From: Steve Ballmer
To: Microsoft - All Employees
Date: July 11, 2013, 6 a.m.
Subject: One Microsoft
To: Microsoft - All Employees
Date: July 11, 2013, 6 a.m.
Subject: One Microsoft
Today, we are announcing a far-reaching realignment of the company
that will enable us to innovate with greater speed, efficiency and
capability in a fast changing world.
Today’s announcement will enable us to execute even better on our
strategy to deliver a family of devices and services that best empower
people for the activities they value most and the enterprise extensions
and services that are most valuable to business.
This company has always had a big vision — to help people realize
their full potential. In the earliest days, it was by putting a PC on
every desk and in every home. We’ve come farther than we could have
imagined. The impact we have collectively made on the world is
undeniable, and I am inspired when talented new hires say they chose
Microsoft because they want to change the world — that’s what we do
today, and that’s what we’ll do tomorrow.
Sharpening Our Strategy
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.
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.
We will do this by leveraging our strengths. We have powered devices
for many years through Windows PCs and Xbox. We have delivered
high-value experiences through Office and other apps. And, we have
enabled enterprise value through products like Windows Server and
Exchange. The form of delivery shifts to a broader set of devices and
services versus packaged software. The frontier of high-value scenarios
we enable will march outward, but we have strengths and proven
capabilities on which we will draw.
This memo
shows you how far we have developed our thinking on our strategy for
high- value activities based on devices and services delivery.
Driving Our Success
It is also clear to me and our leadership that we must do an
extraordinary job to succeed in this modern world. We have delivered
many great products and had much success in market, but we all want
more. That means better execution from product conceptualization and
innovation right through to marketing and sales. It also means
operational excellence in cloud services, datacenter operations, and
manufacturing and supply chain that are essential in a devices and
services world. To advance our strategy and execute more quickly, more
efficiently, and with greater excellence we need to transform how we
organize, how we plan and how we work.
Improving our performance has three big dimensions: focusing the whole
company on a single strategy, improving our capability in all
disciplines and engineering/technology areas, and working together with
more collaboration and agility around our common goals.
This is a big undertaking. It touches nearly every piece of what we do
and how we work. It changes our org structure, the way we collaborate,
how we allocate resources, how we best empower our engineers and how we
market.
One Strategy, One Microsoft
We are rallying behind a single strategy as one company — not a
collection of divisional strategies. Although we will deliver multiple
devices and services to execute and monetize the strategy, the single
core strategy will drive us to set shared goals for everything we do. We
will see our product line holistically, not as a set of islands. We
will allocate resources and build devices and services that provide
compelling, integrated experiences across the many screens in our lives,
with maximum return to shareholders. All parts of the company will
share and contribute to the success of core offerings, like Windows,
Windows Phone, Xbox, Surface, Office 365 and our EA offer, Bing, Skype,
Dynamics, Azure and our servers. All parts of the company will
contribute to activating high-value experiences for our customers.
We will reshape how we interact with our customers, developers and key
innovation partners, delivering a more coherent message and family of
product offerings. The evangelism and business development team will
drive partners across our integrated strategy and its execution. Our
marketing, advertising and all our customer interaction will be designed
to reflect one company with integrated approaches to our consumer and
business marketplaces.
How we organize our engineering efforts will also change to reflect
this strategy. We will pull together disparate engineering efforts today
into a coherent set of our high-value activities. This will enable us
to deliver the most capability — and be most efficient in development
and operations — with the greatest coherence to all our key customers.
We will plan across the company, so we can better deliver compelling
integrated devices and services for the high-value experiences and core
technologies around which we organize. This new planning approach will
look at both the short-term deliverables and long-term initiatives
needed to meet the shipment cadences of both Microsoft and third-party
devices and our services.
This means we will organize the company by function: Engineering
(including supply chain and datacenters), Marketing, Business
Development and Evangelism, Advanced Strategy and Research, Finance, HR,
Legal, and COO (including field, support, commercial operations and
IT). Each discipline will help drive our overall strategy. Each
discipline will also be charged with improving our core capabilities in
its area. We must improve in all aspects of the business.
