Satya Nadella became CEO of Microsoft in 2014, successfully transforming the company by shifting its focus from a stagnant mobile strategy to cloud computing and other innovative technologies. He diagnosed internal issues, such as a toxic corporate culture and poor employee morale, and implemented major changes including a new performance review system and prioritizing customer obsession. Under his leadership, Microsoft saw a significant increase in stock value and market share, although challenges remain from competitors like Amazon in the cloud market.

1. Gauri Naik - IGTCPG28MU034
Namita Gulavani - IGTCPG28MU046
Sanket Mane- IGTCPG28MU074
Sanjeev Jha - IGTCPG28MU073
Growth Mind-set by
Satya Nadella at
Microsoft

2. Introduction
Satya Nadella is an Indian American business
executive from Hyderabad.
Satya Nadella replaced billionaire Steve
Ballmer as Microsoft CEO in 2014. Prior to
that, Nadella was Microsoft EVP of the cloud
and enterprise group.
Since taking over as a CEO, Microsoft's stock
has increased by more than 150%.
He has steered the company away from a failing mobile strategy and focused on other
segments, including cloud computing and augmented reality.
In 2016 he oversaw the purchase of the professional network LinkedIn for $26.2
billion.
A native of India, Nadella came to the U.S. as a student, earning an M.S. in computer
science from U. of Wisconsin-Milwaukee and an MBA from U. of Chicago.
After years of a stagnant stock price under Steve Ballmer, the stock has soared with
Nadella at the helm.

3. Flow of Presentation
• What was Nadella’s diagnosis of the problem at Microsoft?
• What action did he take to address the problems and
reposition Microsoft?
 Major actions taken by Nadella
 Grounding Pillar: Make the difference
 Surmountable Actions
• How effective has he been? What additional challenges do
you expect he will face?
• How would you describe Nadella as a Leader?

4. Diagnosis of Problem
Employee related problems
• Employees were hesitant to give new ideas as this was not appreciated
• Employee vision was narrow only focusing on performance rather than customers
• Nadella wanted to change the old culture of competition and flawed performance
review system that favored employees good at office politics
• The stacking system ensured employees were rewarded not only for doing well
but also making sure their colleagues failed
• External competition was causing good employees to leave
Leadership and Unity
• Nadella wanted a senior leadership team that promoted dialogue and would be
effective
• Microsoft seemed to value its own bottom line over organizational issues and
employee welfare
• The company was plagued with internal fights and bickering

5. Diagnosis of Problem
Business opportunities
• There was no collaboration with rivals which was necessary for growth and
technological progress
• Potential business opportunities were being killed due to power plays
Microsoft’s old culture
• Microsoft had a know-it-all mindset
• Nadella felt the need to shift the spotlight away from the pulpit and onto the
masses
• It was a product oriented company
• Hierarchy and order had taken control while creativity and spontaneity was killed
due to formal and rigid culture
Product and software
• Microsoft software was not being publicly shared for others to use
• Microsoft’s product development process was lagging

6. Major Actions Taken by Nadella
Prioritize
innovation and
to do more
Listening was
more important:
foundation of
Leadership
Demand of
roadmap to
remove paralysis

7. Grounding Pillar: Making the Difference
Customer
Obsession
Unarticulated
and unmet needs
of customer
through great
technology
Learn from
outsider and
bring to Microsoft
Diversity and
Inclusion
• Ideas, products and customer will be
better served
Open to learn about own
biases
One
Microsoft
United
Approach to
transcend the
barriers

8. Technology & Organization oriented
Surmountable Actions
Microsoft for mobile
and cloud first
Formed SLT as
cohesive team :To
promote dialogue
and effectiveness
Appointed people
who were capable to
align mission
strategy and culture
Transformed from
fixed mind-set to
growing mind-set :
Live our culture

9. Reposition of Microsoft
Changed
Performance
Review System
Conducted
activity for 10
inclusive
behaviours and
discuss it
Search market
potential directly
thro Employees
One Week
Hackathon:
Emerged Large
customer
potentials
Respected
INNOVATION not
a TRADITION
HoloLens and
Holographic
computer

10. Nadella’s Effectiveness
• Captured market $700 Billion based
on AI and Cloud Computing
• Received employee approval rating
95% on Glassdoor
• Over 95% of Fortune 500 companies
choose Azure for Cloud Computing
• Deal $26 Billion with LinkedIn and
provided formidable data hoard for
Artificial Intelligence operations
• Employee developed relationship
with customers towards long term
success and learnt ownership

11. 0 10 20 30 40 50
Amazon
Microsoft
IBM
Google
Next 10
Rest of Market
Amazon
Microsof
t
IBM Google Next 10
Rest of
Market
Worldwide Market
Share:Q2 2017
40 10 8 5 20 22
Worldwide Market Share:Q2 2017
Nadella’s Success
Gained market share: +3% in last 4 QuartersUndergone their own Digital
Transformation

12. Additional Challenges
• Microsoft has a second-place position in the growing cloud market, but an
opponent poses a threat: Amazon’s AWS (Amazon Web Services) which
commandeers roughly 40% of the market for public cloud services. Azure’s share
was just shy of 20% as of the third quarter.
-Synergy Research Group
• It’s easy for consumers to misunderstand Nadella’s new Microsoft that’s focused
on Azure and cloud computing and compared to IBM. Microsoft will need to tread
carefully if it wants to avoid such comparisons. But the company is certainly being
ambitious in its efforts to create a cross-platform environment that spans the
world’s computing devices.
• Microsoft also faces huge challenges from competitors that also want to manage
these billions of internet-connected devices. Amazon, ARM, Dell, Huawei, Cisco,
IBM, Intel, Google, HP, Oracle, Qualcomm, Samsung, and more are fighting over
this potential market, but there’s no clear winner in sight.

13. Additional Challenges
COVID situation
• Even though Microsoft is in good shape to weather the storm, the
uncertainty caused by the coronavirus pandemic makes it almost
impossible to predict how enterprise tech companies will fare over the
course of this cataclysmic year.
• That's because, generally speaking, enterprise software is not an impulse
buy. Microsoft warned investors in February that demand for Windows
PCs will come in lower than expected thanks to COVID-19, but it did not
reduce its guidance for the two divisions — Productivity and Business
Processes, which includes Office 365, and Intelligent Cloud, which includes
Azure and Windows Server — that have driven most of its growth over the
years that Nadella has been in charge.

14. Nadella As Leader
Nadella is a positive leader and uses terms such as “growth mindset” and
“empathy” that are reinforced by action
Looking beyond the horizon: He had a vision that cloud computing was
going to be the next big thing in the future
His style was leading through others, helping them become the agents
of Microsoft’s success
He was an avid reader which contributed greatly to his success as a
visionary leader

15. Nadella As Leader
Nadella is a good decision maker: investments in quantum computing and
mixed reality
His managing style is slow, deliberative, patient. Listening, probing,
questioning, he makes no snap decisions inviting inputs from others
Making the Right Moves at the Right Time: Microsoft’s LinkedIn
acquisition which is the world’s largest professional networking service
Nadella is proof that one can be a powerful and effective leader without
constantly being in the limelight