Latest / The Innovation Show / Geoffrey Cain — Steve Jobs in Exile, Part 2: NeXT's Failures, Pixar's Lifeline and the Road Back to Apple
Transcript
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- 1:03Welcome to part two of this brilliant book, Steve Jobs in Exile,
- 1:07and the author, Geoffrey Cain.
- 1:08Welcome back, sir.
- 1:10Good to be Back, Aidan
- 1:11Great to have you back, man, and thank you for doing this.
- 1:14Geoffrey's just, finished this book while he was having a baby, and the
- 1:18baby's with him now, so we're gonna get through as much as we can, and
- 1:22he's kindly fitted us in for part two.
- 1:24Doing two parts on this book does not do it justice.
- 1:28I know many of the interviews you do are shorter, but man, I don't
- 1:31know how you could fit in the amount of gold you have in this book.
- 1:35It's just a phenomenal piece of work.
- 1:38I- you sent me down so many rabbit holes with all the videos on YouTube that
- 1:41exist, loads of articles that are out there, but you've joined them together
- 1:45in a beautiful, beautiful way, and thank you for joining us for part two
- 1:49Well, thank you and honored to hear it from you
- 1:52It's great, man.
- 1:52So let's, let's start.
- 1:54We… I, I was kinda thinking part two would be the comeback, but we didn't
- 1:59even get through the crisis, 'cause the crisis almost lasted 10 years as
- 2:03he burned through his personal fortune.
- 2:07He bought Pixar.
- 2:08There's so much in there, but let's start with a chapter you call When Reality
- 2:12Distorts Back, and this is a reference to his famous reality distortion field.
- 2:17But he couldn't distort this reality because the Cube's expensive components
- 2:22had driven the price of the Cube up to six and a half thousand dollars.
- 2:26That was more than double what he had initially promised, and light
- 2:29years from the $1,000 that had made the Mac a campus s- sensation.
- 2:34And that's in reference to it being an educational product.
- 2:37So let's pick it up from there and just talk about how it just inflated,
- 2:42and also the backstory of him being driven by vitriol and rancor to prove
- 2:49himself after the ousting from Apple
- 2:51Right.
- 2:52So Steve Jobs was filled with a sense of vengeance when he started
- 2:56this company, NeXT Computer, because he had been sidelined from Apple.
- 3:01He spent the summer of 1985 adrift, traveling, trying to
- 3:04figure out what to do with life.
- 3:06But his baby had been taken from him, and his baby was the Macintosh computer.
- 3:10That was the, the pride of what Steve Jobs had created.
- 3:14But he lost this power struggle with, CEO John Sculley, who he had famously
- 3:19hired a few years earlier by saying, " do you wanna make sugar water the rest
- 3:24of your life, or do you wanna come and join me and change the world?"
- 3:27That was how he recruited John Sculley.
- 3:29And Sculley pushed him out, so he was angry.
- 3:31He was full of rage over what had happened.
- 3:35And so when he founded NeXT Computer, the mission was to get revenge on Apple.
- 3:40And the decisions that he made became a series of his, of mistakes precisely
- 3:43because of that, because he was trying to get back at Apple for removing him.
- 3:48Here's what's interesting about this story.
- 3:50This is what I always found so fascinating.
- 3:52People talk about the reality distortion field.
- 3:55That was Steve Jobs' most famous, trait.
- 3:59It was this characteristic where he could walk in a room, and he could
- 4:04look somebody in the eye, and he could say, "The sky is green," and
- 4:08they would end up believing him.
- 4:10He could convince anybody of anything.
- 4:12He could sell anything.
- 4:13That was really his masterly trait, something that people saw in him.
- 4:18But there's a limit to that.
- 4:21You can't bend reality to your will forever, and eventually reality's
- 4:25gonna snap back at you and you're gonna be put in your place.
- 4:28It's an iron law of the universe.
- 4:30, I think there's a misconception out there that, the reason Steve
- 4:33Jobs is so successful is because he could bend reality so well.
- 4:36He could put a computer in front of you and sell it to you in an instant.
- 4:40You would take out your checkbook, write that $4,000 check.
- 4:44that's not how, the Steve Jobs story actually went.
- 4:48In this period of his life, the middle period, tried to do exactly that.
- 4:52He built this perfect cube, the NeXT Computer.
- 4:56He unveiled it, it was October 12th, 1988.
- 5:00Had a major launch event.
- 5:01It was the talk of the town.
- 5:03People had, literally gotten on buses and come out from Kansas City 'cause
- 5:06they wanted to see Steve Jobs again.
- 5:08This was his big debut after being fired from Apple, and this was gonna
- 5:13be the moment when he would, put his foot down and say, "i am Steve Jobs
- 5:17and I'm here." And for the time, he gave a brilliant product presentation.
- 5:21He had a, a violinist from the San Francisco Symphony come in and played,
- 5:25one of the first, one of the first pieces in which a computer was calculating its
- 5:30part in real time and did it as a duet with one of the world's top violinists.
- 5:33Uh, And, for the year 1988, that's incredible because you
- 5:36gotta remember, computers back then, they did boops and bleeps.
- 5:39I don't know, how many people remember that.
- 5:42Maybe the younger crowd doesn't, but, you put in your old NES, your
- 5:46Nintendo, or your, turn on your old Apple computer, and it was like a
- 5:49boop, boop, boop, bleep, bleep, bleep.
- 5:51This was the end of it, this was a new, era in technology that
- 5:55Steve was heralding in But back to the reality distortion field.
- 5:59So this cube comes out ni- late 1988.
- 6:04It only sells about 100 computers in the first month.
- 6:07And I have all the data, I have all the old memos where they're stating
- 6:10the numbers, and it's, something like 100 the first month, 50 the second
- 6:15month, 80 are sold the third month.
- 6:17The numbers are ridiculous.
- 6:18And Steve Jobs is there, telling his team that actually w-
- 6:21we're gonna sell a lot more.
- 6:22We're gonna sell 10,000 this year.
- 6:24We're gonna sell 50,000, 100,000.
- 6:26He keeps inventing these, these greater numbers to show that, this is a success.
- 6:31But the reality, everybody sees it, is that they're only selling
- 6:34about 80 to 100 computers a month.
- 6:36So by any reasonable investor's accounting, that's a failure.
- 6:40That's not something that went so well, especially when you consider the amount of
- 6:44investment that goes into this technology.
- 6:46It's a loss.
- 6:48and so, what's the lesson here?
- 6:50The lesson is that reality does distort back.
- 6:52Steve Jobs did not wish his way into success by warping the world around
- 6:58him, by, warping people into his vision.
- 7:01The way that he got to success was how he figured out the way
- 7:05that his vision meets the world.
- 7:08and that's a- an entrepreneur's lesson.
- 7:10You can't fight the market.
- 7:11You can't swim upstream.
- 7:13If the market wants something and you're trying to cram something else down the
- 7:17market's throat, it's going to fail.
- 7:19And it's just an iron law of business.
- 7:21So I know it's kind of a, a prosaic, lesson.
- 7:25It's not the kind of lesson that a lot of founders wanna hear necessarily because,
- 7:28founders are visionaries by definition.
