Three Key Lessons from Apple (without Steve Jobs)

By now, some of you would have heard me talked about how I've come one full cycle with regards to computers.

You see, I started with a Mac and have recently only bought a Mac. What's funny is that, at that point in time when I bought it (more like my Dad got it for me), Jobs was in some kind of trouble with the Board. I recalled my friend's (who introduced me to the Mac) mom commenting that would Apple go downhill as Jobs was no longer the boss. Our replies were, nay, how can a company be so dependent on just one person.

Boy, how wrong we were. Of course since Jobs return in 97, Apple has made the quantum leap to a phenomenal company with super-normal profits (and not to mention the securities prices).

Now in 2009, when my purchase of the MacBook Pro, Jobs is on medical leave of absence. Am I in trouble again? Well, I must say in this respect I am indeed a laggard as there were so many considerations; from software to accessories to learning how to use the machine.

I finally took the plunge anyway as the ability to equip myself with the necessary resources to boost my productivity and also to enhance my ability to produce aesthetically desirable materials (clearly the PCs just doesn't do it) was just too huge to ignore.

Then I got this e-newsletter from Bnet.com which carries the article on "Life at Apple after Steve Jobs". (You may read it here - http://is.gd/FVPz)

The article said that Jobs is a one-of-a-kind business icon and history shows that without Jobs, the Apple is likely to flounder. What really caught my attention was the three key lessons. Let's look at each lesson in turn.

(1) Just like people, all companies have lifecycles. This should come as no surprise since people run them.

I agree with the first point, as in Economics we studied economic cycles, this is no stranger to me. In fact, all companies go through the four phases. If the business survives the "survival" phase, then it will go on to the "growth" phase, before it comes to the third phase (which could be different for different companies - see my other discussion on Strategic Inflection Point) and finally the fourth phase.

This third phase could be "dominance" as in the company dominates the industry, or it could be the "maintenance" phase where the business simply maintains (and defends) its existing market share (which could be due to a resource issue), or it could experience a "phenomenal" era, where the company grows at an exponential rate through new markets and/or products.

Then for sure, it will come to the fourth phase. This finally phase could be demise for some or it could be where companies do great things, as in Good to Great (Jim Collins). Some companies do not even go through Phase 3 (or just briefly) before they go into Phase 4 and fade out. Some do well in Phase 3 but lost direction and fizzle out. There are just few that go from good to great in Phase 4.

I think part of how to move from good to great can be found in the other two lessons:

(2) When it comes to evaluating companies and businesses, people tend to have very short memories - here it is so true for companies or businesses, especially in the service sector. And that is why it is critical that companies remember to, ever so often, dominate the mind-share of consumers. Then again decide early if you want the premium or mass market for the strategies greatly differ.

My wife and I eat out a lot and recently we visited a higher-end restaurant and one of the main thing I noticed was that the servers acknowledge most of the customers by name. It was highly personal and though we are not one of the regulars; we were well attended to nonetheless. Also, with the personalized treatment, it effectively engages people at the emotional level (people like it when being treated in a focused manner). This is even more critical for service industry as barriers can be low when it comes to product/service innovation, which leads us to the next lesson.

(3) Product and brand momentum counts for something, but when a technology company stops innovating, it's over. I would like to add that it applies to service companies as well.

In our firm, we seek to innovate in the way we serve, in our product offerings, in our marketing. Reason is because I believe innovation is the only way to not just survive (phase 1), grow (phase 2), dominate (phase 3), and finally hopefully do great things as an organization that people want to be a part of and customers want to be associated with us.

Your friend,
Melvyn
(Sent from my Blackberry Bold)