#265 Becoming Steve Jobs The Evolution of a Reckless Upstart into a Visionary Leader

In the episode, the host reflects on Steve Jobs' legacy, emphasizing his unique ability to envision what reality lacked and his relentless pursuit to remedy it. Jobs' wife's heartfelt words at his memorial service, captured in the book "Becoming Steve Jobs" by Brent Schlender and Rick Tetzelli, reveal Jobs' intuitive nature and quest for perfection. The host, having delved deep into Jobs' life and influences through numerous biographies, underscores Jobs' transformation from a brash young entrepreneur to a visionary leader. This evolution was fueled by his "learning machine" mindset, which was crucial during his wilderness years between his Apple tenures. These years, marked by failures and perseverance, were pivotal in shaping Jobs' later triumphs. The host also discusses Jobs' childhood, where his father's teachings on craftsmanship instilled in him the value of quality and the belief that anything could be built—a belief that eventually led to the creation of Apple. The episode further explores Jobs' negotiation skills, his synthesis of ideas into innovative products, and his unwavering focus on the customer experience, which set Apple apart from its competitors.

• Steve Jobs had a profound impact on how individuals, including his wife, perceived the world.
• His ability to envision what was not present in reality and his inclination towards beauty and perfection were central to his persona.
• Jobs' rigorous standards were rooted in a deep sense of possibility and inner freedom.

"Steve's love of beauty and his impatience with ugliness pervaded our lives. No object was too small or insignificant to be exempt from Steve's examination of the meaning and the quality of its form."

This quote reflects on Steve Jobs' relentless pursuit of perfection and his disdain for mediocrity, which influenced not just technology but the aesthetic aspects of life and work.

• "Becoming Steve Jobs" by Brent Schlender and Rick Tetzelli is highlighted as the definitive book on Steve Jobs' evolution.
• The book delves into Jobs' transformation from a young entrepreneur to one of the greatest business minds.
• The authors' close coverage of Jobs over 20 years provides a comprehensive understanding of his growth and learning process.

"The most basic question about Steve's career is this. How could the man who had been such an inconsistent, inconsiderate, rash, and wrong-headed businessman that he was exiled from the company he had founded become the venerated CEO who revived Apple?"

The quote poses the central question of Jobs' career, encapsulating the dramatic shift from his early struggles to his later triumphs as Apple's CEO.

• The period between Jobs' departure and return to Apple, known as his "wilderness years," is crucial for understanding his development.
• These years were characterized by failures and learning experiences that eventually led to his success upon his return to Apple.
• The importance of studying failures, as well as successes, is emphasized to gain a full picture of an entrepreneur's journey.

"The vision, understanding, patience, and wisdom that informed Steve's last decade were forged in the trials of those intervening years."

This quote underscores the significance of Jobs' difficult "wilderness years" as the time when he developed the qualities that would later define his successful tenure at Apple.

• Throughout his career, Jobs was a dedicated learner, constantly refining his skills and absorbing knowledge.
• His ability to manage his negative traits and leverage his strengths was a testament to his commitment to personal growth.

"Steve is a great object lesson in someone who masterfully improved his ability to make better use of his strengths and to effectively mitigate those aspects of his personality that got in way of those strengths."

The quote illustrates that Jobs' success was not just due to his innate abilities, but also his conscious effort to improve and adapt over time.

• Steve Jobs' father, Paul, instilled in him the importance of quality and attention to detail from a young age.
• Growing up in Silicon Valley provided Jobs with exposure to cutting-edge technology and the mindset that anything could be built or figured out.

"The implicit promise in all of this was that anything could be figured out. And since anything could be figured out, anything could be built."

This quote captures the foundational belief that Jobs developed early in life, which would later fuel his ambition to create revolutionary products.

• Steve Wozniak and Steve Jobs' partnership and their decision to sell their personal belongings to fund their first computer reflect their entrepreneurial spirit.
• The Apple I was a significant product as it was user-friendly and went against the hobbyist culture of the time by being ready to use upon purchase.
• Jobs' confidence in their product led to their first sale to a local computer store owner, Paul Terrell.

"Understanding of Steve Jobs, and I would argue almost every other person that you and I study on this podcast, he was a free thinker whose ideas would often run against the conventional wisdom of any community in which he operated."

This quote highlights Jobs' tendency to think independently and challenge the status quo, a trait that was instrumental in Apple's early success.

• Jobs' preference was to focus on creating great products rather than being a traditional businessman.
• His approach was to act as the critic, the rebel, and the visionary, which sometimes conflicted with the need to build a sustainable business.

"Steve's natural inclination was to position himself as the critic, the rebel, the visionary, a nimble David against the stodgy Goliath."

