1. What kind of planning missteps helped cause Microsoft’s decline over the past few years?

2. How is Nadella trying to eliminate some of the bureaucracy that has hurt the company’s ability to innovate?

3. What business strategies has Nadella implemented that will help revitalize the technology giant?

Microsoft had come to be perceived as an out-of-touch behemoth that relied too much on its Windows operating system and failed to move into new markets, like mobile. The company’s new CEO, Satya Nadella, has aggressively looked outside of Windows to develop new business models. Since December, Microsoft has bought two small companies that focus on mobile productivity apps. In Nadella’s first year, Microsoft stock rose 14 percent, and sales increased 12 percent. Also, the new CEO, unlike his predecessor Steve Ballmer, is popular with investors, venture capitalists, and startups. 

The big issue Nadella faces is how to generate more revenue with new software and features, such as cloud subscriptions and free apps that replace pricey Windows and Office licenses. Windows, which once dominated computing and ran on more than 90 percent of computing devices, now runs on 11 percent of computers and gadgets.

Nadella uses the Power BI dashboard to track and compile huge amounts of information on product usage and financial performance to see what works and what doesn’t. Nadella also measures and coordinates executive performance with metrics from the dashboard. Nadella has also changed the way engineering teams are structured, eliminating testers to speed up software releases and adding data scientists and designers to the teams.