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Superior University
Leadershi
p
Bill GatesA Supreme Leader of Technology
World
By Xeniums
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SYED AWAIS ALI 7115
M. ASGHAR 7113
TAHIR SUBHANI 7146
KHURRAM LATIF 8125
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Table of contents
Acknowledgement 5
Introduction 6
Project 7
The great leaders 8
Bill gates 11
Early life of Gates 13
Private Life of Gates 15
Microsoft 16
Entrepreneur 18
Bill Gates a Successful Entrepreneur 19
Achievements as an Entrepreneur 19
Traits & Characteristics 21
Leadership Traits of Gates 22
Leadership Characteristics of Gates 22
Gates Secrets of Success 24
Leadership Styles 28
Autocratic Style 29
Delegate Style 29
Sources and Powers of Gates 31
Position Power 32
Personal Power 32
Influence Tactics 33
Golden Words 34
References 35
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Acknowledgment
I’d like to think this is a fair analysis of why Bill Gates has been so
successful over so many years. In the end, though, whether you see
him as
the Antichrist or the Messiah of the IT revolution it is impossible to
escape
the conclusion that he is a remarkable individual. For two decades
he has
dominated the computer industry. He shows no sign of relenting.
But more
than just a computer whiz-kid, Gates also provides a model for
business
leadership in the 21st century. For this, he deserves
acknowledgment.
Others also merit a special mention
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Introduction to Project
This is our final project for the course of Leadership by Prof. Amjad
on the topic of Study a Charismatic Leader. We the team
XENIUMS selected Bill Gates as a leader to make a comprehensive
study on him. We are directed to make our study in context of the
lessons we have throughout our course and analyze him in our own
words.
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The Great Leaders in Business World
The management gurus tell us that in the contemporary business world learning is a
source of competitive advantage. Managers must constantly learn new skills and techniques so
that they are armed for corporate battle. Organizations must re-invent themselves as learning
organizations in which learning is central to their being and culture. All this is no doubt true—in
theory. But, in reality, there are few genuine learning organizations. The reality is that executives
are not very good at learning.
“Success in the marketplace increasingly depends on learning, yet most people don’t know how
to learn. What’s more, those members of the organization that many assume to be the best at
learning are, in fact, not very good at it,” says Harvard Business School’s Chris Argyris.
1. One of the aims of this series is to help executives learn; to give them the opportunity to
learn from the best. This may sound an overly ambitious objective. But think how
managers learn. First, they do so through experience. Yet, as Chris Argyris has pointed
out, experience is no guarantee of learning. Howmany executives Business schools
remain wedded to theory; business is about action. have you met who have all the
experience in the world but little insight or real wisdom? They may proclaim that they
have 30 years’ experience, but they often have one year’s experience 30 times.
Experience does not automatically lead to learning. Years clocked up do not necessarily
equate with wisdom.The second source of learning for executives is training programs.
Most senior managers will have been on one business school executive program or
another. With their case studies and emphasis on the analytical, business schools
undoubtedly enable managers to acquire important skills. But the range of skills and their
practical usefulness is regularly questioned—not least by those who teach at businessschools. “The idea that you can take smart but inexperienced 25 year-olds who have
never managed anything or anybody and turn them into effective managers via two years
of classroom training is ludicrous,” says strategy guru, Henry Mintzberg.
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2. The venerable Peter Drucker is another long-term critic of business schools. “The
business schools in the US, set up less than a century ago, have been preparing well-
trained clerks,” he wrote as long ago as 1969.
3. More recently, he has predicted the decline of business schools noting that “Business
schools are suffering from premature success. Now, they are improving yesterday a little
bit. The worst thing is to improve what shouldn’t be done at all.”Business schools remain
wedded to theory; business is about action. It is a sentiment echoed by practitioners. “I
am not impressed by diplomas. They don’t do the work. My marks were not as good as
those of others, and I didn’t take the final examination. The principal called me in and
said I have to leave. I told him that I didn’t want a diploma. They had less value than a
cinema ticket. A ticket at least guaranteed that you would get in. A diploma guaranteed
nothing,” said Soichiro Honda, founder of Honda.
