When Vision Clashed with Governance: Why Apple’s Board Ousted Steve Jobs in 1985
- Directors' Institute

- Jul 24
- 10 min read
In business world history not many stories are as famous or strange like when Steve Jobs got removed from Apple in 1985 the same company he helped begin in a small garage just few years before many people now call him a genius who changed how we use tech but back then he was not kicked out because of cheating or stealing money it happened because there was a big fight between wild ideas and company rules Jobs always had strong thoughts and wanted things his way he liked everything perfect and sometimes didn’t care about what was normal for a big company his strong dreams didn’t match with what the people on the board wanted they cared more about money results and keeping things under control at the end the same rules that was made to help Apple stay safe decided to let go the person who made it special this moment changed everything for the company
How Apple Grew and Jobs Got Famous
Steve Jobs started Apple in 1976 with Steve Wozniak and Ronald Wayne they worked in a small garage in Cupertino California their first machine the Apple I was simple but new and cool then came Apple II and it sold a lot and made Apple really big fast in 1980 Apple became a public company and Jobs got very rich at only 25 he wasn’t just a worker at Apple he was the heart of it everyone saw him as the idea guy smart full of energy and always dreaming big for him computers were not just tools they were part of life and art but when the company got bigger everything started to change more people more teams and more rules his dreams started to crash with real life stuff like money and running the company properly.

