158 Questions
What did Jobs do to the general managers of all the business units in his first year as CEO?
Laid them off in a single day
What is unique about Apple's organizational structure?
It has a functional structure despite its large size
What is the role of senior vice presidents in Apple's organizational structure?
They are in charge of functions, not products
What is the benefit of a multidivisional structure, according to business history and organizational theory?
It enables accountability and control in large companies
What is the primary purpose of Apple, according to the text?
To enrich people's daily lives through products
What is an example of Apple's commitment to continuous innovation?
The improvements in iPhone camera technology
What is the fundamental belief underlying Apple's organizational structure?
That decision rights should be given to those with the most expertise
Why has Apple retained its functional structure, despite its large size?
Because it promotes innovation and adaptability
What is a characteristic of Apple's organizational structure that enables it to succeed in rapidly changing environments?
Its functional structure
What is a significant change that Apple has made to its organizational structure in recent years?
The creation of a separate division for artificial intelligence
What is a key principle that guides Apple's organizational structure?
Ensure experts lead experts in each area of specialization
What is Roger Rosner's role at Apple?
Head of Apple's software application business
Why does Apple's organizational structure help facilitate knowledge sharing and innovation?
Because it creates a deep bench of experts in each area
What is the philosophy behind Apple's approach to management?
Experts should lead experts in each area of specialization
Why is it essential for Apple's leaders to know the details of their organization three levels down?
To ensure effective cross-functional decision-making
What is a notable characteristic of Apple's senior leaders?
They pay extreme attention to product details
What is the term used to describe the shape of Apple's product corners?
Squircle
What is the advantage of Apple's product design approach?
It produces softer highlights with less abrupt changes in curvature
What is an example of an area where Apple has a deep bench of experts?
Camera hardware technology
Why is Steve Jobs' quote about managers and individual contributors significant?
It suggests that great individual contributors make the best managers
What was the structure of Apple when Steve Jobs returned in 1997?
Divided into business units, each with its own P&L responsibilities
What was the primary reason for Steve Jobs' decision to lay off general managers in 1997?
To promote innovation and eliminate conventional management
What was the outcome of Steve Jobs' restructuring of Apple in 1997?
The entire company was put under one P&L
How has Apple's size changed since 1997?
It has grown by nearly 40 times
What was a common issue among the general managers of the business units before 1997?
They fought with each other over transfer prices
What is Apple well-known for besides its organizational design?
Its innovations in hardware, software, and services
What must a company do before getting market feedback and forecasts?
Make bets about technologies and designs
What is the primary goal of discussing Apple's organizational model in this article?
To explore the potential benefits of Apple's model for other companies
How many employees did Apple have in 1997?
Some 8,000 employees
Why does Apple's commitment to offering the best products not get undercut?
Because of the bonuses of senior R&D executives being based on companywide performance
What is true about the role of the finance team in Apple's product development process?
They are not involved in product road map meetings
What is the role of individual and team reputations in a functional organization?
They act as a control mechanism for placing bets
What was significant about the introduction of the dual-lens camera in the iPhone 7 Plus?
It was a high-risk bet for the team that developed it
What is the fundamental principle of a functional organization?
To align expertise and decision rights
What is expected of managers at Apple?
To possess deep expertise in their areas
How does Apple approach making bets on new technologies and features?
By relying on technical experts to make decisions
What is the relationship between structure and strategy at Apple?
Structure follows strategy
What is unique about Apple's leadership model?
It is based on expertise in specific areas
What is a key characteristic of Apple's operations leaders?
They are experts in their areas and can focus on details
What is the benefit of having leaders who are experts in their areas?
They can provide better guidance and mentoring
How does Apple develop and ship products that require collaboration across many specialist teams?
Through collaborative debate and cross-functional collaboration
What is the role of higher-level managers in resolving debates?
They act as tiebreakers when debates reach an impasse
Why is it important for leaders at Apple to be effective collaborators?
Because horizontal dependencies mean that ineffective peer relationships can undermine projects
What is expected of leaders at Apple in terms of expressing their points of view?
