Author: Yang Li
On June 9, Microsoft's share price closed at $131.40 on the latest trading day, breaking through the $1 trillion mark and setting a record high, with its intraday share price soaring to $132.25.
The result is thatMicrosoft overtook Amazon and Apple to become the world's most valuable company, leading the last two companies by more than $100 billion.
If someone had traveled through time five years ago to today and found that Microsoft was the market capitalist on the planet, it would have been more or less astonishing.
After all, at that time, Microsoft was generally seen as being subjected to
Five years later, instead of becoming a sunset industry, Microsoft rose again to the top of the global market value list. Compared with Internet giants on the east coast of the ocean, Microsoft's market capitalization is the sum of Ali, Tencent and Baidu.
The transformation of large enterprises has never been easy, and it is easy to fall into the extreme of self-esteem or radical impulse.
Thirty years old is the magic spell of a technology company.
Japan's richest man, Sun Zhengyi, also admitted at the February 2018 financial conference that all technology companies will face a 30-year-old crisis. One company will be the largest in the world in a certain field. Then, after the rise of disruptive technology and the retirement of its founders, it will be replaced by the next generation of enterprises.
The former Silicon Valley giant Yahoo has fallen, Intel. At that time, Paul, founder of YCombinator.
Today, Microsoft not only makes money, but also regains the king's breath that makes rivals fear.
And the key to achieving this glorious moment is the current CEO Satya.
Who is Nadella?
On February 4, 2014, when Microsoft announced Indian-born Satya
After the announcement of the decision, many people were asking who Nadela was.?
At that time, Nadra gave his own answer:
At that time, he had worked for Microsoft for 22 years, worked in many business units such as Windows,Office, and led Microsoft's Bing search engine, SQL Server database and Azure cloud computing business.
At that time, looking forward to the new CEO can lead the transformation of the company, out of the predicament is also Yahoo. When Nadella took office, Marissa
In 2016, Yahoo's business was acquired and the company changed its name to Altaba (the name was said to be
Graham likened Microsoft to Roman tyrants Nero and Kemod, who relied on monopoly power inherited from IBM to frighten the tech world for 20 years and succumb to it.
Yahoo limited its positioning to the media because
In 2014, Microsoft, which once frightened Yahoo, also faced the challenge of strategic positioning.
A few days before Nadella took over, Bloomberg published an article entitled "Why don't you want to be Microsoft CEO", calling the Microsoft CEO post
Although Gates has retired, he is still the chairman of the board of directors, leaving little freedom for later generations. Global PC business growth has stagnated, while Apple and Google's smart mobile devices and related businesses have developed alarmingly.
Former CEO Ballmer missed out on embracing consumer hardware and mobile Internet.
More importantly, any big change is not easy for a company as big as Microsoft.
Nadella's appointment changed everything.
After taking office, Nadella mentioned in her e-mail to all employees that:
I buy a lot of books, though I don't necessarily finish them. I enrolled in many online courses, though not necessarily finished. But I firmly believe that if you stop learning new things, you will stop creating valuable things.
With this open mind, when Nadela first spoke in public after taking office, he held up an iPhone and showed off the email application installed in it. In the past, Microsoft used competitors'products to be taboo.
In Nadela's blueprint, Microsoft will become a cross-platform, cross-device software and cloud service provider. What kind of devices users use should not and will not affect the use of Microsoft's services.
Nadela knows that Microsoft, a generation of giants, will surely fall if it continues to chew on Windows and Office.
After recognizing the situation, Nadella quickly adjusted Microsoft's strategic layout and opened it.
Among them, including Windows 10 can run on any device; mobile phone, PC, tablet, Xbox and other platforms seamlessly connect a platform, application store;
Universal version of Office family office suite provides a consistent experience for Word, Excel, PowerPoint and other products on mobile phones, tablets and PCs. At the same time, Microsoft has cut down products that had not been successful, such as Windows Phone.
After radical internal reforms, Microsoft has gradually returned to Silicon Valley and the world's first technology camp after a period of silence, becoming the fourth largest company in global market value after Apple, Amazon and Google in 2017.
Nadela, the new leader who had not been looked upon by the outside world, became famous in World War I, and was praised by both the outside and the inside staff.
Why is it Nadella?
