Bad Boy Ballmer

The Book of the Week is “Bad Boy Ballmer, the Man Who Rules Microsoft” by Frederic Alan Maxwell, published in 2002. This ebook recounts the history of Microsoft and the career of its co-founder, Steve Ballmer.

Ballmer grew up in Birmingham, Michigan, which was a community comprised of “intense and well-funded academic, athletic, and social competition, and a high level of parental expectation, involvement, and support.” Ballmer’s father decided he was going to attend Harvard College. Fortunately, his superb academic record proved sufficient for acceptance. There, he met Bill Gates. They struck up a friendship and started Microsoft in the spring of 1975.

In the early 1980’s, under Ballmer’s and Gates’ auspices, the company created applications software that worked best on its own operating systems. This was one of many of Microsoft’s monopolistic practices that prompted government investigations and many lawsuits against it. Legally, financially and politically astute, Microsoft successfully defended itself for well over a decade, and employed unlawful dirty tricks in taking swipes at IBM, Sun Microsystems, Netscape and many other companies that made competing products. The whole time, Microsoft arrogantly denied it was a monopoly.

In the summer of 1998, Ballmer was named president of the company, which was still dogged by accusations of illegal business practices. The corporate culture had changed for the worse, and employee turnover rose. In order to boost morale, Ballmer “scheduled one-on-one interviews with the top hundred of Microsoft’s now thirty-five thousand employees, asking them what they thought was wrong with the company and how it could change.”

Ballmer told the press that his $180 billion company was overvalued. Shortly thereafter, on September 23, 1999, Microsoft’s NASDAQ stock price plummeted. Shareholders in the Seattle area alone suffered collective losses of $11 billion, or over “$3,000 for every man, woman, child and dog.” Other tech stocks fell precipitously as well. It was thought that Ballmer’s remark was a deliberate strategy to financially debilitate Microsoft’s rivals, which lacked the resources his company did.

Performance of Microsoft employees was reviewed every six months, on a 5-point scale. Managers competed for the privilege of supervising employees awarded high scores. However, the system had an inherent unfairness in that some managers gave 3’s for 4.5-level work, because they were supposed to rank their subordinates pursuant to the normal curve.

Read the book to learn more about how Ballmer’s personality and actions shaped Microsoft for over a quarter of a century.

Multipliers

The Book of the Week is “Multipliers: How the Best Leaders Make Everyone Smarter” by Liz Wiseman with Greg McKeown, published in 2010. This repetitive ebook discusses two kinds of leaders:  “Multipliers” and “Diminishers.”

Multipliers positively influence the people around them so as to draw out almost two times what they previously believed their capabilities to be, as reported by senior professionals interviewed by the authors. “People reported actually getting smarter around Multipliers.”

A study conducted in a non-workplace arena showed that people who were lauded for their efforts rather than for their intelligence “actually increased their ability to reason and solve problems.” The book’s authors relate this to Multipliers, saying that Multipliers create a self-fulfilling prophecy of greatness by recognizing their colleagues’ accomplishments, spurring better thinking from everyone.

The authors cited many examples of this, including one in which a company did not hire additional talent in order to meet its goal of increasing sales quickly, but instead, utilized Multipliers to better leverage the brain power of its existing sales force. Another company used Multipliers effectively in that “They didn’t box people into jobs and limit their contribution… [they]… let people work where they had ideas and energy and where they could best contribute.”

In addition, Multipliers have a great sense of humor– the trait of a great leader– it represents security with oneself, and a lack of self-consciousness. Multipliers search for talent all over, identify and draw out the positive behaviors that come naturally to the people they influence, maximize performance, and remove obstacles.

Read the book to learn the many other ways Multipliers bring out the best in their coworkers, and how Diminishers negatively impact their coworkers.

Beam, Straight Up

The Book of the Week is “Beam, Straight Up: The Bold Story of the First Family of Bourbon” by Fred Noe, with Jim Kokoris, published in 2012.  This autobiographical book recounts the history of the brand of Kentucky bourbon known as “Jim Beam” as told by a descendant of the company’s founder.

The drink recipe dates back to the 1790’s, and the family first started selling whiskey in 1795. Bourbon is a kind of whiskey. The name Bourbon was derived from the county name in Kentucky in about 1820.

Whiskey is “a spirit that’s made from a grain like corn, rye, wheat or barley.” A whiskey can be called bourbon only if it is comprised of a minimum of 51% corn, that has been aged a minimum of two years “inside charred, new oak barrels that can only be used once.”

Other varieties of whiskey include scotch (mostly barley), Canadian (mostly rye) and Irish (mostly malted barley). “Thanks to our innovation and our premiumization (upscale brands), bourbon was the fastest-growing large category in the United States in 2011.”

In the early days, the family shipped the bourbon in oak barrels on flatboats via streams and rivers, of which Kentucky likely has more than any other state. In the 1850’s, railroads and steamboats began to serve as additional shipping channels.

The spirit industry had its share of problems through the decades. In the 1920’s, there was Prohibition. Other drinks containing alcohol including vodka, scotch, wine and beer rose in popularity. Even so, competing whiskey-making companies would assist each other when they faced various equipment failures due to disasters.

Noe writes, “Sometimes I think the whole world is like one big bar, and I’m the world’s bartender.”

Alive

The Book of the Week is “Alive: The Story of the Andes Survivors” by Piers Paul Read, published in 1974. This paperback tells the suspenseful true story of the aftermath of a plane crash in the Andes Mountains in Chile.

The small plane contained mostly strapping teenage boys who were members of a Uruguayan rugby team. Read the book to learn how the hardiest victims survived sub-freezing temperatures in the snow for a prolonged period– as they were trapped in the mountains– despite the fact that they had become chain-smokers.