They must hold strong, well-grounded views and advocate forcefully for them
What is the purpose of the camera team at Apple?
To help people take better images more of the time
What was the idea behind developing the iPhone's portrait mode?
To allow people to take photos with bokeh
How many specialist teams were required to develop the dual-lens camera with portrait mode?
40 specialist teams
What is the result of Apple's fanatical attention to detail at the leadership level?
High-quality products with advanced features
What happens when teams work with a shared purpose?
Good mess
What happens to those who engage in 'bad mess' and don't change their behavior?
They are removed from leadership positions
What challenge does Apple face as its revenue and headcount have grown?
Preserving functional structure and leadership model
How has Apple adjusted its organizational structure in recent years?
By dividing the hardware function into hardware engineering and hardware technologies
Why has Apple limited the number of senior positions?
To minimize the number of leaders involved in cross-functional activities
What is the result of Apple's growth on its senior leaders?
They head larger and more diverse teams of experts
What is the discretionary leadership model intended to address?
The challenge of getting this leadership approach to drive innovation across the company
What is a key aspect of the discretionary leadership model?
Leaders must exercise greater discretion regarding where and how they spend their time
What challenge has Rosner, the VP of applications, faced?
The size of his function has exploded in terms of head count and projects
How has Apple's organizational growth affected its VPs and directors?
The number of VPs has approximately doubled
What was one of the challenges the camera team faced in developing the portrait mode feature?
Distinguishing between the central object and the background
Why did Sebastien Marineau-Mes decide to defer the release of the portrait mode feature?
To give the team more time to address 'corner cases'
What was the engineering standard that the camera team was trying to meet?
Zero artifacts
What was the role of the design leaders in the development of the portrait mode feature?
To bring an artistic sensibility to the debate
What was the outcome of the collaboration between the camera team and the human interface (HI) design team?
A feature to preview a portrait photo with a blurred background
What was the role of Johnnie Manzari in the development of the portrait mode feature?
To give a demo of the live preview feature
What was the outcome of the months of engineering effort by the video engineering team?
A way to preview a portrait photo with a blurred background
What was central to Apple's marketing of the iPhone 7 Plus?
The portrait mode feature
What is an example of Apple's collaborative debate in action?
The development of the portrait mode feature
What is 'accountability without control' in the context of Apple's organizational structure?
When a manager is accountable for a project but doesn't control the teams involved
What is the primary area of expertise of Rosner?
Software applications
What has Rosner moved from his 'owning box' to his 'teaching box'?
Traditional productivity apps
What is the primary challenge that Rosner faced with the addition of new activities?
Acquiring new skills and expertise
How does Rosner approach leadership in areas where he is not an expert?
By adopting a beginner's mindset and questioning subordinates
What is the primary reason why Apple's VPs spend most of their time in the 'owning' and 'learning' boxes?
Because they need to acquire new skills and expertise
What is the primary benefit of the discretionary leadership model?
It aligns expertise and decision rights
What percentage of his time does Rosner estimate he spends on activities he owns?
40%
What is the primary reason why Rosner has delegated some areas to people with the requisite capabilities?
Because he is not an expert in those areas
What is the primary way that Rosner guides and gives feedback to other team members?
By offering strong and passionate critiques of their work
What is the primary way that Rosner has adapted to the expansion of his responsibilities?
By moving tasks from his 'owning box' to his 'teaching box'
What was the structure of Apple when Steve Jobs returned in 1997?
A decentralized structure with multiple business units
What was the primary reason for Steve Jobs' decision to lay off general managers in 1997?
To centralize decision-making and innovation
What has contributed to Apple's innovation success?
Its functional organization and associated leadership model
What is the reasoning behind Apple's approach to management?
Because world-class talent wants to work with other world-class talent
How has Apple's size changed since 1997?
It has increased by 40 times
What is the benefit of having experts lead experts in a functional organization?
It creates a deep bench of specialists who can learn from one another
What is a key principle that guides Apple's organizational structure?
Leaders should know the details of their organization three levels down
What is a common issue among the general managers of the business units before 1997?
They fought with one another over transfer prices
What is unique about Apple's product design approach?
