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How Microsoft reached 1 Trillion club with efficient management.

With fallen tech giants from AOL to #Yahoo to #blackberry the tech industry is littered with their leftovers. A decade ago most of us might have expected for the Microsoft to end up in a similar situation but the software titan has been making startling comebacks vying as one of the most valuable global companies with Market Capitalization of $1Trn.


The new case study by Hermania Ibarra and Adam Jones of London Business School narrates the reasons for this growing enterprise.


In major, a large part of the success has resulted from a deep drift from the focus on Window based operating system towards #Azure and #Microsoft’s cloud-based service offering Company had previously avoided the running of Microsoft programs on Apple and Android smartphones. But this enabled the usage of these programs on the latter.


Cloud-Based revenue generation was a complete turn-around and a required change.

The shift was mammoth. Around 40,000 people changed the way they did their jobs. Three important elements were – First, Understanding of the cloud based services and how the consumers were using it. This required 5,000 specialist hires.


Second was to permit existing sales staff to focus on creating new customers and also retaining the previous ones.

Lastly, salesperson required an added incentive to put in the work needed for the new projects which firmly less lucrative for them than the traditional fixed-term contracts. This involved the use of performance based incentives.


New tools enabling workers analyze the time spend in meeting and writing emails. And among others every step and movement to be recorded.


Managers had to adapt to change as well. The program ‘Reimagine Managers’ aimed to foster an approach of mentoring and coaching of the staff.


Changed approach in the corporate culture and the shift from “Fixed mindset” to a “growth mindset”, was among the prime reasons for microsoft’s rise.


In the coming decades Microsoft’s fortune may depend on whether acquisitions like #LinkedIn, the career site, or #GitHub, a software developing startup would prove wiser than its failed bet on #Nokia’s mobile-phone business earlier in the decade. But they have shown that even in the big organizations the cultural changes are possible

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