- 7:31And, it's very easy to get captured, caught inside your vision to, have
- 7:37this feeling of, I'm going to show the world what I'm made of and what
- 7:40I'm capable of." But ultimately, what the world needs from you might not be,
- 7:45the vision that you have in your head
- 7:48I love that, and maybe we'll talk about that because he, he, just like
- 7:51Macworld, he'd created an event.
- 7:54He'd co-created and co-owned an event called NeXTWorld, and this
- 7:58was kind of the start of it, this expose, this demo with the violinist.
- 8:04But I wanted to mention something 'cause w- we'll move on from his, his early
- 8:09days because there's a risk people might think that Steve Jobs remained an
- 8:14absolute jackass, and there's critics out there that said, well, he did.
- 8:19But when you read the book, you really see the transfor- from a transformation of a
- 8:24person on, on a hero's journey, really.
- 8:27It's essentially like a movie plot.
- 8:28You see this person change, and you see the character emerge over
- 8:32time, but from all the failures.
- 8:34And one of the horrible things he did, one of the many, was a young au-
- 8:38audio engineer who had joined was in charge of making the sound, the audio
- 8:44for, the audio software for NeXT, which actually, for those who use Mac,
- 8:48became an early version of GarageBand.
- 8:50And I love that in the story as well, that there's so many what are perceived
- 8:55failures that led to successes later because he had enough runway and because
- 9:00he stayed at the table long enough,
- 9:02Mm-hmm.
- 9:02and I think that's a, a real important lesson as well
- 9:05Yes,
- 9:05That's the hero shithead rollercoaster in action.
- 9:08That's, another famous Steve trait.
- 9:11I believe we talked about that last time.
- 9:13And, there's the reality distortion field, and then there's the
- 9:15hero shithead rollercoaster.
- 9:17what Steve was great at doing, it was a double-edged sword.
- 9:20He was great at doing this, but it could also be to his detriment.
- 9:24It was his ability to, look at somebody, look into their soul.
- 9:29NeXT executives, they-- Some of them, they called Steve a street hustler.
- 9:33He's like this guy.
- 9:34That was his personality.
- 9:35He could look at you and size you up immediately and reach into
- 9:39your soul and pull out things, that you didn't know are there.
- 9:42And what I mean by that is talent, creativity, ideas.
- 9:47He was so good at walking into a room and pushing people, just pushing and
- 9:52pushing and asking harder questions like, "Why can't we do it this way?
- 9:55Why not that way?
- 9:57Why does the software have to look like that?" engineers would
- 10:00look back at him and say, "Well, you know, this is how we do it.
- 10:03This is what software looks like in the year 1988.
- 10:06We can't do it anywhere else." But he would not accept that.
- 10:09The way that he approached creativity sort of like being a film director.
- 10:13And the director, certainly different from an actor, you know, like you're
- 10:16not the one with the roles, you're not setting up the costumes, but you have
- 10:19the vision, and your job is to bring out what you need from every piece of
- 10:25this film set, every person who's doing something, and unifying it into a whole.
- 10:31So there was something that a NeXT executive mentioned that, a lot of,
- 10:35a lot of business founders, leaders out there, they tend to look at
- 10:39one or two parts of the business.
- 10:40That's a mistake.
- 10:42What Steve Jobs was so brilliant at was taking the whole thing and looking
- 10:46at it together, and that's how he could get these great ideas out of
- 10:49people who were focused on one or two things It's outside-the-box thinking.
- 10:53That's exactly what it is.
- 10:54But, you know, this was not always a great trait in him because, flip side of this
- 10:59is that he could be, especially earlier in his life, mean and vindictive and nasty.
- 11:03He would go in, he would scream at people, yell at them, call them worthless, swear.
- 11:09Like, there was a lot of swearing that went on at the early NeXT Computer,
- 11:12according to people who were there.
- 11:13It was not nice to be around Steve all the time, and, one day he could hold
- 11:17you up, the next day he could cut you right down in front of an entire group.
- 11:21And in the book, there are many instances of this where he's just
- 11:24being outright irrational, and he's just impossible to work with.
- 11:28It's interesting watching this in the life of Steve Jobs because it's clear that,
- 11:32he has this brilliance at the outset.
- 11:34He knows what creativity is and how to get the, how to get his vision working with
- 11:40people, but he misapplies it early in his life, and he does it in a, in such a way
- 11:45that he damages relationships, he chases off talent, he angers his investors.
- 11:50He's got that energy there, but he's pointing it in the wrong direction,
- 11:53and a lot of what my book is about is how he learns to harness this
- 11:57energy, how to work with it, how to not use it in a destructive way,
- 12:01but to use it in a building way.
- 12:03That's the magic of Steve Jobs, learning that lesson, how to build and not destroy.
- 12:09One of the interesting things that came up, Geoffrey, was I was talking recently
- 12:13on an episode about Nokia and the culture at Nokia to Quy Huy and Timo Vuori, these
- 12:19two scholars who did a lot of research into the culture, the real culture
- 12:23at Nokia, much like you did in Next.
- 12:25And one of the things they said was the difference between Jobs and
- 12:29Olli-Pekka Kallasvuo, which was the CEO at Nokia, and the culture at
- 12:34Nokia, which was a screaming culture like that as well, very autocratic
- 12:37culture.
- 12:38Stories.
- 12:38But they said the difference was Jobs sold people a vision for
- 12:43the future, a compelling vision.
- 12:45And to your point, he'd reach inside and he'd pull out something
- 12:48they didn't know was there, versus just being driven by fear.
- 12:53So he, yes, he used fear, but he actually used both the carrot and
- 12:57the stick at the same time, and that was a huge skill that he had
- 13:00Right.
- 13:00Right.
- 13:01It's the carrot and the stick.
- 13:02Um, that's a skill that a lot of talented CEOs are able to harness.
- 13:07It's unfortunate that early in life, Steve Jobs, you know, was more of a stick guy.
- 13:11He would yell and scream and step over people's boundaries and so forth.
- 13:16But, later in life, as his transformation happened, as he learned
- 13:19the lessons of failure, he learned the usefulness of the carrots and how,
- 13:24you know, you really, as the CEO…
- 13:25There's even a quote, this was in the Steve Jobs archive, a video
- 13:28interview that recently surfaced.
- 13:30He talks about what it's like to realize what it really means to be
- 13:34a leader, and he says, look, he's talking about Pixar at this point.
- 13:39"At Pixar, I have the most brilliant people working for me.
- 13:43They're at the cutting edge." Remember, this is the age of
- 13:45Toy Story, one of the greatest computer-animated films of all time.
- 13:49And he's talking about just how good the people are he works with,
- 13:52and he wants to keep them around.
- 13:54And the realization he had is that there's a kind of inversion
- 13:58that happens when you're leading a company of highly talented people.
- 14:03the inversion is that you, the CEO, are actually at the bottom.
- 14:08The people you work with, the animators, the engineers, the software developers,
- 14:12the so forth, they're above you.
- 14:15They're at the top.
- 14:16It's in an inverted pyramid, and your job as the CEO is to keep them around.
- 14:21And how do you keep them around?
- 14:22You treat them well.
- 14:24Remember, this is something that a Steve advisor told him.
- 14:27Steve's advisor said, "Remember that your assets have feet." Your
- 14:31employees, they're not, people who you can just use and abuse.
