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The Failure of Steve Jobs & Walt Disney

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There is an awful lot one can learn from the remarkable Steve Jobs, of course, but one thing stands out to me–one single thing that can get lost among the many lessons his story offers: Failure.

The people who change the world are not brighter than everyone else is; there are many bright people with great ideas. It isn’t that Steve had vision; when I worked in the Bay Area, I found I couldn’t take a dozen steps without running into someone with an exciting vision for the future. And it isn’t that Steve better focused on the needs of humans; that is certainly an integral part of his success, but every organization is full of people capable of putting customers first.

No, the one thing that sets Steve Jobs apart from others is not success but failure. Reading his biographies and tributes this week reminded me of another hero of mine, Walt Disney. Their tales are remarkably similar in many ways.

We Americans have a terrible habit of distilling the stories of our great men and women into simplified and boring soundbites of success–Walt Disney invented Mickey Mouse! Steve Jobs invented the iPad!–while ignoring the long, crooked, difficult, brave roads they took to realize that success. We like to believe that success is what defines the American spirit, but the truth is the opposite: Failure is what defines the people who achieve greatness.

Steve Jobs and Walt Disney are American success stories–and they both failed in spectacular fashion. Steve Jobs produced the Apple III, a computer with so many hardware issues that one of the solutions (I’m not kidding) was to drop the computer two inches to reseat the chips on the motherboard. Walt Disney’s first animation effort went bankrupt and he lost the rights to his first commercially successful character (the forgotten Oswald the Lucky Rabbit.)

For most, the story would have ended there. Steve Jobs, pushed out of the very company he founded, could have spent his life developing products that didn’t push the envelope but delivered his family a very comfortable standard of living. Walt Disney could have given up animation–something he’d briefly attempted in the past–and sought work in the booming Hollywood movie business. But neither did–they learned from failure and eagerly dove back into the deep end of the risk pool. Said Steve Jobs, “It turned out that getting fired from Apple was the best thing that could have ever happened to me… Sometimes life hits you in the head with a brick. Don’t lose faith.”

What is remarkable about both Steve Jobs and Walt Disney isn’t merely that they persevered after failure; instead, the defining characteristic of these great men–the one thing we can and should learn from Jobs and Disney–is that they never stopped embracing risk even after they achieved success. It is difficult enough to make risky decisions after one is prosperous and comfortable, but imagine making those same risky decisions after having suffered the kind of confidence-shaking flameouts that Jobs and Disney experienced.

Disney achieved great success and recognition with Mickey Mouse, Donald Duck and The Three Pigs, yet he risked it all to push his company into the dangerous and untested waters of full-length animated movies. He was forced to release “Snow White” sooner than he wanted when the banks funding what had come to be known as  “Disney’s Folly” refused to advance any more credit. Snow White earned Walt money and recognition, yet he risked it again and again on pet animation projects, live-action films and the riskiest bet of all–theme parks. Having tasted the bitter pill of failure, he nonetheless risked his reputation and wealth frequently.

Steve Jobs did the same. After being dumped from the company he founded, Jobs turned his attention to new risky endeavors. He launched a new software company called NeXT, Inc. and invested $50 million of his own money into Pixar. NeXT floundered, Pixar soared and Jobs was soon back at the helm at Apple. For most of us, the satisfaction and recognition of a triumphant return to the company that dumped us would be validation enough, yet Jobs took a salary of $1 a year and repeatedly placed risky bets on new business models and innovative technology. Jobs might have stopped at any point in his journey and retired with the kind of wealth and accolades most can only dream of, yet his risks and hits kept coming–iMac, Macbook Air, iPod, iTunes, iPhone and the iPad.

Most within corporate America work their entire careers avoiding risk. Some do it blatantly, taking pride in saying “no” to anything new that comes along, protecting the bottom line and corporate reputation from anything that feels a little dicey. Others avoid risk superstitiously, hiding behind focus groups, best practices and spreadsheets that promise (but rarely deliver) ROI.

In Human Resource departments, for example, the risk avoiders hire only candidates who present excellent education records; Steve Jobs dropped out of college and Walt Disney left high school after one year. In Marketing Departments, the risk avoiders spend big money on TV and print while moving cautiously into digital and social; Disney made huge bets before others on Technicolor in movies and on the nascent television medium, and Steve Jobs doubled down on mobile computing at a time when few expressed a desire for expensive mobile devices.

