Satya Nadella

How Satya Nadella shows the Tuner role

• On his first day as CEO, Nadella set a clear direction for Microsoft: serve a mobile-first, cloud-first world and keep learning. The message gave the company a practical standard for future decisions. [1]
• In 2016, Microsoft acquired LinkedIn for $26.2 billion and connected it with Office 365 and Dynamics. The deal extended products and relationships Microsoft had already built. [3]
• In 2018, Microsoft acquired GitHub for $7.5 billion and deepened its commitment to open source. This helped Microsoft build stronger relationships with developers and align with how they worked. [4]
• Nadella made learning a core part of Microsoft’s culture. His “learn-it-all” approach gave teams permission to keep developing their skills and adapt to new information. [7]
• In 2023, Microsoft completed its $68.7 billion acquisition of Activision Blizzard, expanding the reach of Xbox and its cloud-gaming business through a larger content portfolio. [5]

What made his approach effective

Where a Tuner needs to stay alert

• The U.S. Cyber Safety Review Board found avoidable errors that enabled a China-linked group to access emails belonging to senior US officials. It concluded that Microsoft’s security culture needed an overhaul. [12]
• The Board identified gaps in security investment and risk management, and recommended slowing some cloud feature development while security work caught up. [13]
• Microsoft’s Secure Future Initiative introduced new engineering processes and made security part of employee performance reviews. [14]
• Nadella also asked Microsoft’s board to reduce his cash bonus, citing personal accountability for the pace and focus security required. [15]

The lesson is practical: when the evidence points to a structural issue, take time to assess whether improving the current system will fully address it. Nadella’s decision to end Microsoft’s Windows Phone business in 2015 shows that he can make difficult, decisive calls when needed. [11]

Put the Tuner approach into practice

1. 1

   Set the new standard clearly. When you begin leading a team or project, write a short message that explains what matters now, what good work looks like, and how people can contribute. [1]

2. 2

   Give people a shared learning input. Choose one useful resource for your direct reports when you need to build a new capability. Discuss what it means for current work and decisions. [8]

3. 3

   Make values usable. Turn a broad value into a short set of behaviours people can use in meetings, feedback and one-to-ones. Clear language helps teams act consistently. [9]

Apply the lesson with care

Sources

Every numbered claim on this page links to one of these.

1. [1] Satya Nadella email to employees on first day as CEO
2. [2] Introducing Microsoft's new CEO: Satya Nadella
3. [3] Microsoft to acquire LinkedIn
4. [4] Microsoft to acquire GitHub for $7.5 billion
5. [5] Microsoft to acquire Activision Blizzard to bring the joy and community of gaming to everyone, across every device
6. [6] It's official: Microsoft closes $68.7B Activision Blizzard acquisition as UK approves restructured deal
7. [7] Satya Nadella transformed Microsoft's culture during his decade as CEO by turning everyone into 'learn-it-alls' instead of 'know-it-alls'
8. [8] Satya Nadella had his top lieutenants read Mindset by Carol Dweck, and then he did this
9. [9] Management Excellence at Microsoft: Model, Coach, Care
10. [10] Microsoft's valuation has increased 10x in the past 10 years under Satya Nadella
11. [11] Windows Phone haunts Microsoft CEO Satya Nadella 6 years after he gave up on it: 'one of the most difficult decisions I made'
12. [12] Review of the Summer 2023 Microsoft Exchange Online Intrusion
13. [13] Cyber Safety Review Board slams Microsoft security failures
14. [14] Announcing Microsoft Secure Future Initiative to advance security engineering
15. [15] Microsoft CEO asked board to cut pay in connection with security overhaul
16. [16] Microsoft executive profile: Satya Nadella
17. [17] Microsoft formalizes spots for Elop and Guthrie as Nadella puts team in place
18. [18] Microsoft names LinkedIn SVP Kevin Scott as CTO