- 14:35You have to keep them around, and you do that by being a more
- 14:39humble leader and asking for their advice and going along with it
- 14:43Beautiful.
- 14:43I think, I think that was Paul Rand, the logo designer actually m- might have said
- 14:46it from, from memory, or maybe Ross Perot.
- 14:49But he had so many people saying this to him all the time, and he kinda
- 14:52going, "You're gonna lose good people." Let's lean into that, because he did.
- 14:56He burned so many bridges.
- 14:57Let's talk about the relationships, the original NeXT founders,
- 15:01'cause they went one by one.
- 15:03Dan'l went as well, and
- 15:05Mm-hmm.
- 15:05And you see this oftentimes where they, a leader like Jobs will lose somebody
- 15:10like Dan'l, and then publicly humiliate them in a way to go, it was his fault,
- 15:16not mine, and then also to let nobody else think that if you leave, by the
- 15:21way, I'm gonna do the same to you
- 15:23Right.
- 15:24Right.
- 15:24And, that's one of the stories that pops up again and again in, in this book.
- 15:29The original NeXT co-founders, it was a team of six people.
- 15:33So there was Steve, and then there were five co-founders.
- 15:36They were Dan'l Lewin, Susan Barn, Susan Barnes, George Crow,
- 15:41uh, Rich Page, and, Bud Tribble.
- 15:44And these are some of the most talented people in Silicon Valley, the top
- 15:47engineers and marketers of their day.
- 15:49So Steve is taking a serious team with him.
- 15:52Now, what immediately happens it's perfectly predictable, and I'm always
- 15:57careful about writing history because I try to put it from the perspective
- 16:00of the people living in the era.
- 16:03Like, if we do this, we don't know.
- 16:04If we make this decision, we don't know for sure how things are gonna turn out.
- 16:08Like in Japan, sorry, in, in World War II, Japan attacks Pearl Harbor.
- 16:13They did not know that that was gonna lead to the collapse of the Japanese empire.
- 16:16You see these examples all throughout history, and you have to write
- 16:19from the perspective of people at the time with that uncertainty.
- 16:23So in this particular case, it was interesting because I thought I would
- 16:26go back into the archives, and I thought I would find evidence of people
- 16:30who thought that they were making brilliant visionary decisions and that
- 16:34they truly thought this was gonna be the next great technology of its era.
- 16:39But what I found was interesting, 'cause it wasn't that at all, this is like the
- 16:42opposite of most historical writing.
- 16:44Steve Jobs was the only person who truly seemed to think that he
- 16:48was doing something revolutionary.
- 16:51else was on board, and they liked working at the company, but they were telling
- 16:56Steve the entire time exactly what was gonna happen and how this was gonna fail.
- 17:03The entire way through, from the start of the company, until the 1990s
- 17:08when the last co-founder left out of frustration, just frustrated with Steve,
- 17:13entire time everybody was telling him, "This is what you have to do, Steve.
- 17:18This is what's gonna happen if you don't do it." And then years later,
- 17:22when they released the product, the exact things that they said were gonna
- 17:25happen, the exact failures happened just as they said it was gonna happen,
- 17:29but Steve was not listening to them.
- 17:32when they told him that, Steve blamed them, just put it right back on them.
- 17:35Book to write because you don't see that in a lot of places.
- 17:37You usually see much more disagreement among advisors,
- 17:41disagreement among colleagues.
- 17:43Like this might work, this might not.
- 17:45In this case, everybody knew what was gonna happen, but
- 17:47Steve blew them off anyway.
- 17:48Major life lesson
- 17:50One of the things that was so different from what became Apple 2.0 was, and even
- 17:56NeXT 2.0 when they became a software company or a web objects company, was
- 18:03the difference in how they tracked things like bugs or released products.
- 18:06So the Cube was released and not fully working.
- 18:10It was buggy.
- 18:11It was breaking down all the time.
- 18:13The software was useless, dubbed useless by many, many developers.
- 18:17And on top of that, they didn't have much of an application database, so
- 18:21there wasn't many apps working on it.
- 18:23And you see this as an early version, and this is what I say about Jobs, had
- 18:28a second chance, which is so unusual.
- 18:31And I think there's a danger in reading this book that y- you look, or looking at
- 18:35Steve Jobs, which is why it's so important you wrote this book, to think he was this
- 18:39genius that just laid out this vision and had this reality distortion field.
- 18:44But when you read your book and read it with other accounts of his life,
- 18:48you see actually he just learned from his failures time and time again
- 18:53And that's what I found interesting about exploring this period
- 18:56in the life of Steve Jobs.
- 18:57The biographical element, it's different from, the way that most
- 19:02biographies kind of play out.
- 19:04And the reason is because-- Here's the way I think about it.
- 19:07So this is a contribution that I've written.
- 19:08This is not the one defining story.
- 19:11There is an entire litany of biographies out there and histories, books on Apple,
- 19:16books on Steve Jobs, and so forth.
- 19:18And they all contribute something, but they all bring a different contribution
- 19:21to a man who's extremely complex, one of the most brilliant inventors of our age.
- 19:26He's not somebody you can pin down easily into one cardboard,
- 19:29archetype or that sort of thing.
- 19:31And so Steve Jobs, what's interesting about him, I thought…
- 19:35I, think about it this way.
- 19:37A lot of other biographies out there, those are the donut.
- 19:40And what I've been doing here is writing the hole.
- 19:43This is the part that tends to get overlooked.
- 19:46You know, when you're looking at a donut, you don't think about the hole so much.
- 19:49But this is, the goal of the book, to show something that's a little different
- 19:53that we haven't really thought about before with Steve Jobs, and that's
- 19:56really what I'm trying to do here.
- 19:57Let's talk about a couple of the investors here.
- 20:00So Canon was a huge investor who came in later on and got 16.67% of the company
- 20:08Right.
- 20:08So Canon came in, and they came in under interesting circumstances.
- 20:12So they originally were not, you know, on Steve's list of investors,
- 20:16but they had built this optical drive for the NeXT Computer.
- 20:20And what this optical drive was, was the next generation of technology
- 20:24that was gonna shape storage.
- 20:26It was also visually beautiful, something that Steve really liked.
- 20:29And as Canon was developing this drive, well, they were late and the drive didn't
- 20:34work very well, which is the story of NeXT Computer, stuff just doesn't work
- 20:37'cause it's so far out of its time.
- 20:40and so what happened was that, Canon, as a result of getting involved with this
- 20:44NeXT cube, ended up being pulled in as an investor because Steve Jobs needed money.
- 20:50He was just burning through cash left and right.
- 20:52He was almost out of money, and so who do you call?
- 20:54Call your supplier.
- 20:55It's Canon, major Japanese company.
- 20:58Of course they're gonna wanna invest because this is Steve Jobs.
- 21:01so that's really, how Canon arrived.
- 21:03It wasn't just a matter of investing in the company NeXT, but it was
- 21:07because they saw Steve Jobs and his brilliance, and so they put money in.
- 21:11But, not a relationship that ended well, like a lot of his relationships in this
- 21:15period, just because he was, blowing through cash and not being accountable.
- 21:19So Canon eventually said sayonara, and just like everybody.
- 21:23So I don't wanna get too far into the ending 'cause there's a lot that
- 21:26happens, a lot that happens that's hard to , get into in, in one episode.
