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CASE STUDY: How Satya Nadella overhauled Microsoft's cutthroat culture and turned it into a trillion-dollar 'growth mindset' company
Lehtikuva, Markku Ulander/AP Photo; Yuri Gripas/Reuters; Fabrizio Bensch/Reuters; Ruobing Su/Business Insider
Satya Nadella is the CEO of Microsoft. Steve Ballmer and Bill Gates are the former CEOs.
- Microsoft is a trillion-dollar company thanks largely to a culture shift led by Satya Nadella.
- Since Nadella became CEO in 2014, he's encouraged the entire company to adopt a growth mindset, or the belief that skills are developed through hard work and challenges are opportunities to learn.
- Before Nadella took over, Microsoft was characterized by competition between teams and between individual employees.
- Now, in keeping with a growth mindset, Microsoft evaluates employees' performance based partly on how much they helped their colleagues succeed. The company also looks to learn from its former rivals in the tech industry.
- Business Insider spoke with a range of company insiders and organizational researchers to get the inside story on how to change the culture of a 150,000+ employee software giant.
- Microsoft is a case study in how a growth-mindset culture can help companies succeed in the future economy.
- Click here for more BI Prime content.
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A cartoonist once drew an illustration depicting Microsoft's organizational chart as warring factions.
Take a look and you'll see three separate gangs: one blue, one green, one yellow. The gangs are assembled in pyramid-shaped hierarchies, with one leader at the top, two or three deputies at the next level, and so on.
A hand sticks out from each pyramid, pointing a gun directly at one of the others. It's clear. This is war.
And then Satya Nadella became CEO.
Nadella described the era of warring gangs in his 2017 memoir-manifesto, " Hit Refresh :" "Innovation was being replaced by bureaucracy. Teamwork was being replaced by internal politics. We were falling behind."
That particular cartoon - drawn in 2011 by a Google employee named Manu Cornet , no less - made changing Microsoft's culture Nadella's No. 1 goal as CEO.
"As a 24-year veteran of Microsoft, a consummate insider, the caricature really bothered me. But what upset me more was that our own people just accepted it," Nadella wrote. "When I was named Microsoft's third CEO in February 2014, I told employees that renewing our company's culture would be my highest priority."
Since becoming CEO, Nadella has been credited with a grand reinvention of Microsoft, exemplified by its market value exceeding $1 trillion, one of just a handful in history to hit that mark. When Nadella first took over, its market value was around $300 billion. The company has shifted from a has-been to a cloud powerhouse.
One of the keys to this transformation is a psychological concept that's become a mantra at Nadella's Microsoft: growth mindset .
Microsoft has traded a fixed mindset for a growth mindset
Growth mindset describes the belief that skills are developed through hard work and that challenges are opportunities to learn. Fixed mindset, on the other hand, refers to the belief that talent is innate and that struggling is a sign of failure. Research on the difference between growth and fixed mindset - and how they predict success - was pioneered by Stanford's Carol Dweck.
Early on in her career as a developmental psychologist, Dweck visited children at school and presented them with a series of increasingly difficult puzzles. Her goal was to better understand how people cope with failure. Some students, she found, weren't fazed by it.
In her 2006 book, " Mindset ," she recalls one 10-year-old boy who "pulled up his chair, rubbed his hands together, smacked his lips, and cried out, 'I love a challenge!'"
Dweck would spend the next five decades trying to figure out the difference between people who relish a good challenge and those who fear failure. Scores of studies published under her name suggest that people who see intelligence and abilities as learnable are more successful, personally and professionally, than people who think they're static.
Recently, Dweck coauthored a study that drew a link between growth mindset and organizational success . Employees who think their companies have a fixed mindset, the study found, interpret the company's culture as less collaborative, less ethical, and less willing to take risks than employees who think their companies have a growth mindset.
Given the rapid pace of technological change , these research findings are hyper-relevant. Across industries, adopting a growth mindset may be the only way to survive, and certainly the only way to thrive. When neither executives nor rank-and-file employees can predict what their jobs will look like next week, they need to embrace the resulting vulnerability, and get excited about learning.
Plenty of companies, in industries from telecommunications to early education, talk about cultivating a growth mindset , and about looking for job candidates who have 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.
In many ways, fixed mindset and growth mindset can describe Microsoft before and after Nadella.
Nadella has encouraged Microsoft employees to be 'learn-it-alls' instead of 'know-it-alls'
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, as previously reported by Business Insider .
Nadella, who joined Microsoft as an engineer in 1992, came up in this culture, before becoming CEO in early 2014.
By that point, the company's bid to compete in the smartphone market through the purchase of Nokia was proving to be a burden and would lead it to write off nearly the entire $7.6 billion acquisition price. The personal computer market was shrinking, leading to declines in Microsoft's flagship Windows operating system business, and the Xbox One console's poorly received launch made it a punchline.
Microsoft's history as a tech-industry pioneer wouldn't help the company compete, Nadella wrote in an email to employees on his first day as CEO. The company needed a change in mindset.
"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. We must change this."
Nadella's leadership philosophy evolved into the adoption of a growth mindset. He asked employees to be "learn-it-alls," not "know-it-alls," and promoted collaboration inside and outside the organization. Employees are now evaluated partly on how much they've helped others on their team.
Microsoft introduced a new performance-management framework based on growth mindset
With any company culture shift, executives run the risk of promoting jargon more than action, and of HR representatives being the only ones who know there's a culture change underway.
Microsoft has tried to avoid that fate, not only by training its employees on the psychology of growth mindset, but also by embedding the concept into its daily work flow.
Prompts to adopt a growth mindset appear on posters throughout Microsoft's campuses ( something at which employees sometimes poke fun ). At the start of a meeting, a manager might remind colleagues to approach an issue with a growth mindset.
And in one of the most significant manifestations of growth mindset, Microsoft has eliminated stack ranking .
Stack ranking was famously used by Jack Welch when he was CEO of General Electric. Ballmer used the system at Microsoft to evaluate employees, although he did start phasing it out prior to his departure. Microsoft managers had to rank their employees from one to five in equal measure. Which meant that, no matter how good the employees were, some of them had to get the lowest ranking of a five.
Performance was defined in stack ranking as the quality of individual work, and that emphasis on individual performance was linked to fierce competition among Microsoft employees. It was also a barrier to Microsoft's innovation, since it facilitated a culture that rewarded a few standout team members and even gave employees incentive to hope their colleagues failed.
