During a 2007 onstage conversation at a conference, Steve Jobs revived one of his favorite stories about Apple Inc.’s (NASDAQ:AAPL) former CEO, Gil Amelio. Jobs said Amelio once described the Cupertino giant as "a ship with a hole in the bottom, leaking water" and cast himself as steering it in the right direction.
Jobs Turned Amelio Into A Punchline
The line, delivered by Jobs at D5, captured how little faith he had in the man who ran Apple before his return. In Walter Isaacson's biography, Jobs said he thought Amelio, who served as CEO for exactly 500 days, from February 2, 1996, to July 9, 1997, was a "bozo," "sort of clueless" and later a "buffoon."
Amelio's brief reign, however, also gave Jobs a harsh education in leadership failure. Amelio later recalled telling Jobs, "I'll never be as charismatic as you are, and you'll never be as good of an operating manager as I am."
The exchange sharpened a lesson Jobs already believed. A creative company in crisis needed more than a steady operator. Jobs had told Amelio that Apple needed "a strong leader" who could rally employees, developers, users and the press.
Apple's Chaos Strengthened Jobs' Core Beliefs
The bigger lesson involved focus. Apple had drifted into too many products, too many priorities and too many half-finished technical fixes. The failed Copland operating system became one symbol of that sprawl. Wired later wrote that Apple had tried and failed "spectacularly" to ship it.
When Jobs took control in 1997, he moved in the opposite direction. He simplified Apple's lineup, cut projects and forced the company back to a small number of core bets. He also made hard calls that Amelio's ship analogy seemed to avoid, including the 1997 Microsoft agreement that brought a $150 million investment and a renewed Office commitment for the Mac.
Even A Failed CEO Bought Time
Yet the Amelio era was not worthless. Histories of the period note that Amelio and CFO Fred Anderson raised $661 million in debentures and bought Apple time when insolvency loomed. That financial breathing room mattered and even though Jobs mocked the captain, he still inherited a company that remained afloat long enough to be rebuilt.
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