And Shen Xiangyang, Microsoft's global executive vice president, gave it to Satya.
He is an inspiring tutor and tireless educator; he is a learning hegemony and never tires of learning; he is full of curiosity and often breaks the casserole to ask the end.
In his book Refresh, Nadera redefines business and the future: the age of intelligence requires refresh management.
At the same time, he also put forward three directions: embracing empathy, cultivating the desire to learn everything, and building a growth-oriented thinking.
Nadela has no founder complex and is different from his two predecessors.
Before taking office as CEO, Nadella told the media: if they (Gates or Ballmer) yell at you and say
Nadella is approachable. He thinks that human beings are naturally compassionate. After many years, Nadella recalled Microsoft's past and wrote in Refresh:
First, we represent our eternal values, including diversity and inclusiveness; second, we sympathize with the harm that is happening around us. At Microsoft, we try to find differences, celebrate and invite them.
Our growing mentality culture requires us to truly understand and share the feelings of others. We must embrace our common humanity and aspire to create a society full of respect, empathy and opportunity.
Nadella wants to put empathy at the center of everything he pursues —— from released products to new markets, to employees, customers and partners.
“ Establish empathy for customers to meet their unmentioned and unmet needs. & rdquo; Nadella said that you can get more reliance on your customer resources.
For leadership, embracing empathy is a good way to get closer.
Former US acclaimed former President Ronald Reagan has been hailed as “great communicator” because of his superb persuasiveness. Reagan is mainly engaged in “understanding”, “and empathy” and optimistic and cheerful personality. Infect others.
Nadella has the curiosity to learn everything. His office is located on the 5th floor of Building 34, Microsoft headquarters in Red Raymond, Washington. It is not so much an office as it is a bookstore.
Books in various disciplines are piled up in bookshelves, and even long tables are full of books.
He said: "I have read a few pages of this book, and the book looks at a few pages. Of course, there are so many books I have seen from the beginning. But without a book, I can't live. ”
Nadella advocates the establishment of growth thinking. He said: “When everyone is cheering for you, it is the time when you should feel most afraid. ”
As the leader of the world's top companies, Nadella embraces empathy in the process of corporate refreshment, and uses growth thinking to think and solve problems. It can give entrepreneurs a lot of inspiration.
Nadella emphasized that he is not just a technical expert and manager. He thinks he is more like a humanist.
In September 2017, Nadella pointed out that individuals, businesses, and society as a whole must embrace change and continue to “refresh”.
He believes that we should remain optimistic about new things. The world as a whole is getting better and better, and progress is getting faster. Any product or platform that is dedicated to empowering individuals and inspiring individual creativity is on the right track.
Nadella's management worldview is deeply influenced by Stanford University psychology professor Carol · Devik.
The book "Refresh" mentions Carol · Devik's best-selling book, Lifelong Growth: Redefining a Successful Thinking Model, which distinguishes between two modes of thinking: a growing mindset and a fixed mindset.
Nadella believes that one cannot accurately predict future technological changes, but a growth mindset can make him better respond to uncertainty and have the opportunity to correct what he has committed in the face of rapid technological changes. The error, so it is necessary to constantly "refresh".
Nadella applies the concept of this book to managing Microsoft. For the concept of Microsoft, more people think that it is old and unchanging.
After Nadella became CEO, he drafted a new declaration for Microsoft employees. Nadella encourages all employees to face their work and life with a growing mindset.
How does he make the elephant dance?
Before Nadella took over, the smartphone business has been strangled by Apple and Google.
Cloud computing is dominated by Amazon. Search continues to burn money, with a share of less than 6%. Win8 is the most criticized system in Microsoft's history. Office is bound by the system, limiting the number of users. Microsoft's market capitalization is less than $300 billion.
So how did he let the elephant dance?
“In my opinion, Microsoft’s transformational battle is probably divided into two battles: first, to promote strategic transformation at the business level; second, to promote cultural change at the conceptual level. ”
In late March 2019, independent writer Li Beichen was invited to the headquarters of Raymond to explore the secrets of Microsoft's transformation. After visiting the different departments, he outlined the outline of the giant dance.
(1) Think of Windows as a means of reaching more users, not a purpose
After taking office, Nadella cut 26,000 & mdash; — Microsoft's acquisition of Nokia's equipment and services department with the departure, mobile phones and even Windows have been pushed to the edge.
