The announcement that Steve Jobs is to step down as chief executive
of Apple for health reasons had an immediate impact on share prices
and has prompted discussion about whether it is good for a company to
be so identified with one individual. The so called cult of the chief
executive is also recognised in the public sector. These are
individuals who are credited with turning around failing organisations
or for making mediocre organisations great. Some come in at a point of
crisis work their magic and go on to bigger and greater things others
build over a many years and go only reluctantly when retirement
beckons. Whichever type they are they present the problem of what
happens when they leave.
I am sure even Steve Jobs, credited as he is for making Apple a
globally successful company, has a very competent team of senior
managers backing him up and that Apple has some of the brightest and
most innovative people in the industry working for them. So why is the
stock exchange so nervous? Put another way why does any successful
organisation, service or team worry about the impact of a high profile
leader leaving unless they think what has been achieved is all down to
that individual. Some of this can be explained by natural anxiety
along the lines of what if the replacement isn’t any good or wants to
change everything? There may be a concern that some of the most able
and experienced managers will see this as the time to go, their
loyalty was to the individual not the organisation. New chief
Executives like new senior managers want to surround themselves with
their own appointments, people who think like them and don’t keep
referring to how things were done under the predecessor. So some
closely associated with the old order may be encouraged to go. There
may be concern that these changes of key personnel will adversely
affect the organisation all be it in the short term.
It could be that this high profile highly regarded charismatic
leaders achievements were down to their sheer force of personality,
people at all levels in the organisation believed in this person and
were prepared to go along with their vision and their decisions
because they liked and respected them. Nothing wrong with that you say
we want and need leaders who inspire their staff. Well in my view we
don’t. This type of leadership may be very effective in a crisis but
this” cult of the leader” is very damaging for an organisation in the
longer term. To use a sporting analogy this would be the difference
between a great team and a great club. A great team goes a whole
season without losing, a great club is one that has a succession of
successful teams even though the individuals change the philosophy
behind the way the club is run doesn’t. In organisational terms the
culture is not follow the leader the culture is based on a shared set
of values, a shared vision of the future and an agreed way of doing
things. This will not change even if the leader does.