The world of Apple is not an easy one to understand by just
buying a product and using it. I think most techonogly
writers would agree that Apple makes great if somewhat expensive
products. Most Apple users really care more about the
experience of being an Apple user than they care about price.
They are willing to pay a premium to have, hold, admire, and use
whatever product that Apple produces that meets one of their needs. The needs do not have
to be strictly computing needs. You might need to be a member
of the group of people who are using the latest, thinnest,
lightest, and greatest technology like the iPad. You could
probably do most of what you do with the iPad with some other
device, but Apple has come up with a good idea which makes it easy
to sell yourself on the product.
But is it possible that Apple, a company which delivers great
products, has had to lose its soul in the process of delivering
those products?
I was fortunate to start with Apple the fall that the Macintosh
was introduced. I had been using and selling Apple products
in reseller world prior to that starting in mid 1982. Going to work
for Apple in those days was like nothing else I had ever
experienced. It was a roller coaster with just about every emotion
that you can imagine. It was a place where very bright people
worked incredibly hard not because of the money, but because of
what the company was doing.
So the first question that comes to mind, “What do you mean it
wasn’t because of money?” Well to be very honest, I not only
took a pay cut to go to work for Apple, but I also had to resign my
previous job before they would even interview me. My first
job at Apple paid about $36,000 a year, and there was no boat load
of stock options. Of course I was taking a long term view,
and I believed that Apple would become a great company. In
1984 that was no certainty, and in the mid-nineties when many of us
worked to keep Apple afloat, the question was more about survival
than greatness.
Still during those early years at Apple, in spite of the
challenge, you did feel like you were part of something very
important that was changing many people’s lives. I got to see
people take computers and do things with them that they never
imagined that they could do. For much of my Apple career, I
was working in higher education, and I got to be part of the very
unique partnership that developed between many of the leading
higher education institutions and Apple. It was a
relationship that was a win-win for both sides. Together
higher education and Apple were able to take computing for the rest
of us farther than either could have done by themselves. Like
much of Apple’s history, there were intiatives started by Apple
that changed computing, but Apple never figured out how to collect
revenue from them, and perhaps that was part of the problem that
led to changes at Apple.
There came a time when Apple probably could not afford to be a
partner. There was also a part of Apple that was dreaming up
far too many ideas that never made it to market or if they did,
ended up only confusing the market.
When Steve came back, Apple focused on fewer products, dropped
technologies like the Newton, printers, scanners, and
cameras. The operating system was modernized, and at the top
level of Apple, the executives started caring more about driving
stock prices than almost anything.
All sorts of things happened along the way. Apple dropped
customer advisory boards except for perhaps the higher education
one which I suspect that they have only for window dressing if it
is even still there. While Apple was still happy to collect
revenue and high margins from the publishing world, there was
little effort to really invest in that part of the market.
Mostly that was because Apple’s top level management had figured
out with the help of the iPod that there was far more money to be
made selling inexpensive consumer items than there was in trying to
dislodge Microsoft from the enterprise or even from most
desktops.
Below this 30,000 ft view of what happened at Apple, much more
happened inside the company. Up front I want to say that what
I am about discuss could be a larger trend in American business,
but my guess is that there are some unique to Apple characteristics
that might not be present in all corporations. I can only describe
what I saw when I was a part of Apple.
There is a really strange thing that happens to long term Apple
employees. Whether you are a manager or just an individual
contributor, you develop a hardened shell. It has to do with
watching valued colleagues leave the company.
A lot of people end up leaving Apple without choosing to do
so. In nineties, I laid off very competent, talented people
just because the company had decided we no longer needed an office
in a particular area. Even those decisions were often weird. A
position would be open just prior to a layoff, and we then we would
gear up for a layoff. It was an easier thing to kill an
office with one person and one open headcount than it was to kill
an office with two people. With that strange lack of business
logic, we eventually ended up with no Apple business coverage in
the state of Pennsylvania which was one of our top states in
revenue.
It was very hard to hire people even in positions that were
desperately needed. I remember saving for years a job requisition
that had over 20 signatures approving it, but unfortunately it did
not get the last two required one before the next layoff, so the
position got eliminated.
Apple also decided that the best way to create top producing
teams was to make some people the bottom third each year.
Ideally you got rid of the bottom third each year, and hired new
better people. The problem with the theory which I think is popular
in many companies is that people are not widgets. There is
institutional memory in long term employees.
Many of the enterprise sales people that I had in my
organization were career sales people who had been selling longer
than Apple existed, they excelled at building relationships which
is what you have to do if you are going to sell essentially
consumer products to the enterprise. Not only were they
professionals at the peak of their sales careers, but they were
also passionate about Apple technology. To a person they had
all had an Apple moment when they figured out that Apple products
could change their lives and the lives of others who used the
product. They were proud to be part of the company, and often
I would have to kick them out of the office at 8 PM and tell them
to go home to their families.
