Steve Jobs is a Phoenix Principle leader.  He's never afraid to Disrupt himself or his organization.  He's always working to make sure new ideas are surfaced, and applied, and new markets developed.  He keeps White Space alive, trying new products in new markets — unwilling to let himself or his organization become pigeonholed into narrow definitios that weaken revenues and returns.  No wonder analysts, investors and employees want him at the helm of Apple.

But, no organization can survive long-term if it depends on a leader to maintain all Disruptions and White Space.  Apple stock is down about 50% since the middle of this year, dropping 5% today (see chart here).  This could be because Apple is ignoring the netbook marketplace – and possibly not introducing anything terribly knew this holiday season.  Some think it's because there is a rumor that Mr. Jobs is in poor health because he's said he won't address the MacWorld trade show in December.  His health has been something that has captured news attention since his bout with pancreatic cancer in 2006 (read more about Jobs and Apple's stock here.)

Apple's rise, fall and rise can largely be traced to its leadership by Mr. Jobs.  But that's really too bad.  Apple should move to institutionalize processes which would insure the company keeps Disrupting itself and implementing White Space.  Even if Mr. Jobs is in great health, at some time he will leave Apple.  And the company's employees, investors and vendors deserve the company to continue with the kind of performance it's seen since Mr. Jobs' return to the top spot.

Over at neighbor Silicon Valley tech company Cisco Systems Disruption has been institutionalized, rather than relying on Chairman John Chambers.  At Cisco, the company works constantly to cannibalize and replace its own products.  This policy keeps the company from resting on the laurels of good products, protecting them from competition and allowing the company to fall behind.  Instead, product managers constantly work to either find replacement products or improve their products so they stay at the forefront of competition – or get out of the product line altogether.  With this chronic product Disruption, they use White Space to find the replacement products growing revenues year after year.

Great Phoenix Principle leaders are good role models.  But companies can't rely on them to keep the organization vital.  Leaders leave.  Too often, the organization then falls victim to Lock-in as Disruptions stop and White Space dries up.  Defend & Extend management takes hold – as we saw at Apple when Steve Jobs was fired by John Scully in the 1980s.  After his departure, the company focused entirely on the Macintosh and attempted to protect its share from the Wintel PC onslaught.  Even though Mr. Scully tried to lead the company into the PDA market by championing the Newton, he was unsuccessful because he lacked Mr. Jobs Disruption skills (Mr. Scully was a corporate leader cut from a more traditional mold) and didn't know how to use White Space to get his product supported.  As a result, the D&E managers at Apple rose up, had the Board fire Mr. Scully, and proceeded to focus on the Macintosh until it became a niche product and the company was in jeapardy of failure. 

And that's what could happen again when Mr. Jobs leaves.  That's why mentions of his health, or departure, draw so much press.  Apple has not become an evergreen Phoenix Principle company, because it relies too strongly on its existing Phoenix Princple leader.  There's time to change this – and that should be one of the highest priorities Mr. Jobs undertakes – long before he decides to leave.