Steve Jobs on what happens to companies when the sales people take over the product people
“The technology crashed and burned at Xerox. Why? I learned more about this with John Sculley later on. What happens is, John came from Pepsico. And they—at most—would change their product once every 10 years. To them, a new product was a new sized bottle. So if you were a ‘product person’, you couldn’t change the course of that company very much. So, who influences the success at Pepsico? The sales and marketing people. Therefore they were the ones that got promoted, and they were the ones that ran the company.
Well, for Pepsico that might have been okay, but it turns out the same thing can happen at technology companies that get monopolies. Like IBM and Xerox. If you were a ‘product person’ at IBM or Xerox: so you make a better copier or better computer. So what? When you have a monopoly market-share, the company’s not any more successful. So the people who make the company more successful are the sales and marketing people, and they end up running the companies. And the ‘product people’ get run out of the decision-making forums.
The companies forget how to make great products. The product sensibility and product genius that brought them to this monopolistic position gets rotted out by people running these companies who have no conception of a good product vs. a bad product. They have no conception of the craftsmanship that’s required to take a good idea and turn it into a good product. And they really have no feeling in their hearts about wanting to help the costumers.”
In some sense Jobs' wisdom can be summed up very simply: if your company is based on a product, you should make better and more product. Selling it is important, but that comes next. If you invert the order or make sales your exclusive focus, then the very thing you are selling will one day cease to exist.
Source: http://wavefunction.fieldofscience.com/2016/11/steve-jobs-on-what-happens-to-companies.html
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