There will be four engineering areas: OS, Apps, Cloud, and Devices. We
will keep Dynamics separate as it continues to need special focus and
represents significant opportunity. We will consolidate our technologies
coherently into these groups pulling together some things that have
been spread out in our current BG structure like cloud infrastructure,
operating systems, mail, and identity, to name a few. Some of these
changes will involve putting things together and others will involve
repartitioning the work, but in all instances we will be more coherent
for our users and developers. We have resolved many details of this org,
but we still will have more work to do. Undoubtedly, as we involve more
people there will be new issues and changes to our current thinking as
well. Completing this process will take through the end of the calendar
year as we figure things out and as we keep existing teams focused on
current deliverables like Windows 8.1, Xbox One, Windows Phone, etc.
To improve engineering pace and quality, we will increase focus on our
engineering systems, processes, and tools to improve the productivity
of every engineer and to facilitate engineering collaboration and
contribution across the company. Our engineering culture and new
structure will enable more cross- group contribution, while maintaining
confidentiality of some projects as needed. We will improve the approach
we use to get MSR involved in product development, building on and
enhancing our significant strengths there.
Organizing for Speed and Strategic Alignment
Specifically, our teams and their leaders will be these:
- Operating Systems Engineering Group. Terry Myerson will lead this group, and it will span all our OS work for console, to mobile device, to PC, to back-end systems. The core cloud services for the operating system will be in this group.
- Devices and Studios Engineering Group. Julie Larson-Green will lead this group and will have all hardware development and supply chain from the smallest to the largest devices we build. Julie will also take responsibility for our studios experiences including all games, music, video and other entertainment.
- Applications and Services Engineering Group. Qi Lu will lead broad applications and services core technologies in productivity, communication, search and other information categories.
- Cloud and Enterprise Engineering Group. Satya Nadella will lead development of our back-end technologies like datacenter, database and our specific technologies for enterprise IT scenarios and development tools. He will lead datacenter development, construction and operation.
- Dynamics. Kirill Tatarinov will continue to run Dynamics as is, but his product leaders will dotted line report to Qi Lu, his marketing leader will dotted line report to Tami Reller and his sales leader will dotted line report to the COO group.
- Advanced Strategy and Research Group. Eric Rudder will lead Research, Trustworthy Computing, teams focused on the intersection of technology and policy, and will drive our cross-company looks at key new technology trends.
- Marketing Group. Tami Reller will lead all marketing with the field relationship as is today. Mark Penn will take a broad view of marketing strategy and will lead with Tami the newly centralized advertising and media functions.
- COO. Kevin Turner will continue leading our worldwide sales, field marketing, services, support, and stores as well as IT, licensing and commercial operations.
- Business Development and Evangelism Group. Tony Bates will focus on key partnerships especially our innovation partners (OEMs, silicon vendors, key developers, Yahoo, Nokia, etc.) and our broad work on evangelism and developer outreach. DPE, Corporate Strategy and the business development efforts formerly in the BGs will become part of this new group. OEM will remain in SMSG with Kevin Turner with a dotted line to Tony who will work closely with Nick Parker on key OEM relationships.
- Finance Group. Amy Hood will centralize all product group finance organizations. SMSG finance, which is geographically diffuse, will report to Kevin Turner with a dotted line to Amy.
- Legal and Corporate Affairs Group. Brad Smith will continue as General Counsel with responsibility for the company's legal and corporate affairs and will map his team to the new organization.
- HR Group. Lisa Brummel will lead Human Resources and map her team to the new organization.
As part of these changes, Kurt DelBene will be retiring from
Microsoft. Kurt has been a huge part of our success in evolving Office
to be a great cloud service, and is a key member of my leadership team. I
can’t express enough gratitude for the work he’s done for the company,
and I will truly miss him. Kurt is a truly amazing leader and a special
person. His contributions to Microsoft over 20+ years can inspire us
all.
Craig Mundie will be stepping off the SLT to devote 100% of his time
to a special project for me through the end of this calendar year.
Beginning in 2014, Craig will continue as a consultant through his
previously agreed upon departure date at the end of calendar 2014.
Also at this time, Rick Rashid will step away from running Microsoft
Research and move into a new role driving core OS innovation in our
operating systems group. Rick created MSR, the most amazing computer
science research institution in the world. We owe him so much for that.