The quote reflects Jobs' self-image as an innovator and challenger of established norms, which often put him at odds with conventional business practices.

• Jobs actively sought out and learned from established tech entrepreneurs like Dave Packard, Bob Noyce, and Andy Grove.
• He recognized the value of their experiences in company building and was not shy about reaching out to them for advice and mentorship.

"I met Andy Grove, who was then the CEO of intel when I was 21. I called him up and told him I had heard he was really good at operations and asked if I could take him out to lunch."

This quote exemplifies Jobs' proactive approach to learning from others, showcasing his willingness to seek guidance from industry leaders.

• Edwin Land, the founder of Polaroid, was a significant influence on Jobs and someone he considered a hero.
• Jobs studied Land's career and was inspired by his dedication to innovation and entrepreneurship.

"Basically, I got to know these guys who were all company builders. And the particular scent of Silicon Valley at that time made a very big impression on me."

The quote indicates Jobs' appreciation for the entrepreneurial spirit of Silicon Valley's pioneers, including Edwin Land, and how it shaped his own vision and approach.

• Steve Jobs had a deep admiration for Edwin Land, the founder of Polaroid.
• Jobs appreciated Land's obsessive commitment to product design, practicality, and consumer appeal.
• Jobs resonated with Land's reliance on gut instinct rather than consumer research.
• The restless obsession and invention Land brought to his company inspired Jobs.

"Some were heroes, like Edwin Land. Steve admired many things about Land. His obsessive commitment to creating products of style, practicality, and great consumer appeal. And his reliance on gut instinct rather than consumer research. And the restless obsession and invention he brought to the company he founded."

The quote summarizes the qualities of Edwin Land that Steve Jobs admired and saw as parallel to his own approach to product development and company leadership.

• Jobs believed storytelling is a powerful skill that can be honed.
• Even at 22, Jobs had a remarkable ability for storytelling, as evidenced by a quote from a 1977 New Yorker piece.
• Jobs used analogies and simple explanations to demystify computers for the average person.
• He positioned Apple's products as aspirational, linking them to high-end brands like Rolls-Royce.

"The storyteller is the most powerful person in the world, and storytelling is a skill like anything else and one that you can practice and get better at."

This quote emphasizes the importance Jobs placed on the ability to tell compelling stories, which he saw as a key skill in marketing and leadership.

• Steve Jobs was intensely focused on his work, often at the expense of personal relationships.
• Early in his career, Jobs struggled to build alliances, leading to his eventual ouster from Apple.
• Jobs' lack of allies within Apple was a significant factor in his removal from the company at age 30.

"He wounds up becoming a very close friend of Steve Jobs. He says Steve had this incredible bandwidth, but he devoted almost all of it to work."

The quote describes how Jobs' singular focus on work led to a lack of personal connections within Apple, which contributed to his downfall.

• Bill Gates foresaw the impact of IBM's entry into the personal computer market, which Steve Jobs underestimated.
• Gates predicted the rise of a pure software industry separate from hardware manufacturing.
• Gates' belief in the value of software as a standalone product was a pivotal insight that led to the software industry's growth.

"Gates predicted an entirely new kind of software industry would arise at that point."

The quote captures Gates' vision of a burgeoning software industry, which was a key insight that differentiated him from his contemporaries, including Jobs.

• Jobs faced commercial failures with Apple III, Lisa, and initially with Macintosh.
• During this period, Jobs discovered the potential of the graphics group that would become Pixar.
• Jobs' investment in Pixar eventually made him a billionaire, illustrating the unpredictability of success and failure.

"The Apple II is a massive hit. And that quick success inflated Steve's already gigantic ego."

This quote reflects on how early success with the Apple II led to overconfidence, which contributed to Jobs' later failures and his inability to recognize the significance of IBM's entry into the PC market.

• Jobs experienced a deep depression after being ousted from Apple.
• His failures taught him lessons that would later contribute to his success upon returning to Apple.
• The older and more experienced version of Jobs was far more effective than his younger self.

"At 30 years old, Steve Jobs wasn't ready."

The quote highlights the notion that Jobs' initial failures and shortcomings were part of a larger growth process, leading to his eventual mastery in leadership and innovation.

• Jobs struggled with negotiations, particularly with IBM, due to his pride and emotional complexity.
• His inability to compromise and work as a partner led to the collapse of a critical deal with IBM.
• Jobs' failure to secure the deal with IBM contrasted sharply with his later successful negotiations with Disney for Pixar.

"He killed the IBM deal by failing to follow through as a good business partner."

This quote points out one of Jobs' significant early mistakes, demonstrating how his emotional approach to business dealings could undermine potential opportunities.

