Transformational Leadership at Apple: Steve Jobs’ and Tim Cook’s Strategic Changes

Small Change

Situation

Organizations often resort to transformational change when trying to rethink their place in the marketplace. The adoption of innovative business models may potentially trigger a period of transformation inside an organization (Hagemann, 2022; Perkin & Abraham, 2021). In 1997, Steve Jobs reduced the production of computers from 350 to at least 10 (Podolny & Hansen, 2020). The narrowing down of the production was meant to increase redesign and innovation.

Sequences

With the iPhone, for instance, Jobs combined his interests in technology, typography, and design. Apple was the first computer business to emphasize design and aesthetics, which became the company’s competitive advantage. The Apple USP followed a sequence of such events as the design of the iPhone UX from scratch, Apple iteration as the second step, and followed by the unboxing of the iPhone prototypes.

Value

There are several benefits to reducing manufacturing from over 350 commodities to only 10. Apple’s new CEO felt that many of these products were not even necessary anymore, were obsolete, and were too expensive to continue making (Gilmanov, 2020). In Jobs’s opinion, Apple would be far more successful if it focused on a few projects rather than hundreds. This led to a significant reduction in Apple’s production.

Tools Have Been Used

Steve Jobs’ leadership style is characterized as transformative because he prioritized workers’ well-being and shared vision for the company’s future success above his own personal gain. He felt that creating goods that were both user-friendly and inventive would be the key to attracting consumers; hence, Jobs went out and assembled a skilled team to do just that. In this case, the talented workers became his weapon of transformation.

Why Things Happened

Jobs made changes to the company because more people wanted new gadgets, competitors were putting out mobile devices quickly, and sales were going down every year before 1997. In order to accelerate the company’s profit and development, Jobs deemed it necessary to alter the technical incompatibilities of the firm when he became the CEO. In this case, he halted the over-production of general laptops to produce specific models.

Resistance

Lack of technical knowledge and the research sector in the corporation were two of the main obstacles that Jobs faced throughout the transformation at Apple Inc. Moreover, the company’s workers were used to the conventional arrangement and not prepared to obey Jobs’ directions in the early stages of his leadership. When Jobs halted Macintosh manufacturing the staff members remained silent and were resistant to the new changes.

Evaluation

Using Kotter’s eight-step change process, scientists assess how successful Steve Jobs’ change strategy was. For example, Mahadevan (2022) focused on the idea that success with a change is more likely if the process of making the change adheres to Kotter’s transition phases. As a result, this analysis asserts that Jobs’ shift was effective if it adhered to Kotter’s change model as indicated in his effort of revolutionizing Apple’s products.

Medium Change

Situation

Corporate culture was the primary tool via which Steve Jobs effected change at Apple Inc. All the equipment designers, web artists, software developers, electrical, technical, and manufacturing designers were brought together on a single platform that Steve Jobs created so that they could work together to create new and exciting digital goods and services. Since he was close to the action, he could easily address employee’s concerns.

Sequences

A strong coalition was developed to advise the company’s corporate structure and its workers on how to best use the company’s technological resources. Amabile and Kramer’s (2007) Inner work-life theory proposes that the interplay between an individual’s perceptions and motivations are key factors in shaping work performance. Using the theory, Steve Jobs motivated his employees with incentives (Kim, 2020). Based on the theory, when people feel motivated, greater results are envisioned.

Value

He learned from his discussion with Ron Johnson that working in tandem is advantageous. As such, he began to regularly take his staff on offsite retreats. This is in line with the research by Zaman et al. (2020), who noted that process and product innovation effectiveness requires the capacity to harness ingenuity. To this, Jobs fostered a collaborative, cooperative culture by surrounding himself with individuals who could push his ideas forward.

Tools Have Been Used

Jobs encouraged employee participation and teamwork to advance the company. As an example, he assembled a formidable coalition to steer the company’s organizational structure and its workforce in terms of technology (Gilmanov, 2020). He also used several press releases to convey his messages of change and leadership demands within the firm. Moreover, yearly strategy reports were two of the primary channels via which he disseminated this vision.

Why Things Happened

Steve Jobs was incapable of communicating at that level. Instead, he publicly ridiculed and even dismissed some employees for failing to see his vision. Others left Apple because they disagreed with Steve Jobs’ management style. Allison Johnson, who was the vice president of worldwide advertising and public relations at Apple, also resigned. Therefore, a shift was necessary concerning the cooperative nature of businesses.

Resistance

His lack of faith in his staff was on full display, and consequently, he lost the respect of his colleagues. Tasks and duties could not be delegated under Steve Jobs’ leadership. When his company grew, he had to delegate specific tasks, but only under strict conditions described under the business framework (Abbas et al., 2021). His hesitation to trust others stemmed from his desire to play a pivotal role in all tasks.

Evaluation

Jobs was influential in building a team-oriented work environment. Examples include Jobs’ ability to instill a feeling of urgency by making the organization aware of the critical nature of a necessary shift in strategy (Joyner, 2019). Via the company’s yearly strategy report and news releases, he shared this goal with the customers and the company executives (Kassim, 2020). He also organized a formidable group capable of directing the company’s organizational structure.

