Sergey Brin, a Google founder who immigrated from the Soviet Union when he was 6, seemed to take that suggestion literally, attending an impromptu protest on Saturday evening at San Francisco International Airport. When some of the demonstrators realized that the 10th-richest man in America was with them, they asked for selfies. He good-naturedly obliged.
Sergey Brin, a Google founder who immigrated from the Soviet Union when he was 6, seemed to take that suggestion literally, attending an impromptu protest on Saturday evening at San Francisco International Airport. When some of the demonstrators realized that the 10th-richest man in America was with them, they asked for selfies. He good-naturedly obliged.
.. The tech companies’ reaction was more forceful than that of other industries. Just about everyone in Silicon Valley came from somewhere else or is a son or daughter of someone who did or is married to someone who did.
.. That list starts with the most famous Silicon Valley citizen of all: Steve Jobs, the Apple co-founder, whose biological father immigrated from Syria in 1954.
.. Mark Zuckerberg, Facebook’s chief executive, said that his great-grandparents had come from Germany, Austria and Poland and that the parents of his wife, Priscilla Chan, were refugees from China and Vietnam.
.. Stephen K. Bannon, his chief strategist, said in 2015 that “two-thirds or three-quarters of the C.E.O.s in Silicon Valley are from South Asia or from Asia,” an incorrect statement that many in Silicon Valley perceived as racist.
.. The larger tech companies tended to be less forceful in their reactions to the executive order than the smaller ones. Google said it was “concerned.” Apple said, “It is not a policy we support.” Amazon said only that it was committed to diversity. Oracle did not respond to requests for comment.
Why Tim Cook is Steve Ballmer and Why He Still Has His Job at Apple
After running Microsoft for 25 years, Bill Gates handed the reins of CEO to Steve Ballmer in January 2000. Ballmer went on to run Microsoft for the next 14 years. If you think the job of a CEO is to increase sales, then Ballmer did a spectacular job. He tripled Microsoft’s sales to $78 billion and profits more than doubled from $9 billion to $22 billion. The launch of the Xbox and Kinect, and the acquisitions of Skype and Yammer happened on his shift. If the Microsoft board was managing for quarter to quarter or even year to year revenue growth, Ballmer was as good as it gets as a CEO. But if the purpose of the company is long-term survival, then one could make a much better argument that he was a failure as a CEO as he optimized short-term gains by squandering long-term opportunities.
How to Miss the Boat – Five Times
Despite Microsoft’s remarkable financial performance, as Microsoft CEO Ballmer failed to understand and execute on the five most important technology trends of the 21stcentury:
- in search – losing to Google;
- in smartphones – losing to Apple;
- in mobile operating systems – losing to Google/Apple;
- in media – losing to Apple/Netflix;
- and in the cloud – losing to Amazon.
Microsoft left the 20th century owning over 95% of the operating systems that ran on computers (almost all on desktops). Fifteen years and 2 billion smartphones shipped in the 21st century and Microsoft’s mobile OS share is 1%. These misses weren’t in some tangential markets – missing search, mobile and the cloud were directly where Microsoft users were heading.
.. Execution and Organization of Core Businesses
It wasn’t that Microsoft didn’t have smart engineers working on search, media, mobile and cloud. They had lots of these projects. The problem was that Ballmer organized the company around execution of its current strengths – Windows and Office businesses. Projects not directly related to those activities never got serious management attention and/or resources.For Microsoft to have tackled the areas they missed – cloud, music, mobile, apps – would have required an organizational transformation to a services company. Services (Cloud, ads, music) have a very different business model. They are hard to do in a company that excels at products.
Ballmer and Microsoft failed because the CEO was a world-class executor (a Harvard grad and world-class salesman) of an existing business model trying to manage in a world of increasing change and disruption. Microsoft executed its 20th-century business model extremely well, but it missed the new and more important ones. The result? Great short-term gains but long-term prospects for Microsoft are far less compelling.
.. Visionary CEOs are product and business model centric and extremely customer focused.
The best are agile and know how to pivot – make a substantive change to the business model while or before their market has shifted. The very best of them shape markets – they know how to create new markets by seeing opportunities before anyone else.
.. Between 2001 to 2008, Jobs reinvented the company three times. Each transformation – from a new computer distribution channel – Apple Stores to disrupting the music business with iPod and iTunes in 2001; to the iPhone in 2007; and the App store in 2008 – drove revenues and profits to new heights.
.. They know who their customers are because they spend time talking to them. They use strategy committees and the exec staff for advice, but none of these CEOs pivot by committee.
.. One of the strengths of successful visionary and charismatic CEOs is that they build an executive staff of world-class operating executives (and they unconsciously force out any world-class innovators from their direct reports). The problem is in a company driven by a visionary CEO, there is only one visionary. This type of CEO surrounds himself with extremely competent executors, but not disruptive innovators
.. When visionary founders depart (death, firing, etc.), the operating executives who reported to them believe it’s their turn to run the company (often with the blessing of the ex CEO). At Microsoft, Bill Gates anointed Steve Ballmer, and at Apple Steve Jobs made it clear that Tim Cook was to be his successor.