- 21:30But, things do not end well, with the way things are going here.
- 21:34One of the other examples, IBM, and there's a brilliant story you
- 21:37tell about on their way to Dallas.
- 21:39So Steve, you call it Steve on a stick.
- 21:41This is what they used to call it, where Steve was a brilliant salesman.
- 21:44Like you said, he had this reality distortion field, but he, but he
- 21:47also gave great demos of the product.
- 21:50And he was on his way to an expo with IBM, and one of his colleagues,
- 21:55Mark Hayes, a salesman, comes up to him at a bookstop, a bookshop in San
- 21:59Fran in the airport, and he tells him, "Look, there's two screens here.
- 22:04We've only w- " And at the time you would've needed two separate
- 22:07presentations, and Steve had the only one.
- 22:09I'll let you take it from there.
- 22:10And just, this is an example of the ego, but also the self-sabotage.
- 22:16There's so much self-sabotage in the life of Steve Jobs in the early part of his
- 22:20life, and this is such a great example because what happened, was that had
- 22:25entered a massive deal with NeXT Computer.
- 22:28They were gonna build, IBM workstations that could run Steve
- 22:31Jobs' operating system NeXTSTEP.
- 22:33So, to put this into context, this is significant because you have to remember
- 22:39at the time that Windows was just starting to become the dominant, operating system.
- 22:44One of the reasons we actually use Windows today, why it's so common, is
- 22:47because IBM had adopted it in these early years, and it was sort of like
- 22:51the operating system that everybody booted up if you didn't have an Apple.
- 22:54So Steve Jobs manages to convince IBM for its workstation market, which is
- 22:59a level up from PCs, to put NeXTSTEP on it, which is a major coup d'état
- 23:05against Bill Gates because Bill wanted that market, and Bill wanted to have
- 23:09the only operating system of the future.
- 23:11This is when he was creating his Microsoft monopoly of the era.
- 23:15Steve Jobs, couldn't have had a better hand played to him with the help of
- 23:19all of his executives because what this meant, if this deal had succeeded,
- 23:24then NeXTSTEP, like we-- today we would probably not be using Apple and the OS.
- 23:28We would actually be using the NeXT operating system.
- 23:31Like, that's how significant this is.
- 23:32It would be everywhere, most likely But, Steve just sabotaged it.
- 23:38He, I mean, it's a very complicated story 'cause he's a complicated man.
- 23:44But, IBM, like he couldn't get everything he wanted from IBM.
- 23:47They were slow to put the operating system on their computers.
- 23:51And in the end, you know, Steve was afraid of giving up total
- 23:55control of his operating system.
- 23:57And you have to remember that, that he was always a man of total control.
- 24:00He wanted to have the walled garden where he controlled all the software and all
- 24:04the hardware, and he just couldn't imagine licensing away his beautiful operating
- 24:10system to IBM, a company that he hated.
- 24:14There was even a famous photo of him flipping off the IBM
- 24:17logo, - in New York City.
- 24:19It's one of those like famous photos that everybody looks at.
- 24:21And so Steve Jobs, sabotages this relationship.
- 24:25He just can't get what he wants from IBM.
- 24:27He doesn't wanna get up, give up control, and so he allows, they're
- 24:31about to go give this presentation.
- 24:33This is when talks are already breaking down.
- 24:35He's gonna fly to IBM and give a presentation for 800 IBM employees.
- 24:40And, the way that the room is set up is that, it has two sides of
- 24:45the room and like each side has a slide, but they only have enough
- 24:50slides for one side of the room.
- 24:52So people can't look in both directions.
- 24:54They can't look, you know, to the side or back or whatever it is.
- 24:57And so Steve Jobs is at, literally at the airport getting ready to fly out to
- 25:00New York to give this presentation and, tells his, salesperson who's there with
- 25:05him, his assistant, I don't wanna do this.
- 25:07I don't have enough slides.
- 25:08I don't have the tools I need today." So he literally got in his Porsche,
- 25:11drove home or drove to the office and said goodbye. So this poor salesman,
- 25:17Mark Hayes, who's very prominent in the company, has to show up to IBM's
- 25:22office, has to stand in that room with 800 IBM engineers, tell them
- 25:27that, there's no Steve Jobs today."
- 25:30And how does IBM this?
- 25:32They realize that the deal is dead.
- 25:34This is just one example of many examples of this kind of behavior,
- 25:38and this is what gets Steve in trouble
- 25:40Maybe one last one because there's loads.
- 25:44And, and this one was Dan'l saying to Steven, "You're blowing it up. You're
- 25:49going to blow up the relationship with Ross." So put it in context.
- 25:54Ross Perot was a major investor, the chairman of the board as well, from
- 25:59memory, and had put lots of his own money in, believed in Steve, but brought, more
- 26:04importantly, he was a such a strategic investor 'cause he brought the government,
- 26:08he brought all the alphabet soup of government agencies with him because they
- 26:12wanted the security and the animation that the, the Next Cubes could offer.
- 26:18But he blows this one up as well
- 26:21Exactly.
- 26:22Exactly.
- 26:23Uh, Ross Perot is, um, here's how you think about Ross Perot.
- 26:27He's the Chuck Norris of technology.
- 26:30This is a guy who, uh, sent his employees into Iran during the revolution of
- 26:351979 to rescue other employees who were kept in an Iranian prison.
- 26:41Uh, y- you know, it's like, I mean, that doesn't even happen anymore today.
- 26:44It's just we have drones and all this stuff.
- 26:46But, um, you know, Ross Perot is a military veteran.
- 26:49He's tough as nails, straightforward.
- 26:51He tells you when you're wrong.
- 26:53And so, um, know, Ross is somebody who's very interested in Steve at the beginning.
- 26:58He signs up to be an investor.
- 27:00He's actually Steve's biggest backer.
- 27:02And part of the goal is that Ross Perot, who's a military and government
- 27:05contractor, uh, is gonna line up NeXT Computers with intelligence
- 27:09agencies, three-letter agencies, CIA, NSA, with the Department of Defense.
- 27:14They're, they're chasing a lot of these major governmental contracts.
- 27:17And one of the reasons that the intelligence community loves
- 27:20the NeXT Computer is because of this futuristic tech-- the, the
- 27:23futuristic technology of the day.
- 27:26Um, you know, just for example, that optical drive that Steve loves that
- 27:30I mentioned earlier, uh, spies from the CIA like it because they can
- 27:34remove it and destroy it, and it's not like a hard drive where it, it sits
- 27:37around forever and, you know, somebody can steal it and gain access to it.
- 27:41So NeXT Computer is, like, exactly what these spies and
- 27:44soldiers need in the field.
- 27:45It's like the computer of the future of intelligence.
- 27:48And, um, so Ross Perot has this all lined up.
- 27:52He's really well-connected in government work.
- 27:54And so what does Steve do?
- 27:55He says, in the end, "I don't wanna work with the federal government. I don't
- 27:59like the feds." You know, he's s-- you have to remember Steve's personality.
- 28:03He's not a man known for, um, bureaucracies and ranking, rank
- 28:07and file, and hierarchies that, like, this is a world that is
- 28:11alien to somebody like Steve Jobs.
- 28:13He's the man of democratizing technology.