Microsoft leadership says its new system for evaluating employees instead rewards collaboration. Managers and employees meet often to discuss performance , in keeping with the general trend of companies nixing annual reviews and having managers regularly speak with employees about their work.
"What we really value is three dimensions," said Hogan , Microsoft's chief people officer. "One is your own individual impact, the second is how you contributed to others and others' success, and the third is how you leveraged the work of others."
To use Hogan's examples, maybe a more seasoned employee helped someone new to the team, or a software engineer built on another engineer's work instead of reinventing it.
Microsoft recently applied growth mindset to a new framework for managers : model, coach, care. That's a combination of setting a positive example for employees, helping the team adapt and learn, and investing in people's professional growth.
To measure the impact of these initiatives in real time, Microsoft emails employees with a different question every day asking how they're feeling about the company and its culture.
The shift from competition to collaboration might seem like it would be a breath of fresh air. And on the whole, it has been. But employees say it's presented its own challenges, too.
Nadella pushes Microsoft executives to take on stretch assignments
Adopting a growth mindset can be uncomfortable, he said.
"Growth mindset is a euphemism because it can feel pretty painful, like a jump into the abyss," he said. "You need to be able and willing to confront your own fixed mindset - the things that make you believe something can't work. It's painful to go through personally, but when you get past it, it's tremendously rewarding."
The transition has been edifying, both in terms of his personal growth - Lee was recently named to the National Academy of Medicine - and Microsoft's growth in the industry, as it establishes itself as a meaningful player in healthcare tech.
Microsoft now sees the business case for letting go of its rivalries with other tech giants
Under Ballmer, Microsoft was notorious for prioritizing its Windows operating system and Office productivity applications businesses over the rest of the company - at one point, it even canceled the Courier tablet, which would have been an early, future-looking competitor to Apple's iPad, because it may have undermined Windows.
Likewise, Microsoft once shunned Linux, a free open-source operating system once considered the biggest threat to Windows. Ballmer once called it a "cancer." But early on in Nadella's time as CEO, Microsoft changed tack and proclaimed, " Microsoft loves Linux ."
It wasn't just Microsoft being friendly. There was a strong business case for blurring boundaries. At the time, Microsoft said it realized its customers used both Windows and Linux, and saw providing support to both as a business opportunity on-premise and in the cloud. That would have been unthinkable in the Ballmer years, but it's proven to be a savvy business move: Microsoft recently hinted that Linux is more popular on its Azure cloud platform than Windows itself.
Microsoft's relationship with Salesforce has followed a similar trajectory. Whereas Ballmer had frequent and public bouts with Salesforce CEO Marc Benioff , Microsoft under Nadella put aside its rivalry with Salesforce - which competes directly with Microsoft's customer-relationship-management Dynamics 365 product - in order to ink a big cloud deal that was good for the company overall.
Nadella even invites leaders from companies across industries to Microsoft's CEO Summit so the executives can learn from each other. Ballmer, meanwhile, famously snatched an employee's iPhone at a company meeting and pretended to stomp on it.
Which is not to say Microsoft always plays nice in the Nadella era. The company last summer changed licensing agreements to raise prices - often significantly - when customers choose to run certain Microsoft software on rival clouds including Amazon Web Services or Google Cloud. And it's been trading public barbs with AWS over the still contested $10 billion Pentagon cloud contract.
The Trump administration awarded the contract to Microsoft over AWS, but Amazon is challenging the decision in court, alleging political interference. In February, a judge ruled that Microsoft must stop working on the contract.
The culture shift at Microsoft is an ongoing process
The beginning of Microsoft's culture shift was rocky.
In "Hit Refresh," Nadella recalls a Microsoft manager who announced in the early days, "Hey, Satya, I know these five people who don't have a growth mindset." Nadella writes, "The guy was just using growth mindset to find a new way to complain about others. That is not what we had in mind."
Even today, Microsoft leaders acknowledge that the culture change isn't over . Things have improved under Nadella, but the company culture is still far from perfect.
Diversity is an opportunity for improvement at Microsoft. Much like the larger technology industry , Microsoft still employs relatively few women and people of color in leadership and technical roles.
One of Nadella's biggest gaffes as CEO happened early on in his tenure, when he suggested women should not ask for raises, but rely on "faith" and "karma." After these comments, Nadella sent out an internal memo admitting to his mistake, explaining how he planned to learn from it, and stating his belief in "equal pay for equal work."
Nadella writes in "Hit Refresh" that in some ways he's glad to have belly-flopped in public. "It helped me confront an unconscious bias I didn't know I had," Nadella writes, "and it helped me find a new sense of empathy for the great women in my life and at my company."
Kevin Oakes, who runs a human-resources research company that helped Microsoft with its shift toward growth mindset, sees Nadella as an exemplar of a leader during a transition. That's largely because Nadella practices the growth mindset he preaches. In a presentation at Talent Connect, an annual conference organized by LinkedIn (which is owned by Microsoft), Oakes said Nadella has been Microsoft's "culture champion." Nadella understands that organizational culture is critical to the company's performance, Oakes said.
But today's Microsoft is still far from perfect. The positive contributions of growth mindset have not yet matched up with diversity and equity for Microsoft's workforce, according to some employees. Microsoft is the subject of a gender discrimination lawsuit still pending , which was denied class-action status by a federal judge. Employees have also openly alleged sexual harassment and discrimination.
The company released its first diversity and inclusion report in 2019 to track its progress in hiring - and retaining - a more diverse workforce. Results from that report showed that minorities in Microsoft's US offices earned $1.006 for every $1 white employees earned. A closer look reveals that white men still held more high-paying leadership positions than women or underrepresented minorities.
Meanwhile, Microsoft leadership still has some philosophical differences with employees as it relates to employee activism. Employee groups have protested Microsoft and Microsoft-owned GitHub's relationship with Immigration and Customs Enforcement, and more recently, some employees have said Microsoft's relationship with oil and gas companies is at odds with the company's goal to become "carbon negative" by 2030.
Microsoft has been equally vocal about diversity and inclusion within its customer base, building products that are accessible to as many users as possible. Ben Tamblyn, a 15-year company veteran and Microsoft's director of inclusive design, mentioned Xbox as a prime example. In 2018, Tamblyn helped oversee the release of the Xbox Adaptive Controller , which makes it easier for gamers who have limited mobility or physical impairments to play. (Interviews with Neal and Tamblyn were arranged by Microsoft's public-relations firm.)