Once in charge, one of the first things these operations/execution CEOs do is to get rid of the chaos and turbulence in the organization. Execution CEOs value stability, process and repeatable execution. On one hand that’s great for predictability, but it often starts a creative death spiral – creative people start to leave, and other executors (without the innovation talent of the old leader) are put into more senior roles – hiring more process people, which in turn forces out the remaining creative talent
.. As process oriented as the new CEOs are, you get the sense that one of the things they don’t love and aren’t driving are the products (go look at the Apple Watch announcements and see who demos the product).
.. The problem is that a supply chain CEO who lacks a passion for products and has yet to articulate a personal vision of where to Apple will go is ill equipped to make the right organizational, business model and product bets to bring those to market.
.. The dilemma facing the boards at Microsoft, Apple or any board of directors on the departure of an innovative CEO is strategic: Do we still want to be a innovative, risk taking company? Or should we now focus on execution of our core business, reduce our risky bets and maximize shareholder return.
Tactically, that question results in asking: Do you search for another innovator from outside, promote one of the executors or go deeper down the organization to find an innovator?
.. Steve Jobs and Bill Gates (and 20th century’s other creative icon -Walt Disney) shared the same blind spot: They suggested execution executives as their successor
.. if the board decides that the company needs another innovator at the helm, you can almost guarantee that the best executor – the number 2 and/or 3 vice president in the company – will leave, feeling that they deserved the job. Now the board is faced with not only having lost its CEO, but potentially the best of the executive staff.
.. The irony is that in the 21st century, the tighter you hold on to your current product/markets, the likelier you will be disrupted
.. Increasingly, a hands-on product/customer, and business model-centric CEO with an entrepreneurial vision of the future may be the difference between market dominance and Chapter 11.
Summary:
- Innovation CEOs are almost always replaced by one of their execution VPs
- If they have inherited a powerful business model this often results in gains in revenue and profits that can continue for years
- However, as soon the market, business model, technology shifts, these execution CEOs are ill-equipped to deal with the change – the result is a company obsoleted by more agile innovators and left to live off momentum in its twilight years
Worst of the Trumps
Or perhaps with the fact that comparing Syrians to Skittles carries echoes of the Nazi propagandist Julius Streicher comparing Jews to mushrooms in a popular children’s book that posited the ticklish dilemma of how to distinguish poisonous toadstools from edible fungus; and has a mother saying to her son Franz:
“Yes, my child! Just as a single poisonous mushroom can kill a whole family, so a solitary Jew can destroy a whole village, a whole city, even an entire Volk.”
.. The co-founder of Google, co-founder of Tesla, and founder of eBay were all immigrants. Steve Jobs’ biological father was a Syrian immigrant. In fact, earlier this year, the National Foundation for American Policy found that 51 percent of the country’s start-up companies valued at over $1 billion had at least one immigrant founder. A study by the Partnership for a New American Economy, a coalition of governors and business leaders, found that in 2013 more than 40 percent of Fortune 500 companies, including seven of the world’s 10 most valuable brands, were started by immigrants or their children.
.. Trump’s grandfather, Friedrich Trump, was a German immigrant. He arrived in the United States in October 1885. For decades, the family lied: They said he hailed from Sweden. In his book, “The Art of the Deal,” Trump says his grandfather “came here from Sweden as a child.” The family historian, John Walter, explained that Trump’s father, Fred, “had a lot of Jewish tenants and it wasn’t a good thing to be German in those days.”
Steve Jobs: “Technology Alone is not Enough”
“It is in Apple’s DNA that technology alone is not enough—it’s technology married with liberal arts, married with the humanities, that yields us the results that make our heart sing.”
I learned about serif and sans-serif typefaces, about varying the amount of space between different letter combinations, about what makes great typography great. It was beautiful, historical, artistically subtle in a way that science can’t capture, and I found it fascinating.
None of this had even a hope of practical application in my life. But ten years later, when we were designing the first Macintosh computer, it all came back to me. And we designed it all into the Mac. It was the first computer with beautiful typography. If I had never dropped in on that single course in college, the Mac would never have had multiple typefaces or proportionally spaced fonts.
.. it wasn’t enough to simply create a space: he needed to make people go there. As he saw it, the main challenge for Pixar was getting its different cultures to work together, forcing the computer geeks and cartoonists to collaborate. (John Lasseter, the chief creative officer at Pixar, describes the equation this way: “Technology inspires art, and art challenges the technology.”) In typical fashion, Jobs saw this as a design problem. He began with the mailboxes, which he shifted to the atrium. Then he moved the meeting rooms to the center of the building, followed by the cafeteria and the coffee bar and the gift shop. But that still wasn’t enough; Jobs insisted that the architects locate the only set of bathrooms in the atrium. (He was later forced to compromise on this detail.)