BUSINESS THE BILL GATES WAY
At 43 Bill Gates is the richest man in the world . He has headed Microsoft since he was
20. But Gates wealth is only part of his fascination. His meteoric rise to fame and
fortune confirms the creation of a new business world order. What sets Bills Gates
apart from any other business leader in history is probably the influence that he wields
over our lives. Whereas the power of earlier tycoons was usually concentrated in
one sector or industry, through the power of software, Microsoft extends its tentacles
into every sphere of our lives. This book not only reveals the secrets of Gates'
remarkable success but also draws out the universal lessons and identifies strategies
that can be applied to any business or career.
Bill's Big Idea : “A Computer on Every Desk And In Every Home”
Since the early days of Microsoft, Gates has pursued his vision of "a computer on
every desk and in every home." In the early 1980s, Gates masterminded Microsoft's
movement from a developer of programming languages to a diversified software
company producing everything from operating systems such as Windows to
applications like Word and Excel. In the process he transformed the computer industry.
Business Philosophy :
Under the leadership of Bill Gates a Harvard drop out, the company has passed
the market valuation of G.E to become America's biggest Company. Microsoft
attributes its success to five factors :-
◾ long term approach - a passion for its products and customers
◾ results orientation - teamwork and individual drive
◾ continuous customer feed back
SECRETS OF SUCCESS
The ten secrets of doing business the Bill Gates way are :-1. Be in the right place at the right time
In 1980 IBM, the market leader in the computer industry signed a contract with Bill
Gates to develop the operating system for its first PC. Gates recognized the significance
of the IBM deal. He knew that it would change the history of personal computing and
worked tirelessly for more than six months to maximize his chance of being lucky.
2. Fall in love with technology
One of the most important aspect of Microsoft's continued success has been Gates'
technological knowledge. He retains control over key decisions in this area. On may
occasions he has seen the future direction of technology more clearly than his rivals.
He has also been prepared to lead the way. Coming from the technical side, Bill
Gates understand the importance of investing in research. He invests an extraordinarily
high percentage of Microsoft's reserves into research and development. In its
software laboratories Microsoft is developing products for five years down the road
and always looking out for the next big thing. Although Microsoft is not a great inventor
and innovator it is extremely good at taking good ideas, developing them and making
them into commercially successful products. In fact, Gates himself is not an original
thinker and does not rate people who are obsessed with finding original solutions to
problems.
3. Take no prisoners
Gates is a fierce competitor. In every thing he does, he is driven to win. This makes
him an extremely tough negotiator and he is a master at crushing competitors. Bill
Gates does not allow grudges to affect his commercial decisions. On many
occasions he has turned around and done business with his rivals when it suits him.
Along with his analytical and detached approach to business, Gates is also a shrewd
judge of risk. In the computer industry the speed of change is so rapid that not acting
often carries the greatest risk of all.
4. Hire very smart People
From the start, Gates has always insisted that the company required the very
best minds. Bill Gates is the ultimate intellectual capitalist. From the very start he
knew that Microsoft's key asset would be the caliber of its people. He has consistently
recruited and retained the smartest programmers often attracting them straight from
college with little or no industry experience and won't compromise regarding the quality
of Microsoft staff especially in the product development teams. Microsoft always
pays employees salaries that are lower than its rivals, but through stock options Bill
Gates has made many people millionaires. Not surprisingly many of the original
employees still continue to work there.
5. Learn to Survive
In Microsoft, Bill Gates has created a voracious learning machine. He believes it is
the sign of a 'smart organisation', one that is continually improving its internal
processes. It is also the best way to avoid becoming complacent and the best
protection against making mistakes. By capitalizing on the errors of others who are
not so careful, Gates has prospered. Despite the apparently free and easy
environment, Microsoft has strict rules controlling the way software is developed. Whenever possible programming is standardized, developed and documented so that
development teams benefit from the work of their peers and can move easily between
projects. At Microsoft, Gates has instituted a system where those elsewhere in the
organisation provide constant feedback to their colleagues. Products are tested on
real customers who are prepared to provide some feedback for further development
of the new software. Microsoft has always been good at knowledge management. The
idea is that competitive advantage can be gained from know how that can be
captured, cataloged and made available to everyone.
6. Don't expect any thanks
One lesson that Bill Gates has learned the hard way is that fame and infanmy are never
far apart and you can't become the richest man in the world without making some
enemies. The lessons learnt are - don't let jealously and envy of others trouble you.
Media attention can also be used to market your products.
7. Assume the Visionary Position
Bill Gates is a new type of business leader. His in depth understanding of
technology and unique way of synthesizing data gives him a special ability to spot
future trends and steer Microsoft's strategy. In recent years he has taken this one
step further by writing a book about the future of technology - The Road Ahead. His
great talent as a leader lies in his ability to inspire the people around him with the
challenge of helping him to transform the computer industry. He is able to
understand what is just round the corner.
8. Cover All the Bases
A key element of Microsoft's success is its ability to manage a large number of projects
simultaneously. Gates himself is the original multi tasking man, and is said to be
able to hold several different technical conversations simultaneously. This ability to
cope with a multitude of ideas at the same time is reflected in the company's
approach. Microsoft is constantly exploring new markets and new software
applications. This blanket coverage of the market helps protect the company from
missing the significant developments in the industry. What Gates realized from the start
was that getting to market with a good or OK product first is often better than getting
there second with a great product.
9. Build A Byte Sized Business:
Microsoft remains a relatively small company compared to its stock market
valuation. Internally too, the company is constantly splitting into smaller units to
maintain the optimal enterprneurial team environment. Gates also relies on
maintaining a simple structure to enable him to keep his grip on the company. He has
also gone on record to say that size works against excellence. "Even if we are a big
company we cannot think like a big company or we are dead." Another feature is
that there are virtually no status symbols at Microsoft. Respect has to be earned.
10. Never, ever take your eyes off the ball:
Gates has been at the top of his profession for more than two decades now. Yet
despite his enormous wealth and achievements, Gates says he is driven by a "latent
fear" that he might miss the next big thing.
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