It uses continuous curves, resulting in a 'squircle' shape
What is the advantage of Apple's product design approach?
It produces softer highlights
What is the primary reason for Apple's retention of a functional structure?
To facilitate innovation and adapt to rapid technological change
What is the role of Tim Cook in Apple's organizational structure?
The only position where design, engineering, operations, marketing, and retail meet
What is an example of Apple's continuous innovation in its products?
The introduction of the dual-lens camera
What is the advantage of having a functional organization, according to Apple's experience?
It facilitates innovation and adapt to rapid technological change
What is the primary goal of Apple, according to the text?
To enrich people's daily lives
What is the main reason for Apple's success in making bets on new technologies and designs?
Relying on technical experts rather than general managers
How are bonuses of senior R&D executives at Apple determined?
Based on companywide performance numbers
What is the role of individual and team reputations in a functional organization like Apple's?
As a control mechanism in placing bets
What is the fundamental principle of a functional organization like Apple's?
To align expertise and decision rights
What characteristic of Apple's leaders enables them to make balanced decisions between costs and user experience?
Deep expertise in their areas
What is a characteristic of Apple's operations leaders?
They are experts in their areas and can delve deep into details.
What is the purpose of collaborative debate at Apple?
To facilitate cross-functional collaboration and coordination.
What is the significance of the development of the iPhone's portrait mode?
It highlights the importance of collaboration among specialist teams.
Why is it important for leaders at Apple to be effective collaborators?
To facilitate coordination and collaboration among specialist teams.
What is the result of Apple's fanatical attention to detail at the leadership level?
High-quality products that meet customer needs.
What has expanded in Rosner's portfolio over the past 10 years?
Multiple applications, including News, Clips, Books, and Final Cut Pro
What does Rosner do in the 'teaching box'?
Guides and gives feedback to other team members
What is the percentage of time Rosner spends on activities he owns?
About 40%
What is the 'learning box' for Rosner?
Where he learns about new areas beyond his expertise
What is the benefit of the 'discretionary leadership model'?
It enables leaders to take on new responsibilities outside their original expertise
What is the result of teams working with a shared purpose at Apple?
Good mess
What is the primary challenge posed by Apple's growth?
Pressure on senior leaders
What is the purpose of Apple's new educational program for VPs and directors?
To address the challenge of driving innovation at scale
What is required of Apple's senior leaders in terms of their time and effort?
To exercise discretion regarding where and how they spend their time and efforts
What is the outcome for those who engage in 'bad mess' and don't change their behavior?
They are removed from leadership positions
What was the main challenge faced by the camera team when developing the portrait mode feature?
Distinguishing between the central object and the background
What was the motivation behind deferring the release of the portrait mode feature?
To ensure the feature met Apple's strict engineering standards
What did the design leaders bring to the debate about the portrait mode feature?
An artistic sensibility to the debate
What was the outcome of the collaboration between the camera team and the HI team?
The ability to preview a portrait photo with a blurred background
What is the term used to describe Apple's approach to project management, where leaders are accountable for the project's success but do not control all the teams involved?
Accountability without control
What was the primary motivation behind Steve Jobs' decision to lay off the general managers of all the business units in 1997?
To eliminate the internal competition among business units
What is the consequence of having a functional organizational structure like Apple's?
Improved knowledge sharing and innovation
What has been the outcome of Apple's organizational structure and leadership model?
Rapid growth and increased revenue
What is a key characteristic of Apple's approach to management?
A commitment to continuous innovation and learning
What has been the impact of Steve Jobs' return to Apple in 1997?
A significant increase in revenue and employee count
What is the primary reason behind Apple's commitment to a functional organizational structure?
To facilitate knowledge sharing and innovation across different domains.
What is a key characteristic of Apple's leaders that enables the company to succeed in rapidly changing environments?
Their deep knowledge of specific technologies and domains.
What is a benefit of Apple's functional organizational structure in terms of innovation?
It allows those with the most expertise and experience to make decisions in their domains.
What is a consequence of Apple's decision to retain its functional organizational structure despite its large size?