4. With surprising understatement, former Chrysler CEO, Lee Iacocca noted: “Formal
learning can teach you a great deal, but many of the essential skills in life are the ones
you have to develop on your own.” More opinionated was the late Avis chief and author
of Up the Organization, Robert Townsend. “Don’t hire Harvard Business School
graduates,” he warned. “This elite, in my opinion, is missing some pretty fundamental
requirements for success: humility; respect for people in the firing line; deep
understanding of the nature of the business and the kind of people who can enjoy
themselves making it prosper; respect from way down the line; a demonstrated record of
guts, industry, loyalty down, judgment, fairness, and honesty under pressure.”
5. More recently, Bill Gates, Virgin’s Richard Branson and Body Shop’s Anita Roddick
have all been much quoted examples of those who missed out on business school but
went on to reach the summits of business success. “A great advantage I had when I
started the Body Shop was that I had never been to business school,” says Anita Roddick.
Similarly, 1–800-Flowers founder, Jim McCann, says that the company would have not
got off the ground if he’d been to business school—“I would have thought too much
about why the deal couldn’t be done,” says McCann.The third source of learning is
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through learning from peers and colleagues. This is very powerful. The current trend for
mentoring and coaching is evidence that senior managers can play an important role in
developing the skills of other, more junior, managers. But, what if your boss is an
ineffective timeserver with no interest in developing tomorrow’s talent? What if your
boss is incompetent? What if your aspirations far outstrip the level of expertise of your
boss? Who do you learn from then? For many, the answer lies in the growing array of
bestselling books by corporate leaders. Executives buy them in their millions. They want
to know what makes a top CEO tick. They want it mapped out. Invariably they are
disappointed. Most CEO authored books are marred by ego and hindsight. They are
ghostwritten and their merit is as illusory as a ghost. Most are rose-tinted celebrations of
careers rather than objective examinations of managerial techniques. The learning they
offer is limited—though that is not to deny the entertainment value. The Big Shots series
aims to fill the gap. It seeks to give an objective view of the business practice and
thinking of some of the corporate greats. For each of the business leaders in the series—
whether it be Bill Gates, Rupert Murdoch, Richard Branson or Jack Welch—we look at
the essence of their approach to business. What makes them different? What are they
good at? And, most importantly, what lessons can be learned from their business success?
As you will see, the lessons aren’t rocket science. Indeed, management is more pocket
science. “Guru? You find a gem here or there. But most of it’s fairly obvious, you know,”
says Rupert Murdoch. “You go to Doubleday’s business section and you see all those
wonderful titles and you spend $300 and then you throw them all away.” Theory is for
those with time on their hands. Making it happen is what management and business is all
about.
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Bill Gates
At 43, Bill Gates is the richest man in the world. He has headed Microsoft since he was
20. Believed to be worth something in the region of $60 billion (although Gates himself insists
that much of his money is tied up in Microsoft shares), his is wealth of a magnitude that is
beyond the comprehension of most people. For this he attracts both our envy and our curiosity.
Gates is a 20th century phenomenon: the greatest of the cyber-tycoons. It has become a popular pastime in bars and restaurants to astound friends and acquaintances with calculations of his
spending power. It is tempting to believe that there has never been another business leader so
loaded. In fact, there have been other mega-rich businessmen, John D. Rockefeller and Andrew
Carnegie to name just two. 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: one
that is dominated by a different class of entrepreneur and business leader. We may like to
labelTHE LIFE AND TIMES OF BILL GATES 2 them nerds, but they know things that most of us don’t. They understand the potential of the new technology in a way that the traditional
generalist manager and bean counting accountant can’t hope to. They are smart; very, very smart
about stuff we don’t really understand, and it makes the rest of us uncomfortable.
When it comes to the future, they “get it,” and we don’t. Technically literate and intellectually
elitist, Gates is a sign of the leaders to come. Although Microsoft is based outside at Redmond,
Washington, he is probably the greatest of what we can term the Silicon Valley entrepreneurs.
To some in Microsoft, he is a mystical, almost religious figure, while to others in the industry he
is the Antichrist. Both views are outrageous, but underline just how powerful his influence is.
