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This is a book about transformation—one that is taking place today inside me and inside of our company, driven by a sense of empathy and a desire to empower others. But most important, it’s about the change coming in every life as we witness the most transformative wave of technology yet—one that will include artificial intelligence, mixed reality, and quantum computing. It’s about how people, organizations, and societies can and must transform—hit refresh—in their persistent quest for new energy, new ideas, relevance, and renewal. At the core, it’s about us humans and the unique quality we call empathy, which will become ever more valuable in a world where the torrent of technology will disrupt the status quo like never before. The mystical Austrian poet Rainer Maria Rilke once wrote that “the future enters into us, in order to transform itself in us, long before it happens.” As much as elegant computer code for machines, existential poetry can illuminate and instruct us. Speaking to us from another century, Rilke is saying that what lies ahead is very much within us, determined by the course each of us takes today. That course, those decisions, is what I’ve set out to describe.
In these pages, you will follow three distinct storylines. First, as prologue, I’ll share my own transformation moving from India to my new home in America with stops in the heartland, in Silicon Valley, and at a Microsoft then in its ascendancy. Part two focuses on hitting refresh at Microsoft as the unlikely CEO who succeeded Bill Gates and Steve Ballmer. Microsoft’s transformation under my leadership is not complete, but I am proud of our progress. In the third and final act, I’ll take up the argument that a Fourth Industrial Revolution lies ahead, one in which machine intelligence will rival that of humans. We’ll explore some heady questions. What will the role of humans become? Will inequality resolve or worsen? How can governments help? What is the role of multinational corporations and their leaders? How will we hit refresh as a society?
I was excited to write this book, but also a little reluctant. Who really cares about my journey? With only a few years under my belt as Microsoft’s CEO, it felt premature to write about how we’ve succeeded or failed on my watch. We’ve made a lot of progress since that SLT meeting, but we still have a long way to go. That’s also why I’m not interested in writing a memoir. I’ll save that for my dotage. But several arguments convinced me to carve out a little time at this stage of my life to write. I felt the tug of responsibility to tell our story from my perspective. It’s also a time of enormous social and economic disruption accelerated by technological breakthroughs. The combination of cloud computing, sensors, Big Data, machine learning, and Artificial Intelligence (AI), mixed reality, and robotics foreshadows socioeconomic change ripped from the pages of science fiction. There is a wide and growing spectrum of debate about the implications of this coming wave of intelligent technologies. On the one hand, Pixar’s film WALL-E paints a portrait of eternal relaxation for humans who rely on robots for the hard work. But on the other, scientists like Stephen Hawking warn of doom.
The most compelling argument was to write for my colleagues—Microsoft’s employees—and for our millions of customers and partners. After all, on that cold February day in 2014 when Microsoft’s board of directors announced that I would become CEO, I put the company’s culture at the top of our agenda. I said that we needed to rediscover the soul of Microsoft, our reason for being. I have come to understand that my primary job is to curate our culture so that one hundred thousand inspired minds—Microsoft’s employees—can better shape our future. Books are so often written by leaders looking back on their tenures, not while they’re in the fog of war. What if we could share the journey together, the meditations of a sitting CEO in the midst of a massive transformation? Microsoft’s roots, its original raison d’être, was to democratize computing, to make it accessible to everyone. “A computer on every desk and in every home” was our original mission. It defined our culture. But much has changed. Most every desk and home now have a computer, and most people have a smartphone. We had succeeded in many ways, but we also were lagging in too many other ways. PC sales had slowed and we were significantly behind in mobile. We were behind in search and we needed to grow again in gaming. We needed to build deeper empathy for our customers and their unarticulated and unmet needs. It was time to hit refresh.
After twenty-two years as an engineer and a leader at Microsoft, I had been more philosophical than anxious about the search process for a new CEO. Even with speculation swirling about who would succeed Steve, quite frankly, my wife, Anu, and I largely ignored the rumors. At home, we were just too busy with taking care of Zain and our two daughters. At work I was very focused on continuing to grow a highly competitive business, the Microsoft Cloud. My attitude was that the board would select the best person. It would be great if it were me. But I would also be equally happy working for someone the board had confidence in. In fact, as part of the interview process one of the board members suggested that if I wanted to be CEO, I needed to be clear that I was hungry for the job. I thought about this and even talked to Steve. He laughed and simply said, “It’s too late to be different.” It just wouldn’t be me to display that kind of personal ambition.
When John Thompson, who at that time was the lead independent director and headed the CEO search, sent me an email on January 24, 2014, asking for time to chat, I was not sure what to make of it. I thought he probably was going to give me an update on where the board was in its decision process. And so, when John called that evening, he first asked me if I was sitting down. I was not. In fact, I was calmly playing with a Kookaburra cricket ball as I usually do when talking on the speakerphone at work. He went on to deliver the news that I was to become the new CEO of Microsoft. It took a couple of minutes to digest his message. I said that I was honored, humbled, and excited. They were unplanned words, but they perfectly captured how I felt. Weeks later, I told media outlets that we needed to focus more clearly, move faster, and continue to transform our culture and business. But behind the scenes, I knew that to lead effectively I needed to get some things square in my own mind—and, ultimately, in the minds of everyone who works at Microsoft. Why does Microsoft exist? And why do I exist in this new role? These are questions everyone in every organization should ask themselves. I worried that failing to ask these questions, and truly answer them, risked perpetuating earlier mistakes and, worse, not being honest. Every person, organization, and even society reaches a point at which they owe it to themselves to hit refresh—to reenergize, renew, reframe, and rethink their purpose. If only it were as easy as punching that little refresh button on your browser. Sure, in this age of continuous updates and always-on technologies, hitting refresh may sound quaint, but still when it’s done right, when people and cultures re-create and refresh, a renaissance can be the result. Sports franchises do it. Apple did it. Detroit is doing it. One day ascending companies like Facebook will stop growing, and they will have to do it too.
And so let me start at the beginning—my own story. I mean, what kind of CEO asks such existential questions as why do we exist in the first place? Why are concepts like culture, ideas, and empathy so important to me? Well, my father was a civil servant with Marxist leanings and my mother was a Sanskrit scholar. While there is much I learned from my father, including intellectual curiosity and a love of history, I was always my mother’s son. She cared deeply about my being happy, confident, and living in the moment without regrets. She worked hard both at home and in the college classroom where she taught the ancient language, literature, and philosophy of India. And she created a home full of joy.
Even so, my earliest memories are of my mom struggling to continue her profession and to make the marriage work. She was the constant, steadying force in my life, and my father was larger than life. He nearly immigrated to the United States, a faraway place that represented opportunity, on a Fulbright fellowship to pursue a PhD in economics. But those plans were suddenly and understandably shelved when he was selected to join the Indian Administrative Service (IAS). It was early 1960s, and Jawaharlal Nehru was India’s first prime minister following Gandhi’s historic movement, which had achieved independence from Great Britain. For that generation entering the civil service and being part of the birth of a new nation was a true dream come true. The IAS was essentially a remnant of the old Raj system left by the British to govern after the UK turned over control of the country in 1947. Only about a hundred young professionals per year were selected for the IAS, and so at a very young age my father was administering