As anticipated, Microsoft CEO Steve Ballmer has announced a reorganization of the company. Actually, he called it a "far-reaching realignment," and the goal is to set the stage for faster innovation in a fast-changing world.
Ballmer is convinced this so-called realignment will help the company better execute its strategy to deliver a family of devices and services that "empower" consumers and enterprises alike.
"About a year ago, we embarked on a new strategy to realize our vision, opening the devices and services chapter for Microsoft. We made important strides -- launching Windows 8 and Surface, moving to continuous product cycles, bringing a consistent user interface to PCs, tablets, phones and Xbox -- but we have much more to do," Ballmer said.
"Going forward, our strategy will focus on creating a family of devices and services for individuals and businesses that empower people around the globe at home, at work and on the go, for the activities they value most."
Ballmer went on to say that improving performance has three big dimensions: focusing the whole company on a single strategy, improving capability in all disciplines and engineering/technology areas, and working together with more collaboration and agility around common goals.
"This is a big undertaking. It touches nearly every piece of what we do and how we work," Ballmer said. "It changes our org structure, the way we collaborate, how we allocate resources, how we best empower our engineers and how we market."
With that, Ballmer announced there will be four engineering areas: OS, Apps, Cloud, and Devices. Microsoft will keep Dynamics separate. The company will also increase focus on its engineering systems, processes, and tools to improve the productivity of every engineer and to facilitate engineering collaboration and contribution across the company.
Ballmer outlined a slew of executive shakeups, including the retirement of 20-year Microsoft veteran Kurt DelBene, who has been a big part of taking Office to the cloud . Finally, Ballmer discussed changes to the processes: each major initiative of the company -- product or high-value scenario -- will have a team that spans groups to ensure the company succeeds against its goals.
A Nimble Giant?
Rob Helm, an analyst at Directions on Microsoft, called the reorganization a positive move that could help Microsoft execute faster on the technology side of the business. But how it will ultimately pan out remains to be seen. (continued...)
Posted: 2013-07-12 @ 11:18am PT
MS is doing what it has always done....trying to catch up.