Thoughts on successful companies and their leaders

March 14th, 2010 by mgkimsal Leave a reply »

This is a response to a recent TechCrunch post on leadership qualities and my own experiences working with startups and small businesses.

Well, less of a response, and more just some observations.  I’m no expert on the specific of the people involved – Jobs, Grove and Campbell – but I think they all shared something with respect to the businesses they founded or ran.  The businesses were, in large part, self-directed.  Obviously no company exists on its own.  However, the companies and people listed here were more interested in creating a new area or field than in trying to build something which would put them in a position of reliance on other parties.

The obvious example here is the recent iPhone App Store changes.  Being an iPhone developer means you’re totally reliant on Apple’s good graces to get your app to the public.  You have no other way to reach that audience.  Similar issues arise with the Kindle.  However, I got to thinking about this not because of the Kindle or iPhone, but another startup I’m working with here in the area.

Actually, they’re not a startup as such – they’ve been around for almost a decade.  But… they’re trying to break in to a new area, and that new area is largely controlled by hardware and network vendors (trying to not say too much here).  We’ve looked at several players in this field (there aren’t *that* many, to be honest) and because there’s a limited number and the cost to entry is pretty high, we’re basically stuck with trying to choose the least bad option.

These guys have been able to succeed for the past several years by employing a very DIY approach to their business, which doesn’t have any reliance on hardware or existing networks or vendors or anything else – it’s completely self-built, and they’ve been pretty successful.  Successful enough for me to spend time working with them.  But this reliance on an external vendor hasn’t sit well with me thus far, and seeing this TechCrunch article really drove that home, by comparing the current situation with that of the examples in the article.

To a degree, yes, Apple has always been reliant on existing hardware manufacturers to be able to supply chips and such, but even from an early stage (or because it was done at an early stage), Apple’s managed to be able to call the shots.  Few companies can do that, especially when coming in to an established market.

The article talks about being able to inspire and articulate a vision and execute.  The guys I’ve been talking to have a vision, have been able to articulate it, and have a track record of execution.  However, their execution has up to this point been on the ‘self-reliant’ side of things – rolling up the sleeves and getting things done.  That approach doesn’t work when others are suddenly in charge and control access to the ultimate customer (again, see iPhone apps).  All the ‘work’ in the world won’t get your iPhone app installed on someone’s iPhone if Apple doesn’t agree.  Likewise, we’re in a similar situation and having to agree to play by the rules of others to use their network.  I think the vision of this organization is solid, but I do question the reliance aspect – it just goes against my independent nature I guess.

Your thoughts?

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