8 Unforgivable Leadership Mistakes Steve Jobs Made

There have been many great books, articles, and blogs praising the leadership of Steve Jobs and the results are hard to argue with. Steve was one of the most powerful visionary leaders of our day. Both highly intellectual and possessing the mind of an engineer, combined with the vision of an artist, he transformed an entire market. So shouldn’t we all strive to be like Steve? The problem is there are only a handful of people who can visualize a future, play with it in their mind, and then go create it. A leader that smart can break all of the leadership rules. And sadly, most of us just aren’t that smart.

There is much to be learned from taking a contrary view of Steve Jobs and studying his actions as the leader of a company in an industry still undergoing epic transformation. Just as the entire marketing industry is going through now…

It’s Steve Jobs’ world and we’re just living in it!

From about the late 1700s to the mid-1800s, no one at that time understood that the extent of change that would later be deemed the Industrial Revolution. New ways of managing and organizing business completely transformed the world. Production of goods that for centuries were in small family-run business gave way to large centralized factories, and the concept of mass production not only opened the door to new opportunities and unprecedented growth, but also reshaped the way we live, work, and play.

The digital revolution is just as transformative, and again no one saw just how much this change would influence our lives. Steve Jobs was lucky enough, good enough, and smart enough to thrive in and be part of that change. And along the way, Steve created a series of great “gotta-have” products. In effect, Steve created new ideas and products from nothing.

So as we are still living within this digital revolution, we have to re-evaluate where we are now and try to figure out where we are headed. There have been many books, articles, blog post, and discussions on the changes sweeping our industry. Many so-called experts are pushing various models, structures, skills, and ideas that advertising agencies should adopt. Some seem like good ideas; others seem very much like pie-in-the-sky thinking. What is true is that change is sweeping through the marketing industry. A new foundation is being created, but it’s still too early to tell just what this new foundation is or how it will end up looking. To quote the oft used adage “the only constant from now on will be change!”

Many leaders, when faced with this epic change, look for inspiration, a guidepost, something that will offer a clue about how to lead in times of upheaval. Truly transformational leaders who change the world for the better remain rare in business. Which is why Steve Jobs is so fascinating.

Don’t Be Like Steve: 8 Unforgivable Mistakes Agency Leaders Should Avoid:

  1. Don’t be a jerk. Steve Jobs was a known bully and would often fly off the handle at those under him. He would publicly question the intelligence of anyone he found fault with. Steve would snap and bark at those under him, park in handicap spaces, flaunt the rules and more… You don’t have to be arrogant to impress people with your abilities. Leave the arrogance at home because it’s not going to work for you. A real leader works to develop and maintain basic management and leadership skills– and isn’t a jerk.
  2. Living with bad decisions. A young Steve Jobs brought in John Sculley to run Apple. Unfortunately he got someone that didn’t understand Apple’s culture or brand. Eventually Sculley consolidated enough power and moved to have Jobs replaced. As a result the Apple brand suffered. A decade later Jobs said, “What can I say? I hired the wrong guy. He destroyed everything I spent 10 years working for, starting with me.” You can’t survive with poor employee decisions and/or actions. Trust your gut and move quickly to address your bad decision. As one agency leader told me when I asked for the reason for his success, “slow to hire, quick to fire!”
  3. Not communicating expectations or goals. When a visionary leader sets a goal, they expect everyone to move in that direction. With Steve Jobs he often didn’t understand why people didn’t “get it” because it seemed so obvious to him. Rather than clarifying goals, Steve would publicly humiliate them or just fire them outright. As a result, the creator of the outstanding retail stores, Rob Johnson, left. Alison Johnson, Apple’s vice president of global marketing and communications, left. Spend time with your staff and make sure they understand your goals and expectations.
  4. Fail to train and invest in staff. Steve Jobs never had any formal training: not in management, not in engineering, not in design. Almost everyone he worked with was amazed at his capacity to make decisions solely based on his instinct. This is great for a gifted visionary. Not so good for the rest of us. Invest in and develop your next tier of leaders.
  5. Failure to advocate, support, and nurture initiative. There are many accounts of Steve jobs firing staff on the spot for taking initiative. His staff had to be very careful of what they could do; everyone understood some actions were not forgivable. If you’re the CEO of one of the largest, fastest growing brands and an icon of top talent around the world, then by all means punish anyone you like. Use fear as a motivator. Good luck attracting and keeping top talent. Better to create an environment where initiative is rewarded and mistakes are viewed as opportunities to learn.
  6. Don’t build walls. Apple’s cult of secrecy, a brainchild of Steve, is well known. Programmers were not allowed to see the product; designers were broken into small groups to work on different elements; and people were publicly fired for letting any information out. Nobody could share ideas. It was rumored that fewer than 12 people saw the final iPhone prior to Steve demonstrating it at Macworld in 2007. Apple needs to keep secrets, no question, but for most successful agencies inclusion is the name of the game. Be sure to involve your staff in any activity where they could make a contribution.
  7. Failure to provide and receive feedback from staff. There were many stories about Steve Job’s bad behavior to his staff, how often he would make absurd or derogatory comments to them. But the most common criticism was that he interrupted and didn’t listen. As the incontrovertible public leader of Apple, Steve embodied the vision and was responsible for its success. He did so by relying on two things: understanding trends and using his own gut. There aren’t many people in the world that can build a world class organization on those two things. Stop, and listen to what your staff is telling you. Work to include them in your decision making process.
  8. Allow conflict and competition to get out of control. According to former NeXT business partner Pat Crecine, Steve Jobs was “absolutely single minded, almost manic, in his pursuit of quality and excellence.” As a result, he would create conflict… and into that high octane combustion he would pour more gasoline with his abrasive personality. The flip side is just as dangerous for agencies: trying to eliminate conflict altogether. Work to find that happy balance.

