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Apple’s Organizational Crossroads

stratechery.com

11–20 of 39 posts

Re: Apple’s Organizational Crossroads

#11
post #9
post #8

Well argued rebuttal and counter by John Kirk at Techpinions https://techpinions.com/apple-shouldnt-cross-that-road-till-...

Thanks for sharing - I wouldn't have found this otherwise. Is anyone aggregating discussions like this today? NYT has some opinion pieces and shares rebuttals, but I haven't seen long-form opinion aggregators around.

Michael Tsai often does so on his apple-focused blog (e.g. Paid App Store Search[1]) but he hasn't gotten around to this discussion yet.

[1]http://mjtsai.com/blog/2016/04/15/paid-app-store-search/

Re: Apple’s Organizational Crossroads

#12

Services are hardly a unique Apple specific problem though. For a few that get services right you'll find many that suck. It takes a very different collective mindset, culture, processes and iterative improvements - those are a no brainer. Beyond those it also takes unconventional innovation at multiple different levels - look at how HTTP2 happened for example and look at how everything underneath GMail must have imp…

I don't know about processes or mindset; I think it's mostly a matter of hiring real Engineers and letting them do real Engineering on your backend. That's a cultural problem, though, on an organizational level: if you run everything in the "20-somethings burning midnight oil to ship" mode, the experienced Engineers don't want to join you. You'd have to shift your culture into one that has room for them (like e.g. Facebook is continuing to attempt to do with the Engineers from Whatsapp.)

Re: Apple’s Organizational Crossroads

#14

This is dated 4/19, but I would swear I've read this (and seen the same organizational graphics) before. Was this already posted somewhere else? Is this a summary of a bigger work that is getting the summary treatment on multiple sites? Weird.

Ah. Realized it was probably the discussion of Microsoft in 2013 on the same site.

https://stratechery.com/2013/why-microsofts-reorganization-i...

Re: Apple’s Organizational Crossroads

#15

This is dated 4/19, but I would swear I've read this (and seen the same organizational graphics) before. Was this already posted somewhere else? Is this a summary of a bigger work that is getting the summary treatment on multiple sites? Weird.

His stuff always has that style of graphics, and I believe that graphic was used in a different post a year or so that went into more detail about horizontal/vertical organizations.

Edit: I see you found it

Re: Apple’s Organizational Crossroads

#16
Is Amazon a good comparison? Amazon Web Services is a separate organization from the consumer side (amazon.com, zappos, etc).

As I understand it, the "jewels" (retail/consumer) do depend on AWS...they supposedly are strong on "eating your own dog food". But, they have roughly equal footing and representation. There is the difference that Amazon's services can be sold standalone, rather than just bundled, I suppose.

Re: Apple’s Organizational Crossroads

#17

This post makes the case that Apple is not organized in a way to allow it to effectively run services like iCloud, iTunes, Apple Pay, etc. I haven't worked there in ten years, but back then at least, I'd agree with that. Teams and orgs were heavily siloed and vertical. However, then it goes on to say a few things that I think are harder to defend. The author talks about how it's hard for Apple to build good services…

The comment was marked as "dupe" but I don't see why so I vouch it. Is it a bug ?

Re: Apple’s Organizational Crossroads

#18
post #8

Well argued rebuttal and counter by John Kirk at Techpinions https://techpinions.com/apple-shouldnt-cross-that-road-till-...

His opinion is interesting, and leads to the question: Why shouldn't apple start a services division, with it's own process, managers and internal profit and loss, but that would have somewhat limited independence, by definition - in major decisions they would have to consult the CEO and the other divisions to make sure this doesn't interfere with the hardware products.

Re: Apple’s Organizational Crossroads

#19
post #8

Well argued rebuttal and counter by John Kirk at Techpinions https://techpinions.com/apple-shouldnt-cross-that-road-till-...

Thanks, I hadn't seen that. For what it's worth, I think the rebuttal misses that Thompson wasn't actually arguing for a Services division - he was arguing that if Apple is serious about creating better services, as they are currently claiming to be, then that's what they should do. But that doesn't mean that they should be serious about services! That's basically the same conclusion that is drawn by the article you linked. (Thompson goes into this a bit more on last week's Exponent podcast, if you're into this sort of thing.)

Re: Apple’s Organizational Crossroads

#20
post #18
post #8

Well argued rebuttal and counter by John Kirk at Techpinions https://techpinions.com/apple-shouldnt-cross-that-road-till-...

His opinion is interesting, and leads to the question: Why shouldn't apple start a services division, with it's own process, managers and internal profit and loss, but that would have somewhat limited independence, by definition - in major decisions they would have to consult the CEO and the other divisions to make sure this doesn't interfere with the hardware products.

The idea behind Divisional Organization is that you'd motivate Services by holding them responsible and measuring success and failure via quantifiable things like turning a profit.

But a lot of what would make Services profitable isn't necessarily good for the rest of Apple: squeezing people harder to upgrade storage space for pay, paywalling popular features like Find My Phone, or selling iCloud for Android might all make Services look better on paper but hurt Apple as a whole.

Your proposed compromise, if anything, might make Services worse -- take it from someone who's been there, there's nothing more demotivating and worse for productivity than being held responsible for the bottom line while not having any authority to do anything that would improve it.

And if you're not going to hold the Division responsible for its financials, there's no benefit to moving it out of Engineering.

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