06/11/2024
Satya Nadella — CEO, Microsoft
When you think of warm, employee-friendly cultures, Microsoft may not be the first company you think of. Their history of workaholic, brutal work of Bill Gates, and the over-exuberant, sales-driven approach of Steve Ballmer don’t bring servant leadership to mind.
However, in 2014 Satya Nadella took the reins of Microsoft and dramatically changed the culture and the company’s trajectory by taking it in a very different cultural direction.
And what was the result of the new vision? In short, after 4 years, the value of Microsoft shares tripled.
Microsoft stock price after Satya Nadella took over with servant leadership
Microsoft stock price after Satya Nadella took over
The success of Satya
When Satya Nadella took over as CEO of Microsoft in 2014, he made listening to employees at all levels a priority. According to Forbes, he spent his first year as CEO engaging with employees across the company. This helped him shift the culture toward innovation, inclusion, and engagement.
In one defining statement, Nadella said: "We need to believe in the ability of people to grow and develop. We need to build a growth mindset organization." He realized the power of coaching and support, and made it a cornerstone of Microsoft's "Model, Coach, Care" framework.
Nadella made it clear that he expected every single employee at Microsoft to embrace a leadership role. But he soon realized there was an issue — he found that there were over 100 different definitions of "leadership" depending on where you worked in the massive company.
To address this, Nadella brought together a diverse team of leaders and asked them to come to a consensus on a simplified, unified meaning of what leadership means at Microsoft.
In an interview with Inc. he outlined three key things great leaders should create:
Clarity — in uncertain times, leaders must bring clarity to the path forward. As Nadella stated, "Your ability to come into an uncertain time and an uncertain future and bring about clarity is key."
Energy — leaders must inspire their teammates and create contagious enthusiasm. Nadella cautioned against those who say "everything around me is terrible" rather than energizing their team. He noted that "There is no simple thing that is always under your control, so the idea is that you have got to create energy all around you."
Success, no matter the circumstances — great leaders deliver results despite constraints. They don't make excuses but find ways to succeed in an "overconstrained space.
Nadella’s approach to listening, combined with encouraging leaders to bring positive energy to their teams is the kind of servant leadership that helps make it easier for employees to also want to bring positive energy and empathy to customers.
Most importantly, across these leaders — Cheryl Bachelder, Herb Kelleher, and Satya Nadella — show us that true leadership isn't just about charts and graphs; it's about caring for your people, empowering them, listening, and bringing positive energy.