Microsoft is a case study in growth mindset
Microsoft's culture shift, and its accompanying business turnaround, is already a case study in business schools and in reports from management consultancies and research centers . That makes sense to Mary Murphy, a professor of psychological and brain sciences at Indiana University and Dweck's co-author on the paper about growth mindsets within organizations.
Growth mindset is essential for innovation in the technology industry, Murphy said, where change rarely happens incrementally. Instead, there are big inflection points from which there's no return. Microsoft, Murphy added, needs to be on the "cutting edge" of growth mindset in order to stay relevant.
Nadella, for his part, has modeled a growth mindset from the top of the organization, not least in his response to his tone-deaf comments about gender and compensation. "I learned, and we will together use this learning to galvanize the company for positive change," Nadella wrote in the memo he sent apologizing for the comments. "We will make Microsoft an even better place to work and do great things."
Got a tip? Contact reporters Shana Lebowitz via email at [email protected] and Ashley Stewart via email at [email protected] , message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242 .
NOW WATCH: How networks treat the Democratic debates like reality TV
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How Microsoft Became Innovative Again
- Behnam Tabrizi
Inside the cultural turnaround that helped the tech giant think like a startup.
How did Microsoft revive its culture of innovation? For years, the company has been written off for playing defense on its position in the tech world. But, as signaled by its partnership with OpenAI and its challenge to Google’s search supremacy, it has gone back on the offense. The about face was, at its core, a cultural shift, driven by CEO Satya Nadella. He drove this by inviting an existential moment when he stepped into the job, reconsidering the company’s purpose. Then, he laid out strategic changes that would enable the company to think more like a startup, and made business decisions that committed the company to this new direction.
For years now, observers of tech have written off Microsoft as a 20th-century phenomenon, fat and happy from its Windows monopoly. The tech giant hadn’t had a breakthrough innovation in decades. It was rich enough to be a fast follower, but too big and bureaucratic to lead in any market. Jeff Bezos was known to gesture east and admonish his Amazon colleagues not to become complacent like their Seattle neighbor.
- BT Behnam Tabrizi has been teaching “Leading Organizational Transformation” at Stanford University’s Department of Management Science and Engineering and executive programs for more than 25 years. An expert in organizational and leadership transformation, he has helped thousands of CEOs and leaders plan, mobilize, and implement innovative transformational initiatives. He has written ten books, most recently Going on Offense : A Leader’s Playbook for Perpetual Innovation (IdeaPress Publishing, August 2023). TabriziBehnam
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Microsoft SaaS stories is a collection of insightful interviews featuring Microsoft partners who have embarked on their unique software as a service (SaaS) journey. These interviews delve into the experiences of these partners as they develop and publish their SaaS solutions on the Microsoft commercial marketplace, while also highlighting their growth strategies and successes. By showcasing a diverse range of case studies, this series aims to inspire and inform businesses looking to build and scale their own SaaS offerings within the Azure ecosystem.
Episode 1: Basis Theory
In our first episode, we talk with Basis Theory features CTO Brandon Weber. Basis Theory shares how they built confidence with their customers by creating an easy-to-use SaaS platform that scales while remaining reliable and secure. Learn the challenges they encountered running a 24/7 service while evolving the service and handling customer growth.
Episode 2: Zammo.ai
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Microsoft Change Management Case Study
Microsoft is one of the most successful and influential technology companies in the world, having transformed the way people live, work and communicate with its innovative products and services.
But behind this success story lies a series of significant transformations and changes, which have enabled the company to stay relevant and competitive in a rapidly evolving market.
In this blog post, we will examine the change management strategies and techniques that Microsoft has employed over the years, and how these have helped the company to successfully navigate through various transformations and emerge as a global leader in the tech industry.
We will also look at some key lessons that other organizations can learn from Microsoft’s approach to change management, and how they can apply these to their own transformation efforts.
Overview of transformations and changes implemented by Microsoft
Microsoft has undergone numerous transformations and changes since its establishment in 1975. Here are five significant transformations or changes that have occurred:
- Transition to software development: Initially, Microsoft focused on hardware development and created BASIC language software for Altair 8800, a popular computer in the 1970s. However, after Bill Gates realized the potential of software development, the company shifted its focus to software, which led to the creation of MS-DOS, Windows operating system, and other popular software products.
- Move to the internet: With the emergence of the internet in the 1990s, Microsoft recognized the potential of this new technology and invested heavily in it. This led to the development of Internet Explorer, MSN (Microsoft Network), and various web-based applications.
- Diversification: Microsoft was initially known for its operating system and software products. However, in recent years, the company has diversified its offerings to include hardware such as Xbox gaming consoles, Surface tablets, and other products.
- Cloud computing: In the early 2000s, Microsoft recognized the potential of cloud computing and began investing in this area. The company launched its Azure cloud platform in 2010, which has become one of the leading cloud platforms in the world.
- Open source: In the past, Microsoft was known for its proprietary software and closed ecosystem. However, in recent years, the company has embraced open source technology and has made significant contributions to the open-source community. For example, Microsoft has made its .NET framework open source, and it has released various tools and platforms for open-source developers.
What are those factors that drove changes at Microsoft?
Here are some factors that led to the transformations in Microsoft:
- Market changes and competition: As the market for computer technology evolved, Microsoft needed to adapt to changing customer needs and preferences. In addition, competition from other technology companies also pushed Microsoft to make changes to stay relevant and competitive.
- Technological advancements: The emergence of new technologies such as the internet, cloud computing, and mobile devices created new opportunities for Microsoft to expand its offerings and reach new markets.
- Leadership changes: Over the years, Microsoft has had different leaders at the helm, and each leader brought their own vision and priorities for the company. For example, when Satya Nadella took over as CEO in 2014, he emphasized the importance of cloud computing and digital transformation, which led to significant changes in the company’s focus.
- Customer feedback : Microsoft has always had a strong focus on customer feedback, which has played a significant role in shaping the company’s products and services. Customer feedback can also drive innovation and change in the company’s offerings.
- Cultural changes: Microsoft has undergone cultural changes over the years, such as the adoption of open-source technology and a more collaborative and inclusive work environment. These cultural changes can help drive innovation and lead to new ideas and products.
How strong leadership caused transformation in Microsoft ?
