7 Business Rules the New Microsoft CEO Should Learn from Bill Gates

Steve Ballmer, analysts agree these days, was not the best choice for the head of Microsoft. Now that he has announced his departure, everyone is curious about who will be his successor. There is no doubt that the best choice for the company would be the return of its founder Bill Gates, but he has ruled out that possibility as he seems no longer interested in the operational management of the company.

However, if Gates is not returning, there is no doubt that the new head of Microsoft, regardless of who it is, could learn a lot from his past business career. It is true that Gates never had the charisma of a Steve Jobs, let alone his marketing talent that could present any, even the most banal idea as revolutionary. Nevertheless, Gates turned Microsoft into an information technology giant that had no serious competition in most niches the company operated in during his leadership.

Here are 7 golden business rules that the new Microsoft CEO could learn from Bill Gates.

1. It is not important to be first to market, but to have the best product

Microsoft was never particularly innovative – it more often took ideas that were already on the market and refined them. However, when you are late to the market, you must win customers by making your product work better than the competition or offering something different. This is where Microsoft was unmatched. Whether it is Windows or Office, there are very good reasons why these solutions became dominant in the market, despite the fact that other manufacturers once held significant market shares.

2. Quality control is extremely important

Although Gates had his missteps, cases like the release of the half-finished and buggy Windows Vista during his tenure did not occur. This surely has to do with his programming beginnings and vast experience in operational product development management, where Steve Ballmer did not have much experience. The new CEO, of course, does not necessarily have to be a former programmer, but will need to establish an effective quality control system and prevent problematic development cycles like the one Vista exemplified from recurring.

3. Persistence in product development

Microsoft actually had a considerable number of failures for a company of such significance, even during Bill Gates’ time. However, what set the company apart from others was persistence, even when the first versions of products were not particularly successful. A good example is the first two versions of Windows, which did not achieve much success, until Windows 3.0 (and the soon-to-be-improved version 3.1) achieved worldwide success. This pattern was applied by Microsoft to a number of products until they became successful.

4. Learning from one’s own mistakes and a tendency for change

Closely related to the previous rule is learning from one’s own mistakes. This is a fundamental principle that is today preached as a mantra by various startup companies – innovate, test, change – but which Gates applied among the first as early as the early 1990s. When something is wrong, it needs to be addressed immediately. Only quality ideas should be improved.

5. Listening to users

Changing products makes little sense if it is not user-focused. Microsoft once listened to its users and created its products based on their feedback. It is true that users are still listened to today, but only after mistakes have already been made when the damage is done. Moreover, the company has also shown a certain arrogance as they initially decided to completely ignore user warnings in several recent products (Windows 8, Xbox One), only to decide to correct fundamentally flawed concepts after a media-covered negative backlash. Former Microsoft would listen to users before things escalated. Does anyone still remember how easily Microsoft abandoned its standalone MSN network in the mid-1990s when it realized that the future was in the internet, not isolated networks? Gates knew that users are always right, and if an idea does not resonate with them, there are good reasons for that.

6. Your vision needs to be shared with the team

Naysayers would say that the main reason Microsoft has come to where it is today is precisely due to the lack of vision from Steve Ballmer. This is probably not far from the truth. Although Microsoft and Apple are two extremely different companies, they share one essential similarity – in their best days, both companies had a clearly communicated vision and goal that was clear to every employee.

7. Understanding the dangers of success

Gates once stated that ‘success is a poor teacher because it can convince smart people that they cannot lose.’ Looking at how Microsoft has functioned since his departure, these words sound like a sort of negative prophecy. According to Gates, one cannot learn from success by reapplying the solutions that once led to it. On the contrary, success blurs vision, and the excessive confidence that arises from it leaves us unprepared for the challenges that the future holds. This is exactly what happened to Microsoft and Ballmer, who, due to success in the PC market, failed to timely define the importance of new mobile platforms like smartphones and tablets. Naysayers will say that the new CEO, fortunately or unfortunately, will not have this problem since Microsoft, despite still being a significant force in today’s IT industry, is no longer as successful a company as it once was.

You can read the text about the 7 biggest mistakes Steve Ballmer made while leading Microsoft HERE.