Steve Jobs

Plotting a Coup

Jobs was not good at taking no for an answer. He went to Sculley’s office in early May 1985 and asked for more time to show that he could manage the Macintosh division. He would prove himself as an operations guy, he promised. Sculley didn’t back down. Jobs next tried a direct challenge: He asked Sculley to resign. “I think you really lost your stride,” Jobs told him. “You were really great the first year, and everything went wonderful. But something happened.” Sculley, who generally was even-tempered, lashed back, pointing out that Jobs had been unable to get Macintosh software developed, come up with new models, or win customers. The meeting degenerated into a shouting match about who was the worse manager. After Jobs stalked out, Sculley turned away from the glass wall of his office, where others had been looking in on the meeting, and wept.

Matters began to come to a head on Tuesday, May 14, when the Macintosh team made its quarterly review presentation to Sculley and other Apple corporate leaders. Jobs still had not relinquished control of the division, and he was defiant when he arrived in the corporate boardroom with his team. He and Sculley began by clashing over what the division’s mission was. Jobs said it was to sell more Macintosh machines. Sculley said it was to serve the interests of the Apple company as a whole. As usual there was little cooperation among the divisions; for one thing, the Macintosh team was planning new disk drives that were different from those being developed by the Apple II division. The debate, according to the minutes, took a full hour.

Jobs then described the projects under way: a more powerful Mac, which would take the place of the discontinued Lisa; and software called FileServer, which would allow Macintosh users to share files on a network. Sculley learned for the first time that these projects were going to be late. He gave a cold critique of Murray’s marketing record, Belleville’s missed engineering deadlines, and Jobs’s overall management. Despite all this, Jobs ended the meeting with a plea to Sculley, in front of all the others there, to be given one more chance to prove he could run a division. Sculley refused.

That night Jobs took his Macintosh team out to dinner at Nina’s Café in Woodside. Jean-Louis Gassée was in town because Sculley wanted him to prepare to take over the Macintosh division, and Jobs invited him to join them. Belleville proposed a toast “to those of us who really understand what the world according to Steve Jobs is all about.” That phrase—“the world according to Steve”—had been used dismissively by others at Apple who belittled the reality warp he created. After the others left, Belleville sat with Jobs in his Mercedes and urged him to organize a battle to the death with Sculley.

Months earlier, Apple had gotten the right to export computers to China, and Jobs had been invited to sign a deal in the Great Hall of the People over the 1985 Memorial Day weekend. He had told Sculley, who decided he wanted to go himself, which was just fine with Jobs. Jobs decided to use Sculley’s absence to execute his coup. Throughout the week leading up to Memorial Day, he took a lot of people on walks to share his plans. “I’m going to launch a coup while John is in China,” he told Mike Murray.

Seven Days in May

Thursday, May 23: At his regular Thursday meeting with his top lieutenants in the Macintosh division, Jobs told his inner circle about his plan to oust Sculley. He also confided in the corporate human resources director, Jay Elliot, who told him bluntly that the proposed rebellion wouldn’t work. Elliot had talked to some board members and urged them to stand up for Jobs, but he discovered that most of the board was with Sculley, as were most members of Apple’s senior staff. Yet Jobs barreled ahead. He even revealed his plans to Gassée on a walk around the parking lot, despite the fact that Gassée had come from Paris to take his job. “I made the mistake of telling Gassée,” Jobs wryly conceded years later.

That evening Apple’s general counsel Al Eisenstat had a small barbecue at his home for Sculley, Gassée, and their wives. When Gassée told Eisenstat what Jobs was plotting, he recommended that Gassée inform Sculley. “Steve was trying to raise a cabal and have a coup to get rid of John,” Gassée recalled. “In the den of Al Eisenstat’s house, I put my index finger lightly on John’s breastbone and said, ‘If you leave tomorrow for China, you could be ousted. Steve’s plotting to get rid of you.’”

Friday, May 24: Sculley canceled his trip and decided to confront Jobs at the executive staff meeting on Friday morning. Jobs arrived late, and he saw that his usual seat next to Sculley, who sat at the head of the table, was taken. He sat instead at the far end. He was dressed in a well-tailored suit and looked energized. Sculley looked pale. He announced that he was dispensing with the agenda to confront the issue on everyone’s mind. “It’s come to my attention that you’d like to throw me out of the company,” he said, looking directly at Jobs. “I’d like to ask you if that’s true.”

Jobs was not expecting this. But he was never shy about indulging in brutal honesty. His eyes narrowed, and he fixed Sculley with his unblinking stare. “I think you’re bad for Apple, and I think you’re the wrong person to run the company,” he replied, coldly and slowly. “You really should leave this company. You don’t know how to operate and never have.” He accused Sculley of not understanding the product development process, and then he added a self-centered swipe: “I wanted you here to help me grow, and you’ve been ineffective in helping me.”

As the rest of the room sat frozen, Sculley finally lost his temper. A childhood stutter that had not afflicted him for twenty years started to return. “I don’t trust you, and I won’t tolerate a lack of trust,” he stammered. When Jobs claimed that he would be better than Sculley at running the company, Sculley took a gamble. He decided to poll the room on that question. “He pulled off this clever maneuver,” Jobs recalled, still smarting thirty-five years later. “It was at the executive committee meeting, and he said, ‘It’s me or Steve, who do you vote for?’ He set the whole thing up so that you’d kind of have to be an idiot to vote for me.”

Suddenly the frozen onlookers began to squirm. Del Yocam had to go first. He said he loved Jobs, wanted him to continue to play some role in the company, but he worked up the nerve to conclude, with Jobs staring at him, that he “respected” Sculley and would support him to run the company. Eisenstat faced Jobs directly and said much the same thing: He liked Jobs but was supporting Sculley. Regis McKenna, who sat in on senior staff meetings as an outside consultant, was more direct. He looked at Jobs and told him he was not yet ready to run the company, something he had told him before. Others sided with Sculley as well. For Bill Campbell, it was particularly tough. He was fond of Jobs and didn’t particularly like Sculley. His voice quavered a bit as he told Jobs he had decided to support Sculley, and he urged the two of them to work it out and find some role for Jobs to play in the company. “You can’t let Steve leave this company,” he told Sculley.