In this episode of The IoT Unicorn Podcast, independent civic engineer and former Chief Xbox Officer at Microsoft, Robbie Bach, discusses teamwork and leadership in the tech space. Download Transcript Here 00:00 Pete Bernard: Welcome to the IoT unicorn podcast. This is Pete Bernard from Microsoft. And this podcast is for anyone interested in the long-term technology trends in the IoT space and the journey from here to there. So let's get started. [music] 00:23 PB: On this episode of the IoT unicorn, I chat with Robbie Bach, former Microsoft executive. He was there for about 22 years, he was the chief Xbox officer and drove that program for a long, long time. We talk about Xbox, Xbox Revisited the new book he wrote, we also talk about some other projects like Zoom and Microsoft Kin or what we call Project Pink, and just in general leadership principles and techniques for leading through ambiguity with a ton of technology, especially in the IoT space. So great Robbie, thanks a lot for taking the time to join us here on the IoT unicorn. First off, kind of disclaimer, the topics typically are IoT-oriented, [chuckle] but we're gonna take a little diversion today, but I think it's still gonna be germane and... So anyway, I just wanted to thank you for taking the time to join us. 01:20 Robbie Bach: Happy to do it. 01:22 PB: Good, good. I don't know if there's a phone ringing there or something... 01:24 RB: Yeah, that's mine. [chuckle] We can start over if you like, that's a phone that I have no control over, it's actually the house phone ringing in my office. 01:34 PB: Oh, okay. That's alright. Don't worry about it we'll... It's part of a sincere authentic nature of the conversation, [chuckle] but I think one of the things... And I read your book, Xbox Revisited, which is cool, and I thought for today, one of the things that I thought was really germane was just talking about technology and leadership, or just leadership in general, and it was really fascinating to kinda read through your journey with leadership and the pluses and minuses and what you've learned about it. And I think in the IoT space, we're sort of like awash in technology. Before we started recording, I was explaining how I was futzing with my system and just too many pieces of tech, and a lot of companies, they have a tons of technology, there's no shortage, now we got 5G and LPWA and all these AI. But how do you take that ambiguous technologies swamp and actually provide some kind of leadership and guidance and structure or framework around thinking about things, so you can get things done and you can get organizations, especially big organizations, you can imagine, moving in the right direction. And I thought there was a lot in your book around Xbox Revisited that resonated with probably what a lot of companies are thinking about today, is like how do we navigate through some of the tech? 03:01 RB: The thing I always respond... I talk a lot about innovation, and I talk somewhat about that in Xbox Revisited, but I do a lot of it in the public speaking I do. And I talk about creativity and how do you come up with new ideas, and technology ends up being third on my list of things not first. And the things that come first are ironically, business model, because it turns out a huge portion of innovation actually happens in business models, and the second thing is experience and sort of how people interact with the technology, and then comes technology. And when something is technically lead, maybe it has a good sustainable business model and maybe it has a good experience, but maybe it doesn't, and that's why the first person to market with the technology doesn't always win. And my experience has been that a sustainable business with a great customer experience will beat somebody who has a great technology without a good experience, and so we tend to focus on those first two, first. 04:14 PB: Yeah, so when you... Probably you were going through this with the Xbox, was like, talking about the purpose, principles and priorities. I think I got that right? 04:27 RB: Yeah. 04:28 PB: So you manifested that with Xbox, are there other example you've seen where companies have been able to snap to a framework like that and get them moving in the right direction? 04:37 RB: Well, think about... One of the other companies I work with, is a company called Sonos, and they're really a great company, and they have amazing technology, they've got one of the best IP portfolios in the industry, they've done some very cool tech things, but they do not lead with technology, they absolutely don't. They lead with the experience, if you have somebody who has a Sonos system, they don't talk about the cool networking architecture that it has or how it makes sure to sync audio on a big TV screen and do surround sound easily. They talk about, "Oh God, it was so easy to set up and the music played and it sounded great." That's all experience-focused work. And it's super powerful, and they have their own business model which is fairly traditional, but when you think about somebody like Spotify and the access you get to the world's music and the experience you have in accessing that music, and they have a business model, which I think is challenging, but it's subscription-based, so that's been an innovation over the last 10 years or so, and those are the types of things people end up migrating to. And there are people in the world who have, there's higher-end sound systems than Sonos for sure, they love their sound quality, but if you wanna spend money, you can get higher-end sound systems, but they're hard to use, difficult to set up, and Sonos has this incredibly simple model and it just works. 