Avoiding risks doesn’t get someone fired. No one is ever called into a senior executive’s office to justify why he or she declined to invest the company’s money in a bold but untested idea. The risk avoiders rise slowly and steadily in corporate ranks, producing modest results. They never risk their reputations or career achievement, and when they fail, they fail small and justifiably–“The creative tested well!” or “The candidate had a great GPA from a respected school!”

Most of the time, these people guide companies to outcomes within a safe and expected range, perhaps stealing a point of market share from the competition. Little is risked, lost or gained. But the road to failure is paved with a thousand tiny successes, and while risk avoiders don’t fail spectacularly, their companies can. Risk avoiders cannot change quickly enough; they miss threats to their marketplace and are unable to rapidly steer a new course. Blockbuster, Borders, GM, and many other firms were full of risk avoiders who were constantly and modestly successful until they suddenly were not.

Of course, there are many in corporate America who embrace risk, but few do so like Jobs and Disney. If you are a risk taker, you probably do so only part way. You likely don’t bet your job, your home and your family’s future on your vision. Walt Disney would have lost Mickey Mouse and his home had Snow White failed, and he later borrowed against his own life insurance policy to fund the construction of Disneyland. You don’t take that kind of risk, and neither do I.

How much are you willing to risk failure? After being promoted and earning a healthy income, are you inclined to put that at risk to pursue your vision and deliver exceptional results for your employer? Can you defend and support an employee’s new idea when their last one failed thoroughly?

The lessons of Walt Disney and Steve Jobs aren’t simple or easy. Very few of us have the power to achieve anything close to their level of greatness, but the way we choose to view failure and our willingness to risk what we have achieved is, in my opinion, the defining difference between those who are merely successful and those who bring vital change to their organizations.

Most of us desire success and fear failure. What the stories of Jobs and Disney tell me is that we ought to embrace failure and fear success. The more we succeed and achieve, the less likely we become to accept risks. Jobs and Disney remind me of a Steinbeck quote–one I learned from Epcot’s American Adventure (Thanks, Walt!)  Steinbeck was speaking of our nation, but he may have well been speaking to every company and individual who has tasted success:

We now face the danger which in the past has been the most destructive to nations. Success, plenty, comfort and ever-increasing leisure: no dynamic people have ever survived these dangers.

Think Different, indeed!

This article was written and produced by Experience The Blog, an informative business blog. see more. 

Entrepreneurship

Science is the Next Big Thing in Startups

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From pharmaceuticals to petrochemical processes: Newcomer companies and investors and investors alike are setting their sights on science. How the start-up scene moves beyond the mobile apps bubble…

For the last two years Silicon Valley analysts and venture capitalists are anticipating the burst of yet another bubble. This time, under the risk are the mobile start-ups which constitute the biggest share of the market. Out of 50 companies listed in Forbes’ “the hottest startup of 2015” (by valuation) only six companies are based on innovations in other-than-mobile area, one company provide cleaning services, while the rest are diverse mobile apps.

Meanwhile many products listed can be barely called innovative. A significant proportion of the listed start-ups are texting apps, apps for people search (starting from business partners to life partners) or delivery services. While those services can definitely facilitate one’s life, in general they differ from their predecessors by only a narrower audience.

Many venture investors expect stagnation if not decrease on the markets, which is why they start to transfer their capitals from start-ups offering customers software to start-ups offering specific solutions for existing businesses. Such companies are expected to demonstrate more stability in the near future.

The Market for Mobile Apps Might be Saturated

Back in 2012 a talented entrepreneur could walk into a venture capitalist’s office, say his startup was a mobile-first solution for pretty much any problem (payments! photos! blogging!), and walk out with a good-size seed investment. “That pitch was enough to get going,” says Roelof Botha, a partner with VC firm Sequoia Capital. “It’s not enough anymore.”

“I think investors are bored with investing in another messaging app. And our idea is crazy enough that it might just work. ”, has declared in 2014 Nadir Bagaveyev a founder of a start-up using 3-D printers to make rocket engines. By 2016 the company attracted investors funding sufficient to launch its first rocket.

Pharma and Biotech Start-Ups in High Demand

Currently the most successful science-based start-ups are the companies offering innovative solutions in the field of pharmaceuticals and biotechnologies. It’s noteworthy that despite the previous revelations and even judicial proceedings the list of the most expensive start-ups still includes Theranos, blood analyzing laboratory, whose story did not descend from the main pages of the global leading media from 2014.

