How to Think Like Bill Gates

Bythesameauthor:

HowtoThinkLikeSherlock

HowtoThinkLikeSteveJobs

HowtoThinkLikeMandela

HowtoThinkLikeEinstein

HowtoThinkLikeChurchill

ForMumFirstpublishedinGreatBritainin2015byMichaelO’MaraBooksLimited9LionYardTremadocRoadLondonSW47NQ

Copyright©MichaelO’MaraBooksLimited2015

Allrightsreserved.Youmaynotcopy,store,distribute,transmit,reproduceorotherwisemakeavailablethispublication(oranypartofit)inanyform,orbyanymeans(electronic,digital,optical,mechanical,photocopying,recordingorotherwise),withoutthepriorwrittenpermissionofthepublisher.Anypersonwhodoesanyunauthorizedactinrelationtothispublicationmaybeliabletocriminalprosecutionandcivilclaimsfordamages.

ACIPcataloguerecordforthisbookisavailablefromtheBritishLibrary.

ISBN:978-1-78243-373-6inhardbackprintformatISBN:978-1-78243-375-0inpaperbackprintformatISBN:978-1-78243-374-3ine-bookformat

DesignedandtypesetbyEnvyDesignLtd

www.mombooks.com

Contents

Introduction

LandmarksinaRemarkableLife

EngageYourBrain

Gates’sHeroes

FriendandRoleModel

FindYourTrueCalling

TheBirthoftheMicrocomputerAge

EmbraceYourInnerGeek

KeepanEyeontheBigChance

FindYourComrades-in-Arms

Profile:PaulAllen

Profile:SteveBallmer

Profiles:CharlesSimonyi,NathanMyhrvoldandKazuhikoNishi

EmploytheBest

SleepisforWimps

DaretoDream

Microsoft’sBigDeal

Innovate,Innovate,Innovate

Stress-TestYourIdeas

GatesandIntellectualProperty

LeadfromtheFront

LearnfromYourMistakes

TheInternet:TheOneThatNearlyGotAway

KeepTrackoftheCompetition

Microsoftvs.Apple

BusinessisBusiness

MicrosoftandMonopolies

RealizeThatNoManisanIsland

Profile:MelindaGates

EnjoytheTrappingsofYourSuccess

TheRichestManintheWorld

TakeTimetoReboot

ReadLikeBillGates

Gates’sFavouriteBusinessBook

GiveSomethingBack

RedefiningPhilanthropy

TheBillandMelindaGatesFoundation

CreativeCapitalism

BringYourCelebritytoBear

PhilanthropicAims:ProvidingEducationandEqualityofOpportunity

PhilanthropicAims:CombatingDisease

TheFightAgainstPolio

GatesandGod

TheGatesLegacy

SelectedBibliography

Introduction

‘Hehadboththetechnicalsmartstounderstandwhat’sjustaroundthecorner,andthecommercialsmartstosellittotherestofus.ThiscombinationoftalentsmakesBillGates

oneofaveryrarebreedofentrepreneurs.’DESDEARLOVE,1999

BillGatesismanythingstomanypeople.TosomeheisanITgeniuswhosesoftwarehaspoweredglobalbusinessforoverthreedecades.Toothers,heisthegeekwhoconqueredtheworld.Hisdetractorsseeinsteadaniconofcapitalistexcess–amanwhobecametherichestindividualintheworldbeforehewasforty.Then,inthepastfewyearsandperhapsagainstexpectations,Gateshasbeenheldupastheultimate‘do-gooder’,helpingtoredefinephilanthropyforthemodernage.

HisisanextraordinaryCVthatrevealsamanofgreatcomplexity.Bornintoacomfortablemiddle-classAmericanfamily,itwassoonevidentthathewassomethingofaprodigywhenitcametocomputers.Thefirstdecadesofhislifewereengagedintheinsularbusinessofwritingcodeanddevelopinghisbusinessempire.Bythe1980shehadturnedhiscompany,Microsoft,intooneofthemostsuccessfulfirmsontheplanet.Hewasoneofthetwogreatbehemothsofthetechnologicalage,butwherehisgreatrival(andsometimesfriend),SteveJobs,broughtanairofbohemianrebelliontothecomputerbusiness,thebespectacledGatescametobeafigureheadofthestaidbutboomingcorporateAmerica.

Asabusinessman,hegarneredareputationforruthlessness.Henotonlyknewhowtodevelopaproductformarket,buthewasgreatatsellingitthere,too.Indeed,somehaveaccusedhimofbeingoverlyconcernedwithgettingoneoveronhisbusinessrivals,accusationsthatledtoyearsoflitigationoverthelegitimacyofafewofMicrosoft’sbusinesspractices.SuchhasbeenthedominanceofGates-originatedsoftwaredrivingtheworld’sPCsthatotherdevelopershaveunderstandablyfelttherehasbeenlittleroomleftforthem.GatesinturnarguedthatMicrosoftmerelyreapedtherewardsforbeinggreatinnovators.

Havingstartedhisbusinessoutofhisbedroom,Gatesfoundhimselftransformedfromthepluckylittleguythatpeoplelikedtobacktotheheadofaglobalempirethatmanyhadcometoloathe.OnceyourpersonalwealthdwarfstheGDPofmostoftheworld’scountries,itisdifficulttocastyourselfasa‘manofthepeople’.Althoughhugelyintelligentandarticulate,GatesalsolacksthatnaturalcharismathatwonJobspopstar-likepopularityevenasthebillionsrolledintohisbankaccount.

Bythemid-1990s,though,itwasevidentthatGateswaschanging.Thenerdytechieguywhospentdaysandnightsatatimerefiningcomputersoftwarewasenteringmiddleage.Hemarriedandhadkidsand,crucially,turnedawayfromhismonitortolookoutattheworld.Theinjusticeshesawshockedandappalledhim.Thatyourchancesofagoodeducationandevenadecentlylonglifearesointrinsicallylinkedtothelotteryofwhereyouhappentobeborncameasarevelation.

Havingspentthefirstfewdecadesofhislifecapitalizingonhistalentstomakehimselfabsurdlyrich,hedecideditwastimetogivesomethingback.Inagradualprocess,hesteppedawayfromtheday-to-dayrunningofMicrosoftandputhisenergiesinsteadintophilanthropy.Nordidhiswishtoimprovetheworldprovetobeapassingfad.TheBillandMelindaGatesFoundation,whichheestablishedin2000withhiswife,isnowoneoftherichestcharitableorganizationsintheworld.Perhapsevenmoreimportantly,thewayitoperatesisheavilyinfluencinghowthesectorasawholegoesaboutitsbusiness.

Naturally,noteveryoneisafanofthewaysthefoundationgeneratescapitalorhowit

dispersesit–Gateshimselfacknowledgesthatnotallofitsoperationshaveachievedwhathedesired.Butfewarguethatithasn’thadanenormousimpact,bothwithintheUSAandinthewiderdevelopingworld.If,asmanyexpect,polioiswipedoutasakillerdiseasewithinthenextfewyears,theGatesFoundationmustbegivenagreatdealofcreditforitspartinthefight.

Gates,then,hasentirelyreinventedhimself.Amanwhoformanyrepresentedthe‘take,take,take’cultureofWesterncapitalisminthe1980sand1990shasbecometheleadingfigureofthe‘give,give,give’movementinthetwenty-firstcentury.Timemagazinenamedhimoneofthe100peoplewhomostinfluencedthetwentiethcentury.Nowwestruggletoknowwhetherhisgreatestlegacywillbehiscontributiontothedevelopmentofcomputingorhisreconfigurationofwhatwethinkofascharity.

HowtoThinkLikeBillGatesisdesignedtotakealookatkeyaspectsofhischaracterandideology,aswellastoconsidersomeofthemostimportantinfluencesonhimatthedifferentstagesofhislife.IftheHowtoThinkLikeseriesprovesanything,itisthatgreatfiguresarerarelystraightforward,andGatesisnolessnuancedthananyoftheothersubjectscovered.Heisamanofprodigioustalent,pugnaciousinhisbusinessdealingsandsometimes,necessarily,ruthless.Heisatheartaproblem-solver(whetheritbehowtomakeaspreadsheetworkbetterorhowtoreduceglobalpoverty)whoinhisearlyyearswasdriveninnosmallpartbyadesireforpersonalrecognitionandmaterialgain.TheolderGates,though,islessinterestedinaccumulatingpersonalwealththaninfiguringouthowtobestmakeuseofit.Thattransitionisafascinatingoneandeachchapterofhislifeofferslessonsofenduringrelevance.

LandmarksinaRemarkableLife

1955 WilliamHenryGatesIIIisbornon28OctobertoWilliamandMaryGatesinSeattle,Washington.HebecomesknownasTreybyhisfamilyandasBilltothewiderworld.

1967 Billbeginsattendinganexclusiveprivatepreparatoryschool,Lakeside,intheHallerLakeneighbourhoodofnorthSeattle.

1968

Amemberoftheschool’scomputingclub,hewriteshisfirstprogram,usingtheBASIClanguageonaTeletypeModel33terminallinkedtoaremotemainframecomputer.AfellowclubmemberisPaulAllen,withwhomGateswilleventuallyfoundMicrosoft.

1970 GatesandAllenwriteatraffic-surveillanceprogramthattheycallTraf-O-Data,whichearnstheteenagersseveralthousanddollars.

1972 Gatesworksasacongressionalpage(anassistanttoamember)intheUSHouseofRepresentativesforthesummer.

1973 Afteracinghishigh-schoolSATs,GatesenrolsonHarvard’spre-lawprogramme.TherehebefriendsSteveBallmer.

1974 GatesandAllenspendthesummerworkingforHoneywell,aNewJersey-basedtechnologycompany.

1975

GatesandAllenproduceaBASICsoftwarepackagefortheAltair8800,alandmarkpersonalcomputerproducedbyMITS.GatesdropsoutofHarvardtojoinAlleninAlbuquerque,NewMexico,inordertoworkforthecompany.Thetwoco-foundMicro-soft.

1976 Microsoft(asitisnowknown)isformallyregisteredasacompany.Gatespublishesanopenlettercondemningsoftwaretheftbycomputerhobbyists.

1977 TherelationshipwithMITSbreaksdownovercommercialdisagreements.Meanwhile,GatesisintroducedtoKazuhikoNishi,whohelpslaunchMicrosoftinJapan.

1978 ThecompanyopensaJapanesesalesoffice.Microsoft’srevenuestopUS$1millionfortheyear.

1979 ThecompanyrelocatesitsUSbasetoGatesandAllen’shometown,Seattle.

1980 Microsoftagreestoprovideanoperatingsystemforthepersonalcomputerbeingdevelopedbyindustrygiants,IBM.

1981 Microsoftisincorporated,withGatesassumingthepostsofCEOandchairman.Hetakesa53%stakeinthecompany.SteveJobs,bossofApple,approachesGatesaboutdesigningsoftwarefortheimminentAppleMacintosh.

1983 TimenamesthecomputerasitsMachineoftheYear.PaulAllenleavesMicrosoft,havingbeendiagnosedwithHodgkin’sdisease.

1985 MicrosoftlaunchesitsWindowsoperatingsystem,whichemploysagraphicaluserinterface.

1986 Microsoftgoespublic.Gates’sshareholdingisvaluedathundredsofmillionsofdollars.

1987 Gatesbecomestheyoungestbillionaireinhistory.AtaneventinNewYork,hemeetsMelindaFrench,anemployeewhowillbecomehiswife.

1988 AppleunsuccessfullysuesMicrosoft,withJobsaccusingGatesofplunderingMacintoshinnovationsinthecreationofWindows.

1989 GatesestablishestheCorbisdigitalimagearchive.MicrosoftlaunchesOffice,asuiteofapplicationsincludingWordandExcel.

1990 BuoyedbythereleaseofWindows3.0,companyrevenuestop$1billionforthefirsttime.

1992 GatesisnamedbyForbesastherichestpersonintheUnitedStates.

1993 TheDepartmentofJusticebeginsinvestigatingMicrosoftforanti-trustpractices.

1994 GatesmarriesMelindaFrench.HealsofoundstheWilliamH.GatesFoundation.

1995

Windows95launches,alongwithMicrosoft’sownwebbrowser,InternetExplorer.Gatesreleaseshisfirstbook,TheRoadAhead.Forbesnameshimtherichestpersonintheworldforthefirsttime,withafortunejustshortof$13billion.

1996 MelindaGatesgivesbirthtoadaughter,Jennifer.Netscape,aninternetbrowsercompany,requeststheDepartmentofJusticeinvestigatethebundlingofWindowsandInternetExplorer.

1997 Gatesandhisfamilymoveintotheircustom-builtLakeWashingtonestate.

1998 TheDepartmentofJusticechargesMicrosoftwithanti-competitivepractices.

1999 Melindagivesbirthtoason,Rory.Gatespublishesasecondbook,[email protected].

2000

GatesisreplacedasMicrosoftCEObyhisoldcollegefriend,SteveBallmer.GatestakesthetitleChiefSoftwareArchitect.Ajudgerulesthecompanyshouldbesplitintwo–onepartdealingwiththeWindowsoperatingsystem,andanotherpartwithallothersoftware.Thedecisionisoverturnedayearlater.Meanwhile,theWilliamH.GatesFoundationissubsumedintothenewlyestablishedBillandMelindaGatesFoundation.

2001 WindowsXPislaunched,asistheXboxgamesconsole.

2002 Melindagivesbirthtoanotherdaughter,Phoebe.

2004 TheEuropeanCommissionlaunchesanantitrustcaseagainstMicrosoft.

2005 TimenamesBillandMelindaGatesasitsPersonsoftheYear,alongsideBono,inrecognitionoftheirphilanthropicwork.BillalsoreceivesanhonoraryknighthoodfromtheUK.

2006 BillionaireinvestorWarrenBuffettcommitsthemajorityofhiswealthtotheBillandMelindaGatesFoundation.MicrosoftannouncethatGateswillendhisfull-timerolewiththecompanyin2008.

2007 MicrosoftlaunchesWindowsVista.GatesreceivesanhonorarydegreefromHarvard,thirty-twoyearsafterdroppingout.

2008

TheEuropeanCommissionimposesarecordfineof$1.4billiononMicrosoft.Gatesleaveshisfull-timepositionasscheduledinJunetodevotemoretimetohisfoundation.AtameetingoftheWorldEconomicForuminDavos,heintroduceshisphilosophyof‘creativecapitalism’.

2010 Thefoundationpledges$10billionovertenyearstohelpresearch,develop,anddelivervaccinesfortheworld’spoorestcountries.

2011 Thefoundationlaunchesthe‘ReinventtheToiletChallenge’,aninitiativetoencourageinnovationintheinterestsofthe2.5billionpeoplewithoutaccesstosafesanitation.

PolioisdeclarednolongerendemictoIndia,amilestoneinGates’smissionto

2012 ridtheworldofthedisease.

2013 TheGatesFoundationlinksupwiththeBill,Hillary&ChelseaClintonFoundationtoassesstheprogressofwomenandgirlsaroundtheworld.

2014

GatesleaveshisroleasMicrosoftchairman.HeagreestobecomeaspecialadvisertonewcompanyCEO,SatyaNadella.HeisalsoonceagainnamedbyForbesastheworld’srichestperson,afterahiatusfromthetopspotdatingbackto2010.

2015 AnopinionpollconductedforTheTimesnewspaperfindsGatesisthemostadmiredpersonintheworld.

EngageYourBrain

‘Life’salotmorefunifyoutreatitschallengesincreativeways.’BILLGATESININTERVIEWWITHAUTHORJANETLOWE,1998

NoonecansaythatBillGates’sstoryisoneofragstoriches.Therewasnoneedforhimtofighthiswayoutoftheghettoorpullhimselfupbyhisbootstraps.Nonetheless,hisearlylifeisanobjectlessoninmakingthemostoftheadvantagesbestoweduponyou.

WilliamHenryGatesIIIwasborninSeattle,Washingtonstate,on28October1955.HisparentswereWilliamGates,Sr,alawyer,andMary,ateacherandbusinesswoman,andBillwouldbetheirmiddlechildandonlyson.ThefamilywaskeenoncardgamesandsoBillcametobeknownasTrey,acard-player’stermfora‘Three’thatreflectedhis‘III’designation.

Bothparentswerethoughtfulandwelleducated,andwishedthesamefortheiroffspring.Fromhisyoungestdays,Billwasencouragedtooccupyhimselfwithintereststhatwouldstretchthemind.So,forinstance,televisionwasbannedonschoolnights–arulewithwhichGateswasrelativelyeasilyreconciled.Ashewouldtellaninterviewerin1986,‘I’mnotoneofthosepeoplewhohatesTV,butIdon’tthinkitexercisesyourmindmuch.’Insteadofbeinggluedtothescreen,theGatesfamilyinsteadindulgedtheirpassionfor,amongotherpastimes,conversation,gamesandreading.

ThislatteractivityfundamentallymouldedGates’slifethroughitsmanyandvariedphases,andweshalllookathisrelationshipwithbooksinmoredepthlater(see‘ReadLikeBillGates’,here).Meanwhile,familydiscussionsoneverythingfromcurrentaffairstoculture,sportandthetriviaofeverydaylifeensuredthattheyoungBillhadabroadbaseofinterestsandtheabilitytoarticulatehisopinions.Contrarytothepopularimageoftheaveragetrailblazingtechno-geek,Billwasnevertheintrovertedlittleboywhofoundcomfortbehindtheprotectionofacomputerscreen.

Infact,hewassomethingofanextrovert,andahighlycompetitiveoneatthat.Asmightbeexpectedinafamilythatawardedhimanicknamerelatedtocardplaying,theGatesclanencouragedcompetitiveness.Asanexample,eachyearthefamilyholidayedinanareabytheHoodCanal,nearPugetSound.TheGateseswouldgowithseveralotheryoungfamiliesandthehighlightofthevacationwasalwaysamini-Olympicsinwhichtheyallcompeted.AlthoughBillwasquiteasmallphysicalspecimen,hewasdoughtyanddetermined.Onlythefoolhardyunderestimatedhimasanopponent.SpeakingtoauthorJanetLowein1998,herevealed,‘Inthesummer,we’d…playalotofcompetitivegames–relayraces,eggtosses,CapturetheFlag.Itwasalwaysagreattime,anditgaveallofusasensethatwecouldcompeteandsucceed.’

Inretrospect,itshouldcomeaslittlesurprisethatBillwasparticularlykeenongamesofstrategy,especiallychess(inwhichhedesiredtobeaGrandmaster)and‘Go’.Hisperformancebenefittedfromhisnaturalgraspoflogicandaseriouslyimpressivememory.Ononeoccasion,theministeratthefamilychurchofferedaprizetoanyonewhocouldlearntheSermonontheMountoffbyheart.Gateswas,ofcourse,wordperfectwhenhecametodeliverit.Hisyouthfullyexuberantexplanationwhentheministeraskedhowhehadmanagedsuchafeat:‘Icandoany-thingIsetmymindto.’

Hisabilitytomemorizeisfurtherevidencedbythefactthatwellintoadulthoodhewasabletoreeloffhislinesfromahigh-schoolplayinwhichheappeared.Suchperfectrecallprovedmostusefulashispassionforcomputerprogramminggrew,withhisabilitytoremembergreatexpansesofcomputercodeputtinghimaheadofthegame.

GrowingupinaneraofBoys’Own-talesofspaceexploration,Gateswasalsoopentothetechnologicalpossibilitiesofthefuture.Whenhewassix,hevisitedtheworld’sfairinSeattle,thecentrepieceofwhichwasanawesomelytallobservationtowerknownastheSpaceNeedle.InAmericaintheearly1960s,thefuturewasaplaceinwhicheverythingwaspossibleandheboughtintotheideawholeheartedly.InGates’scase,theboyreallywasthefatheroftheman,asitisadreamthathehasneverletgoof.

Gatesshowedpromiseinhisearlyyearsatschoolbuthisattentionwaspronetowander,soinsixthgrade(aroundtheageofeleven)hisparentsmovedhimtoaprivateschool,Lakeside,wheretheyhopedhewouldbegivenworktochallengehisburgeoningintellect.Hedemonstratedparticularpotentialintheareasofmathematicsandscience–whenhetookhisSATsin1973hescoredaperfect800onthemathscomponent.Notthathewasaone-trickpony,though:hecontinuedtonurtureabroadrangeofinterests,showingalikingfordramaandpoliticsinhissenioryears.Manyyearslaterhewouldacknowledgethathisteenswerepivotalinhisdevelopment,declaringtoStevenLevy,authorofHackers:HeroesoftheComputerRevolution,thathis‘softwaremind’wasshapedbythetimehewasseventeen.

Otherswerequicktoseehispromise.SeveralIvyLeagueuniversitiescamecallingandhechoseHarvard.However,likehisgreatrival-to-be,SteveJobs,heskippedalotofclassesoncehewasincollege.Hecontinuedtoexcelinthosesubjectsthatinterestedhimbutsimplydisengagedwiththosethatdidnot.Hedid,though,makefulluseofthecomputerlabs,undertakinghisownprojectsandsometimesspendingdaysatatimethere.Andwhenhegotbored,hefilledhishourswithpokermarathons.

Gateswasbornintoanenvironmentwherelivelyintellectwasnotonlyadmiredbutactivelyencouraged.Quick-witted,thoughtfulandexcitedbywhattheworldhadtooffer,hethrived.Hemaynothavebeenthemodelstudent–especiallyinthoseareasthatcapturedhisimaginationless–butheembracedhisownintelligenceandneverfelttheneed,assomanychildrendo,tohideitfromtheworld.

Ina2000bookbyCynthiaCrossen,TheRichandHowTheyGotThatWay,Gatesisquotedassaying:‘Smartnessisanabilitytoabsorbnewfacts.Toaskaninsightfulquestion.Toabsorbitinrealtime.Acapacitytoremember.Torelatetodomainsthatmaynotseemconnectedatfirst.’Itisacredothathasservedhimwell.

Gates’sHeroes

‘Howcananuglylittleguywhoisn’tevenreallyFrenchmanagetoriseupandrewritethelawsofEurope…Thisisonesmartguy.’

BILLGATES,QUOTEDINGATES:HOWMICROSOFT’SMOGULREINVENTEDANINDUSTRY–ANDMADEHIMSELFTHERICHESTMANINAMERICA(1993)

Gateswasneveroneforhero-worship,evenasateen,whenmostofusadornourwallswithimagesofsportspeople,popstars,movieiconsorpoliticalrevolutionaries,towhomourdevotionmayormaynotstandthetestoftime.Nonetheless,hedevelopedasmallcoterieoffigureswhomheadmired,includingsomeofthegreatestfiguresinhistory.

Hewas,forinstance,agreatfanofSirIsaacNewton,theseventeenth-toeighteenth-centurynaturalphilosopherbestrememberedforhisformulationofthelawsofgravity.Asafellowmathematicianandphysicist,Gatesofcourseaspiredonlytotheverybest.AlsodeemedworthyofhisadulationwasLeonardodaVinci,theItalianpolymathwhosevariedachievements(frompaintingtheMonaLisatodesigningaprototypeflyingmachinecenturiesbeforehumanflightwasachieved)madehimthearchetypal‘RenaissanceMan’.LeonardohascontinuedtocastaspellonGatesintoadulthood,andanexpensiveoneatthat,asweshallseeinthechapter‘EnjoytheTrappingsofYourSuccess’(here).AshesaidinTheNewYorkTimesin1995:‘Leonardowasoneofthemostamazingpeoplewhoeverlived.Hewasageniusinmorefieldsthananyscientistofanyage,andanastoundingpainterandsculptor.’

LEADERSOFMEN

ItistellingthatonehistoricalcharactertohavepiquedGates’sfascinationwasNapoleonBonaparte,thegreatFrenchgeneral-turned-dictator.Bothrelatively

diminutiveofstature,theyeachsetouttoconquertheworldthroughamixofcoolcalculationandaudacity.Theymasteredtheskillofsniffingouttheweaknessesoftheirrivalstoo,andearnedreputationsforasometimesabrasiveleadershipstyle.ItdoesnottakemuchtoreimagineGatesastheNapoleonofthetechnologicalage.

Other‘heroes’cameontotheGatesradarlaterinlife,althoughithasnotbeeneasytomeethisexactingcriteria.HenryFord,forexample,failedtomakethegrade,servingasarolemodelwhenitcametoattainingsuccessbutlettinghimdownbyhisrelativefailuretoretainit.NelsonMandela,bycontrast,wonGates’sadmirationforhisalmostunworldlymagnanimityandhisabilitytomaintainacoolrationaleeveninthefaceofextremeprovocation.Whileparallelsbetweenthegreatanti-apartheidleaderandthesoftwarewizardmighthavebeenhardtodiscerninGates’syoungerdays,itismucheasiertoseetheinfluenceofMandelainhisreincarnationasaglobalphilanthropist.

PerhapsamoreobvioussubjectofesteemfortheearlyperiodGateswasTigerWoods,whocamefromnowheretosetnewstandardsinthegolfingworldnotlongafterGateshadmadeasimilarimpactonthecomputingindustry.Bothachievedmuchwhilestillveryyoungandbroughtafocustotheirrespectivefieldsthatfewothers,ifany,havematched.

Gatesturnedhisattentiontothemodernscientificcommunityforanotherfavourite–thephysicsNobellaureate,RichardFeynman.HewascrestfallenwhenFeynmandiedin1988,shortlyafterGateshaddeterminedtomeethiminperson.Bornin1918,FeynmanwasanAmericantheoreticalphysicistbestknownforhisworkinquantummechanics(includingquantumcomputing)andparticlephysics,andsharedthe1965NobelPrizeinPhysicsforhiseffortsinquantumelectrodynamics.Healsosoughtoutinnovativewaysto

presenthisdiscoveries,creatingapictorialsystemthatcametobeknownasFeynmandiagrams.Gatesnodoubtappreciatedhisgraspoftheimportanceofbothsubstanceandstyle.ButperhapshisappealtotheMicrosoftsupremoisbestsummedupinacoupleoflinesFeynmanoncewrotetooneofhisstudents:‘Theworthwhileproblemsaretheonesyoucanreallysolveorhelpsolve,theonesyoucanreallycontributesomethingto…Noproblemistoosmallortootrivialifwecanreallydosomethingaboutit.’TheyarewordsthatcouldeasilyhavetumbledfromGates’sownmouth.

FRIENDANDROLEMODEL

‘Don’tcompareyourselfwithanyoneintheworld.Ifyoudoso,youareinsultingyourself.’BILLGATES

ArguablythepersonwhoGatesmostlooksuptoisamanwhobyhisownadmissionhaslittlefeelforthetechnologicalworldthatGatesinhabits.WarrenBuffett,however,isafellowself-mademulti-billionaireandoneofGate’schiefrivalstothetitleofrichestmanintheworld.HehasalsoexertedenormousinfluenceonGates’sphilanthropicadventures.BorninOmaha,Nebraska,in1930,BuffettistheheadofBerkshireHathawayandwidelyregardedasamongthemostwilyinvestorswhohaseverlived.Hisfortune,whichwasestimatedat$73billionin2015,camevirtuallyexclusivelyfromhisknackofbackingtherightcommercialhorse.Knownasthe‘OracleofOmaha’,BuffettcreditsmuchofhissuccesstofollowingtheprinciplesespousedbytheprofessionalinvestorBenjaminGraham,whoseworksBuffettbeganstudyinginthelate1940s.TogiveanideaofBuffett’sskillsinmakingmoneyoutofmoney,a$10,000investmentinBerkshireHathawayin1965wasworthinexcessof$50millionin2014.

GatesmetBuffettforthefirsttimein1991ataneventarrangedbyBill’smother,Mary.Theyinstantlyhititoff.In2006,theGuardiannewspaperquotedGatesassayingBuffett‘hasthisveryrefreshing,simplewayoflookingatthings’.Ithelpedthattheysharedasenseofhumourandthesamebroadpoliticalaffiliations–bothtendtowardtheDemocraticparty.Theyevenhavesimilartasteinfood:despitetheirvastwealthandtheirregularattendanceatgrandbanquets,bothstillenjoythehumblehamburger.BothalsohaveaninstinctforfrugalitysothatononeoccasionwhenthepairhadtravelledtoChinatogether,theyoptedtoeatataMcDonald’sandBuffettpaidforthemealusingmoney-offvouchersthathehadmadeapointofcarryingwithhim.Buffett’sinfluenceonhisyoungprotégéextendsmuchfurther,though.

Hewas,forinstance,responsibleforGatestakingupthegameofbridgewithsomeseriousness.(Foramanwhohadlongenjoyedplayinggames,itissomewhatsurprisingthathehadnotcometobridge–thetactician’sultimatecardgame–earlier.)Moresignificantly,GatescreditsBuffettwithfundamentallyinfluencingthewayheapproachescommerce.InaspeechatSanJoseUniversityin1998,hesaid,‘IthinkWarrenhashadmoreeffectonthewayIthinkaboutmybusinessandthewayIthinkaboutrunningitthan

anybusinessleader.’BuffetthimselfnotablydidnotputhismoneyinMicrosoftbutonlybecausehemakesitaruletoonlyinvestinsectorsheisconfidentheunderstands.Thecomputerbusinessdoesnotfitthatbill.Hehas,though,freelyacknowledgedGates’sentrepreneurialflair,sayingin1992,‘I’mnotcompetenttojudgehistechnicalability,butIregardhisbusinesssavvyasextraordinary.’

However,surelyposteritywillregardBuffett’simpactonGates’sphilanthropy–intermsoffinancialbacking,strategyformulationandmoralsupport–asthemostimportantfruitoftheirfriendship(seehere).In2008,GatessaidontheCharlieRoseshow:

WarrenBuffetistheclosestthingIhavetoarolemodelbecauseoftheintegrityandthoughtfulnessandjoyhebringstoeverythinghedoes.I’mcontinuingtolearnfrommydad,I’mcontinuingtolearnfromWarrenandmanytimeswhenI’mmakingdecisions,Itryandmodelhowthey’dapproachaproblem.

