SATYA NADELLA AT MICROSOFT: GOING BEYOND THE CASE

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Satya Nadella at Microsoft: Instilling a Growth Mindset Case Study

Assignment 2 Part A: Analyzing the Case

Jack Welch Management Institute

JWI 510: Leadership in the 21st Century

Prof name

2/16/2022

Introduction

Some of us are familiar with the large name Company’s comparable to Microsoft, but still don’t understand the level of challenges the company has handled. Ibarra mentioned through his journal, about how Nadella started engage cultural social change by promoting diversity, inclusion, and innovation once step up to the CEO position. He cultivate all those great skills frm the book of Carol Dweck that he read titled “Growth of Mindset: The New Psychology of Success.” This paper will deliver a breakdown of Nadella's leadership journey at Microsoft, it will give you the possibility to understand the struggle that the company was facing.

Diagnosis of the Problems at Microsoft

The problems at Microsoft was able to diagnose by Nadella, this diagnosis was able to bring change within the company because he had already been an internal employee that has observed and knows how to brainstorm, how to fix Microsoft culture issues. If Nadella was new to the company, it will be a very difficult situation to get an insight into the company. Although he had faced many challenges of dysfunction within the company he was able to set goals and expectations for social change. As a leader, being able to bring change in a dysfunctional workplace environment it's not simple. It's required skills to be a leader with consistency, goal-oriented, and passionate about changing people's life.

Major Challenges

When Nadella took charge as CEO at Microsoft, he knows this step of his life was going to be the biggest challenge. Nadella, after accepting the position as a CEO at Microsoft, will expose him to face dysfunctional leadership practice that was in place by the previous executive. As a current employee of Microsoft, Nadella understands very well how toxic was this workplace environment. During the transition as a new CEO, Nadella addressed a letter to the employee, he wrote the employees on February 14th to tell them how humbling his first day as a CEO of Microsoft is. He expresses what needs to be shifted to bring value to this company. He explained what will promote the company on its core values, Nadella explained in his letter that the company needs to highlight innovation because innovation can help promote the core value of empowering users and organizations.

Dysfunctional Zone

Nadella worked for Microsoft for a quite long time, which is why he was able to indicate what the dysfunctional issue with the company was. According to a journal from fast Company Microsoft has been facing some hard times facing issues with innovation and diversity.

According to fast company, it seem before Nadella’s leadership, Chain of command was not a great asset for Microsoft, at the time there was a lot of restriction where creativity had suffered. Rebuilding a company’s structure, can be challenging, during this leadership class we discovered that there are five main areas of dysfunction that can have a negative aspect on a team and the company itself, Growth Mindset was implemented at Microsoft, because Nadella realize the lacking of trust in the mission.

Lencioni. P clarified, about if an employee decided to be honestly open a leader about their mistakes and weaknesses there should be no room for leader to make it impossible to build a foundation for trust. Keep in mind if an employee voice cannot be heard it become a very toxic environment. When employees work in such a toxic environment, it causes them to be afraid of brainstorming so their job does not get affected. Ibarra explained when employee are trying to comment or tried to have their voice heard they hand up damage their position.

Goals for Transformation

As a long-time employee of Microsoft, Nadella’s highest motivation was to change the company's beliefs and core values, and vision, His dreams were to help Microsoft become well-known to have the effect to change its employees. His contribution bring to Microsoft advanced growth and core value. Ibarra described how it better to brig contribution to an organization then trying to move the ladder.so his vision was to promote diversity and inclusion. He completed it by practicing what he learned from Carol Dweck’s book entitled Mindset: The New Psychology of Success. This really made a big positive impact as a CEO on this company.

.Nadella as a Change Leader

After 2014, when Nadella became the Chief Executive Officer of Microsoft, the company started experiencing stable growth, Nadella took over from Steve Ballmer in 2014 and adopted a new vision and leadership style for Microsoft's unique journey, which brings a lot changed. Nadella's vision and actions exposed his leadership style ability. His leadership style is more diverse and core value to the company

Leadership Style

Nadella’s leadership at Microsoft brings the result needed. His leadership style is a good combination of autocratic, transformational, and visionary. “Leadership that Gets Results.” (D Goleman), when analyzing Nadella's leadership style, his style allows transformation right the way, he is more like a goal-oriented type a personal meaning when he set a goal, he will get a result no matter what. In 2015 an executive retreat allowed feedback by setting up customer visits. Nadella has shown to have an Authoritative leadership style by organizing focus groups and events as the tactic that Nadella used verified that Autocratic fits in the meantime it is defined to be used, and his leadership style and motivation bring change and new direction to the organization. As D. Goleman mentioned in his journal, changes require a new vision, or a clear direction is needed, definitely it was about time when Nadella step as the CEO of Microsoft. His promotion bring hope and grow of career path to the employees.

