Satya Nadella at Microsoft: Leading the next transformation into AI
The case study follows Microsoft’s transformation under CEO Satya Nadella over the last decade. The story of the transformation emphasizes two critical and inseparable themes, namely strategy and leadership. In doing so, it hews closely with the classical view of a turnaround and how Nadella was able to command the attention of the organization as he breathed new life into what had become a complacent company resting on past laurels. It traces a host of changes that were made to articulate and implement a cloud-first strategy with an emphasis on customer centricity and ubiquity of the product suite. The changes called for destroying some of the core advantages the company had relied on in the past to deliver predictable revenue growth. It discusses the approaches that Nadella deployed to re-engage the talent of the company and rebuild a new culture consistent with his new vision for the company, and the manner in which he infused a growth mindset among the rank and file. It closes with the partnership deal with OpenAI and the changes that have followed at the company. The case also raises questions about the viability of another turnaround, this time a pivot toward generative AI in an intensely competitive landscape.
Students will learn:
1. To evaluate the conception and implementation of a turnaround strategy at a company that continued to hold a dominant share of a market that was undergoing significant change
2. To illustrate the leadership challenges that need to be addressed in revitalizing organizations where the case for change is less apparent and more nebulous
3. To identify the major obstacles that are encountered when leaders attempt to sustain the momentum for change when sequential transformations are demanded by changes in the market environment