For Microsoft, this is both a helpless and a relief. In the world of iPhone and Android, Microsoft has invested heavily in the mobile system strategy, and finally buried the dust in the market.
As Nadella foreseen at the time (for the acquisition of Nadella to vote internally), the operating system as a commercial infrastructure, there is no industry position.
Microsoft bought a lesson with $7.1 billion:
If you want to re-emerge, you can no longer regard Windows as the core engine. You must abandon your obsession with the stock market and abandon your attachment to the past.
This is also the core concept of Nadella's strategic transformation. He hopes to regard Windows as a means of reaching more users, not an end.
For example, he announced that he will be exempt from Windows licensing fees for smart mobile devices under 9 inches; when the new Windows 10 release is released, users are allowed to upgrade for free within a certain time limit, which makes Windows 10 the fastest-growing ever. version.
What's more, Microsoft's software on Windows has also got rid of the single bond and came to the platform of “Competitors” as a stand-alone application.
In February 2014, Nadella said in her speech to Microsoft CEO: “I will release a new product within a week”, this product is Office for iPad. On the second day of the product launch, Microsoft's share price soared to its highest point in nearly 14 years, as people began to realize that Microsoft no longer painted the ground.
The outside world has a more dramatic moment of perception. There was a speech. Nadella actually took the iPhone in front of the audience and took an iPhone from his pocket.
Then Nadella said: "I don't have an iPhone in my hand. I prefer to call it the iPhone Pro. Many of them are Microsoft applications. We use Microsoft software to arm the iPhone. ”
As you can imagine, when this words came out, it turned into applause. People once again strongly realized that Microsoft under Nadrah began to hope to cooperate fully with former competitors and become the top application developer of Apple and Android. .
Despite some detours, Microsoft realized that closure brought hidden dangers and that openness brought prosperity.
(2) Cloud and AI become Microsoft's concerns
Bill · Gates commented in the foreword of Nadella's new book "Refresh": Nadella is bold and innovative, bringing Microsoft into the artificial intelligence, cloud computing and other technical fields is a key choice.
In 2011, he was appointed as the head of an STB division, the third largest business unit within Microsoft after Windows and Office. The main business is Windows Server and SQL Server, and also includes the cloud in the incubation. The cloud is a small department with only a few people and is severely marginalized.
In 2011, Nadella took over the cloud computing department. It is precisely because of the performance of the cloud computing department that he later became the CEO, and precisely because of the improvement of the cloud, Microsoft has reshaped its vitality.
According to Nadella's public email, Microsoft has been tuned into three business divisions: Experience and Devices, Cloud Computing and Artificial Intelligence, Artificial Intelligence and Research.
The transformed Microsoft is a cross-platform, cross-device software and cloud service provider.
In fact, this decision was not easy. At that time, Amazon cloud service AWS had seized the market. Microsoft cloud service Azure started late, but Nadella’s judgment is that the battle of the cloud has just started, and the entire market is far from saturated.
For example, the needs of large enterprise customers are not fully satisfied. It is very troublesome for large enterprises to move the entire IT system to the cloud, and it is impossible for financial and government agencies to put all the data on the cloud. For them, the hybrid cloud is the most The best solution, so Microsoft used this as a breakthrough to compete with Amazon.
His philosophy is “to be better and not as good as it is” because Amazon's cloud business accounts for almost half of the market.
On October 25, 2018, Microsoft released its first quarterly financial report for fiscal year 2018 as of September 30.
Microsoft's revenue for the quarter was $29.084 billion, up 19 percent from $24.538 billion in the same period in 2017, up 18 percent from a year earlier, excluding exchange rate movements, while Microsoft's net profit for the first quarter was $8.824 billion, up 34 percent from a year earlier.
Nadela accelerated the company's entry into new areas such as cloud computing and games, and increased its investment in AI.
He led the acquisition of Mojang, a Minecraft computer game developer, for $2.5 billion in 2015, Linkedin for $26.2 billion in 2016, and GitHub, a hosting platform for open source software projects, for $7.5 billion last month.
It is worth mentioning that Microsoft is also attracting developers to the Azure cloud service platform with a more open attitude.