The company is able to retain its entrepreneurial spirit and focus on innovation.
What is a principle that guides Apple's approach to organizational design?
Those with the most experience in a domain should have decision rights.
What is the implication of having leaders who are experts in their areas at Apple?
They can push, probe, and 'smell' an issue, knowing which details are important and where to focus their attention.
What is the role of higher-level managers in resolving debates at Apple?
They weigh in as tiebreakers when debates reach an impasse.
What is the benefit of collaborative debate at Apple?
It enables the company to develop and ship products that require coordination across many specialist teams.
What is the result of Apple's fanatical attention to detail at the leadership level?
The development of high-quality products that meet customer needs.
What is the benefit of having a shared purpose at Apple?
It shapes and resolves debates among teams.
What is the primary reason why Apple's senior R&D executives are not involved in pricing decisions?
To avoid short-term financial pressures on product decisions
What is the primary mechanism by which Apple's leaders are held accountable for their decisions?
The reputation of themselves and their teams within the organization
What is the primary benefit of having leaders who are experts in their areas?
They are able to make decisions that balance cost considerations with user experience
What is the primary goal of Apple's approach to making bets on new technologies and features?
To create a competitive advantage through innovation
What is the primary principle that guides Apple's approach to decision-making?
The alignment of expertise and decision rights
What is the primary reason why the camera team had to defer the release of the portrait mode feature?
The team was unable to address failure cases, such as the 'chicken wire case'
What was the outcome of the meeting between the engineering teams and senior design and marketing leaders?
The teams came up with a new standard for portrait photography
What was the role of the human interface (HI) design team in the development of the portrait mode feature?
They pushed for a live preview of the feature before taking a photo
What was the result of the collaboration between the camera hardware team and the video engineering team?
They found a way to provide a live preview of the portrait mode feature
What is the term used to describe the concept of being accountable for a project's success without having control over all the teams involved?
Accountability without control
What is the primary benefit of Apple's functional organizational structure?
Preservation of collective expertise
Why does Apple's leadership insist on continuous curves in product design?
To produce softer highlights and more aesthetically pleasing products
What is the primary role of senior leaders in Apple's organizational structure?
To provide expert guidance and oversight in their areas of specialization
What is the fundamental principle underlying Apple's approach to management?
That leaders should be experts in their area of management
What is the result of Apple's leaders knowing the details of their organization three levels down?
Speedy and effective cross-functional decision-making
What is the primary challenge that Rosner faces as he takes on new responsibilities beyond his original expertise?
Learning about new areas, such as publishing news content
What is the term used to describe the areas where Rosner guides and gives feedback to other team members?
Teaching box
What is the approximate percentage of time Rosner spends on activities he owns, including collaboration with others?
40%
What is the primary purpose of the discretionary leadership model?
To align expertise and decision rights
What is the characteristic of Apple's senior leaders that enables them to succeed in rapidly changing environments?
They can adapt their role to new responsibilities
What is the main challenge posed by Apple's growth in terms of its functional structure and leadership model?
Deciding how to organize areas of expertise to best enable collaboration and rapid decision-making
What is the primary goal of the discretionary leadership model at Apple?
To enable leaders to exercise greater discretion regarding where and how they spend their time and efforts
What is the result of Apple's leaders needing to exercise greater discretion regarding where and how they spend their time and efforts?
They need to decide which activities demand their full attention to detail and delegate others to their team members
What is the relationship between Apple's growth and the number of VPs and directors?
The number of VPs and directors has approximately doubled as Apple's revenue has grown more than eightfold
What is the outcome of Apple's leaders being able to exercise greater discretion regarding where and how they spend their time and efforts?
Innovation is driven in all areas of the company, not just product development
Study Notes
Apple's Organizational Structure
- In 1997, Steve Jobs returned to Apple and transformed the company's organizational structure from a conventional business unit structure to a functional organization.
- He laid off general managers of all business units, put the entire company under one P&L, and combined functional departments into one functional organization.
- Apple still retains this structure today, despite being 40 times larger in revenue and more complex than in 1997.
Functional Organization
- In a functional organization, senior vice presidents are in charge of functions, not products.