At the same time people were watching very qualified colleagues
disappear, Apple was bringing in a new level of sales
management. This was being done because Apple at the highest
level believed that number one, Apple products sell themselves and
number two, any product which doesn’t sell is having that problem
because the Apple sales force is useless.
One of the best examples of this was Apple’s now forgotten
Xserve. As always the product was developed in typical Apple
secrecy. It was thrown over the wall in Cupertino, and when
boats loads didn’t sell, it was determined that the sales force had
to go to boot camp on the product to learn how to sell it.
The funny thing was that most of the training ended up coming from
the sales force. So in the strange world of Apple you can
have a supposedly incompetent sales force coming up with training
for itself. The reality was that Apple had an amazing
sales force, but it had thrown the Xserve over the wall without
understanding was needed to be successful in the server market. The
sales people knew what the market wanted because they talked to
customers. They also had customers who loved Apple’s products
enough to try to figure out how to use them no matter what the
limitations. And it turns out that by the time Apple figured out
what the market wanted on servers, the market passed Apple by and
the Xserve died.
Another great example was when the vp of Apple’s business
division decided that the way for Apple to penetrate the business
market was to sell kiosks built around the iMac. A huge amount of
effort was put into this sales initiative. A lot of very
talented sales people took these orders and marched off to their
own doom. They did absolutely what was asked of them and had
more success than the crazy initiative merited.
When the initiative inevitably failed, the vp was shuffled off
into a new position and about a third of the sales people were let
go. I was fortunate Apple had already laid off almost all of
the federal team, and I was off trying to take on the world’s
largest enterprise customer with two sales people and one system
engineer, myself and my administrative assistant. The funny
thing is that we became wildly successful, but that is another
story.
The most interesting thing about the new sales managers brought
in by Apple was that most of them did not have a clue about Apple
products. It turns out that selling Apple products without
knowing anything about them is not an easy chore, but it was at
least amusing watching these “sales experts” bang their heads again
brick-walls both at Apple corporate and at the customer.
At the same time Apple was changing sales management, they were
also rolling out retail stores which turned out to be competition
for existing Apple sales people. For three years my federal
team was the one of the few teams who cooperated, supported, and
drove sales through the Apple stores. We were compensated on
gear that federal customers bought at those stores. We had
worked the pricing so that federal customers could get the same
online federal pricing at the store. We made it so the
customer could chose how to buy based on their preference not
ours.
Apple also brought in some additional sales folks to shake up
the sales force. Some were from Oracle. If you have been around the
technology business very long either on the customer or the sales
side, I really don’t have to explain the reputation of the Oracle
sales force. These folks came to Apple talking widgets and
pipelines which ended with Apple sales people spending more time
tracking their sales than actually making the sales.
About this time Apple stopped giving stock options to most lower
level sales people. Stock options which in theory are the
retirement plan at technology companies were never distributed in
serious numbers below the level of vice president at Apple. I
should also mention that many Apple employees including, my best
former boss, went on to very successful careers at other
technologies and ended up making far more money there than they did
at Apple.
So if you put all this in the backdrop of company which doesn’t
trust its field employees to the point of asking them to leave a
customer non-disclosure, you get an environment where it is
possible to make great products and lose your soul.
I became numb to watching other employees get fired. As a
manager I had to either fire people that I did not want to fire or
put extreme pressure on people until they left. Yes, there
were some people who needed to go, but those were the easy
one. You could have a conversation with them and get them to
agree that they were in a job where they didn’t have all the skills
they needed to be successful. Most appreciated the experience of
having worked at Apple and knew they were not a fit. The
challenges were the people who were good, talented folks and still
had to go. Maybe they didn’t make their number because of
budget cuts in the agency they called on, or more likely we got the
quota wrong because Apple’s laughable IT system could not tell us
what federal customers bought.
With a never ending stream of good people leaving, you end up
building this shell around yourself which lets you watch good
people be forced out of the company for reasons which would be
laughed at by normal people. You try not to feel anything but
relief that it is not you that has been shown the door.
With many new managers coming in, they often brought their
buddies, no matter how qualified or un-qualified they might have
been. The running joke at one time was that the best way to
get a raise from Apple was to quit, go to work for Oracle, get
fired there, and then wait for Apple to rehire you at more than you
were making, plus a huge stock options package.
The final nail in the coffin was perhaps the strange Apple
theory that the best way to get a strong Apple sales force was to
have the Apple sales force compete against itself. So in the
world of Apple which the last time I checked has less than
10% of the worldwide desktop and laptop market and which has
one of the smallest sales forces on earth, Apple’s own sales force
should compete against itself for the same customers?
