Ballmer tightens death grip on Microsoft with major revamp

“Microsoft Corp’s sweeping re-organization on Thursday creates a company that, more than ever, bears the stamp of Chief Executive Steve Ballmer,” Alexei Oreskovic reports for Reuters. “The face of Microsoft since he took the reins from co-founder Bill Gates in 2000, Ballmer stressed the importance of improving internal collaboration and eliminating redundancies when he released the company’s new organizational blueprint.”

“For all the changes promised, the move reinforces Ballmer’s grip on the company’s direction and further muddies the succession picture,” Oreskovic reports. “‘There’s still no heir apparent or any succession strategy that has become apparent,’ said David Smith, an analyst with industry research firm Gartner. ‘It sounds like he wants to run it in a more centralized style.'”

“That Ballmer, 57, who presided over a decade of share price stagnation and was deemed slow to respond to mobile computing, remains more entrenched may worry investors and spur concern that the reorganization will truly effect change,” Oreskovic reports. “‘In theory, it’s a great idea. The key question will be can Ballmer deliver this in new model and can it be successful,’ said Channing Smith, co-manager of the Capital Advisors Growth Fund, which does not own Microsoft shares. ‘With his track record, it will be question mark for investors going forward.'”

Read more in the full article here.

MacDailyNews Take: By our count, this is Ballmer’s fifth “reorganization” since 2008. So, you know, this big “news” out of Microsoft is really more like an annual joke.

As we said earlier today, “We await Microsoft’s 2014 rearrangement of the deck chairs with bated breath.”

[Thanks to MacDailyNews Reader “Rainy Day” for the heads up.]

Related articles:
Steve Ballmer’s Jobsian ‘vision’ is for Microsoft to work like Apple – July 12, 2013
Microsoft is the new Apple – July 12, 2013
Steve Ballmer’s reorganization email: ‘One Strategy, One Microsoft’ or something – July 11, 2013
Captain Ballmer working hard on rearranging S.S. Microsoft’s deck chairs yet again – June 3, 2013
Microsoft said to again reorganize marketing operations; may include hundreds of job cuts – February 1, 2012
Ballmer rearranges the deck chairs again; seeks to get engineers into executive ranks – February 8, 2011
Microsoft rearranges the deck chairs again; reorgs cellphone, games division – May 25, 2010
Microsoft rearranges the deck chairs – February 15, 2008

19 Comments

  1. It’s painful to watch once proud Companies get shoved aside because the CEOs are to egotistical to step aside.

    In recent memory I’m thinking Yahoo, AOL, MSFT, RIMM, NOK, MOT, Palm, Dell, HP, Real Networks, GM, AA, Kaiser Aluminum, Sony, Sharp, Bear Stearns, Lehman Brothers, Merrill Lynch, Enron, Worldcom, Global Crossing, Sun Micro, Compaq, DEC, Nortel, Corel. Wow, the list is longer than I at first thought.

    1. But Ballmer is just doing what Bill wants.
      Stay the course and the world will come back to Microsoft.

      Remember that Bill quipped at the last All things D that Steve attended, that Steve did not get it. That Microsoft had won and Apple should just go away.

  2. Typical Microsoft. They can’t even do an original re-organisation. They’re basically trying to do the One Sony initiative, which has finally turned that company around and started to see them putting out integrated and half-decent products again. But unlike Sony, Microsoft want to do the same with software that is supposed to already be integrated, which makes the entire exercise just about cost-cutting.

    Doomed.

  3. The key line in the article is:
    “There’s still no heir apparent or any succession strategy that has become apparent.”

    Management 101 says, a good leader stacks his executive team with brilliant people who could perform his job almost as well, or better than the current leader. However, a piss poor leader gets rid of people on his executive team who might be a threat by demonstrating competence. Ballmer falls into the second category.

    If Ballmer ran Apple five year ago, Cook, Ive, Schiller, Johnson, and Cue would have been fired or forced out.

    Ballmer, keep up the good work. You are doing Microsoft proud.

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