Strong leadership has played a critical role in all of the transformations made by Microsoft over the years. Here are some ways in which strong leadership has contributed to these transformations:
- Clear vision and direction: Strong leaders at Microsoft have always had a clear vision and direction for the company, which has helped to guide its transformation efforts. For example, Bill Gates and Steve Ballmer led the company through its early years, and their vision of putting a computer on every desk and in every home helped to drive the company’s success in the 1980s and 1990s. Similarly, Satya Nadella’s vision of empowering people and organizations to achieve more has driven the company’s recent focus on cloud computing and digital transformation.
- Strategic decision-making: Strong leaders at Microsoft have made strategic decisions that have helped to position the company for success in a rapidly evolving market. For example, the decision to shift the company’s focus from hardware to software development in the 1980s was a strategic decision that helped to pave the way for the company’s success in the following decades.
- Agile approach: Strong leaders at Microsoft have embraced an agile approach to change management, which has enabled the company to quickly respond to changes in customer needs and market trends. For example, under Satya Nadella’s leadership, Microsoft has shifted its focus to cloud computing and digital transformation, which has helped the company to remain relevant and competitive in a rapidly evolving market.
- Employee engagement and empowerment: Strong leaders at Microsoft have recognized the importance of employee engagement and empowerment in driving change management. For example, under Satya Nadella’s leadership, the company has created a culture of innovation and collaboration, and has encouraged its employees to take risks and experiment with new ideas.
The biggest outcome of the successful changes at Microsoft
The biggest outcome of the successful changes at Microsoft is the company’s continued growth and success in a rapidly evolving market. By successfully navigating through various transformations, such as the shift from hardware to software development, the move to cloud computing, and the focus on digital transformation, Microsoft has been able to remain relevant and competitive in the tech industry.
The company’s continued success has been reflected in its financial performance, with Microsoft consistently posting strong earnings and revenue growth in recent years. In addition, the company’s products and services, such as Windows, Office, and Azure, are widely used and trusted by customers around the world. Overall, the biggest outcome of the successful changes at Microsoft has been the company’s ability to stay ahead of the curve and remain a leader in the tech industry.
Final Words
Microsoft’s successful implementation of changes provides valuable lessons for organizations looking to navigate through periods of transformation and change. By adopting a customer-focused approach, embracing an agile methodology, empowering employees, and having strong leadership with a clear vision and purpose, Microsoft has been able to successfully navigate through various transformations and remain a leader in the tech industry.
Additionally, the company’s willingness to experiment with new ideas and take risks has enabled it to stay ahead of the curve and remain relevant to its customers. As a result, Microsoft’s continued growth and success serve as a testament to the importance of effective change management in driving organizational success. Overall, Microsoft’s successful implementation of changes provides a valuable case study for other organizations to learn from and apply to their own transformation efforts.
About The Author
Tahir Abbas
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Home / Case Studies / Life sciences nonprofit
Life sciences nonprofit improves collaboration and compliance while protecting their IP with Office 365 and Proventeq
Published on July 8, 2020
Life sciences nonprofit
Proventeq helps organizations transition from other systems to Intelligent Workplaces built upon SharePoint, Teams, and Azure. They are a Microsoft Gold Partner and a Microsoft Chartered Partner in Content Services.
A life sciences charity, focused on improving human health by adding value to early-stage scientific research, looked to Proventeq to help migrate to Microsoft 365. The organization wanted to migrate away from their Documentum ECM system and take advantage of the functionality, mobility, and enhanced security offered by Microsoft 365 services like SharePoint, OneDrive for Business, and Teams. This year-long migration and Office 365 adoption project enables the life sciences charity to collaborate with their scientific and charitable partners while protecting the intellectual property in their research.
While the life sciences charity had a Documentum ECM system, their users lacked the motivation to engage with it. They found it cumbersome to access documents in the source system due to restrictions and pre – requisites around browser plugins and software. Users also wanted a more connected environment where they could share and collaborate in virtual workspaces accessible from anywhere and from multiple starting points (e.g., Office 365 apps, iOS apps, browsers, etc.).
In addition, the organization wanted to reduce the licensing, infrastructure, and support costs associated with having a content management system.
They realized it was time to make a change. However, moving from the legacy on-premise system to Office 365 presented its own challenges.
It would require a significant restructuring of the file systems and processes to align with how records need to be stored and accessed in SharePoint. Also, the project would require a strict migration timeline to prevent additional costs due to renewal costs of Documentum license and support.
Migrating from Documentum would not be an easy process due to issues around proprietary formats and labels from the original locations. This included the charity’s Intellectual Property management systems being tightly integrated with assets stored in Documentum, which required updating for migration. Furthermore, the business process relied on external systems that have tight integrations with documents stored within Documentum.
The life sciences charity turned to Proventeq to help with this migration and adoption project. As part of a holistic Office 365 adoption strategy, the project team created proper project management plans, agreed upon and executed from both sides. They set up the necessary governance within Office 365, and they put in place a clear and effective communications and training plan to guarantee successful adoption of Office 365.
The team migrated all enterprise content from cabinets in the Documentum system to specially provisioned department sites on SharePoint, while they migrated all user content to their individual OneDrive allocations.
The project team made content secure by translating security policies (in adherence with strict regulatory requirements for the Finance and HR departments) from Documentum to SharePoint.
They provided a user-friendly interface for all users which included the ability to co-author documents and leverage integrated solutions to auto-tag content, especially for the Legal department.
They created a dedicated area for the Projects team to work on active and closed projects , along with custom SPFx components to facilitate better working with projects. Deploying Microsoft Teams for these projects provided users with a platform for better project collaboration.
To ensure data integrity, the team resolved data corruption in the source using Proventeq Migration Accelerator and they also updated the third-party systems integrating to Documentum (like the Intellectual Property management platform).
Moving to Office 365 was a key component of our ongoing plan to centralise and improve accessibility and gain more meaningful insights from our business and scientific data. Working closely with Proventeq as our specialist technical partner, we were able to migrate from our legacy content management platform into Office 365 with confidence.
The life sciences charity is seeing improved collaboration and compliance of the document management system because SharePoint and Microsoft Teams, in conjunction with the Office 365 suite, create a virtual workplace where teams can meet, collaborate, complete tasks , and work on documents from a centrally based repository. SharePoint enables employees to access business content from anywhere and from multiple starting points.
