate from what was planned, and introduce significant changes.

For example, a video game developer in Chicago was in the process of designing a new game when–in the middle of the project–a competitor totally leapfrogged the company in terms of technology. As a result, the project manager of the video game company had to go back to the sponsor of the project and get approval to come up with a totally revamped game-design which delayed the completion date. In this case, the project manager realized that existing plans had to be scrapped. Leadership involves recognizing and articulating the need to significantly alter the direction of a project, and then aligning the team to that direction.

If a project is well defined and no surprises are encountered, then the project manager can focus on managing the project. When there is great uncertainty that calls for a change in direction, the project manager must demonstrate leadership skills.