FindYourTrueCalling

‘Iwasluckyenough,atayoungage,todiscoversomethingthatIlovedandthatfascinatedme–andstillfascinatesme.’

BILLGATESININDUSTRYWEEK,1996

In1986,afeatureintheWallStreetJournalpaintedapictureofBillGates’slifeasaHarvardstudentintermsthatcouldapplytomillionsofothernaval-gazingundergraduatesfacinguptoimpendingadulthood.Gatesdescribedhimself‘sittinginmyroombeingaphilosophicaldepressedguy,tryingtofigureoutwhatIwasdoingwithmylife’.

Doubtless,thisisabroadlyaccuratedepiction,inthattheexactpathofhislifewasyettobelaidout.However,whereasmanystudentsliterallyhavenotaclueaboutwhatwillcomeaftertheircarefreeuniversitydaysdrawtoaclose,Gateswasallbutdestinedtomakehismarkinthecomputingindustry.Afterall,hespentswathesofhiswakinghourshoninghisprogrammingskillsandhaddoneforyears.WhenGatesfirstgotseriouswithacomputer,hewasonlythirteen,butveryquicklyitwasevidentthatitwasarelationshipbuiltonfirmfoundations.Hehadfoundhisloveandwasintentonnurturingit.

The‘firstdate’occurredaround1968atLakesideschool,althoughitwassomethingofablinddate.ThatisbecauseLakesidedidnothaveacomputerofitsown.Suchthingsweretoolargeandmuchtooexpensiveforaschooltopossessinthosedays.Toownamainframecomputer–thecutting-edgemachinesofthetime–youneededabudgetofmillionsandacresofair-conditionedspaceinwhichthebanksofequipmentcouldbekeptatasuitabletemperature.Nonetheless,Lakesidedidhaveateletypemachine,whichcouldbeconnectedtoamainframehousedelsewhere.Lakesidepaidtousethemainframeonatime-sharedealalongsidenumerousotherinstitutions.

Althoughthecomputingthatcouldbedonewithinthissystemwasrudimentarytosaytheleast,theexperiencecapturedGates’simaginationinstantly.HeandafewotherpupilssetuptheLakesideProgrammers’Club,andbeforelongGateshadwrittenhisfirstchunkoforiginalcode–aprogramtorunagameoftic-tac-toe.Neveronetolethisyouthholdhimback,Gateswastheyoungestmemberoftheclubbutoneofitsmostprominentcharacters.Hisrefusaltocedetimeontheteletypemachineeventuallyresultedinhimbeingaskedtoleavethegroup,buthewassoonbackwhentheothersrealizedhewascapableoftechnicalfeatsthattheywerenot.Heagreedtorejoinbut,intypicalGatesfashion,heinsisteditwouldbeonhisterms.Hereturnedasamoredominantfigureintheclubthantheonetheyhadexiled.

Nonetheless,therewasstillthethornyissueofeconomics.Itcoststudentsabout$8anhourtousethemachine.Thatwouldbeexpensiveforyouraverageinternetcafétodaybutinthelate1960sitwasasmallfortuneforaschoolboytofind.Forawhilethegroupreceivedfundingfromaparents’group,butitwasnotlongbeforethatrevenuestreamcouldnotkeeppace.Meanwhile,Bill’sparentswerestretchingthemselvestosendhimtotheschoolinthefirstplaceandwereinnopositiontobankrollhisnewhobby.SoGatesdidjustwhathehasdoneallthroughhislife–heusedhisinitiative.Heneededmoney,sohewouldfindajob.

Aschancewouldhaveit,theskillshehadbeendevelopingwouldgethimthepositiontopayforhimtocontinuehoningthem.AcompanycalledComputerCenterCorporation(orC-Cubed)hadrecentlysetupbusinessinSeattle.GatesandhisfellowLakesidersstruckaninnovativedealwiththem.Inreturnforfindingbugsinthenascentcompany’sprograms,thestudentsweregrantedaccesstoC-Cubed’smainframeforfree.Obviously,thishadtobeoutofofficehours,soGatesandhispalsgotintoacultureofcomputinglate

intothenightandatweekends.HisworkforC-CubedwouldbringhimtotheattentionofacompanyworkingonprogramstoanalyseelectricityneedsintheColumbiaBasin.UnawarethatGateswasonlyintheninthgradeatthetime,theycalledhiminforaninterview,whichledtohimtakingupavaluableworkplacementinPortland.TherehecameintocontactwithaseniorprogrammercalledJohnNorton,whomadeanenduringimpressiononGates,notleastforthewayinwhichhepushedtheyoungboytokeepgettingbetter.Gateshardlyneededencouraging.

Bythetimehewasfifteen,Gateshadprogressedfarbeyondgamesoftic-tac-toe.HejoinedforceswithaclubmemberacoupleofyearshisseniorcalledPaulAllen,beginningaprofessionalrelationshipthatwouldseebothmenreachtheupperechelonsoftheworld’srichlist.Buttheystartedouthumblyenough.TheirfirstmajorventurewastowriteaprogramthattookSeattle’srawtrafficdataandconverteditintoreportsthatcouldbeusedbytrafficengineers.TheycalledtheprogramTraf-O-Dataandultimatelymadeintheregionof$20,000fromit.Moreimportantly,theyhadgainedinvaluableexperienceandrealizedtheyworkedwellasateam.

WhiledevelopingTraf-O-Data,GatesandAllendraftedinathirdpartner,PaulGilbert,toworkoncreatinghardwaretoruntheprogram.Itwasanenterprisethatconvincedthetwothatinfactsoftwarewasthewayforwardforthem.Alittlewhilelater,GatescreatedanotherprogramthatautomatedthetimetablesoftheteachingfacultyatLakeside.Inreturn,hewasgivenincreasedaccesstothemainframethattheschoolused.Gateswaslettinghisexpertiseworkforhimandhadthegoodsensetotaketheopportunitytodevelopfurtherashisreward.

GatesmaywellhaveponderedwhatlayaheadofhiminhisHarvarddormroom.Weknow,forinstance,thatheflirtedwiththeideaoffollowinghisfatherintolaworperhapsbecomingascientist.Butitisdifficulttobelievethattherewasreallymuchdoubtastowhichroadhewouldeventuallyfollow.

THEBIRTHOFTHEMICROCOMPUTERAGE

‘Nevertrustacomputeryoucan’tthrowoutawindow.’STEVEWOZNIAK

Inthelate1960s,moderncomputingwasalmostexclusivelyviamainframecomputers–physicallyvastmachinesusedbygovernmentsandbusinessesformassdataprocessing.Saveforafewenthusiastichobbyistscobblingtogethercircuitboardsintheirsparerooms,theideaofindividualsusingapersonalcomputerfortheirownendswasbutadistantdream.

However,bytheearly1970s,newvistaswereopeningup,thanksinlargeparttotherapiddevelopmentofmicroprocessors.Aroundthistime,SiliconValley–astheSantaClaraValleyinCaliforniacametobeknown–wasbeginningtoblossomasevermorehightechcompanies(manywithaffiliationstoStanfordUniversity)gravitatedtothearea.FacilitiessuchastheXeroxPARCresearchanddevelopmenthubwouldexertaprofound

influenceonthetechnologicalindustryfordecadestocome,notleastthroughtheimpacttheymadeonGatesatMicrosoftandSteveJobsatApple.

1975wouldproveatrulylandmarkyearinthedevelopmentofthepersonalcomputer.ThatyearacompanycalledMicroInstrumentationandTelemetrySystems(orMITSforshort)releasedtheAltair8800.BasedontheIntel8080microprocessorreleasedin1972,itwasamicrocomputerthatanadepthobbyistcouldbuildfromkit.Furthermore,retailingat$439,itwasjustaboutaffordable,too(althoughthepricequicklyroseasyouaddedotherbitsofessentialequipment).

Intruth,theAltair8800doesnotmuchresemblethepersonalcomputerswithwhichwearenowfamiliar.Itlackedamonitorandakeyboardandhadamiserly64Kmemory.ThiswasnotamachineonwhichyoucouldstreammoviesorplayGrandTheftAuto.Yet,itwastoprovecrucialinthePCrevolutionthatwasprimedtospectacularlyignite.NotonlywasitthecomputerthatdirectlyledtothecreationofMicrosoft,butitalsoinspiredanothertechyenthusiast,oneSteveWozniak,tobuildamachineofhisown:theAppleI.

Theworldwasabouttochangeforever.

EmbraceYourInnerGeek

‘Ifbeinganerdmeansyou’resomebodywhocanenjoyexploringacomputerforhoursandhourslateintothenight,thenthedescriptionfitsme,andIdon’tthinkthere’s

anythingpejorativeaboutit.Buthere’stherealtest:I’veneverusedapocketprotector,soIcan’treallybeanerd,canI?’

BILLGATES,THENEWYORKTIMES,1996

TherearephotographsofGatesfromhiscollegedaysandtheearlyyearsofMicrosoftinwhichhelooksnothinglessthantheposterboyforgeekdom.Wearingshapelessjumpersoverhissmallframeandsportingowlglassesandadishevelledmopofhair,hecouldnothavelookedmoreliketheclassnerdifhehadtried.Ifthatwerenotenough,evenhischoiceofchildhoodmusicalinstrumentwashighonthe‘uncool’scale.NoguitarorsaxophoneforGates,butthetromboneinstead.

Evenwhenhehadbecomeoneoftherichestpeopleontheplanet,heshowedneitherenthusiasmnoraptitudeforfashion.AsheexplainedtoPlayboyin1994:

Therewasonepointinmylifewhenmymotherwastryingtoexplaintomeaboutwhatcolourshirttowearwithwhatties…andIthinkpeoplelistentotheirmother’sadvicewhenitrelatestofashion.It’snotanareainwhichIclaimtoknowmorethanshedoes…Idon’tlookdownatthecolourI’mwearingduringtheday.SoifitpleasesotherpeoplethatIknowalittlebitmoreaboutwhichshirttopickwithwhichtie,that’sfine…IthinkIknowalittlebitaboutitnow,butbelowaverage.

YetiftheyouthfulGatesseemedtoepitomize‘thegeek’,thetruthwasalwaysalittlemorenuancedthanthat.Hemayneverhavebeentheschooljock,buthewasanableathleteand,aswehaveseen,fiercelycompetitive.Hedidspendmuchofhislifetappingawayatcomputers,buthisinterestsextendedbeyond,too.Yet,undeniably,therewasstillsomethingabouthimthatmadeentryintothe‘coolgang’allbutimpossible.

Hisimagewasfurtherenhancedbytalesofhispenchantforrockingbackandforth,notleastduringmeetings.Asachildhehadarockinghorsethathelovedanduponwhichhespentvaluabletimecontemplatingtheworld.Thoughheoutgrewthehorse,themotioncontinuedtosoothehimintoadulthood.

TheboyGateswasalsorenownedforanextraordinaryloveofjumping.Heenjoyedinsertinghimselfinsideaboxandthenspringingout,tryingtogofurthereachtime,andhecontinuedpolishinghisjumpingskillspastthepointwhenmostofuswouldhaveleftitbehindasaninfantileendeavour.

OFFTHESCALE?

TherehasbeenspeculationovertheyearsastowhetherGatesexhibitstraitsconsistentwithautism.Thisisaclaimwithoutanyknownfoundation,mademoreproblematicbythefactthatverymanyofushaveaspectstoourpersonalitiesthatmightputussomewhereonthe‘autisticscale’.Nonetheless,in1994Timemagazineranafeatureinwhichelementsofhischaracterandbehaviourwerecomparedwithautistictraits.Inparticular,thearticlehighlightedhishighlylogicalapproachto

problems(needlesstosay,acomputerprogrammermusthaveacertainloveoforder,althoughGateswasequallyknownforhavinganuntidydesk),hisabilityforabstractthinking,histendency(then,atleast)toavoideyecontactandhisreputationfor

suddenemotionaloutbursts.Whilesuch‘diagnosisatadistance’isintenselydifficultandpotentiallydangerous,itnonethelesshighlightsGates’senduringimpressionof

‘otherness’.

AlthoughhetoldtheNewYorkerin1994:‘Idon’tjumpspontaneouslythewayIusedto,intheearlyyearsofthecompany…oreveninameeting…’,despitegoingontoclaimthathisleapingexploitswerenowonlyrarelyundertaken,itisknownthatheoncetookupatable-jumpingchallengeataMicrosoftChristmasparty.Indeed,hisfuturewife,MelindaFrench,wasthere,urginghimonandrampinguptheriskfactorbyplacinglitcandlesonthetabletop.

Thetruthis,perhaps,thatsuchendeavoursreflecthoweasilyboredGatescanbecomewithordinarylife.Forinstance,Gatesisleft-handed(anattributesomeresearchsuggestsisindicativeofcreativeandinnovativeflair),andifasastudenthefoundhimselfinalecturethathadlosthisattention,hewouldtakenoteswithhisrighthandforthesimplechallengeofit.

Hehasalsohistoricallyseenhimselfassomethingofanoutsider,eventhoughhehasrarelydisplayedalackofconfidenceinsocialsituations.Inhisearlycomputingdays,inwhichhewasemployedtofindbugsinprograms,heregardedhimselflessacoderthanahacker–thatistosay,anoutlaw-likefigure.AshewroteinTheNewYorkTimesin1996:‘WhenIwasateenager,gettingacomputertocrashwasabigdeal.Itwasawaytolearn.’Indeed,atonestageinhisteenshewasdiscoveredhackingintoaprotectedcommercialprogram,andunderthreatofsanctionsfromboththeauthoritiesandhisparents,hequitcomputingforseveralmonths.

BythetimehewasatHarvard,hissenseofbeingasocialoutcasthadheightened.InacommencementaddresshegaveatHarvardin2007,heexplained,‘Icametobetheleaderoftheantisocialgroup.Weclungtoeachotherasawayofvalidatingourrejectionofallthosesocialpeople.’Likemanyothersbeforehim,Gateshadrealizedthatifyoucan’tjoin’em,setupyourowngangandbethemasterofthat.Ifhewantedtositatacomputer,orjumpoutofabox,orrockbackwardsandforwards,thenhewould.

Inrecenttimes,hisimagehasundergonesomethingofarehabilitation.Formanyyears,hewascaricaturedasthecorporate-lapdoguber-nerdagainstthecuriouslycoolfigureofSteveJobs,whohadcarefullypositionedhimselfasachampionofindividualityandthe‘thinkdifferent’philosophy.Butwithhisdistancinghimselffromtheday-to-dayrunningofMicrosoft,alliedwithhisreinventionasthemostimportantphilanthropistoftheage,theworldhascometore-evaluateGates.Nolongerishesimplythemostfamoustechguyontheplanet,theleadinglightofwhatafamous1996documentaryreferredtoastheTriumphoftheNerds.Insteadheisseenasanintrepidfighteragainstdisease,injusticeandinequality.Asortofsuperhero,ifyoulike.Andthere’snothinggeekyaboutthat.ButGateswouldn’tmindeveniftherewere.In2011hetoldtheDailyMail:

Hey,ifbeingageekmeansyou’rewillingtotakea400-pagebookonvaccinesandwheretheyworkandwheretheydon’tandyougooffandstudythat,youusethattochallengepeopletolearnmore,thenabsolutely,I’mageek.Ipleadguilty.Gladly.

KeepanEyeontheBigChance

‘Let’sstartacompany.Let’sdoit.’PAULALLENTOBILLGATES,1975

WhateveruncertaintyGatesfeltabouthisfutureatHarvard,heseizedhisopportunitieswithvigourwhentheyarose–justashehascontinuedtodothroughouthislife.Whereamorecautiousspiritmighthaveheldbackandrisk-assessedanopportunity,Gatesdemonstratedfromayoungageasoundinstinctformakingtherightchoices.

1975wastheyeareverythingchangedforGates,innosmallpartdowntoPaulAllenandtheAltair8800.ItwasAllenwhofirstsawanarticleinthemagazinePopularMechanicsdetailingthereleaseofthegroundbreakingnewmachine.HegotintouchwithGatesatHarvardandsuggestedthetwoworktogethertodevelopalanguageforit.The8800initsrawformwas,toallintentsandpurposes,aboxwithsomeblinkinglights,butAllenwasconvincedtheycouldmakeitdosomuchmore.AsGatestoldityearslater,Allenimploredhimtojointheirfortunestogetherandformacompany.Theythrewafewnamesaroundforthenascententerprise.Allen&Gates(inthatorder)wasoneoption,buttheysettledonMicro-soft(sincetheywereanticipatingcreatingsoftwareformicrocomputers).Thehyphenwouldbedroppedwithinafewmonths.

Thereisavastchasmbetweengivingyourtheoreticalbusinessanameandbreathinglifeintoit.ButGatesandAllenhadthetenacityandaudacitytomakethingswork.Theyalsohadthefear–afearthatasoftwarerevolutionwasabouttostartandtheymightmissoutonit.Nowwastheirtimetoseizethemomentandiftheymissedit,itmightneverreturn.Workingontheprincipleof‘nothingventured,nothinggained’,GatesmadeanextraordinaryapproachtoEdRoberts,thefounderofMITS.

HetoldRobertsthatheandAllen(virtualunknowns,letitberemembered)hadcreatedaninterpreterforthe8800thatwouldallowthemachinetorunprogramswritteninBASIC–Beginner’sAll-purposeSymbolicInstructionCode,acomputerlanguageinpopularusesincethemid-1960s.Robertswasintriguedandarrangedforademonstrationatthecompany’sofficesinAlbuquerque,NewMexico,forsixweekslater.Success!Except,ofcourse,GatesandAllendidnotyethaveanythingtoshowMITS.Butcomeththehour,comeththemen.

Thegreatestproblemtheyfacedwasthattheydidnothaveaccesstoan8800,nordidtheyhavetheresourcestopurchaseone.Theydid,however,havetheiracumen.GatessecuredaccesstothemainframecomputeratHarvard’sAikenComputerCenterandheandAllenusedtheinformationavailableinthePopularMechanicspiecetocreateasimulation.TheyspentmostofFebruaryandMarchworkinglikedervishes,muchofitinGates’sdormroom,andgraduallycreatedasuitablepieceofsoftware.Expendingenormousenergy,theystrovetomakeitasneat,simpleandelegantaspossible.Intheir1992bookHardDrive,authorsJamesWallaceandJimEricksonquotedGatesthus:‘ItwasthecoolestprogramIeverwrote.’

Intheevent,AllenwaschosentogotoAlbuquerquetodemonstrateit,andcontinuedtorefineitevenashetravelledtomeettheMITSboss.Robertswassuitablyimpressedwithwhathesaw(andentirelyunawareofthecircumstancesofitsrapidcreation).Heagreedtobuythepackagefor$3,000plusroyalties.Itwouldgoontobecometheindustry-standardprogramforthenextsixyears,fuellingGates’sdeterminationthatMicrosoftshouldprovideindustry-standardsoftwareforevermore.

Asaresultoftheirsuccess,AllenwasrecruitedbyMITStobethecompany’ssoftware

director.GatestookabriefsojournfromhisHarvardstudiestojoinhiminAlbuquerque,workingasacontractor.NotlongafterhisreturntoMassachusetts,hedecidedtomakethemovepermanent.SoitwasthathedroppedoutofHarvardinJune1975.HeandAllendecidedtogiveMicrosoftarealgoinabidtobecomeleadersinanindustry–thesoftwarebusiness–thatdidnotyetmeaningfullyexist.Theycouldfeelwhichwaythewindwasblowing,though.Theageofthepersonalcomputerwasloomingandvirtuallynoone(saveforanotherhopefulstart-upcalledApple)wasproducingcomputerswiththeirownsoftware.Thatmeanttherewerealotofmanufacturersinneedofsoftwaretorunontheirmachines.SteveJobsneatlysummedupthescenarioinwhichMicrosoftwasborn:‘Billstartedasoftwarecompanybeforeanyoneevenknewwhatasoftwarecompanywas.’

ThefoundingpartnersagreedthatGatesshouldbepresidentandAllenvicepresident.Furthermore,sinceAllenwasreceivingasalaryfromMITS,Gatespersuadedhimthatheshouldhavea60percentstakeandAllen40percent.Fromtheoutset,Gatesheldtothenotionthatallisfairinlove,warandbusiness.

BuoyedbytheMITSdeal,Microsoftsoonhadarosterofothercustomers.Gates,meanwhile,wasunstintinginhiseffortstodrivethecompanyon.Notonlydidheplayhispartincoding,buthelookedaftertheadministrativesideofthingsandhittheroadinsearchofnewwork.WhentherelationshipwithMITScametoanendin1977,MicrosoftnolongerhadapressingreasontobeintherelativetechnologicalbackwaterofAlbuquerque.GatesandAllenwerereadytogobackhome,sorelocatedthecompanytoBellevue,Seattle,in1979.Bythen,theyhadthirteenemployees.Andwithintwoyears,theworkforcehadgrowntenfold.By1983ithadreachedalmost500(andwouldhoveraround90,000whenGateslefthisfull-timepostwiththecompanyin2008).Gateshadalwayspridedhimselfonknowingeverymemberofstaffbyname,butthosedaysweresoonover.MicrosoftwasinthebigleagueandGatescouldresteasythattheopportunityhadassuredlybeenseized.

FindYourComrades-in-Arms

‘I’mnotaneducator,butI’malearner.AndoneofthethingsIlikebestaboutmyjobisthatI’msurroundedbyotherpeoplewholovetolearn.’

BILLGATES,THEROADAHEAD,1995

Gatespossessesenormouspersonalresourcesandself-motivation,buthealsorealizedearlyonthatheneededtofindlikemindswithwhomtocollaborateifhewasgoingtofulfilhisgrandestdreams.Therefore,hehasalwaysmaintainedasmallcoterieofcloseconfidantsandallieswhoseskillscomplementhisown.Nomatterhowadeptacoder,Gatesunderstoodthatthesoftwareindustryevolvessorapidlyandinsomanydirectionsthataone-manbandisdoomedtofail.Astheabovequotesuggests,awinningteamneedsmemberswhoareallpreparedtolearnfromeachother.Gatesisblessedwithsufficientself-beliefthatheisnotafraidtoworkwithpeoplewhomayhaveskillsthatsurpasshisincertainareas,andwhoareunafraidtochallengehim.Asoneofhismostinfluentialcolleagues,NathanMyhrvold,toldTimein1997:‘Billisnotthreatenedbysmartpeople,onlystupidones.’

OverthefollowingpagesareprofilesofafewofthemostsignificantofGates’sbrothersinarms–startingwithAllen–whohelpedbuildMicrosoftintotheleadingsoftwarefirmintheworld.

PROFILE:PaulAllenGatesandAllenwereschoolfriendsfromLakesidewhoworkedtogetherontheTraf-O-Dataprojectandwentontoco-foundMicrosoft.BeforeBillandMelinda,peoplespokeofBillandPaul.HewastheSundanceKidtoGates’sButchCassidy,or,perhapsmorepertinently,WoztoGates’sSteveJobs.

Bornon21January1953,AllenisolderthanGatesbutwasalwaysthequieterofthetwo,evenatschool.Theirfriendshipwasrootedinasharedbeliefthatcomputershavethepowertochangetheworld.Earlyonintheirassociation,AllennotedGateswas‘suggestibleand…readytojumpatanychancetohavefuninstrangeways.Wefittogetherverywell.’

ThetwomaintainedtheirrelationshipevenafterAllenleftschooltobeginstudyingatWashingtonStateUniversity.However,Allenwouldnevergraduate,insteadtakingajobwithatechfirminBostonbeforejoiningMITS.Havingco-foundedMicrosoftin1975,Allenwastherethroughthecompany’sinitialgrowthphaseuntil1983,whenheleftthebusinessafterbeingdiagnosedwithHodgkin’sdisease.Bythen,Microsoftwasunrivalledastheworld’sbiggestsoftwarefirm.

TheGates-Allenpivotworkedsowellbecauseitwasbalanced.Bothwerehugelycapableprogrammers,butwhileGatesfocusedonbuildingthebusinessinthoseearlyyears,Allenensuredthatthetechnologicalsidewasuptospeed.Gatessummedituplikethis:‘I’mmoreaggressiveandcrazilycompetitive…runningthebusinessdaytodaywhilePaulkeepsusoutinfrontinresearchanddevelopment.’

IfAllenwastheperfectcounterbalancetoGates,thatisnottosaythattheirfriendshipdidnothaveitsupsanddowns.Itisafacttheybothfreelyadmit.Forinstance,AllenquicklylearnednottoplaychessagainstGates,sincethelatterwasasoreloserwhotypicallysweptthepiecesofftheboardinafitofpiquewhenAllenhadtheeffronterytobesthim.Allen’s2012biography,IdeaMan,furtherelucidatedtheirsometimestempestuousrelationship,withGatesnotingthathismemoriesdifferedtoAllen’sregardingcertaineventsthatdepictedhiminanunflatteringlight.

Notably,AllensuggestedGateshadbeenkeentodowngradehispartner’sshareholdingduringtheillnessthatendedhisfull-timerolewiththecompany.EventheverytitleofthebookindicatesthatAllenfeelshebroughtmuchtothepartnershipthathasgonepubliclyunacknowledged.Yetforalltheblow-upsandrecriminations,theywereundeniablyabrilliantteam.In1997,GatestoldTime:‘Weweretruepartners.We’dtalkforhourseveryday…weareveryclosefriendstodayandI’msurewealwayswillbe.’

‘Duringthelastfourteenyearswehavehadnumerousdisagreements.However,Idoubtanytwopartnershaveeveragreedonasmuch.’

ALETTERGATESSENTALLENWHENTHELATTERLEFTMICROSOFTIN1983

ShortlyafterMicrosoftwentpublicin1986,AllenbecameabillionaireandasofDecember2014hadanestimatednetworthof$17.1billion.Yet,likeGates,hehashardlysatbackandputhisfeetup.In1986hefoundedVulcanInc.,whichhascometoembraceanumberofvariedenterprises.Heis,forinstance,theowneroftheSeattleSeahawksAmericanfootballteam(whobecameSuperBowlchampionsunderhisleadership),thePortlandTrailBlazersbasketballteamandtheSeattleSounderssoccerteam.Meanwhile,hehasestablishedtheAllenInstitutesforBrainScienceandArtificialIntelligence,investedmillionsinaprivatespace-explorationprogrammeandwasamongtheoriginalbackersofStevenSpielberg’sDreamWorksStudios.

Agreatmusiclover(andsometimesrockguitaristinthebandTheUnderthinkers),hehasusedhisconnectionstosecurejammingtimewiththelikesofPaulMcCartney,MickJaggerandBono.Havingboughtsomeextremelyexpensivepopmemorabilia,includingJimiHendrix’swhiteStratocaster,whichheplayedatthelegendaryWoodstockFestival,AllenestablishedtheExperienceMusicProject(nowtheEMPMuseum),acollectionofpopularculturalartefactshousedinabuildingdesignedbyFrankGehry.HehasalsobuiltupaprivateartcollectioncomprisingworksbytheOldMastersthatsomeexpertsconsideramongthemostimportantontheAmericancontinent.

Thentherearetheyachts.Allenhasownedatleastthreemega-yachts,includingthe126-metreOctopusthatcost$200millionin2003,whenitwasthoughttobethelargestofitskindintheworld.Employingacrewofbetweenfiftyandsixty,itincludesacinema,anindustry-standardrecordingstudio,abasketballcourt,aswimmingpoolandevenitsowneight-personsubmarine.WorkingwithGatesmayhavehaditschallenges,butitsrewardsareevidenttoo.

PROFILE:SteveBallmerGatesfirstencounteredBallmeratHarvardwheretheybecamefirmfriends.HejoinedMicrosoftasitsbusinessmanagerin1980andheadedupseveraldivisionsbeforebecomingfirstthecompanypresidentin1998andthensucceedingGatesasCEOin2000.Itwasaposthehelduntil2014,whenhisnetworthwasputataround$22billion.

Ballmer,anativeofDetroit,isafewmonthsyoungerthanGatesandwasmajoringinappliedmathematicswhentheyfirstmet.Bothwerekeentofurthertheirbusiness

knowledge,soenrolledonapostgraduateeconomicscourse.Muchofitwentabovetheirheadsbutitdemonstratestheimportancetheyattachedtounderstandingthenutsandboltsofcommerce.Inaddition,Ballmermanagedthecollegefootballteam,aswellaswritingfortheHarvardCrimsonnewspaperandanotherliterarymagazine.UnlikeGatesandAllen,Ballmerdidgraduate(magnacumlaude,noless),butwithdrewfromfurtherstudiesattheStanfordGraduateSchoolofBusiness.By1980,MicrosoftwasgrowingsoquicklythatGatesfelttheneedforabusiness

managertoassisthimandcouldthinkofnobettercandidatethanhisformercollegefriend.Ballmerwassignedupasthecompany’stwenty-fourthemployee.BeforelonghehadearnedareputationwithinthecorridorsofMicrosoftasanenforcerandavoice-pieceforGates.IfGatescouldcowanemployeewithatantrum,Ballmerwaseverybitasforceful.Althoughhelackedthetechnicalsavvyofthecompany’stwofounders,hewasapassionateadvocateforthebusinessandwouldprovekeytodrivingittonewcommercialheights.

Hewouldbecomeheadofseveraldepartments–includingoperations,operatingsystemsdevelopment,andsalesandsupport–andworkedextensivelyintheUSandEuropeanmarkets.WhenthetimecameforGatestohandoverthereinsofpoweratthecompanyhehadbirthed,Ballmerwashishand-pickedreplacement.