What did Steve Jobs Do Right?

There are many, many books on what Steve did right. The proof is in the results we see today. I just want to highlight a few…

Steve Jobs used the power of vision to drive Apple forward. Today, agency leaders struggle with managing change in the market. Agency staff perceives the ongoing conflict between their leader’s actions, the ever changing goals of the agency, and client demands. Often times the messages from the leadership about what the agency is doing to deal with change is confusing, conflicting or just lacking all together. There are many reasons for this, but most stem from a lack of understanding about what is changing or from a lack of the development of a long-term vision. After all, if we’re not sure what the future holds, then what sort of firm should we be creating? Without any clear articulation of future expectations and goals the staff is left wondering if there is any benefit to be gained from the changes occurring all around them. The key question on everyone’s lips is “what’s in it for me?” Here is where we can take a page right out of Steve Jobs leadership handbook. His vision for Apple was simple: “Our primary goal here is to make the world’s best PCs — not to be the biggest or the richest.” Every Apple employee was expected to share that vision. John Sculley wrote after taking over in 1985 about the vision “Apple was supposed to become a wonderful consumer products company… This was a lunatic plan. High tech could not be designed and sold as a consumer product.” Seems he was wrong and Steve’s vision won in the end.

Steve Jobs was fully committed. It’s often been said that “change is exciting when done by us and threatening when done to us” and this is truer today than ever. Steve understood this and was willing to sacrifice everything in pursuit of his vision. Look back at all the Apple initiatives canceled at the very last moment for not reaching his standards. Whole programs developed at great cost he cut. We know now that he canceled an Apple PDA and a set of web services at the very last minute costing him millions. As agency leaders it’s your role to own the brand. After all, ownership leads to commitment. Your actions can make any change less threatening. Remember, you always must demonstrate your commitment to change with actions. And if you’re a leader, then you need to be the first to change — jump off the cliff!

Steve Jobs surrounded himself with top talent. He worked hard to recruit people usually regarded as the best in their fields. And the very best wanted to work for Apple so finding them became easy. For an agency you have work hard to find new talent and/or develop what you have in-house. The world of marketing will continue to change, affecting all levels of not just the industry, but the agency and everyone who works there. This is a people business, and our staff is our most important asset. As a leader of the agency you must be aware of the changes and its impact on people. Each individual in the agency must change their behaviors to better handle the agency changes. And agency leadership must support the changes with open communication and ongoing education programs. Find or develop the very best talent you can.

Final Thoughts

There is no doubt that Steve Jobs was a force of nature– unique in our time. Recognized as one of the true visionaries in history, there is much we can learn from his actions. Some good, some bad. The key is to be comfortable in your talents and don’t try to “be” Steve Jobs.