By transitioning to Office 365, the life sciences charity has been able to make significant cost savings (up to 60%) by reducing licensing, infrastructure, and support costs.
Now, the organizaiton has easier and more powerful administration and management coupled with provisions for Data Loss Prevention to protect their academic research.
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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
- Microsoft is a case study in how a growth-mindset culture can help companies succeed in the future economy.
- Microsoft is a trillion-dollar company thanks largely to a culture shift led by Satya Nadella.
- Since Nadella became CEO in 2014, he's encouraged the entire company to adopt a growth mindset, or the belief that skills are developed through hard work and challenges are opportunities to learn.
- Before Nadella took over, Microsoft was characterized by competition between teams and between individual employees.
- Now, in keeping with a growth mindset, Microsoft evaluates employees' performance based partly on how much they helped their colleagues succeed. The company also looks to learn from its former rivals in the tech industry.
- Business Insider spoke with a range of company insiders and organizational researchers to get the inside story on how to change the culture of a 150,000+ employee software giant.
- Visit Business Insider's homepage for more stories .
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A cartoonist once drew an illustration depicting Microsoft's organizational chart as warring factions.
Take a look and you'll see three separate gangs: one blue, one green, one yellow. The gangs are assembled in pyramid-shaped hierarchies, with one leader at the top, two or three deputies at the next level, and so on.
A hand sticks out from each pyramid, pointing a gun directly at one of the others. It's clear. This is war.
And then Satya Nadella became CEO.
Nadella described the era of warring gangs in his 2017 memoir-manifesto, " Hit Refresh :" "Innovation was being replaced by bureaucracy. Teamwork was being replaced by internal politics. We were falling behind."
That particular cartoon – drawn in 2011 by a Google employee named Manu Cornet , no less – made changing Microsoft's culture Nadella's No. 1 goal as CEO.
"As a 24-year veteran of Microsoft, a consummate insider, the caricature really bothered me. But what upset me more was that our own people just accepted it," Nadella wrote. "When I was named Microsoft's third CEO in February 2014, I told employees that renewing our company's culture would be my highest priority."
Since becoming CEO, Nadella has been credited with a grand reinvention of Microsoft, exemplified by its market value exceeding $1 trillion, one of just a handful in history to hit that mark. When Nadella first took over, its market value was around $300 billion.
One of the keys to this transformation is a psychological concept that's become a mantra at Nadella's Microsoft: growth mindset . The concept has helped Microsoft made the shift to remote work with aplomb, reaching a market cap of more than $1.6 trillion, showing that Nadella's strategy has survived the pandemic intact.
Microsoft has traded a fixed mindset for a growth mindset
Growth mindset describes the belief that skills are developed through hard work and that challenges are opportunities to learn. Fixed mindset, on the other hand, refers to the belief that talent is innate and that struggling is a sign of failure. Research on the difference between growth and fixed mindset — and how they predict success — was pioneered by Stanford's Carol Dweck.
Early on in her career as a developmental psychologist, Dweck visited children at school and presented them with a series of increasingly difficult puzzles. Her goal was to better understand how people cope with failure. Some students, she found, weren't fazed by it.
In her 2006 book, " Mindset ," she recalls one 10-year-old boy who "pulled up his chair, rubbed his hands together, smacked his lips, and cried out, 'I love a challenge!'"
Dweck would spend the next five decades trying to figure out the difference between people who relish a good challenge and those who fear failure. Scores of studies published under her name suggest that people who see intelligence and abilities as learnable are more successful, personally and professionally, than people who think they're static.
Recently, Dweck coauthored a study that drew a link between growth mindset and organizational success . Employees who think their companies have a fixed mindset, the study found, interpret the company's culture as less collaborative, less ethical, and less willing to take risks than employees who think their companies have a growth mindset.
Given the rapid pace of technological change , these research findings are hyper-relevant. Across industries, adopting a growth mindset may be the only way to survive, and certainly the only way to thrive. When neither executives nor rank-and-file employees can predict what their jobs will look like next week, they need to embrace the resulting vulnerability, and get excited about learning.
Plenty of companies, in industries from telecommunications to early education, talk about cultivating a growth mindset , and about looking for job candidates who have 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.
In many ways, fixed mindset and growth mindset can describe Microsoft before and after Nadella.
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 was famous for meltdowns and browbeating – so much so that Microsoft cofounder Paul Allen once described working with Gates as "being in hell." Gates would only back down if you could convince him you knew what you were talking about, Allen said.
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, as previously reported by Business Insider .
Nadella, who joined Microsoft as an engineer in 1992, came up in this culture, before becoming CEO in early 2014.
By that point, the company's bid to compete in the smartphone market through the purchase of Nokia was proving to be a burden and would lead it to write off nearly the entire $7.6 billion acquisition price. The personal computer market was shrinking, leading to declines in Microsoft's flagship Windows operating system business, and the Xbox One console's poorly received launch made it a punchline.
Microsoft's history as a tech-industry pioneer wouldn't help the company compete, Nadella wrote in an email to employees on his first day as CEO. The company needed a change in mindset.
"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. We must change this."
Nadella's leadership philosophy evolved into the adoption of a growth mindset. He asked employees to be "learn-it-alls," not "know-it-alls," and promoted collaboration inside and outside the organization. Employees are now evaluated partly on how much they've helped others on their team.
Microsoft introduced a new performance-management framework based on growth mindset
With any company culture shift, executives run the risk of promoting jargon more than action, and of HR representatives being the only ones who know there's a culture change underway.
Microsoft has tried to avoid that fate, not only by training its employees on the psychology of growth mindset, but also by embedding the concept into its daily work flow.
Prompts to adopt a growth mindset appear on posters throughout Microsoft's campuses ( something at which employees sometimes poke fun ). At the start of a meeting, a manager might remind colleagues to approach an issue with a growth mindset.
And in one of the most significant manifestations of growth mindset, Microsoft has eliminated stack ranking .
Stack ranking was famously used by Jack Welch when he was CEO of General Electric. Ballmer used the system at Microsoft to evaluate employees, although he did start phasing it out prior to his departure. Microsoft managers had to rank their employees from one to five in equal measure. Which meant that, no matter how good the employees were, some of them had to get the lowest ranking of a five.
Performance was defined in stack ranking as the quality of individual work, and that emphasis on individual performance was linked to fierce competition among Microsoft employees. It was also a barrier to Microsoft's innovation, since it facilitated a culture that rewarded a few standout team members and even gave employees incentive to hope their colleagues failed.