He has a great team to assume the mantle, and it is exciting to have
Rick return to his roots in OS to help propel us forward.
How We Work
The final piece of the puzzle is how we work together and what
characteristics this new Microsoft must embody. There is a process
element and a culture element to discuss.
Process wise, each major initiative of the company (product or
high-value scenario) will have a team that spans groups to ensure we
succeed against our goals. Our strategy will drive what initiatives we
agree and commit to at my staff meetings. Most disciplines and product
groups will have a core that delivers key technology or services and
then a piece that lines up with the initiatives. Each major initiative
will have a champion who will be a direct report to me or one of my
direct reports. The champion will organize to drive a cross-company team
for success, but my whole staff will have commitment to the
initiative’s success. We will also have outgrowths on those major
initiatives that may involve only a single product group. Certainly,
succeeding with mobile devices, Windows, Office 365 and Azure will be
foundational. Xbox and Bing will also be key future contributors to
financial success. Our focus on high-value activities — serious fun,
meetings, tasks, research, information assurance and IT/Dev workloads —
also will get top-level championship.
Culturally, our core values don’t change, but how we express them and
act day to day must evolve so we work together to win. The keys are the
following:
Nimble
In a world of continuous services, the timeframe for product releases,
customer interaction and competitive response is dramatically shorter.
As a company, we need to make the right decisions, and make them more
quickly, balancing all the customer and business imperatives. Each
employee must be able to solve problems more quickly and with more
real-time data than in the past.
Communicative
In the new, rapid-turn world, we need to communicate in ways that
don’t just exchange information but drive agility, action, ownership and
accountability.
Collaborative
Collaborative doesn’t just mean “easy to get along with.”
Collaboration means the ability to coordinate effectively, within and
among teams, to get results, build better products faster, and drive
customer and shareholder value.
Decisive
As a global company with literally billions of diverse customers in an
accelerating business environment, we must have a clear strategic
direction but also empower employees closest to the customer to make
decisions in service of the larger mission. This is tricky in a big
company, but it is the key to higher levels of productivity, growth and
customer satisfaction.
Motivated
In our industry, every day brings more challenges and more
opportunities than the day before. But we have a unique chance to make
the lives of billions of people better in fundamental ways. This should
inspire all of us — those who love making products and services, those
who love engaging with customers, and those who love planning and
running our company in the most effective way possible. We want people
who get up each morning excited to make Microsoft better — that’s how we
come closer to fulfilling the potential of all people around the globe.
Our leadership team has discussed these cultural aspects a lot and is
committed. In my own staff meetings, we are modeling these new
characteristics yet also find ourselves occasionally slipping back. One
strategy, united together, with great communication, decisiveness and
positive energy is the only way to fly.
Seizing Our Unique Opportunity
Together, we have created great products and great success, but we all
want more. That means a strategy to deliver a family of devices and
services that best enable people for the activities they value most and
the enterprise extensions and services that are most valuable to
business. A new structure to
bring these to market faster. Stronger centralized services so we can be
more efficient and effective. Priority focus areas, short and long
term. New characteristics of how we work together. In other words,
better execution and innovation through strategy and goal and discipline
and engineering coherence. One Microsoft all the time.
Across Microsoft, we are facing incredible new opportunities. As
devices become further integrated into everyday life, we will have to
create new and extraordinary experiences for our customers on these
devices. We are going to focus on completely reinventing experiences
like creating or viewing a creative document and what it means to
communicate socially at home or in meetings at work. We are going to
immerse people in deep entertainment experiences that let them have
serious fun in ways so intense and delightful that they will blur the
line between reality and fantasy. And as we develop these new
experiences, we will also support our developers with the simplest ways
to develop apps or cloud services and integrate with our products. We
will help businesses that find themselves in a new world of
ever-mounting information to manage that information through greater
enterprise information assurance. We will make these high-value
activities priorities in our strategy.
Lots of change. But in all of this, many key things remains the same.
Our incredible people, our spirit, our commitment, our belief in the
transformative power of technology — our Microsoft technology — to make
the world a better place for billions of people and millions of
businesses around the world. It’s why I come to work inspired every day.
It’s why we’ve evolved before, and why we’re evolving now. Because
we’re not done.
Let’s go.
Steve
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