Based on the Microsoft case study

1. How did CEO. How did CEO Satya Nadelia and HR Manager Kathleen Horgan revitalizing the purpose and mission of Micro-Soft?

2. Does it appear there was a push to have employees to confirm during the process?

3. What evidence does Microsoft have that the leadership was promoting Innovation by revitalizing the firm's mission and purpose?

1 of 2 CHAPTER 8 MANAGING CHANGE application 8.2 REVITALIZING THE MISSION OF MICROSOFT icrosoft turned 40 years old in 2015, and surveys, roundtable discussions, off-site meet a year before that, the board of directors ings, and internal focus groups. Hogan and he named Satya Nadella as the company's HR leaders looked at and conducted a battery third CEO following Bill Gates and Steve f surveys at different levels of the organiza Ballmer. In the run-up to Nadella's appoint- tion. They organized focus groups that looked a ment, a variety of stakeholders were routinely different dimensions: sales versus engineering criticizing Microsoft. The criticisms included millennials versus non-millennials, men versus an overly competitive culture that discouraged women, U.S. versus non-U.S. The idea was to collaboration, a too slow rate of innovation that take a step back and look at every possible prevented it from keeping pace with Google, angle, be as inclusive as possible, and work to Apple, and other more nimble organizations, a ensure a culture that reflects both what people strategy overly focused on sales and margins, already valued about Microsoft as well as aspi and a stock price stuck below $40/share. Almostrations for the future. everyone agreed it was time for a shake-up. But In a three-day executive off-site, Satya how do you shake-up a 40-year-old giant? asked Microsoft's senior leadership team and Under Nadella, early moves included corporate vice presidents to engage on the topic streamlining engineering processes, speeding of culture. In all, there were 17 breakout groups up decision making, describing a mobile first, that addressed the current and future culture cloud first" world, announcing a reversal of at Microsoft, and the leader of each breakou the closed mindset to an open-source policy, in turn became a culture cabinet. Over the acquiring Minecraft, and divesting the Nokia next three months, the culture cabinet pro acquisition. Behind the scenes, however, was vided feedback and guidance that was iteratec a far deeper set of moves whose intent was until a pivotal moment when Nadella declarec to change the culture at Microsoft. Early in his that Microsoft would ground its culture in the tenure, Nadella tapped Kathleen Hogan, who concept of a growth mindsetand that growth previously led 22,000 employees in Micro- mindset meant becoming more custome soft's Services Business, to head up HR. And obsessed, more diverse and inclusive, focuses he quickly made it clear that Hogan's job was to on 'One Microsoft-ail in service of making & orchestrate a culture change under the banner difference in the lives of employees, customers of a new vision and mission. But re-fashioning and partners. The focus on a growth mindset a vision or culture cannot be done overnight nor a concept pioneered by Dr. Carol Dweck, has can it be done by declaration and dict. become the Xfactor at Microsoft The purpose of this process, according to The guide for the culture change at Mic Hogan, was to come up with what she calls rosoft was a letter from Nadella to Microsof "the words to describe what we believe." The employees. The letter itself is the most com words were to be the mission and cultural attri- prehensive statement of the mission, and butes of Microsoft excerpts from the letter as well as other inter When Hogan was asked about how one view data are presented here utilizing the vision goes about changing the vision, mission, and framework proposed by Collins and Porras culture of a 100,000+ person organization, she In this case, the outcome of the process- said, "humbly and intentionally." For her, inten- the words-start with Microsoft's mission tionality involved getting input and support from "Empower every person and every organiza a lot of people. In the first year of the process, tion on the planet to achieve more." They also Hogan spent significant time getting feedback include bullet points on the company's strategy from employees. To zero in on the message. ambitions, leadership principles and culture she led an elaborate process of employee with the growth mindset at the heart. continu 174 PART 2 THE PROCESS OF ORGANIZATION DEVELOPMENT Core Ideology believe that we need a culture founded in a growth In terms of ideology, Hogan noted that Microsoft mindset. It starts with a belief that everyone can needed to think about its beliefs. It needed to rec grow and develop that potential is nurtured, not ognize that while there might be some beliefs that predetermined, and that anyone can change their required updating there were also some beliefs mindset. Leadership is about bringing out the best that should not change, beliefs that had been cen- in people, where everyone is bringing their A game tral to the organization's long-term success. At the and finding deep meaning in their work. We need to top of her list was this: "We're proud of our cul- be always learning and insatiably curious. We need ture of taking on big, bold ambitions as well as our to be willing to lean in to uncertainty, take risks and commitment of giving back. If you look at what our move quickly when we make mistakes, recognizing founder, Bill Gates, has done, you can see that is an failure happens along the way to mastery. And we important part of our legacy. There is, at Microsoft need to be open to the ideas of others, where the a belief or strongly held value that the organization success of others does not diminish our own." chooses big projects and then persists at achieving For Microsoft, continuity in its mission is bet- them. That persistence is a hallmark of the organiter than disruption. The various parts of Microsoft's zation. Additionally, the spirit of giving is paramount, mission are extensions of what has made it suc- both through creating technology that matters but cessful not radical departures from its values and also through company and employee philanthropic identity. A "too different mission might be viewed efforts suspiciously by organization members as "this is Nadella's memo to Microsoft was clear regard- not who we are." But a mission of what could be ing its mission and purpose. "I'm proud to share done by an organization with its ambitions was a that this is our new official mission statement great way to inspire a successful 40-year-old orga- This mission is ambitious and at the core of what nization operating in over 190 countries. our customers deeply care about. We have unique capability in harmonizing the needs of both individ- uals and organizations. This is in our DNA. We also Early Success deeply care about taking things global and making A USA Today article said, "seismic cultural shift a difference in lives and organizations in all comers is rocking Microsoft ..." and the proof is in the of the planet." numbers. In the two years since Microsoft's culture work began, there have seen measurable strides in its annual employee poll in measures around cul- Envisioned Future ture, leadership, and pride in working for the com- In keeping with its longstanding values, Nadella pany. Employee churn is reducing, and many of described Microsoft's strategy "to build best- those who left the company in the past are return in-class platforms and productivity services for a ing. In fiscal year 2017, 14 percent of new hires were mobile-first, cloud-first world. Our platforms will actually re-hires-the return of former employees harmonize the interests of end users, develop who heard about the big changes and returned to ers, and IT better than any competing ecosystem the company to be a part of it. or platform. We will realize our mission and strat Even with positive feedback from employees egy by investing in three interconnected and bold and customers about the evolving Microsoft, the ambitions company isn't resting on its laurels. Hogan noted it's Reinvent productivity and business processes important to "stay humble and stay the course. Our Build the intelligent cloud platform Senior Leadership Team continues to meet weekly Create more personal computing" to discuss our progress on our journey, because it is a journey, not a destination. It's important to not Microsoft's desired future state is best captured declare victory, culture is something you will need by the culture it wants to create. "We fundamentally to work on in perpetuity to see success