Part I — The story
The story
Satya Nadella took over as Microsoft's CEO in 2014, when the company was seen as a fading giant that had missed mobile and search, and engineered one of the great corporate turnarounds by changing its culture and its bets. He shifted Microsoft from defending Windows at all costs to embracing the cloud, subscriptions and even rival platforms.
Nadella reframed the culture around a 'growth mindset' — becoming, in his phrase, a learn-it-all rather than a know-it-all company — and made Azure cloud computing and Office 365 subscriptions the engines of growth. He also positioned Microsoft at the centre of the AI wave through a deep partnership with OpenAI, restoring it to the ranks of the most valuable companies on earth.
Nadella's turnaround is a case study in how culture and strategy intertwine: changing what the company believed about itself unlocked the bets — cloud, subscriptions, openness — that revived it.
Part II — The playbook
The playbook
Change the culture to change the strategy
Nadella's 'learn-it-all' mindset unlocked the bets Microsoft had resisted.
Embrace recurring revenue and the cloud
He moved Microsoft to subscriptions and cloud services that compound.
Cooperate where you once only competed
He put Microsoft software on rival platforms, expanding reach.
In their words
Our industry does not respect tradition — it only respects innovation.
Be a learn-it-all, not a know-it-all.
Empathy is a key source of business innovation.
What to read next
- Hit Refresh — Satya Nadella
Why this matters
The thinking behind these decisions connects to models you can study directly:
Frequently asked questions
How did Nadella turn Microsoft around?
By changing its culture to a 'growth mindset', embracing the cloud (Azure) and subscriptions, cooperating with former rivals, and betting early on AI — multiplying the company's value.
Is Satya Nadella still Microsoft's CEO?
Yes — as of early 2026 he is chairman and CEO, having led the company since 2014.