Chapter 22 The sixth quarter is over

In the last quarter of 1984, although Apple's sales did not reach the expected $1 billion, the figure of $698.3 million was also very impressive.However, 70% of all sales revenue comes from Apple II, which is not good news for Jobs and his Macintosh. Seeing the figure of 698.3 million, most people believed that Apple in 1985 would be more successful. There was an atmosphere of blind optimism at Apple. Only Sculley and Jobs understood the seriousness of the problem.Their previous estimates of $1 billion and monthly sales of 80,000 units far exceeded actual sales. Even in the Christmas season, the Macintosh could only sell 20,000 units per month.The production capacity that was hurriedly expanded and increased has now become a burden, and unsold Macintosh computers are piled up everywhere in the warehouse.

The development of Macintosh's supporting software and hardware was not smooth.The Macintosh Office suite (including a network file server, a set of LAN equipment, a network laser printer and related software) that Jobs had placed high hopes on had encountered many difficulties in the development, and the overly advanced design made the progress repeatedly delayed.Sculley was very distressed that Jobs could not control the development progress of Macintosh Office, and he and Jobs quarreled with Jobs several times over the release time of the product.Jobs' management of the Macintosh team became more and more simple and impatient, and the dissatisfaction of the team employees increased.The external environment is also not optimistic. Because of the advantages of IBM PC in market share, software manufacturers are more willing to develop office software for IBM PC than to write programs for the incompatible Macintosh.

Departmental disputes within the company intensified. The employees of the Apple II team almost became the most wronged people in the company.They couldn't figure out why the products they developed generated most of the company's sales and profits, but they couldn't get even half the resources of the Macintosh team.Many people think that Jobs is abusing his authority and taking good resources to his Macintosh team. The average income of Macintosh engineers is also much higher than that of Apple II engineers.Woz, who has deep feelings for Apple II, was very angry about this. He believed that Apple had lost the right direction and was giving up such a great product as Apple II.

In early 1985, Woz left the company.Some middle and senior managers have also left. In all, dozens of engineers resigned from the Apple II team and the Macintosh team.There was a shortage of staff in every department, and the org chart posted on the wall of Sculley's office had the words "to be hired" (TBH) marked in many places. Due to the backlog of inventory, by January 1985, distributors no longer purchased from Apple in order to digest the existing inventory. Macintosh sales began to plummet. Jobs knocked on the door of Sculley's office in a hurry and said loudly: "I don't understand, I really don't understand, why can't the Macintosh sell? Everything is going smoothly. But I just can't figure out why the sales are not going up." go."

At this time, Scully had gradually come to his senses.He realized what a mistake it had been to ignore Alan Kay's advice.Although Jobs refused to admit it, the Macintosh product itself did have many flaws.Worst of all, his and Jobs' predictions about sales trends were far from the truth. Sculley did not answer Jobs' question.He has been thinking.Apple is at the most critical moment. If strong measures are not taken, the entire company may be destroyed. The decline in sales and poor performance have exposed Apple's internal backlog one after another.Jobs' sloppy and rude management has also become the object of many middle and senior managers to vent their dissatisfaction.

At a manager meeting, many middle managers expressed their dissatisfaction with the company's current situation.One manager threatened to resign. He said in front of everyone: "Who the hell is running this company? If it's Sculley, why does Jobs always come here and tell us what to do?" Sculley gave each manager a piece of paper and a pencil and asked them to draw what they wanted the company to look like.The test results are sad.Someone drew Sculley and Jobs vying to steer the same boat.Another draws Jobs with two hats in front of him—the chairman of the board and general manager of the Macintosh team—and Jobs has to choose one of them.

Sculley had to say to Jobs several times: "If you continue to control everyone and ask everything, we can't work together. You should concentrate on Macintosh affairs." At the same time, several people from the Macintosh department also came to complain that Jobs was in command of the department.Jobs originally wanted the Macintosh division to have no more than 100 people.But now the Macintosh team has become a bloated organization with hundreds of people, and it is no longer as efficient as it was at the beginning.The old problems of Jobs' changing day and night are particularly prominent in the bloated team, which makes many people at a loss.

Every time Sculley brought these complaints to Jobs, Jobs always said, "Don't worry, calm down. I know what we're doing. Believe me, this is the right path." "But employees didn't agree that this was the right path," Sculley said. "They don't understand," said Jobs contemptuously. The worse things went for the company, the more active Jobs became.Jobs even told others that he was the only one who could save the company.Sculley felt that there was less and less agreement between himself and Jobs, and that Jobs was no longer fit to manage the Macintosh team.

