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.

UPDATE 02/03/13

Check out the following sites for more insight into Steve Jobs:

  • Patrick Meyer, a business 3.0 expert and “The CEO Futurist” keynote speaker, points out how you can “shift your game” to new level if you leverage his Steve Jobs based “5 Disrupt Drivers for 2013.” Check them out here: What Steve Jobs Did Best!–Insights to Shift Your Game in 2013
  • Peter Sims, a management writer and entrepreneur points out some of what he calls mistakes in an HBR article. What he calls mistakes I call tactics, and not part of his leadership style. See if you agree here: Five of Steve Jobs’s Biggest Mistakes
  • David Marquet, leadership guru, former U.S. submarine driver, and someone who knows leadership (having turned his crew from being “worst to first”) makes an outstanding point. If the test for accomplishment is measured in quarterly results, and the test for leadership measured over quarter-century results, was Steve Jobs a great leader? Interesting point, and be sure to read it here: Apple: the difference between #Leadership and Accomplishment?

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.

 

The Future of Advertising: The (un)Changing World

Get Ready

The winds of change are blowing through the marketing industry, whether we like it or not. The only question is how best to prepare for the change.

Many agency leaders have given up on sailing into winds of change that are blowing through our industry.

Instead they let clients take the lead and force the pace of change. These agency leaders try to manage the unmanageable, struggle to keep up and let the winds of change blow them every which way. Their energy is spent in reaction.

There is a better way.

Believe that the only constant from now on is change. Any attempt to control it flies in the face of reality. It can’t be done. Stop reacting and stop trying to manage what can’t be managed.
Agencies can dictate the pace of change only by getting out ahead of it. On the edge where agencies used to operate. Take a chapter from the clients’ play book. Get back to basics. Focus on your agency’s organization and the way it does business. Clients spend big money making sure their firms operate the fastest, quickest, smartest way they can. And that means they have to put pressure on their suppliers (read “us” here) to either get in step with them or fall behind.
Improve the way your firm operates. This can pay big dividends in terms of profitability, speed, response, and client satisfaction – free up resources to try something different.

Five “Plays” To Improve Operations

Play #1. Service right:

Cut the fat and high salaries out of account service. Replace your account service team with lower-paid project managers who operate as the go-betweens to keep work moving. Think of them as traffic managers on steroids, even though Congress might frown on that expression. Then create a new set of agency people who concentrate on delivering business building ideas for clients. This means helping clients market better. This new role is called account strategists, not account planners. This position puts the emphasis on moving the client’s business forward, not getting the ads right. The results of this dramatic shift can be quite positive including lower costs, more face time, better thinking, more ideas to clients which they love, and a smoother-operating agency.

Play #2. Prioritize right:

All projects and all clients shouldn’t be treated as equal. Hospitals gave up long ago treating all emergency room cases on a first in/first treated basis. They prioritize the work. They call it triage but it’s a priority system. And it works.
Here’s one for agencies to follow. Agree that most of your work load is classified as “Green”. It’s important to the client, and it makes money for you. In percentages, 95% of the work you do is in this Green category. The rule is to do it and move it. Don’t fight over Green work. Concentrate on getting it done to the best of the agency’s ability but solve the problem, help the client, and keep it profitable.
Every now and then you will get a “Yellow” job. This is a project that will make the agency famous. Here you want to over spend and work hard for a “home run.” This classification will happen about 4% of the time. Maybe it’s a pro bono piece. Or a outdoor posting that everyone will see. The client might not consider it special but you do because it can make the agency better known, perhaps famous. You want to do great on the Yellow opportunities you find. And over invest to make it great.
Lastly you will have a one or two “Red” opportunities each year. The definition is that the Red work has the power to change a client’s future. It can have that much impact. Here you want to fight for your ideas and suggestions, risk losing the client in the process because the client needs this, whether or not the client sees the value.
What do you gain? Differentiating work by type and developing priorities and processes that reflect the nature of the job can free up an abundance of agency resources.