Ballmerisarisk-takerinthemouldofallgreatentrepreneursandputsmuchofMicrosoft’ssuccessdowntothemanagement’swillingnesstomake‘boldbets’.However,hischampioningofthistacticcontributedtohistenureasCEOcomingtoanend.Afteraseriesofacquisitionshadfailedtoreaptheirexpectedrewards,Ballmerfoundhimselfconfrontedbyaboardsplitovertheproposedmulti-billiondollarpurchaseoftheNokiamobilephonecompany.Althoughthesalewentthrough,itwasannouncedinAugust2013thatBallmerwouldstepdownfromhisrole.Itisalsowidelyrumoured(althoughnotconfirmed)thatBallmer’srelationshipwithGatesstrainedafterhebecameCEOandthatthetwonolongertalk.Ifitisindeedtrue,itisashame,sincebeforehandingoverthereinsofpowerGateshadtoldForbesthat‘Steveismybestfriend’.

Nonetheless,BallmerprovedthatthereislifeafterMicrosoft,becomingowneroftheLosAngelesClippersbasketballteamafewmonthsafterrelinquishinghispost.Hepaidaprincely$2billionfortheteam.ItshouldmakeforatastyfixtureagainstthePortlandTrailBlazers!

PROFILES:CharlesSimonyi,NathanMyhrvold,KazuhikoNishiIfAllenandBallmerwerethemostdominantfiguresatMicrosoftalongsideGates,therearemanyotherswhocontributedtothecompany’stechnologicalandcommercialexpansion.Infact,farmorethancanbedetailedhere.However,thethreefiguresbelowalldeservespecialmention.

Hungarian-bornCharlesSimonyiisasoftwarearchitectwhowastwentywhenhemovedtotheUnitedStatesin1968.HeworkedforawhileatthelegendaryXeroxPaloAltoResearchCenter(XeroxPARC),includingastintalongsidetheesteemedRobertMetcalfedevelopinganearlypersonalcomputer,theXeroxAlto.In1977SimonyiearnedadoctorateincomputersciencefromStanfordUni-versityandfouryearslaterhemetGates,whosuggestedheheadupanewapplicationsdevelopmentdivision.Inthispost

SimonyioversawthecreationofWord,ExcelandotherOfficeapplicationsthatprovidedthefoundationsforMicrosoft’slong-termfortunes.Heleftthecompanyin2002toco-foundhisownbusiness,IntentionalSoftware.Healsofoundhimselfinthepublicspotlightforhisfifteen-year-longrelationshipwithentrepreneurandcelebrity,MarthaStewart.Withapersonalfortuneestimatedtobeineightfigures,hehasbeenabletoindulgehisloveofspacewithtwotripstotheInternationalSpaceStation.Hehasalsoundertakensubstantialphilanthropicactivities.LikeGatesandAllen,NathanMyhrvoldisasonofSeattle.Bornin1959,hestudiedat

UCLAandPrinceton,wherehecompletedadoctorateintheoreticalandmathematicalphysics.HesubsequentlysetupatechfirmthatMicrosoftboughtin1986for$1.5million.Myhrvoldthenbeganathirteen-yearstintwithMicrosoft,becomingitsChiefTechnologyOfficerandfoundingMicrosoftResearchin1991.HisfingerprintswereonmanyoftheinnovationsthatdroveMicrosoft’srisetoworlddominationinthe1980sand1990s.Hispost-MicrosoftlifehasincludedtheestablishmentofIntellectualVentures(acompanyspecializinginpatentmanagement),winningtheworldbarbecuechampionshipsandwritingabook,ModernistCuisine,abouttheapplicationofscientificandtechnologicalapproachestofoodpreparation.In2010hispersonalfortunewasratedat$650million.

KazuhikoNishiwasbornin1956inKobe,Japan,andin1977hefoundedtheASCIICorporation,whichpublishedapopularcomputingmagazineandbecameactiveinsoftwaredevelopment.Nishi–asomewhatplumpengineeringstudent–joinedforceswithGatesin1978whenbothwerejusttwenty-twoyearsold.CommonlyknownasKay,NishibecameMicrosoft’sagentintheFarEastandwasresponsibleforsecuringadealwiththeJapanesefirmNECthatgaveGateshisfootholdintheregion.HewasalsokeyinthediscussionsthatledtoMicrosoftteamingupwithIBM.AsGateswouldrecall:‘ThatnightKaywasthefirstguytostandupandsay,“Gottadoit!Gottadoit!”Kay’skindofaflamboyantguy,andwhenhebelievesinsomething,hebelievesinitverystrongly.Hestoodup,madehiscase,andwejustsaid,“Yeah!”’

Butby1986,therelationshipbetweenKayandGateshadfallenapart,thankslargelytotheformer’sunpredictability.Thisrangedfromfallingasleepinmeetings(althoughGatescouldhardlygetonhishighhorseaboutthat,asweshallsee)tocollaringhigh-levelexecutivesontheirdoorstepsandoverridingfinancialinstructionsfromGateshimself.WithMicrosoftabouttofloatonthestockexchange,GateswantedtorestructuretheirpartnershipandbringKaywithinthecompanyonafull-timebasis.ButKaywouldhavenoneofit.Theresultwasanacrimonioussplit.‘Theguy’slifeisamess,’GatestoldtheWallStreetJournalatthetime.‘He’sworthnegativehalfamillionandI’mworthXmillion–that’scertainlyseedsforbitterness.’

EmploytheBest

‘We’reverybigonhiringsmartpeople,soyou’dbetterbecomfortableworkingwithothersmartpeople…’BILLGATES,1998

JustasGateshasstriventofillhisinnercirclewithpeoplewhosharehisvisionandbringtheirownparticularattributestotheparty,hesoughttobuildMicrosoftonabedrockoftalentedstaffunitedinacommoncause.AshesaidinakeynotespeechatSanJoseStateUniversityin1998:‘Welikepeoplewhohavegotenthusiasmfortheproduct,technology,whoreallybelievethatitcandoamazingthings.’

ThosewhogotoworkforMicrosoft(variouslynicknamedMicrosofties,MicroserfsorthemoregenericPropellorheads)knowthattheyaregoingtobeputthroughtheirpaces.Eighty-hourweeks,forinstance,arenotatalluncommonformanyemployees.Indeed,GateswasquotedbyDanielIchbiahandSusanKnepperintheir1992bookTheMakingofMicrosoftassaying,‘Ifyoudon’tliketoworkhardandbeintenseanddoyourbest,thisisnottheplacetowork.’

ThedemandsputuponstaffreflectGates’senduringbeliefthatMicrosoftmustalwaysgivegoodproduct.‘Microsoftisdesignedtowritegreatsoftware,’Forbesreportedhimassayingin1997.‘Wearenotdesignedtobegoodatotherthings.’That,itwouldbefairtosay,includesprovidingemploymenttoslackers.Butforthosewhomakethegrade,therewardsareplentiful.Notonlyistheretheprospectofsignificantfinancialremuneration(althoughnewemployeesshouldn’texpecttogetrichquick),thereisalsorealscopetomakeyourvoiceheard.Inhis1999book,Business@TheSpeedofThought,Gatesstated:‘Smartpeopleanywhereinthecompanyshouldhavethepowertodriveaninitiative.’

In2003,GatesgaveaninterviewfortheSmithsonianInstitutionOralandVideoHistories,whichprovidedauniqueinsightintohisattitudetowardsrecruitment:

Ourhiringwasalwaysfocusedonpeoplerightoutofschool.WehadafewkeyhireslikeCharlesSimonyiwhocamewithexperience.Butmostofourdevelopers,wedecidedthatwewantedthemtocomewithclearminds,notpollutedbysomeotherapproach,tolearnthewaythatwelikedtodevelopsoftware,andtoputthekindofenergyintoitthatwethoughtwaskey.

Inmanyways,Gatesalwayssoughttoreplicatetheformulathatgavethecompanyitsinitialsuccesses:aworkforcefullofuncynical,youthfulexuberance,unstintingenergyandakeeneyeforthepotentialofthelatesttechnology.Ofcourse,thatisbadnewsifyourworkstartstolagbehindthecurve.AlthoughMicrosofthasprettyimpressivestaffretentionstatisticsbyindustrystandards,ithaslongbeenrumouredthatthe5percentoflowest-achievingprogrammersareculledeachyear.AsGateswroteinTheNewYorkTimesin1996(inwordsimbuedwithahintofmenace):‘Theflipsideofrewardingperformanceismakingsurethatemployeeswhodon’tcontributearecarefullymanagedorreassigned.’

SLEEPISFORWIMPS

‘Wedidn’tevenobeya24-hour-clock;we’dcomeinandprogramforacoupleofdaysstraight.’

BILLGATES,TRIUMPHOFTHENERDS,1996

AlthoughlifeasaMicrosoftieisnottobeenteredintolightly,itshouldalsobenotedthatGatesdidnotexpectmoreofhisstaffthanhehimselfwaspreparedtodo.Hehasalwayshadaphenomenal–evenmacho–workethic,routinelylabouringuntilhequiteliterallydropped.TheearlydaysofMicrosoftwerelitteredwithlegendarymarathoncodingsessions,fuelledbycopiousamountsofpizzaandpunctuatedbyhigh-speeddrivesalongNewMexico’shighways.Continuingthequoteabove,Gatessaid,‘[Therewere]fourorfiveofus.Itwasusandourfriends–thosewerefundays.’Seniorstaffwereevenknowntodozeoffduringclientmeetings,suchwastheefforttheyexpendedonproductdevelopment.Meanwhile,atinternalmeetings,Gateslikedtobrainstormwhilerecliningonthefloor,ahabitthatalsocommonlyresultedinunschedulednaps.

ToGates,sleepisessentiallyforwimps.HewroteforTheNewYorkTimesin1997thatheenviedthosepeoplewhocansurviveonthreeorfourhours’sleepanight,arguingthey‘havesomuchmoretimetowork,learnandplay’.Thereisthenubofhisattitudetowardsrest:whilethemedicalprofessionassuresusthatsleepisessentialforphysical,mentalandemotionalwell-beinganddevelopment,Gatesconsidersitsomethingthathappenswhileyoucouldbedoingsomethingmoreconstructive.Herewasaman,afterall,whoreportedlytookjustfifteendaysholidaybetween1978and1984.

Nonetheless,Microsoftwasalsoattheforefrontofthatmovementinthe1980sand1990sthatlookedtoprovideemployeeswithworkplaceleisureopportunities.Rootedintheprinciplethataworkerabletocutlooseeverynowandagainwillreturntotheirjobenergized,motivatedandinspired,GatescreatedaheadquartersatRedmond(notfarfromSeattle)famousforitsatmospherereminiscentofauniversitycampus.Thereare,forinstance,extensiveon-sitesportsfacilities,includingfootballpitches,basketballcourtsandrunningtracks,alongwithcateringservicesthatstayopenfarlaterthanyourstandardfactorycanteen.FormanyyearsthecompanyalsoorganizedanannualsummerMicro-Games(reminiscentofthemini-OlympicsofGates’schildhoodvacationsatHoodCanal),beforestaffnumbersmadesuchanenterprisetoounwieldy.

TheRedmondCampusisunliketheofficesmostofusencounterinourprofessionallives.Butjustbecauseyoumightseethestaffdressedincivvieshavingjustshotafewhoops,don’trunawaywiththeideathatthisisaplacewhereyoucanrelaxfortoolong!

DaretoDream

‘Oursloganfromtheverybeginningwas“acomputeroneverydeskandineveryhome”.’BILLGATES,1997

In2008,GatestoldPCMagazinethat‘IreallyhadalotofdreamswhenIwasakid’.Hisreluctancetoeverputlimitationsonhisimaginationprovedinvaluablewhenitcametolaunchingabusinessinasectorasunmappedasthesoftwareindustrywasinthe1970s.Gatesneverletfearoftheunknownholdhimbackorconstrainhisambition.ItisperhapstellingthatoneoftheearlysuggestionsheandAllenconsideredfortheircompanynamewasUnlimitedLimited.

WhileitmayhavebeenApplethatcoinedthephrase‘Thinkdifferent’,itwasaphilosophyequallysharedbyGatesatMicrosoft.‘Ourbusinessstrategyfromthebeginningwasquitedifferentthanallthecomputercompaniesthatexistedwhenwestarted,’GatestoldanaudienceatSanJoseStateUniversityin1998.‘Wedecidedtofocusjustondoingthehigh-volumesoftware,nottobuildhardwaresystems,nottodochips,justtodosoftware…’Strangeasitmightsoundinthisageofmyriadsoftwaredevelopers,suchamovetookenormouscourage,butGatesdidnotflinchforamoment.

Whilepragmaticandoccasionallyruthlessinhisbusinessdealings,hedidnotgetintothegamesimplytomakefastbucks.Likemosttrulygreatentrepreneurs,hehasalwaysworkedtoalong-termstrategy.Inhis2008PCMagazineinterview,hecontinued,‘We[Microsoft]havealongertimehorizonthananyoneelse.’Furthermore,althoughanaturalbusinessman,heregardshimselfasascientistandinnovatorfirst.In1994,forinstance,hesaidinaninterviewwithPlayboymagazine,‘Idevotemaybe10percenttobusinessthinking.Businessisn’tthatcomplicated.Iwouldn’twanttoputitonmybusinesscard.I’mascientist.’Twoyearslater,hewasquotedinRandallE.Stross’sTheMicrosoftWayassaying,‘…thefutureiswhatmatters,whichiswhyIdon’tlookbacktoooften.’

Itwashismixofdeterminationandvision(alliedwithAllen’s,too)thatsawMicrosoftestablishafootholdintheemergingindustryduringthelate1970sandearly1980s.Thepairquicklybuiltateamofninecoreemployeesandby1980thecompanyhadastaffofthirty-two.DealswiththelikesofMITS,CommodoreandAppleensuredtherewasplentyofworkforbusyhands.ThenGatesmadethedealofhislife(seehere)withthethenundisputedgiantsofthecomputerindustry,IBM.Atthetime,IBMhadaworkforceinexcessof300,000,givingaratioofapproximately10,000stafftoeachoneatMicrosoft.ItwasacommercialengagementofDavid-and-Goliathproportions,yetGateshadtheforesighttodemandtermsthatwouldseeMicrosofteventuallyoutstripIBMintermsofmarketvaluemanytimesover.

In1983,Timemagazinebrokewithitscustomofanointinga‘PersonoftheYear’byinsteadchoosingthecomputeras‘MachineoftheYear’.GatesandJobsweretheindividualsmostidentifiedwiththerevolutiontheninfullswing.AyearlaterGatesfeaturedonaTimecoverforthefirsttimeinhisownright.Twoyearsafterthat,Microsoftwentpublic,propellingGatestowardsbecomingtheyoungestbillionaireintheworld.Itwasanextraordinaryrise,fromnaval-gazingcollegedropouttoglobaliconinjustoveradecade.Yetitwasnot,perhaps,anythingbeyondwhatGateshadhopedforhimselfbackin1975,whenheandAllendiscussedtheirdreamsforthefuture,epitomizedinthequotationatthebeginningofthissection:‘acomputeroneverydeskandineveryhome’.Whathadappearedmeresci-fitosomewasrapidlyturnedintorealitybyMicrosoft.

AndstillGatesaspiredtomore.TheintroductionofthegraphicalWindowsoperating

systemin1985(imperfectasitwasinitsearlyguises)alongsidetheOfficesuiteofsoftwareapplications(includingWordforwordprocessingandExcelforspreadsheets)sawthecompanygofromstrengthtostrength.Bythemid-1990sithadsecuredutterworlddomination(atermusedadvisedly)ofthesoftwaremarketandthen,albeitalittlebelatedly,rodetheinternetwave.Suchsuccessallowedforyetmoredreaming.‘Wecanaffordtomakeafewmistakesnow,andwecan’taffordnottotry,’hewasquotedassayingbyBrentSchlenderinFortunein1995.‘…Everything’saboutbighorizonsatMicrosoftnow.But,hey,wecantacklebighorizons.We’reexpectedtotacklebighorizons.Welovebighorizons.’AtasteofhisvisionofthefuturewasreportedinthesamepublicationbyRandallStrosstwoyearslater:‘Thefutureofcomputingisthecomputerthattalks,listens,seesandlearns.’

Inmorerecentyears,Gateshasbroughtthesamelevelofvisiontohisphilanthropicactivitiesandtoaddressingthebiggestchallengesourplanetfaces.Considerhistakeonfightingclimatechangebydevelopingrenewableenergysources,asreportedbyWiredin2011:‘Ifyou’regoingforcuteness,thestuffinthehomeistheplacetogo.It’sreallykindofcooltohavesolarpanelsonyourroof.Butifyou’rereallyinterestedintheenergyproblem,it’s[massivesolarplants]inthedesert.’Thewordsofamanwhoneverdreamssmall.

MICROSOFT’SBIGDEAL

‘Iwasthemover.Iwastheguywhosaid,“Let’scalltherealworldandtrytosellsomethingtoit.”’

BILLGATES,QUOTEDBYJAMESWALLACEINHARDDRIVE,1992

In1980,GatesstruckthedealthatelevatedMicrosoftfromanemergingplayerinthesoftwareindustrytoaglobalsuper-company.Fromannualturnoverofaround$2.5million,itwouldsoonbedoingbusinessintermsofbillions.

Theopportunitycamewhentheworld’smostrecognizablenameincomputersatthetime,IBM,decidedtodipitstoeintothepersonalcomputermarket.ThereisnodoubtingthatIBMwasquitebrilliantinitstraditionalareasofexpertise:providingtechnologicalhardwareforbusinessesandlargeorganizations.Butthiswassomethingentirelydifferent.Bythe1980sthecompanywassuchagiantthatitstruggledtobequickandagile–twocharacteristicsthattheyouthfulMicrosofthadinspades.

ItwasanopensecretinSiliconValleythatIBMwasstrugglingtocreateasatisfactoryoperatingsystemforitspersonalcomputer.GatesandtheMicrosoftteamhadinevitablycomeontotheirradarandtheIBMmanagementdecidedtoapproachthemastheysoughtanout-of-housesolution.Gatesmightstillhavebeenonlyinhismid-twenties,buttheyrecognizedhimasanemergingmasterintheirsector,blessedwithanoldcommercialheadonyoungshoulders.

ItissaidthatwhenGatesfirstmetwiththesuited-and-bootedIBMteam,heturnedupinaratherdishevelledstate,sportingtrademarkslacksandacotton-knitshirt.Everyone

feltsuitablyawkwardsothatthenexttimetheymet,GatesbrokewithtraditiontowearashirtandtiewhilehiscounterpartsoptedtodressdownGatesstyle!Regardlessoftheirdisconnectwhenitcametoclothing,Gatesdidhisbesttoofferthemusefuladvice.InthefirstinstancehesuggestedIBMapproachoneofMicrosoft’sregularcommercialpartners,DigitalResearchInc.,sinceMicrosoftdidnothaveanoperatingsystemofitsowntoofferthem.

SadlyforDigitalResearch,butnotforGatesandhisteam,negotiationsfellthrough,sotheIBMexecsreturnedtopleadforhelpfromGates.Heagreedtodevelopanoperatingsystemontheirbehalf.JustaswiththeMITSdealafewyearsearlier,Gateshadpromisedsomethingnotyetinhispossession,soadoptedasuitablypragmaticapproachashesoughttokeepuphissideofthebargain.

HecontactedaSeattleprogrammerbythenameofTimPatterson,whohadrecentlycreatedaninnovativeoperatingsystemcalledQ-DOS(QuickandDirtyOperatingSystem).Gatespaidhimaone-offfeeforrightstotheproduct.Thoughestimatesdifferontheexactamount,itisthoughttohavebeenintheregionof$50,000,whichwassurelyamongthebestmoneyGateseverspent(especiallygiventhatitnowbarelyevencountsassmallchangeinhisworld).MicrosoftthensettoworkonreconfiguringQ-DOSforIBM’sneeds,andunveileditasMS-DOS(Microsoft-DiskOperatingSystem).Relieved,IBMsigneditupandmarketeditasPC-DOS.

GatesknewthepressureIBMwasunderandifhehadbeenofdifferentcharactermighthaveattemptedtoextractthegreatestpossibleimmediatefinancialbenefitfromthem.Insteadhetookaquitedifferentapproach,anchoredinhisbeliefthattherealrewardswouldcomebyengineeringthedealtoestablishadominantshareoftheoperatingsystemsmarket.Therefore,hestruckabargaininwhichIBMgotMS-DOSforarelativelylow,one-timeup-frontfee.Crucially,though,Microsoftretainedcopyrightoftheproduct.Gateswastakingapunt,buthewageredthatlotsofcompanieswouldbeginmanufacturingmachinesontheIBMmodelandwhentheydid,hewouldhaveaready-madeoperatingsystemsolutiontosellthem.Itwasacalculatedrisk,anditpaidoffhandsomely.

TheIBMPCretailedwithachoiceofthreesoftwarepackages,ofwhichPC-DOSwasone.BylettingIBMhaveitatlittleexpense,itwasalsothecheapestoftheoptions.ThiswascriticaltoGates’slong-termplan,sinceheknewultimatesuccessreliedonfirstbecomingtheIBMPCpackageofchoice.Sureenough,itslowpricepointhelpedPC-DOSassumetopspotamongconsumers.Givenitscloutinthecomputingfield,IBMinevitablyshiftedalotofunitsandsalesescalated,withMicrosoft’snamespreadingasthego-tosoftwarepeople.PC-DOSbecametheindustrystandard.Furthermore,justasGateshoped,othermanufacturers(over100ofthem)sooncameknockingtolicenceMS-DOS.Meanwhile,othermajorhardwaremanufacturersincludingSony,NECandMatsushitaaskedMicrosofttoprovidethemwiththeirownbespokesystems.Inmonetaryterms,thecompany’ssalesmorethandoubledbetween1980and1981.Beforelong,Microsoftwasfarandawaytheleadingnameintheboomingglobalsoftwarebusiness.

Innovate,Innovate,Innovate

‘Wetellpeoplethatifnoonelaughsatatleastoneoftheirideas,they’reprobablynotbeingcreativeenough.’

BILLGATES,THENEWYORKTIMES,1996

In2003,BillGatestoldNewsweek:Abreakthroughissomethingthatchangesthebehaviourofhundredsofmillionsofpeoplewhere,ifyoutookitawayfromthem,they’dsay,‘Youcan’ttakethatawayfromme.’Breakthroughsarecriticalforus.Allwegetpaidforarebreakthroughs,becausepeoplewhohaveoursoftwaretodaycankeepusingitforeverandnotpayusanotherdime.

ItisthisdeterminationtokeeppushingthetechnologicalboundariesandtobefirsttodeliverproductsthatconsumerswantthathasensuredMicrosofthasbeenatthetopofthepileforcomingonfourdecades.ButwhileGatesunderstandsaswellasanyonethefinancialincentivetoinnovate,healsoseesabiggerpicture.AshetoldMITTechnologyReviewin2010,‘Believeme,whensomebody’sintheirentrepreneurialmode–beingfanatical,inventingnewthings–thevaluethey’readdingtotheworldisphenomenal.’WhateveronemaythinkofMicrosoftasacompany,noonecandenythatitsproductshavechangedthewaytheworldworks(andplays).

Foralongtime,Gates’sreputationasahard-nosedbusinessmanratherbeliedhisstatusasaconsideredthinker,butthosewhohavekeptacloseeyeonhimhaveneverunderestimatedhisstrengthsinthatdirection.RichKarlgaard,thepublisherofForbes,oncesaid,‘Theolddistinctionbetweenideasandproducts,betweenephemeraandingots,isevaporating.’Gatesinmanywayspersonifiesthischange.

Hisloveforinnovationincomputertechnologyisgenuinelyprofound.Whenin1996theSmithsonianmagazineaskedwhichmomenthewouldchoosetorevisitinhistory,heoptedfortheinventionofthetransistorattheBellLabsin1947.Itwas,hesaid,‘akeytransitionaleventintheadventoftheinformationage’.Heisalsoamanwhogenuinelyfearsbeingovertakenbytheopposition.Inhis1994book,Showstopper!,G.PascalZacharyquotedGatesthus:‘Youalwayshavetobethinkingaboutwhoiscomingtogetyou.’(Suchafeelingiswidelysharedinthedog-eat-dogworldofSiliconValley,assuggestedbyAndrewGrove,chairmanofIntelandamanGatesmuchadmires,whochosetocallhisautobiographyOnlytheParanoidSurvive.)

Gatesknowsthatfailureisonlyamissteportwoawayandthatthereisnoshortageofpretenderstothethrone.‘Inafast-movingindustry,’hesaidinaspeechinCaliforniain1997,‘thecompaniesthataresuccessfularethosethatareabletogetoutinfrontofthekeytrendsandreallyaddvalueinthenewapplications.’Inthesameyear,hetoldBusinessweek,‘AtMicrosoft,wetakethelong-termview.Thatmeansweinvestalotinresearchanddevelopmenttohelpusunderstandfuturedirections,whilestayingcompetitiveintermsofproductdevelopmenttoday.’NathanMyhrvold,Microsoft’sthenChiefTechnologyOfficer,putitevenmorebluntly:‘Theonlywaytogetaccesstostrategictechnologyistodoityourself.’

DON’TRESTONYOURLAURELS

GatesusedthecautionarytaleofthefabledXeroxPARCtospurhimtopressonwardindevelopingnewproducts.Establishedbyacompanythatmadeitsnameinprinting,XeroxPARCpioneeredaseriesoftechnologicalbreakthroughsinthe

1970s,notleastinpersonalcomputers,butfailedtomakecommercialcapitaloutofthemandlostouttothelikesofAppleandMicrosoft.Gateswasdeterminednotto

followthesameill-fatedpath.

Therefore,Gatesspentmuchtimeandeffortcreatinganatmosphereconducivetoresearchanddevelopment.InhisinterviewfortheSmithsonianInstitutionOralandVideoHistoriesin2003,hesaid:

Everythreeyearsareimportantintermsofredefiningwhatwedo.Anycompanythatstaysthesamewillbepassedbyveryquicklyandtherearelotsoffineexamplesofthat…Iwasalwaysthinkingthattheenvironment[where]wedidproductdevelopmentshouldbeafunenvironment,alotlikeacollegecampus.

Indeed,Microsoftgarneredareputationforitsstudent-likeatmosphereandacertainlevelofacceptablegoofingamidalltheproductdevelopment.

Heisonrecordasdescribingsoftwareasablendofartistryandengineering,amixturethatrequirestimetoferment.AshetoldAdvertisingAgein1996,‘Peoplemusthavetimetothinkaboutthings.’AndinaspeechhegaveatStJohn’sCollege,Cambridge,in1997,hesaid,‘Partofthebeautyofresearchisgettingthegreatestmindstogetherwithoutanydeadline.’Certainly,updatedversionsofWindowsarenotoriousfortheirdelayedreleases,sometimesbyasmuchasacoupleofyears.ButGateshasfiercelydefendedhiscompany’srighttoholdbackaproductuntilitismarket-ready.‘Ifyoutakequalityasagiven,’hetoldInfoWorldin1994,‘youarealwaysgoingtohavesomeuncertaintyinthedate…thedateisnotthefixedthingforanyoftheseproducts.Period.It’snot.’

Hehasalsotraditionallyfavouredcreatingsmallteamstodevelopideas,tellingtheFinancialTimesin1996,‘Sizeworksagainstexcellence.Evenifweareabigcompany,wecannotthinklikeabigcompanyorwearedead.’Theidealisateamnobiggerthanthirty-fivepeopletoworkonanygivenproject,amodelheattemptedtoadheretoevenasthecompany’sexpansionwentintooverdrive.IfMicrosoftwasonebigteam,hecravedmini-organizationsallfunctioningwithinthelargerbody.‘Smallteamscancommunicateeffectivelyandaren’tencumberedbyabigstructureslowingthemdown,’hewasreportedassayinginIndustryWeekin1995.Inaddition,hehaspromotedanapproachtoresearchanddevelopmentthatputsthecustomers’needsanddesiresatitsheartandwhichseekselegantlysimplesolutions.‘Thebarriertochangeisnottoolittlecaring;itistoomuchcomplexity,’hesaidinhiscommencementaddressatHarvardin2007.

Certainly,theMicrosoftLabshavelargelyavoidedthedisappointmentsthatafflictedXeroxPARC,aplacewhereideaswerefostered,bloomedandthenexploitedbyothercompanies.Boastingarosterofproductsasera-definingasMS-DOS,Windows,Office,InternetExplorerandtheXbox,Microsofthasanadmirabletrackrecordinstayingaheadofthecurveandcapitalizingonitachievements.AsquotedbyGeorgeTanineczinthesameIndustryWeekinterviewin1995,Gatesreflected,‘TheentrepreneurialmindsetcontinuestothriveatMicrosoftbecauseoneofourmajorgoalsistoreinventourselves–wehavetomakesurethatwearetheonesreplacingourproductinsteadofsomeoneelse.’

STRESS-TESTYOURIDEAS

‘ConflictisattheheartofeverysignificantMicrosoftdecision.Thisisacompanyconstantlyatwar,notonlywithoutsiders,butalsowithitself.’

G.PASCALZACHARYINSHOWSTOPPER!,1994

Giventhatideasareattheheartofhisbusinessandhisworldview,Gatestreatsthemprettyseriously.Whenagoodoneappearstocomealong,helikestotestitout,stretchingittobreakingpoint.Onlythosethatspringbackintoshapeareaccepted.Heisamanwhosaysthatagoodmanagershouldneverhavetorevisitadecision,becausetheywillhavedonetheirhomeworkandknowitwastherightcallfirsttimeround(seehere).Soonceanideahasgainedhisacceptance,youcanbesureGatesbelievesinitandwillfightforit.