Young Dreamer Meets Real Company Life
Even though Jobs had smart ideas and made great products he wasn’t good at being a boss his style was loud tough and not very nice some people liked his passion others said he was hard to work with he didn’t like people saying no to him and always wanted everything to be just right but this made problems inside the company one big project Lisa didn’t do well after that Jobs worked on Macintosh but that also had problems it came late cost a lot and didn’t sell much even if it looked nice because it wasn’t fast and was expensive the board members started thinking maybe Jobs was not right to lead anymore the same person who made Apple famous now looked like someone who could hurt it.
Enter John Sculley: The “Adult Supervision”
In 1983 the people in charge at Apple saw that they needed someone who knew how to run a big company so they picked John Sculley who used to work at Pepsi he was smart with business and selling stuff they thought he could help with all the fast changes and big growth happening at Apple Steve Jobs was the one who asked Sculley to join using a famous line where he said do you wanna keep selling sugar water or help me change everything.
At first it looked like they made a good team Jobs kept making cool things and Sculley worked on making the company bigger but soon they started not getting along they didn’t agree on lots of stuff like what to do next how to sell and what the Macintosh should be Jobs wanted to keep trying new crazy ideas even if they cost a lot or didn’t make money fast Sculley wanted to keep things steady and make sure the company earned good and made people who owned stock happy.
Things got worse and Jobs tried to get Sculley fired but the board didn’t like that they were already worried cause Macintosh wasn’t doing great and Jobs was acting wild so they stayed with Sculley and in May 1985 he took away Jobs’ power not long after Jobs left the company he helped start.
Why the Board Acted: Governance vs. Greatness
Taking away Steve Jobs' main job at Apple in 1985 was not about feelings it was a choice made by the top people to help the company stay strong they had to think about what’s best for the ones who owned shares and also for the future of the business money was not coming in like before the stuff they made didn’t sell great and the people running things were not getting along well so the board had to choose what felt more safe and easy to handle instead of wild ideas and fast changes
In the end they went with John Sculley the other top guy who was more calm and steady he did things in the usual way and liked rules and order so the group picked him instead of Jobs who was more about big dreams and pushing limits they felt Sculley was better for where Apple was at that time
Several key factors shaped the board’s decision:
Organizational Chaos: Jobs’ way of handling the Macintosh team started getting more and more up and down his mood changed a lot and the way he led made things hard for people working there many started quitting or feeling unhappy the place didn’t feel good to work in even though he pushed for amazing ideas and cool designs his need for everything to be perfect slowed down work and made others feel left out or ignored it was hard for the team to keep up with him all the time
Profitability Concerns: The Macintosh was pushed by Jobs with a lot of energy and hope but after it came out it didn’t make as much money as people thought it would even though it looked nice and had cool new features the cost was too high and it couldn’t do many things people needed because of that not many bought it Apple kept spending a lot on it but didn’t get enough money back this made the board start to worry about how the company was using its money
Governance Stability: Apple was still a new company in the big market and had to show it could act smart and steady with more other tech players coming in the board felt that Jobs being unpredictable and not liking rules was not helping what the company really needed was a clear plan and grown-up way of running things
This moment was a perfect example of when big new ideas crash into company rules and control Jobs had amazing thoughts and changed how people looked at computers but the people in charge saw him as someone who could shake the whole place too much as Apple was trying to go from a small dream project to a serious business they thought keeping him in charge was risky
What the board did is something many companies face they had to pick between following crazy cool ideas that might fail or choosing a safer path that keeps the company strong over time it's a hard choice and both sides have something to lose or win.
Aftermath: The Road Back
When Steve Jobs left Apple in 1985 it wasn’t the end for him it was actually the beginning of something big and brave after being kicked out he didn’t stop trying he started NeXT a new tech company that wanted to make strong computers for learning places and offices even if NeXT didn’t sell many machines the stuff they made was super smart and later turned out really useful
Around that time Jobs also took over Pixar from George Lucas it was small and not doing great but with Jobs running things it became something special with films like Toy Story Pixar didn’t just make fun stuff for kids it changed how people saw cartoons and helped open a brand new world for movies using computers
At the same time Apple without Jobs was not doing good it started making too many things got confused and stopped coming up with new cool stuff the same group that let Jobs go now couldn’t find anyone who had his style his cool thinking and his way of knowing what people liked and needed
By 1997 Apple was almost finished so they bought NeXT not only for the tech but to bring Jobs back once he returned everything changed again with things like iMac iPod iPhone and iPad Jobs didn’t only help Apple stand up again he turned it into one of the biggest and most powerful names in the world
Lessons for Today’s Boards: Steve Jobs and Company Choices
When Steve Jobs was pushed out of Apple in 1985 it wasn’t just a normal business story it became a big example of how company leaders must make hard choices when ideas strong opinions and real life problems all meet it shows that even when someone is smart and full of big plans they might still be difficult to keep if they make things too risky or out of control this case still makes people in charge think deep today like how to keep new thinking safe while also making sure the company runs smooth what to do with a boss who’s great but hard to handle and when is it just too much even if that person has special skills
Jobs leaving and coming back later gives company leaders today a lot to learn it shows that being on a board means more than looking at money it means knowing how to keep the heart of a business strong while also staying smart about steps and goals sometimes the people with the wildest thoughts don’t fit in normal work ways but those are the ones who bring the most magic and push a business forward
Another point is that the right person might not be ready at the wrong time in 1985 Jobs had talent but he was also fast angry and not fully grown he had cool ideas but didn’t always work well with others or think about time and budget but when he came back in 1997 after failing at NeXT and winning with Pixar he was changed more calm and better at leading now he could match what Apple really needed he didn’t just come back he came back stronger
1. Big Thinkers Need Support Not Exit
Jobs was someone who could imagine things far ahead but also someone who made things too wild at times he had sharp mind and knew how to build stuff nobody else did but he was also tough loud and hard to follow he often forgot about cost or team stress and just kept pushing anyway
But people like Jobs are how big things happen they don’t follow the same path and they don’t stop but boards that just kick them out might fix one trouble and lose a big win later that’s why board groups need to stop asking only if they can deal with this person and start asking how to help them do well maybe they don’t need to be fired maybe they just need someone strong beside them like a partner to handle the rules or clear talks on what’s okay that way the wild part is safe but not gone and the company can grow without falling
2. Company Rules Aren’t Fancy But They Matter
Taking Jobs out wasn’t because they didn’t like him it was because they had to do something hard to keep the place safe things were messy products weren’t doing well and Jobs didn’t want to follow anyone’s lead so the board had to act that’s what board people are there for to make big calls when things get shaky
Being on a board isn’t fun or easy it means you need to stand up even to someone loved by all and make the call that helps not hurts it means thinking about what’s going to happen later not just right now and picking steady over exciting when you have to when Jobs was let go Apple didn’t get better right away in fact it got worse for some time but the board still did what their job was not to make one guy happy but to save the whole place
That story reminds everyone that rules and steps in a company are not just for show they take real guts and you have to be brave to do the right thing when it feels wrong to others
3. The Best Person Can Be Too Early But Still Be Right
Maybe the most real thing in the Jobs story is that being a good leader is not just about being smart it’s about time and growing too in the early days Jobs had ideas that were gold but he didn’t know how to work well with a team or how to slow down when needed he was too much all at once
Years later after he had wins and loses he came back to Apple as someone different not in mind but in how he used his mind he had learned to lead better to listen more and to think clearly his second time at Apple wasn’t just a repeat it was a brand new start and it made the company bigger than ever before
Boards now should think about that kicking someone out doesn’t always mean it’s over maybe they just need time to grow and come back ready real talent mixed with the right moment can do magic and that’s what Jobs did his return wasn’t just coming back it was becoming something new
Conclusion
Steve Jobs being taken out from Apple wasn’t some evil act or backstabbing story it was a mix of real people making tough calls for the company it was not because they didn’t like him it was cause things got messy and someone had to pick between running smooth or wild ideas even if those ideas came from someone super smart Jobs was not easy he acted loud fast and didn’t always listen but he gave Apple its special feel the board didn’t say no to his dreams they just couldn’t handle the way he worked back then
This shows us that big companies aren’t only made with cool thoughts but also with right time grown thinking and knowing when someone needs room to learn the call to move Jobs out hurt but it didn’t close the door it just hit pause so both sides could grow later on when Apple needed heart again and Jobs learned how to lead better without making the place fall apart they came back together and built something even stronger
So in truth the board didn’t stop what was next they waited till both Apple and Jobs were ready again that’s not losing that’s the quiet hard job of leading right




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