Eat Sleep Work Repeat - better workplace culture Inside Microsoft's cultural reinvention
Mar 3, 2020
Herminia Ibarra, a Professor at London Business School, discusses Microsoft's cultural reinvention under CEO Satya Nadella. She reveals how Nadella shifted the company from a competitive to a collaborative mindset, fostering innovation through humility and trust. Ibarra highlights the failures of past leadership styles and the importance of a learning-oriented culture. The conversation provides actionable insights for anyone looking to transform workplace culture, emphasizing storytelling and effective communication as tools for positive change.
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Microsoft's Inward-Competitive Culture
- Microsoft's culture under Steve Ballmer was highly political and inwardly focused, with departments competing internally rather than innovating externally.
- This internal competition diverted attention from the real market competition, contributing to a loss in innovation and market relevance.
Stack Ranking Stifled Innovation
- Microsoft used a stack ranking system that pitted employees against each other, fostering a culture of internal politics and fear of failure.
- This system discouraged risk-taking and innovation, leading to copycat products like Microsoft Zune and Microsoft Surface.
Nadella’s Hoodie Symbolism
- Satya Nadella’s first notable leadership signal was appearing in a hoodie and jeans, breaking from the traditional executive attire.
- This visual cue powerfully communicated that things would be different under his leadership.