Sculley went to Jobs and said to him, "No one admires your talent and vision like I do. I would change my career to work with you, Steve. But this situation is not right now. If you If there is no way to improve, management must change. We have become best friends with each other for the past two years. But I have completely lost faith in the way you are currently running the Macintosh division. Jobs showed a surprised expression: "Really? Okay. Then can you spend a little more time and work with me?" Indeed, Sculley has not spent so much time working with Jobs in recent months, nor has he had much time to guide and develop Jobs' management ability.But that has nothing to do with the current status quo.Sculley's biggest headache now is how to eliminate Jobs' interference with the company's internal management order as soon as possible.

Sculley said, "What I want you to know is that I intend to tell the board of directors about this. I intend to recommend to the board that you step down from your position of managing the Macintosh division. Before informing the board, I want you to know about it." Stunned, Jobs looked at Sculley and said, "I can't believe you're even trying to do this." Sculley said: "Yes, I want to do it. I think you should focus on the chairmanship of the board, and at the same time focus on new technologies, new products in the future. We have to solve the problems that exist in the Macintosh division."

Jobs was outraged.He jumped up from his seat and paced.His eyes were full of provocation. "If you do that, you're going to destroy the whole company," he said angrily. "I'm the only one who fully understands how this company is made and run. I don't think you understand everything." "You've gone too far from what a day-to-day manager should do," Sculley said. "If I continue to pamper you, we won't have any new product launches, and we won't have any more success." The former "dynamic duo" can no longer find a common language.Jobs couldn't believe why a few months ago, he was still a good partner who cooperated seamlessly, but a few months later, he became an antagonist who could not coexist. On April 10, 1985, with Markkula's support in advance, Sculley brought Jobs' question to the board.Sculley told the directors: "I am trying to persuade Jobs to give up his position as general manager of the Macintosh division. If you support me, I will take full responsibility for the company's future operations. If you do not support me, it will be very difficult for us to turn the situation around. Perhaps, soon you will find a new CEO to replace me." Sculley was ready to be fired by the board.He further explained to the board: "It's really hard to do things when the two are in power at the same time, and Jobs is both the chairman of the board and the general manager of the Macintosh division. Jobs has to accept that Sculley is the CEO. He is the manager of the company." Sculley suggested that the Frenchman Jean-Louis Gassee should succeed Jobs in running the Macintosh division. The board meeting runs from 6:00 p.m. to 9:30 p.m., continues at 9:00 p.m. the next day, and ends at 3:30 a.m. the next day.The directors talked to Sculley and Jobs separately, trying to find a better solution. In the end, the board of directors, which failed to try to mediate, sided with Sculley and decided to remove Jobs from the position of general manager of the Macintosh division and replace him with Cassie, but retained Jobs' title of chairman of the board.The board also authorized Sculley to implement the appointment and removal plan. After the meeting, Markkula called Sculley and reminded him: "You know, Jobs will never be convinced. He will not accept this change. Someone should talk to Jobs. I am afraid that Jobs is really not convinced." will accept that fact." Consistent with Markkula's prediction, Jobs remained in a state of rage and mania for the next few days.He was very emotional and said to his colleagues: "I don't believe what happened. I don't believe it. Why? Why did Sculley do this to me? I can't believe he did this to me. He betrayed me. I will not forgive him. " A few days later, Jobs, who had calmed down, found Sculley and proposed a settlement plan: "Why can't I keep my current position? If I keep my position as general manager of Macintosh, then I will promise not to interfere in company affairs. , leave enough space for you to manage the company. Actually, I just want a chance to prove myself." Sculley turned Jobs down.He felt that this was the end of the matter, and there was no going back. In early May, Jobs approached Sculley again and said, "I think you really messed up. You were really good in the first year, and everything was perfect. But something happened. I can't explain what happened. What, but it must have happened at the end of 1984. I think I knew what Apple had to do, and I'm very disappointed that we didn't do what I thought it would." Still patient enough, Sculley said to Jobs, "Steve, let's sit down and think about it. I think it was my fault for not taking the time to coach and discipline you. You didn't make it on time." Launched Macintosh Office, and didn't really listen to the market's feedback to see what users really want. You don't accept other people's suggestions about compatibility with IBM PCs. Maybe, you don't believe these at all, but in the current market, the share of IBM PCs Indeed, much more than apples." "Well, your analysis sounds very brilliant." Jobs teased, "When you came to be CEO, I let you see the company's situation. If I am not a good manager, then the great Macintosh computer is How did you design it? If you are a good manager, how did you create the current inventory situation?" Sculley was at a loss for words for a moment, not knowing what to say.