Microsoft CEO Satya Nadella on creating a culture that fosters ideas
Summary
TLDRIn this interview, Microsoft CEO Satya Nadella discusses the importance of culture in innovation and growth, reflecting on his personal journey and the company's transformation. He emphasizes empathy as a key driver of innovation and the need for continuous cultural refresh to adapt to new challenges and opportunities.
Takeaways
- 📚 Satya Nadella is the third CEO of Microsoft and has been with the company for over 22 years before taking the position in 2014.
- 💰 Under Nadella's leadership, Microsoft has generated $250 billion in market value, showcasing his ability to transform the company.
- 🔄 The concept of 'hitting refresh' is central to Nadella's vision for Microsoft, emphasizing the need for continuous innovation and cultural adaptation.
- 🌟 Bill Gates acknowledges in the foreword of Nadella's book that Microsoft had fallen behind competitors like Google but praises Nadella's role in turning the company around.
- 🤝 Empathy is highlighted as a critical element of Nadella's leadership style, impacting both his personal and professional life.
- 👶 Nadella's personal journey with his son, who has cerebral palsy, has deeply influenced his perspective on empathy and leadership.
- 💡 Empathy is not just a personal trait but is essential for business innovation, as understanding unmet customer needs drives new ideas.
- 🚀 Microsoft's culture is seen as a tool for success, enabling the company to learn from mistakes and grow, which is vital in the tech industry.
- 📉 Nadella acknowledges Microsoft's challenges in the smartphone era but views them as part of the company's broader journey of innovation and adaptation.
- 🌐 Microsoft's identity as a 'tool maker' is central to its purpose, creating technology that enables others to innovate further.
- 🏆 The success of tech companies like Microsoft brings significant power and responsibility, which must be balanced with the positive impact on society.
Q & A
Who are the three CEOs of Microsoft mentioned in the script?
-The three CEOs of Microsoft mentioned in the script are Bill Gates, Steve Ballmer, and Satya Nadella.
How long has Satya Nadella been the CEO of Microsoft?
-Satya Nadella has been the CEO of Microsoft for more than three years at the time of the interview.
What is the title of Satya Nadella's book?
-The title of Satya Nadella's book is 'Hit Refresh: A Quest to Rediscover Microsoft's Soul and Imagine a Better Future for Everyone'.
What does Bill Gates write in the foreword of Satya Nadella's book?
-Bill Gates writes about how Microsoft had fallen behind Google and how the original search team had moved on, highlighting Satya Nadella's role in turning things around.
What is the significance of the culture in a company's success according to Satya Nadella?
-According to Satya Nadella, the culture of a company is crucial for its long-term success as it needs to foster growth and enable the company to come up with new ideas and build new capabilities.
What is the role of empathy in business according to Satya Nadella?
-Satya Nadella believes that empathy is essential in business as it helps in meeting the unmet and unarticulated needs of customers, which is the source of innovation.
What was the first significant lesson on empathy Satya Nadella learned?
-The first significant lesson on empathy Satya Nadella learned was during his interview at Microsoft when he was asked what he would do if a child had fallen on the road. The interviewer emphasized the importance of immediate human response over an algorithmic approach.
How did the birth of Satya Nadella's son impact his perspective on empathy?
-The birth of Satya Nadella's son, who has severe cerebral palsy, taught him that empathy is not an innate capability but something that life experiences can teach you if you listen and observe.
What was Microsoft's position in the smartphone era according to the script?
-According to the script, Microsoft failed to lead in the smartphone era and barely managed to participate.
What is Microsoft's core purpose and identity according to Satya Nadella?
-According to Satya Nadella, Microsoft's core purpose and identity is to create technology so that others can create more technology, essentially being a tool maker.
How does Satya Nadella view the impact of technology companies on society?
-Satya Nadella believes that technology companies have a significant footprint and it's important for them to think about the surplus they create around them, ensuring that their innovation benefits society broadly.