06:13 PB: Yeah, one of the frameworks we've been using is the Jobs-To-Be-Done framework, I think you're familiar with that, but that's another way of really titrating down to what are the outcomes you want to accomplish, and then how do you get those jobs done? 06:26 RB: Well, in particular, if the jobs done reflect back on customer issues, to me, so much of what happens in the IoT space has to be, "Okay, what problem are we trying to solve? And if we're trying to solve a customer problem, okay, I get that." And so let's focus on solving the customer problem. Well, like turning on lights, not actually a customer problem, right? 06:54 PB: Right. [chuckle] 06:54 RB: Unless you wanna turn on the light. Now, if you say, "Oh, customers want controlled settings and they wanna make... " There's other issues with lighting that customers can relate to and wanna fix. Okay. Great, let's get after those. Customers knew how to set their heat, it turns out, but now solve some other issues around heating that were actually real customer problem. And so if the jobs done relate to customers, I'm all in. 07:22 PB: Right, right. Yeah, no it's true. At the end of the day, if you cannot solve a customer problem. I thought what actually was interesting in your book, they had a couple of things that caught my eye. First of all, I didn't realize you were a tennis player. 07:33 RB: Right. 07:34 PB: So, I'm a tennis player. 07:35 RB: Oh, cool. 07:36 PB: But you were in the top 50 in the US, so you'd probably kick my butt, but I thought that was cool. Are you still playing tennis by the way? 07:45 RB: I play a little bit of tennis, I don't play as much. I have a shoulder that has hit about 300 and too many serves. 07:53 PB: Okay. Yeah. That's a tough one. 07:54 RB: So I'm trying to avoid shoulder surgery. If I really wanted to keep playing competitively, I would have to have some work done. 08:00 PB: Yeah. Okay. Yeah, no, I was good. Actually, I got back into it, kind of a funny anecdote. I'd played for a long time back in the... When I was a kid, back in the '80s, and took a long time off and got back into it a few years ago and actually stepped on to the court at the pro club here. And I had my Donnay racket with me and the pro is like, "They went out of business like 10 years ago." So the first thing was, "You need to get your gear in shape." And so I learned a lot. But yeah, I play a few times a week, that was fun. That's good. 08:35 RB: I had the same experience I went to... I had some mid-size rackets, which were old and I went to upgrade them, which was fine, and then I went to go get them strung, and the guy asked me what tension I wanted them strung at and I was, "Oh, I don't know, 58 pounds." He said, "Well, is that for the horizontal strings or the vertical strings?" I was like, "Oh, well, that's a new idea." And, "Dude, what kind of strings do you want?" Oh, different for horizontal and vertical strings, I mean, these are all new ideas when you had a small face Donnay, none of that mattered. Now with these big surfaces. Again, the thing we're talking about, the technology, the solution you're solving is tennis players can keep the ball on the strings for a long time. And that would be a lot of control. 09:18 PB: I know. It's amazing I mean, how the sport's evolved, but like many things. The other thing that kinda popped out, I love this phrase, seagull management. Maybe you can talk a little bit about seagull management, that is something I will use over and over again, but can you give me like a... 09:35 RB: Yeah, look, I think there's lots of people who as leaders think their job is to dive in, evaluate something, poop on it and then leave, and so those are the seagulls. And in fact, as a manager, your job is actually quite different than that. Your job is to put a framework in place, to work with your employees to establish the set of priorities and things that they're gonna focus on, and they'll come back to you and say, "Hey, here's how it's going." And you'll give them ideas and thoughts on how to improve or make progress and answer questions, and, oh by the way, facilitate solutions where you can actually help. But the idea in your job is to sort of occasionally fly in and spot check their work, and then tell them they're doing the wrong thing. I