Steve Jobs Health Scare, The Sequel

We had a sense of déjà vu this week with the announcement that Apple CEO Steve Jobs is taking a medical leave of absence.

            This is the second time he has taken time off for health issues. The first time, in January 2009, it was attributed to a “hormone imbalance.”  Later, we learned that, in fact, Jobs had received a liver transplant. Some hormone imbalance! And that was five years after he had overcome pancreatic cancer.

            Apple spokespeople are mum on the reasons behind Jobs’ temporary departure this time, saying it’s a private matter. We can assume that, based on his history of pancreatic cancer and liver transplant—neither of which is a small matter—he’s not doing well. Otherwise, why take another leave of absence? Why not cut back on the office hours, if he’s just feeling out of sorts?

            Steve Jobs is not just a CEO. He is Apple’s founding genius and Zen master. He is the heart and soul of Apple, and its primary generator of new ideas. He is the motivator-in-chief. Steve Jobs is Apple.

            Apple’s able #2, COO Tim Cook, will assume temporary duties in Jobs’ stead. Cook is a good man, talented, and certainly a strong operational guy. But he’s no substitute for Jobs.

            The first entry in this blog, “Steve Jobs and the CEO Succession Issue,” on July 23, 2008, was on this very topic. Six months after that posting came the leave of absence that would lead to the liver transplant.

            The CEO succession question persists. What amazes me is that, even with the knowledge of Jobs’ true condition the first time, Apple’s Board of Directors has continued to let this question slide. Two years later, Apple still has no CEO succession plan. Even if he returns after this latest health crisis, the Board should assume that Jobs is nearing the end of his tenure and a suitable successor must be identified.

            This latest news created an email discussion between a friend and myself. My friend asked, what would happen to the company if Jobs doesn’t come back this time? Put another way, what is Apple with Steve Jobs? Apple without Steve Jobs would be like the Declaration of Independence without Thomas Jefferson.

            His value to Apple is multifaceted. He’s one of the most creative people in American executive suites today. This inspirational genius has an uncanny ability to get the best out of his people, to drive them to desire the same perfection he does. He serves as the guiding beacon for Apple’s thousands of worldwide employees, setting towering standards for quality and excellence in product development, manufacturing, packaging and marketing.

            Under his direction and inspiration, the past decade has seen Apple invent new categories and reinvent old ones. Meanwhile, competitors have played catch-up while essentially copying Apple’s latest forays.

            Think of all the echoes of Apple’s output: iPod (Microsoft Zune), Apple Store (Sony Style), iPhone (Motorola Droid, etc.), and iPad (Samsung Galaxy Tab, etc.).

            In response, while they worked on their next blockbuster, Apple and Jobs stayed a few steps ahead of the copycats by playing defense, a defense that consisted largely of improving existing products and expanding their capabilities.

            In essence, that is Jobs’ genius: identifying the new niches and creating products that blow the doors off (iMac, iPod, iTunes, Apple Store, iPad, and App Store), and then making them better year over year. (By the way, rumor has it that the second iteration of the iPad, due this spring, is heads and shoulders above the original.)

            But without Jobs’ physical presence and his ideas, drive and constant motivational push, where will the next Apple blockbuster come from? Are there any Steve Jobs clones at Infinity Loop? Not likely. As I said, Tim Cook is capable and congenial. But he’s no Steve Jobs.

            We’ve seen this movie before, when then-CEO John Sculley fired Jobs in 1985. Apple foundered and lost its core identity. Many key employees got discouraged and left. It went through a series of lackluster CEOs. Then, in late 1996, it acquired Steve Jobs’ new company, NeXT, which brought him back into the fold. His return reinvigorated the company, its culture, brand and, especially, stock price.

            Without Steve Jobs, Apple will become just another Silicon Valley company. It will continue to pump out new, improved iterations of old products. Momentum will sustain the Apple aura for a few years. But then, without another smash hit, Apple will slowly slip into the standard corporate routine of protecting its copyrights and patents while managing profit margins.

            I hope I’m wrong. I sincerely wish for Steve Jobs’ return to Apple at full strength, in good health. I’m eagerly awaiting Apple’s next blockbuster, whatever it may be.