Nonetheless,gettingtothatstagecanbeanarduousprocess.StoriesarelegionofGatestakingapartasuggestionputforwardbysomehopefulcolleague,withlittleenergyexpendedonsavingtheotherperson’sfeelings.Heisknowntoshoutandrantinmeetings,effortlesslydishingoutcausticput-downsandneverafraidtoengageinaconfrontation–allintheinterestsoftestingahypothesis,ofcourse.HeisnothingshortofDarwinianinhisapproach,believingthatonlythestrongestideasdeservetoandwillsurvive.

Heisknowninparticularforhisrefrainthatanideais‘thedumbest[insertoptionalexpletivehere]thingIeverheard’–alinedestinedtoundermineeventhehardiestandmostself-confidentofsouls.ButGatesgenuinelybelievesthatthisisavalidwayofproofinganidea,ratherthananaffronttotheindividualwhoproposeditinthefirstplace.AshetoldPlayboyin1994:

I’venevercriticizedaperson.Ihavecriticizedideas.IfIthinksomething’sawasteoftimeorinappropriateIdon’twaittopointitout.Isayitrightaway.It’srealtime.Soyoumighthearmesay‘That’sthedumbestideaIhaveeverheard’manytimesduringameeting.

ManyhavefallenvictimtoaGatestongue-lashing,andafewhaveneverreallyrecovered,butheisamanwhorespectsbeingchallenged,too.Whiletherearethosewhohaveaccusedhimofabullyingdemeanour,bythesametokenherespectsthosewhostanduptohimanddefendtheircorner.Ina1990staffvideo,aMicrosoftprogrammerbythenameofChrisPetersadvised:‘NeverhideanythingfromBillbecausehe’ssogoodatknowingeverything.Butyoushouldbefirm,andyoushouldyellback…Butsayno.Billrespectsno.’

Gatesisalsowillingtoadmitthatsometimeshegetsitwrong.NathanMyhrvold–whoregularlytookpartinhigh-levelbrainstormswithhim–wasalwaysimpressedbyhisboss’sabilitytoadmitasmuch.That,though,isallpartoftheGatesmethodbywhichhehopesonlytheverybestideaswillmakeitthrough.Ifitisastrategythatisnotalwayspretty,ithasbeenundeniablyeffective.

GatesandIntellectualProperty

‘Ourgreatsuccessescomewithanapproachofembracinganythingthat’spopularandthencomingalongwithextensions…toembraceeverythingthat’soutthereandmakeit

easyforsystemstoco-exist.’BILLGATES,1997

Theideasbusiness(especiallyoneasfluidandrapidlyevolvingasthesoftwaretrade)raisesmanythornyquestionsconcerningthelawsofintellectualproperty(IP).ItisoneareainwhichitispossibletodetectinconsistencyinGates’sapproach,largelydependingonwhoseintellectualpropertyisinquestion.

AccordingtotheWorldIntellectualPropertyOrganization,IPrefersto‘thecreationsofthemind,suchasinventions;literaryandartisticworks;designs;andsymbols,namesandimagesusedincommerce’.Tothewiderworld,itisallthatstufflegallyprotectedthroughpatents,copyrightandtrademarks,oftendenotedwithlittlesymbolsonmerchandise.Butestablishingexactlywhatconstitutesintellectualpropertyisatrickybusiness,andonewithhugefinancialimplications.Asaresult,BillGatesandtheMicrosoftlegalteamhavehardlybeenstrangersinthelawcourtsofAmericaandbeyondovertheyears.Theyhavebeeninvolvedinnumerouscaseswheretheystoodaccusedofmisappropriatingintellectualproperty,justastheyhaveaccusedothersofdoingthesame.

Ontheonehand,Gates’searlycareerinvolvedhimlegitimatelydevelopingandextendingotherpeople’screations.ThedealwithMITS,forinstance,sawhimcreateaproductthatexploitedtheextantBASIClanguage,andhethenmodifiedanexistingoperatingsystemforIBM–inbothcases,quitelegally.HehasalwaysbeenadamantthatMicrosofthasneverstolenbutinsteadishappytoembracethatwhichalreadyexistsandworktomakeitbetter.

FewserioustechnologyhistoriansdisputethefactthatSiliconValleywasbornoutofafairlyliberalsharingofideas,ameltingpotinwhichideasevolved.Insuchaclimate,inevitablytherearethosewhofeeltheymissedoutontheirdeservedcreditforinnovatingsomethingentirelynew.Thevictorwasoftentheonewhocouldfinesseanideaandgetittomarketfirst.AsGatesnotedinaninternalMicrosoftmemoin1991:‘Ifpeoplehadunderstoodhowpatentswouldbegrantedwhenmostoftoday’sideaswereinvented,andhadtakenoutpatents,theindustrywouldbeatacompletestandstilltoday.’Inotherwords,ifdevelopershadbeenwilieraboutpatentingfromthestart,therewouldneverhavebeentheexchangeofideasthatallowedtheindustrytoevolveasquicklyasitdid.

YetthereisanothersidetoGatesthatisfiercelyprotectiveofIP.Whenjuststartingoutinthebusiness,hewroteanimpassionedletterthatappearedinapopularhobbyists’magazine,criticizingthoseamateurenthusiastswhoillegallycopiedMicrosoftsoftware.Hisargumentwassimple:thatdevelopershadtherighttobepaidfortheirwork.Inhiswordsatthetime:‘Asthemajorityofhobbyistsmustbeaware,mostofyoustealyoursoftware.Hardwaremustbepaidfor,butsoftwareissomethingtoshare.Whocaresifthepeoplewhoworkedonitgetpaid?’Iftheywereindeeddeniedthatright,akeyimperativetoseriousdevelopmentwoulddisappear.Inshort,everyonewouldloseout.

Certainly,Microsofthascometofiercelyembracetheworldofpatents,pursuingthoseitbelievestobeinviolationofthelaw.In2004,SteveBallmerallegedthattheLinuxoperatingsystembreachedsome235Microsoftpatentsalone.PatentshavethusbecomeabigpartoftheMicrosoftbusiness,generatingbillionsinrevenueeachyearandkeepingawholedivisionoccupied.Meanwhile,thecompanyarguesthatpropermanagementofpatentsisessentialtofosteringtechnologicalbreakthroughs.

Gateshasadoptedasimilarapproachinhisphilanthropicactivities,arguingthatIPlaw

hasacrucialroletoplayinthedevelopmentanddistributionofinnovativesolutionstotheworld’sbiggestproblems.Why,forinstance,shouldadrugcompanyspendbigondevelopingacureforadiseaserampantinsub-SaharanAfricaifitcannotexpectasensiblereturnonitsinvestment?

PATENTLIKEGATES

Remarkably,Microsoftreceiveditsfirstpatentonlyin1986andby1990hadlessthantentoitsname.However,theinternalmemosentroundin1991seemstohavemarkedaseachangeinapproach.Fearfulthat‘somelargecompanywillpatentsomeobviousthingrelatedtointerface,objectorientation,algorithm,applicationextensionorothercrucialtechnique’andthusreapyearsofresultantprofit,Gates’ssolutionwas‘patentexchangeswithlargecompaniesandpatentingasmuchaswecan’.By2009,Microsofthadnotchedupitsten-thousandthpatent,andfilessomewhereinthe

regionof2,500newapplicationseachyear.

Suchanapproachdoesnotalwaysplaywellwithhiscritics,particularlygiventhatitisreportedheoncecommented:‘Intellectualpropertyhastheshelflifeofabanana.’Furthermore,thereareplentyofpeoplewillingtoaccuseGatesofbeinglessconcernedwithIPthatdoesnotbelongtohim.

Forinstance,in1997theWallStreetJournalquotedDanielBricklin,seniortechnologydeveloperwithTrellixCorp,aboutworkingwithMicrosoft:‘It’sveryscarytobedancingwithanelephant.Theylookatwhatyou’redoingandborrowwhatevertheycan.’

DoubtlessthemostfamousIPcasethatGateshasfought(andwon)pittedhimagainstSteveJobsandApple.AfterMicrosoftreleasedWindows,Applesuedthecompany,allegingGates’steamhadstolenthe‘lookandfeel’ofApple’sgraphicaluserinterfacemadepopularbythesuccessoftheMac.ThecasedraggedonforseveralyearsbeforethecourtsfoundforMicrosoftin1994andraisedmanyinterestingquestionsastowhatconstitutesintellectualproperty,aswellaswhatcountsastheftandwhatislegitimatedevelopmentofexistingtechnology.Gateswasparticularlycandidonthesubject,givinganodtothedebtthatbothcompaniesowedtotheresearchworkdoneatXeroxPARC.InanowlegendaryexchangeatApple’sofficesdescribedbyWalterIsaacsoninhis2011biographyofJobs,theApplebossyelledatGates,‘You’rerippingusoff!Itrustedyouandnowyou’restealingfromus!’Gatescoollyfiredback,‘Well,Steve,Ithinkthere’smorethanonewayoflookingatit.IthinkwebothhadthisrichneighbournamedXeroxandIbrokeintohishousetostealtheTVsetandfoundoutthatyouhadalreadystolenit.’

LeadfromtheFront

‘Iwouldn’tcall“sensitive”abirthattributeofMicrosoft,orevenofMicrosoft’sseniormanagement.’

STEVEBALLMER,REPORTEDINTHEWALLSTREETJOURNAL,1998

Lookingliketheeternalschoolboyandwithavocaltoneanddeliverynotespeciallysuitedtorousingoratory,Gatesisnottheprototypeofthegreatleader.Withapenchantforusingslangexclamationssuchas‘Supercool!’,heisunlikelytoeverbemistakenforaWinstonChurchill.Yet,inmanywayshehasevolvedintooneofthemostsignificantleadersofthemodernage.Hehasshownintwodisparatefields(softwareandphilanthropy)thathecombinescreativethinking,pragmatism,organizationandtheabilitytoinspirethosearoundhim.

Ashasalreadybeennoted,GatesgarneredareputationforfrequentabrasivenesswhendealingwithstaffandcolleaguesatMicrosoft.Aswellasthecasualinsults,interruptionsandcoruscatingsarcasm,hewouldbreakoutintoboutsofapparentlyuncontrolledshoutingandscreaming(althoughonesuspectsthatheknewjustwhathewasdoing).Thentherewashisdisconcertinghabitofrockingwhiledeepinthoughtandhistendencytosimplystaredownquestionshedidnotwanttoanswer.Manyofhisemployeesgrewtofearthesummonstomeettheirboss.HehimselfwouldtellNewsweekin2000,shortlyafterhehadsteppeddownasCEO,‘Itwasaninhumanjob.Itmakesinfinitedemandsonyou.’

Yetbeingagoodcompanybosshasneverbeenaboutbeingthemostpopularguyintheoffice.Despitebeingsometimesdifficulttodealwith(afactattestedtobytheoccasionallystrainedrelationshehadevenwithseniorfigureslikeAllenandBallmer),hehascommandedgreatloyaltyanddeliveredundeniableresults.Contrarytoinitialappearances,hepossessesaplethoraofleadershipattributesthatcomenaturallytohim.AsherevealedtotheSmithsonianInstitutionOralandVideoHistoriesprojectin2003,hisdesiretoleadfromthefrontwasthereeveninhisschooldays.ReferringtotheoccasionwhentheLakesideProgrammershadthrownhimoutandtheninvitedhimtoreturn,heexplained,‘InhighschoolItoldtheotherprogrammers,“Look,ifyouwantmetocomebackyouhavetoletmebeincharge.Butthisisadangerousthing,becauseifyouputmeinchargethistime,I’mgoingtowanttobeinchargeforeverafter.”’

Althoughthedesiretoleadisindicativeofacertainegotism,Gatesalsounderstandsthatatrulygreatleadernurturesanorganizationthatcanprosperalmostindependentlyofitschief.Atthe2006pressconferenceinwhichheannouncedhewasrelinquishinghisfull-timepostwithMicrosoft,hesaid,‘Theworldhashadatendencytofocusadisproportionateamountofattentiononme.’LeadershipforGatesisthuslessaboutself-aggrandizementthanaboutbeinginapositiontoseethingsaredonetohisexactingstandards.

Hehasanenviableabilitytokeepfocusedonthetaskathandandhasneverbeenshytoputinthetimeandefforttoguaranteehisbusinessesoperateashewants.Asidefromhiswillingnesstoworklonghours,heapproacheshisjobinahighlymethodicalway.Forinstance,herarelyattendsameetingwithoutbeingfullybriefedonalltheissuestobecovered.In1996hecommentedinTheNewYorkTimes,‘WhenIgotoameeting,Ikeepspecificobjectivesinmind.Thereisn’tmuchsmalltalk,especiallyifI’mwithcolleaguesIknowwell.’Itishisfirmbeliefthatabitoflegworkearlyonsavesunnecessarylabourlater.Oncehehasstrippedawaythenicetiestogettotheheartofamatter,heisconfidentinhisabilitytomaketherightcallatthefirsttimeofasking.

‘Don’tmakethesamedecisiontwice.Spendtimeandthoughttomakeasoliddecisionthefirsttimesothatyoudon’trevisittheissueunnecessarily.’

BILLGATES,1997

Healsorunstightshipsinwhichdecisionsarepredicatedonacombinationofevidenceandinstinct.Everymemberofstaffisexpectedtobeabletojustifywhyandhowtheydowhattheydo,whilenewideasareputundermicroscopicscrutiny.Yet,healsoallowshimselfthefreedomtotrusthisgut.AshetoldTimein1997,‘Idon’tthinkthatIQisasfungibleasIusedto.Tosucceed,youalsohavetoknowhowtomakechoicesandhowtothinkmorebroadly.’Itwasasubjectherevisitedinhiswidelyreported2008speechoncreativecapitalism:‘Rationalityonlygoessofar.’

IfallofthissoundslikeGatestakeshisleadershiprolesveryseriously,itshouldalsoberememberedthatheputsahighvalueonfun,bothforhimselfandthosewithwhomheworks.HissporadiclapsesintoboutsofjuvenilegoofingaroundoncepromptedEdRoberts(theMITSchief)toobserve:‘He’skindoflikeElvisPresley;henevergottogrowup.’ItistruethathepossessesacertainPeterPan-ishquality,andnotjustinappearance.Heretainsawide-eyedbeliefthatanythingispossibleandayouthfulfaiththatheisthepersontomakeitso.InaspeechatColumbiaUniversitydeliveredin2009,hesaid:

Therebecomeafewmagicmomentswhereyouhavetohaveconfidenceinyourself.Youhaveafewmomentslikethatwheretrustingyourselfandsayingyes,thiscancometogether–youhavetoseizeonthosebecausenotmanycomealong.

Furthermore,yougettherealsensethathewillnotgivetimetolaboursthatdon’tfirehisenthusiasm.TakehiscommenttoTimeinJanuary1997abouthiswork:‘Istillfeelthisissuperfun.’ButperhapshesaiditbestinapieceforTheNewYorkTimesayearearlier:

Eventoday,whatinterestsmeisn’tmakingmoneyperse.IfIhadtochoosebetweenmyjobandhavinggreatwealth,I’dchoosethejob.It’samuchbiggerthrilltoleadateamofthousandsoftalented,brightpeoplethanitistohaveabigbankaccount.

HiscontributionasCEOwassummedupin1998byAlanBrew,abrandingconsultantquotedintheWallStreetJournal:‘BillGatesisMicrosoft…Thecharacterofthewholecompanyisclonedintheformofthiscombative,young,arrogantleader.’

LearnfromYourMistakes

‘Yourmostunhappycustomersareyourgreatestsourceoflearning.’BILLGATES,BUSINESS@THESPEEDOFTHOUGHT,1999

Itisnotablethatmanyoftheworld’sgreatestsportsmenreportthatthesatisfactiontheygetfromtheirgreatestvictoriesisrelativelyshort-lived.Theirdesiretogoontoscalenewheightsdependslessonrecapturingthejoyoftriumphthanonavoidingfailure.ThisisatraitthatGatesshares.Revellinginsuccessisnotforhim.Instead,hisfaceisalwaysturnedtowardsthenextchallenge.Asheputitin1995’sTheRoadAhead:‘Successisalousyteacher.Itseducessmartpeopleintothinkingtheycan’tlose.’

ItwasatopichehaddiscussedayearearlierinaninterviewwithPlayboy.Thenhehadobserved,‘Fearshouldguideyou,butitshouldbelatent.Ihavesomelatentfear.Iconsiderfailureonaregularbasis.’Itistheever-presentconcernthatoneisabouttobefoundoutthathasdrivenhimtocastanultra-criticaleyeoverachievementsthatmostmeremortalswouldtakeasevidenceofsublimeexcellence.Inhis1999investigationintomodernentrepreneurship,MastersofEnterprise,H.W.BrandsquotedGatesthus:‘I’vealwaysbeenhardcoreaboutlookingatwhatwedidwrong.We’renotknownforreflectingbackonthethingsthatwentwell.Wecanbeprettybrutalaboutthepartsthatdon’tdowell.’

Despitecreatingtheworld’sleadingsoftwarefirmandbecomingtherichestmanintheworld,Gatesstillhasafewmistakestomullover.IntheearlystagesofMicrosoft’sgrowth,hissinglebiggestregretwasallowingaUtah-basedsoftwarebusiness,Novell,tostealamarchinthethenemergingfieldoflocalareanetworks(LANs).LANsarenetworksintowhichseveralcomputersmaybehookedupwithinadefinedgeographicalarea.Inreplacingthepreviouslydominantmainframecomputermodel,theywerevitalinbirthingthePCage.AndGateshatedmissingthatparticularboat.

AnothernotablefailurewasMicrosoftBob,ananimatedcharacterthecompanyreleasedinthelate1990stoprovideuserhelp.Unfortunately,itwasapieceofsoftwarethatrequiredsuchhigh-spechardwareonwhichtorunthatitoftenprovedmoreahindrancethanahelpandfailedtowinmanyfans.Onthatoccasion,Gatesconcludedthatthecompanyhadoverdeliveredbeyondwhatthemarketwasreadyfor.(Fortherecord,itistobehopedhedidnotgototownberatingtheproject’smanager,whojusthappenedtobeoneMelindaFrench–thefutureMrsGates.)

ButforBillGates,everyfailureisultimatelyanopportunitytobebetternexttime.Asheputitin1998:

Thereisatendencyincompaniestoletgoodnewstravelfast.Oh,wejustwonthisaccount.Oh,thingswentsowell.Butthethingaboutgoodnewsis,it’sgenerallynotactionable…Badnews,ontheotherhand,isactionable…Thesooneryougetthebadnews,thebetteroffyou’regoingtobe,inordertokindofabsorbit,tochangeyourproductplan,togobackandtalktothepeople,reallydigintoit.

THEINTERNET:THEONETHATNEARLYGOTAWAY

‘Sometimeswedogettakenbysurprise.Forexample,whentheinternetcamealong,wehaditasafifthorsixthpriority…’

BILLGATES,1998

Bytheearly2000s,Microsoft’sInternetExplorerwebbrowserhadsecuredvirtualmarketdominance.AlthoughnewarrivalssuchasFirefoxandGoogleChromehaveclaimedsomeground,itremainsarguablythebest-knownbrowserofthemall.Yetthingsmighthaveturnedoutverydifferently,becauseforashortwhileinthemid-1990s,theWorldWideWeblookedlikeitmightbethegreatbigpartythatMicrosoftwaslatefor.Itservesasastorythatontheonehandillustrateshowcomplacencycanstrikeanybody,andontheotherepitomizesGates’sknackofcominggoodwhenitreallymatters.

THEORIGINSOFTHEINTERNET

Theinternetasweknowittodayreallyhasitsoriginsinthe1960s,andinparticularintheUSDepartmentofDefense’sAdvancedResearchProjectsAgency’s

ARPANETnetwork,whichwasusedtoconnectstaffatvariousresearchfacilities.Itwasnot,however,asystemintendedformassuse.Atatimewhenthedreamofafullyfunctioningpersonalcomputerwasstillunrealized,theideaofpluggingthegeneralpopulaceintoaglobalinformationhighwaywaslittlemorethanscience

fiction.

EvenasthelikesofMicrosofthelpedbringtofruitionitsvisionofacomputeroneverydesk,developmentofinterconnectednetworksoutsideofseriouslylarge(andrich)organizationslaggedbehind.However,in1989aseismicshiftoccurredwhenTimBerners-Lee,aBritishcomputerscientistandonceanemployeeatCERN(theEuropeanOrganizationforNuclearResearch),deliveredaproposalforasystemoflinked‘hypertext’documentsthatcouldbeviewedusingabrowser.WithintwoyearstheWorldWideWebwasaliveandkicking,andtheinternetrevolutionwasuponus.

Atthistime,Microsoftwasstilltransitioningfromacompanywithafirmfocusonprovidingpracticalcomputingsolutionsforthebusinessworldtoonegeareduptoserveprivateindividuals.Thatmaypartlyexplainwhyitwascaughtoffguardbythesuddenriseoftheinternetasaplaythingforbillionsaroundtheworld,asopposedtosimplyatoolforlargeinstitutions.Whateverthereason,theMicrosoftdevelopersdidnothavetheireyeonthisparticularballuntil,in1995,Gatesrealizeditwasanoversightthatmightkillthem.

InMaythatyear,hesentstaffamemoentitled‘TheInternetTidalWave’.Init,hedescribedtheinternetas‘themostimportantsingledevelopmenttocomealongsincetheIBMPCwasintroducedin1981’.Microsoftsimplycouldnotaffordtoignoreit.‘TheInternetisatidalwave,’hewenton.‘Itchangestherules.Itisanincredibleopportunityaswellasincrediblechallenge.’Hedidagoodjobofhidinghispanic.Acoupleofyearslaterhewouldadmitthatthingshadreached‘feverpitch’inthecompany,buttooksolacethatthecrisiswas,albeitbelatedly,acknowledged–evidence,hesaid,thatMicrosoft’snervoussystemwasaliveandwell.

WithGatespushinghisdevelopersashardasever,withinafewmonthsthecompanyannouncedthearrivalofitsownbrowser,InternetExplorer(IE).BybundlingitwithWindows,IEbecamethemostwidelyusedbrowserontheplanet,eclipsingthehitherto

giantsofthearenasuchasNetscape.Tosome,Microsoftlookedlikenothinglessthanaschoolyardbully,usingitscorporatemuscletoelbowitsrivalsoutoftheway.SuchwastherobustnessofitsapproachthattheDepartmentofJusticelauncheditsanti-trustinvestigation.Butintheend,Microsoftemergedunscathedbarafewheftyfines,whichitsrevenuescomfortablycovered.Whereithadlookedforawhileliketheinternetphenomenonwouldexplodewithoutthem,Gatesrealizedhisoversightjustintimeandwasabletothrusthisbusinesstotheforefrontoftherevolution.Gates’swordsinaspeechhegaveinWashingtonin1997areinstructive.Describingthe

internetboom,hesaid,‘TheclosestthingtoitIcanthinkofistheGoldRushwhereeverybodywentofftofindtheirfortune.Andpeoplewerefairlysurprisedathowitallturnedout.’

KeepTrackoftheCompetition

‘Whetherit’sGoogleorAppleorfreesoftware,we’vegotsomefantasticcompetitorsanditkeepsusonourtoes.’

BILLGATES,2010

Thereisnodoubtthattheultra-competitivestreakofGates’spersonalityhelpeddrivethesuccessofMicrosoft.Whethercompetinginaraceinthemini-Olympicsofhischildhood,playingagameofchessagainstayoungPaulAllenorfacingoffagainstSteveJobsoverthedevelopmentofgraphicaluserinterfaces,Gateshasonlyeverbeencontenttoemergethewinner.Andlikeanygreatfighter,hestrivestomakesurehisowngameisuptoscratchwhilelookingforweaknessesinhisopponent.

NotthatGateshaseverbeenfoolishenoughtothinkthathecan(orindeedneedsto)vanquisheveryrivalinsight.Hehasalsohadthegoodsensetoseekoutnaturalalliesalongtheway.HeapproachedMITSatatimewhentheyofferedhimjustthefootuptheladderthatheneeded,andwhenitcametoreallyhittingthebigtime,hetiedhiscolourstothemastoftheacknowledgedindustryleadersoftheday,IBM.HeevenjoinedforceswithApplewhenitsuitedhispurposes,goingsofarastohelpthemoutinseveralhoursofneed.AshewroteinTheRoadAheadin1995:‘Oursuccesshasreallybeenbasedonpartnershipsfromtheverybeginning.’

Gatesgraspedfromtheoutsetthatratherthanattemptingtocleartheplayingfieldofallcompetition,hewouldbebetterservedsimplybykeepingacloseandcriticaleyeonit.Thatwayhecouldfathomwhenanalliancewouldbringbenefitsand,evenmoreimportantly,whenhisrivalswerestealingapotentialmarch.Itisthenthatthedemonwannabechessmasterhasemerged,asGates’sbrainwhirrstofigureouthowtoshutdowntheopposition’sadvantageandregaintheupperhandhimself.AshetoldCNNin2008:‘Allgoodcapitalisticcompaniesgetupeverymorningandthink,“Howcanwemakeabetterproduct?Whataretheydoingwell?We’regoingtomakeitcheaper,better,simpler,faster.”’

Inaddition,suchishiscriticaleyethathebelievesthathecannotonlyreplicatethestrengthsofhisrivals,butcanspotpotentialadvantagesthattheythemselvesareyettorealizetheyhave.AshewroteinhiscolumnforTheNewYorkTimesin1996:

Wefocusonwhatothercompaniesdowellasopposedtowhattheydopoorly.Wedon’tdismissacompanyasunimportantjustbecausealotofthingsaboutitmaybelessthanperfect.Thecompanymaybedoingsomethingimportant;itmaynotevenknowthatitisimportant.

Gateshasalsoconsistentlybackedhisvisionoverthoseofhiscommercialrivals.Wheresomepeoplegetnervousiftheirideasseemtoodifferenttoeverybodyelse’s,Gatesrevelsinthem.Forhim,thereisrarelytheself-doubtthatwondersifanideaunsharedissomehowintrinsicallyflawed.Likethegreatestinventorsandentrepreneurs,itisthesearchforthebrainwavethathaseludedeveryoneelsethatdriveshimon.Speakingin1995,heputMicrosoft’ssuccessdowntonothingless:‘Wehadideasthatthegiantsofthetimemissed.’

Thislastcomment,though,isindicativeofoneblindspotwhenitcomestocompetition:Gates–likeJobsandcountlessotherself-madesuccesses–strugglestorecognizethatheandthecompanyhecreatedgained‘giant’statusthemselveslongago.Assuch,behaviourthatmighthaveappearedfeistyandcourageouswhenhewasa‘David’settingoutonhiscareerpathcanlookliketheactionsofabullywhenexecutedbya‘Goliath’.Asheexplainedin1995,‘Theoutsideperceptionandinsideperceptionof

Microsoftaresodifferent.TheviewofMicrosoftinsideMicrosoftisalwayskindofanunderdogthing.’

AlthoughexpressingaviewthatratherclashedwiththerealityofMicrosoft’salreadywell-establisheddominance,itopensawindowontohowGateshasseenhimselfformuchofhisadultlife:asthepluckylittleguytakingonthebigboysanddoingwhateverisneededtosucceed.

MICROSOFTvs.APPLE

‘They[Microsoft]justhavenotaste.Idon’tmeanthatinasmallway.Imeanthatinabigway,inthesensethattheydon’tthinkoforiginalideasandtheydon’tbring

muchcultureintotheirproducts.’STEVEJOBS,1996

OfallthecommercialrivalriesinBillGates’scareer,nonehasbeenasutterlydivertingasthatwhichexistedwithSteveJobs.Indeed,itisfairtosaythatitisoneofthemostintriguingmatch-upsnotonlyofthetechnologicalrevolutionofthelastfortyyears,butinallthehistoryofcommerce.Initsownway,ithasbeenepoch-defining.

Inkeyrespects,thetwowereverysimilar.BothgoodAmericanboysfromrelativelycomfortablebackgroundswhoshowedearlyprecocioustalent,theyeachdroppedoutofcollegetofollowtheirdreamsofmakingitbiginthesameemergingbusinesssector.Inaddition,bothlikedtobeincharge,commandingreputationsforspikinessandruthlessness,whiledemandingthehigheststandardsfromthosewhoworkedwiththem.Andboth,ofcourse,builttheirbusinessesintoglobalpowerhouses,earningunimaginablepersonalfortunesintheprocess.

Perhapsitwasthefactthattheycouldsensesomuchofthemselvesintheother(alongwiththeirmutualcompetitiveness)thatmadetheirpersonalrelationshipsofiery.Jobshardlyhelpedmattersbycarefullymanipulatinghisimagesothatforalongtimehesethimselfupasanappealing‘outsider’figureagainstGates’sestablishmentgeek.Yet,forallthattheyclashed,thetwohadacertainchemistryandevolvedafriendshipthatwasgenuine,ifgrudging.Itisoftensaidthatoneshouldkeepyourfriendscloseandyourenemiescloser.Inthiscase,though,thatdoesnotseemsufficienttoexplainquitewhatdrewthetwotoeachother.Doubtless,theycametohaverealrespectforwhattheotherhadachieved.

Admittedly,thereweresomebasicphilosophicaldifferencestoo,althoughtheseshouldnotbeoverstated.WhileJobsalwayspromotedhismachinesastoolsforprivateindividualsintenton‘thinkingdifferent’,Gatesinitiallyfocusedontheneedsofbusiness.AndwhereJobshadaneyeforaesthetics,Gates’sstrengthslaymorewithfunctionality.Yet,whatevertheirdifferencesinapproach,theyhadaninstinctiveunderstandingthatthepresenceofonemadetheotherevenstronger.Theymighthavebeengoingaftersomeofthesamemarket,butifeitheroneoftheircompaniesdidnotexist,thatmarketitselfwouldhavebeenexponentiallysmaller.Thecomputerbusinesswasplentybigenoughto

accommodatethemboth.