- The CEO, Tim Cook, is the only person who oversees all functions, including design, engineering, operations, marketing, and retail.
- There are no conventional general managers who control an entire process from product development to sales.
Innovation Benefits
- Apple's functional organization allows for innovation through a structure centered on functional expertise.
- The company relies on the judgment and intuition of people with deep knowledge of technologies responsible for disruption.
- Technical experts, rather than general managers, make decisions, increasing the odds of successful bets.
Leadership Characteristics
- Apple's managers are expected to possess three key leadership characteristics:
- Deep expertise in their area, allowing them to engage in all work within their function.
- Immersion in the details of their function, with knowledge of the details three levels down.
- Willingness to collaboratively debate other functions during collective decision-making.
Examples of Leadership Characteristics
- Roger Rosner, head of Apple's software application business, is an example of an expert leading experts.
- Graham Townsend, a camera expert, leads a group of over 600 camera hardware technology experts.
- Leaders at Apple are expected to have deep knowledge of their area and be able to debate and decide on key issues.
Collaborative Debate
- Apple's functional organization requires collaborative debate among teams.
- When debates reach an impasse, higher-level managers weigh in as tiebreakers.
- Leaders must be able to express their views and advocate for them, but also be willing to change their minds when presented with evidence.
Development of iPhone's Portrait Mode
-
The development of the iPhone's portrait mode illustrates the fanatical attention to detail, intense collaborative debate, and the power of a shared purpose to shape and resolve debates.
-
The camera team's stated purpose was to enable "more people taking better images more of the time."### Apple's Collaborative Culture
-
Apple's camera hardware team successfully developed Portrait mode, a key feature of the iPhone 7 Plus, through collaborative debate and open-mindedness from senior leaders.
-
The project involved people from various functions, including the video engineering team, who contributed their time and effort to achieve the goal.
Leadership at Scale
- Apple's leadership model involves accountability without control, where leaders are responsible for making a project succeed despite not controlling all the teams involved.
- The company's functional structure and leadership model have evolved to accommodate growth and new markets, with adjustments made to enable collaboration and rapid decision-making.
- The CEO has implemented changes, including dividing the hardware function and adding artificial intelligence and machine learning as a functional area.
Challenges of Organizational Growth
- As Apple has grown, its senior leaders face the challenge of overseeing larger and more diverse teams of experts, with more details to oversee and new areas of responsibility outside their core expertise.
- The number of VPs has approximately doubled from 50 to 96, while the number of employees has grown from 17,000 to 137,000.
- In response, Apple has developed the discretionary leadership model, which involves experts leading experts, immersion in details, and collaborative debate.
The Discretionary Leadership Model
- The model involves leaders exercising discretion regarding where and how they spend their time and efforts, focusing on activities that create the most value for Apple.
- Leaders must decide which activities demand their full attention to detail (owning box), which require learning new areas of expertise (learning box), which can be taught to others (teaching box), and which can be delegated (delegating box).
- The model preserves the principle of aligning expertise and decision rights, allowing Apple to effectively move into new areas and teams to grow in size.
Examples of Discretionary Leadership
- VP of Applications, Rosner, has adapted his role to contend with the challenges of Apple's growth, moving some responsibilities from his owning box to his teaching box.
- Rosner has also learned new areas of expertise, such as publishing news content via an app, and has delegated some areas, like iMovie and GarageBand, to others.
- He estimates that he spends about 40% of his time on activities he owns, 30% on learning, 15% on teaching, and 15% on delegating.
Apple's Unique Functional Organization
- Apple's functional organization is rare among large companies, flying in the face of prevailing management theory that advocates for divisional structures and business units.
- The company believes that its functional organization will continue to drive innovation and prosperity by aligning expertise and decision rights.
Apple's Organizational Structure
- In 1997, Steve Jobs returned to Apple and transformed the company's organizational structure from a conventional business unit structure to a functional organization.
- He laid off general managers of all business units, put the entire company under one P&L, and combined functional departments into one functional organization.
- Apple still retains this structure today, despite being 40 times larger in revenue and more complex than in 1997.
