A Tale of Two Steves

A Tale of Two Steves Joanne Greene-Blose Boston University AD643 Project Communications Professor Steve Leybourne

A Tale of Two Steves Abstract Good leadership is key, particularly in todays competitive global economy, and can make the difference between the success or the failure of the organization (Bennett, 2009). This paper

looks at the CEO of the top tech company in the world, Apple Inc., and analyzes his leadership style. Steve Jobs, as Jack Welch called (Elkind, 2008), the most successful CEO today exhibits characteristics of both transactional and transformational leadership styles. He can be perhaps best labeled as a composite of both. He possesses micromanagement tendencies, is quick to judge, frequently yells and berates his employees, and reduces them to tears. Yet he also inspires a transcending vision who can connect emotionally with both his customer base and employees (Fannin, 2005; Transformational Leadership, 2002). Jobs is unquestionably an enigmatic, polarizing figure yet his formula for success cannot be denied.

Joanne Greene-Blose

A Tale of Two Steves A Tale of Two Steves

The importance of good leadership in todays environment cannot be overstated. Bennett (2009) identifies leadership as determining the ultimate success or failure of the organization and Ismail, Mohamed, Sulaiman, Mohamad, and Yusuf (2011) view it as the primary force in determining competitiveness in a global economy. With this as a backdrop it is instructive to look at a very successful leader, Steve Jobs, and determine what it is about his leadership style that has driven Apples success. Apples market capitalization is over $300 Billion (ElmerDewitt, 2011) making it the second most valuable publicly traded company1 in the world, surpassing even giant (and rival) Microsoft. Current thought has categorized leadership into two camps, transactional and transformational (Ismail et al, 2011). Transactional leadership involves working within the existing culture, ensuring that employees are doing things correctly. Rewards are performance based and incorporate Management-By-Exception which involves monitoring performance and either taking action if performance deviates from expectations or being proactive in preventing deviations. Its a directive Theory X leadership style (Aucoin, 2007, p89). Transformational leadership involves inspiring greater performance, creating a vision and aligning staff around that vision, fostering creative ideas, and being sensitive to the needs of others (Bass & Avolio, 1993; Bennett, 2009). A transformational leader is charismatic and intuitive. Its been proven that transformational leadership results in increases in productivity as well as employee satisfaction and employees prefer to work for leaders with this style (Bennett, 2009). Its in line with MacGregors Theory Y and Ouchis Theory Z leadership style (Aucoin, 2007, p89).

First is Exxon

Joanne Greene-Blose

A Tale of Two Steves However transactional leadership does have positive attributes in that it can build an environment of trust and loyalty if the promised rewards are given, which in turn leads to job satisfaction (Bennett, 2009). In reality both styles are typically not only present but are needed

(Ismail et al, 2011; Bass & Avolio, 1993). Leybourne (2011) refers to these combined styles as composite leaders. It is this last type of leader, the composite, that fits Steve Jobs most appropriately. He can display both extreme tendencies in either direction on a regular basis. Steve as Transactional Leader Its no secret that Jobs can be someone to be feared, having been described as the great intimidator (Moore, 2009). He is quick to judge, categorizing employees as either geniuses or bozos and quickly firing those who fall in the latter camp (Moore, 2009). Said Larry Tesler, an Apple engineer, regarding Jobs, the little things he did would create incredible pressure unlike Id ever experienced before just tearing you to the bone ripping you apart and making you feel worthless. (Harvey, 2001). Fear and reprisal tactics are not qualities of the aforementioned transformational leader, particularly as transformational leaders are known to show respect for their employees (a subcomponent known as individualized consideration (Purvanova & Bono, 2009)). Jobs defends these tactics by stating about his employees, when you get really good people they know theyre really good and you dont have to baby peoples egos so much. (Harvey, 2001) and My job is not to be easy on people. My job is to make them better. (The Leadership Style, 2011). Stanford management professor Robert Sutton said of Jobs, The degree to which people in Silicon Valley are afraid of Jobs is unbelievable. He made people feel terrible; he made people