‘I’dgivealottohaveSteve’staste.’BILLGATESONSTEVEJOBS,2007

Ofthetwo,Jobswasbyfarthemoreantagonistic,atleastinpublic–asthequoteatthestartofthissectionindicates.IftherewasanopportunitytoattackMicrosoftasacompanyandGatesasanindividual,hefounditdifficulttoresist.Onanotheroccasion,forinstance,hetoldaninterviewerthatGateswouldhavebeena‘broader’guy‘ifhehaddroppedacidonceorgoneofftoanashramwhenhewasyounger’;itreallywasplaygroundstuff.

Itisperhapsallthemoresurprising,then,thatthetwobusinessesworkedascloselytogetherastheydid.Furthermore,toanindependenteyeitlookedverymuchlikeAppleneededMicrosoftmorethantheotherwayaround.TakeasanexamplethedealJobsstruckin1982wherebyMicrosoftagreedtocreateaspreadsheet,databaseandgraphicsprogramfortheMac.Gatescouldnothavebeenmoremagnanimous,declaringinaspeechin1984:

Tocreateanewstandard,ittakessomethingthat’snotjustalittlebitdifferent;[but]somethingthat’sreallynewandreallycapturespeople’simagination.AndtheMacintosh–ofallthemachinesI’veseen–istheonlyonethatmeetsthatstandard.

AsMicrosoftsurgedaheadofAppleintermsofcommercialsuccess,therelationshipbetweenthetwogreatfigureheadsdeteriorated.ItmusthavebeenaparticularlydifficultsituationforJobstohandle,sincehealsoknewthatApplewouldfacearealstrugglewithoutMicrosoftsoftwaresuchasWordandExcel,whereasMicrosoftcouldtakecomfortinthenotionthatwereAppletodisappearovernight,anothercomputermanufacturerwouldtakeitsplaceandnodoubtwanttorunMicrosoftproductstoo.

Jobs’sstrategywas,characteristically,togoontheattack.ThetacticwasbestepitomizedbyhisdecisiontosuehiscounterpartonchargesofrippingofftheMac’sgraphicaluserinterfaceintheproductionofWindows.Thatthecasewasallbutthrownoutofcourthardlywarmedrelations,andbothAppleandMicrosoftkeptplentyoflawyersincloverformanyyearsastheyarm-wrestledoverpatentsandcopyright.

BythetimeJobsreturnedtoApplein1997forasecondtermasboss,havingbeenunceremoniouslydumpedtwelveyearsearlier,bothheandGateshadmellowed.That,itmightbesuggested,iswhatageandafewbillionbucksinthebankcandoforyou.Atthetime,Applewasbutashadowofthecutting-edgecompanyithadbeenduringJobs’sfirsttenure,withmuchoftheindustryconvincedthatitsbestdayswerebehindit.Withhisastutegraspofcommercialreality,Jobsfoundthehumilitytostrikeanotherbargainwithhisoldnemesis.

Microsoftboughtsome$150millionofApplestockandagreedtokeepproducingsoftwareforitscomputers.NotonlydidthisgiveAppleafightingchanceofre-

establishingitselfasamajorplayer,butMicrosoft’sinvestmentwasdeemedaverypublicshowofconfidencebythebiggestnameintheglobalcomputingbusiness.Jobs,asever,hadnointentionofunderstatingitsimportance:‘Ithinktheworld’sabetterplaceforit.’Nonetheless,whenagiantimageofGateswasbeamedinto1997’sMacworldconvention(thecompany’sgiantannualtradeshow),Applefanaticsbegananimprompturoundofbooing.ItwasevidenceofthepoisonthatJobshadspreadagainsthisrivalovertheyears,andatthatmomentaratherembarrassingexampleofbitingthehandthatfeeds.

AsGates’sretorttoJobsabouttheirburglingofXeroxPARCshowed,theMicrosoftmaestrowasnopushoverinprivateanditmaybeassumedhegaveasgoodashegotinthefaceofJobs’ssporadicantagonism.Yethecontinuedtomakepublicutterancesthatcasthisoppositenumberinagoodlight.Forinstance,inhisspeechatSanJoseUniversityin1998,hegraciouslynoted:

Intermsofaninspirationalleader,SteveJobsisreallythebestI’veevermet.Imean,hecanmakepeoplework,youknow,morethantheyshould.He’sgottobecareful,it’ssuchastrongpower,hecanoveruseit.He’safirst-classmagician,I’mkindofasecond-classmagician.

In2007,thetwoevensharedapublicstageamidanotablychummyatmosphereattheWallStreetJournal’sD:AllThingsDigitalconference.Atoncecomplimentaryandmindfuloftheircontrastingapproaches,Gatessaid,‘Thewayhegoesaboutthingsisjustdifferent,andIthinkit’smagical.’AndwhenJobswasnearingtheendofhislife–hediedin2011afteralongbattlewithcancer,agedjustfifty-six–Gatesvisitedhimathishome,wheretheyspenthourschattinginformallyacrossabroadrangeofsubjectsandreminiscingabouttheirroller-coastercareers.Tohavebeenaflyonthewalltolistentotheirconversationwouldnodoubthavebeenfascinating.

‘SteveandIfirstmetnearlythirtyyearsago,andhavebeencolleagues,competitorsandfriendsoverthecourseofmorethanhalfourlives.Theworldrarelysees

someonewhohashadtheprofoundimpactStevehashad,theeffectsofwhichwillbefeltformanygenerationstocome.’

BILLGATESAFTERSTEVEJOBS’SDEATH

Certainlytheirswasarivalrythatinspiredthemtonewheights–somethingforwhichanyonewhohaseverusedapersonalcomputershouldbegrateful.Despiteitssometimesacrimonioustone,theirswasalsoabattlethatintheendleftnolosers.Eachplayedtheirownvastroleinthetechnologicalrevolutionthathasredefinedtheworldsincethe1970s.TostealaphrasefromJobs,theyeachmadeaformidable‘dentintheuniverse’.Perhapsthegreatestcuriosityisthattheirlegaciesmaynotbequiteastheworldonceexpected.WhileMicrosoftappearedtohavewonthecommercialbattleinthemid-1990s,AppleovertookMicrosoftastheworld’smostvaluabletechcompanybymarketcapitalizationin2010–thankstoJobs’smasterfulrosteroftwenty-first-centuryproducts,includingtheiPod,iPhoneandiPad.Meanwhile,whereJobsoncecarvedoutanicheasthepeople’schampion,Gates’semergenceastheworld’sgreatestphilanthropistmayyetwinhimthe

personalpopularitycontest.Gates,wemightsay,wasthebroadoneafterall–acidornoacid.

BusinessisBusiness

‘Businessisagoodgame:lotsofcompetitionandaminimumofrules.Youkeepscorewithmoney.’BILLGATES,1996

WhatevergoodGatesachieveswithhissuper-sizedpersonalfortune–andhehasalreadydonegreatthings–itisfairtosaythatinitsaccumulationhewashappytoplayhardball.AsPhilippeKahn,oneofthefoundersofthesoftwarefirmBorland,onceobserved:‘Gatesisonehellofasharpbusinessman.’

Gatesmighthaveregardedhimselfasprincipallyacomputerscientist,buthewasalsooneofthegreatCEOsoftheage.Thathecouldforsolongcombinehistalentsasaproductdeveloperwiththeday-to-daydemandsofbalancingthebooksandmanagingthousandsofstaffisaquitephenomenalfeat.ButheembracedthedualroleoftechnologistandbusinessmanfromthemomentheandAllensetupbusinesstogether.‘IthinkthesuccessofMicrosoft,’heexplainedin1993,‘hascomefromknowingthesethingshavearelationshipwitheachother.Thetwosidesdriveeachother.’But,asWarrenBuffettoncesaid,‘IfBillhadstartedahot-dogstand,hewouldhavebecomethehot-dogkingoftheworld.’

Certainly,Gateshasalwaysstrivedtokeephisapproachtobusinessuncomplicated,oncesaying,‘Ithinkbusinessisverysimple.Profit.Loss.Takethesale,subtractthecosts,yougetthisbigpositivenumber.Themathisquitestraightforward.’ItseemsthosepostgraduatelecturesheattendedwithSteveBallmeratHarvardwereclearlynotawasteoftime!Andiftheproofofthepuddingisintheeating,itisdifficulttofaulthisapproach.Asoflate2014,Microsoftwastheworld’ssecondmostvaluablecompany(behind,youguessedit,Apple)withamarketcapitalizationof$410billionandaglobalworkforceapproaching130,000.

Yetthecompany’srealeconomicheydaywasunderGates’sreignasCEO.Fromatwo-manoperationscramblingtowritecodeforMITSin1975inreturnforafewthousanddollars,GatesgrewMicrosoftintothebiggestcompanyintheworld,atitleittookin1997whenitreachedavaluationof$261billion.Foranyonewhohadthereadycashandgoodsensetoinvest$2,100in100shareswhenMicrosoftwentpublicin1986,theirholdingwouldhaveearnedthem$1.4millioninlate1999,whentheMicrosoftstockpricereachednewheights.On30Decemberthatyearthecompanyrecordedthehithertohighestmarketcapitalizationvalueinhistoryof$618.9billion–arecordeclipsedbyAppleon20August2012whenitendedtheday’stradingwithamarketcapitalizationof$623.5billion.

ButGatesneverlethimselfgetcarriedawaybysuchbrain-scramblingnumbers.Everwaryofgrowingcomplacentonsuccess,hewasneverlessthansanguineaboutthecompany’sprospects.‘Microsoftwon’tbeimmortal,’hewroteinTheNewYorkTimesin1997.‘Allcompaniesfail.It’sjustaquestionofwhen.’Presumablykeentoavoidsendingthemarketsintoaspin,heendedonaslightlymorepositivenote:‘Mygoalistokeepmycompanyvitalaslongaspossible,ofcourse.’

KEEPANEYEONTHEBOTTOMLINE

AsCEO,Gatesensuredheneverwentonoverlyirresponsiblespendingsplurgesatthecompany’sexpense.Althougheventuallytreatinghimselftothatultimate

billionaire’splaything–aprivatejet–hehasnonethelessalwaysmaintainedacloseeyeonthebottomline.Forinstance,inamovethatnodoubtwontheapprovalof

Buffett,hehadahabitofbookinghimselfintoeconomyclasswhenflying,eventhoughhecouldprobablyaffordtobuytheairlineofhischoiceonanygivenday.Ashearguedin1995,‘Flyingeconomycostslessmoney.Yougettherejustasfastasflyingfirstclass.Andmybodyfits.IfIwasreallywideorreallytall,Imightview

theissuedifferently.’

Furthermore,Gatesisruthlessintheboardroom.Hisdeterminationtogetthebestdealpossible,evenifonehastostepoverafewbodiestosecureit,ishardwired.Forproof,consideranepisodefromhisearlychildhoodwhenheapproachedhisoldersister,Kristi,withabusinessproposition.ShewastheproudownerofsomethingBillyearnedfor–abaseballmitt.Unabletoaffordthecostofanewoneofhisown,heinsteadofferedheraprincely$5inreturnforunlimitedandexclusiveaccesstothesaidsportsequipment.Heevenwroteupthetermsinacontractthathegothertosign.

Heminedsuchexperienceswhenhebeganrealdeal-makingasanadult.Anexpert,aswehaveseen,insqueezingeverypossibleadvantageoutofacommercialhook-up,healsobecamehighlyskilledatprotectinghisinterestswhenthingswentwrong.Andwitheachpotentialsetbackthatheovercame,helearnedandbecamebattle-hardenedaheadofthenextchallenge.

WhileMicrosoftoweditsinitialsuccesstotheMITSdealGatesandAllensobrilliantlysecured,thesubsequentcollapseoftheprofessionalrelationshipbetweenthetwoorganizationsbroughtGatesface-to-facewithharshcommercialrealities.TheproblemstemmedfromaclauseintheinitialcontractthatrequiredMITStomake‘bestefforts’topromotetheBASICinterpreterthatMicrosofthadproducedforthem.GatesandAllenreceivedaroyaltyoneachonesold,supplementingthefairlypaltryinitialpaymenttheyhadreceivedfortheproduct.However,suchwasthelevelofpiracy,GatesfeltMITShadlosttheappetitetoactivelypromoteit.Sohesetaboutreclaiminghiscopyright.

Bythen,MITShadbeenboughtbyacompanycalledPertec,whowithheldpaymentswhilearbitrationwasongoing.AsGatestoldittoFortunein1996,Pertecwas‘tryingtostarveustodeath’.Hecameclosetosettling,butintheendchosetoseethefightthrough.Thearbitrator,unimpressedbytheconductofbothPertecandMITS,foundinMicrosoft’sfavour.NotonlydidGateswinbacktherightstoselllicencestoothercompanies,healsoreachedtheconclusionthatwiththeMITSpartnershipdead,MicrosofthadnoreasontoremaininNewMexico.Makingthebestofwhathadbeenatoughsituation,heandAllenagreedtoreturnhometoWashingtonstate.

InacareeraslonganddramaticasGates’s,therehaveinevitablybeenotherdealsthatmisfired.AsidefromthesometimesrockyroadMicrosofttrodwithApple,thenextgreatfallingoutwaswithIBM.Thingscametoaheadinthelate1980sduringthedevelopmentphaseofOS/2,thesuccessortoMS-DOS.‘It’seasyforpeopletoforgethowpervasiveIBM’sinfluenceoverthisindustrywas,’GatesrecalledinTriumphoftheNerdsin1996.‘TherelationshipbetweenIBMandMicrosoftwasalwaysacultureclash.IBMerswerebuttoned-uporganizationmen.’

Inpart,theproblemseemstohavebeenthattheIBMprogrammerscametofeeltheyweredoingmorethantheirfairshareofthework.Gates,ontheotherhand,arguedthatif

theMicrosoftieswerecreatinglesscode,thatwasindicativenotoflazinessbutgreaterefficiency.Compoundingthedisputewasafundamentallydifferentviewonwhatanoperatingsystemshouldbe.Gateswantedtocreateanopenplatformthatcouldbeutilizedbymanydifferenthardwareandsoftwaredesigners.ThisfittedwiththeethosquotedinPaulCarroll’s1994book,BigBlues:UnmakingofIBM.GatesisquoteddiscussingMicrosoft’s‘low-cost,high-volumeapproachinwhichanycompany,includingourcompetitors,canwritesoftwareandcreatehardwarethatworkswiththeopenWindowsplatform’.HecontrastedthiswithIBM’s‘high-cost,low-volume,proprietaryapproach’.Giventheirirreconcilabledifferences,itwasperhapslittlesurprisewhenIBMeffectivelydivorcedMicrosoftin1992.Despitebeingbatteredbytheexperience,Gatesagainshowedhisrobustness,leadinghisfirmonwardsandupwards.Ashistoryshows,itwasnotOS/2thatconqueredtheworld–anobjectlessoninshowinganexthatyoucanflourishwithoutthem.

Gatesisanentrepreneurwhohasabsorbedhisfairshareofhardknocksonthewaytothetop.Butheneverturnedawayfromafight,bouncingbackfromeachknock-downstrongerthanbefore.Hisfightingspiritissummedupbyacommenthemadein1994whenaskediftheUSgovernment’santi-trustinvestigationmightcurbhiscompetitiveinstinct:‘Formetobecomegun-shymightrequiresurgery.’

MICROSOFTANDMONOPOLIES

‘Asyouknow,amonopolist,bydefinition,isacompanythathastheabilitytorestrictentrybynewfirmsandunilaterallycontrolprice.Microsoftcandoneither.’

BILLGATES,1998

WhenMicrosoftbeganin1975,itconsistedoftwounknownswhodreamedofconqueringtheworld,butsuchwastheirsuccessthatMicrosoftwasonlythespunkyunderdogforashortwhile.Withinafewyears,thefirmbecamethebigbruiserabletothrowitsweightaround.Suddenlyitwasothercompanieswhocouldclaimunderdogstatus,andtheywerenotslowtocomplainabouthowMicrosoftconducteditself.Assuch,Microsofthasfallenfoulofanti-trustlaws(designedtopreventmonopoliesandtopromotefaircompetitioninthemarketplace)interritoriesaroundtheworld,incurringfinesofbillionsofdollarsintheprocess.YetGateshasalwaysbeenadamantthatMicrosoft’ssuccesscameaboutbecauseitwasbetterthantheopposition,notbecauseitstifledthem.

Thecompany’srecordofanti-trustdisputesisunenviable.Itwas,forinstance,therecipientofthesinglebiggestfineevergiventoacompanybytheEuropeanUnionforviolationsofanti-trustlegislation.In2004,theEuropeanCommissionimposedafineofsome$666millioninresponsetoMicrosoft’sbundlingofWindowsMediaPlayerintoitsoperatingsystem.Inaddition,itwascompelledtoshareaspectsofitscoding.AftertheCommissiondeemedMicrosoft‘noncompliant’withthejudgement,ithandeddownasecondfineof$1.4billionin2008.Afurther$731millionfinefollowedin2013forthecompany’sfailuretopromoteinternetbrowsersotherthanIEtoitsEuropeancustomers.

Butitwasananti-trustactionbroughtbytheUSfederalgovernmentin1998thatisthe

mostnotoriousinMicrosoft’shistory,notleastbecauseforawhileitthreatenedtheveryfutureofthecompany.ItwasthewaythatMicrosofthadbundledInternetExplorerintotheWindowsoperatingsystemthatwastheboneofcontention.BecausesomanycomputersranonWindows,itwasarguedthatbundlingthebrowserintoiteffectivelyforcedapurchaseandunfairlyrestrictedthechancesofcompetitors,includingoriginalwebtrailblazerssuchasNetscape.

Afterseveralroundsofhearings,ajudgedecreedthatMicrosoftshouldbesplitintotwoseparateentities–onedevotedtoitsPCoperatingsystemsandanothercoveringitsotherinterests,includingtheOfficesuiteandIE.However,thatrulingwassubsequentlyoverturnedonappealandMicrosofteventuallyreachedasettlementwiththeUSDepartmentofJusticethatallowedittocontinueasasingleentity.

ItwasundoubtedlythegreatestordealofGates’scareer,butcharacteristicallyhefoughthiscornerwithvehemence.ItalsoilluminatesGates’sattitudetowardsthefreemarketandMicrosoft’splacewithinit.HiscommenttoPlayboyin1994–justasthenightmareoftheDepartmentofJusticeinvestigationbeganunfolding–encapsulatedhisposition:‘Thehardcoretruthisthatwe’vedonenothingwrong.’Toallintentsandpurposes,hehasalwaysrejectedallclaimsofmonopolistictendenciesonthebasisoflackofopportunityandintention.

Forinstance,in1998heasserted,‘Thebeautyoftheinternetisitsopenness.Itcannotbecontrolledordominatedorcutoff.’Meanwhile,theWallStreetJournalquotedhimassaying,‘Itisnot,norhasiteverbeen,theintentionofmycompanytoturntheinformationsuperhighwayintoatollroad.’Gatesclearlyfeltaggrieved,believingthathiscompanywascomingunderunfairscrutinysimplybecauseitwassuccessful.

Hislogicwasstraightforward:Microsofthadstartedoutasatinycompany,butbybringingtomarkettheproductsconsumerswanted,ithadcometodominateitscompetitors.This,asfarashewasconcerned,wasnotmonopolyinactionbutthetriumphofthefreemarket.AsheputittoTimein1997:‘Whogrewthismarket?Wedid.WhosurvivedcompanieslikeIBM,tentimesoursize,takinguson?’HeconcludedthattheUSgovernment’scasewasonlythatMicrosoft’sproductswere‘toocapable’andhetreateddismissivelythesuggestionthatMicrosoftoughttosellproductswithcertainfeaturesabsentintheinterestsofpromotingcompetitioninthemarket.Suchproducts,hesaid,werenothinglessthancrippled,whichwasnotwhatthefreemarketwasmeanttobeabout.

Althoughcogentlyargued,hisdefencenonethelessfailedtosatisfymanyofhiscritics,whoconsistentlypointedouttherealitythatMicrosoft’sdominancewassuchthatcompetitorsstruggledtogetafootholdinthemarketplace.Again,wecomebacktotheDavidandGoliathanalogy.MicrosoftstartedoutaDavid–small,agile,reliantonwitsratherthanmuscle.InGates’smind,hisfirmneverchanged.Davidsimplycarriedonusingthesametacticstovanquishallcomers.Buttomuchoftheworldatlarge,DavidhadusurpedGoliathandhadhimselfthengrownuntilhewassimplyGoliath2.0.Heavilyarmoured,withavastarsenalofweaponsathisdisposalandafearsomereputation,Goliath2.0hadbecomeunassailable.Therewassimplynoplaceonthebattlefieldforothers.

WhileGates,withsomejustification,insistedthatneitherhenorhiscompanycouldbeblamedforthefactthatpeopleboughttheirsoftwareinsuchvolume,hecouldnotfailtorecognizethepracticalimpactofMicrosoft’smight.Heissimplytoointelligentforthat.Forproof,oneneedlooknofurtherthantherecordoftheproceedingsoftheRosenResearchPersonalComputerForumforMay1981.AtapointinhistorywhenMicrosoftwasabouttosurgeintothecommercialbigleaguethankstoitstie-upwithIBM,Gatesnoted:

Ireallyshouldn’tsaythis,butinsomewaysitleads,inanindividualproductcategory,toanaturalmonopoly:wheresomebodyproperlydocuments,trains,promotesaparticularpackageandthroughmomentum,userloyalty,reputation,salesforceandpricesbuildsaverystrongpositionwiththatproduct.

Incertainrespects,Microsoft’scasewasnothelpedbythereputationithadgainedforaggressivelymakingacquisitions.Thecompanyhadbranchedoutfromitspuresoftwarebeginningstoencompassinterestsinthehardwareandwidermediasectors.Thiswasnaturalenough,given,forinstance,Gates’senduringfearthatthehardwareindustrywouldfailtokeepprogresswiththesoftwarebecomingavailable.Whatbetterwaytodrivethatsideofthecomputingbusinessthanbywieldingafinancialinterest?Inaspeechhegavein1998,heoutlinedotherreasonsforMicrosofttobuyupcompanies:

Alotofthetime,thereasonwedotheacquisitionis,whenweseeamarketdevelopingveryrapidly…wewanttoreducetheamountoftimeittakesustogetinthere[to]getworkingwithcustomers,[to]getthefeedbackthat’svaluable.

AlthoughacompromisewasreachedwiththeDepartmentofJusticethatseemedtokeepeverybody’spridesatisfied,theepisodeleftGatesgenuinelybruised.Ofcourse,infulfillinghisdreamofbeingkingofthecomputerworld,hehadattimesbeenruthlessinhistreatmentofrivalsandrarelyshirkedamarketplaceconfrontation.Butthelinebetweenlegitimatelypursuingmarketshareandunfairlyimpedingrivalsisthinandoftenupforgrabs.

Gates’sdisappointmentattheturnofeventswaspalpable.Hespokeofawitch-huntandaccusedrivalsofhiringlobbyiststostirupthisparticularhornets’nest.TheJusticeDepartment,ontheotherhand,wouldcometoaccuseMicrosoftofadoptingalegalstrategythatwas‘anaffronttothecourt’sauthority’.Gates’spersonaldiscomfortcomesthroughinthisobservationfrom1998:‘Whenyourowngovernmentsuesyou,it’snotapleasantexperience.Iwasn’tsittingtheregoing,“Hahaha,I’lldowhatIwant.”Iwasthinking,thisistheworstthingthat’severhappenedtome.’

IftheUSanti-trustcasewasthenadirforMicrosoftintermsofchargesofmonopolism,itwasbynomeanstheendofsuchlitigation.AswellasthecasebroughtbytheEuropeanCommission,thecompanyalsocameunderinvestigationinanumberofotherterritories,includingJapanandSouthKorea,whilein2014therewerereportsthattheChinesegovernmentwasabouttostartlookingintoMicrosoft’spractices.Still,thequestionremains:Howbigistoobig?ItisaconundrumwithwhichGatesandhislegaladvisorshavelongwrestled.

RealizeThatNoManisanIsland

‘Amazingly,Melindamademefeellikegettingmarried.Nowthatisunusual!It’sagainstallmypastrationalthinkingonthetopic.’

BILLGATES,PLAYBOY,1994

ItisaHollywoodstaplethatinhighschoolitisthejockswhogetthegirls,whilethegeeksgetthegrades…untilsomeglamorousandadmirablydeepcheerleader-typeseesthat,infact,herfuturelieswithanerdandnotthenumbskullquarterbackshewaspreviouslydating.WhilethisdepictiondoesnotquitesummarizeBillGates’sromantichistory(andseverelyunderstateshiswife’sownsignificantaccomplishments–sheismoreMichelletohisBarackObamathanVanessaHudgenstohisZacEfron)–itnonethelesshintsatanunderlyingtruth.

Asithasalreadybeennoted,GatesisnotandneverhasbeenanAdonis;hehadalookthatwasnevergoingtosetheartsflutteringinthestyleofaBradPittorGeorgeClooney.Furthermore,hespentanawfullylargepartofhisformativeyearsbusyinghimselfatcomputers,whichishardlythemostconducivewayofbuildingpersonalrelationships(especiallyinanerabeforesocialnetworking).ButthisisnottosaythatGateshadnoluckwiththeladiesasayoungman.Noteverybody,afterall,wantsanAdonis,andBill’sundeniableboyishnesshelditscharmsforsome.Hewascompetentlyathletictoo,quirkilysmartandwellrounded,andneverlackedself-confidence.Ashestartedmakingwavesinthetechnologyworld,thepresspicturedhimwithanumberofdatesonhisarm.

Perhapsmostfamously,hedatedAnnWinblad–aleadingSiliconValleyventurecapitalist–onandoffforthreeyearsorsoaftermeetingin1984.However,Gatescouldneverquiteshrugofftheimpressionthatdatingkepthimawayfromthereallyimportantbusinessofsoftwaredevelopment.Withlittleprospectofmarriage,thepairsplitamicablyandhavereportedlyremainedongoodtermseversince.AsGatesputitin1993:‘Itcertainlytookmealotoftime,beingasingleperson.’

ItwasnotthatGatescouldneverseehimselfsettlingdown,butmerelythathewasyettobeatthepointwhereitfittedintohislifeplan.Let’snotforget,whenhedatedWinblad,hehadnotevenearnedhisfirstbillion!Soitwasalwaysgoingtotakesomeonespecialtoturnhimroundtotheideaofsharinghislifeonapermanentbasis.Andhemether–intheguiseofMelindaFrench–in1987.Perhapsagainstexpectation,hewashappilymarriedbeforehisfortiethbirthday.

Althoughhehardlytookhisfootofftheprofessionalaccelerator,itmarkedatrueturningpointinhislife.Thearrivalofchildren(JenniferKatharinein1996,RoryJohnin1999andPhoebeAdelein2002)sealedthedeal.SpeakingtoWiredin2010,hesaid,‘Whenyouchoosetogetmarriedandhavekids,ifyou’regoingtodoitwell,youaregoingtogiveupsomeofthefanaticism.’

AlltheevidencesuggestsheisasaccomplishedafamilymanashewasaCEO.Atthetimeofwriting,heandMelindaareintotheirthirddecadeofmarriageandGatestooktoparentingwithaneasethatsurprisedsomeobservers.Thekey,itseems,isthathefounditfunfromtheoutset.

Ina199820/20televisioninterview,hesaid,‘Mypriorityinlifeismyfamily.IalwaysknewI’dgetmarriedandhavechildren.Youknow,familylifeisallaboutbeingemotionalandsharingthingsanddoingthingswitheachother.’

Hehasevendrawnparallelsbetweenparenthoodandthecouple’sphilanthropicwork.TheNewYorkerquotedhimin2005onthesubject:

Wehavetakenonthetoptwentykillersandforeverythingwedowelookatthecostperlifesavedandrealoutcomesintermsofhowthingsgetimproved.It’sfun,anditisalsoanenormousresponsibility…Thatistrueforbeingaparent.Manyofthemostimportantthingsinlifearelikethat.Whyelsewouldyouwanttogetupinthemorning?

Theoverlapbetweenthesetwospheresofhislifehasafinancialdimension,too.Hehasbeenadamantthathischildrenshouldhaveas‘normal’anupbringingaspossible–quiteanambitionwhenyouareasrich,famousandpowerfulasBillGates.Tothisend,heisdeterminedthattheiridentitiesshouldnotbedefinedbyhiswealth.HisintentionofpouringthemajorityofhiswealthintohisandMelinda’sfoundationhastheknock-oneffectofrestrictingwhathecanpassontohisoffspring.In2011,theDailyMailreportedhimassaying,‘Itwillbeaminusculeportionofmywealth.Itwillmeantheyhavetofindtheirownway.Theywillbegivenanunbelievableeducationandthatwillallbepaidfor.’

Ofcourse,aminusculeportionofagargantuanamountisstill,touseanotentirelytechnicalterm,quitealot.TheGateschildrenwilldoubtlessinheritrichesthattherestofuscanonlybegintoimagine.However,whiletheywilllikelylackfornothing,theywillnotsimplybehandedrichesthatmostnationstates–letaloneprivateindividuals–wouldenvy.AsheputittoCNNin2008:

Idon’tthinkitwouldbebeneficialtothemtohavehugeamountsofwealth.Ithinkthat’sverydistortiveintermsofhowyouthinkoftheimpactyou’regoingtohave,howyoumeasureyourself,howyourfriendsthinkaboutyouandhowtheydothingswithyou.Andit’salsobadforsociety.

