Title: First Slices
URL: http://viewfromthemountain.typepad.com/applepeels/2005/02/apple_peels.html
Counting the two years that I spent helping to open computer stores in Canada's maritime provinces back in the early eighties, nearly twenty-two of my fifty-six years have revolved around Apple Computer. I was there in the wonderful early years and during the challenging times when the question was whether or not Apple would survive. I even managed to stay long enough for the good times to return if you measure good times by stock price. Of course there is a whole lot more to a company than their stock price.

That of course is the whole point of this blog. I still own a significant amount of Apple stock, and I would like nothing more than to see the company continue to be successful. Unfortunately, I, like many of the others who have left Apple before me, believe that Apple could be a much greater company with a few changes. Hopefully this blog might help create an atmosphere where at least the problems are discussed instead of being hidden.

Title: Is The Opportunity Past?
URL: http://viewfromthemountain.typepad.com/applepeels/2005/02/is_the_opportun.html
There were powerful arguments for adding OS X to the mix of federal operating systems. Today I wonder if the time for wide adoption of OS X in the US Government might have passed. I think this has happened even though OS X continues to grow in sophistication and there has been a valiant effort by Apple field people to get the message across.

My belief is that the time for Apple to really go after the US Government was three years ago. Organizations such the US Air Force and others were openly skeptical of Microsoft's ability to deliver a secure operating system.

I keep seeing the Linux freight train headed towards the enterprise desktop and the combination of Intel hardware and the customer driven OS modifications in Linux may doom Apple to a small piece of the enterprise space.

Title: Connecting the Dots
URL: http://viewfromthemountain.typepad.com/applepeels/2005/02/connecting_the_.html
Years ago Apple was successful in corporations. A lot of the success came from newly graduated college students carrying their Apple computers to work. Computers were new and anyone with computer knowledge was well respected. There were at one time lots of enterprise customers using Apple computers for a wide variety of things.

Today Apple's products look great but there are some real differences in enterprise computing that might make it much harder than the first time Apple stormed the enterprise.

Both Apple and enterprise computing have evolved. Both are more centrally controlled. Very little goes on at Apple that isn't blessed from the top.

In general, you can sum up Apple's business practices as "Do it Apple's way or hit the highway."

What I have seen in the limited cases where Apple could muster the resources is tremendous success when Apple field people with exceptional technical knowledge can work over time with customers to prove the capability of Apple products. This has opened many doors for Apple products.

Unfortunately to get to the next level requires skills that are foreign to Apple corporate. Those skills are listening to the customer, following up with the customer, and ensuring that the customer is successful. Partnering with customers is how you get your product made part of solutions that you could never dream of by yourself.

The choice is Apple's, invest in the enterprise, build real relationships at high levels or keep hoping that a phone call might turn up a customer that will change the dynamics of the enterprise market.

Title: Chasing Away Your Best People
URL: http://viewfromthemountain.typepad.com/applepeels/2005/02/chasing_away_yo.html
Jef Raskin is dead. A lot of folks credit him with much of the inspiration for the original Macintosh. Yet he left Apple in 1982. Leaving Apple is not uncommon. Apple is not a place for people who aren't yes men. Apple is place to keep your head down and treat everything you hear from corporate as gospel.

Not only that, but there is no bad news in the world of Apple. There is plenty of covering your rear and very little decision making outside of a handful of people. It's hard to be a star at Apple since all the star power is focused on one person.

Title: "Employee Development"
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/employee_develo.html
Any company that plans long term success needs to develop its people, or at least one would think so. You often hear companies mouth the words, that their people are their greatest assets. Apple has been in business for a long time. Has Apple done a good job of developing its own employees? Are corporate values driving Apple's success or is the iPod just masking Apple's failure as a computer company. Do people leave Apple happy and willing to be a part of the Apple extended family in their retirement? Are Apple employees really valued for their skills? Does Apple really listen to customers and employees? Are the products that Apple delivers the result of extensive customer testing or are they just thrown over the wall on sometimes unsuspecting customers?

Apple is all about Apple and never about the employee. anyone who has every worked for Apple below the executive level has likely given more than they gotten back because it is all about Apple. That doesn't mean that working at Apple wasn't a great trip for almost all of them. They will tell you it was an amazing journey. The unfortunate thing is that the journey almost always ends with disillusionment and sadness instead of pride of accomplishment.

Title: Whacky Numbers
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/whacky_numbers.html
If you have been a sales person, you know how important it is to get a fair goal and a good commission plan. A good commission plan can be a great motivator, a bad one which pays you hardly anything can be a terrible drag on morale.

In order to have a fair goal, you need a couple of things. One is you need some good historical numbers. Two you have to have an ethical application of resources along with a fair consideration of trends which are relevant to what you are selling.

