Sunday, July 15, 2012

The Apple Inc Turnaround 3 Steve Jobs Videos: impressive to see Steve Job's thought process

Here are three videos that show the turnaround at Apple Inc. The first video is before he is CEO, the second video is when he was named iCEO and brought in new board members, and the third video is when they show steady profits and show their strategy "Apple Hierarchy of Skepticism"

1.) Apple's  WWDC 1997 -- Steve Job's taking questions. He shows a lot of maturity and a firm grasp of Apple's problems.  Tells the audience to buy Apple stock when the media writes bad articles on Apple.

2.) Macworld Boston 1997. Steve Jobs comes back as the interim CEO and changes up the board of directors. One of the board of directors talks about turning around Citicorp in the early 1990s and seeing a huge rise in the stock price by focusing on the fundamentals (time 15:50)

3.) Macworld July 1998
Steve Jobs introduces his "Apple Hierarchy of Skepticism" survival, stable business, product strategy, product strategy, applications and growth.  This is the general playbook for any turnaround and it is beautiful to see it.

Quick thoughts on turnarounds. (1) Successful turnarounds have a huge survivor bias.  Obviously the turnarounds that people read about are mostly the ones that survive to keep on producing 10-K files for all us. If Apple died before Steve Jobs or if Microsoft never invested into Apple, maybe Apple wouldn't have survived.   (2) That being said on survivor bias, successful turnarounds generally have managers who are in it because their ego is in it. They aren't looking to get rich and are usually able work without profit or relatively little profit for a good period of time. Being a founder because their ego is involved with the company, but it can't be involved too much because you have to practical to make hard decisions during a turnaround (firing people, cancelling divisions/products)

I hope you enjoyed the videos. 

1 comment:

  1. Great videos and commentary.

    The one with Bill Gates really casts a whole different light on the situation than seemed to be the case in the movie "Pirates of Silicon Valley"