Jun 27 2008
Contrast in Corporate Leadership
Goodbye Mr. Gates and farewell…as you step down from active duty at the behemoth enterprise you named Microsoft (MSFT). Just one thing…will you be missed?
From business, leadership and investment points of view…I don’t think so. The contrast is seen when we examine the impact your counterpart Steve Jobs, at Apple, has on those same issues.
Just a few short weeks ago, Steve Jobs was introducing us to the new 3G iPhone. Not minutes after the demonstration, blogs and editorials were filling up with commentary and concern about what appeared to be a sickly looking CEO.
Not a few days later, enough momentum was built up in the industry regarding the rumors of an ailing CEO, once stricken with a rare form of pancreatic cancer, for the news to negatively affect the share price (AAPL).
I believe it is normal for the health of a CEO as influential and successful as Steve Jobs to affect the value of a company. If the person most directly responsible for a company’s success is no longer around, they cannot continue to lead that company to success. Especially with a company like Apple. Before Steve was brought back as CEO nearly 10 years ago, Apple had a succession of failed Chiefs.
So, the contrast to Mr. Gates is Steve Jobs. Gates is leaving, he left, he’s gone. Stock price…the same. Investors…not worried. Business world cares Bill’s leaving? No, not really.
Why mention this? It sounds like I’m simply honoring Steve Jobs as a leader…but I’m really talking business here…
This brings me back to any possible future value of Microsoft and Apple. You can’t have a leader that leaves a legacy of ambivalence with the business world and have the company they lead last forever. The foundation is shaky..the future is murky…the proof is in the pudding? Microsoft’s share price hasn’t moved much in ages. Meanwhile their market share is steadily being eaten away by Apple and Linux-based solutions. I thought share price was based on the future outlook?
Just as the analysts jumped on board with Apple (AAPL) after they had already showed signs of growth and a promising future. They will too, continue to be the master oracles they are and predict a problem with Microsoft’s future, but only after that future has come and gone.
The dishonest business tactics (see Microsoft’s settlement with the states on Windows price fixing, European Union record fines), faulty product technologies (unreliable, insecure OS) and unfriendly nature of their products…all of this…will lead to an uncertain future for Microsoft (MSFT).
Steve Jobs may not live forever, but the Apple “seeds” he’s been planting for 10 years will most certainly last another 100. Even mediocre leadership can hold all this up for a while…20…30 years? The proof of that claim is in the man that just exited the stage from the other company.
