Steve Jobs, Apple and the CEO's Dilemma

He knows what he's doing

The images are striking. A line of figures dressed in identical blues and greys, marches through a tunnel, observed everywhere by cameras and televisions featuring the face of Big Brother. Through another tunnel, pursued by armed guards, races a young blonde woman, carrying a massive metal mallet.

We zoom in on an auditorium with a massive screen where Big Brother is declaring the power of authority over individual thought. As his voice rises to a crescendo, our heroine hurls the mallet through the screen, which fades to black.

"On January 24th, Apple Computer will introduce Macintosh. And you'll see why 1984 won't be like ‘1984’."

The “1984” advert catapulted Steve Jobs into the public domain. His determination to marry high technology to high design won him many fans, but his products were frequently too expensive, too far reaching.

At the end of 1985, during one of the computer industry’s frequent downturns, Jobs was ousted from Apple. He went on to found NeXT Computers, as well as Pixar. NeXT pushed Jobs vision of beautifully designed and integrated computer hardware and software. Over the ten years he owned it, the company sold barely 50,000 machines. Pixar, too, would struggle, until the release of Toy Story in 1995. Apple, too, was floundering.

Michael Dell, founder of Dell computers, declared of Apple’s problems: "I'd shut it down and give the money back to the shareholders."

Jobs’ products were too expensive and too radical. Yet he kept at it. His vision, and faith in that vision, were so strong that he just kept going.

Apple decided to purchase NeXT at the end of 1996 and brought Jobs back as CEO. Three things happened: the Internet, highly graphical websites, and a telecommunications explosion.

The hits came fast, the iMac, the iPod, and the iPhone. The iPod sold over 100 million units in its first six years. The iPhone sold 270,000 units on the first day it was available.

There are few companies where you can say that every product, as well as the structure of the company itself, carries the distinctive shape of one person. Even in an age of celebrity CEOs, Steve Jobs stands apart. Where other CEOs talk about management, talent, profits or expansion, Jobs only talks about his vision and his products.

And, in a world where so many people protest about the power of big business, there really only seems to be one company whose products cause an almost religious fervour amongst its followers.

I’ve never owned an Apple product, and I don’t have any plans to own one. I enjoy playing in the guts of the devices I own. I can’t wait to take them apart and see how they work. But there is something profoundly inspiring about the way Jobs has chosen to live his life and explore his passion.

His business strategy is a consummate lesson to leaders around the world: he decides what he wants to produce, and then he chooses his customers. He does not waiver in that choice and does not allow pressure from outside interests to sway him into selling products that do not meet his standards. There will be no cheap iPhone or iPod for the masses, let other companies do that.

Jobs describes his business approach: “There's an old Wayne Gretzky quote that I love. 'I skate to where the puck is going to be, not where it has been.' And we've always tried to do that at Apple. Since the very, very beginning. And we always will.”

The sadness is that such conviction has come at a price. His health has become a concern, and Jobs has taken a six-month leave of absence. However, now – as the credit crisis deepens – Apple’s convictions will tested against falling consumer confidence and lower sales.

Apple, more than ever, will miss the clear vision of Steve Jobs.