In a recent interview with CBS News, Tim Cook talked with John Dickerson about a range of topics including the company's efforts to become carbon neutral. He also talked about Apple's upcoming mixed-reality headset, Vision Pro. It was something he said about Apple's success, however, that I think stuck out the most, so much so that I think it's worth considering.
Look, whatever you think about Tim Cook, I think we can agree that he has some expertise in running a business. He does happen to run the most valuable company in the world--a milestone it reached on his watch. In fact, during the time Cook has been CEO of Apple, the company has more than tripled its revenue, and its market cap has grown from around $350 billion when Cook took over, to more than $2.7 trillion today.
Of course, it's always tricky trying to find transferable lessons for small businesses when you're looking at a company the size of Apple. What is true at the scale of a company with more than 100,000 employees is a lot different than a local retailer or accounting firm. On the other hand, if you're running a business that you'd like to grow--maybe there's something you could learn from the guy running the biggest one on earth.
One particular quote from the interview stood out because it's exactly that kind of lesson:
Dickerson asked Cook about focus: "Given the amount of cash that Apple has and the skill and proven success over time, how much is restraint a part of what you and your team do?" Dickerson asked. "In other words, staying in your lane? How much of a challenge is that?"
When you think about it, the question applies to every business to some extent. Almost every business has to choose its lane, and a lot of the job of a CEO is saying no to things so that you can stay there. Obviously, it's a particular problem for a company like Apple, which has billions of dollars it can use to try just about anything.
"We believe in focus," Cook responded. "And, so, we think that we can only do a few things well. And we really believe this. We will debate and argue and discuss and go back and forth on entering a new area to make sure it's something that we can do at a quality level, at a deep level, and really contribute."
There's a lot of great insight in that paragraph. For example, the way Apple decides whether to enter a new product market is certainly an interesting insight for people who lead businesses. The thing I found most interesting, however, is the 11 words he says about focus.
"We think that we can only do a few things well," Cook says. Let that sink in. It might be the best business advice you hear all year.
Look, there are several important aspects of this advice. The first is that Cook is acknowledging that Apple isn't going to be great at everything. It's really good at making iPhones and Macs. It also makes really great software.
There are also a lot of things Apple might want to do but won't be great at. The challenge is recognizing it and saying no.
Honestly, it's important to say out loud, if for no other reason than that it can be easy to forget that a company that plays such a prominent role in the lives of so many people can't do everything. It's also important because the reality is that it's true for every company. If the most valuable company on earth isn't good at more than a few things, than neither is any other.
Your job, as a leader, is to only do what only you can do. For the company you lead, the challenge is to define the things you are good at, and be honest about where you draw those lines. Then, your job is to say no to everything else. If you lead a business, it just might be the most important lesson you learn.
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