Research shows the best leaders are good communicators. They have learned to give clear instructions, stay responsive to questions and suggestions, and keep the appropriate parties well informed. Research also confirms a positive correlation between communication (understanding) and:

  • improved productivity
  • better problem solving
  • a reduction in grievances
  • ideas for improvement in methodology
  • improved working relationships
  • greater personal satisfaction

Agency leaders must set the example of how to survive and succeed in this new age of change. Be it external in the services you develop and offer, or internal with changes to your organization, work or decision making processes.

Sanders Consulting Group works with marketing firms of varying sizes in one-day planning sessions, four week assessments, weekly monitoring, and long term on-site implementation programs. We have worked with over 2,500 advertising agencies, public relations firms, and sales promotion companies all over the world for over 25 years.

 

Leadership Offsite as Engine for Innovation

Most firms annually convene a leadership meeting, strategic planning retreat, or brainstorm session dedicated to crafting an innovative course of business strategy. Rarely do these meetings deliver results.

Time to break out of your shell

What are you waiting for? Real innovation is only found by looking outside.

Instead, they produce a pattern of incremental progress. And this does not translate into competitive advantage. Other factors affecting these meetings include planning, organization and leadership. Because responsibility for this meeting most often falls on the leader, the outcome is predictable.

The reasons for this are simple. Leaders “know” they know more than their team, so they develop a plan and agenda that determines the outcome – and everyone’s frustration. Experience shows most meetings of this type fall into one of two patterns. At the “Rubber Stamp Offsite,” the team nods along as their leader uses his agenda to present his assessment of the “As Is.” He then dictates the action plan and assigns responsibilities. This approach is easily identified by the neatly organized three-ring binder entitled, “Strategic Planning 20XX.” Note – look for an accumulation of dust.

The other meeting type, the “March of the Hopeful, Guilty and Ambivalent,” is the product of an insightful leader who – tired of the “Rubber Stamp Offsite” – assigns every member of the team roles and responsibilities. The outcome – well – you have been at these meetings… There is no outcome. Only a reporting of the past year, justification of the results and explanation of the incremental changes that will be implemented to fix what’s broken. Frustrated, the leaders usually sits down following this session; drafts an action plan and dictates responsibilities – see the results of the “Rubber Stamp Offsite” above.

If you want to break this cycle to create opportunities for innovation at your firm, then change your approach.

Don’t go off the deep end and schedule team building exercises through Outward Bound, or book a provoking motivational speaker. These activities make great copy – but rarely, if ever deliver business-changing insights. A growing number of successful organizations are utilizing professional facilitators to assist in the planning and management of these important meetings.

By assigning responsibility for the business of the meeting to an experienced outside party, the group is better able to focus on the business of the business. The role of the facilitator is part emcee, part mediator, and part referee. But more than that, this person frames the discussion, manages interaction and creates opportunities for discovery.

Because innovation is not achieved in-the-box, a firm is better served living the process, not running the process. And leaders must understand that insight is achieved through their support, not as a result of their management. Utilizing a resource experienced in facilitation and knowledgeable in the industry changes the meeting dynamics. The firm, as a whole, becomes the focus, not the innumerable piece and parts.

If your firm’s strategic planning process is not creating measurable results in growth, quality, productivity, or profitability year-over-year, then you might be a perfect candidate for this approach.

Having just finished a couple of these, one a large marketing consulting firm, the other a national agency, the breakthrough possibilities are enormous given the changing landscape and flux in the market.

Photo by ~JordanRobin

A New Business Quiz

Lost In The Fog

New business can be very confusing to agency leadership. There is a fog about new business that blinds agencies on which way to go.

Agencies must become new business machines. This means agencies need to step up their new business activities substantially. It’s not good news but it’s true news. For most agencies a whole new way of looking at new business is needed. What is your New Business grade?

New Business Quiz

[ ] Know the Difference Between New Business and Advertising. The biggest mistake marketing communication firms make is confusing new business with the skills they need to do good marketing communications. There’s a big difference and the lack of understanding here is the reasons so many firms have trouble with growth.

[ ] Develop A Good Brand. It starts with your name and what you say about yourself. Is it in step with where the market is going? Is it properly positioned so it offers real benefits that are easily differentiated from your competition? And finally, is it compelling to prospects? Nothing hurts a strong new business effort faster than a weak brand.

[ ] Invest in Solid Marketing Materials. Including a solid website that loads fast and isn’t cluttered with moving parts. Back this up with an effective send-me-something brochure that brands the firm properly. Have effective outreach tools on hand to open doors. Develop a list of good prospects and make sure it’s current.

