Humanizing Apple
Apple CEO Tim Cook has been under an intense microscope since the passing of co-founder Steve Jobs a year ago, and in pivotal moments he has shown how he differs from his legendary successor.
When Jobs passed away last October, no one knew what direction Apple would go. And reports varied from “the company will be just fine” to “there’s no way Apple can continue its dominance.”
It’s still too soon to tell which path Apple will take in the long haul, but in the short-term it hasn’t missed a beat. The company enjoyed arguably its most successful year, starting with record iPhone 4S sales and capped off by posting its more iPhone 5 orders than ever. The iPhone maker’s string of successes remains largely unchanged, but it hasn’t been completely without challenges over the year.
In 1997, when Jobs took over as CEO for a second time, the media didn’t consider Apple a likable or transparent company. But in just under 15 years, Jobs revolutionized the tech world, and in the process, gained a nearly superpower status. And since his death, casual users haven’t noticed changes — retail stores still follow the same model, products are on the same launch cycle and thousands continue to line up to buy new devices.
Apple still benefits from the heartbeat Jobs gave it, but with Cook at the helm, its soul underwent a bit of a transformation. In short, the new CEO made his influence felt in several key situations throughout the past year.
1. The Foxconn Controversy
After years of concerns surrounding the working conditions and wages in Apple’s factories in China, Cook stepped up in an attempt to end the issue for good. He agreed to voluntary supply chain audits and personally guaranteed his company would do everything in its power to ensure any and all problems would be handled appropriately.
In addition, Cook made a visit to Foxconn’s factories in what many analysts called, “an attempt to polish Apple’s image.” But the decision to visit workers on the front lines was Cook’s alone — and a move Jobs wouldn’t have dared to make.
The visit and promise resulted in efforts to hire tens of thousands of additional workers, putting an end to illegal overtime and implement increased safety precautions and comforts, including workers’ housing. As a result of Cook’s efforts, Apple had done more to aid factory employees since it first received criticism over its labor practices, painting the company in a more sincere light.
But Apple’s commitment carries a steep price if worker protests continue to deepen. Had Cook avoided the issue, or framed it as a national concern, Apple would have continued its supplier-relations course, assailed for not taking up the cause, but also not blamed for moves that backfire. His decision to play a bigger role in factory issues may place him, and the company, squarely in the field of vision for those who advocate for workers’ rights.
For now, the move positions Apple in relatively positive press reports as a responsible corporation, but if events continue to escalate, Apple may long for the days when it — like other tech companies that rely on contract factories — took a less public stance.
2. Focus on the Team
Towards the end of Jobs’ run as CEO of Apple, it was tough to figure out what media and fans were more excited to see — new products or the way Jobs would announce them. Jobs was a showman, and arguably Apple’s best salesman as well. As a result, Jobs became the face of Apple as a company, which offers both benefits and drawbacks. On the one hand, one of the world’s leading innovators was synonymous with one of the largest tech companies — a benefit extended to its brand. But on the other, whatever Jobs said or did, whether it was positive or negative, radically affected people’s view of Apple.
Cook has deferred showman responsibility since taking over as CEO of Apple. Sure, he comes out on stage at keynotes to welcome the media and run down some numbers, but he then delegates the rest of the show to his team. Phil Schiller, Eddy Cue and Scott Forstall are just a few of the employees that have shared the stage with Cook during the release of the iPhone 4S, New iPad and iPhone 5.
His decision to step out of the limelight is no accident: it’s a specific strategy Cook put in place to help redefine the company. Apple isn’t about one man anymore. Steve’s vision is still intact, but the company’s greatness stems from a willingness to follow that vision and take advantage of the talents of the team. At least, that’s the picture Cook is painting.
Many applaud a leader who isn’t afraid to share the spotlight, since it shows a quiet confidence undiminished by sharing a company’s success. But a corporate culture that promotes the group over the individual can run the risk of having difficulty with accountability. Jobs’ legendary tirades cajoled the company to greatness, and everyone knew where the buck stopped. Apple had a face to affix to its many successes and one to turn to when things went awry. Instead, Cook’s magnanimous approach celebrates and rewards those who toil relentlessly to create the perfection the company is known for, but it also may expose them to greater criticism, too.
3. Owning Its Mistakes
Everyone hates to admit when they’re wrong. And it makes little business sense to admit you made a mistake when you’re trying to convince customers they can’t live without your product. That’s why Jobs never admitted flaws, and stubbornly stuck to his guns during the tarnishes in his career… Throughout the years, he had his share of clunkers, like the Lisa, G4 Cube and MobileMe, but he stood behind them — maybe a bit too long.
In the uproar surrounding Apple’s decision to replace Google Maps, Cook showcased a different response to missteps. Customers reported several issues with the app, from poor 3D renderings of cities to missing towns and faulty GPS navigation. But rather than sticking behind its Maps app, Cook wrote an open letter and apologized for the mistake. He even went as far as recommending other apps until Apple worked out the kinks. Maps was truly a train wreck, but a public apology about a product just days after launch would have been unheard of under Jobs.
When a customer e-mailed Jobs about widely-noted reception problems when the 4S was held in a certain way, Jobs replied, “Don’t hold it that way.”
There is much to admire in Jobs’ habit of backing his products to the hilt, and his accomplishments point to the passion and conviction with which he stood behind his work. But there is also something a little too paternal about a CEO who defends a misfire well beyond the point of reason. Cook’s comments indicate he’s navigating a different course in the way Apple handles miscues. Consumers who like to be reassured, even when their common sense tells them otherwise, will find Cook’s frankness a little disconcerting, while others applaud the transparency.
When a company goes out of its way to show transparency, the end goal is trust — and that appears to be what Cook is attempting to forge between Apple and its customers. Millions already trust Apple to make great products as part of Jobs’ legacy, but Cook is aiming to form another type of trust by showing customers Apple truly cares — about the its factory workers and the end experience.
A More Sensitive Apple
Over the past year, Cook has done many things that differ from Jobs, including exploring dividends for stockholders, increasing wages for retail employees, implementing bigger discounts for workers and crafting a program that may bring millions to charities. And these initiatives have something in common — they each help humanize Apple, an attempt to transform the company’s image from a money-hungry tech superpower to a team of individuals sensitive to the needs of consumers and the world around it.
How Cook is trying to lead the company — considered the most valuable in the world — will continue to reflect his own sense of style and values, but what he’s implemented in this first year will also have ripple effects across Silicon Valley, as tech firms watch to see how it all turns out. A more responsive and open Apple will lead the way in issues as vital and diverse as labor conditions and customer service response, as much as with products in the market — but that path is largely uncharted, and a challenge even for the most seasoned CEO.