(With all the hullabaloo about alleged abuse of monopoly power, it is easy to forget that back in
the 1970s, IBM, too, was the target of anti-trust investigations. Yet, memory fades. Today, we
have come to regard Big Blue as almost saintly compared to Microsoft. Such is the nature of
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power—we fear most what we understand least.) But you won’t find many clues to the Gates
management technique or leadership style in business schools. In fact, the management
professors and gurus are strangely silent on what makes the Microsoft chairman and CEO so
successful. Perhaps they feel slighted. Gates, after all, dropped out of Harvard where he was
majoring in law. The academics prefer more conventional business leaders—the traditional
company men.
Where, then, should we turn for an insight into what makes this remarkable man tick? Where
better than Microsoft’s own encyclopedia Encarta? “Much of Gates’ success rests on his ability
to translate technical visions into market strategy, and to blend creativity with technical
acumen,” it says under the entry for Gates, William, Henry, III.
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Private Life
Gates married Melinda French from Dallas, TX on January 1, 1994. They have three
children: daughters Jennifer Katharine Gates (born 1996) and Phoebe Adele Gates (born 2002),
and son Rory John Gates (born 1999). The Gates' home is an earth-sheltered house in the side of
a hill overlooking Lake Washington in Medina. According to King County public records, as of
2006 the total assessed value of the property (land and house) is $125 million, and the annual
property tax is $991,000.
His 66,000 sq ft (6,100 m2) estate has a 60-foot (18 m) swimming pool with an
underwater music system, as well as a 2,500 sq ft (230 m2) gym and a 1,000 sq ft (93 m2) dining
room.
Also among Gates's private acquisitions is the Codex Leicester , a collection of writings
byLeonardo da Vinci, which Gates bought for $30.8 million at an auction in 1994. Gates is also
known as an avid reader, and the ceiling of his large home library is engraved with a quotation
from The Great Gatsby. He also enjoys playing bridge, tennis, and golf.
Gates was number one on the "Forbes 400" list from 1993 through to 2007 and number
one on Forbes list of "The World's Richest People" from 1995 to 2007 and 2009. In 1999,
Gates's wealth briefly surpassed $101 billion, causing the media to call him a
"centibillionaire".Since 2000, the nominal value of his Microsoft holdings has declined due to a
fall in Microsoft's stock price after the dot-com bubble burst and the multi-billion dollar
donations he has made to his charitable foundations. In a May 2006 interview, Gates commented
that he wished that he were not the richest man in the world because he disliked the attention it
brought. Gates has several investments outside Microsoft, which in 2006 paid him a salary of
$616,667, and $350,000 bonus totalling $966,667. He founded Corbis, a digital imaging
company, in 1989. In 2004 he became a director of Berkshire Hathaway, the investment
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company headed by long-time friend Warren Buffett. In March 2010 Bill Gates was bumped
down to the 2nd wealthiest man behind Carlos Slim.
Microsoft
After reading the January 1975 issue of Popular Electronics that demonstrated the Altair
8800, Gates contacted Micro Instrumentation and Telemetry Systems (MITS), the creators of the
new microcomputer, to inform them that he and others were working on a BASIC interpreter for
the platform. In reality, Gates and Allen did not have an Altair and had not written code for it;
they merely wanted to gauge MITS's interest. MITS president Ed Roberts agreed to meet them
for a demo, and over the course of a few weeks they developed an Altair emulator that ran on a
minicomputer, and then the BASIC interpreter. The demonstration, held at MITS's offices in
Albuquerque, was a success and resulted in a deal with MITS to distribute the interpreter
as Altair BASIC. Paul Allen was hired into MITS, and Gates took a leave of absence from
Harvard to work with Allen at MITS in Albuquerque in November 1975. They named their
partnership "Micro-Soft" and had their first office located in Albuquerque. Within a year, thehyphen was dropped, and on November 26, 1976, the trade name "Microsoft" was registered
with the Office of the Secretary of the State of New Mexico. Gates never returned to Harvard to
complete his studies.