- 28:15Like, he would rather have a computer that every student in a dorm room
- 28:19can use rather than a computer that's being used by the federal government,
- 28:23you know, to manage databases.
- 28:24It's just not his style.
- 28:26so Steve, uh, kills the relationship.
- 28:29You know, he just, he just decides, "I don't wanna do business with the feds."
- 28:33And so this puts his relationship with his investors, including Ross, up in the
- 28:37air once again because they're saying, "Well, you know, if you're not gonna sell
- 28:40to the government, who is your market?
- 28:42Because you're only selling 100 of these computers a month to actual consumers,
- 28:46so you gotta figure something out here."
- 28:48So we talked in part one about how he had bought Pixar for a song.
- 28:52He g- got it for 5 million because Lucas was under pressure
- 28:56for a divorce settlement.
- 28:58But later on then, he's in a meeting with Disney executives, and this was
- 29:02a huge opportunity for both Pixar and NeXT, eventually for Pixar.
- 29:06But Disney was using Pixar software to develop movies like The Rescuers, Rescuers
- 29:12Down Under, but refused to give Pixar credit, and Steve kept a receipt on that.
- 29:17So despite having this opportunity where he was gonna show them the
- 29:21technology, he blew that one up as well
- 29:24Exactly.
- 29:25And so Disney was gonna become potentially a major customer.
- 29:28Geoffrey Katzenberg at the time was the, I believe the CEO
- 29:33of Disney, and he was there.
- 29:34So th- this was a scene that a couple, NeXT employees who were in the room
- 29:39with Steve recounted this same scene.
- 29:41And it was, Steve in there with Daffy Duck u- up on the wall.
- 29:46What he was doing is he was demonstrating this new color display
- 29:50that the new NeXT Computer, could use.
- 29:52Steve was really proud.
- 29:53This was, this was the second NeXT Computer release, and Steve was
- 29:56really proud that it now had color, which at the time was an innovation.
- 30:01And so, he put Daffy Duck up on the wall and, you know, he was making his
- 30:06pitch to the senior Disney leadership.
- 30:08They were gonna, potentially buy thousands of computers.
- 30:12Another example, big corporate acquisition, something that could really
- 30:15make a difference for the company.
- 30:16And instead of just swallowing his pride and selling the damn
- 30:20computer, he has to bring up his unhappiness with this deal with Pixar.
- 30:25So Pixar, his other company, is doing business with Disney making computer
- 30:29graphics, but under their contract at the time, Disney was not giving
- 30:33credit to Pixar, in these movies.
- 30:36And Steve didn't like that.
- 30:37He wanted credit.
- 30:38He thought that he was getting the short end of the stick.
- 30:40And so he brings this up, and it just becomes a fight.
- 30:43And Geoffrey Katzenberg, according to people in this room, legally threatened
- 30:47Steve and said, "You're using Daffy Duck on the wall without our permission.
- 30:51You have to, get our permission for that." And then what happens in the end?
- 30:55So Disney orders, like, something like 20 of these computers, maybe 100.
- 30:59I forgot the number, but it's so small, and it's just clear
- 31:02that Steve blew that one too.
- 31:04So let's flip around, 'cause he starts to change pretty
- 31:04much after he gets married, and
- 31:07you have a chapter here called
- 31:10The Two Steves, and it's, it's really when he's kinda hit, hits rock
- 31:15bottom, and it so happens to be at the emergence of the internet as well.
- 31:20And a really interesting fact you learn from your book was that Tim
- 31:23Berners-Lee, who invented the internet essentially, actually used Cube, and
- 31:28as did another developer who created the game Doom that so many of us know
- 31:34Right, right.
- 31:35Tim Berners-Lee invented the World Wide Web, and he literally created
- 31:39the web on a So originally, we think of the web as this sprawling
- 31:45network that anybody can log into.
- 31:47We use Facebook and social media.
- 31:48But at the beginning, in the year 1990, this was such a new concept,
- 31:53and it was literally running on one computer in a laboratory
- 31:57overseen by Sir Tim Berners-Lee.
- 32:00, It was a NeXTcube.
- 32:01It was a NeXT computer.
- 32:02And, this is just one example of how far ahead of its time this technology was.
- 32:07The NeXT computer was so sophisticated that in the year 1990, you could
- 32:12literally create the World Wide Web on this computer I mean, think about that.
- 32:16Like, think about how many computers you need for the web to work, the cloud, all
- 32:20this technology, and there's one computer in a lab that can run the World Wide Web.
- 32:24It's just-- I, I find that mind-blowing, the level of creativity that people
- 32:29could unleash on this NeXT Computer.
- 32:32other one, Doom.
- 32:33The, one of the greatest computer games of all time, one that
- 32:38is, literally game-changing.
- 32:40Play on words, I suppose, but literally changes the game industry
- 32:45from this, this old pixelated, , side-scrolling business to something
- 32:49that's more three-dimensional, shooting, gory, violent.
- 32:52Like this is a new age in gaming, and Steve Jobs not care for it being built
- 32:59on a NeXT Computer with NeXT Software because he just didn't like games.
- 33:03It wasn't his thing.
- 33:04And he didn't see games as something to be taken seriously.
- 33:08He wanted this computer to be used for scientific revolutions
- 33:12and medical discoveries.
- 33:15so another big mistake, they missed out.
- 33:16Doom had the, they, the Doom creators went to NeXT Computer and offered to put,
- 33:21made on a NeXT Computer, like an opening screen on Doom, and they said, "No, forget
- 33:25it." So another big missed opportunity.
- 33:28What is the lesson from all this?
- 33:30lesson is that sometimes the product that you're making is so far
- 33:38ahead of its time that you're not sure what it can be used for yet.
- 33:41It's easy to get boxed in and to think, "I'm making something for
- 33:45this or that, something that solves this or that problem." But a lot of
- 33:49the time, if you're really at the cutting edge, y- don't really know
- 33:52how it's gonna be adapted out there.
- 33:54And if your users are speaking to you, if somebody's saying, "I just
- 33:57created the World Wide Web," you know, "I just created a major video game,
- 34:02best-selling game on here," that's something to listen to because that
- 34:05shows what your tech is capable of.
- 34:06And this is such a pertinent lesson to today with the massive,
- 34:11the AI revolution, the advances happening week by week with AI.
- 34:16We still don't know for sure how this is gonna be adopted in so many cases.
- 34:19We see that people are now using it for generative purposes, for writing
- 34:24their school essays and so forth.
- 34:26But with this new agentic AI, um, you know, AI bots that can go out there
- 34:30and actually make decisions and execute code, , without you having to approve
- 34:34it, that's a major, major revolution.
- 34:37I mean, that's, that's technologically beyond anything that we've done before.
- 34:41You know, a computer system that can process information on its own
- 34:44and doesn't need human oversight, I mean, that's, that's major.
- 34:49So You know, my s- my suggestion to people who are, at the cutting
- 34:54edge of AI right now is, you know, don't, don't get too boxed in.
- 34:58Like you might-- So you might think you're making AI for medical purposes, AI that
- 35:02can help diagnose X-rays, for example.
- 35:05If you're focused on that, you know, step back and look at the whole picture.
- 35:08If your AI is generating, diagnoses based on medical X-rays, you know, what
- 35:14other imagery purposes, you know… what else can this system be used
- 35:17for that you're not thinking about?
