The Ballmer Barricade: When Is Enough Too Much for Microsoft?

We've seen this before.

We humans, that is. The Bible. Shakespeare. It's a theme as old as time. The flawed leader who tries to fix things himself (it always seems to be guys, but that will change - probably - as women accede to greater positions of power).

But things dont get better, because, really, his leadership is the core of the problem. So he fires (or otherwise eliminates) his top assistant or the person who presents the greatest threat to his hold on leadership. Which only puts more focus on his inadequacies.

History. Politics. Sports. Business. The story remains the same. And it usually doesnt end well for The Big Guy.

Now, not ending well in this case is a concept steeped in relativity. Steve Ballmer, CEO of Microsoft, should he finally acknowledge that he is not getting the job done after 12 years of trying (unlikely) or is forced out by the board (at least theoretically possible)will walk away with somewhere north of a billion or so. Which should suffice for whatever he has in mind for the remainder of his days. And is a lot better than the end suffered by all those Biblical begats or your garden variety royal younger brother in Britain, France or China.

The fact remains, however, that Microsoft is still looking for its next act. And there are not a lot of rocks left in the Pacific northwest, a notoriously rocky region, under which the company has not yet sniffed.

We get it. Ballmer wants to worthy of the trust Bill Gates bestowed upon him. Wants to secure his own legacy. But sometimes things just dont work out the way we want. Even if we actually graduated from Harvard, unlike our predecessor, who dropped out.

And it's too bad, because Microsoft, though it does not engender the same feelings of devotion enjoyed by Apple, is a global treasure. And a valuable asset is a terrible thing to waste. Especially when the reason may have more to so with pride and obstinacy and all those other things covered in the Bible and Shakespeare that have a little to do with management and a lot to do with human frailty. JL

Richard Waters reports in the Financial Times:

Steve Ballmer’s leadership of Microsoft has been thrown into the spotlight by the sudden departure of the software company’s best-regarded engineering chief and the man seen as its most likely heir apparent, according to close followers of the company.
Steven Sinofsky, head of the company’s core PC operating system business, left late on Monday, little more than two weeks after completing Microsoft’s most important product launch for nearly 20 years with Windows 8.

A person close to Microsoft said the departure was not linked to customer reaction to Windows 8. Although the new software has received only a lukewarm reception so far from the business users who are Microsoft’s main customers, most analysts say that it will be some time before its success can be judged.

The loss of an executive who had been credited with bringing a new rigour to Microsoft’s engineering processes has thrust Mr Ballmer to the fore as the company launches its full counter-offensive against Apple in tablets and smartphones.

“All eyes are on Ballmer now to pull this strategy together,” said Al Hilwa, an analyst at IDC, a tech research firm.

Simmering dissatisfaction among some investors over the long malaise in Microsoft’s share price has put pressure on Mr Ballmer as his 12-year period at the top has progressed, though those concerns have been less apparent in recent months as Microsoft has hit a series of important product milestones and won stronger reviews for some of its latest software.

The company’s board also pressured Mr Ballmer two years ago to overhaul his senior management group to boost the company’s performance, prompting a series of high-level departures.

Mr Sinofsky had emerged as Microsoft’s most effective engineering manager after being brought in to head the Windows division in the wake of Windows Vista, a product that was delayed and scaled back multiple times during its development. However, he was known as an abrasive executive whose style created friction with other top managers at the company, effectively ruling him out as an eventual successor to Mr Ballmer, according to one person familiar with the company’s thinking.

The departure reflects an attempt by Mr Ballmer to bring more cohesion to his senior management group as he tries to overcome old divisional rivalries in the company, several analysts said.

It echoes the recent departure from Apple of senior software executive Scott Forstall and highlights common challenges for both companies as they try to create products that more seamlessly combine hardware, software and services, said Charles Golvin, an analyst at Forrester Research. “This is an area where Microsoft has to improve, but is far behind,” he said.

Mr Ballmer has taken direct management control of the Windows business himself this week. The company has put a new management structure in place for its operating system business, dividing Mr Sinofsky’s engineering and business responsibilities between two more junior executives and leaving Mr Ballmer in overall charge.