Microsoft's BASIC was popular with computer hobbyists, but Gates discovered that a
pre-market copy had leaked into the community and was being widely copied and distributed. In
February 1976, Gates wrote an Open Letter to Hobbyists in the MITS newsletter saying that
MITS could not continue to produce, distribute, and maintain high-quality software without
payment. This letter was unpopular with many computer hobbyists, but Gates persisted in his
belief that software developers should be able to demand payment. Microsoft became
independent of MITS in late 1976, and it continued to develop programming language software
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for various systems. The company moved from Albuquerque to its new home in Bellevue,
Washington on January 1, 1979.
During Microsoft's early years, all employees had broad responsibility for the company's
business. Gates oversaw the business details, but continued to write code as well. In the first fiveyears, he personally reviewed every line of code the company shipped, and often rewrote parts of
it as he saw fit.
In 1980, IBM approached Microsoft to write the BASIC interpreter for its upcoming
personal computer, the IBM PC. When IBM's representatives mentioned that they needed an
operating system, Gates referred them to Digital Research (DRI), makers of the widely used
CP/M operating system. IBM's discussions with Digital Research went poorly, and they did not
reach a licensing agreement. IBM representative Jack Sams mentioned the licensing difficulties
during a subsequent meeting with Gates and told him to get an acceptable operating system. A
few weeks later Gates proposed using 86-DOS (QDOS), an operating system similar to CP/M
that Tim Paterson of Seattle Computer Products (SCP) had made for hardware similar to the PC.
Microsoft made a deal with SCP to become the exclusive licensing agent, and later the full
owner, of 86-DOS. After adapting the operating system for the PC, Microsoft delivered it to IBM
as PC-DOSin exchange for a one-time fee of $50,000. Gates did not offer to transfer
the copyright on the operating system, because he believed that other hardware vendors would
clone IBM's system. They did, and the sales of MS-DOS made Microsoft a major player in the
industry.
Gates oversaw Microsoft's company restructuring on June 25, 1981, which re-
incorporated the company in Washington state and made Gates President of Microsoft and the
Chairman of the Board.
Microsoft launched its first retail version of Microsoft Windows on November 20, 1985,
and in August, the company struck a deal with IBM to develop a separate operating system
called OS/2. Although the two companies successfully developed the first version of the new
system, mounting creative differences undermined the partnership. Gates distributed an internal
memo on May 16, 1991, announcing that the OS/2 partnership was over and Microsoft would
shift its efforts to the Windows NT kernel development.
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Bill Gates - A Successful Entrepreneur
Gates is one of the most successful entrepreneurs of the world. He is able to run a
successful and a profitable entrepreneurship for many years and even today, we cannot survive in
this competitive world without it.
Vision and dedication are the key factors of being a successful entrepreneur and theseskills were present in Bill Gates from the beginning. He has got the skills to identify the most
suitable employee for recruitment.
The success of Microsoft is the true example of the entrepreneurial skills of Bill Gates.
The success story of Bill Gates is highly motivating for all the upcoming entrepreneurs.
His hard work, dedication and self-confidence helped him to earn everything he has. He
is a simple man and slightly conservative in regards of money although he is one of the richest
people of the world.
The youth can take inspirations from the life of Bill Gates.
So it can be concluded that Bill Gates is one of the ideal personalities of the world who
has honestly contributed towards the world's success.
Achievements as a successful entrepreneur
The list of achievements of Bill Gates is so long that a book can be written about it. Some
of his achievements are mentioned below:
1. In 2005, Bill Gates knighted by Queen Elizabeth II for his contribution to the Britisheconomy. His title will be 'Knight Commander of the Order of the British Empire.’
2. Time Magazine included his name in '100 most influential people of 20th century'. His name
was continuously there from 2004 till 2006.
3. He has received doctorates from various universities and institutes like Harvard University and
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The Royal Institute of Technology.
4. Bill Gates and his wife have done many generous works for the welfare of the society. For
this, they have received the award of 'Order of the Aztec Eagle' in Mexico.
5. Sunday Times included his name in its Power List in 1999.
6. Forbes Magazine listed his name in 'The World's Richest People' from the year 1995 to 2007.
7. Berkshire Hathaway, an investment company, approached him to be the Director of the
company.
In 2000 Gates resigns as CEO of Microsoft to spend more on software architecture and less with
running the company.
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Traits
• Great at generating many ideas – innovative, game changing and even
commonplace.