Play #3. Start right:

One of the greatest contributors to wasted effort, rework, revisions and general staff frustration can be easily avoided by starting every project on the right foot. A different kickoff with differing requirements can be created for each different job classification. With the Green, Yellow and Red system you know where you want to concentrate your resources. Make that clear at the beginning of each project and the agency will be a happier and more productive place.

Play #4. Organize right:

The best agencies do project management in their sleep. They have different color files for different types of projects; they utilize traffic boards to visually keep track of all of the work; and they never sit on a file that is due downstream. Some high volume agencies have gone so far as to create a war room-like traffic center that is visible from the lobby and utilizes tracking boards that cover the entire wall – utilizing colors and flags to visually illustrate where each project is in its life cycle. The key is to focus on a few key attributes (e.g. job classification and critical approvals) and develop a low maintenance and creatively structured way of tracking the work through its life cycle. The benefits here for clients, staff members, managers, and owners are enormous.

Play #5. Keep time right:

You get better when you really measure performance. And the biggest performance measurement for agencies is time utilization. It’s the biggest resource you have available and you need to know how it’s being used. Reporting accurate time is critical if you want to be paid what you are worth. And having good records allows you to price your services in the future. Time management is an area where consultants shine and agencies can take a lesson. Agencies need to develop the same pride in time as they do in creativity.

Bottom line:

Implementing one or more of these ideas will improve the agency’s bottom-line performance. And the overall impact may reach well beyond the bottom-line. Many agencies find that once they start to address the changing world with some sound un-changing principles inside their walls, they start to lead their clients. Just like the old days… the (un)changing world.

The Future of Advertising Agencies: Learnings From Forrester

Over at Edward Boches blog Creativity Unbound is some interesting research on the future of advertising from Forrester – from a while back that I just found and read. I encourage everyone to read the whole thing. Pay close attention to his addtional thoughts… Go read, now!
I’ll wait.
The key findings topline is:
  • It is a new world defined by technology and consumer control
  • Consumers hate most advertising
  • Adaptive marketing is the new model
  • Media needs to combine paid, owned and earned
  • Successful agencies will move well beyond campaigns
  • Clients will look for three things
    • Ideas: note this does not mean messages or ads
    • Interaction: engagement, connection, community, media
    • Intelligence, as in you need to collect, report, analyze and predict: if you don’t have robust analytics, you’re in big trouble

Edward goes on and cuts to the chase with this additional thought:

Chief Innovation Officer, Mullen; Marketer; Blogger

If I were to sum up even more.

  • content lives everywhere, there are no walls
  • experiences more than messages
  • consumers aren’t audience but participants
  • agility is essential
  • measure, predict, act

 

Changing Technology Study

Back on November 11, 1996 I was part of a team that published a research paper for one of the largest marketing firms out there. The purpose was to examine how trends and new capabilities in information technology would impact the world of marketing. Back then ”information technology” is what we called everything from the new “world wide web” to networks just being developing in-house.
Just to give you an idea on just how much the world has changed think about this - In 1996 the DVD was launched, in Japan, not in the US. Windows NT 4.0 was released by Microsoft and Apple was losing money. Internet Explorer 3 was just launched to fight Netscape. The New York Times just started its own website. It was a big deal that time as very few newspapers bothered to bear the expense of having a website and publishing their own materials in it.

The Findings

What were the results of our study? From the findings we found 1996 to be a year of change:
As the number of messages in the marketplace rises exponentially, the perceived value of each message has diminished over time. New technologies have not only reduced the value of each message, but also provided each consumer with greater control over the messages they receive. This newly created consumer power will continue to drive the marketing communications industry. Consumers can now dictate when, how and where they will listen to marketing messages. The net effect of this empowerment on the industry is substantial:
  1. The proliferation of mass media is giving way to alternative media outlets and vehicles, absorbing greater proportions of client marketing budgets
  2. Agencies who focus on traditional mass media are threatened with extinction because they will be able to add little value to the planning, buying and execution process
  3. Agencies need to take a much stronger leadership role in integrating with clients and their end customers
  4. Agency professionals need far greater access to information on their target audience and must know how to use it effectively
  5. Traditional compensation and commission schemes will continue to evaporate in favor of project, performance or consultative-based value creation
We summed it all up by stating “The advertising industry is at a critical juncture in relation to the effective utilization of technology. It must find new ways to harness the power of information to influence the consumer, integrate its existing client base and attract new business. The alternative is to let the industry’s core business continue to erode by adding little or no value to the advertising process.”