Functional Organization
- In a functional organization, senior vice presidents are in charge of functions, not products.
- The CEO, Tim Cook, is the only person who oversees all functions, including design, engineering, operations, marketing, and retail.
- There are no conventional general managers who control an entire process from product development to sales.
Innovation Benefits
- Apple's functional organization allows for innovation through a structure centered on functional expertise.
- The company relies on the judgment and intuition of people with deep knowledge of technologies responsible for disruption.
- Technical experts, rather than general managers, make decisions, increasing the odds of successful bets.
Leadership Characteristics
- Apple's managers are expected to possess three key leadership characteristics:
- Deep expertise in their area, allowing them to engage in all work within their function.
- Immersion in the details of their function, with knowledge of the details three levels down.
- Willingness to collaboratively debate other functions during collective decision-making.
Examples of Leadership Characteristics
- Roger Rosner, head of Apple's software application business, is an example of an expert leading experts.
- Graham Townsend, a camera expert, leads a group of over 600 camera hardware technology experts.
- Leaders at Apple are expected to have deep knowledge of their area and be able to debate and decide on key issues.
Collaborative Debate
- Apple's functional organization requires collaborative debate among teams.
- When debates reach an impasse, higher-level managers weigh in as tiebreakers.
- Leaders must be able to express their views and advocate for them, but also be willing to change their minds when presented with evidence.
Development of iPhone's Portrait Mode
-
The development of the iPhone's portrait mode illustrates the fanatical attention to detail, intense collaborative debate, and the power of a shared purpose to shape and resolve debates.
-
The camera team's stated purpose was to enable "more people taking better images more of the time."### Apple's Collaborative Culture
-
Apple's camera hardware team successfully developed Portrait mode, a key feature of the iPhone 7 Plus, through collaborative debate and open-mindedness from senior leaders.
-
The project involved people from various functions, including the video engineering team, who contributed their time and effort to achieve the goal.
Leadership at Scale
- Apple's leadership model involves accountability without control, where leaders are responsible for making a project succeed despite not controlling all the teams involved.
- The company's functional structure and leadership model have evolved to accommodate growth and new markets, with adjustments made to enable collaboration and rapid decision-making.
- The CEO has implemented changes, including dividing the hardware function and adding artificial intelligence and machine learning as a functional area.
Challenges of Organizational Growth
- As Apple has grown, its senior leaders face the challenge of overseeing larger and more diverse teams of experts, with more details to oversee and new areas of responsibility outside their core expertise.
- The number of VPs has approximately doubled from 50 to 96, while the number of employees has grown from 17,000 to 137,000.
- In response, Apple has developed the discretionary leadership model, which involves experts leading experts, immersion in details, and collaborative debate.
The Discretionary Leadership Model
- The model involves leaders exercising discretion regarding where and how they spend their time and efforts, focusing on activities that create the most value for Apple.
- Leaders must decide which activities demand their full attention to detail (owning box), which require learning new areas of expertise (learning box), which can be taught to others (teaching box), and which can be delegated (delegating box).
- The model preserves the principle of aligning expertise and decision rights, allowing Apple to effectively move into new areas and teams to grow in size.
Examples of Discretionary Leadership
- VP of Applications, Rosner, has adapted his role to contend with the challenges of Apple's growth, moving some responsibilities from his owning box to his teaching box.
- Rosner has also learned new areas of expertise, such as publishing news content via an app, and has delegated some areas, like iMovie and GarageBand, to others.
- He estimates that he spends about 40% of his time on activities he owns, 30% on learning, 15% on teaching, and 15% on delegating.
Apple's Unique Functional Organization
- Apple's functional organization is rare among large companies, flying in the face of prevailing management theory that advocates for divisional structures and business units.
- The company believes that its functional organization will continue to drive innovation and prosperity by aligning expertise and decision rights.
Apple's Organizational Structure
- In 1997, Steve Jobs returned to Apple and transformed the company's organizational structure from a conventional business unit structure to a functional organization.
- He laid off general managers of all business units, put the entire company under one P&L, and combined functional departments into one functional organization.
