Steve Jobs' Management and Organizational Structure at Apple
- Restructuring β When Steve Jobs returned to Apple in 1997, he dismantled the existing business unit structure and laid off all general managers in a single day.
- Unified P&L β Jobs consolidated the company under one profit and loss (P&L) statement, eliminating the separate P&Ls for each business unit.
- Functional Organization β He reorganized Apple into a functional structure, combining disparate functional departments into one cohesive unit.
- Expert Leadership β Jobs emphasized having managers who were product experts rather than general-purpose managers, ensuring deep expertise in their respective areas.
- Collaboration β The new structure encouraged collaboration across different departments, breaking down silos that previously existed.
- Long-term Focus β By removing short-term market pressures from individual product managers, Jobs ensured that innovation and long-term planning were prioritized.
- Innovation β This structure allowed Apple to innovate more effectively, leading to the development of groundbreaking products like the iPod and iPhone.
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Functional Organization
- Restructuring β Jobs dismantled the existing business unit structure and laid off all general managers in a single day.
- Unified P&L β He consolidated the company under one profit and loss (P&L) statement, eliminating the separate P&Ls for each business unit.
- Functional Departments β Jobs combined disparate functional departments into one cohesive unit, which is more common in smaller entrepreneurial firms.
- Collaboration β This new structure encouraged collaboration across different departments, breaking down silos that previously existed.
- Long-term Focus β By removing short-term market pressures from individual product managers, Jobs ensured that innovation and long-term planning were prioritized.
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Try it for freeExpert Leadership
- Product Experts β Jobs emphasized having managers who were product experts rather than general-purpose managers.
- Deep Expertise β Managers were required to have deep expertise in their respective areas, ensuring they could guide their teams effectively.
- Hands-on Approach β Managers were expected to be involved in the details of their field, not just oversee operations.
- Collaborative Decision-Making β Jobs fostered a culture where managers collaborated with colleagues to make decisions.
- Continuous Learning β Managers had to be willing to learn new areas and teach others, adapting to the evolving needs of the company.
From inc.com
"Apple is not a company where general managers oversee managers; rather, it is a company where experts lead experts,"
inc.comVerified
Impact on Innovation
- Innovation Culture β The functional structure allowed Apple to innovate more effectively.
- Product Development β This structure led to the development of groundbreaking products like the iPod and iPhone.
- Long-term Planning β By removing short-term market pressures, Jobs ensured that long-term planning and innovation were prioritized.
- R&D Focus β Senior R&D executives received bonuses based on the performance of the entire company, encouraging experimentation with less-popular products.
- Market Impact β Apple's innovative products have had a significant impact on various industries, including personal computing, music, and mobile phones.
From tidbits.com
"Jobs decided that this approach hampered Appleβs ability to innovate. He switched the company to a functional structure, with divisions for hardware and software, and where individual product managers were insulated from short-term market pressures."
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