The most typical example is to let the Linux (open source community) into the Azure's IT framework, a few months after Mr. Nadra's chief executive, has been presented at a conference
2. Cultural Change
The strategy is clear, then the strategy is implemented resolutely, and finally the cultural change.
So, when he was appointed Microsoft's third chief CEO in February 2012, he told employees:
For Ballmer, loyalty to Microsoft is most important. Ballmer refuses to drive any car other than an American car. If Ballmer sees employees using competitors'products, he will be furious. It is said that he has dropped the iPhone on the ground.
Nadela, on the other hand, was able to demonstrate Microsoft's applications with his iPhone in public meetings.
In the era of PC dominated by Windows, Microsoft itself is the industry itself, enjoying risk-free monopoly profits for a long time, making it fall into the curse of certain resources.
When Nadela took office, Microsoft had degenerated into a bloated bureaucracy.
It's said, Steve.
The reason why it was put forward
But it is not so easy to popularize this concept. It needs a lot of cooperation in organizational structure. This concept cannot be generalized unless it can be modified from the infrastructure.
For example, Microsoft used to have an evaluation mechanism that employees always had to divide their ranks, because only a small number of employees were able to get promotion and raise their salaries.
Under this deformed system, employees always think about how to beat their teammates, Tim O, who has been a Microsoft executive for a long time.
Nadela's father was a senior Indian government official, and Nadela was inspired by his father that there is no more difficult task in the world than to build a sustainable organization.
For leaders, consensus by order is not a real consensus. Any organizational construction comes from a clear vision and culture that can promote progress from top to bottom and from bottom to top.
Nadela's efforts to change the way Microsoft people think have also had an impact on others.
But Nadela also knows that organizational structure is just an image. One Microsoft needs to arouse the underlying motivation of employees if it wants to become a reality.
But Nadella didn't choose to be efficient.
Today, Microsoft's new vision is to empower everyone and every organization on Earth and help them achieve more.
It's difficult to change a person's mental model. In the changing period, it's even more difficult to change one's mental model.
But Nadella cleverly found his mission and cleverly defined culture. Nadella said:
Therefore, he has a requirement for his employees, and for himself:
By setting an example, he promoted growth thinking as an activity of corporate culture.
In the internal consensus, he let every Microsoft employee have Microsoft mission statement printed on the back of the label and on the paper cup.
In this way, in the meeting, everyone's attitude and willingness to share with each other, the atmosphere of communication is different from the previous self-priority.
In fact, this change is driven by CEO Satia on the one hand, and employees also realize that if they do not change, they may be in trouble themselves.
Before Satia took office, Microsoft had never done anything to print the company's slogan on the label, but now everyone realizes that the slogan is not memorized, but reflected in action.
Aaron Levie, Chief Executive Officer of Box, said:
Nadella pointed to the core. After he took office, more than 2,000 Microsoft employees who had left Microsoft re-entered Microsoft, and Microsoft became cool again.
Nadella, from cricket,
Nadela grew up in India and loved cricket. In public interviews, he told a story of his own experience:
In a cricket match with an Australian player, a manager of his opponent's team found that Nadella had little chance to play when he was catching the ball far from the scramble point. So he took Nadella to the fight point.
This gives young Nadela an important inspiration: in the field you have to fight. You can admire your opponents, but you can't be afraid of them.
In his future management career, Nadela summed up three points:
Nadella read Norman at the business school
What impressed him deeply was a neglected lesson in the story: building team consensus and fostering trust and credit were the most urgent issues.
The fire captain knew that to escape from the fire, they needed to light a small line of fire.
But no one listened to his leadership. He was able to get other firefighters out of the fire, but he did not build a consensus to effectively play his leadership, which led to other members of the team paying the price of their lives.
Like the fire chief, Nadela believed that the team had to be persuaded to adopt a counterintuitive strategy to shift its focus to the cloud business.
In transition Microsoft, there are still a lot of things waiting for Nadella to take risks, but obviously, he enjoyed it. Nadella says the way he has benefited a lot in the last five years has been to ask himself every day:
Nadela, who dares to bet and loves introspection, knows that focusing on business direction does not mean that he will succeed in the end. For a company of 120,000 people, it will take time to answer whether it can turn around.
Typography: Wu Tsutsugamushi: Editor-in-chief of Lin Hongyu: Ye Zhengxin