From Satya Nadella's conversation with the NYT:
Quote
Unlike almost every other company, Microsoft has felt a “minimal net impact” from coronavirus, according its latest financial report. The tech giant’s stock price is up 14 percent this year; it is sitting on nearly $140 billion in cash; and it looks likely to emerge from the pandemic stronger than ever. The company’s C.E.O., Satya Nadella, spoke with editors and reporters from The Times yesterday about managing through the pandemic.
Respond, recover, reimagine.
Mr. Nadella sees the world going through three phases during the pandemic. The first is simply responding to the immediate impact through office closures, cost cuts and the like. Then comes recovery, which is already underway in many places, and will be more like a “dial” than a “switch.” He said, “There will be lots of movement of the dial, back and forth.”
In the “reimagining” phase, innovations born of necessity during the previous two phases will emerge, like remote control of manufacturing processes, A.I. bots helping diagnose patients and more effective distance-learning technologies.
“Be on the lookout for what is lost.”
Mr. Nadella said that raw productivity stats for many of Microsoft’s workers have gone up, but that isn’t something to “overcelebrate.” More meetings start and end on time, but “what I miss is when you walk into a physical meeting, you are talking to the person that is next to you, you’re able to connect with them for the two minutes before and after.” That’s tough to replicate virtually, as are other soft skills crucial to managing and mentoring.
Switching from offices before the pandemic to an all-remote setup would be “replacing one dogma with another dogma,” he said. “What does burnout look like? What does mental health look like? What does that connectivity and the community building look like? One of the things I feel is, hey, maybe we are burning some of the social capital we built up in this phase where we are all working remote. What’s the measure for that?”
About all that cash ...
Microsoft spent $10 billion in its most recent quarter on share buybacks and dividends, up more than 30 percent from the year before. Is Mr. Nadella changing his thinking on how to spend it, through either returning it to shareholders, building up a safety buffer or spending it on acquisitions?
He answered that Microsoft will use “all of our levers” to grow. “We’re going to boldly allocate and acquire, build, innovate, partner, whatever,” he said. “And then, we are also going to make sure that we have the ability to do credit for small businesses and other organizations that need that help,” he added, saying that he has talked to several airline C.E.O.s about their troubles.
What is the metric for burning social capital? Networking effectiveness, i.e. productivity + turnover?
If you lose all hope, you can always find it again -- Richard Ford in The Sportswriter