Mission (Im)Possible: How Apple and Microsoft's Purpose Shaped Their Destinies
Mission (Im)Possible: How Apple and Microsoft's Purpose Shaped Their Destinies
The Role of a Specific Mission in Organisational Success
After discussing the core Theory of the Business, how your assumptions can create space for wrong decisions, and how your capabilities can become disabilities, we come to the third key aspect – the specific mission of your organisation.
According to Peter Drucker, a specific mission doesn’t have to be ambitious or world-changing, but it needs to matter to the organisation. It needs to fit with the assumptions about the environment and core competencies and make a difference to customers and society.
“The mission statement has to express the contribution the enterprise plans to make to society, to economy, to the customer. It must reflect the values and priorities of the organization and its leaders, and it must be clear, compelling, and meaningful.” - Drucker
What Does a Good Mission Look Like?
While Drucker did not provide a specific list for a good mission, he believed that the mission statement should serve as the foundation for priorities, strategies, plans, and work assignments. It should help distinguish one organisation from another and communicate the firm’s reason for being. Here are some criteria inspired by Drucker’s philosophy:
Conciseness: The mission should be brief enough to be easily communicated and remembered.
Clarity: It should be understandable to all stakeholders, avoiding jargon or complex language.
Purpose: The mission should articulate the organisation’s core purpose and reason for existence.
Inspiration: It should inspire employees and resonate with customers and other stakeholders.
Differentiation: The mission should highlight what sets the organisation apart from its competitors.
Focus: While being broad enough to allow for growth, it should maintain a clear focus to guide decision-making.
Comparing Apple and Microsoft
What does the comparison between Apple and Microsoft look like over the years? Does it effect strategy, new product innovation, revenues, and profits and impact on the world? A summary of the various eras below.
Heatmap Key:
✅ (Green) - High alignment with the criteria
🟡 (Yellow) - Moderate alignment with the criteria
🔴 (Red) - Low alignment with the criteria
Apple
Apple’s mission statement has evolved significantly over the years, reflecting its changing leadership and strategic focus.
Steve Jobs’ First Era (1976-1985): The original mission was about empowerment and personal computing, aiming to make computing accessible to individuals and change the way we think, work, learn, and communicate.
Strategic Pivot: Apple introduced the Apple II, one of the first highly successful mass-produced personal computers. This move positioned Apple as a leader in personal computing and set the stage for its future innovations.
Post-Jobs Era (1985-1997):
After Jobs left, Apple’s mission lacked clarity and inspiration. The company struggled without his visionary leadership and faced several financial and identity crises.
Strategic Pivot: During this period, Apple expanded into a variety of product lines and markets, but without a clear focus. This led to a lack of coherence in its product strategy and brand identity.
Steve Jobs’ Second Era (1997-2011):
Upon his return, Jobs refocused Apple’s mission on innovation, design, and user experience. The statement, “To make a contribution to the world by making tools for the mind that advance humankind,” reflected his vision to create products that blend technology and the liberal arts.
Strategic Pivots:
iMac: The launch of the iMac in 1998 marked Apple’s return to profitability and re-established its reputation for innovative design.
iPod and iTunes: The introduction of the iPod in 2001 and iTunes Store in 2003 transformed the music industry and showcased Apple’s ability to integrate hardware, software, and services.
iPhone: The launch of the iPhone in 2007 revolutionised the smartphone industry and became a cornerstone of Apple’s success, embodying Jobs’ vision of user-centred design.
Tim Cook’s Era (2011-Present):
Under Tim Cook, Apple’s mission has been “to bring the best user experience to customers through innovative hardware, software, and services.” This reflects a commitment to excellence in product design and functionality, with a focus on the user experience.
Strategic Pivots:
Apple Watch: The introduction of the Apple Watch in 2015 expanded Apple’s ecosystem into wearable technology and health monitoring.
Services: Emphasising services such as Apple Music, Apple TV+, and iCloud, which diversified Apple’s revenue streams beyond hardware sales.
Privacy and Security: Apple has increasingly focused on user privacy and security, setting it apart from competitors and aligning with its mission to provide the best user experience.
Steve Jobs famously articulated Apple’s philosophy with the idea of the “bicycle for the mind.” He explained:
“I think one of the things that really separates us from the high primates is that we’re tool builders... And that’s what a computer is to me. What a computer is to me is it’s the most remarkable tool that we’ve ever come up with, and it’s the equivalent of a bicycle for our minds.”
Microsoft
Microsoft has three eras and the mission changed over the years, reflecting changes in leadership and strategic direction:
Bill Gates Era:
When Bill Gates founded Microsoft, the mission was very product-oriented, famously aiming to put “a computer on every desk and in every home.” This goal was instrumental in driving the PC revolution and establishing Microsoft’s dominance in software.
Strategic Pivot: Microsoft’s partnership with IBM and the development of MS-DOS and later Windows operating systems cemented its position as a software giant.
Steve Ballmer Era:
Under Steve Ballmer, Microsoft’s mission shifted towards maintaining its stronghold on the PC industry. The focus was more on preserving the status quo of Microsoft’s market position during a time of rapid technological change.
Strategic Pivot: Microsoft focused on defending its Windows and Office franchises, but was slower to adapt to the rise of mobile and cloud computing, which impacted its market position.
Satya Nadella Era
With Satya Nadella at the helm, Microsoft’s mission statement became “to empower every person and every organisation on the planet to achieve more.” This broader, more inclusive vision focuses on empowerment through technology rather than specific products. Nadella’s leadership has marked a significant cultural shift within Microsoft, emphasising innovation, collaboration, and a growth mindset.
Strategic Pivots:
Cloud Computing: Under Nadella, Microsoft has aggressively pursued cloud computing with Azure, transforming it into a leading cloud services provider.
AI and Machine Learning: Microsoft has invested heavily in AI and machine learning, integrating these technologies across its product lines and services.
Cross-Platform Services: Microsoft’s willingness to offer its software, such as Office, on competing platforms (iOS and Android) and its acquisition of LinkedIn and GitHub demonstrate a strategic pivot towards a more open, service-oriented approach.
Nadella’s change in focus from every desk to every person & every organisation provides a more human centric view of the world and continues to keep the business focus. This has enabled him to make significant changes like depreciating the importance of Windows or launching Office on iPad and then moving to new opportunities in Cloud and then AI.
Conclusion
A specific mission is crucial for guiding an organisation’s strategy and decisions. Apple and Microsoft demonstrate how a well-articulated mission can drive innovation, shape company culture, and differentiate an organisation in the market. As Peter Drucker suggested, a mission statement should serve as the foundation for an organisation’s priorities and actions, making a real difference to its customers and stakeholders.
Strategic pivots, as illustrated by Apple and Microsoft, show how a clear and focused mission can guide an organisation through significant changes and help it adapt to new opportunities and challenges. These examples highlight the importance of continually revisiting and refining the mission to ensure it remains relevant and aligned with the organisation's goals and the evolving market landscape.
“Clarity is the most important thing in communication. If your audience doesn't understand, you haven't communicated.” — Jim Rohn
Readers Pointers: Is your mission statement clear and concise? Does it inspire and resonate with your employees and customers? Does it differentiate your organisation from competitors? How does your mission statement guide your strategic decisions and actions? When was the last time you revisited and refined your mission statement?