TherewasatimewhenGateswasweddedtohiscareeranditseemedquitepossiblethathisdevotiontogrowingMicrosoftmightbeabartonurturingpersonalrelationships.Intheevent,Gates’sadultlifehasoperatedinthreedistinctfields:Microsoft,philanthropyandfamily.Hehasmanagedtoinputenormousenergyandresourcesintoeach–evidenceofaremarkablywell-roundedpersonality.ItwasthegreatmetaphysicalpoetJohnDonnewhowrotethat‘Nomanisanisland.’Gatesgoestoprovethesentimentholdsevenifthatmanhasthecashtobuyanislandortwoofhisown.

PROFILE:MelindaGates

‘CouldyougoouttwoweeksfromthiscomingSaturday?’MELINDAGATES,RECALLINGBILLFIRSTASKINGHEROUTONADATE,2013

BeingthewifeofamanlikeBillGatesmaybringobviousadvantages,butitisahardtask,too.Bybroadconsensus,MelindaGateshasexecutedtherolewithaplomb,exhibitingintelligence,styleanddignity.WhileBillisinevitablythe‘headlineact’,shehasbeenmorethanasupportivewifeanddotingmothertohischildreninthebackground.Anaccomplishedexecutiveinherownright,shecameintoherownwithinthecontextoftheGatesFoundation.Thereshehasemergedasakeyinfluenceinitsdecision-makingprocesses,asteadyguidinghandandanotablyskilledadvocateforitscauses.Whilenever‘fluffy’,shegivesthefoundation’simageawelcomeairoftendercompassion,ratherasPrincessDianaachievedinhercharitableworks.AsGateshasadmitted,‘Melindabonds

withsomeconstituenciesmorenaturallythanIdo.’

Butjustwhoisthewomanwhoclaimedtheheartofoneoftheplanet’smostpowerfulmen?MelindaAnnFrenchwasbornon15August1964inDallas,Texas.HerfamilyarestaunchRomanCatholicsandsheattendedaCatholicgirls’school,theUrsulineAcademyofDallas.(ItsLatinmotto,‘Serviam’,translatesas‘Iwillserve’–afittingcredoforthepupilwhowouldgoontomakesuchasplashinphilanthropy.)LikeBill,Melindashowedanearlyaptitudeformathematicsandwasregardedasadiligentandaccomplishedpupil.Inafurtherparallelwithherfuturehusband,shewasalsosportyandcompetitive,provingherselfadoughtylong-distancerunnerandalsoexcellingasakayaker.Outdooractivitiesremainapassionforthecouple,withtheirLakeWashingtonhomeanidealbasefromwhichtopursuethem.

Fromschool(whereshegraduatedasvaledictorianin1982)sheprogressedtoDukeUniversityinNorthCarolina,studyingcomputerscienceandeconomics.Herstaragainshonebrightly,withsomeofherprofessorscirculatingherpapersamongherfellowstudents.Singledoutforgreatthings,shewassetonafast-trackthatsawherreceivefirstherbachelor’sdegreeandthenanMBAinamerefiveyears.GivenBillGates’sprideinMicrosoft’sabilitytospotgraduatetalent,itwasnosurprisewhenthecompanyrecruitedherstraightfromuniversity(despitethefactthattheFrenchfamilyhadownedMacsandMelindahadpreviouslybeenaninternatIBM!).

MovingtoSeattle,shewasamongthebrightestofthegraduateintake,gettingpostedacrossthecountrytoworkasaprojectmanager.Aswellashertechnicalprowess,shewonrecognitionforherpeople-managementskills(somethingBillmightperhapshavelearnedfrom)andherabilitytocoaxateamintoworkingtoitspotential.Evenwiththeoddhiccupinherrésumé(suchastheill-fatedMicrosoftBobinitiative),shewassoonestablishedasa‘VeryGoodThing’.

ItwasaboutfourmonthsafterjoiningMicrosoftthatMelindaFrenchfoundherselfsatnexttoherhusband-to-beduringadinnerataNewYorktradefair.Hewas,shelaterrecalled,‘funnierthanIexpectedhimtobe’.He,meanwhile,wasinstantlyimpressedbyherindependentspirit,herintelligenceandhersenseofhumour.However,itwasseveralmonthsbeforethebossgotroundtoaskinghisexecutiveout.Thesettingwasunglamorous–acarpark–andGates’ssuggestionofadatetwoweekshencefailedtosweepheroffherfeet.Shesuggestedthepropositionlackedspontaneityandheshouldcallnearerthetime.Havingponderedherwords,hecalledherlaterthesameeveningandsuggestedtheymeetthatnight.Ifsheexpectedtobewinedanddined,shewasdisappointed.Hewastalkingatacomputerusers’meetingsothedateendeduptakingplaceathishouseinthesmallhours.Itdid,though,givethemanopportunitytoreallytalkandgettoknoweachother.Hehadalsoprovedhecouldbespontaneous.

Communicationhasunderpinnedtheenduringsuccessoftheirrelationship,withinthedualcontextsoftheirmarriageandthefoundation.Inhis2010book,WorkingTogether:WhyGreatPartnershipsSucceed,MichaelD.EisnerquotedGatesassayingthatthey‘enjoysharingideasandtalkingaboutwhatwearelearning’.Theyalsomakeahabitofreadingmanyofthesamebooksaseachotherandsettingasidetimetoconverseaboutthemasawayofkeepingthesparkalive.‘You’vegottoputenergyintomakingsureyouknowwhattheotherperson’sthinking,’Gateshasgoneonrecordassaying.

In1993hefinallydecidedtopopthequestion,buyinganengagementringfromacompanyownedbyhisoldmateWarrenBuffett.BuffettrathermischievouslytoldGatesthathehadspentfully6percentofhisnetworthwhenbuyinganengagementringforhiswife-to-bein1951,andsuggestedBillshoulddolikewise.GivenGates’swealthatthetime,thatwouldhaveequatedtoover$500million.Whateverthefinalcost,wecanrestassuredthathespentmorethanthegoingrate,andthehappycoupleproceededtocelebratetheirbetrothalbythrowingalavishGreatGatsby-themedparty,withGatesasGatsbyandMelindaasDaisyBuchanan.

TheymarriedonNewYear’sDayin1994onabeachontheHawaiianislandofLanai.Shortlyafterwards,Melinda–whoisfiercelyprotectiveofherprivacy–leftMicrosoft,whereshehadrisentobegeneralmanagerofitsinformationproductsdivision.In1996,thefirstoftheGateschildrenarrived,butshecontinuedtoholdseveraldirectorships,includingaseatontheboardoftheWashingtonPost,andwasatrusteeofherolduniversity.

In2005,Timegavetheir‘PersonsoftheYear’titleto‘TheGoodSamaritans’,symbolizedbytheGatesesandBono–‘threepeopleonaglobalmissiontoendpoverty,disease–andindifference’.AstheaccoladecementedMelinda’semergenceasamajorpublicfigureinherownright,herimportancetotherunningofthefoundationwasconfirmedbyBonohimself:‘LotsofpeoplelikeBill–andIincludemyself–areenragedandwesweepourselvesintoafuryatthewantonlossoflives.Weneedamuchslowerpulsetohelpustoberational.Melindaisthatpulse.’

Justlikeherhusband,Melindabuilthercareeronsoundacademicfoundations(indeed,sheisfamouslymorehighlyqualifiedthanher‘drop-out’spouse)andapassionfortechnology.Butitisasamotherandaphilanthropistthatshehasfoundhergreatestsatisfaction.ConsiderherwordstoanaudienceatStanfordUniversityin2014:

Optimismformeisn’tapassiveexpectationthatthingswillgetbetter;it’saconvictionthatwecanmakethingsbetter–thatwhateversufferingwesee,nomatterhowbaditis,wecanhelppeopleifwedon’tlosehopeandwedon’tlookaway.

EnjoytheTrappingsofYourSuccess

‘Ridiculoussumsofmoneycanbeconfusing.’BILLGATES,PLAYBOY,1994

Theriseofthetechno-billionairesattheendofthetwentiethcenturyrecalledtheemergenceofAmerica’sindustrialmillionairesinthenineteenthcentury.AsmediamagnateDavidGeffennotedtoForbesin1994:‘ItisstillpossibletobeaVanderbilt,anAstor,aRockefeller.Youcanstilldothat;youcanbeBillGates.’Forthelastthirtyyearsandmore,Americahasbeencomparativelyawashwithuber-richself-mademen(fortheymostlyaremen)withreadycashburningholesintheirpockets.Philanthropicendeavoursaside,howhasGateschosentospendhiswealth?

Muchofitistiedupinhismyriadongoingbusinessinterests,whichextendfarbeyondMicrosoft.Heisamajorinvestor,forinstance,inenterprisesasdisparateascardealershipsandwastemanagement.HeisalsothefounderofCorbis,avastpicturearchivethatstandstomakehimafortuneasthedemandfordigitalimagesrockets,andisamajorshareholderinasocialnetworkingsiteforresearchers,alongwithathinktankandaventurecapitalfirm.However,thereisstillplentyofmoneytospendonotherthings.

Asnotedelsewhere,hehasnotalwaysbeenkeentoflashthecash.Itcertainlyhasn’tallgoneonexpensiverestaurants.‘IeatMcDonald’smorethanmostpeople,’hetoldPlayboyin1994.‘Intermsoffastfoodanddeepunderstandingofthecultureoffastfood,I’myourman.’Andinthesameinterviewheexplainedhishithertorefusaltobuyhimselfaplane:‘Why?Becauseyoucangetusedtothatkindofstuff,andIthinkthat’sbad.SoIcontrolthatkindofthingintentionally.It’soneofthosedisciplinethings.Ifmydisciplineeverbrokedownitwouldconfuseme,too.SoItrytopreventthat.’

Yetby1997,hisself-imposedprohibitiononprivatejetswasover(evenifhistasteforjunkfoodwasnot).ThatyearheinvestedinaBombardierBD700GlobalExpressjet,andwasunlikelytohavegotmuchchangeoutof$50million.However,aircraftneverdiditforGateslikecarscould.Fromevenbeforehecoulddrive,hewassomethingofapiston-head.DrivingbecameanoutletforhimintheearlydaysofMicrosoft,awaytoletoffsteamandbreakupthelonghoursanddaysdevotedtocoding.Norwasheinterestedinleisurelydriving,butlustedafterspeed.Infact,heearnedasuccessionofspeedingtickets(evenoncegettingoneinapowerboat)andononeoccasionwasarrestedinAlbuquerqueaftergettingintoaspatwithatrafficcop.

SPLASHOUTONYOURPASSIONS

Gateshasalwaysbeenhappytochannelsomeofhisincomeintomotorcars.HavingownedanorangeMustangwhilestillatschool,hewaswillingtospendhundredsofthousandsofdollarsatathrowtogetthelatestinbigboy’stoys.Oneofhisearliestpurchaseswasa1979Porsche911thattoreuptheroadsofNewMexico.OtherPorchesfollowed,includinga930Turbo,aCarreraCabrioletanda959Coupe,ofwhichonly330orsowereeverbuilt.Howeverfrugalhemayhavebeeninotherareasofhislife,whenitcametocars,therulebookwentoutofthesunroof.

Hisbrusheswithdrivingandthelawdidn’tstopthere.Oneofhiscars,thePorsche959,promptedGatestopushforachangeinAmericanlaw.Anotedsupercar,the959isamongthemostadvanced‘on-the-road’sportscarseverbuilt(ithasatopspeedof195mphand

canhit60mphinjustover3.5seconds),butitwastechnicallyillegalintheUSsinceitscrashratingwasunknown.Bill’scarwasthuskeptinstorageforadecadeinthePortofSeattlebytheUSCustomsService.However,GateswasoneofseveralnotablefigurestolobbytheWhiteHouseforareappraisal,andin1999PresidentBillClintonamendedlegislationsothatcertaincollectiblecarswereexemptedfromexistingsafetyregulations.IthasbeenreportedthatGateshadcreatedaprogrammetosimulatethevehicle’scrashworthinesstodrivetheprocessforward.OthervehiclesownedbyGatesincludeaFerrari348andaJaguarXJ6,whileheisalsoknowntohavedrivenaLexus,aMercedesand,moreprosaically,aminivan.Thenthereishispropertyportfolio,dominatedbytheLakeWashingtonestatethat

servesasthefamily’sprincipalhome.Builtoverapproximatelysevenyearsfrom1990(oftentothechagrinofwealthyneighboursunusedtosuchwholescaledisruptiontotheirdomesticsetting),ithasafootprintofover6,000squaremetresandisknownasXanadu2.0,anodtothepropertyfeaturedinOrsonWelles’sclassicmovie,CitizenKane(whichitselfwasbasedonWilliamRandolphHearst’scastleatSanSimeon).

WithaninteriorcreatedbythenotabledesignerThierryW.Despont,itsfeaturesincludetwenty-fourbathrooms,agaragelargeenoughfortwenty-threecars,alake-viewdiningroomthatseatsahundred,atwenty-seatcinema,adevotedtrampolineroomwithatwenty-foot-highceiling,anditsownboathouse.Unsurprisingly,itisalsofilledwithcutting-edgetechnology,averitableexperimentinstate-of-the-artliving.Famously,guestsreceiveaPINnumberonarrivalthatensuresthattheirstereosplaytheirtasteinmusicastheymovefromroomtoroom,whilehigh-definitionscreensdisplayartworkspleasingtotheirparticulareye.Asof2013,thepropertywasestimatedat$150million.Gates’sotherpropertiesincludeamansioninFlorida,completewithashowjumpingarena,whiletherehaslongbeenarumour,neverconfirmed,thatheownsaprivateislandoffthecoastofBelizeinCentralAmerica.

Hehasalsoinvestedheavily(someexpertsbelievepayingovertheodds)inclassicworksofAmericanart.Indeed,ithasbeennotedthatMicrosofthasdirectlyandindirectlybirthedsomanybillionaireswhoresideinWashingtonstatethatSeattleisdestinedtobecomeaculturalcapital,withtreasurestorivalthelikesofWashington,D.C.,NewYorkandBoston.Gates’sfirstsignificantforayintotheartmarketcamein1996,whenhepaid$7millionforAndrewWyeth’s1961work,DistantThunder.Twoyearslater,hebroketherecordforasumpaidforanAmericanartworkwhenheboughtWinslowHomer’sLostontheGrandBanks(1898)foracool$36million.OtherworksinhisprivatecollectionincludeWilliamMerrittChase’sTheNursery(forwhichhepaid$10million),FrederickChildeHassam’sTheRoomofFlowers($20million)andGeorgeBellows’sPoloCrowd($28million).

Anavidcollectorofhistoricephemera,heownsoriginaldocumentsinthehandsofIsaacNewtonandAbrahamLincoln.ThenthereistheextraordinarytreasurethatisLeonardodaVinci’sCodexLeicester.Aseventy-two-pagenotebookdatingfromthefirstdecadeofthesixteenthcentury,itcontainsanarrayofthoughtsandobservationsfromGates’sheroontopicsrangingfromastronomytofossils.Hepaid$30.8millionforitin1994,causinguproaramongItaliansupsetthatitwasdepartingtheirhomeland.Gates,though,argueditwasadocumentthatreflectsglobalculturalheritage.‘Iremembergoing

homeonenightandtellingmywifeMelindathatIwasgoingtobuyanotebook,’hewouldlaterwrylyrecall.‘Shedidn’tthinkthatwasaverybigdeal.’

THERICHESTMANINTHEWORLD

‘IwishIwasn’t…There’snothinggoodthatcomesoutofthat.’BILLGATESONBEINGTHEWORLD’SRICHESTMAN,2006

Sinceitfirsthittheshelvesin1917,Forbesmagazinehasbeenthebibleofthesuper-rich,andin1987itbeganpublishinganannuallistoftheworld’sbillionaires.In2015,BillGatesretainedhisspotatthetopofthetree,hisfortuneestimatedat$79billion.Itwasthesecondconsecutiveyearhehadbeenfirstplaceontherichlist,havingbeenrankedsecondbehindMexicanbusinessmagnateCarlosSlimbetween2009and2013.In2008Gateshadalsobeensecond,thattimebehindhisoldbuddyWarrenBuffet,butbeforethathehadbeeninpolepositioneveryyearsince1995.

Bycertainmeasures,therearehistoricalfigureswhohaveboastedgreaterwealththanGates.Forinstance,athisrichest,theoilbaronJohnD.Rockefellerhadafortuneequivalentto1.5percentoftheUSA’sentireGDPatthetime,whileGates’sbankbalanceequatedtoamere0.4%ofAmericanGDPwhenmeasuredin2013.However,indollarterms,noindividualhaseverbeenasrichasGatesatthetimeofwriting.

Asayouth,heissaidtohavevowedtobecomeamillionairebythetimehewasthirty.Heactuallyreachedthatmilestoneseveralyearsaheadofschedule.Hewasonlyjustoverthirty(infact,hewasthirty-one)whenhebecameabillionaire.Thatwasin1987,andcameaboutasaresultofthepreviousyear’spublicflotationofMicrosoftstock.Remarkably,itwasamoveaboutwhichGateswasverymixed.HisinclinationwasthatacompanybecomeshardertomanageandmoreunwieldywhenshareholdershavetherighttocalltheCEOonallofhisbigdecisions.Furthermore,businesswassobuoyantthatthecompanydidnotneedacashinjection–oftentheprimereasonforgoingpublic.ButhealsorecognizedthatMicrosofthadbecomefartoobigtostayasitwas.Additionally,offeringstockoptionswasvitalinordertoattractandretainthemosttalentedemployees.Notonlydiditprovidestaffwithafinancialincentivetomakethecompanyassuccessfulaspossible,butitalsogaveemployeesapersonalstakeinthecompany,helpingtobindthemtogether.

RegardlessofGates’smisgivings,the1986flotationusheredinthefinancialgoodtimesfortheworkforce.Andforthosewiththepatiencetokeepholdoftheirstockholdings,therewardshavebeenphenomenal.Forinstance,someonewhoinvested$10,000in1986wouldhavefoundthemselveswithaninvestmentworth$2.4millionin1998.ItisestimatedthatMicrosoft’sinitialpublicofferingcreatedthreebillionairesandsome12,000millionaireswithinafewmonthsoftrading.

Gateshimselfsoldarelativehandfulofsharesonthefirstdayoftrading,earningamere$1.6million.However,hisremaining45percentshareholdingwasvaluedat$350million.SuddenlyGateswasnotmerelyabrightyoungthinginthetechbusinessbutone

ofthehundredwealthiestpeopleintherichestcountryintheworld.By1987,hisstakehadtippedpastthebillion-dollarmark.Upandupitwent,untilbythelate1990shewasestablishedastherichestmanintheworld–astatushehaseasilyretained,evenafterbeingovertakenasMicrosoft’sbiggestshareholderforthefirsttimein2014,byhissuccessorasCEO,SteveBallmer.

Butbeingrichisnotallthatit’scrackeduptobe.AccordingtoG.PascalZacharyinhisbookShowstopper!,Gatesbelievestherichdon’t‘getmuchcreditforanything’.Ifanyoneshouldknow,it’sBill.

TakeTimetoReboot

‘Inevertookadayoffinmytwenties.Notone.’BILLGATESQUOTEDONTHEMAILONLINE,2011

ItalmostgoeswithoutsayingthatBillGateshasneverbeenwork-shy.Indeed,theyoungGateswhofellasleepinthemiddleofmeetingsandthoughtnothingofathirty-six-hourshiftwasaveritablecasestudyinworkaholism.Whilehecouldhardlybeaccusedofeasingupinhislateryears,hehasnonethelessdevelopedasomewhatmoremeasuredapproachtohispersonalworkload.

Aswehaveseen,fromearlyinitsgrowth,Microsofthadanintriguingandevencontradictoryphilo-sophyinrelationtomixingworkandpleasure.Ontheonehand,thereweretheon-siteleisurefacilitiesprovidedfortheworkforceatnotinconsiderableexpense.Ontheother,therewastheanecdotalevidenceofemployeesexpectedtoworkimpossiblylongweeksthatonlythestrongestsurvivedforanylengthoftime.

Gateswasthepersonificationofthiscontradiction.Againstthemarathonstintsofcoding,therewere,forinstance,thespontaneousjauntsacrosstheNewMexicodesertinhiscar.Healsokeptupahostofhobbies.Hehasbeenakeengolfer,whointheearly2000sreportedlyplayedoffamid-twentieshandicap,aswellasarespectabletennisplayer,swimmer,skaterandskier(bothonsnowandwater).Inaddition,hehasdevotedconsiderableenergiesintoimprovinghisbridgeskills,althoughhismentorBuffettremainssomedistanceaheadofhim.Otherinterestsincludemusic,withthe1940sand1950sprovidingmuchofhisfavouritematerial.FrankSinatraisthesubjectofparticularadmiration.And,ofcourse,hehasbeensuretospendasmuchtimeaspossiblewithhisfamily.(Hischildren,incidentally,apparentlyplayfullytaunthimwiththelyricstoTravieMcCoyandBrunoMars’s2010hit‘Billionaire’,withitslyrics‘Iwannabeabillionairesofreakin’bad/BuyallthethingsIneverhad/IwannabeonthecoverofForbesmagazine/SmilingnexttoOprahandtheQueen…’)

AllofthatmightsoundlikeGateshasanexcellentwork–lifebalance.Certainly,hehasalwayssoughtoutatleastalittledowntimefromthedemandsofhiscareer.However,itisdifficulttospotjustexactlywhenherelaxes.Thebroadrangeofpastimesheundertakesislesssymbolicofalifeofleisurethananindicationofhisdesiretocramasmuchaspossibleintohiswakinghours.Hehashistoricallybeenphenomenallyadeptatburningthecandleatbothendswithouttheflameeverextinguishing.Butgraduallyhecametorealizeanadjustmentwasneededinhislifestyle–particularlygiventhathisphilanthropyhastakenupmoreofhispersonalresources.Developingthethemeinthe2011quotationatthebeginningofthissection,hecontinued,‘…I’mstillfanatical,butnowI’malittlelessfanatical.’

MANAGELIKEGATES

AsMicrosoftboomedfromtheearly1980sanditsvastprofitstrickleddownthroughtheworkforce,Gatesknewheneededtothinkofsmartwaystokeephisbestguys.Whywouldsomeonestaywiththecompanyforthelonghaul,workingungodly

hours,iftheyhadalreadyearnedmoremoneythantheyknewwhattodowith?Oneofhisanswerswastoofferextendedsabbaticals,duringwhichanemployeehadtheopportunitytoexploreotherinterests,totravel,workinthecommunityand–justmaybe–evenhavearest.ItisaperkthatshowsGatesalwaysunderstoodtherewaslifebeyondMicrosoft,eveninthedayswhenherarelygotatasteofithimself.

Soitwasthateventually,andtothesurpriseofmanyobservers,Gatesmadethedecisionthatheneededtotakeastepback.Theprocessbeganin2000whenhesurrenderedhispositionasCEOtoSteveBallmer(ahandoverbothmenadmittedwasdifficulttomanage).Insteadhebecamethecompany’schiefsoftwarearchitect.Intheory,hewasreturningtohisfirstloveofcomputerengineering,althoughonlythenaïvebelievedhecouldentirelydivorcehimselffromthebottom-lineaspectsofthebusiness.Then,inmid-2006,itwasannouncedthatGateswastoretreatfromhisday-to-daypositionwiththecompanyin2008inordertoconcentrateonhisfoundation’sactivities.Hislastdayasafull-timercameinJuneof2008,thirty-threeyearsafterhehadfoundedthecompany.However,severalcolleaguespointedoutthatBillGates’spart-timeequatestovirtuallyanyoneelse’sfull-time.Finally,in2014hegaveupthecompanychairmanshiptoo–arolehehadfilledsince1981.However,thiswasretirementGates-style.Justasthechairmanshippassedoutofhishands,soitwasannouncedthathehadagreedtoserveasatechnologyadvisertoBallmer’ssuccessorasMicrosoftCEO,SatyaNadella.‘I’mthrilledthatSatyahasaskedmetostepup,’saidGates,‘substantiallyincreasingthetimethatIspendatthecompany.’

AndsoGatesremainsasbusy,ifnotbusier,thanever,travellingtheworldtomaximizetheimpactofhisfoundation’sworkandlendingasteeringhandtothefirmthathebuiltfromnothing.Bynomeasurecouldhebedescribedasputtinghisfeetup.Nonetheless,hehasadjustedhiscommitmentstoreflecthisnewprioritiesandtoensurehemaintainssufficientfuelinthetankasheentershisseventhdecade.Hewouldn’twanttoslowuptoomuch,anyway.Ashenotedin2008inaconsiderablefeatofunderstatement:‘I’mnotasit-on-the-beachtype.’

ReadLikeBillGates

‘IreallyhadalotofdreamswhenIwasakid,andIthinkagreatdealofthatgrewoutofthefactthatIhadachancetoreadalot.’

BILLGATES

Thereisacommonlyvoiced,thoughwidelydisputed,fearthatthosegenerationsbroughtupwithpersonalcomputersandallthedistractionstheyofferhaveturnedtheirbacksontraditionalpastimessuchasreading.Hearteningly,though,Gatesisaprodigiousconsumerofliteratureofalltypes.Onhispersonalblog(www.gatesnotes.com),hedevotesagreatdealofspacetologginghisownreading,oftenaccompaniedbyinsightfulreviews.Inrecenttimeshehasalsoissuedatleastonelistofbookrecommendationsayear.

Hispassionforreadingstartedearly,asherevealedtoJanetLowein1998forherbookBillGatesSpeaks:‘Growingup,myparentsalwaysencouragedustoreadalotandthinkforourselves.Theyincludedusindiscussionsoneverythingfrombookstopolitics.’HeeagerlyconsumedtheTarzanstoriesofEdgarRiceBurroughsasaboy,andalsosethimselfthetaskofwadingthroughtheWorldBookEncyclopaedia,whichrantotwentyvolumesatthetime.Hegobbledupbiographiestoo,exploringthelivesofsuchnotablesasFranklinDelanoRooseveltandNapoleonBonaparte.Meanwhile,asachildbroughtupwiththemoonlandingsandwithanaturalscientificbentanyway,heunsurprisinglydevelopedatasteforpopularsciencewriting–bothfictionandfactual.

Thereadingbugneverlefthim.Throughouthisadulthoodhehasstriventogiveanhouradayovertoit,andmoreatweekends.Nordoesherestricthimselfonlytobooks,butreadsanewspapereverydayandseveralmagazineseachweek,onthebasisthattheykeephiminformedonabroadspectrumofsubjectsfromcurrentaffairstothelatestcomputingtechnology.Furthermore,inoneofhiscolumnsforTheNewYorkTimesbackin1996,hespokeofthe‘thinkweeks’hetakesacoupleoftimeseachyear.Duringthesebreakshestocksuponbooks‘andothermaterialsmycolleaguesbelieveIshouldseetostayuptodate’,usingthetimetore-energizeandre-evaluate.

Hischoiceofbookscanbestbedescribedaseclectic.Inhisownwords:‘Ireadalot,butIdon’talwayschoosewhat’sonthebestsellerlist.’Whileheisbynomeansaversetofiction(GraemeSimsion’ssmashhitTheRosieProjectmadeitontohisbookshelfonhiswife’srecommendation),mostofwhathereadsisnon-fictionbecause‘Ialwayswanttolearnmoreabouthowtheworldworks’.Inanadmissionthatmustliftthesoulsofparentsandteacherseverywhere,Gatesatteststhatitisthroughreadingthathebestlearns.

Aswellasseekingouttitlesthatteachhimsomethingnew,heisdrawnbygrippingstories,especiallythosecentredaroundhumaningenuity.In2013,forinstance,hehighlypraisedMarcLevinson’sTheBox:HowtheShippingContainerMadetheWorldSmallerandtheWorldEconomyBigger.Itisnot,perhaps,atitlethatwouldwineveryoneover,butGatesloveditfortheremarkablelightitshedsonglobalization,businessandphilanthropy.

Manyofhisbookchoicesreflecthispassionforaddressingthegreatproblemsandcrisesthattheworldfaces.So,forinstance,hehasreadtitlesasdisparateasPaulFarmer’sToRepairtheWorld,thehugelyaptHowtoSpend$50BilliontoMaketheWorldaBetterPlace(acollectionofessayseditedbyBjørnLomborgonthetenbiggestchallengesfacingtheplanettoday),JeffreySachs’sTheEndofPoverty,StevenLevittandStephenDubner’sSuperfreakonomics(accordingtoGates:‘Oneofmyfavouritethingsinthebookisthedebunkingofmanyofthestudieseconomistshavedonethattheyuseasthebasisforclaimingthatpeopleareirrationalintheirchoices.’),LeonHesser’sTheManWhoFedthe

World(abiographyofNobelPeacelaureateandagriculturalscientistNormanBorlaug)andKatherineBoo’sheart-rendingstudyofmodernIndianslumlife,BehindtheBeautifulForevers.

Amanrenownedforhisabilitytorapidlyself-educateonsubjectsthatfascinatehim,healsohasatasteforrawscience.Anall-timefavouriteisSurelyYou’reJoking,MyFeynman!,anaccountofsomeoftheexploitsofGates’sbelovedNobelPrizewinningscientist,RichardFeynman,includinghisencounterswithAlbertEinsteinandNielsBohr.Themid-seventiesclassicTheSelfishGenebyRichardDawkinsalsohadaprofoundinfluenceonhiminitsinvestigationofhumanevolution.OfparticularrelevancetoGatesashefirstgottogripswithcodingwastheepicTheArtofComputerProgrammingbyStanfordprofessoremeritusDonaldKnuth.Extendingoverseveralvolumes,itisanotoriouslydenseworktogetthroughandGatesreaditoveraperiodofmonthsintwenty-pagechunks.WritinginTheNewYorkTimesin1995,hesaid,‘Ifsomebodyissobrashthattheythinktheyknoweverything,Knuthwillhelpthemunderstandthattheworldisdeepandcomplicated.’

