You canât assume acquisition will mean acculturation. Thatâs why Apple doesnât really buy companies with large teams. They only acquire specific teams or technologies, usually very early in their life cycle when theyâre pre-revenue. That way they can easily be absorbed and Apple never has to worry about culture. They can also skip the inevitable duplication of functions between existing teams like finance, legal, and sales, or the painful process of integrating one large team into another. With the notable exception of the Beats acquisition, Apple has been laser focused on filling small, specialized technology gaps in their evolving products rather than acquiring whole new lines of business.
All acquisitions come down to what youâre trying to do when youâre buying a companyâdo you want to buy a team? Technology? Patents? Product? Customer base? Business (that is, revenue)? A brand? Some other strategic assets?
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One of the hardest parts of management is letting go. Not doing the work yourself. You have to temper your fear that becoming more hands-off will cause the product to suffer or the project to fail. You have to trust your teamâgive them breathing room to be creative and opportunities to shine.
But you canât overdo itâyou canât create so much space that you lose track of whatâs going on or are surprised by what the product becomes. You canât let it slide into mediocrity because youâre worried about seeming overbearing. Even if your hands arenât on the product, they should still be on the wheel.
Examining the product in great detail and caring deeply about the quality of what your team is producing is not micromanagement. Thatâs exactly what you should be doing. I remember Steve Jobs bringing out a jewelerâs loupe and looking at individual pixels on a screen to make sure the user interface graphics were properly drawn. He showed the same level of attention to every piece of hardware, every word on the packaging. Thatâs how we learned the level of detail that was expected at Apple. And thatâs what we started to expect of ourselves.
As a manager, you should be focused on making sure the team is producing the best possible product. The outcome is your business. How the team reaches that outcome is the teamâs business. When you get deep into the teamâs process of doing work rather than the actual work that results from it, thatâs when you dive headfirst into micromanagement. (Of course sometimes it turns out that the process is flawed and leads to bad outcomes. In that case, the manager should feel free to dive in and revise the process. Thatâs the managerâs job, too.)
One reason we managed to put together an outstanding team to create the iPod was that our team could get relatively outsized stock and bonus plans that they couldnât get anywhere else at Apple. The other important reason was that we had Steve Jobs fully behind us. Those two things allowed us to recruit amazing peopleâeven though we couldnât tell them what theyâd be working on before they signed onâand survive the internal antibodies. Steve
gave our tiny team an unfair advantageâgave us air cover and dropped bombs if anyone messed with us. There were times when the internal antibodies at Apple tried to expel us from the organizationâweâd constantly hear âWe have other priorities, weâll help you if we have time.â Or âWhy are we doing this projectâitâs not core to our business.â But as long as our team was making reasonable (or unreasonable but important) requests, the teams who were stalling us would get a call from Steve. âIf theyâre asking for something, then give it to them for Christâs sake! This is very important for the company!
The best way to share and embed cultural DNA is person to person. When youâre growing fast, the new people you just hired most likely have some responsibility to hire as well, so a week of orientation isnât going to cut it.
If you have fifty people who understand your culture and add a hundred who donât, you will lose that culture. Itâs just math.
So when bringing in new employeesâespecially execsâyou shouldnât just throw them in the deep end, hand them a branded company notebook, and think youâre done. The first month or two are crucial and should be a period of positive micromanagement. Donât worry about getting too in the weeds or not giving them enough freedom. Not at first. A brand-new person needs all the help they can get to become really well integrated. Explain how you do things in detail so they donât make mistakes and alienate the rest of the team right off the bat. Talk to them about whatâs working and what isnât, what you would do in their position, whatâs encouraged and whatâs verboten, who to ask for help and who to treat with kid gloves.
Thatâs the best way to immerse someone in the culture, style, and processes of a team. Give them the push they need to start running with the pack rather than leaving them standing on the starting line, reading some docs, hoping theyâll catch up.
Always remember that itâs scary joining a new team. Not knowing anyone. Not knowing if youâll fit in. Not knowing if youâll succeed.
Thatâs why I started doing brown-bag lunches with the CEO. Matt did them too. Every two to four weeks, weâd gather a crew of 15â25 new hires and existing employees and have an informal lunch. We tried to cross-pollinate different people from different groups, a good mix from around the company. No managers, no executives, no keynote presentations. Just an
opportunity for them to get to know the bogeyman at the top and for me to get to know them. They asked me about our products, our policies, about me and Matt and our history at Apple. About why we didnât allow massages, about why we had so many code names. [See also: Chapter 6.4: Fuck Massages.] And I asked about what they were excited about, what they were working on, why they joined.
It was my chance to highlight why their role was important, to talk about how their teamâs goals powered our company goals, about our culture and our products and new projects and what was going right and what wasnât. New employees had the chance to come directly to me with their questions as well as meet existing employees who were already steeped in our culture, who could help them and lead by example.
Any employee could come to five lunches a year. And each lunch was a cultural inoculation, a vaccine against indifference and apathy, against thinking that what you do doesnât matter and that nobody at the top knows who you are.
So the dating phase of any potential acquisition is crucial. You have to check the sink for dirty dishes. You have to spot the toenail on the dining table. Look at the reporting structure and the way they hire and fire employees. Dig into what perks everyone gets. Talk about management philosophy. Make concrete plans for exactly whatâs going to happen postsale.
Are you going to integrate or keep your cultures separate? What will you do about overlap? Where will this team go? Who will work on this product?
But always know that you wonât be able to predict the future. Things will changeâmaybe in your favor, maybe not. And so, eventually, you just have to do it. Sign on the dotted line. Trust that itâll work out.
My advice is to always be cautiously optimistic. Trust, but verify.
Assume people have the best intentions, then make sure theyâre following through on them. And take the risk. Leap. Buy the company. Sell the company. Or do neither. Just follow your gut and donât be scared (or, rather, be scared but make the decision anyway).
A lot of companies acquire others without much sensitivity regarding what theyâre really buying. They think theyâre getting physical assets or manufacturing assets or intellectual property (in some industries, thatâs more true than in others). In most cases, what theyâre really acquiring is people. In a creative business, thatâs where the value truly lies.