• Always looking to experiment with good ideas. Sometimes, trying out a few times.
• Unwavering belief in their creativity and innovation, coupled with originality in
thinking.
• Smart and bright with a positive self-image. More often, they are not born
geniuses.
• Passionate, expressive and sensitive to their teams, colleagues and surroundings.
• Demonstrate superior judgment, and do not make quick decisions (although have a
gut feel).
• Non-conformists and independent, requiring less social approval than most people.
• Innate ability to understand and solve the problem, and manage the consequences.
• Born dreamers with strong imagination; however, manage to keep things in
perspective.
• Create and launch game changing products meeting a high level of quality and
design.
Characteristics Of Bill Gates
Intelligent
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He believes that if you are intelligent and know how to apply your intelligence, you can
achieve anything. From childhood Bill was ambitious, intelligent and competitive. These
qualities helped him to attain top position in the profession he chose.
Visionary
Microsoft's vision is "A computer on every desk and Microsoft software on every
computer he will continue to stomp out the competition until he dies. Every business and
household must have a computer and must run Microsoft software”, was the basic guiding vision
of Bill Gates.
Passion
When as a student at the Harvard University, every single student would have wanted to
be part of the great institute and graduate to be successful, Bill Gates decided to stop studying
and pursue his dream of writing software’s for every computer in the world
He was just passionate about software, coding and technology that incidentally also made him
the richest man in the world
Innovation
Gates and Allen were assisted by a staff of six, which included four programmers. In late
1977, Gates released a version of FORTRAN language for microcomputers. In 1978, Gates and
Allen introduced a version of COBOL. Around this time, Microsoft emerged as the market
leader in microcomputer languages with sales exceeding $1 million. In 1979, Microsoft
developed a new version of BASIC... He had an early interest in software and began
programming computers at the age of thirteen.
Risk Bearer
In his junior year, Gates dropped out of Harvard to devote his energies full-time to
Microsoft, a company he had started in 1975 with his boyhood friend Paul Allen development of
new products.
Continous Learner
“Microsoft is not about greed. It’s about Innovation and Fairness.” – Bill Gates”
Never stop learning was the Mantra of Bill Gates which he follow till date. This empowers him
to be a Great Leader of our times. He will always be remembers as an Icon and even without his
presence in Microsoft he would still be regarded as a great inventor and a real genius in every
regard of Business, Technology and Entrepreneurship.
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Accepting The Criticisms
Its fine to celebrate success but it is more important to heed the lessons of failure.
There will be people who would want to make fun of your efforts, pull you down and so on. The
stronger you stand the bolder you get the faster these negatives wither.
When IBM pulled out of the contract for the operating system to be bundled with the IBM Clone
PCs, Bill Gates stayed on and started focusing on the creating Windows amidst lots of hiccups
that will hamper the company.
Other Key Lessons-Bill Gates
“If you show people the problems and you show them the solutions they will be moved to
act.” – Bill Gates
This is one never mentioned secret of success. Action is the key word. When logic never
drives us its emotions. We must have take action. Bill Gates as a small young boy never had
anything to lose which he kept telling his good friend Paul Allen. When he had several odds
again him such as the American Law and several cases against him, he still consistently took
action by developing more software which the people wanted. This made him a super star
overnight.
“Whether it’s Google or Apple or free software, we’ve got some fantastic competitors
and it keeps us on our toes” – Bill Gates
Bill Gates took up the responsibility of being the Chief Software Architect, Bill Gates
was nurturing Microsoft by building a broad range of products. This was not just capitalizing onthe knowledge but provide the best by understanding the need of the people.
Bill Gates' Secrets of Success
Hard work: Bill Gates is a hard worker since the beginning of his life. In his college days,
he used to work all night long on his computer. When Microsoft was started, Bill Gates used to
sleep only for 6 hours in a day without skipping a single day of office. For Bill Gates, hard work
is one of the main keys of success.
Entrepreneurship:
Entrepreneurship is an integral part and is present in Bill Gates from the beginning. He
knows how to manage his work, he always takes a keen interest in learning, he learns from his
own mistakes, he is a creative person and, most of all, and he is focused towards his goals.