Meanwhile,weknowthatinmorerecenttimesGates’sscientificreadinghasincludedbothWeatherforDummiesandPhysicsforDummies,aswellasWalterGratzer’shard-coreGiantMolecules:FromNylontoNanotubesandKarlSabbagh’sTheHairoftheDogandOtherScientificSurprises.AndamongthepopularbiographieshehasconsumedisWalterIsaacson’sprofileofSteveJobs,whileGates’sloveoftennisisreflectedinhischoicesofPeteSampras:AChampion’sMindandAndreAgassi’sautobiography,Open.

InaninterviewwithAchievment.orgin2010,herevealedhisloveofJohnKnowles’sASeparatePeace,whichhedescribedas‘phenomenal’.Publishedin1959,itisacoming-of-agenovelsetagainstthebackdropoftheSecondWorldWar.ContinuingthethemeofAmericanclassics,heisahugefanofF.ScottFitzgerald’sTheGreatGatsby.Heevenhasthefollowingwordsfromtheendofthenovelinscribedonthedomedceilingofhispersonallibrary(whichisrepletewithatleast14,000titlesandtwosecretbookcases):‘Hehadcomealongwaytothisbluelawn,andhisdreammusthaveseemedsoclosethathecouldhardlyfailtograspit.’

Everthe‘do-er’,Gateshasnotbeencontenttobeamerereadereither,butlongagobecameanauthor,too.Hisfirstwork,TheRoadAhead,wasco-writtenwithNathanMyhrvoldandjournalistPeterRinearson.Ananalysisoftheriseofthepersonalcomputerandaruminationontheinternetrevolutiontheninitsinfancy,itwasabestsellerforwhichpublishersPenguinreportedlypaidanadvanceofsome$2.5million.Gatessetasideaboutfourmonthsforthewritingprocess,whichhefoundtobeagenuinechallengethatrequiredhimtofocusonhisthoughtprocessesandrefinehisconclusions.‘MyadmirationforpeoplewhowritebookshasincreasednowthatI’vedoneonemyself,’hewouldlatersay.WriterstheworldovergracefullyacceptedthecomplimentevenastheydreamedofanadvanceamountingtojustasmallproportionofthatwhichGateshadcommanded.Undeterredbyhisfirstexperienceasanauthor,hewroteasecondwell-receivedbook,Business@theSpeedofThought,in1999,lookingattherelationshipbetweencommerceandtechnology.

ANOVELPERSPECTIVE

ThenovelGatesmostadmiresisJ.D.Salinger’sTheCatcherintheRye,the1951taleofsixteen-year-oldHoldenCaulfieldthatisnowregardedasoneofthegreatAmericanliteraryworks.Gatescommented,‘Ididn’tactuallyreadTheCatcherintheRyeuntilIwasthirteen,andeversincethenI’vesaidthat’smyfavouritebook.It’sveryclever.Itacknowledgesthatyoungpeoplearealittleconfused,butcanbesmartaboutthingsandseethingsthatadultsdon’treallysee.’LookingatthingsdifferentlywascertainlyatraitGateshadshowngrowingup,somethingthathe

carriedintoadulthoodandcanbestbeseeninthewayheattackedtheearlycomputersoftwaremarket.

Allofwhichshouldgotoallaythefearsofthosesuspiciousthatcomputersandbookscanhappilyco-existinapost-Microsoftuniverse.Itistruethatsomeofhisinnovationshavehelpedbirthgenerationsfilledwithindividualshappiertostareatascreenlostinagrittyurbanshoot-’em-uporpretendingtobeastarexponentofasporttheyhavenevermasteredinreallife,butGateshimselfcouldnotpersonallydomoretopromotethevalueofreading.However,evenhe–theownerofaspectacularlybeautifultraditionallibrary,remember–concedesthattimemightberunningoutforthevisceraldelightofholdingaphysicalbookinone’shands.‘Digitalreadingwillcompletelytakeover,’hesaidin2011.‘It’slightweightandit’sfantasticforsharing.Overtimeitwilltakeover.’

GATES’SFAVOURITEBUSINESSBOOK

‘ThebestbusinessbookI’veeverread.’

BILLGATESONJOHNBROOKS’SBUSINESSADVENTURES

Asasometimewriteronthesubjectofbusinesshimself,GatesmadeacuriousdeclarationtoPlayboyin1994.Discussingwhetheradditionalyearsspentstudyingatbusinessschoolgiveanadvantagetoaspiringentrepreneurs,hegesturedtothewallsofhisoffice.Aleadinglightofamoderncommercialtsunami,heexhorted,‘Let’slookaroundtheseshelvesandseeifthereareanybusinessbooks.Oops.Wedidn’tneedany.’

Thereisnodoubtmuchtobelearnedfromthefactthattherichestmanintheworldmadehispileafterturninghisbackonacademicstudyandthrowinghimselfintothenitty-grittyofthecommercialworld.Whateverthetextbooksmighthavesaid,Gatesrewrotetherules.HiswordstoPlayboywerethoseofacorporateyounggunrapidlyascendingthegreasypoleofsuccessonhisownterms.Nonetheless,whathesaidwasnotaltogethertrue.

Thefactis,weknowthatGateshasreadplentyofbusinessbooksovertheyears,andhasbeenhappytorecommendseveralofthem,too.Forinstance,heisaself-confessedfanofTheTenCommandmentsforBusinessFailurebyDonaldR.Keough,whohasinhabitedtheupperechelonsofcompaniesincludingCoca-ColaandAllen&Co.Drawingonover

sixtyyearsofexperience,hisbookisdescribedasa‘light-hearted“how-not-to”book’.Gatessaidofit:‘Donpossessesaspecialcombinationofexperience,wisdom,self-confidenceandself-awareness.Hiscommandmentsforfailurewillteachyoumoreaboutbusinesssuccessthanawholeshelffullofbooks.’OtherfavouritesincludeMyYearswithGeneralMotorsbyAlfredSloan,a1963work

bytheCEOofGeneralMotorsthatispartmemoirandpartguideforaspiringtycoons.Gatesoncesaidofit:‘Thisisprobablythebestbooktoreadifyouwanttoreadonlyonebookaboutbusiness.’AndthenthereisBenjaminGraham’sTheIntelligentInvestor(1949),thebookthatsoinfluencedWarrenBuffettandwhichBuffettinturnurgedGatestoread.

ButthevolumethatwinsthegreatestplauditsisanothertitletowhichGateswasdirectedbyBuffett.There’snothingthatwillboostsalesofyourbusinessbookquitelikethesealofapprovalfromabonafideglobaliconandthesometimesrichestmanonearth.Whenitturnsoutthatanotheroccasionalrichestmanontheplanetwastheonewhofirstcommendedittohim,youknowyouareontoawinner.ThatiswhathappenedtoacollectionofJohnBrooks’sarticlespublishedasBusinessAdventuresbackin1969.GatescameacrossitwhenWarrenBuffettpresentedhimwithanoldcopyafterthetwofirstmetbackintheearly1990s.

Sadly,Brooksdiedin1993andsodidnotreapthebenefitsofhisbook’srenewedleaseoflifefollowinganinterviewGatesgavein2014inwhichhepraisedthetitle.Buthewouldsurelyhavebeenheartenedthattherewasstillsuchanappetiteforhisworksomeforty-fiveyearsafteritwasfirstpublished.HavingworkedatTime,BrooksrosetofameasacolumnistontheNewYorker,writingaboutbusinessnotmerelytoappealtobusinessmeninsuitsbutalsotodrawinthelayreader.ThevolumecontainsinsightfulessaysonawiderangeofsubjectsfromtheriseofXeroxtothelessonstobelearnedfromtheepicfailureoftheFordEdselmotorcar,viaanalysisofassortedcorporatescandals.Gatessaidofit:

Brooks’sworkisagreatreminderthattherulesforrunningastrongbusinessandcreatingvaluehaven’tchanged.Foronething,there’sanessentialhumanfactorineverybusinessendeavour.Itdoesn’tmatterifyouhaveaperfectproduct,productionplanandmarketingpitch;you’llstillneedtherightpeopletoleadandimplementthoseplans.

AlessonhelearnedwelloverhismanyyearsasMicrosoft’smainman.

GiveSomethingBack

‘Ingivingmoney,youhavetobeascarefulasyouareinmakingmoney.Youwanttomakesureitgoestogoodcauses.Andso,ifyoujustspenditinanunthinkingway,itcan

begoneinasecond.’BILLGATESINA1998INTERVIEWON20/20

Gates’sparentsimbuedtheirboywithakeensenseofcivicandsocialresponsibility,andhismotherMarygaveupmuchofhertimetovoluntarywork.YettherealityofGates’searlycareerwasthattherewaslittlescopeforcharitableworks,althoughMicrosoftasacorporationhaslongbeeninvolvedingivingtocharity,intheformofmoney,equipmentandemployees’timeandexpertise.

Foralongwhile,Gatesmadelittlesecretofthefactthathisjobasasoftwarepioneercamefirst,andthat‘goodworks’wouldhavetowait.TakehiswordsquotedinFortunemagazinebackin1987:‘I’minaphaseforthenexttenyearswheremyworkismyprimarycontribution.Theideaoffundingotherthingsissometimeoff.’Halfadecadelater,in1992,hegaveajournalistfromthesamepublicationasimilarlong-termoutlook:‘Maybetenyearsfromnowwe’llbefarenoughalong,andI’llputmyheadupandlookaround.’Heessentiallywantedthefreedomtobuildabusinessempirewithoutanydistractions.

However,bytheearly-tomid-1990s,therewasadefiniteshiftinhisapproach.Hispublicutterancesoncharitablegivingreflectedanewoutward-lookingGates,assetagainsttheonewhohadbeenentirelyfocusedongrowinghisbusiness.Thefirstrealstatementofintentcamein1994withtheestablishmentoftheWilliamH.GatesFoundation–aninitialstepintotheworldofphilanthropy,namedafterhisfather,whohelpedruntheorganization.

ItsestablishmentwasinnosmallpartinspiredbyMaryGates,whodiedthatyearafterafightwithbreastcancer.Herinfluenceonherfamilyandtheircommitmenttogivingsomethingbackwasprofound.Considerherson’swords,deliveredinaspeechhemadeatHarvardin2007:

Mymother,whowasfilledwithpridethedayIwasadmittedhere,neverstoppedpressingmetodomoreforothers.Afewdaysbeforemywedding,shehostedabridalevent,atwhichshereadaloudaletteraboutmarriagethatshehadwrittentoMelinda.Mymotherwasveryillwithcanceratthetime,butshesawonemoreopportunitytodeliverhermessage,andatthecloseofthelettershesaid,‘Fromthosetowhommuchisgiven,muchisexpected.’

ThatfinalsentimentwasonethatGateshimselfalmostreplicatedin2006whenannouncinghisimpendingdeparturefromhisfull-timeroleatMicrosoft.Onthatoccasion,hetoldtheassembledjournalists:

Ibelievethatwithgreatwealthcomesgreatresponsibility:aresponsibilitytogivebacktosociety,aresponsibilitytoseethatthoseresourcesareputtoworkinthebestpossiblewaytohelpthosemostinneed.

However,if1994wasthefirstmajorstagingpostinGates’sconversionintophilanthropistextraordinaire,hewasnotyetreadytogivehimselffullytothisnewenterprise.InoneofhisNewYorkTimescolumnsthefollowingyear,forinstance,heseemedtodeferhistransformation,whilealsopointingoutthechallengeshefacedinknowinghowbesttousehiswealth.‘Spendingmoneyintelligentlyisasdifficultasearningit,’hesaid.‘Givingawaymoneyinmeaningfulwayswillbeamainpreoccupationlaterinmylife–assumingIstillhavealottogiveaway.’

By1996,though,hisintentionsseemedtobefirmingupashebegantoutteramore

consistentline.Again,itwasviaTheNewYorkTimesthatherevealedhisthoughts:‘EventuallyI’llreturnmostof[mymoney]ascontributionstocausesIbelievein,suchaseducationandpopulationstability.’TheissuewasforcedayearlaterwhenmediamagnateTedTurnerreceivedwidespreadpublicityaftergivingabilliondollarsofhispersonalfortunetotheUnitedNations.AfterTurnerchallengedGatesandothermembersofthesuper-richtodothesame,GatesrespondedinaninterviewwithBarbaraWaltersonthe20/20show:‘Certainly,mygivingwillbeinthesameleagueasTed’s–andbeyond.’Itwasaboldclaim,buthehadnowcommittedhimself.

Yetstillthereweresomemixedmessages.Thatsameyear,theForbespublisher,RichKarlgaard,notedGates’sreticencetothrowhismoneyatanyoldcause,saying,‘Hehasnotsquanderedmoneyonunworthycharities,despiteenormouspublicpressure.’Meanwhile,aGatescommentconcerningpotentialcandidatesashissuccessoratMicrosofthardlysuggestedmuchenthusiasmtopursueotheravenues:‘Nobodyisgoingtogetmeinterestedinsomeotherjoboractivity,soit’sveryunlikelythatwe’dfacethatchallenge.’

Nonetheless,1997sawtheGatesLibraryFoundationgivesome$200millioninfinanceandthesameagaininMicrosoftsoftwaretopubliclibraries–morethanthefederalgovernmentmanagedthatyear.Regardingthesevenerableinstitutionsasagenciesofsocialequality,inwhichknowledgeandaccesstoinformationarevitalcurrencies,hetoldAmericanLibrariesmagazine:‘SinceIwasakid,librarieshaveplayedanimportantroleinmylife.’Infact,thebookloverandavidreaderwasnowthebiggestdonortolibrariessinceAndrewCarnegie.

Yet,astonishingly,thisnowrepresentsbutarelativelyminorfootnoteinthestoryofGates’smissiontogivebacksomeofthatwithwhichhehasbeenblessed.Asherampeduphisphilanthropyinthe2000s,thepublicperceptionofGatesasaniconofAmericancapitalistconsumerismchangedirrevocably.HesummeduphisdualexistencetoCNNin2010:

I’vebeenverylucky.I’vehadtwojobsthatwereabsolutelyfantastic.WhenIwasyoung,writingsoftware,stayingupallnight,youknow,dreamingaboutthepersonalcomputerIwantedandIthoughtwouldbegreatforeveryone,thatwastheperfectthingforme.AndnowI’veswitched.I’mtotallyfull-timeonthefoundation.Youknow,I’mlovingadvocatingforthesecauses.I’mmakingsurethatthemoneyourfoundationspendsisusedinthebestwaypossible…Ilovedoingthiswork.

RedefiningPhilanthropy

‘Ifyoubelievethateverylifehasequalvalue,[then]it’srevoltingtolearnthatsomelivesareseenasworthsavingandothersarenot.Wesaidtoourselves:“Thiscan’tbetrue,it

deservestobethepriorityofourgiving.”’

BILLGATES,COMMENCEMENTADDRESSATHARVARDUNIVERSITY,2007

Philanthropyisalwaysafluidconcept,butoughttobeunderstoodassomethingdistinctfromcharity.TheworditselfisGreekinoriginandtranslatesas‘theloveofmankind’.Butwhatdifferentiatesphilanthropyfromcharity?Itisnotmerelyscale,althoughphilanthropistsaregenerallydealinginverylargesumsofmoney,whileacharitabledonationcanbesimplyalittleloosechange.Perhapsmorehelpfulistoseecharityasawayofalleviatingthesymptomsofaproblemandphilanthropyasameanstoaddressitsrootcauses.Thedifference,asitwere,betweengivingahungrymanafishtoeatandgivinghimtheequipmentandexpertisetocatchfishhimself.

Americahasarichheritageofindustrialistsreinvestingtheirwealthtothegreatergoodofsociety,withfigureslikeAndrewCarnegieleavingextraordinarylegacies.GateshimselfhascitedJohnD.Rockefellerasaparticularinspiration.Rockefeller(1839-1937)madehisfortuneinoilbutredirectedagreatpartofittowardseducation,medicineandscientificresearch–anapproachwithobviousechoesinGates’sownwork.

IftherewasaroadtoDamascusmomentonGates’sphilanthropicjourney,itwasavisithemadetoAfricain1993–asafariinZaire(nowtheDemocraticRepublicofCongo)–withhisthensoon-to-bewife,Melinda.Gateswas,ofcourse,awell-educatedmanwhoknewinabstractalittleoftheinequalitiesoftheglobe.But,confrontedbyextremepovertyatfirsthand,hisperceptionswerefundamentallychanged.

ThestrugglefacedbymillionsofordinarycitizenswasequallytraumatizingforMelinda,wholatertoldajournalistthatafterreturninghomesheconfidedtoaclosefriend:‘Africachangedmeforever.’Inthemonthsthatfollowedtheirreturn,BillandMelindaeducatedthemselvesinsomeofthekeyissues.ThatmillionsofchildrenweredyingeachyearfromdiseasesthatnoonediedfromintheUSAhadaparticularimpact.Withinayearortwo,Gates’sfocuswasnolongerhomedinonMicrosoft’swell-beingalone.

Ashehasbecomeincreasinglyinvolvedinphilanthropicenterpriseshehasrefinedhisguidingphilosophy.Justasheexertsenormouscontroloverwhatgoesoninhiscommerciallife,helikestokeepatightholdofthestringsinhisphilanthropicundertakings,too.Hehasreferredtohisparticularbrandofbeneficenceas‘catalyticphilanthropy’,fillingagapthathesaysexistsbetweentheprivateandpublicsectors.

Thatisnottosayheunderestimatesthesizeofthetaskinhand.Heunderstandsthatbothprivateinterestsandnationalandsupranationalgovernmentalorganizationsarekeytoresolvingmany,ifnotall,oftheproblemshisfoundationseekstotackle.Asamanwhohasplayedthecapitalistgamewiththebestofthemandcomeoutontop,itisperhapsnosurprisethatheretainsenormousfaithinthepowerofprivatecapital.‘Iamatruebelieverinthepowerofcapitalismtoimprovelives,’hehassaid.Yetheisnotblindtoitsshortcomingseither.WritingforForbesmagazinein2012,heobserved:

Whiletheprivatesectordoesaphenomenaljobmeetinghumanneedsamongthosewhocanpay,therearebillionsofpeoplewhohavenowaytoexpresstheirneedsinwaysthatmattertomarkets.Andsotheygowithout…

Inthesamearticle,hedescribedhowgovernment‘canofferserviceswherethemarketdoesnotandthusprovidesasafetynet’.Inaddition,someproblemsrequireresourcestosolvethemthatevenafoundationasrichasGates’scannothopetoprovidealone.

Additionalbillionsfromgovernmentbudgetsareessential.Nonetheless,herealizesthatbothprivateenterpriseandgovernmenthavelimitstowhattheywillinvestin,withbothfearingtoovercommittoinnovation.Itisinthisgap,heargues,thatyoumay‘findavast,unexploredspaceofinnovationwherethereturnscanbefantastic.ThisspaceisafertileareaforwhatIcallcatalyticphilanthropy.’

Asistobeexpected,Gatesisnotafraidtotakeonthebiggestchallenges.Whereoncehesetouttobringcomputersintoeveryhome,heisnolessambitiousinhisphilanthropistguise.Inaworldwheresome2.5billionpeopleliveonlessthan$2aday(astandardmeasureofpoverty),andwhereincomehassuchadirectcorrelationwithhealth,mortalityandeducationalopportunities,thereisnoshortageofproblemstotakeon.AsheandMelindawroteontheirfoundationwebsite,‘WarrenBuffettoncegaveussomegreatadviceaboutphilanthropy:“Don’tjustgoforsafeprojects,”hesaid.“Takeonthereallytoughproblems.”’

Characteristically,andcrucially,Gatesispreparedtoweathersomefailuresalongtheway.‘Wenotonlyacceptthat,’hehaswritten,‘weexpectit–becausewethinkanessentialroleofphilanthropyistomakebetsonpromisingsolutionsthatgovernmentsandbusinessescan’taffordtomake.’Inhiseyes,theroleofthephilanthropistisquiteasimpleone:itisto‘getthingsstarted’.‘Formeit’sproventhebestjobintheworld,’heaffirmed.‘AsthrillingandhumblingasanythingI’veeverdone.’Hisapproachistoaltruisticallyaddressthegravestproblemsofouragewiththesamevigorousefficiencythatheusescommercially.Andithaschangedthefaceofphilanthropyforever.

THEBILLANDMELINDAGATESFOUNDATION

‘Ourgoalsarefocusedonhelpingthepoorest[globally]andimprovingeducation[intheUS].Wespendhalfourmoneyonglobalhealth.’THEBILLANDMELINDAGATESFOUNDATIONWEBSITE

In1994,GatescashedinsomeofhisMicrosoftstockinordertoestablishtheWilliamH.GatesFoundation,namedafterhisfatherwhohelpedrunit.Forawhilebefore,GatesSnrhadbeenattemptingtoworkthroughthegriefoflosinghiswifebyevaluatingthemassesofcorrespondencesenttohissonrequestingaidofonetypeoranother.Thefoundationbroughtadealmoreformalitytothisarrangement.Then,in2000,GatesJnramalgamatedthisorganizationandhisotherphilanthropicinterestsintotheBillandMelindaGatesFoundation.Asof2014,itwasfarandawaytheworld’srichestphilanthropicinstitution,withover$42billioninassets.Moreover,ithassetthestandardforphilanthropicpracticeinthenewmillennium.

Atthecentreofthefoundation’sworkisanunshakablebeliefthateverylifehasequalvalue.Bill’sfaithinequalityamongmankindowesmuchtohisparents,andin2008hespokeontheCharlieRoseshowabouttheenduringinfluenceofhisfatheronthewaytheorganizationisrun:‘Mydadhassetanexamplebywhathedoes…he’stheonewhoreallygotthefoundationgoing,somydadissomebodyIaspiretoliveupto.’

Inthewordsofitsownwebsite,thefoundationhopes‘tohelpallpeopleleadhealthy,productivelives’.Itteamsupwithanarrayofpartners–governments,commercialenterprisesandnon-governmentalbodies–inorderto‘takeonsometoughchallenges:extremepovertyandpoorhealthindevelopingcountries,andthefailuresofAmerica’seducationsystem’.Tothisend,itishighlyselectiveintheprojectsitadopts,focusingonthosetacklingthebiggestbarrierstopeoplemakingthemostoftheirlives.Italsobacksonlyventureswhereitfeelsitscontributionwillmakeamaterialdifferencetoitschancesofsuccess.Itdoesnot,therefore,contributefundstowardsthefightagainstcanceronthebasisthatsomuchmoneyisalreadyfilteredinthatdirectionthatanyitaddswouldhaveminimalimpact.

GivenGates’sheritage,itisonlytobeexpectedthatthefoundationhasaparticularinterestinfundinginnovativeandexperimentalapproachestoproblem-solving.Forinstance,ithasinvestedindeveloping‘newtechniquestohelpfarmersindevelopingcountriesgrowmorefoodandearnmoremoney;newtoolstopreventandtreatdeadlydiseases;newmethodstohelpstudentsandteachersintheclassroom’.

WithitsheadquartersinSeattle,thefoundationoperatessatelliteofficesinWashington,D.C.,Abuja(Nigeria),AddisAbaba(Ethiopia),Beijing(China),Delhi(India),Johannesburg(SouthAfrica)andLondon(UnitedKingdom).Therearefourmajorgrant-makingprogrammes:aGlobalDevelopmentProgramme,aGlobalHealthProgramme,GlobalPolicyandAdvocacyandaUnitedStatesProgramme.Thelatterschemefocusesoneducationprovisionwhiletheinternationalprogrammesseektoalleviatetheproblemsofhungerandextremepovertyaswellasstrivingtoeradicatediseases(principallythroughmassvaccinationprogrammes).

ThefoundationmakesannualgrantsequivalenttoaboutatenthoftheentireUSaidbudget.In2006,Gates’sfriend(andafoundationtrustee),WarrenBuffett,swelledthecofferswhenhepromisedtodonatesharesinhisBerkshireHathawaybusinesstoavalueofsome$34billion.Employingover1,200people,bySeptember2014thefoundationhasdisbursedatotalof$31.6billioningrantssinceitcameintobeing,including$3.6billionin2013alone,toprojectsinoverahundredcountriesworldwide.AndbaramassivedownturninGates’spersonaleconomicfortunes,themoneyshouldnotdryupforalongtimetocome.Itishisintentiontogiveover95percentofhiswealthtothefoundation,withtheconditionthatitallbespentwithintwentyyearsofthedeathofeitherhimselforMelinda(whicheverislater).

Gateshasinsistedonthesamevigorousapproachtowardstheorganization’sactivitiesashedemandedatMicrosoft.Butinreturnfortheenormousenergyhebringstotheenterprise,hereceivessignificantpersonalrewards.AshetoldBusinessweekin2009:‘IfindthesamemagicelementsthatmademelovemyworkatMicrosoft…Igettolearnnewthings.Butbringingtoppeopletogether,takingrisks,feelinglikesomethingverydramaticcancomeoutofit–that’ssomethingthatthepreviousworkandtheworknowhaveincommon.’Thechallengeofconfrontingaknottyproblem,seekingalogicalsolutionandovercomingwidespreadscepticismtoimplementitisathemecommontobothhiscommercialandphilanthropicactivities.

Asmightbeexpectedofanybodyimbuedwithsomuchinfluence,thefoundationhasitscritics.Therehasbeenmuchscrutinyofitsinvestments,withsomeaccusingit,for

instance,ofsupportingcompanieswithpoorenvironmentalrecordsanddubiouscommercialethics.Inparticular,therehavebeenclaims,rejectedbyGates,thatmoneyhasbeendirectedtopharmaceuticalcompaniesreluctanttosupplytheirproductstothedevelopingworldatareasonableprice.

Hedoes,however,acknowledgethattheoddmisstepisinevitable.HeandMelindawroteinthefoundation’sannualnewsletterin2009:‘Thislackofanaturalfeedbackloopmeansthatweasafoundationhavetobeevenmorecarefulinpickingupourgoalsandbeinghonestwithourselveswhenwearenotachievingthem.’Andinthe2011bookReadingwiththeStars:ACelebrationofBooksandLibraries(editedbyLeonardKniffel),heacknowledged,‘Youknow,inalotofphilanthropy,thingsdon’tgoverywell.’Nonetheless,thefoundationhaseffectedrealchangeforgoodinitsshortlife,frominnovativelibraryschemeswithintheUnitedStatestointernationalvaccinationprogrammesthathavepreventedhundredsofthousands,perhapsmillions,ofprematuredeaths.

JustasGatescameoutofnowheretobecomeaseriousplayerinthetechnologyworld,hehasdoneexactlythesameinthefieldofphilanthropy.AsMichaelEdwards,anexpertinthefield,noted:‘Thecharitysectorcanalmostdisempoweritself;betoogloomyaboutthings…Gatesoffersmoreofapositivestory.Heisarolemodelforotherphilanthropists,andheisthebiggest.’

CreativeCapitalism

‘Howselfishsoevermanmaybesupposed,thereareevidentlysomeprinciplesinhisnature,whichinteresthiminthefortunesofothers,andrendertheirhappinessnecessary

tohim,thoughhederivesnothingfromitexceptthepleasureofseeingit.’

ADAMSMITH,THEWEALTHOFNATIONS,1776

In2008,BillGatesdeliveredaspeechattheinfluentialWorldEconomicForumheldinDavos,Switzerland.Initheexplainedhistheoryof‘creativecapitalism’asthebesthopeofsuccessfullyovercomingmanyofthechallengeshisfoundationconfronts.Atitsheartistheideathatthepublic,privateandnonprofitsectorsworktogether(asignificantdeparturefromtheclassicalmodelofAmericancapitalism)toestablishasysteminwhichtherearerewardsforthosewhoworktoalleviatetheworld’sills.AshetoldhisaudienceinDavos:‘Thishybridengineofself-interestandconcernforotherscanserveamuchwidercircleofpeoplethancanbereachedbyself-interestorcaringalone.’

ItowesmuchtothetheoriesofAdamSmith–oneofthefoundingfathersofmoderneconomics–andespeciallytheideasespousedinhislandmarkwork,TheWealthofNations.AsGatesexplainedit:

Somepeoplemightobjecttothiskindofmarket-basedsocialchange,arguingthatifwecombinesentimentwithself-interest,wewillnotexpandthereachofthemarket,butreduceit.Creativecapitalismtakesthisinterestinthefortunesofothersandtiesittoourinterestinourownfortunesinwaysthathelpadvanceboth.

ThesewerepowerfulwordsfromsuchaniconofpureAmericancapitalism–amanwhobuilthisbusinessfromscratchtobecometherichestpersonontheglobe–andaself-confessedbelieverinthecapitalistmodel.InCynthiaCrossen’s2000work,TheRichandHowTheyGotThatWay,forinstance,hewasquotedthus:‘Peopleunderestimatehoweffectivecapitalismisatkeepingeventhemostsuccessfulcompaniesonedge.’Soitwasstartlingtohearhimlaybaretheshortcomingsofthecashincentiveasanagentofchangethatcanalonecombatallofsociety’sproblems.‘Profitsarenotalwayspossiblewhenbusinesstriestoservetheverypoor,’hesaid.Hesuggestedthatthemarketcaninfactdrivesocialchange,butnotonasimpleprofit-motivebasis;companiescanreapbenefitsthatmightnotbeimmediatelyfinancial.‘Insuchcases,’hecontinued,‘thereneedstobeanothermarket-basedincentive–andthatincentiveisrecognition.Recognitionenhancesacompany’sreputationandappealstocustomers;aboveall,itattractsgoodpeopletotheorganization.’

