In the widely anticipated restructuring plan, CEO Steve Ballmer has slimmed down the number of divisions, wants to unify products and services, and have all divisions work together towards a single Microsoft strategy. That single strategy is the devices and services ambition outlined towards the end of 2012.
First off, note that Ballmer stays in his top slot, regardless of market pressure for change. The question of whether he is the right person to take Microsoft into its next life stage, as a force in the mobile and cloud spaces against the likes of Apple and Google, has not been addressed.
The major change is the move to organise the business by horizontal function – e.g. Engineering, Marketing, Business Development, Advanced Research and Evangelism (plus others). Divisions such as Windows, and Server and Tools are out, to be replaced by a single Engineering operation operating across four areas – Operating Systems, Applications, Cloud and Devices – and focussed purely on technology, rather than divisional marketing and sales initiatives.
This structure unites all functions in one area – all operating systems are being pulled into a single division for example, ditto hardware, productivity and comms tools and so on. It sounds like a positive move to address the problem of silo’d product sets. And it is a clear attempt to dampen the legendary politics and internecine fighting which has held Microsoft back, while promoting better collaboration. However, you cannot eliminate in-fighting and malaise just by shifting people and products around. That demands cultural and individual-level change and that takes precious time.
While a lot appears to have changed, much stays the same - there is nothing about reducing complexity by eliminating poor performing or non-strategic products for example, and that could be a drag on the innovation and efficiency drivers that are core to the reorganisation. And the core cadre that forms the second layer of management remains largely the same even though the roles and titles have shifted. Microsoft is changing but it may not be far or fast enough.