Confidence:
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Bill Gates has always been a highly confident person. He was always confident about his
dream of becoming successful.
Managerial Skills: The great managerial skills of Bill Gates helped Microsoft to be a successful
company. He efficiently managed all the areas of the company which required his focus.
A Great Convincer: Bill Gates is gifted with great convincing skills. He has made lots of
successful deals in his career. The deal with IBM was one of them.
Technical Mind:
Bill Gates is born with a highly technical bent of mind. It is a gift of god to him.
Microsoft has earned lots of success through this technical mind.
He Had A Vision:
From day one, Gates dreamed of having a personal computer in every home, in every
business and in every school. Throughout his career, he never once wavered from this dream.
Focusing on software as the means to popularize the PC, Gates built his empire around this
central vision and steered clear of all other distractions. And, the vision continues today. “We are
not even close to finishing the basic dream of what the PC can be,” he says.
He Had a Solid Team:
“If we weren’t still hiring great people and pushing ahead at full speed, it would be easy
to fall behind and become a mediocre company,” says Gates. From Microsoft’s inception, Gates
prioritized his team, bringing in only trusted friends to help him get the company started. As the
company grew, he insisted that they hire only the most capable young minds and strove to create
a small and creative environment for them to thrive in. Microsoft succeeded not only because of Gates, but also because of the strong team that stood behind him.
He Took a Long-Term Approach:
“In the decade ahead I can predict that we will provide over twice the productivity
improvement that we provided in the ‘90s,” said Gates. This bold statement captures Gates’
philosophy behind his entire business. Never one to chase after instant success or an immediate
pay-off, Gates began coding software with a view to the next fifty years. He has constantly tried
to keep his company at the forefront of new technological developments by funding new
research initiatives. Gates’ long-term approach helped ensure Microsoft’s remarkable staying
power.
He Learned From Failure:
In hindsight, Gates’ early failures seem so miniscule that they are almost laughable. But,
as a struggling entrepreneur, he went through the same frustration, confusion and despair that
others in his situation also face. What distinguishes Gates from the rest was his ability to rebound
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from his mistakes and take whatever lessons he could from them. He then became even more
resolute and determined to see his vision realize.
He Never Stopped Asking Questions:
“I believe that through our natural inventiveness, creativity and willingness to solvetough problems, we’re going to make some amazing achievements,” said Gates speaking to the
future possibilities for medicine, education and technology. When Gates faced a dilemma, he
didn’t stop and give up. He asked questions about what could be done to solve the problem.
From his business activities to his philanthropic efforts, Gates’ curiosity and desire to constantly
be learning has been one of the key factors behind his success.
“If I'd had some set idea of a finish line, don't you think I would have crossed it years
ago?” asks Gates. Showing no signs of slowing down, Gates continues to fuel his business,
inspire his workers and make his contribution to the global village.
“At Microsoft, there are lots of brilliant ideas but the image is that they all come from the
top,” says Gates. “I’m afraid that’s not quite right.”
While Gates has been the famous face of Microsoft for over thirty years, it took the help
of numerous other trusted individuals to help realize the company’s success.
When Allen and Gates first met as students at Lakeside, they instantly formed a strong
bond over their passion for computers. And, it was a bond that would last for the rest of their
lives. Knowing each other’s strengths and weaknesses, interests and passions and having a strong
sense of trust enabled these two entrepreneurs to form one of the most successful working
relationships of the 20th century.
Gates, recognizing the importance of a solid and trustworthy team, also brought on two
former high school friends, Ric Weiland and Marc McDonald, to be part of the core Microsoft
group. Gates knew that if Microsoft was going to get its feet off the ground, it was going to take
the hard work and sweat that he trusted few others to put in. From day one, he understood the
importance of having a small team that could join together each person’s enthusiasm around a
common goal.
When Gates moved the operation to Seattle in 1979, he had a staff of 16 people. As
Microsoft grew, so too did the number of employees that the company required. Gates continued
to bring in trusted friends of his whose characters he understood and who he knew he could trust,
including his friend from college, Steve Ballmer, who was thereafter in charge of human
resources. “Steve and I were kind of driving the business and Paul and I were driving the
technology,” recalls Gates. “Our success has really been based on partnerships from the very
beginning.”
