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Staying Power 175

launched a build-to-order computer business from his Uni-
versity of Texas dorm room at age 19. To avoid the cost and
risks associated with holding an inventory of components and
finished products, Dell got his orders from customers up
front, and then he secured necessary components to create
each customized computer. This approach brought advan-
tages from a cash flow perspective, but its most fundamental
value was that it directly tied his incremental investment of
resources to the presence of validated customer demand, ef-
fectively eliminating market risk from the startup equation.5

9 Relationship Risk. In 2006 and 2007, Mark Williams and his
Modality co-founders were developing a technology for de-
livering content to the Apple iPod that they felt was compat-
ible and secure within the iPod’s architecture. Overcoming
this technical barrier required them to continue to iterate
their software solution, called Modality Manager, but also
required Mark to convince key technologists and senior lead-
ers within Apple that Modality’s solution was safe and effec-
tive. As he wrote in a planning brief in January of 2007,
“Currently, Apple developers are uncomfortable with the
Modality Manager solution because of potential to cause
problems for consumers as the iPod platform evolves.”
The stakes attached to gaining Apple’s approval could not
have been higher. Modality’s offerings were exclusively de-
veloped for Apple’s vast customer base and designed to fit
within Apple’s products. Mark’s goal was to earn Apple’s full
support so that the powerful company would embrace and
champion Modality and its innovative solutions. But in terms
of scale and clout, Modality was the proverbial flea riding on
the back of a bear. At a minimum, Mark needed Apple lead-
ership to tolerate his early attempts to integrate his technol-
ogy with theirs. Anything less would amount to a deathblow.
Mark focused a great deal of time and energy into
strengthening his relationships with key Apple leaders, work-
ing to understand their objectives and concerns, and devel-

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