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Steve Jobs in Exile

What I learned from reading Steve Jobs in Exile: The Untold Story of NeXT and the Remaking of an American Visionary by Geoffrey Cain https://amzn.to/4o6mQpj Made possible by: Ramp: https://ramp.com Axon by Applovin: https://axon.ai/founders Vanta: https://vanta.com/founders

David Senrahost
Jun 4, 202653mWatch on YouTube ↗

At a glance

WHAT IT’S REALLY ABOUT

How Steve Jobs's NeXT Failures Transformed Him Into Apple's Savior

  1. After being forced out of Apple, Jobs founded NeXT and made mistake after mistake, from overspending on a $100,000 logo and lavish perks to perfectionism that kept the computer from shipping.
  2. Jobs's words and actions rarely matched at NeXT: he preached cost discipline and honest teamwork while spending freely, micromanaging, scapegoating and firing people, and surrounding himself with people afraid to tell him the truth.
  3. Investors Ross Perot, IBM and Canon kept NeXT alive, but Jobs sabotaged key deals by skipping the IBM presentation and refusing to sign the Perot Systems government deal.
  4. Forced to give up hardware, NeXT pivoted to enterprise software and WebObjects, reached its first profit, and Jobs matured into a humbler leader who listened and kept his team.
  5. When Apple needed an operating system, Jobs pitched NeXT with a pragmatic, precise approach, sold the company in a five-minute kitchen negotiation, and returned to Apple better prepared to lead.

IDEAS WORTH REMEMBERING

5 ideas

Too much money can destroy discipline.

Ross Perot said his mistake was giving Jobs too much money, and Senra contrasts NeXT's champagne-taste spending with the cost discipline Jobs showed when starting Apple.

Motives shape the quality of what you build.

Jobs later said motives make a huge difference, and at NeXT much of his drive was revenge on Apple, including Wall Street Journal ads attacking it, whereas at Apple it was about building great products.

Leaders need people who will tell them the truth.

Engineers told Jobs 'one more month,' executives went silent when he walked into the room, and Daniel Lewin said there were no adults in the room, so problems stayed hidden until they were severe.

Perfectionism without decisiveness can kill a company.

Jobs kept changing the chip design, insisted on a matte black magnesium case despite engineers' warnings, and delayed shipping, letting competitors catch up while cash drained.

Failure forced Jobs to adapt to a changing world.

Giving up hardware and embracing software and WebObjects taught him to change when the world changes, and the company reached its first profit.

WORDS WORTH SAVING

5 quotes

It is probably the defining point of Steve Jobs' life because you will see one of the most brilliant entrepreneurs, maybe the greatest entrepreneur to ever live, just make mistake after mistake after mistake.

— David Senra

Steve had too much money. He had too much personal money, and he got way too much money from his investors, and so he stopped watching his costs.

— David Senra

This is like bizarro Steve Jobs. It is a version of Steve Jobs that's just making the opposite decision that an intelligent entrepreneur would make.

— David Senra

I think these two paragraphs are super important to understand that if Steve never changed, there's no way he would have had the success he had when he went back to Apple.

— David Senra

And regardless of the time and place in Steve Jobs' life history, one place you don't wanna be at is in a presentation duel with him

— David Senra

Jobs's exile from Apple and founding of NeXTOverspending and the $100,000 logoPerfectionism and the failed cube computerLack of honest feedback and the hero-shithead rollercoasterDeal-making and self-sabotage with IBM, Canon and PerotPivot from hardware to software and WebObjectsJobs's transformation and the Apple acquisition

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