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The move to Seattle proved to be a boon for Microsoft in that it enabled the company to
have a much wider range of skilled candidates to choose from. “In the world of software a lot of
the brilliant ideas of Microsoft come from a broad set of great people we've been able to hire,”
says Gates. In one particularly key move, Ballmer hired Charles Simonyi, one of the original
founders of the Xerox Palo Alto research lab, whose knowledge about graphical interfaces made
a significant contribution to Microsoft’s later graphical applications.
As their number of staff began increasing into the thousands, the company typically
focused on hiring people right out of school. “Most of our developers, we decided that we
wanted them to come with clear minds, not polluted by some other approach, to learn the way
that we liked to develop software, and to put the kind of energy into it that we thought was key,”
recalls Gates.
Microsoft continues to seek out only the best in order to help it stay ahead of its
increasingly fierce competition. “They key for us, number one, has always been hiring very
smart people,” says Gates. “There is no way of getting around, that in terms of IQ, you’ve got to be very elitist in picking people who deserve to write software. Ninety-five percent of the people
shouldn’t write complex software.”
By hiring the best and the brightest and carrying out work in small teams that stimulate
free and creative thinking, Microsoft has managed to retain its competitive edge for over three
decades.
“Though he never set out to be a millionaire, Gates not only became the world’s first cent
billionaire in 1999, but also one of the world’s most respected entrepreneurs for having
revolutionized the world of computers and setting new industry standards. “I really had a lot of dreams when I was a kid,” recalls Gates.”
“Power is the engine that drives the ability to influence. To understand leadership
effectiveness therefore, an analysis of the complex web of power relationships and influence
processes in organizations is essential. We also need to examine the sources of power and the
relationship of different power sources to leadership effectiveness.”
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Level 4 Leaders
Bill Gates has his own visions of what the business needs to do to succeed. He decides on
direction and then gets people to implement his vision. This is what level 4 leader refer to as
"first what, then who." Level 4 leaders are very much in the conventional mode. They may be
effective when it is not too difficult to decide what to do. And Bill Gates is too confident what hewants to do in near future and pursue his vision through his expertise.
Level 5 Leaders
We not put Bill Gates as level five leader because level five leader require both
professional will + humility in which definitely he has professional will but there is some doubt
about humility, although he is philanthropist who endowed $28 billion dollar in his own Bill &
Melinda Gates Foundation and even promise to donate his 95% wealth as he will have aged but
even after a lot of critics is there that he is doing all of it just because of status symbol, he is too
centralize and blamed for curbing innovation.
1. Autocratic style
Control is basic to Gate's nature and his management practice. He has an obsession with
detail and with checking up. Exp. Used to sign expenses for his right hand man – STEVE
BALLMER.
He is trying to monopolize the World Wide Web software market and has had legal
problems with the department of justice. Microsoft restricted the ability of its internet partners to
deal with its rivals. Also he dislikes complaints.
2. Delegate style
Brightest talent: Gates paid special attention to recruit and retain the best talent in the software
industry. He believed that the recruitment of talented software engineers was one of the most
critical elements in the software industry. Gates looked for a bundle of attributes in recruits.
These included the capacity to grasp new knowledge quickly, the ability to ask probing
questions, and deep familiarity with programming structures. Though a great number of potential
recruits applied for jobs at Microsoft, Gates assumed that the best talent would never apply
directly. Consequently, Microsoft's HR managers had to hunt for the best talent and offer them a
job Gives autonomy to his manager, his delegate’s authority to managers to run their
independent departments.
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Highly Capable Individual
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Contributing Team Member
Highly Capable Individual
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Position Power
Legitimate Power
It is based on his position power given by the organization. It is also called the
legitimization influencing tactic.
Employees agree to comply with management authority in return for the benefit of members. The use of legitimate power is appropriate when asking a person to do something that
is within the scope of their job.
Legitimate Use of Rational Persuasion
It is used by Bill Gates while dealing with higher-level managers. Rational Persuasion
includes logical arguments with factual evidence to persuade others to implement your
recommended action
Reward Power
It is based on the leader’s ability to influence others with something of value to them.
