Ms1. Compare Microsoft with IBM since Rometty and Nadella became CEO.

Why do you think

Microsoft is growing while IBM is falling
Both Microsoft and IBM are prominent technology companies that have undergone significant
transformations under the leadership of their respective CEOs, Ginni Rometty and Satya Nadella.
Here's a comparison of the two companies during their tenure:

Strategic Focus: Microsoft has successfully shifted its strategic focus towards cloud computing,
artificial intelligence, and digital transformation. They have heavily invested in building a robust
cloud platform, Azure, which has experienced significant growth and adoption. Microsoft's focus on
providing innovative solutions and services aligned with the evolving needs of businesses has
helped them stay competitive in the market. On the other hand, IBM has faced challenges in
adapting to the changing technology landscape and has struggled to find a strong strategic
direction.

Cloud Computing Dominance: Microsoft's Azure cloud platform has emerged as one of the market
leaders, providing a wide range of services and solutions to businesses. They have been able to
capture a significant market share in the cloud computing space, which has driven their revenue
growth. In contrast, IBM's cloud offerings, such as IBM Cloud, have faced strong competition from
other major cloud providers, limiting their growth potential.

Embracing Open Source and Collaboration: Microsoft, under Satya Nadella's leadership, has
embraced open-source technologies and collaboration with other companies. This shift has helped
them gain credibility and engage with the developer community. In contrast, IBM historically had a
more proprietary approach, which limited their ability to collaborate and adapt to the changing
industry dynamics.

Cultural Transformation and Agility: Microsoft has undergone a significant cultural transformation
under Nadella's leadership. They have fostered a growth mindset, encouraged innovation, and
embraced agility in decision-making and execution. This cultural shift has enabled Microsoft to
respond quickly to market changes and customer needs. IBM, on the other hand, has faced
challenges in transforming its culture and adopting a more agile approach, which has hindered their
ability to adapt and compete effectively.

Product Portfolio and Market Positioning: Microsoft has a diverse product portfolio that spans
across various sectors, including cloud computing, productivity software, gaming, and enterprise
solutions. They have effectively positioned themselves as a comprehensive technology provider,
catering to the needs of both individuals and businesses. In contrast, IBM's focus has historically
been more centered on enterprise solutions, which has limited their market reach and growth
potential.
Ms2. Discus the causes of poor organizational learning under CEO Ballmer from the
perspective of Six Strategy Killers by Beer & Eisenstat.
The "Six Strategy Killers" framework, proposed by Beer and Eisenstat, provides insights into the
potential causes of poor organizational learning within a company. Analyzing the tenure of former
Microsoft CEO Steve Ballmer through this lens, we can identify several factors that may have
contributed to limited organizational learning during his leadership:

Strategic Myopia: Strategic myopia occurs when leaders have a narrow focus on short-term goals
and fail to anticipate or adapt to long-term changes in the industry. Ballmer's leadership at
Microsoft was marked by a strong focus on defending the company's existing Windows and Office
franchises, which limited their ability to anticipate and respond effectively to the rapidly evolving
technology landscape. This narrow strategic perspective may have hindered the organization's
ability to learn and adapt to emerging trends and competitive threats.

Autocratic Leadership: Autocratic leadership style can stifle organizational learning by limiting input,
suppressing dissent, and discouraging open dialogue. Ballmer was known for his strong-willed and
forceful leadership style, which may have created a culture where challenging assumptions or
suggesting alternative strategies was discouraged. This top-down approach can impede the flow of
diverse ideas and perspectives, hindering the organization's ability to learn from within.

Insufficient Feedback and Information Sharing: Organizational learning requires a culture of

openness, transparency, and information sharing. If feedback mechanisms and channels for sharing
knowledge are lacking, learning opportunities may be missed. It has been suggested that during
Ballmer's tenure, Microsoft's internal culture fostered silos and lacked effective mechanisms for
cross-functional collaboration and knowledge sharing. This limited feedback loops and inhibited the
diffusion of insights and best practices across the organization.

Resistance to Change: Organizational learning relies on a willingness to embrace change and

experiment with new ideas. However, under Ballmer's leadership, Microsoft was criticized for being
slow to adapt to disruptive market trends such as mobile computing and the rise of cloud services.
The company's resistance to change, coupled with a strong attachment to legacy products and
business models, may have hindered the organization's ability to learn from external changes and
adjust its strategies accordingly.