"We had a little bit of a 'not-invented-here' syndrome," Microsoft Chief People Officer Kathleen Hogan previously told Business Insider , referring to the tendency for developers and even organizations to reject acceptable solutions to problems if they hadn't developed those solutions themselves.
Dweck's research helps explain this trend, too. Her studies suggest that stack ranking's emphasis on "star" employees can leave everyone else afraid to try anything new, for fear of failing. In turn, that means companies are less innovative.
Microsoft leadership says its new system for evaluating employees instead rewards collaboration. Managers and employees meet often to discuss performance , in keeping with the general trend of companies nixing annual reviews and having managers regularly speak with employees about their work.
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"What we really value is three dimensions," said Hogan , Microsoft's chief people officer. "One is your own individual impact, the second is how you contributed to others and others' success, and the third is how you leveraged the work of others."
To use Hogan's examples, maybe a more seasoned employee helped someone new to the team, or a software engineer built on another engineer's work instead of reinventing it.
Microsoft recently applied growth mindset to a new framework for managers : model, coach, care. That's a combination of setting a positive example for employees, helping the team adapt and learn, and investing in people's professional growth.
To measure the impact of these initiatives in real time, Microsoft emails employees with a different question every day asking how they're feeling about the company and its culture.
The shift from competition to collaboration might seem like it would be a breath of fresh air. And on the whole, it has been. But employees say it's presented its own challenges, too.
Nadella pushes Microsoft executives to take on stretch assignments
Nadella asked Peter Lee , one of the company's top researchers, to make a big change.
It was 2017 and Lee – now corporate vice president of Microsoft healthcare – had long worked on broader technology problems as a key leader in Microsoft Research, the company's research division.
Nadella wanted him to take on a new challenge and lead the company's emerging health care business, using his background in artificial intelligence and cloud computing to find new ways to tune the products to the needs of healthcare companies.
"Taking on healthcare was something that really perplexed me at first," he said. "I joked Satya sent me out into the Pacific Ocean and said, 'Go find land.'"
Adopting a growth mindset can be uncomfortable, he said.
"Growth mindset is a euphemism because it can feel pretty painful, like a jump into the abyss," he said. "You need to be able and willing to confront your own fixed mindset – the things that make you believe something can't work. It's painful to go through personally, but when you get past it, it's tremendously rewarding."
The transition has been edifying, both in terms of his personal growth – Lee was recently named to the National Academy of Medicine – and Microsoft's growth in the industry, as it establishes itself as a meaningful player in healthcare tech.
Microsoft now sees the business case for letting go of its rivalries with other tech giants
Under Ballmer, Microsoft was notorious for prioritizing its Windows operating system and Office productivity applications businesses over the rest of the company – at one point, it even canceled the Courier tablet, which would have been an early, future-looking competitor to Apple's iPad, because it may have undermined Windows.
Likewise, Microsoft once shunned Linux, a free open-source operating system once considered the biggest threat to Windows. Ballmer once called it a "cancer." But early on in Nadella's time as CEO, Microsoft changed tack and proclaimed, " Microsoft loves Linux ."
It wasn't just Microsoft being friendly. There was a strong business case for blurring boundaries. At the time, Microsoft said it realized its customers used both Windows and Linux, and saw providing support to both as a business opportunity on-premise and in the cloud. That would have been unthinkable in the Ballmer years, but it's proven to be a savvy business move: Microsoft recently hinted that Linux is more popular on its Azure cloud platform than Windows itself.
Microsoft's relationship with Salesforce has followed a similar trajectory. Whereas Ballmer had frequent and public bouts with Salesforce CEO Marc Benioff , Microsoft under Nadella put aside its rivalry with Salesforce – which competes directly with Microsoft's customer-relationship-management Dynamics 365 product – in order to ink a big cloud deal that was good for the company overall.
Nadella even invites leaders from companies across industries to Microsoft's CEO Summit so the executives can learn from each other. Ballmer, meanwhile, famously snatched an employee's iPhone at a company meeting and pretended to stomp on it.
Which is not to say Microsoft always plays nice in the Nadella era. The company last summer changed licensing agreements to raise prices — often significantly — when customers choose to run certain Microsoft software on rival clouds including Amazon Web Services or Google Cloud. And it's been trading public barbs with AWS over the still contested $10 billion Pentagon cloud contract.
The Trump administration awarded the contract to Microsoft over AWS, but Amazon is challenging the decision in court, alleging political interference. The Pentagon in September upheld its decision to award the contract to Microsoft but AWS is expected to file a new complaint as part of the lawsuit next week.
The culture shift at Microsoft is an ongoing process
The beginning of Microsoft's culture shift was rocky.
In "Hit Refresh," Nadella recalls a Microsoft manager who announced in the early days, "Hey, Satya, I know these five people who don't have a growth mindset." Nadella writes, "The guy was just using growth mindset to find a new way to complain about others. That is not what we had in mind."
Even today, Microsoft leaders acknowledge that the culture change isn't over . Things have improved under Nadella, but the company culture is still far from perfect.
Diversity is an opportunity for improvement at Microsoft. Much like the larger technology industry , Microsoft still employs relatively few women and people of color in leadership and technical roles.
One of Nadella's biggest gaffes as CEO happened early on in his tenure, when he suggested women should not ask for raises, but rely on "faith" and "karma." After these comments, Nadella sent out an internal memo admitting to his mistake, explaining how he planned to learn from it, and stating his belief in "equal pay for equal work."
Nadella writes in "Hit Refresh" that in some ways he's glad to have belly-flopped in public. "It helped me confront an unconscious bias I didn't know I had," Nadella writes, "and it helped me find a new sense of empathy for the great women in my life and at my company."
Kevin Oakes, who runs a human-resources research company that helped Microsoft with its shift toward growth mindset, sees Nadella as an exemplar of a leader during a transition. That's largely because Nadella practices the growth mindset he preaches. In a presentation at Talent Connect, an annual conference organized by LinkedIn (which is owned by Microsoft), Oakes said Nadella has been Microsoft's "culture champion." Nadella understands that organizational culture is critical to the company's performance, Oakes said.
But today's Microsoft is still far from perfect. The positive contributions of growth mindset have not yet matched up with diversity and equity for Microsoft's workforce, according to some employees. Microsoft is the subject of a gender discrimination lawsuit still pending , which was denied class-action status by a federal judge. Employees have also openly alleged sexual harassment and discrimination.