• Steve Jobs' time at Pixar was crucial for his growth as a leader and CEO.
• At Pixar, Steve developed two key strengths: resilience in distress and maximizing innovation.
• He learned to forego micromanagement in favor of trusting talented people to succeed.
• Ed Catmull, co-founder of Pixar, was a significant mentor for Steve in management skills.
• The experiences and lessons from Pixar were instrumental for Steve's successful return to Apple.

"At Pixar, he would lay the foundation of two of his greatest strengths. His ability to fight back in times of distress and his ability to make the most of an innovation that put him ahead of anyone else in that field."

This quote highlights the critical skills Steve Jobs honed at Pixar, which later contributed to his success at Apple.

• Ed Catmull had a profound impact on Steve Jobs' understanding of management.
• Catmull's approach to managing creative teams was seen as an art form.
• Brent Schlender, who covered the technology industry, regarded Catmull as the best manager of creative people.
• The partnership between Catmull and Jobs was the longest uninterrupted one in Steve's life.
• Catmull's insights into Steve's behavior suggested it stemmed from a lack of skill rather than malice.

"Ed Catmall, taught Steve Jobs more about management than anyone else in his entire career."

This quote emphasizes the significant role Ed Catmull played in shaping Steve Jobs' managerial approach.

• Steve Jobs invested heavily in Pixar, even as his other company, NeXT, was struggling.
• He believed in the potential of Pixar and its team of geniuses, which included John Lasseter.
• Steve's faith in Pixar and NeXT was vindicated as Pixar made him a billionaire and NeXT facilitated his return to Apple.

"Steve did not know then, but these two bets were all he needed. Pixar is going to make him a billionaire a few years from now. Next gets him back to Apple."

This quote encapsulates the pivotal decisions Steve Jobs made by investing in Pixar and NeXT, which ultimately paid off.

• Steve Jobs exemplified the practice of betting on small, talented teams to achieve great success.
• His trust in the small team at Pixar, including Ed Catmull and John Lasseter, was a testament to this belief.
• The culture and talent at Pixar were key factors in Steve's decision to continue supporting the company.

"Steve actually did it."

This brief quote reinforces the idea that Steve Jobs didn't just believe in the concept of betting on small groups of smart people, he actively practiced it.

• Steve Jobs' approach to negotiations was to keep things simple and focus on key points.
• His negotiation with Bill Gates to secure Microsoft's commitment to the Mac platform was straightforward and effective.
• Jobs' ability to cut through complexity was contrasted with the more complicated approach of his predecessor, Gil Amelio.

"Here are the two things I want, and we got a deal done very, very quickly."

This quote illustrates Steve Jobs' direct and uncomplicated negotiation style that led to successful outcomes.

• Steve Jobs deliberated extensively on whether to return as CEO of Apple.
• His indecisiveness was part of his evolution toward a more nuanced and measured decision-making process.
• A blunt conversation with Andy Grove helped Steve clarify his feelings about Apple and his willingness to lead it again.

"Steve, I don't give a shit about Apple. Just make up your mind."

Andy Grove's frank advice pushed Steve Jobs to introspect and ultimately decide on his return to Apple.

• Steve Jobs viewed building companies as a means to create great products.
• He believed in the importance of a strong company culture and talent to sustain product innovation.
• Jobs' focus was always on the products and working with talented people, not on financial gain.

"The company is one of the most amazing inventions of humans, this abstract construct that's incredibly powerful."

This quote reflects Steve Jobs' admiration for the concept of a company as a vehicle for innovation and collaboration.

• Steve Jobs valued having an outsider to discuss ideas with, someone like Mike Slade who was not formally part of Apple's executive team.
• This practice of engaging with a trusted confidant helped Jobs refine his thoughts and strategies.
• The concept is likened to Charlie Munger's orangutan theory, where explaining ideas to someone impartial can lead to clearer thinking.

"Steve liked having a confidant, someone he could banter with outside the formal lines of responsibility of daily corporate life."

This quote highlights the importance Steve Jobs placed on having an external sounding board for his ideas.

• Steve Jobs was deeply involved in product development, down to the pixel level of detail.
• He balanced his work with family life, ensuring he was home for dinner but also working late into the night.
• His passion for his work allowed him to maintain this balance, treating his work as a hobby.

"There is nothing in that operating system that Steve Jobs did not approve."

This quote underscores the extent of Steve Jobs' involvement in the development of Apple's products, particularly the operating system.

• Steve Jobs and other entrepreneurs like Sam Walton involved their families in their businesses to create work-life harmony.
• This involvement allowed them to spend more time with family while organizing thoughts and gaining implicit trust.
• Jeff Bezos's concept of work-life harmony over work-life balance is echoed in the practices of these entrepreneurs.