Big Change

Situation

Cook was promoted to CEO of Apple Inc. when Jobs stepped down and became chairman of the board. Tim Cook made several risky moves to improve Apple’s corporate culture, including replacing the man in charge of iOS development and mobile systems (Craig Federighi) with Jonathan Ive (Kassim, 2020). As a result of Cook’s choice, however, iOS 7 was built with the help of professionals from fashion houses.

Sequences

Executive positions were shuffled around at Cook’s firm on October 29, 2012. With the disastrous introduction of Apple Maps, Scott Forstall left as iOS SVP to become Cook’s adviser. Four other Apple executives took over some of Forstall’s responsibilities. Here, Cook used Taylorism, as outlined by Frederick Winslow Taylor (Taylor, 1911). The theory proposes that the most effective leaders enhance productivity (Taylor, 1911). As such, the division was divided into four to simplify the labor work.

Value

During Cook’s time as CEO, the firm was able to introduce a number of successful products. These were based on his leadership style, incorporating the company’s culture and employees’ capacity to draw on a wide range of expertise. Apple grew to be the most valuable brand in the world, valued at $170.3 billion in 2015 (Kassim, 2020). The release of innovations like Apple Pay attests to the success of his leadership.

Tools Have Been Used

Cook fired many employees based on their performance reviews yearly and every three months. In this case, Cook utilized the fact that sales and revenues rose slower than anticipated to eliminate Forstall. Cook implemented reforms through communicating with employees via email and phone calls. He utilized his staff to effect change inside the company, replacing some of Steve Jobs’ executives.

Why Things Happened

When Apple replaced Steve Jobs with Tim Cook, it was mostly for health reasons. Due to his pancreatic cancer, Steve needed to take some time off from his management position. After the third quarter of the fiscal year, when sales and profit growth were less than projected, the new CEO thought management changes were required to implement Tim Cook’s mandatory improvements to the company culture.

Resistance

Tim Cook encountered a diverse range of opposition, unlike Steve Jobs. Such factors include the significance of suppliers’ opinions and business management culture (Perkin & Abraham, 2021). The executives who were Jobs’ right hands were unwilling to back Cook’s viewpoints (Weinberger, 2019). Expectancy theory may also explain the managers’ lack of performance (Perkin & Abraham, 2021). The theory postulates that people will put more effort into something they care about.

Evaluation

Cook prioritized developing new technologies and establishing ambitious financial and performance goals. To implement the Goal-setting theory, a leader must establish ambitious and measurable targets with the support of employee input and prior knowledge of performance (Burke, 2018; Locke & Latham, 2019). Having worked with the firm, he was aware of the potential outcomes of his leadership as described by the theory.

References

Abbas, A., Ekowati, D., & Suhariadi, F. (2021). Individual psychological distance: A leadership task to assess and cope with invisible change. Journal of Management Development, 40(3), 168-189. Web.

Amabile, T. M., & Kramer, S. J. (2007). Inner work life:Understanding the Subtext of business performance. Harvard business review, 85(5), 72-83. Web.

Burke, W. W., (2018). Organization change: Theory and practice (5th ed.). Sage.

Gilmanov, A. (2020). Why the Steve jobs leadership style won’t work for you. TMS. Web.

Hagemann, M. (2022). Does current popular leadership literature show a preference for transformational leadership? Managing Global Transitions, 20(4), 1-17. Web.

Joyner, S. (2019). Steve Jobs and the collaborative framework. Archinect. Web.

Kassim, N. (2020). Steve Jobs’s revolutionary leadership style and what we can learn from it. Idea Drop. Web.

Kim, H. (2020). Comparison of strategic leadership: Steve Jobs and Tim Cook. Business and Management Studies, 6(3), 17-25. Web.

Locke, E. A., & Latham, G. P. (2019). The development of goal setting theory: A half century retrospective. Motivation Science, 5(2), 93-105. Web.

Mahadevan, A. (2022). Building an adaptive culture where collaborative teaching teams leverage data to improve student achievement and wellbeing. The Organizational Improvement Plan at Western University, 308 (1), 1-144. Web.

Perkin, N., & Abraham, P. (2021). Building the agile business through digital transformation (2rd ed.). Kogan Page.

Podolny, J. M., & Hansen, M. T. (2020). How Apple is organized for innovation. Harvard Business Review. Web.

Taylor, F. W. (1911). The principles of scientific. Harper and Brothers Publishers.

Weinberger, M. A. T. T. (2019). Inside Tim Cook’s emotional journey to becoming CEO of Apple, replacing his friend and mentor Steve Jobs (AAPL). Business Insider. Web.

Zaman, U., Nawaz, S., & Nadeem, R. D. (2020). Navigating innovation success through projects. Role of CEO transformational leadership, project management best practices, and project management technology quotient. Journal of Open Innovation: Technology, Market, and Complexity, 6(4), 168. Web.

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StudyCorgi. "Transformational Leadership at Apple: Steve Jobs’ and Tim Cook’s Strategic Changes." October 25, 2024. https://studycorgi.com/transformational-leadership-at-apple-steve-jobs-and-tim-cooks-strategic-changes/.

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StudyCorgi. 2024. "Transformational Leadership at Apple: Steve Jobs’ and Tim Cook’s Strategic Changes." October 25, 2024. https://studycorgi.com/transformational-leadership-at-apple-steve-jobs-and-tim-cooks-strategic-changes/.

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