[ ] Build A Strong Outreach Program. This usually means agency staff members focused on outreach full time. We call that winning the first opportunity which means creating a steady stream of invitations for first visits from high-quality prospects. You should target about 80-90 visits per year. With these in hand, you can walk away from RFPs, cattle calls, and agency clusters where competition is strong and your marketing ROI is low.

[ ] Know How to Achieve Great First Visits. A good first visit is where your team avoids presenting capabilities but focuses on building trust so prospects will discuss their business needs openly and honestly. It’s a learned skill set called Torch®. And it successfully moves the prospect toward a closing process.

[ ] Have the Skills to Win with Chemistry. Your likeability, which you can control with prospect profiling, is your biggest asset or your greatest hurdle. Does your team know how to use chemistry as a major competitive advantage? Or do you mistakenly just hope good chemistry happens?

[ ] Know How to Fast-Close. If you have a good first visit, then you are prepared to move for a fast close, either in 48 hours or 7-days. The alternative, often followed by most of the industry who don’t understand the fast close process, is to wait after a first visit because nothing substantial has been set up. This forces clients to move into a formal search where competition is high. And you get to present in competition with many other firms. Why let that happen after you win a good first visit?

[ ] You’re Set Up for a Tour. It’s called walking the talk and it’s built around keeping your firm propped and ready for a first visit by good prospects. Most prospects are being put on notice about the importance of visiting your communication firm before hiring them. Why not get ready for that with everything in place, properly set up to show off your capabilities in a best light?

[ ] You Can Win the Big One. Most any firm can win formal presentations month in and month out. It’s a learned process and it begins by targeting to win one out of three and then moving to win one out of two as your skills build. At this rate, new business presentations aren’t an expense but an investment in your future.

[ ] You Can Win at the End Game. This means you know how to tantalize with contract incentives. And how to keep your key players who “won” the business out of trying to get the contract approved. You should delegate that chore to a financial type who has been hard trained in best negotiation techniques, just like the clients sitting across the table.

Score_____________

Analysis. Rate your self on each of these 10 categories above with a score of 1-10 on each category with 10 being best. Total your scores. Anything lower than 75 points is failing just like in school. But growing your firm isn’t a game you want to flunk. Or even get a D in.

Sanders Consulting Group has over 15 learning programs designed to help train marketing communication firms in all of these new business areas. And we do more new business consulting on specific agency shoot-outs and new business assignments than any other firm around.

 

Photo by *behherit

Merry Christmas!

Christmas is a time to give and receive.

During this year, we have received a lot from you and we want to take time on this so special day to give you the respective thanks for your preference and trust. Merry Christmas and a Happy New Year filled with growth!

Our top hits from this year for helping agencies win more new business:

  1. New Business: Five Warning Signs of a Nightmare Prospect
  2. How Can a Small Agency Compete in New Business?
  3. New Business in Tough Times: 5 Ideas for Growth
  4. New Business: The Winning Pitch
  5. New Business Ideas: 49 Growth Tactics
  6. 7 Ideas On Why Your New Business Program Is Failing
  7. Winning New Business: The Defining Moment
  8. 5 Things I Hate About New Business
  9. Top 10 Mistakes That KILL New Business Presentations
  10. Trick-Or-Treat Lessons for New Business

It’s our hope you find something you can use to better grow your firm!

From all of us to you and your family... may you have a wonderful holiday season!

Happy Holidays!

 

 

Ad Agency? The Times, They Are A-Changin’

World of marketing is changing

Action and reaction, ebb and flow, trial and error, change - this is the world we live in.

Change. It happens every day, every moment, everywhere. Marketing firms, at the intersection of consumers and brands, must learn to embrace change.

Your Client Is Changing: Change How You Manage The Client

Clients today are looking for business-building ideas, speed, and firms that understand how to stay within budget.

Now is the time to think more strategically to determine exactly what your clients want – and deliver it better than anyone else! It’s time to rethink your account service team, move faster than ever, while boosting profits and lowering costs.

But first, you need to change.

The Consumer Is Changing: Change How You Sell To The Consumer

The consumer today is exposed to more messages than ever before from all types of media. Great creative can make a brand standout and generate that all important conversation. Now is the time to rethink the business and generate new ideas targeted to this new consumer – to make your agency more successful. Win awards. Attract new clients. Boost staff morale.

