A CONVERSATION WITH BILL GATES

Flying in to Paris February 1st, on the leg of his 4-day European VISTA launching
tour, MICROSOFT Chairman and Co-founder, Bill GATES, was Guest of Honour at
the 2007 Salon de l'Entreprise, held in the Paris Congress Center.

Before an audience of 4000 in the huge Palais de Congrès auditorium, he also addressed as their sponsor,
the young winners of the 'Masters of Creation' contest, shedding light on his early career in answer to queries raised by the Professional Panel which included French Filmmaker Luc BESSON.

Were his first steps in setting up a business at the age of 19 met with scepticism ? Gates laughed that indeed they were, evoking his parents' anger at his leaving university without any degree to work on his own project, adding that it was even impossible for thim to a get a credit card. But that wasn't going to stop him, spurred on as he was, by the excitement, and the sense of being lucky to have the idea of creating his software before anyone else and getting it there first !

"Sure, he added, it was a risk, and setting up a company always is - but you've got to enjoy that part of it. Even though my risk was low. I didn't have a family to raise then. And Harvard could always take me back later - I wasn't kicked out."

But the main factor of the risk is having to convince, he added. He had to convince his parents (he was under 20 when he started his softward company with Paul Allen in a garage in Albuquerque), as well as his friends, to work with him and then his customers to buy the product. Persistence was essential.

His greatest source of worry was how to meet the salary requirements of the friends he had hired and often he would try to figure that out on a napkin.

To make his business a success, he realised that a mix of skills was needed : you have to understand business, be a good salesperson - not only to convince people for credit but also to get people involved in the project and form an initial team of persons. You have to be convincing and have more skills that formally you were trained to have.
Gates himself, was inspired by what he calls 'great entrepreneurs' such as Ken OLSEN, who started DIGITAL EQUIPMENT and Hewlett Packard's Warren BUFFET, who often shared advice with him in a sounding board-type relationship, when fledgling and established bosses got together.

"What triggers on excitement is the way the company develops and if you pick the most demanding customers - winning them over means you can go on. Another feature needed is to track quality and be willing to tap the
global market. In doing that, you have to adapt your business outlook to local cultures.
For example, in Japan, I saw that 20% of what you do has to be done differently to meet the country's expectations so you have to figure that out and ammend your business outlook accordingly."

Re management principles : "Technology is basically a tool. It empowers principles and it can be used to do staff surveys".

One principle he felt crucial to observe was : "Bad news should travel FAST.
There is a tendency to not want to share that type of news but you have to expose it to advance. With good news, there's nothing to do but just smile."

Mistakes and Failures :

As a pioneer in the software market, Gates revealed that in the beginning, he had to make mistakes, which he did plentifully, involving delivery and testing matters. But if you hire some smart people they can do anything, was his motto.
That was wrong, he found out - just like putting engineer-types in high management positions. You have to get the right mix of engineers and non-engineer types to make things move smoothly. Make the products strong so that they can keep up the momentum even if mistakes occur.

"The pace of innovation in technology is accelerating. It is important to have a business model that incorporates it."

"When we set up Microsoft in 1975, we decided that software would be the key factor. And that foresight turned out right. Because software is everywhere nowadays : in telephony, VOIP, in video games qnd so on...

Microsoft made a fundamental bet in 1975 that software would be a key element. This is further evident in research bringing TV to internet - even robots, taking care of the elderly, security. This reminds us that it is a business of changes.
Plans now are to take web and turn it from 2-dimensional to 3-dimension (Virtual store) which is more reactive and genders greater depth.

Business models must incorporate room for innovations that arise like for example, blogs have and Speech-voice.
Natural interfaces will make it richer and change business models - and activities such as the press or stores will be influenced by that.

That is why now is a great time to create a business! "

Answering a question about historical collaboration with Europe, Gates proferred : "This goes back to the theory of the 'flat world' as each country participates more; this is positive. We are all just contributing on a positive basis."

"Asia is a huge market that has to be tapped more. Previously Asian countries did not participate so much in the world market because of lack of educational standards : A little more specialisation and that's part of the new business."

About the future : How is VISTA a succeessor to Windows XP ?

"The key things we introduce are - parental control, high definition television.

New digital workstyles and lifestyles are advancing year by year, and the pace is getting faster. So the business plan too must change rapidly to adapt."

The Bill and Melinda Gates Foundation - " I promised that by mid - 2008, I would work full-time on my foundation and only part-time on my microsoft activity."

"Global health is the main focus of my foundation."

"I'm very optimistic about this, that we will get an innoculation against malaria and Aids. This is even a wilder dream than the one I had with computing".

Social and Humanitarian purpose.

"Microsoft has a good corporate reputation : it helps the blind with screen readers; helps the handicapped.There are still a lot of problems to solve but I'm very enthusiastic about solving them".

When filmmaker Luc Besson asked him whether it was his aim to have big corporations involve themselves in environmental issues, Gates replied : "Enterprise thrives best in an environment where you create the best conditions for that environment.
Tapping energy for business is the right way. We found ways of obtaining help in the form of contributions from businesses.

We've been able to tap into energy of pharmaceutical companies, for instance, to help in health issues.

This is a way to keep a 98% innovation environment which is what business needs.

We have to be fast-moving and we like to surprise people.

Being an entrepreneur requires persistence, and encouraging others to persist."

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