- 35:19And is there some smart kid out there in a dorm room who has been
- 35:23taking your product and using it for something that you didn't anticipate?
- 35:26If they are, listen to them, because that could be the future
- 35:29revolution right there, but maybe you're just not paying attention
- 35:32And one of the interesting ones was NeXT had always used Motorola chips.
- 35:38So next, the next thing that happens, Motorola goes with
- 35:42IBM and they cut out NeXT.
- 35:45So NeXT then go to Intel, but this leads to a far bigger pivot than they'd
- 35:50imagined, and a compromise that Steve was just not used to, and, essentially
- 35:54NeXT becomes a software company
- 35:57Right.
- 35:57It's a comedy of errors, and it's all leading up to this
- 36:00final collapse of NeXT hardware.
- 36:03One of the things that, um, historians remember is that NeXT as a company,
- 36:07they tend to think of the hardware, the, the computer, the cube.
- 36:09That cube is famous in design schools, but really what was the game changer was
- 36:15the software that Steve was developing.
- 36:17But Steve wasn't really, as we just said with Doom and the World Wide Web, Steve
- 36:20was not, paying attention to how his software was being adapted on the market.
- 36:25He only wanted it to be used for what he intended, and he
- 36:28didn't want to give up control.
- 36:30But this comedy of errors just plays out.
- 36:32It's one after the other.
- 36:34If you pick up my book, if you read it, you're gonna see that it's a cascade of
- 36:38failure after failure, and each failure feeds the next failure, and it gets to
- 36:42this snowballing point where the failures are just so massive that the business
- 36:46can't possibly sustain itself anymore.
- 36:49So by the end, I guess it's not the end.
- 36:51By, by the middle, NeXT hardware, there's a reason it no longer exists
- 36:55today, because the company effectively goes bankrupt and he has to sell
- 36:58it off at a fire sale to Canon.
- 37:01so Steve Jobs is he's just, this is rock bottom, and the final
- 37:07error in this whole tragedy is, betting that Motorola, his main chip
- 37:12maker, is gonna stand behind him.
- 37:14The small company, NeXT Computer.
- 37:16If you're making chips, that's a scaled, massive business.
- 37:19You're working on billion-dollar contracts, and just because Steve Jobs
- 37:22comes along with his NeXT Computer that's selling 100 a month doesn't
- 37:25mean that you're gonna drop your other, contracts out there and just
- 37:29suddenly want to work with Steve Jobs.
- 37:30It's just not how the market works, and this is a lesson
- 37:33that Steve also had to absorb.
- 37:36What happened in the end was that Motorola just dumped NeXT Computer.
- 37:41They decided, pure business decision, cold, calculated.
- 37:44They decided that they're gonna go, with this new PowerPC being
- 37:48designed by Apple and IBM.
- 37:51It's the, these two, Apple and IBM were enemies and competitors, but
- 37:54they teamed up at this one point.
- 37:56And by this time, the writing is on the wall.
- 37:58Every single NeXT executive that the hardware business is dead.
- 38:03We don't have a chip.
- 38:04A chip is the engine.
- 38:05Without a chip, we're screwed.
- 38:07And they realize, look, we made a lot of major mistakes because at this point,
- 38:11NeXT Computer is about eight or nine years old it's well into its business cycles.
- 38:16And they still haven't achieved the scale.
- 38:19They still don't have the sales.
- 38:20They don't have what they need.
- 38:22And so why would anybody in their right mind look at NeXT Computer
- 38:25and say, "I want to, work with this company that has been small for eight
- 38:31years, that's failed after another"?
- 38:33It's just, it doesn't make any sense.
- 38:35So falls apart.
- 38:36They don't have a chip, and, uh this is when the hardware business ends.
- 38:40So the, , next we're onto h- everything's falling apart.
- 38:44He's, he's really not enjoying it, Steve, here at all.
- 38:47He, he actually is getting most of his fulfillment from Pixar.
- 38:50Between… He was putting $50 million of his personal wealth into
- 38:55Next, $54 million into Pixar, and combined all together, this new CFO comes in
- 39:02and he estimated that he was burning through about 50 to $60 million a year
- 39:06to just keep these businesses alive.
- 39:08So then he recruits his neighbor, his former neighbor, Oracle founder Larry
- 39:13Ellison, to join the board, and he starts to get things together a little bit.
- 39:17And this guy Dominique, this Belgian guy, he brings in a bit of discipline,
- 39:22and they start to get pra- positive practices, so away from the deep
- 39:27shit list towards a more proactive list, and they start to track bugs
- 39:31and develop different types of apps.
- 39:34Maybe we'll mention this period of time where the kinda,
- 39:36the change starts to happen
- 39:38so this is the change.
- 39:39This is where the transformation really hits.
- 39:42It's the end of the hardware business.
- 39:45The hardware business collapsed in 1993, springtime.
- 39:49This is when NeXT Computer becomes a software company.
- 39:52And, why does it become a software company?
- 39:54It's not because Steve Jobs loves this software necessarily.
- 39:58It's just a matter of survival.
- 39:59And so they pivot, and they do something finally that everybody's
- 40:04been begging them to do, but that Steve has refused at this point.
- 40:07They start selling enterprise software.
- 40:10So think about this.
- 40:12Steve Jobs, the man in the turtleneck, the man with his brilliant, colorful, devices
- 40:18and iPhone, his brilliant presentations.
- 40:21Can you see this guy walking into Goldman Sachs and standing up there and talking
- 40:26about finance and selling financial engineering to Goldman Sachs, traders?
- 40:31Like, no.
- 40:33Like, totally no.
- 40:34Like, that's, that's something that nobody has ever seen in Steve, I mean,
- 40:38nobody outside of this period of his life.
- 40:40But this point in the 1990s, this is what Steve is doing.
- 40:43He's going to Goldman Sachs.
- 40:45He's going to IBM.
- 40:46He's going to all these big federal bureaucracies, military.
- 40:49He's walking in, and even his physical appearance changes.
- 40:53He's no longer informal Steve, but he's wearing these gray,
- 40:57these, gray and beige suits.
- 40:58You can look it up on YouTube, and he's got like, a formal red tie and
- 41:02he wears white button-down cotton shirts, , that are nicely tailored.
- 41:07He looks like a corporate salesman.
- 41:10And Steve Jobs, like, if he's a corporate salesman, that's how
- 41:14you know he's hit rock bottom.
- 41:16That's not Steve Jobs.
- 41:17That's not who he is.
- 41:18And even the people around him told him, like, "Steve, this is not you. Like, this
- 41:25is not who you are." But Steve knew that he had to survive, that he had to bring in
- 41:31the money, he had to build the business.
- 41:34He only had about three years of cash left, so if this had failed, he would
- 41:39have failed possibly permanently and maybe even been written out of history.
- 41:42He would not be remembered as the genius who we know today, but he
- 41:45would've been remembered as a failure.
- 41:48This is drastic.
- 41:49The stakes are high, and this is the moment where they re- Steve finally
- 41:53concedes that, reality has distorted back, that reality, objective reality exists
- 41:59out there, and Steve has to conform to it.
- 42:02so he finally starts conforming and doing just what he needs to do to
- 42:06keep the business alive, which means building stronger systems, doing
- 42:10basic things, keeping track of bugs.