The company released its first diversity and inclusion report in 2019 to track its progress in hiring — and retaining — a more diverse workforce. Results from that report showed that minorities in Microsoft's US offices earned $1.006 for every $1 white employees earned. A closer look reveals that white men still held more high-paying leadership positions than women or underrepresented minorities.
Microsoft has since announced plans to double the number of Black leaders and employees within the company, and the number of Black suppliers with which it works.
Meanwhile, Microsoft leadership still has some philosophical differences with employees as it relates to employee activism. Employee groups have protested Microsoft and Microsoft-owned GitHub's relationship with Immigration and Customs Enforcement, and some employees have said Microsoft's relationship with oil and gas companies is at odds with the company's goal to become "carbon negative" by 2030.
Some Microsoft employees say the company is making progress. Rich Neal, a senior director who's been with the company since 2003, recalled a recent meeting in which a male colleague all but repeated the same comment a female colleague had shared 15 minutes earlier.
At that point, Neal recalled, a third meeting participant addressed the male colleague to ask whether perhaps he hadn't understood the female colleague's point. And Neal said it wasn't a passive-aggressive attack. Senior leaders are encouraged to "be curious and ask questions, versus making statements," as a way of modeling growth mindset, he added.
Microsoft has been equally vocal about diversity and inclusion within its customer base, building products that are accessible to as many users as possible. Ben Tamblyn, a 15-year company veteran and Microsoft's director of inclusive design, mentioned Xbox as a prime example. In 2018, Microsoft released the Xbox Adaptive Controller , which makes it easier for gamers who have limited mobility or physical impairments to play. (Interviews with Neal and Tamblyn were arranged by Microsoft's public-relations firm.)
Microsoft is a case study in growth mindset
Microsoft's culture shift, and its accompanying business turnaround, is already a case study in business schools and in reports from management consultancies and research centers . That makes sense to Mary Murphy, a professor of psychological and brain sciences at Indiana University and Dweck's co-author on the paper about growth mindsets within organizations.
Growth mindset is essential for innovation in the technology industry, Murphy said, where change rarely happens incrementally. Instead, there are big inflection points from which there's no return. Microsoft, Murphy added, needs to be on the "cutting edge" of growth mindset in order to stay relevant.
Nadella, for his part, has modeled a growth mindset from the top of the organization, not least in his response to his tone-deaf comments about gender and compensation. "I learned, and we will together use this learning to galvanize the company for positive change," Nadella wrote in the memo he sent apologizing for the comments. "We will make Microsoft an even better place to work and do great things."
Got a tip? Contact reporters Shana Lebowitz via email at [email protected] and Ashley Stewart via email at [email protected] , message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242 .
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Microsoft’s 2023 Diversity and Inclusion Report: A decade of transparency, commitment and progress
Nov 1, 2023 | Lindsay-Rae McIntyre - Chief Diversity Officer and Corporate Vice President of Talent Development
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Today, I am sharing Microsoft’s 2023 Global Diversity & Inclusion Report — our fifth consecutive annual report and the 10th year of releasing our global workforce demographic data. As we mark this milestone, a couple of key aspects about our company’s work on diversity and inclusion (D&I) stand out: Our journey is ever evolving, and our focus and progress are consistent, both of which are vital to delivering on Microsoft’s mission to empower every person and every organization on the planet to achieve more.
This year’s report shows that we continue to be a more diverse Microsoft today than we have ever been. Looking at this year’s data as well as our cumulative efforts, it’s clear that we are driving positive change. The data we share is also a powerful tool for us to understand with precision where we need to concentrate and accelerate our work. This year, amid an evolving macroeconomic environment, our company — like many others — made intentional organizational and workforce adjustments to meet the strategic demands of the business, which impacted our rate of progress in some areas. While there’s more work to be done, I am motivated by our ongoing progress and sustained efforts on increasing representation and strengthening a culture of inclusion, as detailed in this year’s report.
Key highlights
- The representation of women and most racial and ethnic minority groups (Asian, Black and African American, Hispanic and Latinx, and multiracial employees) has increased at all levels over the past five years.
- The representation of women in Executive roles is 29.1%, a 3.2 percentage point increase year over year. This was the highest year-over-year Executive representation growth across women, men, and U.S. racial and ethnic groups in 2023.
- The number of Black and African American Directors, Partners and Executives (including People Managers and Individual Contributors) rose to 107.8% of our 2025 Racial Equity Initiative commitment, up from 92.0% in 2022.
- The number of Hispanic and Latinx Directors, Partners and Executives (including People Managers and Individual Contributors) increased to 74.8% of our 2025 Racial Equity Initiative commitment, up from 57.6% in 2022.
- While hiring volume slowed, hiring representation was greater than or equal to representation for women and all racial and ethnic minority groups except Native American and Alaska Native.
- Inside the U.S., all racial and ethnic minority groups who are rewards-eligible combined earn $1.007 total pay for every $1.000 earned by U.S. rewards-eligible white employees with the same job title and level and considering tenure.
- Inside the U.S., women who are rewards-eligible earn $1.007 total pay for every $1.000 earned by rewards-eligible employees who are men and have the same job title and level, and considering tenure; outside the U.S., women who are rewards-eligible earn $1.003 total pay for every $1.000 earned by rewards-eligible employees who are men and have the same job title and level, and considering tenure.
- As of September 2023, our analysis shows that we have made progress in narrowing the median unadjusted pay gap for women in the U.S., women outside of the U.S., and Asian, Black and African American, and Hispanic and Latinx employees in the U.S.
- As we continue to increase representation for women and racial and ethnic minority groups at more senior levels, and continue to ensure pay equity for all, the gap between the medians will continue to reduce.
Hires data: As one of the most transparent companies of our size when it comes to the diversity and inclusion data we share, we are continually evaluating where we are now and where we aim to be. That is why, in addition to the extensive data we already share, we’re reporting on external hires representation for women and men globally and race and ethnicity in the U.S. for the first time. This data reflects the hires of members of a particular group as a percentage of total employee hires within the respective fiscal year. Hires representation being higher than headcount representation is one of the factors that could increase a group’s representation in the workforce. This past fiscal year, hires representation was greater than headcount representation for women as well as Asian, Black and African American, Hispanic and Latinx, and multiracial employees.
