How Microsoft CEO Satya Nadella changed the company culture - Business Insider

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Satya Nadella employed a 'growth mindset' to overhaul Microsoft's cutthroat culture and turn it into a trillion-dollar company — here's how he did it

. But Microsoft is perhaps the most powerful example of an organization that has used growth mindset, and the psychology behind it, to rebuild its culture. Nadella has encouraged Microsoft employees to be 'learn-it-alls' instead of 'know-it-alls'Since the era of Bill Gates, Microsoft's founder and first CEO, its leadership had generally rewarded the smartest person in the room. And Microsoft performed well under Gates, but that performance came at a cost.

Gates' successor, Steve Ballmer, also known for an explosive temper, later presided over the atmosphere depicted in that cartoon Nadella was determined to address. Ballmer was known for cultivating a culture in which Microsoft teams warred with each other, asNadella, who joined Microsoft as an engineer in 1992, came up in this culture, before becoming CEO in early 2014.

Microsoft's history as a tech-industry pioneer wouldn't help the company compete, Nadella wrote in an"Our industry does not respect tradition — it only respects innovation," Nadella wrote on Feb. 4, 2014, in a memo to employees days after taking on the CEO role. "Every one of us needs to do our best work, lead and help drive cultural change. We sometimes underestimate what we each can do to make things happen and overestimate what others need to do to move us forward.

 

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