How Steve Jobs Lost Control of Apple and What Founders Can Learn
Steve Jobs is often remembered as the visionary who co-founded Apple and revolutionized technology with products like the iPhone and the Mac. However, less known is the story of how he lost control of the very company he created, only to return years later to orchestrate one of the greatest turnarounds in business history. This story holds valuable lessons for founders and entrepreneurs today.
The Rise: Apple’s Early Success
In 1976, Steve Jobs and Steve Wozniak founded Apple Computer in Jobs’ garage. Their early success with the Apple I and Apple II computers established the company as a pioneer in personal computing. By the early 1980s, Apple had gone public, making Jobs a multimillionaire at just 25.
However, the launch of the Macintosh in 1984, despite its groundbreaking graphical user interface, was less commercially successful than expected. As the company grew, so did internal conflicts. Jobs’ management style, which was often seen as confrontational and demanding, clashed with other executives and board members.
The Fall: Losing Control
Apple's board, concerned about Jobs’ volatile leadership and the company’s faltering financial performance, recruited John Sculley, a seasoned executive from PepsiCo, as Apple’s CEO in 1983. Initially, Jobs and Sculley worked closely, but tensions arose as Apple's fortunes declined.
In 1985, a power struggle between Jobs and Sculley came to a head. The board sided with Sculley, effectively stripping Jobs of his operational authority. Facing marginalization within his own company, Jobs resigned from Apple and went on to found NeXT and acquire Pixar.
Lessons for Founders
Steve Jobs’ ousting from Apple offers key lessons for today’s founders:
1. Leadership Evolution is Crucial
Jobs’ early leadership style, characterized by intense perfectionism and confrontational tactics, alienated colleagues and board members. Founders must evolve their leadership approach as their company grows. What works for a startup may not work for a scaling business.
2. Building Alliances Matters
Sculley’s ability to win the support of Apple’s board highlights the importance of internal alliances. Founders must build strong relationships with key stakeholders—executives, investors, and board members—to ensure continued influence over their companies.
3. Focus on the Long-Term Vision
Jobs was deeply focused on product innovation, sometimes at the expense of short-term business performance. Balancing visionary goals with sustainable business strategies is critical for founders to maintain credibility with investors and boards.
4. Comebacks Are Possible
Jobs’ story didn’t end with his departure. In 1997, Apple acquired NeXT, bringing Jobs back to the company he founded. His return marked a renaissance for Apple, leading to the creation of the iPod, iPhone, and iPad. Founders should remember that setbacks can be springboards for future success.
5. Protect Your Position, But Stay Humble
Founders often identify closely with their companies, but as businesses grow, governance structures (like boards) can override founders’ wishes. Understanding this dynamic—and staying humble and adaptable—can prevent conflicts that might lead to losing control.
Conclusion
Steve Jobs’ initial loss of control at Apple was a turning point in his career, and it carries timeless lessons for founders. Leadership requires not just vision and innovation, but also the ability to build alliances, adapt to growth, and balance creativity with sound business judgment. By learning from Jobs’ story, today’s founders can better navigate the complexities of scaling a company—and perhaps, like Jobs, engineer their own remarkable comeback.