Leading Culture Change at Microsoft Western Europe

In 2023, Cindy Rose, President of Microsoft Western Europe, faced a critical decision. Rose grappled with the potential impact of widespread layoffs on psychological safety and the cultural transformation she had championed since her arrival. When Rose had first joined MSWE, her leadership team had faced significant challenges around culture, motivation, and team dynamics; Rose had worked diligently to change the culture across MSWE to foster a collaborative and innovative environment. Now, she wondered: Would these layoffs undo all the hard work? Could the cultural shift she had nurtured sustain the organization through this tough period? The case examines Rose’s strategies for building psychological safety and transforming organizational culture, and the role of a General Manager in engaging people and achieving performance amidst profound change.