Management Lessons from Sony & Apple (2002) and the Battle of the Nile (1798)

Interesting management lessons from two historic episodes 200 years apart:

• A British-French naval battle in 1798 (Battle of the Nile): it was a historic battle that stopped Napoleon’s advance through Egypt towards India preventing France colonizing South Asia (imagine cricket without India, Pakistan, Afghanistan, Sri Lanka and Bangladesh!)
• Apple ending Sony's domination of the music industry in 2002: remember how the iPod and iTunes wiped out the Discman (and other nascent MP3 devices)?

Both the French Navy and Sony lost from a position of strength:

French Navy: Had full knowledge they were being hunted by the British Navy and familiar with the navigable limits of the shallow rocky shoal they had docked at. They had set themselves in a dominant naval battle formation with land-based artillery providing supporting fire in addition to ship canons prepped for battle.

Sony: Sony had both a consumer electronics division and a music division. It dominated the music playback technology market with devices like the Walkman and Discman. Also had iconic artists and recording studios on their label and an online music selling platform.

How they lost it (some of the many complex factors):

French Navy:

• Despite knowing they were being hunted, the French navy were ill-prepared when the British fleet arrived: many sailors were onshore establishing defense and supply lines. Most had not returned by the start of the battle.
• The British fleet slowed advance at 4pm to better organize themselves. The French commander convinced himself the British fleet was avoiding an evening battle in confined waters and would likely delay attack till next morning. (Meanwhile, the British fleet was lighting lanterns on masts preparing for an evening battle.)
• The French formation had too wide a gap between the vessels and the shoal. This was exploited by the British Navy with some of the vessels taking the line through the gap (risking running their ships aground). The risk paid off as the British vessels were thus able to fire on the French from two sides.

Sony:

• The consumer electronics division and music division both tried to protect their own narrow interests failing to come together to produce an end-to-end service for their customers. Apple came up with a seamless system through the iPod, iTunes and the iTunes Store.
• Sony took their relationship with the music labels for granted who did not stick around when Apple, despite being new and untested in the music space, passionately persuaded, demonstrated and sold its vision to the labels who took the leap of faith with Apple.
• Sony's music subscription service had complicated restrictions, clunky interfaces and allowed customers to stream songs but not keep them. Apple introduced the 'iTunes Store' where songs could simply be purchased for 99 cents (US).

Some management lessons from the above:

It’s dangerous to think you’re in a position of strength—invites complacency:

• Both the French fleet and Sony took their positions for granted. They moved in a laggardly fashion despite knowing competition was breathing down their necks. Both parties allowed themselves to get carried away by their confirmation biases: the French thinking the British won't attack till next morning; Sony somehow thinking two divisions not working with each other wouldn’t have a profound adverse impact on the company.
• If you find yourself thinking you or your organization are in a position of strength, question yourself, challenge your biases and assumptions. Don’t think of the 'position of strength' as a destination. Think of it as a never-ending journey of intense continuous improvement.

There is a very high probability your organization, at this very moment, has all the ingredients for the next most innovative product in your space but failing to put it together because different parts are not working in a collaborative fashion:

• Sony's consumer electronics and music division didn't work together. Whereas in Apple, "Steve [Jobs] would fire people if the divisions didn't work together..." - Jimmy Iovine, co-founder of Interscope Records [Source: Isaacson, W. (2015). Steve jobs.]
• Rigid adherence to hierarchical structure in the French naval command did not allow for quick decision making and action. "Unlike Nelson's captains, the French naval commanders were not encouraged to use their initiative. They were expected to follow their orders to the letter and remain at their station until commanded otherwise." [Source: Strathern, P. (2008). Napoleon in Egypt: 'the Greatest Glory']
• Invest in finding out whether your organization’s structure and systems are promoting or stifling collaboration within. Set up and track metrics that specifically measure this. Seek outside advice on where your organization is at and how it can improve in infusing a collaborative culture. After all, Sony thought everything was alright and did not pick up on the issue of two critical departments not working together until it was too late.

Hope you enjoyed that. Those were my thoughts from two very interesting books linked below. Would love to hear what you think!

Sources:

1. Strathern,?P.?(2007).?Napoleon in Egypt.?London:?Jonathan Cape. https://amzn.asia/d/9qrmhGd

2. Isaacson,?W.?(2013).?Steve Jobs.?United States:?Simon & Schuster. https://amzn.asia/d/3Jrw6EO