It first amazed the audience with its fantastic take-off and then with its collapse. One of the crucial parts of the success story of this start-up is its fundamental difference from the majority of the services produced in the Silicon Valley. Unlike the others, it was not a story of yet another beautiful gadget for communication or mobile app, but the story of the scientific idea which intended to conquer the world.

The great success stories in other scientific areas are now happening on occasional basis. However certain facts allow to predict that the situation is to change soon. One of such factors is growing interest among the big corporations to attract innovative solutions from outside to develop their businesses.

Given the accelerating pace of scientific and technological development of the world, the activities of internal R & D departments are often turn to be insufficient to ensure stable development of innovative business. Outsourcing of the R&D may become the efficient mechanism to stimulate the growth of the company. And high-tech start-up can certainly benefit from it.

Start-Up Technology for the Petro-Business

In December, 2016 world leading companies in the field of gas processing, petrochemicals and chemicals announced their intentions to enforce their R&D capacities by attracting start-ups. 3M, AkzoNobel, BASF, The Dow Chemical Company, DuPont, Henkel, Honeywell UOP, LG Chem, Linde, Sibur, Solvay and Technip together created a global stage for startups and investors.

“The petrochemicals industry can and must rely on the potential of open innovations to facilitate further inventions and implementation of new solutions in all major application areas, from construction and medicine to packaging and 3D printing. Thanks to the participation of international partners, IQ-CHem is now the largest global project within the industry which attracts innovative solutions and provides for their implementation into practice,” said Vasily Nomokonov, Executive Director of Sibur, a company which coordinates the project.

Positive Experience in Chemicals and Beyond

Some of the listed companies have already gained positive experience in working with start-ups which may have driven them to elaborate a systemic approach to attract innovative companies.

At the beginning of 2016, SIBUR and RRT Global start-up reached an agreement to build a pilot plant for isomerization based on RRT Global technologies in Sibur’s Industrial Park SIBUR “Tolyattisintez”. According to Oleg Giyazov, co-founder and CEO of RRT Global cooperation with a large corporation bring significant advantages to his company.

“By cooperation with Sibur we get a huge industrial experience that enables us to develop technologies and solutions better fitted to the market demand. This advantage is often not given due attention, but we, on the contrary, see significant opportunities in it. Currently, RRT Global cooperates with several companies around the world” he said.

Another petrochemical leader BASF enjoys successful cooperation with Genomatica start-up. In 2013 BASF started the production of 1,4-butanediol based on renewable feedstock (renewable BDO) using Genomatica’s patented process and in 2015 the license was expanded to the Asian market.

Unlike traditional forms of cooperation between a start-up and a venture capitalist, a cooperation between start-up and a relevant corporation allows to minimize the risks associated with investing in a potentially promising idea where the key word is “potential” (but not “guaranteed”). While delivering services in the same field as the start-up the corporation gets an opportunity to more effectively and accurately estimate the market value of an innovative idea and to support its implementation.

Structural Changes Ahead: Outlines of A Coming Market

In the short term prospective, possibly in 2017, the global start-up market will face structural changes – both in terms of start-ups professional orientation and of funding mechanism. In the future science-based start-ups will dominate the market and will change our lives at a deeper level than the way of sending a text message or searching the restaurant for an evening meal. To be more concise this is already happening in the pharmaceutical industry, and the other scientific areas are to follow.

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About the Author

This article was written by Dominik Stephan of Process Worldwide. See more.

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Callum Connects

Norman Tien, Founder of Neuromath and Early Math Matters

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From a young age, Norman Tien, found his passion helping students as a math tutor and went on to translate that into a successful business.

What’s your story?
From the age of 14, I knew I would be in business for myself and started designing my company logo.

Growing up in a poor family, I worked part time while I was in school. That’s when I started tutoring and realised I had a gift to help students “see” mathematics. I delivered good results, and my students started to love math as well.

A turning point was when I was down with dengue fever and I realised I had to grow my business to the next level. I started a learning centre and that was the beginning of Neuromath. The initial years were tough as costs went up while my personal income took a dive. I almost gave up, but I pushed through.

Today, we have 3 specialty math enrichment centres managed and delivered by my dedicated team of teachers.

What excites you most about your industry?
“How to win” has always influenced how I position myself in the industry. I researched the psychology of learning, why some students are so naturally good at math, while others struggled. I managed to find the connection, and have always sought out niches to position myself so I can win.

In the beginning, I fused academic delivery with psychology to differentiate my services. Now I have a good team of teachers fully equipped with a psychological skillset.