Hiscommitmentto‘creativecapitalism’seguesintotheareaofintellectualproperty,whichhasprovedparticularlycontroversialduetothevaguenessofthelinesseparatingtheself-interestassociatedwithcapitalismandthepursuitofsocialgood.Hismostrabidcriticshavegoneasfarastoaccusehimofbeingpartofsomeelaborateconspiracybywhichtheeliteofthedevelopedworldkeepdevelopingnationsinthralltothembyguardingtheirpatentsandexpensivelylicensinglife-savingdrugsandcrop-growingtechnologies.Thissortofallegationmaysafelybefiledunder‘paranoia-fuelled’.Rather,Gatesacceptsthatwhateverthefield–fromhisownsoftwaresectortopharmaceuticalsandfoodgrains–researchanddevelopmentiscostly.Assuch,thosewhoundertakeitdemandareturn.

Althoughtechnologicaladvanceshaveimprovedtheworldforeveryone(andGateshasenormousfaithinthepotentialofbiotechnologyinparticulartocontinuethisupwardswing),theextentandrateofimprovementhasbeenunequal.Asheputit:‘Theleastneedyseethemostimprovement,andthemostneedyseetheleastimprovement,especiallythosethatliveonlessthan$1aday.’Heoutlinedpartoftheproblemasfollows:

Whendiseasesaffectbothrichandpoorcountries,trickledownwilleventuallyworkforthepoorest,becausethehighcostofdevelopmentisrecoveredintherichworld,andthenastheygooffpatent,they’resoldformarginalcosttothepoorandeverybodybenefits.

Thatistosay,theclassicalcapitalistmodelensuresthatthepoorestbenefitaftereveryoneelse.Gates’svisionisthatcreativecapitalismwillhelpcurbthisunacceptabledelay.Hissenseofurgencywasevidenttoall:‘Iamanoptimist.ButIamanimpatientoptimist.’

BringYourCelebritytoBear

‘Ihavetoadmit,Ididnotmakeitapriority.’

BILLGATESONLEARNINGOFBONO’SDESIRETOMEETHIM

BillGateshasnottraditionallybeenfamedforhisgreatpersonalcharisma.JohnLennonwasonceaskedifRingoStarrwasthebestdrummerintheworld,towhichhesupposedlyrepliedthathewasnoteventhebestdrummerinTheBeatles.GiventhespectreofSteveJobs,itmightsimilarlybesaidthatGateswasn’teventhemostcharismaticofthecyber-geekCEOs.But,evenifthatistrue,hehasalwaysconfidentlyembracedhisroleasapublicfigure.

Whilehecouldneverimbueasoftwarelaunchwiththatsenseofrock-and-rollanticipationthatJobsachieved,whenitcomestotalkingabouttheworld’sreallybigchallenges,heislucid,consideredandcompelling.Intheinterestsofhisfoundation’sworkhehaseagerlytappedhisownhighprofile,regularlytakingadvantageonanenviablecontactsbookandaddressingthemoversandshakersofthemodernworldonthebiggeststages,suchasattheUnitedNations.

ItisnotalwaysclearhowcomfortableGatesisincourtingcelebrity,butwhereveritcanhelphimachievehisaims,heiscontenttodoso.Forstarters,heknowsthatcelebritybringspublicityandpublicitybringsinfluence.Sohehasusedcelebrity(hisownandthatofothers)inordertoadvocateforthepoorandunseen.Forinstance,inhis2011annualletter–writtenastheinternationaleconomyreeledfromtheimpactsofadevastatingslowdown–hesaid,‘Theworld’spoorestwillnotbevisitinggovernmentleaderstomaketheircase,soIwanttohelpmaketheircase.’

Withoutdoubtthemostprofoundandinfluential‘celebrityhook-up’ofGates’slifeishisfriendshipwithWarrenBuffett.However,perhapsthemostglamorousandheadline-grabbingofrecenttimeshasbeenwithBono,leadsingerofthebandU2andalong-timecampaignerforavarietyofcauses,notleastpovertyandAIDSreliefinAfrica.Theirjoint2005Time‘PersonsoftheYear’accolade(alsoawardedtoMelinda)istestamenttothestrengthoftheirpartnership.

Onpaper,itseemsanunlikelyallianceand,indeed,itsgenesiswasnotpromising.Bonowastheonewhoinitiatedproceedings.HealreadyknewPaulAllenandaskedforanintroduction.Whennothingimmediatelycameoftherequest,thesingerassumeditwasAllenwhowasbeingevasive.Infact,AllenhadmadeanapproachandGateshadnotbeenkeen,believingAllenwastalkingaboutCher’sformerhusband,SonnyBono.

However,whenthepaireventuallymet,theyimmediatelystruckuparapport.Gatesrecalledtheirfirstmeeting:‘Iwaskindofamazedthatheactuallyknewwhathewastalkingaboutandhadarealcommitmenttomakingthingshappen.Itwasphenomenal.Afterthat,we’vebeenbigpartnersincrime.’Bono,meanwhile,hasgoneonrecordtosay:‘Icouldn’tdoanythingthatIdowithouttheGatesFoundation.’

ONELOVE

GatesassistedBonowithhisONEinitiative(‘aninternationalcampaigningandadvocacyorganizationofmorethan6millionpeopletakingactiontoendextremepovertyandpreventabledisease,particularlyinAfrica’)andREDcampaign.ThislatterprogrammeseesmajorinternationalcompaniessuchasConverse,ArmaniandGapco-brandwiththecampaignanddonateacutoftheirsubsequentprofits.Ithas

succeededinraisingseveralhundredmilliondollarstopurchasedrugsforthetreatmentofAIDSsufferers.Whoknewarock-and-rollstarandacomputinggenius

wouldmakesuchapotentteam?

GateshasalsosignificantlyimpactedonBono’sphilanthropicmethodology.SpeakingtoForbesmagazinein2013abouthispassionfordrillingdownintothefactsandstatisticsoftheproblemsfacingtheglobe,hesaid:

That’sjustmepretendingtobeBill.I’mIrish;wedoemotionverywell.You’rejustexperiencingsomeofit,anditcangoonandonandon!I’velearnedjusttobeanevidence-basedactivist,tocutthroughthecrap,findoutwhatworksandfindoutwhatdoesn’twork.Idon’tcomefromahippietraditionof‘let’sallholdhandsandtheworldisgoingtobeabetterplace’.Mything’smuchmorepunkrock.Ienjoythemath,actually.Themathisincredible!

ButperhapsGates’smostimportantexperimentinmixingcelebrityandphilanthropywillbetheGivingPledge,somethingheevolvedalongwithMelindaandBuffett.Focusingonbillionaires,itisaninitiativethatbringstogetherbothvastwealthandinevitablyhighpublicprofiles.ItsrootslieinBuffett’scommitmenttogiveaway99percentofhiswealthtogoodcausesandtheGates’sownvowtodosimilarwith95percent-plusoftheirs.

Thosewhosignuptothepledge–allbillionairesorwould-bebillionaireswereitnotfortheirexistingcharitablegiving–committogivingaway50percentormoreoftheirwealthtogoodcauses.Whileitdoesnotrepresentalegalcontract,itisamoralcommitmentthatfewenterintolightly.LaunchedinrelativesecrecyatadinnerhostedbyDavidRockefelleronbehalfoftheGatesesatRockefellerUniversityinNewYorkin2009,theinitialstellarguestlistincludedbusinessmanandformerNewYorkmayorMichaelBloomberg,WallStreetfinancierGeorgeSoros,TedTurner(whoseearlierchallengetoGatesandhislikewasbeingreturnedtohimwithinterest)andthemulti-facetedOprahWinfrey.

Thecampaignwentpublicin2010andasofJanuary2015,therewerereportedly128signatoriestothepledge.AmongthemisMarkZuckerberg,thefounderofFacebook,whobecameabillionaireagedjusttwenty-three–afeatthatmakesGateslooklikeapositiveslacker.Giventhesimilaritiesintheircareertrajectories,ZuckerbergapproachedGatesabouthowbesttoundertakehisownphilanthropicprojects.Gateshappilyadoptedtheroleofmentoranditisanothercelebrityalliancethatmayyetreapextraordinaryrewardsforthewiderworld.

PhilanthropicAims:ProvidingEducationandEqualityofOpportunity

‘Moneyhasnoutilitytomebeyondacertainpoint.Itsutilityisentirelyinbuildinganorganizationandgettingtheresourcesouttothepoorestintheworld.’

BILLGATES,DAILYTELEGRAPH,2013

Inaworldwhere,toparaphraseGeorgeOrwell,somearemoreequalthanothers,itistellingthatthewealthiestindividualofusallisutterlyappalledattheinequalitiesinresourcesandopportunitythatdivideourplanet.HisdedicationtobridgingthesegapsshonethroughinthecommencementaddresshedeliveredatHarvardUniversityin2007:

Humanity’sgreatestadvancesarenotinitsdiscoveries,butinhowthosediscoveriesareappliedtoreduceinequity.Whetherthroughdemocracy,strongpubliceducation,qualityhealthcare,orbroadeconomicopportunity,reducinginequityisthehighesthumanachievement.

Thiscommitmentmanifestsitselfinseveralways.Hisfoundation,forinstance,isatirelesscampaignerforimprovingeducationabout,andaccessto,familyplanninginternationally.This,itbelieves,isabasichumanright.Meanwhile,itstrivestoprovidefarmersinthedevelopingworldwiththeskillsandtoolstoimprovetheirefficiencyandthusbetterprofitfromtheirlabours.ItisalsoastaunchsupporteroftheAllianceforFinancialInclusion,whichaimstoprovidebankingservicestothevastnumbersaroundtheworldwhoarecurrentlyunbanked.Through,forexample,mobile-phonetechnology,itishopedthatfinancialserviceswillbecomeavailabletotheworld’spoorest,enablingthemtopayforessentialssuchashealthcareandgenerallytobettermanagetheirmoney.

Alltheseinitiativesaredesignedtolessenthenaturaldisadvantagesfacedbythoseborninthedevelopingworld.ButGatesiscertainthateducationabovealliskeytolevellingtheplayingfield.Furthermore,heisintentthatthereshouldbeequalityofeducationalopportunitywithintheUnitedStatesitself,independentofastudent’sfinancialorsocialbackground.Soitisasourceoffrustrationthatthetaleofhis‘droppingout’ofHarvardissoregularlyretold.WritinginTheNewYorkTimesin1996,hesaid:

Itconcernsmetohearyoungpeoplesaytheydon’twanttogotocollegebecauseIdidn’tgraduate.Foronething,IgotaprettygoodeducationeventhoughIdidn’tstaylongenoughtogetmydegree.Foranother,theworldisgettingmorecompetitive,specializedandcomplexeachyear,makingacollegeeducationascriticaltodayasahighschooleducationwasatonetime.

Whenhewasawardedanhonorarydegreebyhisalmamater,theironywasnotlostonhim:‘I’vebeenwaitingmorethanthirtyyearstosaythis:“Dad,IalwaystoldyouI’dcomebackandgetmydegree.”’Asiftoemphasizethathehadactuallybeenacommittedstudentbeforeleavingtopursueotheropportunities,headded,‘IusedtositinonlotsofclassesIhadn’tevensignedupfor.’

Alliedtohisfaithinthepowerofeducationishisbeliefinthepotentialofyouthtoexploitit.Withthisinmind,asheassertedinanotherofhisNewYorkTimescolumns,hebelievesthatchildrenshouldbewellschooledintherudiments:

I’moneofthosepeoplewhothinkskidsoughttolearnhowtomultiplywithapencilandpapereventhoughcalculatorscandoitforthem.Butatthesametime,Ihavenodoubtthatcomputerscanhelpkidsdevelopmoreoftheirmentalpotential.

Hispersonalexperienceasayoungguninthesoftwarebusinessinthe1970sand1980sconvincedhimthatyouthshouldbenobarriertoachievement.‘WhenIwasyoung,Ididn’tknowanyoldpeople,’hetoldWiredin2010.‘Whenwedidthemicroprocessor

revolution,therewasnobodyold,nobody.’Heruefullywentontonote,‘It’sweirdhowoldthisindustryhasbecome.’ButhisdesiretogiveyouthitswingsismostneatlysummedupinaremarkhemadetoMichaelMeyerinNewsweekin1994:‘Youngpeoplearemorewillingtolearn,[to]comeupwithnewideas.’

Gatesisnotblindtotheopportunitiesheenjoyedastheresultofbeingbornintoarelativelywell-offfamilyintwentieth-centuryAmerica.‘Iwasahugebeneficiaryofthiscountry’swillingnesstotakeariskonayoungperson,’hetoldanaudienceatColumbiaUniversityin2009.Self-madeashewas,hehasneverignoredthedebtheowestogoodfortune,anditistobecommendedthathelongstoextendthesameopportunitiestoothers.

PhilanthropicAims:CombatingDisease

‘Adiseaseforwhichthereisnoeffectivetherapyisanunsolvedmystery.’

BILLGATES,THENEWYORKTIMES,1996

Opportunity,however,isworthlessifonedoesnothavethegoodhealthtotakeadvantageofit.Therefore,theGatesFoundation’sothergreatcrusadeistofightdisease–withaparticulareyeonthosethatbesmirchthedevelopingworldbutbycomparisonhardlyregisterintheworld’swealthiestnations.In2005hemadethefollowingmissionstatement:

Globalhealthisourlifelongcommitment.Untilwereducetheburdenonthepoorsothatthereisnorealgapbetweenusandthem,thatwillalwaysbeourpriority.Iamnotsofoolishastosaythatwillhappen.Butthat’sourgoal.

Inordertohaveachanceofsucceeding,hehasgotintobedwithnationalgovernments,internationalorganizationsandpharmaceuticalcompanies,staunchlydefendingthefoundationagainstcomplicityintheincidentalexcessesofanyoftheseotherentities.Furthermore,hetakesacoollyrationalapproachtohowthefoundationspendsitsmoney,alwaystakingintoaccountthereturnoneachinvestment–inotherwords,wherehismoneyislikelytohavethegreatestimpact.Ifthatsoundssomewhatcold-blooded,itshouldalsoberememberedthatitbacksfarriskierenterprisesthanmanyothercharities(letalonegovernments)daresupportwhenheandhisfellowtrusteesareconvincedtheyhaveagenuineshotatsuccess.Itsmodusoperandiwasrevealedinastatementfrom2005:‘Wehavetakenonthetoptwentykillersandforeverythingwedowelookatthecostperlifesavedandrealoutcomesintermsofhowthingsgetimproved.’

Malariahasbeenanaturaltarget,giventhatitisadiseasethatalmostexclusivelyimpactspoornations.WesternEuropewasridofitbytheendofthe1930sanditwasconsideredeliminatedintheUSAin1951,yetin2012thereweresome2.7millionpeopleafflictedwithmalaria,ofwhom627,000died.Nolessthan90percentofcaseswereinsub-SaharanAfrica,with77percentofsufferersagedunderfive.Butthepictureisnotallbleak.Between2000and2012therewasa25percentdeclineinincidenceanda42percentfallindeaths,largelyasaresultofinvestmentindiagnosis,treatmentandprevention.

Thisisthesortofchallenge–onewithavirulentanddevastatingdiseasebutalsoarealhopeofmakinginroadsagainstit–thatthefoundationisdesignedtotakeup.Andithasdonesowithgusto,makingaround$2billioninspecificgrants,aswellasgivingafurther$1.6billiontotheGlobalFundtoFightAIDS,TuberculosisandMalaria.Indeed,AIDSisanotheroneofthefoundation’skeybattlegrounds.Despiteitssignificantimpactonthedevelopedworld,itisdevelopingcountries,andparticularlythoseinsub-SaharanAfrica,thathavesuffereddisproportionately.Forinstance,in2013therewereanestimated35millionpeoplelivingwithHIVorAIDS,ofwhom25millionwereinthatregion.SoitisthattheBillandMelindaGatesFoundationhasmadegrantsof$2.5billionthusfarintheongoingfight.

However,theorganizationdoesnotrestrictitselftothese‘bigname’diseases,additionallyrunningabespokeprogrammetofightneglectedinfectiousdiseases.Asof2015,thisschemetargetedeighteenneglecteddiseasesaffectingintherealmofabillionpeople.Ineachcase,itisthefoundation’sbeliefthattacticsincludingmassdrugadministration,publichealthsurveillanceandvectorcontrol(inotherwords,controllingtheinsectsandwormsthatspreadmanyofthediseasesinquestion)canseriouslyreducetheincidenceandimpactoftheseailments.

Amongthoseconditionsithastakenonareonchocerciasis(riverblindness),amaladycausedbyaparasiticwormthatisrarelymentionedintheWesternpressbutwhichaffects18millionpeopleeachyear,especiallyinAfricaandSouthAmerica.Othertargeteddiseasesincludedenguefever,Japaneseencephalitis,humanpapillomavirus,visceralleishmaniasis(blackfever),hookwormdisease,dracunculiasis(guineaworm),lymphaticfilariasis(elephantiasis)andhumanAfricantrypanosomiasis(sleepingsickness).

Fromhisyouthfulambitiontoputacomputeroneverydesk,theolderGateshasadoptedafargranderandselflessdream–tosavethelivesofmillionsofstrangers.

THEFIGHTAGAINSTPOLIO

‘Youcanactuallytakeadiseaseandgetridofitaltogether,likewearedoingwithpolio.’

BILLGATES,DAILYTELEGRAPH,2011

ItispossiblethatGates’sgreatestachievementwillbetoplayapivotalroleinriddingtheworldofpolioonceandforall.In1988poliowasendemicinabout125countries,rendering350,000peopleparalysedeachyear,mostlychildren.ThatyearsawthelaunchoftheGlobalPolioEradicationInitiative,whichchampionedanimmunizationschemethathasseencasesdropbyanalmostunbelievable99percent.In2012therewerefewerthanathousandnewcasesreportedaroundtheworld,whiletherewasalandmarkannouncementthatIndiawaspolio-free–somethingmanythoughtwasanimpossibleaspiration.Thediseasetodayisendemicinonlythreecountries:Afghanistan,PakistanandNigeria.

Thisachievementshouldnotbeunderestimated.Onlyoncebeforeinhumanhistoryhasadiseaseinfectiousinhumansbeeneradicatedbypurposefulintervention–thefateofsmallpoxinthe1970s.Whilemanyagencieshavebeeninstrumentalinthefightagainstpolio,theGatesFoundationhasbeenamongthemostimportant.Withthescentofcompleteeradicationinhisnostrils,in2013Gatesannouncedplanstospendalmost$2billionoverthefollowingsixyearstoseethejobthrough.

ItisaprojectthatappealstoGates’snaturalinclinationforproblem-solving,yetsuccessisnoforegoneconclusion.Forinstance,in2013therewereaspateofnewcasesinSomaliaandwar-tornSyria,whereseriousoutbreakswouldbehardtocontain.Furthermore,Gateshasfacedpoliticaloppositiontohisendeavours,particularlyinPakistanwheresomeIslamistgroupshavepresentedvaccinationprogrammesasaWesternplottosterilizetheindigenouspopulation.

Nevertheless,Gatesremainsbullishabouthischances.In2013hetoldjournalistNeilTweedie:‘Polio’sprettyspecialbecauseonceyougetaneradicationyounolongerhavetospendmoneyonit;it’sjustthereasagiftfortherestoftime.’Nordoesheintendstoppingthere,insisting,‘Thegreatthingaboutfinishingpolioisthatwe’llhaveresourcestogetgoingonmalariaandmeasles.’

Gatesbeganhiscareerseekingoutbugsincomputerprograms.Polio,though,looksset

tobethetrulygreatbug-fixofhislife.

GatesandGod

‘I’mabigbelieverinreligiousvalues.’

BILLGATES,SPEAKINGON20/20,1998

Comingfromanationwhereespousingunconventionalreligiousbeliefscancauseyouagreatdealofgrief,Gateshasbeensomewhatguardedabouthispersonalfaith.Takehiswordsfromthe20/20interviewquotedabove:‘Iwasraisedreligiously.AndmywifeandIdefinitelybelieveinraisingourkidsreligiously…Asfaras,youknow,thedeepquestionsaboutGod,it’snotsomethingthatIthinkIpersonallyhavetheanswers[to].’

AsachildheattendedtheUniversityCongregationalUnitedChurchinSeattle,andweknowthathememorizedtheSermonontheMount,althoughthatwasanincentivizedachievement.HehasalsoreportedthathereadstheBiblescustomarilyleftinhotelroomsiftherearenoothertextstohand.However,noneofthisapproachestestamenttoaprofoundreligiousbelief.Infact,hemadeseveralstatementsinthe1990sthatsuggestedfairlydeep-seatedreligiousscepticismowingtothelackofaconcreteevidentialbasis(somethingheacknowledgesisinherentinfaithofanysort).So,forinstance,in1997hetoldTime:‘Justintermsofallocationoftimeresources,religionisnotveryefficient.There’salotmoreIcouldbedoingonaSundaymorning.’

Yettherehasalwaysbeenacertainreluctancetoruleoutthepossibilityofagodaltogether.WhenTimeaskedhimifhebelievedinadeity,heresponded,‘It’spossible,youcanneverknowthattheuniverseexistsonlyforme.Ifso,it’ssuregoingwellforme,Imustadmit.’Twoyearsbefore,hehadtoldDavidFrost:‘Intermsofdoingthings,Itakeafairlyscientificapproachtowhythingshappenandhowtheyhappen.Idon’tknowifthere’sagodornot,butIthinkreligiousprinciplesarequitevalid.’AndinthesameyearheacknowledgedapotentialoverlapbetweenscienceandreligionwhentellingLarryKing:‘EventhoughIamnotreligious,theamazementandwonderIhaveaboutthehumanmindisclosertoreligiousawethandispassionateanalysis.’

ThenthereistheinfluenceofMelinda,whowasbroughtupaCatholicandhasremainedwithinthefaithevenasheradvocacyoffamilyplanninginthedevelopingworldhasseenherlockhornswiththeVatican.Meanwhile,inhis2013interviewwithNeilTweedie,GatesspokeoftheneedtositdownwiththePakistaniauthoritiesinordertonegotiatethesafetyofthoseattheforefrontofthepoliovaccinationprogramme,whomhedescribedas‘womenwhoaredoingGod’swork’.

Bythetimehegaveawide-ranginginterviewtoRollingStonemagazinein2014,heremaineddefiantlyonthefence.Hewas,however,notablyunwillingtocompletelydismissthepresenceofagodinhislife.Forinstance,hedescribedthefightagainstglobalinequalityintermsofamoralcrusadeand‘kindofareligiousbelief’.Healsosaid,‘Themoralsystemsofreligion,Ithink,aresuper-important.We’veraisedourkidsinareligiousway.’AndwhenexplicitlyaskedifhebelievesinGod,hesaid:

IagreewithpeoplelikeRichardDawkinsthatmankindfelttheneedforcreationmyths…Nowsciencehasfilledinsomeoftherealm–notall–thatreligionusedtofill.Butthemysteryandthebeautyoftheworldisoverwhelminglyamazingandthere’snoscientificexplanationofhowitcameabout…IthinkitmakessensetobelieveinGod,butexactlywhatdecisioninyourlifeyoumakedifferentlybecauseofit,Idon’tknow.

AsGatesapproachesthelateryearsofhislife,heisperhapslesscertainthaneverastowhethertherewillbeanyonetogreethimoncehistimeonearthhasdrawntoaclose.Hedoes,however,seemcomfortablewiththeideathatreligiousfaithprovidesausefulmoral

frameworkforthosestilltoilinginthisrealm.

TheGatesLegacy

‘Legacyisastupidthing.Idon’twantalegacy.’

BILLGATES,DAILYMAIL,2011

ItisperhapsmodestythatcausesGatestoinsisthedoesn’tcarehowheisremembered,butitisasentimenthehasrepeatedonseveraloccasions.Forinstance,hetoldtheWashingtonPostin1995:‘Idon’thaveanyparticulargoalforhowI’mperceived.I’veneverwrittendownhowIwantpeopletothinkaboutme.’

Whenpushedonthesubject,hehassometimesresortedtoself-deprecatinghumour,tellingCNNin2008:‘Whoknowshowhistorywillthinkofme?Youknow,thepersonwhoplayedbridgewithWarrenBuffet,maybe.Ormaybenotatall.’Meanwhile,hedeliveredthequotationatthestartofthissectioninaninterviewwithjournalistCarolineGraham,beforeadding:‘Ifpeoplelookandseethatchildhooddeathsdroppedfromninemillionayeartofourmillionbecauseofourinvestment,thenwow!’OnesuspectsthatthemorematureGatesislessconcernedwithearningenduringpersonalfamethanheisinleavingtheworldinahealthierstatethatwhenhearrived.Thetruthis,though,thatheisoncoursetodoboth.

AlthoughGates’sMicrosoftcareerwasindubitablydriven–atleastinpart–byahungerforacclaimandfinancialsuccess,hehasneverbeensomeoneundulyconcernedwithwhatothersthinkabouthim.Afterall,hehimselfhaslittletimeforreflectingonpastsuccesses,andheisalsosomethingofaniconoclast.Furthermore,hislonglifeinthepubliceyehasseenhimbecomescepticalofthewayone’slifemaybespuntofitsomeoneelse’sagenda.AshetoldNewsweekin1999:

Whensomebody’ssuccessful,peopleleaptosimpleexplanationsthatmightmakesense.Soyougetthesemyths.Peoplelovetohaveanylittlestory.Yes,I’mintense.I’menergetic.Iliketounderstandwhatourmarketpositionis.Butthenitgetsturnedintothis–‘theultra-competitor’.It’ssomewhatdehumanizing.Ireadthatandsay,‘Idon’tknowthatguy.’

Gatesisoneofthatrarebreedwhogenuinelyappearstoinhabitthepresentmoment,thoughalwayswithaneyecasttowhathemightachievenext.Todwellonwhatothersmightmakeofhiseffortswhenheisnolongeraroundwouldsimplydistractfromthemoreimportantbusinessofmakingthebestofnow.Whilehehasbeendriven,focusedandsometimesruthlessinpursuitofhisgoals,hehasalsobeenblessedwithaninherentjoiedevivreandoptimism.AsheputitinTheRoadAhead:‘Ithinkthisisawonderfultimetobealive.Therehaveneverbeensomanyopportunitiestodothingsthatwereimpossiblebefore.’

Itwasathemehetouchedupontwoyearslater,ina1997columnforTheNewYorkTimes:

Sciencefictionsuggeststhatsomedayhundredsofpeoplewillfillahugestarshipandspendgenerationstravelingtoastar…Maybeso,butI’mnotgettingonthatship!I’mstickinghere.Wehavelakes.Wehaverivers.Wehavemountains.Earthisamazingcomparedtowhat’savailableinthesurroundingfewlightyears.

Itisnodoubtagoodthingthatlegacydoesnotplayuponhismindtoomuch,sincehowtheworldremembersusoncewe’regoneisonethingthatnoneofuscancontrol–notevenBillGates.Butashetransitionsintothelaterstagesofhislife,itseemslikelythathistorywilllookfavourablyuponhim.Heisbynomeansthefirstpersontomakeanameandafortuneincommerceandthentocreateasecondlifeasaphilanthropist,butnobody

hasdoneitwithasmuchpanacheforahundredyearsormore.Evidenceofthehighesteeminwhichheisnowheldcameinapollconductedinearly2015byYouGovforTheTimesnewspaper.Almost14,000peoplefromthirteencountriesaroundtheworldwereaskedtonamethepersontheymostadmired.Gatesemergedastheclearwinner,claiminga10.1percentshareofthevote,aheadof9.3percentforBarackObama.Nobodyelsepolledmorethan4percent.

AsthesefinalsentencesaretypedusingMicrosoftWordonacomputerpoweredbyWindows,itisdifficulttorememberatimewhenGates’sproductsdidnotinfluenceoureverydaylives.Thathisbillionsmayyetextendandimprovethequalityoflifeformillionsoftheworld’smostdeprivedpeopleisampletestamenttoalifewelllived.That,surely,islegacyenough.

SelectedBibliography

Crossen,Cynthia,TheRichandHowTheyGotThatWay:HowtheWealthiestPeopleofAllTime–FromGenghisKhantoBillGates–MadeTheirFortunes,CrownBusiness(2000)

Erickson,JimandWallace,James,HardDrive:BillGatesandtheMakingoftheMicrosoftEmpire,JohnWiley&Sons(1992)

Gates,Bill,Business@theSpeedofThought:SucceedingintheDigitalEconomy,Penguin(1999)

Gates,Bill,TheRoadAhead,Viking(1995)

www.gatesfoundation.org

www.gatesnotes.com

Ichbiah,DanielandKnepper,SusanL.,MakingofMicrosoft:HowBillGatesandHisTeamCreatedtheWorld’sMostSuccessfulSoftwareCompany,PrimaPublishing(1991)

Kinsley,Michael,CreativeCapitalism,Simon&Schuster(2008)

Lammers,Susan(Ed.),ProgrammersatWork,MicrosoftPress(1986)

Levy,Steven,Hackers:HeroesoftheComputer,O’ReillyMedia(2010)

Lowe,Janet,BillGatesSpeaks:InsightfromtheWorld’sGreatestEntrepreneur,JohnWiley&Sons(1998)

Manes,Stephen,Gates:HowMicrosoft’sMogulReinventedanIndustry–AndMadeHimselftheRichestManinAmerica,Doubleday(1993)

Rogak,Lisa(Ed.),ImpatientOptimist:BillGatesinHisOwnWords,HardieGrantBooks(2012)

Slater,Robert,MicrosoftRebooted:HowBillGatesandSteveBallmerReinventedTheirCompany,Portfolio(2004)

Stross,RandallE.,TheMicrosoftWay:TheRealStoryofHowtheCompanyOutsmartsitsCompetition,Sphere(1998)

Zachary,G.Pascal,Showstopper!:TheBreakneckRacetoCreateWindowsNTandtheNextGenerationatMicrosoft,Simon&Schuster(1994)

GetthewholeHowtoThinkLikeseries!