why visionary ceos never have visionary successors

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  • WHY VISIONARY CEOSNEVER HAVE VISIONARY

    SUCCESSORS

  • Steve BlankSilicon Valley serial-entrepreneur and academician

    The Author

    The full article is available at Harvard Business Review

  • Technology commercialization managerExploit Technologies Pte Ltd (ETPL)Agency for Science, Technology and Research (A*STAR, Singapore)

    B. Eng & Ph.d (Engineering)Nanyang Technological University Singapore

    M.B.A.INSEADFontainebleau, France

    Presentation by

    LI Wei

    https://sg.linkedin.com/in/wei-li-77363526https://www.facebook.com/InnoDiary-1139832549408297/

  • Microsoft entered the 21st century as thedominant software provider for computing devices

  • 16 years later, that dominance is looking threadbare

  • Apple, the dominant tech firm for the mobile era, is at risk of making

    THE SAME MISTAKES

  • Microsoft

  • STEVE BALLMER

  • If you think the job of a CEO is

  • Ballmer did aSPECTACULAR Job

  • In 14 years, he tripled Microsofts sales to

    x3 $78 BILLION

  • But if the purpose of the company is itsLONG-TERM SURVIVAL

  • FAILUREHe was a

  • SHORT-TERM GAINS LONG-TERM OPPORTUNITIES

    VS

  • HE MISSED

    5MOST IMPORTANT TECHNOLOGY TRENDS

  • HE MISSED

    5MOST IMPORTANT TECHNOLOGY TRENDS Search EngineLOSING TO GOOGLE1

  • HE MISSED

    5MOST IMPORTANT TECHNOLOGY TRENDS Smart PhonesLOSING TO APPLE2

  • HE MISSED

    5MOST IMPORTANT TECHNOLOGY TRENDS Mobile Operating Systems LOSING TO GOOGLE/APPLE3

  • HE MISSED

    5MOST IMPORTANT TECHNOLOGY TRENDS MediaLOSING TO APPLE/NETFLIX4

  • HE MISSED

    5MOST IMPORTANT TECHNOLOGY TRENDS CloudLOSING TO AMAZON5

  • A very smart CEO missed ALL of these?

  • It wasnt that Microsoft didnt have smart engineers and those projects

  • The problem was that Ballmer organized the

    company around execution of its

    current strengths

    Windows & OfficeBusinesses

  • Projects not directly related to those activities never got seriousRESOURCE OR ATTENTION

  • Apple

  • TIM COOK

  • One of the strengths ofvisionary CEOs is that they build

    WORLD-CLASS OPERATING EXECUTIVES

  • but they unconsciously force out WORLD-CLASS INNOVATORS

  • STEVE JOBS PUT STRONG OPERATING EXECUTIVES TO

    TRANSLATED HIS VISION INTO PLANS, PROCESS AND PROCEDURES

  • When visionary founders depart

  • When visionary founders depart

    The operating executives start to run the company

  • When visionary founders depart

    The operating executives start to run the company

    With the blessing of the ex-CEO

  • They get rid of

    HAOS

  • They value

    STABILITY / PROCESS / REPEATABLE EXECUTION

  • It often starts a

    CREATIVE DEATH

  • Creative people start to leave,

  • Creative people start to leave, and other executors are put into more senior roles

  • They hire more process people, which in turn forces out the remaining creative talent

  • By 2016, Tim Cook has doubled Apples revenues to

    $200 billion

  • Yet in 2011, 2012, 2013, 2014, 2015, 2016

    The iPhone continues its4S 5 5S 5C 6 6 plus 6s 6s plus 7 7 plus

    INCREMENTAL IMPROVEMENTS

  • Yet in 2011, 2012, 2013, 2014, 2015, 2016

  • APPLEDISRUPT BUT THE WORLD IS ABOUT TO

    in the same way that Microsoft was disrupted under Ballmer

  • APPLE BRILLIANTLY MASTERED PRODUCT DESIGN TO POWER THE IPHONE TO DOMINANCE

  • But Google and Amazon are betting that the next of wave will be AI-DIRECTED

    SERVICES

  • Its not that Apple doesnt have exciting things going on in their labs

  • The problem is

  • A SUPPLY CHAIN CEO

  • A SUPPLY CHAIN CEOwho lacks a passion for products and has yet to

    articulate a personal vision of Apple

  • Without that

  • TO BRING THOSE INNOVATIONS TO MARKET ILL-EQUIPPEDHe is

  • To conclude

  • Steve Jobs and Bill Gates shared the

    SAME BLIND SPOT

  • They suggested

    EXECUTIONEXECUTIVESAS THEIR SUCCESSORS

  • FOR WORLD-CLASS OPERATION

    EXECUTIVES PASSIONFOR PRODUCT AND MARKET INSIGHT

    They confused

  • Yet these two talents are not the same

    FOR WORLD-CLASS OPERATION

    EXECUTIVES PASSIONFOR PRODUCT AND MARKET INSIGHT

  • For long-term survival in markets that change rapidly, one is FAR MORE IMPORTANT than the other

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