"He's like, I don't believe in work-life balance. I believe in work-life harmony."

This quote emphasizes the idea that integrating work and life is more beneficial than trying to balance them as separate entities.

"Sam Walton did this similarly where he had his kids work in Walmart stores from a very, very young age."

The quote highlights how Sam Walton incorporated his family into his business operations, mirroring a practice seen in other successful entrepreneurs.

• Steve Jobs was fascinated with the contact point between a person and a computer.
• He believed that a complicated point of interaction would prevent customers from unlocking the full potential of the device.
• Jobs' focus on the user interface was part of what distinguished him from other computer makers who were more concerned with the internal components.

"Steve was always most fascinated with the contact point between a person and a computer."

This quote indicates Steve Jobs' primary interest in how users interact with technology, which guided his approach to product design.

"If the point at which a person interacted with the machine was complicated, then the customer will likely never unlock its secrets."

This quote explains Jobs' philosophy that the simplicity of interaction is crucial for the user experience and product success.

• Entrepreneurs like Steve Jobs wanted direct control over customer interactions.
• Jobs disliked traditional retail outlets and believed they did not represent Apple's products effectively.
• He pushed for an online store to sell Apple products directly to customers, ensuring a consistent brand experience.

"They do not want people in between them and their customers."

The quote underlines the desire of entrepreneurs like Jobs to have a direct relationship with their customers without intermediaries.

"Steve asked the others in the room about Q's proposal, which is about the basic idea of selling direct to the customers online."

This quote shows Jobs' initiative to innovate in how Apple products were sold, moving towards direct online sales.

• Steve Jobs focused on every aspect of customer interaction to create the "Apple experience."
• He believed that each interaction either added to or subtracted from the company's reputation.
• Jobs worked to eliminate friction and ensure excellence in every customer interaction with Apple.

"Steve had begun calling this the Apple experience."

The quote introduces the concept of a holistic brand experience that Jobs aimed to create for Apple customers.

"Steve understood that every interaction a customer had with Apple could increase or decrease his or her respect for the company."

This quote explains the importance Jobs placed on every touchpoint a customer had with Apple, from product use to customer service.

• Apple's success was not predicted and came as a surprise even to those within the company.
• The company's evolution, including the development of new products like the iPod and the iTunes Store, was a result of accumulated skills and opportunities.
• Steve Jobs emphasized the importance of staying in the game and allowing time to reveal opportunities.

"It is so hard to remember, given Apple's string of hits, that this rise was entirely unexpected and a surprise even to the people who engineered it."

This quote reflects on the unpredictability of Apple's success and the surprise it caused even among its creators.

"One little thing led to another one success, one particular challenge could spur thoughts about another product, or a different iteration of an existing product, or a whole new channel of revenue."

The quote captures the iterative process of innovation and success at Apple, where one achievement led to further developments.

• Steve Jobs did not segregate forward-looking projects into a separate R&D unit.
• Research and innovation happened throughout Apple, often without Jobs' initial knowledge.
• Jobs was adept at synthesizing separate developments into groundbreaking products.

"Steve would check it out, and the information he'd glean would go into the learning machine that was his brain."

This quote describes Jobs' process of absorbing information and innovations within Apple to fuel his creative synthesis.

"This was one of his great talents, the ability to synthesize separate developments and technologies into something previously unimaginable."

The quote highlights Jobs' unique talent for combining disparate ideas and technologies to create revolutionary products.

• Steve Jobs' negotiation skills were exemplified in his dealings with Disney, leading to Pixar's acquisition.
• Jobs' strategy for Pixar's public offering and subsequent negotiations with Disney demonstrated his foresight and business acumen.
• The acquisition by Disney made Jobs the largest single shareholder, a testament to his negotiating prowess.

"Bill Gates was astounded by what Steve had been able to negotiate."

This quote from Bill Gates acknowledges Jobs' exceptional negotiation skills during the Disney-Pixar deal.

"Steve said, let's assume Toy Story is a big success. It was. It wind up grossing over 370,000,000 the first year."

The quote showcases Jobs' strategic thinking and ability to anticipate and leverage future success in negotiations.

• For Steve Jobs and Johnny Ive, success was not measured by financial metrics but by pride in their creations.
• This principle guided their decision-making and product development at Apple.
• Jobs' philosophy on success is a reflection of his values and vision for Apple.

"We both agreed clearly it is not about share price. Is it about the number of computers we sell? No. It all came back to whether we felt really proud of what we collectively had designed and built."

This quote reveals the personal metric Jobs and Ive used to measure their success at Apple, focusing on the quality and impact of their work.