What often happened is that competing sales teams would bring
proposals to finance for lower prices in order to win a
customer. So Apple, a company which really has never tried to
compete on price, ends up competing on price in order for internal
sales people to be paid commissions. It makes as little sense
as it sounds.
When you put all of these changes together you have gone from a
company which even at the lowest employee level felt like they were
changing lives of others to a company where field sales people keep
their heads low, make no waves, and take pleasure in not being the
person being fired.
As I have said many times, mine is a sales perspective, but as a
director I did interact with product directors and others, and I
think you could find some interesting similarities there, but that
was not my world, so it is not my story to tell.
If Apple has a soul these days, it has nothing to do with
changing the world. Apple is company of constricted bandwidth
where few people have the authority to do anything that really
matters. Apple is not a company where a mistake is a learning
experience. It is a company where who you know means almost
everything. Again this might be the same across corporate America,
but I believe the fear of being fired colors much of what is done
at Apple. I actually don’t think that fear of being fired is
a good way to run a company that might one day need some new
leaders.
So what is at the heart of Apple’s psyche in 2011. It is
money and control. The company wants to make money and is
pretty obsessed with it. And the company wants to control almost
everything from the customer experience to how files are moved from
the iPhone to a computer.
There is nothing wrong with making money. When Apple wasn’t
making money, we were all in danger of losing Apple. I am
happy that Apple has moved to the positive side of the ledger, but
I think that with all of Apple’s profits, there might need to be
some balance restored to build a company with more of a soul.
I have read lots of articles talking about what a deep bench of
talent that Apple has. I don’t buy it. I recently had a
friend who worked at Apple describe someone we both knew who is
still there. I wasn’t shocked at the description of someone who was
miserable in his job, but it did make me think back to the years
when everyone at Apple loved their job and felt like they were part
of the company’s mission. The guy hanging onto to his job at
Apple was only there for the money. He had long ago
jettisoned important values whose disappearance will come back to
haunt him.
I am not going to venture a guess whether or not this lack of a
real soul is Steve’s personality draining down to the trenches or
if it is a result of too many bean counters and a HR department
populated with a few trolls right out of the Dilbert comic
strip.
For whatever reasons, Apple has become a very hollowed out
company. The products are still great, but I have not gotten any
letters from Apple sales employees saying that I am painting an
inaccurate picture. In fact that the ones that I get say that I am
“spot on.”
So in the end, we will have to see if a company with money at
their heart and control defining every decision can continue to
make great products ten years from now. I don’t know. I just
know there is a recovery period after being an Apple
employee. It takes a while to see the world in proper
perspective.
The best recent example of the sad state of Apple employees that
I can think of happened when I received an email from a senior
person at Apple who basically has not communicated to me but once
in the last six and one half years since I left Apple. This
is someone whose career I helped along a lot, but that is another
story. The email that I got was about an Apple customer who
had gotten in trouble with the law. Well it turns out this
was the same customer who at one time ran the IT at a very
important client. A few years ago his servers had gone
through a meltdown. He started calling Apple phone numbers
and couldn’t get anyone until I picked up the phone.
The problem was that I hadn’t worked at Apple for a number of
years. I made some calls and got Apple to talk to him, but it
was an embarrassment to the fellow who sent me the email since he
was one of the people who didn’t return one of the customer’s phone
call.
So the Apple employee’s first communication with me in years
happens to be one that tells the story of former customer who
embarrassed him and has now gotten in trouble. I would have
rather heard about all the nice stuff that was going on in the
Apple employee’s life rather than someone’s else misery, but that
is what Apple does to you. It makes you appreciate misery
because it isn’t happening to you at that moment. Happiness
is someone else being miserable.
Whether or not it is a good way to run a company, it certainly
isn’t a good way for people to live.
I am proud to have recovered from Apple. I look at life at lot differently than I did
when I was there. While fame and fortune have yet to find me,
I am happy with my life, and I would rather be doing things my way
than the Apple way. I learned a lot in my journey with
Apple. It was an interesting ride, and for most of the almost
twenty years that I was there, it was a neat place to be.
As I listened to a presentation at our church recently on the
Boy Scout troop that we support, I wondered if Steve Jobs was a Boy
Scout? I am guessing probably not, but I don’t care.
That because I am proud to have been a Boy Scout. The values that I
learned in Scouting continue to serve me well.
Then again, my goal isn’t to control the digital world. I
just want to leave the people and places that I touch the way that
I found them unless I can make them a little better.
I quoted the article in full because it's been meanwhile removed from the original site. An interesting post from a long time Apple employee on less glamorous aspects of working there.