- Apple still retains this structure today, despite being 40 times larger in revenue and more complex than in 1997.
Functional Organization
- In a functional organization, senior vice presidents are in charge of functions, not products.
- The CEO, Tim Cook, is the only person who oversees all functions, including design, engineering, operations, marketing, and retail.
- There are no conventional general managers who control an entire process from product development to sales.
Innovation Benefits
- Apple's functional organization allows for innovation through a structure centered on functional expertise.
- The company relies on the judgment and intuition of people with deep knowledge of technologies responsible for disruption.
- Technical experts, rather than general managers, make decisions, increasing the odds of successful bets.
Leadership Characteristics
- Apple's managers are expected to possess three key leadership characteristics:
- Deep expertise in their area, allowing them to engage in all work within their function.
- Immersion in the details of their function, with knowledge of the details three levels down.
- Willingness to collaboratively debate other functions during collective decision-making.
Examples of Leadership Characteristics
- Roger Rosner, head of Apple's software application business, is an example of an expert leading experts.
- Graham Townsend, a camera expert, leads a group of over 600 camera hardware technology experts.
- Leaders at Apple are expected to have deep knowledge of their area and be able to debate and decide on key issues.
Collaborative Debate
- Apple's functional organization requires collaborative debate among teams.
- When debates reach an impasse, higher-level managers weigh in as tiebreakers.
- Leaders must be able to express their views and advocate for them, but also be willing to change their minds when presented with evidence.
Development of iPhone's Portrait Mode
-
The development of the iPhone's portrait mode illustrates the fanatical attention to detail, intense collaborative debate, and the power of a shared purpose to shape and resolve debates.
-
The camera team's stated purpose was to enable "more people taking better images more of the time."### Apple's Collaborative Culture
-
Apple's camera hardware team successfully developed Portrait mode, a key feature of the iPhone 7 Plus, through collaborative debate and open-mindedness from senior leaders.
-
The project involved people from various functions, including the video engineering team, who contributed their time and effort to achieve the goal.
Leadership at Scale
- Apple's leadership model involves accountability without control, where leaders are responsible for making a project succeed despite not controlling all the teams involved.
- The company's functional structure and leadership model have evolved to accommodate growth and new markets, with adjustments made to enable collaboration and rapid decision-making.
- The CEO has implemented changes, including dividing the hardware function and adding artificial intelligence and machine learning as a functional area.
Challenges of Organizational Growth
- As Apple has grown, its senior leaders face the challenge of overseeing larger and more diverse teams of experts, with more details to oversee and new areas of responsibility outside their core expertise.
- The number of VPs has approximately doubled from 50 to 96, while the number of employees has grown from 17,000 to 137,000.
- In response, Apple has developed the discretionary leadership model, which involves experts leading experts, immersion in details, and collaborative debate.
The Discretionary Leadership Model
- The model involves leaders exercising discretion regarding where and how they spend their time and efforts, focusing on activities that create the most value for Apple.
- Leaders must decide which activities demand their full attention to detail (owning box), which require learning new areas of expertise (learning box), which can be taught to others (teaching box), and which can be delegated (delegating box).
- The model preserves the principle of aligning expertise and decision rights, allowing Apple to effectively move into new areas and teams to grow in size.
Examples of Discretionary Leadership
- VP of Applications, Rosner, has adapted his role to contend with the challenges of Apple's growth, moving some responsibilities from his owning box to his teaching box.
- Rosner has also learned new areas of expertise, such as publishing news content via an app, and has delegated some areas, like iMovie and GarageBand, to others.
- He estimates that he spends about 40% of his time on activities he owns, 30% on learning, 15% on teaching, and 15% on delegating.
Apple's Unique Functional Organization
- Apple's functional organization is rare among large companies, flying in the face of prevailing management theory that advocates for divisional structures and business units.
- The company believes that its functional organization will continue to drive innovation and prosperity by aligning expertise and decision rights.
Learn about Steve Jobs' bold move to restructure Apple's management in 1997, eliminating general managers and introducing a functional organization. Test your knowledge of this pivotal moment in Apple's history.
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