Even if you get a fair goal, you still need a compensation system that allows you to see, understand, and verify your numbers. Of course you also need a way for the company to collect numbers.

Collecting numbers is easy if all your business is direct, it is much more challenging if resellers are mixed in with direct especially if the resellers are competing with the direct business.

Unfortunately all of this really does not matter very much if the company has embarked on a program of commission control which is likely high on the agenda at Apple.

Title: Down The Rabbit Hole
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/down_the_rabbit.html
Apple appears to be on verge of creating a minor firestorm for their actions regarding the information leaked regarding their future products. I agree with those observers who say that Apple has every right to enforce their non-disclosure agreement. However, as many have also mentioned there are some larger issues in play here. Unless I have misunderstood the issue, Apple employees leaked the information. Apple has been unable to find out which Apple employees broke their NDA.

Now they are going after people who did not sign Apple non-disclosures. In essence Apple can't control their own people so they want the courts to help them. I like many others think this is wrong and has the potential to harm the blogging movement.

It is hard to tell if I am still too close to the Apple situation to be objective, but I know that Apple can be more successful with their computer products. The current gating factor is the company culture and the management. The interest at looking a little closer at Apple that this recent trade secrets story has created is certainly positive in my mind.

I want to have a choice beyond the Windows and Linux world. I am not certain that Apple under its current management is going to sustain that choice. I also want my remaining share of Apple stock to grow in value.

The consumer public is certainly fickle. Apple is riding something of a bubble in consumer enthusiasm. Apple is really good at deflating its own bubbles. Attacking web sites because Apple has created an employee culture that wants to leak information is something that Apple should be ashamed of, especially if it ends up destroying the very valuable contribution that blogging and websites are making to our society. We need citizen journalism more than we need Apple to fire a few leaky employees. Perhaps if some of those employees were treated a little better they might be a little more loyal to Apple.

Title: The Real Apple
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/the_real_apple.html
There's not much doubt in my mind that Apple's continuing pursuit of information from web journalists will be a bad thing for the company. It comes at a time when on the surface things look really good for Apple One of the things you learn quickly as an Apple employee (now ex-employee) is that the worst time to be an employee or to expect reasonable behavoir from Apple is when the company is doing really well.

That's when the well known arrogance comes out. The arrogance begets some really self-destructive behavoir, but this is Apple and humility is far from a core value.

Title: The Apple Problem
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/the_apple_probl.html
Maybe I am tilting at windmills, hoping that some sunshine might change Apple for the better. Having lived inside Apple for nearly twenty years, I was probably just as much under the influence the reality distortion zone as the most insane of the Mac faithful. I mean I even wrote Steve a nice e-mail after I was forced out of the company in the midst of my team tripling Apple sales in the Federal Government in a four year period. In most companies strong performance is rewarded. At Apple anything that challenges the power structure is a threat and is stamped out. I was a threat to some people above me and so I was forced out. As I sit here typing this on an Apple Powerbook, I wonder what would Apple have to do to really anger the faithful. Well if they stop making cool products, obviously it is over for Apple. As a company Apple is far too much trouble to deal with for anything less than extraordinary products.

Is an attack on the Constitution of the United States enough to change people's minds.

Title: Hard to Believe
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/hard_to_believe.html
II was hoping that perhaps I might be done writing about Apple for a while. Then I saw CNET's news.com, "Apple execs underpaid, board says." I just had to respond.

My heart absolutely bleeds for these executives. I worked at Apple for nearly twenty years. Consistently the people doing the real work at Apple have been shortchanged while the executives have been swimming in cash, mostly from options. The scary thing is that these same executives have been unable to get able Apple beyond 2% market share in computers. In April 2004 six Apple executives cashed in $46M in options according to a story in tech-edge. At the time Apple according to tech-edge had the following comment.

"A major part of Apple's senior management compensation is based on stock appreciation," Apple said in a statement. "It's great to see some members of our management team get rewarded for their incredibly hard work by selling some of their stock."

According to tech-edge, Tim Cook had a net gain of $14.75 million and Jonathan Rubinstein's gains were $12.67 million. Other executives gained between $10.11 million and $2.67 million. Then according to another story an additional $65 million in executive options were sold in January. In most worlds this would be a lot money. Apparently not at Apple, since we have learned from CNET that the board thinks the executives are underpaid.

Title: Taking the Rosy Colored Glasses Off
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/taking_the_rosy.html
USA Today published an article today "Apple plans to work on making exec compensation more competitive." Apple is quoted as saying the following.

"At current levels, the company's executive compensation program is not competitive," Apple said in the Securities and Exchange Commission filing.

The article went on to say the following.

Apple will ask shareholders at its April 21 annual meeting to approve the cash bonus plan.

Jobs' success in harnessing the iPod's appeal to sell other products helped first-quarter Mac shipments rise to the highest level in four years.