Rules of Leadership

Microsoft is where it is today with full of strength and dynamic due to the great leadership decision making of Nadella. His work was a work of a true leader that set by examples. Nadella take risk of turn thing around at Microsoft for a better outcome. "Leader inspirer risk-taking learning by setting the example." (Jack Welch's 8 rules). When he sent the letter to the employees to let them about decision-making within this company, he shows his team that he is always open to change and new ideas.

Improving Teamwork

Nadella enhanced teamwork and the culture of working together by creating an event in which a large number of people meet to engage in a new project. He enhanced this system strategy to get employees in different areas of Microsoft to work together to improve the workplace environment.

Growth Mindset

A growth mindset is positive advanced thinking, which embraces every misstep as a learning opportunity, it is an open-minded perspective that encourages improvement, which leads to success as a team. A growth mindset environment can help teammates to succeed by working toward skills improvement.

Assessment of Nadella’s Effectiveness

Since Nadella joined the executive role, Microsoft's value on the market was seven hundred times higher than what it used to be. According to quora.com, he came a long way in his journey as CEO promoting change within the organization for a better workplace environment for the employees, but his strategy help the team to be more motivated toward their careers, and also took the right decision by helping Microsoft focusing toward the clouds was able helping Microsoft become stronger.

Metrics to Measure Success

. Microsoft uses Performance metrics that are used in-year revenue and profit, then the Power metrics that are used for future-year performance those types of tools help the organization as an indicator of future results and customer satisfaction. (London, S., & Nadella, S., 2018.)”

Sustaining Wins

According to news Microsoft.com, I was reading that Nadella who is the executive vice president of Microsoft's Cloud and Enterprise group, led the transformation to the cloud infrastructure and services business. outperformed the market and took share from the competition. he was a great leader that was ready to win with his team, the first email sent out could tell of the kind he is. He mentioned to his employee through an electronic communication that tradition for Microsoft was not value but innovation is. (H. Ibarra. 2018). So innovation was always one of the greatest points he always wanted to address to help the company gain value and become big on innovation and be diverse where everyone can express their thought without worrying about getting fired.

Future Challenges

Microsoft’s organizational culture and operations would be and continue to be the constant growth in technology. At this time, the whole world is facing a pandemic and many organizations will step-up to adapt to the current situation that the world is facing. Sara Brown explained in her Journal, that there was a comprehensive debate between Nadella and the MIT economist David author, Nadella said “he sees potential for what he calls “small AI,” how technology can be democratized to empower workers, and how he looks at remote work now and after the pandemic.” Companies may find better ways to better support their customers as well as employees such as the construction site, in care management in hospitals, on manufacturing shop floors, to all participate in being able to do digitized work. If the work going to be digitized what will happen to the employees that use to do those jobs, Nadella may need to face those as future challenges to get answers to those questions.

Conclusion

The case study of Nadella’s journey as CEO of Microsoft help me discover how a leaders can have a different impact on a company's reputations and gain by applying the right strategy to help create value with right mindset. A leader's mission and the goal should continuously build up the employees to grow their company. Nadella's strong leadership skills were able to bring change at Microsoft. he step in as a great decision-maker to a better outcome.

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References

https://www.quora.com/How-is-Satya-Nadella-doing-as-CEO

https://news.microsoft.com/exec/satya-nadella/

What Microsoft’s Satya Nadella thinks about work of the future: by Sara Brown Nov 2020 https://mitsloan.mit.edu/ideas-made-to-matter/what-microsofts-satya-nadella-thinks-about-work-future

Fast Company. (2018). S. Nadella: The C in CEO Stands for Culture. www.fastcompany.com/40457741/satya-Nadella-the-c-in-CEO-stands-for-culture

H. Ibarra. 2018. Satya Nadella at Microsoft: Instilling a Growth Mindset. www.hbsp.harvard.edu

Lencioni, P. M. (2002). The Five Dysfunctions of a Team: A Leadership Fable. Retrieved from https://www.oreilly.com/library/view/the-five-dysfunctions/9780787960759/pt02.html

London, S., & Nadella, S. (2018, April 3). Microsoft's next act. Retrieved from https://www.mckinsey.com/industries/technology-media-and-telecommunications/ourinsights/microsofts-next-act

Welch, J. 2005, Winning

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