Could Apple Suffer From Living Up to Its Own Reputation?

Yes, the Apple Store organization is a paragon of customer service. But does living up to that image make it impossible for management to make sensible operational cutbacks?

The controversy that inspired the question was triggered by news that Apple SVP Retail John Browett — hired earlier this year to replace Ron Johnson after his departure for Penney's — would be trimming store staff. Reported by ifoAppleStore.com, Mr. Browett felt store operations were "too bloated." The Apple-observing site alleged that Mr. Browett was defying warnings from "retail segment veterans" that a reduction in store staff on the verge of an anticipated hot September selling season would be disastrous. "Browett disagreed with his staff," the story reported, "and said the chain needs to learn to run 'leaner' in all areas, even if the customer experience is compromised."

A number of over-the-top attacks followed on high-profile Apple-related blogs.

John Gruber, on his blog called Daring Fireball, quoted an infamous scene from Glengarry Glen Ross: "Second prize is a set of steak knives. Third prize is you're fired."

Jim Dalrymple's blog post on The Loop was entitled, "Apple boss tries to gut retail operation."

"This has the stench of a man looking to make a name for himself, not someone that's doing what's best for Apple or more importantly, its customers," wrote Mr. Dalyrmple.

Now, Mr. Dalrymple and others did make some good points. Sure, Apple Stores are highly profitable and Apple has a lot of cash reserves. Why risk backing off from customer service levels even an iota? And yet, could a retail exec with Mr. Browett's smarts, who reports directly to CEO Tim Cook, be that far off in his judgment? Surely he understands what has made Apple Stores successful. Is it outside of the realm of possibility that some locations really are over-staffed?

The Wall Street Journal, in a report last Thursday, characterized the original management decision of a few weeks ago as "a new staffing formula for its retail stores" calling for fewer hours for some associates and job cuts at certain stores. Whether an internal backlash among Apple employees, pressure from above or the media brouhaha are to blame isn't clear, but Mr. Browett has since apologized and reversed his decision.

Apple's official statement, as reported by CNN Money, was a serious exercise in eating crow: "Making these changes was a mistake and the changes are being reversed. Our employees are our most important asset and the ones who provide the world-class service our customers deserve."

On the surface it appears Apple screwed up, sucked it up, and is trying to move on. But one wonders if, like the party animal afraid to take a night off for fear of losing the respect of his admirers, Apple is now unable to make sensible operational decisions.

• Apple Retail Chief Admits Staffing Mistake - Wall Street Journal
• Apple Store chief admits he 'messed up.' Bloggers smell blood. - CNN Money
• Apple boss tries to gut retail operation - The Loop