Outlines
🚀 Transformation and Empathy at Microsoft
This paragraph introduces Satya Nadella, the CEO of Microsoft, who has been instrumental in the company's transformation since taking over the role more than three years ago. With a background of 22 years at Microsoft, Nadella has led the company to a $250 billion increase in market value. His new book, 'Hit Refresh,' discusses the personal and professional journey of reshaping the company's culture and vision. The conversation highlights the importance of empathy in business, innovation, and the company's ability to adapt and grow. Nadella shares personal anecdotes that have shaped his perspective on empathy, including a pivotal interview question and the birth of his son with cerebral palsy, which have deeply influenced his leadership approach.
🌐 Microsoft's Core Purpose and Social Impact
In this paragraph, the discussion shifts to Microsoft's core purpose and identity, emphasizing the company's role as a tool maker enabling others to create more technology. The conversation addresses the company's initial product, the basic interpreter for the Altair, and how this foundational tool-making mindset is more relevant today in a digitally transforming world. Nadella also touches on the broader social impact of Microsoft's technology, from enhancing small business productivity to improving public sector efficiency and educational outcomes. The importance of measuring success beyond financial metrics and considering the societal consequences of technological development is underscored, highlighting the company's commitment to balanced innovation and social contribution.
Mindmap
Keywords
💡CEO
💡Transformation
💡Empathy
💡Cerebral Palsy
💡Innovation
💡Culture
💡Market Value
💡Book Title: Hit Refresh
💡Search Team
💡Tool Maker
💡Digital Technology
Highlights
Satya Nadella became Microsoft's third CEO in 2014 after working there for 22 years.
Nadella has generated $250 billion in market value for Microsoft since becoming CEO.
His new book, 'Hit Refresh', discusses his personal and professional journey transforming Microsoft.
Bill Gates writes in the foreword that under Nadella's leadership, Microsoft has fallen behind Google in search.
Nadella believes culture is crucial for a company's long-term success and the ability to innovate.
He emphasizes the importance of empathy in business, especially for meeting unmet customer needs.
Nadella's first lesson in empathy came during a Microsoft interview question about a child who fell.
The birth of his son with cerebral palsy profoundly shaped Nadella's outlook on life and empathy.
Microsoft's original mission is to create technology that enables others to create more technology.
Nadella believes Microsoft's identity as a tool maker is more important than ever in the digital age.
He acknowledges Microsoft's hits and misses, emphasizing the importance of learning from mistakes.
Nadella sought to refocus employees on Microsoft's core purpose and identity, not just its 'cool factor'.
Microsoft's success is measured by the positive impact it has on businesses, the public sector, and education.
Nadella discusses the scrutiny and responsibility that comes with being a powerful tech company.
He stresses the importance of ensuring the benefits of technological development are broadly shared.
Nadella is the third CEO of Microsoft after Bill Gates and Steve Ballmer.
Transcripts
this company's had three seat hosts
they're all right here this is one two
three there they are Bill Gates
introduced a new CEO Microsoft more than
three years ago his name is Satya
Nadella he's become the company's third
CEO in 2014 after working at Microsoft
for 22 years since then he has generated
250 billion dollars with ABI and market
value from Microsoft he discusses his
personal and professional journey of
transforming the company in his new book
it's called hit refresh a quest to
rediscover of Microsoft soul and imagine
a better future for everyone Bill Gates
writes in the foreword we have fallen
behind Google and I have a fly in our
own studio our original search team has
moved on Satya was part of the group
that came in to turn things around
he was humble forward-looking and
pragmatic we welcome microphone CEO
Satya Nadella to the table welcome and
good morning thank you so much and to
change a culture is not easy how do you
do it and what are you looking to create
you know when a company is successful
one of the things that happens is the
concept that got you started in the
first place the capability that you have
and the culture all get into this
beautiful virtuous Locke and things are
going well then lo and behold you need
to come up with a new concept a new idea
for which you need new capability that's
when the culture has to be at its
premium in other words the culture needs
to enable you to come up with new ideas
build new capability so that's why I
think for companies to be successful
over a long period of time you need more
than a good idea and a good strategy you
need a culture that fosters that growth
and the capacity to refresh all the time
that's correct I mean that the fact that
everything that starts off and because
into a hyper growth ultimately does
taper off the real question is what do
you do when that happens how do you hit
refresh is sort of I think the real
challenge for us as individuals as
companies or us as societies and so you