Self-ID data: At Microsoft, Self-ID helps us recognize the different identities, experiences and needs of the entire workforce. Through voluntary Self-ID, employees can help Microsoft make better-informed, more inclusive decisions about meaningful benefits and programs that meet their needs in various stages of life, flex to their interests, and enrich their lives. Self-ID is available globally in 46 markets with some variation, as dictated by local laws, practices and customs. We continue to evolve self-identification options for employees to be as inclusive as possible.
This year, we’re sharing more self-identification (Self-ID) data on Asian sub-identities in the U.S. to further highlight the importance of identity and the impact of self-identification. This comes after expanding the options for Asian employees in the U.S. who want to identify their backgrounds in additional detail last year. The Asian community is the single largest racial and ethnic minority group within our company, with more than 20 sub-identities.
Employee survey data
In addition to our demographic data, we share employee survey data in our D&I report each year, which helps us assess the impact of our D&I efforts so we can better understand how to close the gap between the culture of inclusion we aspire to and the lived experiences of everyone at Microsoft. We have continued to invest in experiences, behavior and organization changes, as well as prioritization of retention and development. This year, meaningful insights include:
- This year, 96.4% of employees reported some level of awareness of the concept of allyship, which is a cornerstone of our growth mindset approach to D&I. This is up from 90.3% in 2022 and 65.0% in 2019, when we first started asking employees about their awareness.
- The average score for the survey question asking employees if they understand what is expected of them to contribute to a more diverse and inclusive environment increased from 82 to 84 globally year over year, and from 80 to 83 in the U.S. Additionally, the average score increased year over year for men, women and every racial and ethnic group.
Inclusion spotlights
While data is important, it does not tell the whole story. Through six Inclusion Spotlights, this year’s report shares more details on some of the people, programs and initiatives that demonstrate how we invest in and innovate for D&I.
- Global strategy, local implementation: We explore how the global Microsoft workforce activated around D&I this past year in ways relevant and meaningful to local employees and communities to drive positive change.
- Inclusion from the start: We shine a spotlight on New Employee Orientation (NEO) as well as the Nuance acquisition and explore ways we introduce a culture of inclusion to new employees or integrate companies we acquire into our inclusive culture.
- Self-expression in our products: We connect how technical and D&I expertise come together to inform new self-expression tools, including profile videos, pronouns and name pronunciation.
- Innovative learning: We delve into some of our learning offerings, informed by a range of communities and experts, that enable employees to deepen their understanding and take intentional action for meaningful progress.
- D&I Core Priority: We share the evolution and impact of the D&I Core Priority, an accountability approach that sets Microsoft apart.
- AI & D&I: We look at how we build trust through our responsible AI strategy and inclusive AI solutions.
As we look ahead, we are unwavering in our focus to attract, develop and retain a workforce that reflects a diversity of backgrounds, skills and experiences. We support employees’ careers through intentional talent management, access and career mobility across all levels of our organization. To further support this, our team and my role have recently evolved to include talent development efforts in addition to global D&I work. This organizational alignment allows us to further embed D&I into all our talent practices in an effort to accelerate representation progress.
We believe our continued work to build diverse workforces and strengthen our culture of inclusion helps foster innovation and serve our business and customer needs. I am confident that our combined momentum and commitment will only fuel additional ways for us to leverage our resources with intention, driving progress toward a more diverse and inclusive Microsoft.
Tags: Diversity and Inclusion Report
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PROS invests significantly in co-selling with Microsoft based on strong internal rate of return
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Fully embracing the Microsoft co-sell system
When asked about his company’s co-sell efforts with Microsoft, Chris Jones gives a ringing endorsement. “PROS has fully embraced the Microsoft co-sell system, including investing in marketing and partner sales executives for our alliance staff so we can better facilitate our co-sell activities,” said Jones, who is the Senior Vice President of Sales of PROS Americas.
PROS, which provides price optimization, sales effectiveness, and revenue management software to both B2B and B2C customers, uses the Microsoft Azure platform for its cloud solutions and engages with Microsoft to support significant co-selling efforts between the two companies.
“PROS has fully embraced the Microsoft co-sell system…Through partnering with Microsoft, we have identified millions of dollars in sales pipeline value and will continue to invest in the Microsoft relationship based on the strong internal rate of return.”
- chris jones, senior vice president of sales, pros americas, accelerating pros’ ability to reach customers.
“Through partnering with Microsoft, we have identified millions of dollars in sales pipeline value and will continue to invest in the Microsoft relationship based on the strong internal rate of return,” said Jones, who also noted that engaging Microsoft co-selling resources has helped shorten PROS’ sales cycles. “Microsoft’s investment in co-marketing and co-selling has accelerated PROS’ ability to reach and inform prospective customers of the benefits of pricing optimization in the cloud.”
Jones also said participation in the Microsoft programs are proving to be well worth the effort. “PROS participates in dozens of Microsoft industry events and customer executive briefings, yielding hundreds of marketing leads each year,” he said. PROS also taps into marketing programs made available to Gold Partners with Microsoft, such as content syndication programs and online campaigns. “These marketing activities yield initial leads, which get winnowed down to qualified opportunities, and then mapped to Microsoft enterprise sales teams,” Jones said.
Increased efficiency, reduced operational costs
One joint engagement that PROS and Microsoft sales teams worked together on was for a multi-billion-dollar food production company who sought to improve their approach to providing customer pricing and quotes. Their existing process was time-intensive and inefficient, and resulted in margin leakage and missed opportunities. They wanted to transform their pricing capability by improving pricing analysis, optimization and administration.
PROS deployed PROS SellingPro Smart CPQ and PricingPro Guidance and Control, which are built on top of Microsoft Azure. This enabled the customer to maximize their margins on every deal, increase their selling and quoting efficiency, reduce their operational costs, and manage the financial risks associated with differing pricing strategies. The customer experienced immediate improvements and is on track to capture $20 million in incremental revenue in 2017.
Expanding into new divisions
By partnering with Microsoft, PROS was also able to expand more easily into other divisions of the customer’s business. Microsoft Azure was positioned as a strategic platform, and the PROS solutions were the first mission critical deployments for the customer on Azure. “Because of our partnership with Microsoft, PROS is able to access customer technical decision makers and better position pricing optimization in context of customers’ broader priorities,” Jones said.
“Because of our partnership with Microsoft, PROS is able to access customer technical decision makers and better position pricing optimization in context of customers’ broader priorities.”
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