- 42:12NeXT Computer, for most of its life, did not have a method for
- 42:16keeping track of, keeping track of bugs and errors and so forth.
- 42:20It was a very disorganized company, and finally he brings order to it.
- 42:24And ironically, last point here, this is the, I think one of the greatest
- 42:28lessons for any founder out there.
- 42:31He knows when to step away finally and to, when to a- when
- 42:36to let people, do their job.
- 42:39This is the big lesson of this period.
- 42:41A man named Dominique Trampot, who becomes the CFO, he's a Belgian
- 42:45executive, he comes in and becomes Steve's right-hand man and institutes
- 42:51order in processes, in finances, ensuring that the basics are there, that, how
- 42:56can we get of debt and make a profit?
- 42:59If the company is not profitable, nothing else matters.
- 43:02So it's just basic business logic.
- 43:03And I just have to say, it's also, it's an unsexy lesson.
- 43:09You know, we love the sex appeal of being a founder, those, the hot presentations,
- 43:13like what's the next big thing?
- 43:15But sometimes you just have to sit down and work out the basics.
- 43:19You can't always be that star.
- 43:21You have to know when to pull away from being a star and when to look at
- 43:25your accounting books, when to hire somebody new, when to, kill that debt.
- 43:30If you don't get the basics down, then the stardom is never gonna come.
- 43:35One of the, again, pivots , the many, many pivots of got rid of the Cube.
- 43:40There's a deal with Sun that falls through, 'cause Sun weren't really
- 43:43committed to it, but they end up with this product called WebObjects,
- 43:47which came just out of Steve's desire to allow the developers to just be
- 43:52curious and follow their instincts.
- 43:54And a couple of guys built this new, basically a website over the weekend
- 43:58to track bugs, but it led to this thing they called WebObjects, which essentially
- 44:03became the underpinning of many of the products we use on Apple today.
- 44:08Right, right.
- 44:09WebObjects is a, a forgotten app.
- 44:12You know, like WebObjects is one of those things that existed in its time
- 44:15in the 1990s, forgotten today, but, one of Steve's favorite soft- one
- 44:21of his favorite apps at the time.
- 44:23comes-- Okay, so here's the irony.
- 44:26love the story of WebObjects because I think it encapsulates the many
- 44:30lessons of Steve Jobs in exile.
- 44:32This is software that can create dynamic websites and update them real time, live.
- 44:39Um, you have to remember what the internet was like in the 1990s.
- 44:43These were the, you know-- I mean, I remember it well.
- 44:46I was a kid.
- 44:47These were these old static, uh, you know, these, like, odd colors that clash.
- 44:52Like, people would make their personal websites, and it's, like, pink and green,
- 44:55and then there's, like, a flashing, uh, animated GIF, you know, of an icon,
- 45:00and it's, like, their favorite car.
- 45:01Just, you know, re- like, the, the internet was-- It, it was the Wild
- 45:04West of that day, and people were just fiddling with it, but there was
- 45:07no way to, you know, really build a serious business on the web yet.
- 45:11And Steve Jobs saw that.
- 45:14even said himself that he had abandoned his idea that technology
- 45:18was gonna change the world.
- 45:19He said that this was not gonna change the world, but it will
- 45:22be helpful for businesses.
- 45:23And how will it be helpful?
- 45:25Look at the web today.
- 45:26Look at Amazon.
- 45:27Look at all these online shops, Barnes & Noble.
- 45:29Y- go anywhere on the web, and it's all live, real time, updated.
- 45:34You go in, you type what you want.
- 45:36You, you wanna buy this or that, and then it gives
- 45:38recommendations with an algorithm.
- 45:39Like, is now.
- 45:41Steve Jobs was planning for this 30 years ago.
- 45:45This was exactly what he saw was gonna happen, and that's what WebObjects was.
- 45:49It was software that would create dynamic websites.
- 45:52So why is this so important for the book, for the lessons of the book?
- 45:57The one big takeaway here is that this is the culmination of what NeXT
- 46:04Computer was really meant to do.
- 46:07know, they had ignored the original internet.
- 46:09They had-- Sorry, the web, not the internet.
- 46:11They had ignored the original web created by Tim Berners-Lee.
- 46:14They had ignored Doom.
- 46:15They had released a cube computer that was not selling.
- 46:18But in all those failures, what was adding up was the real purpose of NeXT,
- 46:24and it was that it was a networked it was the software that was set that,
- 46:32, if it had continued on this path, it would've been the software that would
- 46:36have led the transformation from the old age of the static, boring computer
- 46:41to the new age of the hyper-networked internet world that we all live in now.
- 46:47That's the vision of Steve Jobs, and that's what he saw that was
- 46:50just so far ahead of its time.
- 46:53just took, it took a long time to get there because WebObjects was created in
- 46:571996 Next Computer was created in 1985.
- 47:02So that's 11 years to figure out your true purpose in this world.
- 47:07So what does that mean?
- 47:10Like, yeah, so those failures did not go, those failures at NeXT
- 47:16did not go out for no reason.
- 47:19They had a purpose.
- 47:20It's just that it took a lot longer than Steve thought to get there, and
- 47:24if Steve had made decisions differently earlier on, they would've probably
- 47:29arrived at this much earlier and it would've been even more profitable.
- 47:32So it's a complex lesson, but it's a lesson of, a mixture of knowing your
- 47:37timing, knowing your market, knowing the people you need to reach, and
- 47:41knowing which ideas might work sometime in the future versus what works now
- 47:47and what needs to happen right now.
- 47:49So we'll start landing the ship, because there's so many
- 47:52brilliant stories in there.
- 47:53Michael Dell, Dell Computers, he built, he, he… Apple built this
- 47:57for him as basically his online store that saved his company.
- 48:01The or- origins of anybody who's ordered a pizza online all
- 48:04happened through web objects.
- 48:06But one of the big changes was Pixar, because Pixar gave him now a lifeline,
- 48:12and in a way, it kinda quenched that resentment that now he was somebody,
- 48:16he'd made something of himself.
- 48:18He'd vindicated himself in many ways.
- 48:20He still held onto that bad reputation from the Apple days and the NeXT days, but
- 48:26it gave him a different kind of energy.
- 48:28He had children.
- 48:29He'd been married, and there was a huge transformation,
- 48:32personal transformation going on
- 48:35Exactly.
- 48:36Uh, Pixar… Okay, so let me start with this.
- 48:40You know, Steve Jobs, he was not a money man.
- 48:43He was not-- He, he didn't do things for the money.
- 48:45He took his, know, his symbolic salary at Apple was one do- uh, $1 a year.
- 48:51Like, he, he was not, was not opening the books and trying to, to make it big.
- 48:56the people who knew him during this time at Pixar said that money was useful to
- 49:01him because it allowed him to keep score.
- 49:04Um, you know, he, he didn't really wanna be a billionaire.
- 49:06That wasn't his goal in life.
- 49:08once the movie "Toy Story" from Pixar was a major success, and then right
- 49:13after that it had a very risky but very successful IPO, the moment in
- 49:191996 that Steve became a billionaire.
- 49:22He joined the club.