Lack of Empowerment and Ownership: Beer and Eisenstat argue that organizational learning is
facilitated when employees feel a sense of ownership and empowerment. However, during Ballmer's
tenure, there were reports of bureaucracy and a culture of micromanagement at Microsoft. This may
have stifled employees' autonomy and willingness to take risks, limiting their ability to learn from
experimentation and innovation.
Inadequate Learning Infrastructure: Beer and Eisenstat highlight the importance of establishing
systems and processes that facilitate learning and knowledge sharing. During Ballmer's tenure,
Microsoft faced criticism for its organizational structure, which was perceived as hindering
collaboration and agility. The company's size and complexity may have created bureaucratic barriers
and made it challenging to establish a robust learning infrastructure.

Ms3. How would you evaluate the progress and renewal success of Microsoft? What did
Nadella do well?
The progress and renewal success of Microsoft under the leadership of Satya Nadella can be
evaluated as highly positive. Nadella has implemented various strategies and initiatives that have
had a transformative impact on the company.

Emotional Capital: Satya Nadella's authentic leadership style, combined with his emotional
intelligence, has been instrumental in fostering a positive work environment at Microsoft. His ability
to empathize, show humility, and be transparent has built trust and loyalty among employees. This
emotional capital has contributed to improved employee satisfaction, engagement, and overall well-
being.

Listening and Encouraging Communication: Nadella has actively embraced a culture of listening and
open communication. He values diverse perspectives and encourages employees at all levels to
share their ideas, opinions, and feedback. By creating platforms for dialogue and actively listening
to stakeholders, Nadella has ensured that decisions and strategies are informed by a wide range of
perspectives.

Fostering Engagement Between Employees and Departments: Nadella has prioritized breaking down
silos and promoting collaboration among employees and departments. He has encouraged cross-
functional teamwork and eliminated barriers that hindered effective collaboration. By fostering
engagement and leveraging the collective expertise within Microsoft, Nadella has fostered a culture
of innovation and problem-solving.

Building a Sense of One-Microsoft Community: Under Nadella's leadership, there has been a shift
from individual fiefdoms to a unified "one-Microsoft" community. He has emphasized collective
success over individual accomplishments, promoting a shared sense of purpose and identity. This
approach has strengthened collaboration, knowledge sharing, and a sense of camaraderie among
employees.

Encouraging Better Conversations and Reducing Meeting Time: Nadella recognized the need for
efficient and productive communication within the organization. He has encouraged concise and
focused conversations, reducing unnecessary bureaucracy and increasing efficiency. By streamlining
processes and reducing the time spent in meetings, Nadella has empowered employees to spend
more time on meaningful work and innovation.

These initiatives have contributed to Microsoft's success in driving innovation, improving employee
satisfaction, and achieving significant growth under Nadella's leadership.

Ms4. Microsoft approaches the “Native” stage in the Stages of Digital Maturity? How?
Microsoft has made significant strides in approaching the "Native" stage in the Stages of Digital
Maturity.

Democratized Data-Driven Innovation Combined with Deep AI Expertise: Microsoft has

democratized access to data-driven innovation by providing tools and platforms that empower
users to leverage data effectively. They have developed advanced AI capabilities, such as Azure AI
and Cognitive Services, which enable organizations to harness the power of artificial intelligence in
their solutions. Microsoft's deep expertise in AI further enhances their ability to deliver sophisticated
AI-driven technologies and services to customers.

Agile Culture and End-to-End Solution Ownership: Microsoft has fostered an agile culture that
promotes collaboration, rapid iteration, and quick decision-making. They have embraced Agile
methodologies and practices, enabling teams to work iteratively and adapt to changing customer
needs. Additionally, Microsoft encourages end-to-end solution ownership, where teams take
responsibility for the entire lifecycle of their products and services. This approach enhances
efficiency, agility, and accountability across the organization.

Customized Self-Maintained Tools and Platform Infrastructure: Microsoft has developed customized
tools and platform infrastructure that cater to diverse customer requirements. They offer a range of
services and platforms, such as Azure, Office 365, and Dynamics 365, which can be tailored and
customized to meet specific business needs. Microsoft's focus on self-maintenance allows customers
to manage and customize their infrastructure efficiently, empowering them to optimize their digital
operations.

Optimized and Highly Automated Machine Learning Technology: Microsoft has invested significantly
in developing optimized and highly automated machine learning technology. They offer services like
Azure Machine Learning, which provide a scalable and efficient platform for developing, deploying,
and managing machine learning models. Microsoft's machine learning solutions streamline the
process of building and deploying models, enabling organizations to extract insights and drive
decision-making more effectively.
These initiatives enable Microsoft to provide advanced and customized digital solutions to their
customers while continuously innovating and evolving their offerings.