Joanne Greene-Blose

A Tale of Two Steves cry. (Elkind, 2008). Jobs could usually justify his behavior because as Sutton adds, he was almost always right, and even when he was wrong, it was so creative it was still amazing. Former PR chief at Apple, Laurence Clavere dealt with his temper by embracing the

mindset of a bullfighter entering the ring before going into a meeting with him (Elkind, 2008). Another transactional/Theory X attribute of Jobs is his propensity to micromanage and control every aspect of the business. Hes been described as a control-freak extraordinaire (Moore, 2009) and no CEO is more personally identified with and controlling of the day-today affairs of his business2 (Elkind, 2008). Its difficult for him to stand by if he believes someone is heading in the wrong direction. For example, when he first returned to Apple in 1997 he insisted he did not want the then-CEO Gil Amelios job but then quickly usurped him (Burrows, Grover, and Green, 2006) leading to a silicon valley catch-phrase, getting Amelioed3. He solidified this control by proceeding to replace the entire Apple board, save one (A Fruitful Connection, 1997). Said PR consultant Andrea Cunningham who worked with Jobs on the Macintosh and Next product launches, He is obsessed with details recounting how Jobs had to control exactly what food would be served at the launch as well as how the room would be decorated (Fannin, 2005). Its these traits in Jobs, the micromanagement, the insensitivity, and lack of trust in his staffs capabilities that characterize him (in part) as a transactional leader. Steve as Transformational Leader Despite Jobs extremes into the transactional space, he is equally extreme in the transformational space. He is known for his rhetorical skills and power of persuasion, qualities

Few CEOs are involved to the extent that theyre listed as co -inventors on 103 patents of their product ideas as Jobs is (Elkind, 2008). 3 Many believed that Iger, the Disney CEO, would become Amelioed by Jobs (Elkind, 2008) but this never happened.

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that define a charismatic leader (Transformational Leadership, 2001). He is famous for luring John Sculley, a move that Jobs would later regret, away from Pepsi with the words, Do you want to spend the rest of your life selling sugared water, or do you want a chance to change the world? (Elkind, 2008). Words like these were representative of the inspirational motivation aspect of transformational leadership that Jobs possessed. A colleague described him as one of the most charismatic people in the computer industry. (Transformational Leadership, 2002). Strategic Direction wrote about him (Who has the top, 2009) that few CEOs enjoy the iconic status and fanatical following as Jobs. Andrea Cunningham who had lamented about his micromanagement style also said of him, You have this feeling that you are going to change the world with him, and it can justify the 90-hour weeks. (Fannin, 2005). This turns out to be a very revealing comment as transformational leaders are known to be able to inspire their followers to push further and harder than they otherwise would by transcending their own self-interest for the sake of the team and directing their efforts to the pursuit of Maslows highest level; spiritual actualization (Aucoin, 2007, p90). Transformational leaders must also believe in their own vision. Genuine enthusiasm is tangible and transfers easily to others who cant help but become enthusiastic themselves and as Jobs says in his own words, The only way to be truly satisfied is to do what you believe is great work. (The Leadership Style, 2011). His vision extends beyond his employees to his customer base where he can market his product in ways that make consumers want to be part of techs cool club. (Burrows et al, 2006). His customers, and employees, identify with him in part due to his non-corporate image of wearing jeans and mock turtlenecks to the most formal of functions, like his product launches. In fact when he addressed the Apple executives for the first time upon his return in 1996 he

Joanne Greene-Blose

A Tale of Two Steves entered the board room wearing shorts, sneakers, and a few days beard growth (Burrows et al, 2006).

Harvey (2001) states the ability of a charismatic leader as one who can align himself with his followers while at the same time differentiate himself enough to justify his ability to lead. Jobs does this with his dress, but he also both aligns and differentiates himself with his rhetoric. For example he aligns himself with his Macintosh team by describing them with attributes (mostly right-brain characteristics) that appeal to him personally. As he stated, the people working on it were musicians and poets and artists and zoologists and historians who also happened to be the best computer scientists in the world. (Harvey 2001). Then he uses impression management as a strategy to project himself as morally worthy and exemplary, thus differentiating himself enough to warrant his leadership. For example upon his return to Apple he discusses Sculley in an interview, stating that he would have willingly and gladly left Apple if it had continued on a course it should have adding that Sculley destroyed the company hed spent ten years building (Harvey 2001). In saying this hes both promoted himself as being willing to sacrifice for the greater good and positioned himself as the superior leader (which, it turns out, he was). Conclusion In truth, Steve Jobs is both a transactional and a transformational leader. Hes a composite leader in an extreme way, someone to be both greatly feared and greatly admired. Jordan Timm (2009) says of Jobs dual personality that his rare blend of the charismatic and tyrannical has been the key to Apples success. This is quite true of Steve Jobs but hes not alone in his ability to possess both transactional and transformational styles. Bass believes (as cited in Bennett, 2009) not only that leaders can possess both, and use them as the situation

Joanne Greene-Blose

A Tale of Two Steves dictates, but that transformational leadership is itself merely an extension of transactional leadership. Bass and Avolio clarify this (1993) advising that organizations should maintain a base of transactional leadership while moving their organizational culture towards one of transformational qualities. Still, the embodiment of both these qualities to the extreme degree evidenced in Steve

Jobs is rare. Burrows et al (2011) perhaps put it best, how this bundle of conflicting behaviors can coexist, to spectacular effect, in a single human being remains a puzzle. However it may be, there is no denying it works.