Apple's 16% growth in U.S. PC shipments in 2004 was faster than the market's 11%.

A little closer look at the numbers might lead someone to question whether the Apple executives are doing such a great job in their core business, computers.

Title: More Comment on Apple Secret Mania
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/more_comment_on.html
The real truth is that this is all about Apple marketing buzz. Steve doesn't want anyone stealing his thunder. These aren't trade secrets. The buzz created by these web sites ends up making money for Apple not costing them money. As Business Week said yesterday in "Memo to Apple: Lay Off Your Fans," Apple is wrong to attack these Apple fans. Of course as others have said, those within the reality distortion field will defend Apple actions no matter what. The rest of us just have to make certain that the glare of the iPod doesn't blind people to Apple's heavy-handed attempt to find their own leaking employees by attacking legitimate Internet news sources.
Title: The Abusive Company
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/the_abusive_com.html
Once you are out of Apple, you realize that it is possible to have had an abusive relationship with your employer.

The tactics used within Apple will one day be a business case study of how not to run a company. It's the truth, if you're an employee at Apple and don't recognize this, you're either new or unconsciously not paying attention to what is happening around you. Apple is not a company built on fairness, employee development, or employee loyalty. Apple is a feudal society built on inequality and is run for the pleasure of Steve and a few close associates.

I just hope the stocks stays up until I get rid of my stock. My next hope is that Linux gets good enough so I will never have to buy another Apple OS or hardware product. It still amazes me that a company with the world's best OS and some of the greatest hardware ever built has managed to not even place in the race.

Title: Ethics at Apple
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/ethics_at_apple.html
Of course Apple has a different standard of ethics. The gold standard at Apple is that if it is good for the executives, then it must be good for the employees, the company, and the country. Of course there will be no public relations disaster for Apple since a wall of secrecy protects the executives and keeps the employees in line. Somehow I doubt that this is going to change. This type of behavior is ingrained at Apple and as long as the stock price is fine, the board and the executives will enjoy their riches while a different kind of ethics rules at Apple.
Title: Switching from Apple
Title: http://viewfromthemountain.typepad.com/applepeels/2005/03/swithcing_from_.html
It is interesting to read about some talk in the Apple user community regarding switching from the Mac platform. My first thought is that this is not the kind of talk that a company with 2% worldwide market share needs to hear. In Apple's case, this is exactly the kind of talk that they hear. Paying close attention now might help to prevent the kind of disaster where the computers we all love are pushed to the brink of extinction. We all know Apple in not an open company. They do not have blogs to get feedback from their customers. Apple tightly controls its image and communications. The true Apple strategy is that they make the products they want to make, if customers love them, fine, if not, that's too bad. Very few Apple products come out in a revamped model to meet customer suggestions.

I hope Apple prospers, but the reality is that Apple would have been long gone already without the great base of loyal users out there who have stayed with Apple products in spite of Apple the company.

Title: The Emerging Picture
URL: http://viewfromthemountain.typepad.com/applepeels/2005/03/the_emerging_pi.html

One of the first things that ex-Apple employees figure out is that outside the Apple world, Apple isn't really a very big deal. That doesn't mean that there isn't some iPod buzz around Apple currently, it just means that most people don't follow the Apple news like those of us who have at one time or another been addicted to Apple products. So while many Apple fans follow wind changes in Cupertino, the rest of the world doesn't even know what MacWorld is.

I don't want anyone to think that Apple wasn't a great journey for many years for me and many others. As one recent graduate who chose to work for Microsoft instead of Apple relayed to a friend of mine, Apple is now all about Apple. Now it is never about the employees or employee development. Employees are supposed to sacrifice all for Apple, often for compensation that is below what they could get in other jobs. They stay because they are just as addicted to the tecnology as many of us are. Apple realizes they usually won't leave for better jobs so they don't have to pay as much.

Title: Some Perspective
URL: http://viewfromthemountain.typepad.com/applepeels/2005/04/some_perspectiv.html
In the last few days, ApplePeels has gotten more traffic than it has since I started writing it. Apple is a very difficult company to understand from the outside. If you love the products, like I and many others do, it is really hard to accept the fact that these great products can come from a company that has some practices that many people might find distasteful. That doesn't mean you have to stop loving the products, it just means that the world inside Apple might not be what you thought it was.

I, along with many others who have come and gone at Apple, believe that Apple could have a place in the enterprise market with just a little more effort. It is very challenging to change a consumer company into one that pays even a little attention to the enterprise market. I think it would be worth the effort and would eventually have a major impact on Apple's market share.

Perhaps I'm worrying about nothing and this next release of OS X will be such an outstanding enterprise OS that we'll see that jump in market share that the world's best hardware and software really deserves. That would prove me wrong which would not make me unhappy. Then I could stop writing about Apple and focus on the beach.

 

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