- 49:24And you have to remember, you know, today billionaires are a dime a dozen,
- 49:26but back then, um, there were only a handful of billionaires in America,
- 49:31and one of them was Bill Gates, the richest man in the United States, and
- 49:35the other newcomer was Steve Jobs.
- 49:39Um, so what does this mean?
- 49:41It's not that Steve Jobs is happy to be a billionaire.
- 49:43It's that, "Oh, I am now vindicated. So all the things that I have been doing
- 49:48for the last 15 years, the failures, the, the, you know, the, the ideas
- 49:53that went nowhere, the people who left me, well, finally I can recover and
- 49:58finally I have money in the bank."
- 50:00Um, and there are lots of lessons in here too for founders.
- 50:03You know, I, I think that there's a kinda myth out there that if
- 50:06you're a creative person, you're not supposed to care about the money.
- 50:09That, you know, like caring about money somehow taints or makes dirty your ideas.
- 50:14But no, you have to remember that even the most creative fields are, at their core,
- 50:18they're businesses too, and there's always business logic that applies to them.
- 50:23Business means you have to have money in your bank account.
- 50:26You have to be profitable because that money, it's not what you
- 50:29live for, but it's a tool.
- 50:31It shows you what the market thinks of your idea.
- 50:34If there's good feedback, you have money in the bank.
- 50:36If there's bad feedback, you lose money.
- 50:39That's what Steve learned, and that's the feedback he got.
- 50:41He became a billionaire because "Toy Story" was brilliant.
- 50:44And why was "Toy Story" brilliant?
- 50:46It was because he stepped away from Pixar and allowed his people to do their work
- 50:52Last one for you, 'cause I know you have a baby about to wake up, and
- 50:56I know how precious your time is.
- 50:58And you and your wife
- 50:59with the baby.
- 51:00will… Your, your wife will be cursing me for taking your time,
- 51:03your precious time when she's asleep.
- 51:05But the last one, which was an important one, is it's these transitions
- 51:10that I love that you did, Geoffrey.
- 51:11It's not like the story of Steve Jobs is he was fired from Apple,
- 51:16he disappeared, he found himself, and he came back as this hero.
- 51:19But it's these little stories like the serendipity of a
- 51:23phone call that saved Apple.
- 51:25So this was, a developer inside NeXT who hears that Apple need a operating system.
- 51:32Their operating system, Copeland or Copland, was failing.
- 51:36They had hired an IBM executive, the Iron Grandmother.
- 51:40She was out there looking for a new operating system.
- 51:44She'd been asked to this by Gil Amelio, the chairman of Apple, who'd
- 51:47become interim CEO, and this guy just goes, "Why don't we just call Apple?"
- 51:52It wasn't Steve's idea, which was really interesting, and this changed
- 51:56the fate and the course of history
- 51:58You know, one of the incredible things about this book that I
- 52:02found is that, Steve-- We all know what happens at the end.
- 52:05We know that Steve Jobs returns to Apple and creates the renaissance.
- 52:09I mean, that's not the question here.
- 52:11But, around that time when he was returning to Apple, Steve gave an
- 52:16interview to Time Magazine, he said something remarkable in there that it
- 52:20actually sent shivers down my spine.
- 52:22He said, "I don't believe that anything in life happens by chance, that there
- 52:27is a design, that there is an order to it." And that's my paraphrase.
- 52:31That's not the literal quote.
- 52:33But I'm sitting there thinking, once I got to that stage in the story, I'm
- 52:37sitting there thinking, "Okay, look at this entire story of NeXT Computer.
- 52:41It's failure after failure.
- 52:42It's disaster.
- 52:43It's, a company going down in flames.
- 52:45It's the reputation of Steve Jobs going down in flames." It's like everything
- 52:48that can go wrong does go wrong at NeXT Computer, and yet there are a series
- 52:55of things that people do, not always Steve, but also just random people
- 53:00that, put the play back in a different order, and he ends up, through these
- 53:06series of decisions, returning to Apple and igniting the Apple renaissance,
- 53:11creating the most valuable company in the world, the one that we all know today.
- 53:16I'm sitting there thinking like, this is Steve reflecting on the meaning
- 53:18of life and why things happen as they do, and it really is remarkable, if
- 53:23any of these little decisions had gone differently at any stage of the story,
- 53:29Steve would be written out of history.
- 53:31He would be completely forgotten today, and he would not be the
- 53:34person we read about in business case studies, for example.
- 53:37It's just, it would be a different world.
- 53:40And yet, at one point, there's one, know, like a mid-level, mid-senior level
- 53:46employee at NeXT who just says, "Look, Apple is gonna acquire another company.
- 53:51They're looking to buy an operating system. How about I just pick up the phone
- 53:55and call Apple and tell them more about NeXTstep and what we're doing?" Steve is
- 53:59actually neglecting NeXT at this point, so he's all focused on Pixar and like
- 54:03he, he doesn't wanna return to Apple.
- 54:04Laurene, his wife, doesn't want to, want him to return to Apple.
- 54:08The place, it's tainted.
- 54:09It's doing poorly.
- 54:11It's not the Apple that he knew back when he founded it.
- 54:13It's not a place that he wants to go to.
- 54:16And it's just, it's this random employee just picking up the phone, getting the
- 54:20attention of Apple, and then suddenly an executive nicknamed the Iron
- 54:24Grandmother, so Ellen Hancock is her name.
- 54:27Everybody said she was smart.
- 54:29She's the kind of person you want looking at this kind of thing, and
- 54:32she's the one who goes in and says, "Okay, let's take a look at NeXT."
- 54:35And that creates the cascade of events that lead to Steve when
- 54:42he has uncertainty about it that lead to Steve returning to Apple
- 54:48Beautiful, man.
- 54:49I think we'll leave it there because there is so many lessons in there, and
- 54:53I… If you get the book, and I highly recommend you do read to the end, 'cause
- 54:58Geoffrey does a great job of extracting the lessons from the story as well.
- 55:01And you know, Geoffrey, as much as I do, so many people don't get
- 55:04to the end of the book they intend
- 55:05Oh
- 55:06to.
- 55:06yeah.
- 55:06But get to the end of this book.
- 55:08It's there.
- 55:09Oh, it's where it's… I've after where I'm after putting it.
- 55:11It's here beside me.
- 55:12It's a brilliant book.
- 55:13This is not the cover.
- 55:14I've an early access cover.
- 55:16Steve Jobs in Exile, absolute brilliant story, and you do a brilliant job.
- 55:20And we'll be back again when the baby's a little bit older to cover
- 55:23Samsung Rising as well, one of your previous books that I absolutely love.
- 55:27before I finish, before I finish off, just let's tell people where they can find you
- 55:33I'm at X. My handle is @Geoffrey_Cain, so my name G-E-O-F-F-R-E-Y
- 55:38underscore Cain C-A-I-N.
- 55:42on LinkedIn and it's GCain.
- 55:45And then I'm also at my website geoffreycain.net where I post updates.
- 55:49And also check out my Substack, The Burner Files, which is my
- 55:53name geoffreycain.substack.com
- 55:55It's been an absolute pleasure, and I'm so grateful for you taking the time out
- 55:59this very precious time that you have.
- 56:01Author of Steve Jobs in Exile, Geoffrey Cain, thank you for joining us
- 56:05Thank you, Aidan.
- 56:06Great to be here
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