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A Tale of Two Steves

References A fruitful connection. (1997, August). The Economist, 344(8030), 52. Retrieved April 9, 2011, from ABI/INFORM Global. (Document ID: 13581230).

Aucoin, B.M. (2007). Right-Brain Project Management - A Complementary Approach. Vienna, VA: Management Concepts.

Bass, Bernard M, & Avolio, Bruce J. (1993). Transformational leadership and organizational culture. Public Administration Quarterly, 17(1), 112. Retrieved April 14, 2011, from ABI/INFORM Global. (Document ID: 815353). Bennett, T.. (2009). A STUDY OF THE MANAGEMENT LEADERSHIP STYLE PREFERRED BY IT SUBORDINATES. Journal of Organizational Culture, Communication and Conflict, 13(2), 1-25. Retrieved April 13, 2011, from ABI/INFORM Global. (Document ID: 1964469001). Burrows, P., Grover, R., and Green, H. (2006, Feb 6). Steve Jobs Magic Kingdom, How Apples Demanding Visionary will Shake Up Disney and the World of Entertainment. Bloomberg BusinessWeek website. Retrieved from: http://www.businessweek.com/magazine/content/06_06/b3970001.htm Elmer-Dewitt, P. (2011, January 3). Apples market capitalization tops $300 billion. Fortune Tech, In CNNMoney.com. Retrieved from: http://tech.fortune.cnn.com/2011/01/03/apples-market-cap-tops-300-billion/ Elkind, P. (2008, March 5). The Trouble With Steve Jobs. CNNMoney.com website. Retrieved from: http://money.cnn.com/2008/03/02/news/companies/elkind_jobs.fortune/index.htm

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A Tale of Two Steves Fannin, R. (2005, October). BRAND LEADERS 2005. Chief Executive, (212), 24-29. Retrieved April 9, 2011, from ABI/INFORM Global. (Document ID: 911507501). Harvey, A. (2001). A dramaturgical analysis of charismatic leader discourse. Journal of Organizational Change Management, 14(3), 253-265. Retrieved April 9, 2011, from ABI/INFORM Global. (Document ID: 250957171). Ismail, A., Mohamed, H., Sulaiman, A., Mohamad, M., & Yusuf, M.. (2011). An Empirical Study of the Relationship between Transformational Leadership, Empowerment and Organizational Commitment. Business and Economics Research Journal, 2(1), 89-107. Retrieved April 16, 2011, from ABI/INFORM Global. (Document ID: 2249003471).

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Leybourne, S. (2011). Transactional vs. Transformational Leadership. In Lecture 4-Leadership, Trust, and Motivation: How Do You Get People to Deliver for You? Lecture notes. METAD643, Boston University. Moore, S. (2009, March). Not bad for a hippie dropout. Management Today, 27. Retrieved April 9, 2011, from ABI/INFORM Global. (Document ID: 1681056621). Purvanova, R. & Bono, J. (2009). Transformational Leadership in Context: Face-to-Face and Virtual Teams. The Leadership Quarterly, 20, 343-357. The Leadership Style of Steve Jobs: In His Own Words. (2011, March 7). MacGateway.com website. Retrieved from: http://macgateway.com/featured-articles/the-leadership-style-ofsteve-jobs-in-his-own-words/ Timm, J.. (2009, October). Infiltrating the Cult of Steve Jobs. Canadian Business, 82(17), 76. Retrieved April 5, 2011, from ABI/INFORM Global. (Document ID: 1894331971).

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A Tale of Two Steves Transformational leadership @ Apple. (2002). Strategic Direction: Special Issue: Change Management, 18(6), 5-7. Retrieved April 16, 2011, from ABI/INFORM Global. (Document ID: 269134551). Who has the top Jobs at Apple :The problem of succession and how to learn from history. (2009). Strategic Direction, 25(8), 27-30. Retrieved April 9, 2011, from ABI/INFORM Global. (Document ID: 1869047121).

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Joanne Greene-Blose