said one of the things that starts with
you and for you it meant empathy which i
think is such a great concept Jeff
Weiner who you all are together I loved
it I think it's a great bromance between
the two of you both talk about empathy
a lot and I think that that's so
important and you cite in your book two
really strong examples of how your life
was changed by empathy and how it
carries with you today yeah I mean first
of all I think empathy is everything if
you think about even in the business
context for us our job is to meet the
unmet unarticulated needs of customers
that's where innovation comes from
there's no way we could innovate without
having the deeper sense of empathy so
what happened to you the FIR which I
write in the book is the interview my
foot interview at Microsoft the last the
very last question the last interviewer
asked me is what would you do if there
was a child who had fallen on the road I
saw I thought about it for a few seconds
I thought there was some algorithm there
and then I said I'll call 911 so the
interviewer just walks up and leaves and
I thought I'd blown the interview
because he then tells me look when a
child is on the ground and crying you
pick them up and hug them yes that is my
first big lesson on empathy and it
changed your life
absolutely I mean I reflected on it
quite a bit I mean and that's the other
point which is it's not some innate
capability I believe that your lives
experiences will teach you if you listen
and at least in my case that's what
rather it is that interview question the
birth of my son and every day at
Microsoft I learn about building Abdi /
insight to be able to see through others
I write that your son has severe
cerebral palsy that's right yeah he was
born here 21 years ago with you in
neutral as fixation which led to
cerebral palsy and his birth in the
initial phase for us at least for me was
more about like why did this happen to
me but it was only through watching my
wife for whom much it came much more
naturally to care for him that I realize
nothing happened to me something
happened to him and what my job was as a
father and that realization perhaps more
than anything else shaped my outlook in
the years to come you know it's
interesting because Microsoft you think
about Microsoft being a leader in
innovation and you write in the book
that in the smartphone era that
Microsoft had failed to lead and barely
managed to participate and then you say
see the sea and CEO is for culture how
does culture change innovation every
to me for a company that is successful
and to be continued to be successful in
something like high-tech for a long time
you're gonna have your hits and misses
if I look back you know 43 years ago
when the company got started - here we
are
competing with a whole set of new
competitors at every given point in time
the question is have you caught enough
waves even if your missed one or two
that's the real question and that's
where the culture I think helps if you
have a culture that allows you to learn
from your mistakes and still grow then
you are then we find right classes I
know it's very you talk about when you
wanted to get to your employees you said
that if the morale was low that the
people felt they had lost their cool
factor you have a Pacific call at 6:02
so you can talk to everybody and you
want them to know what this is what
we're gonna do to me it is not as much
about how we'd lost a cool factor or Rou
any of the myths misses we had it was
more about being in touch with our core
sense of purpose and identity if you
look at it right Microsoft's different
from a lot of other companies in the
Suns
our first product was the basic
interpreter for the Altair that's what
Paul and Bill created and that what it
Telegraph's for me is that we create
technology so that others can create
more technology that's who we are we're
a tool maker and in a world right today
where every walk of life and every
industry is being shaped by digital
technology our original thesis is even
more important and I wanted to be in
touch with it technology is so powerful
but also the success of tech companies
has made them very powerful and there is
much conversation today about putting
them on a very very strict scrutiny are
you worried about that I think that any
company that has done well has a
significant footprint especially
multinational II I think it's super
important for us to think about the
surplus we create around us I think when
I think about Microsoft one of the
things that gives me the greatest pride
whether I'm in New York area or I'm in
any part of the world
is the small businesses that are more
productive the large businesses that
have become more competitive the
public sector that's more efficient the
educational outcomes that are better
because of the work we do unless and
until we measure ourselves with the
outcomes outside of our own balance
sheet I think there's no long-term
success in business so it's incumbent on
you to take a look at what the
consequences are to technological
development absolutely and especially
how broad spread is the success around
you because of your innovation without
that I think the equation is not
balanced well third CEO Bill Gates Steve
Ballmer and now you congratulations
thank you so much bill patty Nadella
thank you so much and hit refresh is on
sale today
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