The more things change…

The more change there is. There was a time where ad agencies and clients were tied at the hip – structures aligned – CEO’s/ad agencies communicating almost daily. Back then the ad agency was a titan in the corporate world – could create markets, brands, and shape public perception with strong impactful marketing ideas. Of course it was much easier back then when almost everyone would tune into a show like Ed Sullivan.

In this hyper-marketed world the power of any one marketing effort is severely diminished. CEO’s have recognized this and now spend more time with business strategist, management consultants and such… The board room used to be a regular meeting place for the agency, now it’s not. This is not to say there’s not a few powerful brands that still rely on marketing, and use it in a strategic way… only that is increasingly the exception.

The rules HAVE changed, and unless marketing firms understand the basic fundamentals of the change many will be just changing deck chairs.

 

Want More Revenue? Do More Consulting!

It's not too late to change...The phone calls into us always begin the same way. It’s an agency owner online who has a prospect for some agency services, and the prospect’s product or service is new, untried, money is limited, or time is short. You know the drill. The typical agency owner is planning to sell in a focus group or two to get started and wants confirmation that that’s the right thing to do.

Ugh. First off that sounds so simplistic, sort of like your doctor saying take two aspirin and call me in the morning. There’s a better approach.

Start Consulting by Starting Simple:

What’s needed is a simple consulting arrangement that maximizes value for the prospect, revenue for the agency owner and a more professional approach for the agency. The strategy is to move the prospect into a consulting arrangement, not a marketing answer.

You sell in a basic short-term consulting arrangement that will allow you to do a deep dive into the product or service that needs to be marketed. You are selling in your time to talk to users, investors, bankers, and other contacts that have insight on the product or service. Figure to sell in 5 days of consulting time, and now show how the 40 hours will be spent by your team, hour by hour. It all adds up to the fee you are proposing. For the client it’s more professional, simpler to understand and easy to see where the time goes.

The key is to make the list of projects you plan to undertake sound long and exhaustive and important to know. Now use your agency team to burn the hours doing a thorough situation analysis but don’t waste any time on preparing a report or passing money on to research houses, focus group facilities, etc at this stage. You keep the full fee as revenue.

At the end of the time, present a charted out SWOT program to the prospect showing how to solve the problem, meaning how to launch the product or service, what to call it, what follow-on research you need, and all the trimmings to do a good job for the client.

Your ideas at this stage are just rough. Don’t waste any creative time on concepts or tactics at this stage.

And don’t spend more than a minute from the end of the first 40 hours of your consulting study until you present your SWOT and you don’t want to mention you will be presenting a SWOT but call it something like a Flashplan or Impact Study or whatever you name it to get it started. SWOT is the format you are following to make it understandable and easy to follow. Nothing more is needed at this stage.

To sell it in focus the prospect on the need for the first phase, not the second phase, so you can be general on what the pay off will look like because you don’t know until you get into it.

This is a much better way to get started with a new client because it lets you learn about them and you learn about the market. And the start up money available comes to you, not to a research facility down the street.

Move into Consulting. Control Your Future!

It’s called consulting and any agency with more than four people ought to be doing a half million in consulting revenue every year. This simple consulting approach will get you started toward that goal.

Many marketing firms are feeling like they’ve missed the boat. Time to change the rules and get back in the game… it’s not too late. Consulting is the lost art that agencies need to rediscover in this new world we are now living in.