In the next evolution of our business, we will incorporate technology into education in order to customise each student’s learning experience based on his or her needs.

What’s your connection to Asia?
I was born and educated in Singapore. One key driver why I started a business was, as a youth, I witnessed how my dad struggled daily as a taxi driver trying to make ends meet.

That said, I am very blessed to be in Singapore and to be given the right education. I see this as a very important factor to my success today.

Favourite city in Asia for business and why?
Singapore – well, for one, most of my businesses are here. Singapore is convenient for business and is very well governed. There are rules and systems that make the entire entrepreneurial journey more secure here. One big plus is the location: Singapore is a hub that allows us to connect to the world.

What’s the best piece of advice you ever received?
船到桥头自然直 –
There is a Chinese saying that when a boat goes near the pier, it will automatically align itself (with the current). It means we don’t have to worry too much, that things will take care of themselves.

A mentor once challenged me: “But who can guarantee you can even reach the pier?”

It is such a highly competitive world we are in, who can guarantee success? This is the ONE question that has been etched in my mind for decades. The Chinese saying always comes to mind when I am positioning, designing and strategizing for my business.

Who inspires you?
Mr. Lee Kuan Yew – The fact that he started ruling the country just like a startup. With limited resources, he was able to find a strong positioning to differentiate his country from the rest of the of Asia. With hardwork and proper planning, he transformed Singapore from a fishing village to a prominent financial hub in Asia.

Because Mr. Lee Kuan Yew positioned Singapore so well, government owned companies, such as Singapore Airlines, have emerged as the best in the world.

His story inspires me, spurs me to understand that success is not by chance but by design – every little step, all the strategies are all planned out. Not at all by chance.

What have you just learnt recently that blew you away?
My business coach, Marshall Thurber, shared with me the power of the “Trim Tab” – a small part of the rudder system in a ship. This Trim Tab, despite its small size, is able to influence the entire ship’s direction by turning it.

This metaphor helped me see that a man can influence the entire world if the right effort is applied. We are now living in an entirely new world, the way we commute with an app on the phone – that’s the power of the Trim Tab at work.

If you had your time again, what would you do differently?
I would embark on the same journey but I would seek a mentor at a very early age.

I have been through many hard knocks along the way, and I definitely could have shortened the learning curve if I had a mentor to advise me on the many aspects of entrepreneurship.

How do you unwind?
Driving down long highways helps me unwind, that’s when I let my mind relax and wander.

I love long distance driving and riding. My wife gave me a Harley Davidson Tourer for my 50th birthday and we intend to embark on riding holidays together in Asia.

Favourite Asian destination for relaxation? Why?
Hong Kong – I love the fast pace and the vibrance of the city. I love the cars there and it’s a very unique and exciting experience for me. And of course, I love the food there too!

Everyone in business should read this book:
One Minute Millionaire – this book highlights the mindset of an individual that is the key determinant for success in whatever we embark on. As long as we know we have a very strong reason why we need to do it, we can do it!

Shameless plug for your business:
I am the CEO and Founder of 2 Math enrichment brands:
Neuromath is a Specialist Math Learning Centre that helps students from Primary 1 to Junior College, empowering them with strategies, skills and a strong desire to learn and problem solve. We use technology to train students to avoid careless mistakes reclaiming 30 marks or more in Math exams and achieve their full potential in math.
www.neuromath.com.sg

Early Math Matters is a premier Mathematics and Cognitive Development enrichment centre for preschool children aged 3-6 years old. Through purposeful play and our renowned EMM approach, we help learners build a strong foundation for problem solving at an early age, and instil in them a passion & love for math that will stay with them for life.
www.earlymathmatters.com

We are actively seeking passionate teachers, entrepreneurs and investors who are keen to grow the education business with us.

How can people connect with you?
I speak regularly at workshops for schools, parents and platforms demonstrating the use of technology for peak performance in education.

Do contact me at
www.NormanTien.com

Alternatively, you can connect with me:
www.NormanTien.com/facebook
www.NormanTien.com/linkedin

This interview is part of the ‘Callum Connect’ series of more than 500 interviews

Callum Laing is an entrepreneur and investor based in Singapore. He has previously started,
built and sold half a dozen businesses and is now a Partner at Unity-Group Private Equity and Co-Founder of The Marketing Group PLC. He is the author two best selling books ‘Progressive Partnerships’ and ‘Agglomerate’.

Connect with Callum here:
twitter.com/laingcallum
linkedin.com/in/callumlaing
Download free copies of his books here: www.callumlaing.com

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