Satya Nadella: Yeah, in fact when people talk about the labor market as the great resignation. In reality if you look at the data it’s not the great resignation, it’s the great reshuffle. Because people are not actually leaving the workforce. They are changing jobs because they want either a different profession, a different industry, a different company. It is finding meaning in your work, and whether what you want and what the company is doing are resonating. I think that is becoming more and more important. An empowered employee, an empowered labor movement is a much needed thing for companies to get to the place where they are going to thrive. Because if otherwise, work is a transactional, I think the company suffers.
Klaus Schwab: But Satya in reality in the daily life of Microsoft how do you implement it, what would you say are the key facets of this integration?
Satya Nadella: To me that’s why I look at even my job and every leader and every employee is a lived culture. Ultimately what is a company? A company is what happens to me every day when I walk into the company. Am I able to bring my best and do my best and get deep satisfaction and meaning? And if that is not achievable it is very, very hard to talk about a lot of concepts in the abstract. That is why I bring it down to lived experiences. Lived experiences are not always going to be perfect, no company is going to be perfect all the time. In our case, one of the greatest blessings we have is, we took Carol Dweck’s work on child psychology around growth mindset. We took that and adapted that as our cultural meme in terms of confronting our fixed mindset each day. And that is being super helpful Klaus. I mean I am not perfect, but can I go learn and help to get better and that attitude and approach to culture I think is the only way to help everyone to implement a lived culture that really thrives and strives to get better.
Klaus Schwab: To change the subject and take something up that’s very much in the mind of participants here. It is the value chain and how do you home shore or reshore to create much more resilience in your system. There is a term I have coined, trust shoring, which means you not only look at your company partner to have trust, but also the government which is behind. Does this have an influence on your corporate policies?
Satya Nadella: Yeah, for sure, I think what the world sort of realized is, a super optimized value chain may not be the most resilient value chain in times of crisis. So therefore, thinking about the tail event impact or your resilience is not just a tabletop exercise but every board, every company, every country is going through. But take Ukraine for example, it’s very interesting. If Ukraine in the name of sovereignty did not have the ability to migrate all their critical systems to a public Cloud running in Europe, it wouldn’t be resilient. I think the definition of what resilience looks like, what continuity looks like also has multiple dimensions.
But there is a certain amount of near shoring a certain amount of reconfiguring, a certain amount of multiple sourcing. This I think, is all going to become very, very key. Because that means we have to test for all kinds of tail events. The next tail event could not be the type of thing we had. It could be something else. But the point is resilience, and I think this definitely is an exercise that every business and country is going through. But I do believe that connectivity is still important in some sense connectivity is needed for resilience. But what type of configurations are there in the connective tissue. That’s what I think is the real question.
Klaus Schwab: So, it’s the inter-operation ability? Satya Nadella: Yeah, I think it’s the network paths. See the thing is whenever you have got a graph that has only got a single path it’s problematic. But if you have multiple paths you can traverse the graph much easier. That’s why it’s a supply web and not a supply chain.
Klaus Schwab: One last question. You are now the highest valued company. Where do you see the limit? You have had such tremendous success in the last years. Where do you see a limit? If there is a limit.
Satya Nadella: At the end of the day, our growth is subject to the following limit. Which is, the world around us. I always say this, Microsoft will only do well when the world around us is doing much better. So, there is no way for Microsoft to be successful given our business model if the input we produce, which is digital technology is not creating tons of value-added output that is leading to economic growth in the world. So, if there’s one thing, we all have to still strive for, is inflation adjusted economic growth in the world that is aligned with the planet that is more equitable. And that to me is going to be the most important thing that we will have to achieve in the world to earn our right to continue as a business.
Klaus Schwab: On behalf of the participants I wish you a good path in the future.
Satya Nadella: Thank you.