Time for more creativity from all members of your team… and to have a creative process that is faster, better, and more profitable… clients will be more satisfied and loyal.

But first, you need to change.

Marketing Is Changing: Change How You Market

Social media, conversations, listening to the consumer and more are changing the way agencies do business. Clients are demanding more. Consumers are becoming smarter. Now is the time to change how you view marketing – to improve your agency’s social skills and get an unfair advantage over your competition.

It’s a time when technology can bring you inside information, to make your creative more focused and insightful…. speed up your operations, to make you more efficient and cost-effective, to make your agency more profitable and even grow your business.

But first, you need to change…

You Need To Change: Change Your Agency… To Do It Better!

This is a fantastic time to be in advertising, full of incredible opportunity for growth and success – if you’re open to change. To change successfully, you must question everything you do. And discover new ways to do it better! It means asking tough questions, like:

  • What do we do better than anyone else?
  • What is our vision for the future?
  • How can we serve clients better?
  • How will we handle the impact of this digital world?

When you answer these questions, you’ve found your vision. But putting that vision into action can be challenging.

You Need to Change

To turn your vision into action, you’ll need to change the way you work and develop effective solutions to the barriers that stand in your way. You need to build on the unique capabilities of your agency – to take advantage of today’s market and become the agency of the future!

How long has it been since you took a long hard look at your firm? Your brand? Your new business efforts? Maybe you have been operating under the same brand for years without giving it much consideration. Or using the same processes and structure without reviewing all the changes in technology.

The bottom-line is the world is changing, and we all need to change with it.

Photo by ~gffrycole

Agency Growth the Old Fashion Way: Buy It!

Sometimes the secret of growth is hidden right across the street.

Want to grow fast? Do a cross-town merger. This way you add important services you don’t have or bulk up fast and perhaps more inexpensively than you thought. And with a cross-town merger you can bring in experienced personnel to add to your management team. That’s all possible if you grow by acquiring.

Why Cross-town Merger vs. Out-of-town Acquisition? Cross-town mergers are often quicker, easier and more profitable immediately. Back office, administrative, production and more can be streamlined with little problem. This simplifies management issues and produces fewer hassles. In addition, a cross-town merger is usually less expensive and is a good place to start. Few executives know the full extent of the many attractive opportunities within their own city.

So how does one go about a cross-town merger? First you have to decide to seek a merger partner. It’s important not to tell any outsiders about your decision. The search needs to be done in isolation. Second, do a strategy session to look at all the options. What type of firm should we be looking for? Any specialties we are missing? Or what market do you want to get into? Third, organize a proper search to see where the best fit is. Keep your name out of the initial conversation with any prospects. And lastly, use an experienced, outside point of view that will keep the process on track.

Typical Cross-Town Merger Situations We Find:

1. The Cherry

A perfect fit where everything goes right from the beginning and continues on through the deal. If everyone is reasonable, Cherry deals can be found and made. Cross-town mergers make these even sweeter.

2. The Slot

This is another perfect fit where you can slot the acquired operation into your firm without missing a beat. It’s usually in a service area where you have little experience but solid potential. The acquired firm gains from your resources, your new business opportunities, and the organic business you can place from your existing accounts.

3. The Escape

The search phase has located a firm in trouble and the owners want to crash the company, not pay the creditors and move themselves and several key accounts to your operation. You buy nothing. You take on some staff. You pay for what sticks.

4. The Exit

The search phase has located an owner who wants out, will stay for a year or two to work the accounts and help maintain AGI. But the owner is phasing out but willing to stay around to help the transition. And is willing to work hard to make the deal happen.

5. The Key Guy

One firm is not very good at new business, for example. The other firm is bad at operations but great at growth. The buying firm brings the other firm on board mainly to get the key person and the expertise to help them grow. The other guy wants to sell because he or she is having troubling managing the business already on hand and can’t wait to dump the operational side of things so he or she can go chase new business.

How To Get Started:

Not sure a cross-town merger is right for you? We suggest a “Power Hour.” This is a one-hour, no-cost discussion by phone on the best way forward. It’s a chance to check chemistry, analyze costs and investments needed, and discuss possible options and strategies for moving ahead. Contact us a call at info@sandersconsulting.com or just call 800/899.1538 for more information on how to get started and how to set up a Power Hour on mergers and acquisitions.

Photo by ~MaroziDawn