Guy Kawasaki, author, speaker, investor and business advisor, here shares 12 lessons he learned from Steve Jobs while working at Apple. This is a transcript of the keynote speech he made at Silicon Valley Bank’s CEO Summit on October 6, 2011.
Good morning. Although arguably it’s not a good morning because the passing of Steve Jobs is definitely left a large hole in the universe. And I worked for him from 1983 to 1987 and then from 1995 to 1997, I worked for Apple again. And just as he came back towards the end of 1997, so we overlapped again. So arguably I am one of the few people in the world who worked for Steve Jobs twice and survived. So I consider it an honor to have worked for him. He fundamentally changed my life. He changed the lives of many Apple employees and he also changed the life I think of many, many people in the computer business, in the phone business, in the tablet business, in many places in the music business.
So if you look at your agenda, I am supposed to give a speech today about how to enchant people, how to be an enchanting person – to change people’s hearts, minds and actions. But because of Steve’s of death yesterday, this morning I wrote a completely new speech. And so you’re not going to see what’s on the agenda. I have a speech that’s sort of dedicated to what I learned from Steve Jobs and I think the lessons of Steve Jobs that you can apply to your startups. Because fundamentally Steve was arguably the world’s greatest CEO, the world’s greatest entrepreneur. I don’t think anybody did anymore for his customers or shareholders or employees as Steve Jobs. Truly, truly no one has done more.
So I have compiled the top 12 lessons that I learned and that I think all of you can apply to your companies. And so I have 12 key points – usually I have 10 – so there’s a little bit of inflation in my speech. I use the top 10 format because in the last two and half decades I have seen so many high tech executives speak and I can tell you there are two key points about high-tech speakers other than you of course. The two key points are they suck and they go long. And that’s a bad combination. If you suck and you’re short, it’s okay. And if you’re good and you go long, it’s ok but if you suck and go long, it’s like being stupid and arrogant. It’s a bad combination. So these are my lessons that I learned from Steve Jobs and I think that you can apply as entrepreneurs.
Lesson 1: Experts are clueless
If you start listening to the so-called experts, the A listers, the journalists, the analysts, they cannot help you as entrepreneurs. They’re going to tell you to do better sameness, to do what everybody else thinks is right. They’re going to tell you what their concept is often from a very arrogant point of view. Usually they are disconnected from customers. I cannot tell you – Steve Jobs did not listen to experts. Quite the contrary experts listened to him. And you could make the case that, that’s even more true today because of social media, that the Twitter, Facebook and Google Plus you can get so much closer to people so much faster that listen to the interpretation of experts and the pronouncements of experts is an absolute mistake. And I learned this from Steve. I watched him in action.
Experts are clueless, especially people who declare themselves experts. You meet someone who calls himself or herself a social media expert or guru, that’s the person to avoid. As an entrepreneur, you’re going to have to figure stuff out by yourself. Don’t rely on others. So that’s first thing.
Lesson 2: Customers cannot tell you what they need
If we had asked customers in 1983 what they needed, they would’ve said I need a bigger, faster, cheaper Apple 2, or I need a bigger faster cheaper MS-DOS machine. No one would have said give us a cute little graphics toy that was slow, that had no software thanks to me, that couldn’t use any of the industry standards, which had a little mouse instead of cursor keys that had a graphical user interface with a trash can in the lower right hand corner. No one could have described that.
And so you can ask customers about how to evolve something that you’ve already shipped, how to make a revolution better. But I don’t think you can ask a customer how to create a revolution, because customers are going to describe what they want in terms of better, cheaper, 10% improvement. If you truly want to change the world, if you truly want to be the great entrepreneur you cannot listen to customers, honestly. The day that you hear that Apple is using focus-groups to decide on its future products, that’s the day to short Apple’s stock. I tell you right now customers cannot tell you what they need.
Lesson 3: The biggest challenges beget best work
Quite to the perhaps people’s surprise what I learned at Macintosh division working with those hundred or so other great people was that we rose to the occasion. We did our best work in our careers because we were presented with the biggest challenge. And so rather than trying to break things down into bite size small little things, I think you should give your employees and your co-founders magnificent challenges, just challenges because that’s truly why and how you get the best work out of people.
Now if you ask an employee of Apple, why do they put up with some of, shall I say, the challenges of working at Apple, they will tell you that despite all the challenges the reason why they work at Apple is because Apple enables you to do the best work of your career. And so if you provide your employees with this challenge, a big challenge they will rise up and do the best work of their career. So big challenges is what you should present.
Lesson 4: Design counts
Next thing I learned is that design counts. In a world where everybody’s talking about price, lots of people care about design. Lots of people do. And this is something that’s probably contrary to what most experts will tell you. Most experts will tell you there’s a price point and people are price-sensitive and there’s this curve of demand and I think to a great degree Apple has disproved that. Design counts. There is an element of people – maybe it’s only 10% of the people but 10% of people truly care about design. So you should care about design. Don’t put out crap.
I have tried to enchant people with great stuff and I’ve tried to enchant people with crap. And let me tell you it is a lot easier to enchant people with great stuff than crap. So Don’t think of human interface and design is simply like a little layer on top of your great engineering algorithms. For what it is, it is the product for most people. It’s not the great algorithm; it’s the skin of it. That’s what counts. Design truly does count. Steve Jobs has proven that five times – Macintosh, iPhone, iPod, iPad. You could make the case that many other companies could have done what he did, starting with Xerox PARC. But let’s face it, Steve understood, Steve had the vision, Steve had this ability to anticipate what customers need before they could articulate it. Design counts.