How Apple Got Everything Right By Doing Everything Wrong
Apple's successes in the years since Jobs' return — iMac, iPod, iPhone — suggest an alternate vision to the worker-is-always-right school of management. In Cupertino, innovation doesn't come from coddling employees and collecting whatever froth rises to the surface; it is the product of an intense, hard-fought process, where people's feelings are irrelevant. Some management theorists are coming around to Apple's way of thinking. "A certain type of forcefulness and perseverance is sometimes helpful when tackling large, intractable problems," says Roderick Kramer, a social psychologist at Stanford who wrote an appreciation of "great intimidators" — including Jobs — for the February 2006 Harvard Business Review.
Likewise, Robert Sutton's 2007 book, The No Asshole Rule, spoke out against workplace tyrants but made an exception for Jobs: "He inspires astounding effort and creativity from his people," Sutton wrote. A Silicon Valley insider once told Sutton that he had seen Jobs demean many people and make some of them cry. But, the insider added, "He was almost always right."
"Steve proves that it's OK to be an asshole," says Guy Kawasaki, Apple's former chief evangelist. "I can't relate to the way he does things, but it's not his problem. It's mine. He just has a different OS."
Nicholas Ciarelli created Think Secret — a Web site devoted to exposing Apple's covert product plans — when he was 13 years old, a seventh grader at Cazenovia Junior-Senior High School in central New York. He stuck with it for 10 years, publishing some legitimate scoops (he predicted the introduction of a new titanium PowerBook, the iPod shuffle, and the Mac mini) and some embarrassing misfires (he reported that the iPod mini would sell for $100; it actually went for $249) for a growing audience of Apple enthusiasts. When he left for Harvard, Ciarelli kept the site up and continued to pull in ad revenue. At heart, though, Think Secret wasn't a financial enterprise but a personal obsession. "I was a huge enthusiast," Ciarelli says. "One of my birthday cakes had an Apple logo on it."
Most companies would pay millions of dollars for that kind of attention — an army of fans so eager to buy your stuff that they can't wait for official announcements to learn about the newest products. But not Apple. Over the course of his run, Ciarelli received dozens of cease-and-desist letters from the object of his affection, charging him with everything from copyright infringement to disclosing trade secrets. In January 2005, Apple filed a lawsuit against Ciarelli, accusing him of illegally soliciting trade secrets from its employees. Two years later, in December 2007, Ciarelli settled with Apple, shutting down his site two months later. (He and Apple agreed to keep the settlement terms confidential.)
Apple's secrecy may not seem out of place in Silicon Valley, land of the nondisclosure agreement, where algorithms are protected with the same zeal as missile launch codes. But in recent years, the tech industry has come to embrace candor. Microsoft — once the epitome of the faceless megalith — has softened its public image by encouraging employees to create no-holds-barred blogs, which share details of upcoming projects and even criticize the company. Sun Microsystems CEO Jonathan Schwartz has used his widely read blog to announce layoffs, explain strategy, and defend acquisitions.
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