Bill Gates, the co-founder and chairman of the Microsoft Corporation, has certainly reached legend status and not only because he is considered as the world's richest man. As the moving force behind a company that is considered “The Most Innovative Company Operating in the U.S.” (1993, Forbes magazines), Gates is certainly in a league of his own. With Gates at the helm, Microsoft launched a number of revolutionary technological advancements that have changed the face of the computer industry and the way people around the world use computers.
History has acknowledged Microsoft's great contributions and has judged Mircrosoft to be the first truly dominant player in home computer operating systems. Even today, Microsoft's influence is felt around the world through the broad usage of Microsoft Windows, currently the most widely used operating system in the world.
Gates first made his mark as is widely regarded as the prime mover and innovator behind the Microsoft Corporation from the time it was founded in 1975 until 2006. As the man responsible for product strategy, Gates greatly expanded Microsoft's product lines and established as well as defended the leadership position in many of its key areas of operation. Gates has not been perfect as some of his decisions have led to antitrust litigation over Microsoft's business practices. But his reputation as one of the most popular and respected entrepreneurs of the personal computer revolution is unquestioned. Gates is actually one of those men who is larger than his area of expertise. To illustrate this point, New Statesman magazine voted Gates as number eight among the “Heroes of Our Time.”
Of late, Gates has been delegating many of his key functions in Microsoft. He announced last June that he would be naming someone else as the head of operations of Microsoft by July 2008 although he did say that he will still sit as the company's chairman and as an advisor on special projects. Sources say that the leading candidate to succeed Gates as operations hear is Ray Ozzie, former president of the Groove company, which Microsoft purchased in 2005.
His latest focus has been in the area of philanthropy through the Bill and Melinda Gates Foundation. Some sources in the press estimate that Gates has probably contributed over half his fortune to charity.
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Consider the significance of Bill Gates choosing to make his breakthrough in operating software for IBM personal computers. If he had worked on check balancing software instead, Microsoft might not even exist today.
Many people choose what to work on solely based on their enthusiasm for the subject. For instance, salespeople may feel more energized by redesigning the compensation system than they do by finding more leads. Why? The compensation system shift can increase their pay from the current effort.
There's no necessary connection between finding more leads and any personal benefit. But in an organization that has too few leads, finding lots of good leads could create more compensation gains than changing the compensation system.
You have to watch out for what will help you achieve the most at an individual level before picking a breakthrough focus.
The same problem applies to entire organizations. Leaders need to broadly consider potential benefits before selecting a focus as well. Let's consider an example of how the choice of creating a breakthrough solution can make a large positive or negative difference for an organization.
In earlier days at Apple Computer, the organization set its focus on having a superior operating system and user features that would make it very appealing to do advanced computing on an Apple Macintosh. For many years after the IBM PC standard was set, users consistently reported preferences for Apple's offerings.
The only aspect where the PC standard did well compared to Apple was in having more application software available for PCs.
Microsoft was a much smaller company at the same time, and also had an objective of providing a superior operating system for personal computers. Microsoft focused its attention solely on improving its software and the frequency of upgrades in creating its breakthrough solutions for its computer users.
Apple continued to work across the board on all aspects of computing that affected its hardware or software. If Apple instead had selected the Microsoft focus, Apple could have chosen to make its proprietary operating system work on the PC standard as well.
Microsoft would have continued to do well on IBM-built personal computers, but Apple could have gained leadership with most of the clone PC makers who soon dominated the market. If successful in that focus, Apple would now be the world's most valuable company and would probably have stopped providing its own computing hardware at some point along the way.
As you can see from this example, it's important for organizations to think about the benefits that current customers and stakeholders receive. But it's even more important to think about the benefits that potential stakeholders will obtain as well.
In addition, how will your change affect the competitive balance in the market place? Can you, like Apple might have, cut off a powerful future competitor by concentrating your focus where it will do you the most good?
Both Jonathon Hardcastle & Donald Mitchell are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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