Microsoft’s Major Restructuring by Satya Nadella

In March 2014, Satya Nadella became Microsoft’s CEO and decided to restructure the company
completely. The organization was facing serious internal issues due to poor communication, lack
of collaboration and permanent conflict between dysfunctional teams. There were numerous turf
wars between major business units that viewed each other more as competitors than partners.
Products and Platforms worked separately, and this toxic and competitive environment shortly
impacted Microsoft’s innovation and its ability to compete with dominant leaders such as Google
and Apple. Additionally, Microsoft had just paid $7.2 billion to acquire Nokia’s mobile business, a
questionable decision that impacted the company’s financial situation and that added 33,000
more employees that Satya needed to integrate. You have to answer the following questions
based on these instructions:
1. How did leaders and members of the organization effectively communicate during times of
stress or crises?
2. Describe the team dynamics, conflicts that arose and needed to be overcome, and how team
cohesiveness and high performance was ensured?