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The reason why Microsoft reclaimed its title as the world’s most valuable company

At this point, a new case study should be written about the success of Microsoft. The company has bounced back a few times and seems only to be getting stronger.

I’m sure we could identify lots of reasons for this success, but in my humble opinion, Microsoft reclaiming its title as the world’s most valuable company comes down to one thing: culture.

As Satya Nadella points out, he took the company from a culture of ‘know-it-alls’ to a culture of ‘learn-it-alls.”

Organizational culture is like a ghost. It manifests in visible and invisible ways. Everyone knows it's there, they can feel it, sometimes they can see it in behaviors, rituals and artifacts, but no one really owns it–or knows what to do with it.

To me, what’s most instructive for all companies seeking similar success is that Satya Nadella was intentional. Microsoft’s culture didn’t change by accident. Nadella didn’t hope someone else was going to do it.

Instead, he spent years patiently cultivating a belief system that emphasized empathy and a growth mindset. And he did it in his own unique way, which made it totally authentic and inspiring to his people. From the outside anyway, he didn’t appear to preach. He led by example.

Nadella’s approach isn’t for everyone. There are lots of leaders who couldn’t (and shouldn’t) try to model his behaviors and approach.

But there does seem to be a universal truth emerging that leaders everywhere should seek to replicate: if you want your company to thrive, innovate and create sustainable success, intentionally cultivate empathy and a growth mindset. How you do this is up to you, but the ambition should be the same for everyone.

 

 · 
01.19.2024
 · 
2 min read

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© Matt Huss

Helping private equity firms increase deal flow, reduce acquisition risk and grow portfolio value

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