Microsoft is famous for giving huge remuneration packages to its employees. An important part
of reward power is having control over resources, such as allocating expense & budget funds.
Bill Gates has full control over evaluating employee’s performance determining their
raises, promotions & other rewards.
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Coercive Power
The use of coercive power involves punishment & withholding of rewards to influence
compliance. It is also called the pressure influencing tactics. Bill was a autocratic leader but he
never made rash threats & used coercion to manipulate others or to gain personal benefits.
Personal Powers
Personal power is derived from the follower based on the leader’s behavior. It includes
expertise, friendship or loyalty and charisma.
Expert Power
It is based on the user’s skill & knowledge. Being an expert makes other people
dependent on the leader. People often respect an expert & fewer the people who possess an
expertise, the more power the individual has. Bill Gates is a master of his subject & his
knowledge, skills, expertise is never questioned, tagging him having the expert power.
Referent Power
It is based on leader’s personal relationships with others. It is also called the personal appeals
influencing tactics based on loyalty & friendship. But with Bill Gates it is more of loyalty due to
his autocratic behavior towards his employees. People stay at Microsoft for longer time period
than most of the companies.
Influence Tactics
Rational Persuasion
Bill Gates extremely used this tactic by applying its functions in a very logical manner.
Bill always explained why the objectives need to be met.
He was very clear on the benefits which the followers would get & conveyed the same to
others.
He was very motivational regarding the set objectives & provided subtle evidences that
the objectives can be met.
He was very quick on explaining how problems & concerns will be handled.
He always innovate newer technologies & was very clear on their strength over others.
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Pressure
Bill Gates very frequently used the pressure influencing tactics from fear of reprimands,
probation, to suspension or dismissal.
Golden Words By The Great Leader Of It World
• As we look ahead into the next century, leaders will be those who empower others.
• At Microsoft there are lots of brilliant ideas but the image is that they all come from the
top - I'm afraid that's not quite right.
• Be nice to nerds. Chances are you'll end up working for one.
• I actually thought that it would be a little confusing during the same period of your life to
be in one meeting when you're trying to make money, and then go to another meeting
where you're giving it away.
• I believe that if you show people the problems and you show them the solutions they will
be moved to act.
• I really had a lot of dreams when I was a kid, and I think a great deal of that grew out of
the fact that I had a chance to read a lot.
• I'm a great believer that any tool that enhances communication has profound effects in
terms of how people can learn from each other, and how they can achieve the kind of
freedoms that they're interested in.
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• If I'd had some set idea of a finish line, don't you think I would have crossed it years ago?
• If you can't make it good, at least make it look good.
• In this business, by the time you realize you're in trouble, it's too late to save yourself.
Unless you're running scared all the time, you're gone.
• Information technology and business are becoming inextricably interwoven. I don't think
anybody can talk meaningfully about one without the talking about the other.
• It's fine to celebrate success but it is more important to heed the lessons of failure.
• Life is not fair; get used to it.
• Microsoft is not about greed. It's about innovation and fairness.
• People always fear change. People feared electricity when it was invented, didn't they?
People feared coal, they feared gas-powered engines... There will always be ignorance,
and ignorance leads to fear. But with time, people will come to accept their silicon
masters.
References
• Argyris, Chris, “Teaching smart people how to learn,” Harvard Business Review,
May-June 1991.
• Mintzberg, Henry, “The new management mind-set,” Leader to Leader, Spring
1997.
• Drucker, Peter, The Age of Discontinuity, Heinemann, London, 1969.
• Crainer, Stuart (editor), The Ultimate Book of Business Quotations, Capstone,
Oxford, 1997; AMACOM, New York, 1998.
• Bruce, Katherine, “How to succeed in business without an MBA,” Forbes, January
26, 1998.
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• http://creativityandinnovation.blogspot.com/2007/01/top-ten-creative-leadership-
traits.html
• REPORT ON LEADERSHIP STYLE OF BILL GATES by Dhananjay Kumar
(Jaipuria institute of management, Noida)
• http://www.brainyquote.com/quotes/authors/b/bill_gates_2.html
• Business by Bill Gates Way by DES DEARLOVE