From: Steve Ballmer
Sent: Friday, March 31, 2000 2:05 AM
To: MS Corporate Employees: FTE Only; MS Intl Employees: FTE Only; MS Domestic Employees: FTE Only; WebTV Wnifolk
Subject: A Few Business Changes
Two months ago, Bill and I talked about the importance of creating a powerful new set of software services and solutions built around the Internet, Windows, and new devices. We have made important progress in defining the details of this effort and have formed key teams across the company to start the work on many of these issues.
We will soon be assigning these efforts to the business divisions, who will lead them forward. At the same time, we need to maximize the opportunities we have in the short run with desktop software and server infrastructure for enterprises and e-commerce -- particularly with Windows 2000 and Office 2000 now -- and the rest of the Windows 2000 generation that’s in the pipeline.
Today, I want to talk about how we focus on these opportunities. There are four key things we will do: form an integrated platforms group; get clear, focused ownership of integrated customer scenarios; reinvigorate our marketing activities; and recognize a number of people who are stepping up to play leadership roles in these efforts.
As we have begun the process of turning the Next Generation Windows Services (NGWS) vision into reality, it became clear how related software development and IT operations are in the Internet world. The result was that we decided we needed a single Platforms effort. So, the former Windows and Developer divisions will come together, with Jim Allchin and Paul Maritz working in close partnership to make this happen.
Paul will be responsible for overall platform strategy, product planning and business development, and for the development of our tools and related platform technologies. Jim will be responsible for development of the expanded platform. Both Paul and Jim will report to me. David Vaskevitch will assume a new role, reporting to me, building up our efforts in e-commerce, business integration, and business applications, with specifics we are defining. David will also assist broadly on architecture and strategy issues.
As chief software architect, Bill will be spending 100% of his time working with the technical leadership of the company to help deliver on the next generation Windows platform and services.
To get a super clear focus on customer scenarios, we are creating a number of Solutions Groups (SGs) within the business divisions whose mission is to think at the broadest level about key customer and marketplace scenarios. The SGs will be responsible for defining customer requirements, including determining what customer problems we can solve with a given product or service, and what product/service features we need to deliver.
The product development teams within each business division will work with the SGs to understand customer feedback and requirements to ensure we are creating breakthrough products and services. This partnership between the development organizations and the SGs will provide the necessary focus on customer needs that will enable us to deliver the most complete and competitive offerings.
The SGs will also be responsible for competitive analysis and response; partner strategy; and the creation of thought-leading messages and in-depth materials that can be used by complementary marketing groups around the world.
In the Platforms area, Tod Nielsen will report to Paul and be responsible for the work of three Solutions Groups: Developer Windows DNA and Web Services; IT Infrastructure and Hosting; and PC Experience (client platform). Will Poole will own the Digital Media SG reporting to Jim. The structure of the Embedded/Appliance Platform SG will be determined soon. Mike Nash also will report to Paul, and will own the development of depth materials and substantive online communities such as MSDN, Technet and M?crosöft.com for all these SGs.
In the Business Productivity Group, Bob Muglia will continue to drive the development of products based on the work of SGs focused on knowledge workers, small business and wireless/mobility. Russ Stockdale will run the Knowledge Worker SG. Kathleen Hebert runs the Small Business Division and will own the Small Biz SG. Paul Gross owns wireless/mobility, and will send mail at a later time describing the structure of his SG.
The SG responsibility in Rick Belluzzo’s Consumer Group will include the range of home/consumer offerings, including MSN, hardware, retail software, gaming, and the TV experience.
While the SGs will enable greater customer focus, we must also reinvigorate our marketing efforts. We have a great story to tell in every SG, and our NGWS platform will make them even stronger. We must ensure that we are positioned with customers as a leader in the Internet space, just as we are in the PC space. The imperative is to effectively communicate to customers how M?crosöft will meet their technology needs in the new digital era.
To accomplish these goals, our marketing people have highlighted a need for more clear focus. In our mature areas -- knowledge worker, IT, developer and PC experience - where scenarios are well understood, we have decided to move accountability for short term results and sustaining marketing to the U.S. subsidiary, as we do outside the U.S. This will let Tod, Russ, Mike and their teams focus on the scenarios and the strategy, more than execution. (For the newer SGs -- Small Biz, Wireless/Mobility, Digital Media, Consumer -- which have their own sales efforts, we will not make this change.) This is why we are creating a new Marketing Division.
This new Marketing Division will report into Jeff Raikes’ Worldwide Sales, Marketing and Services Group, and will be run by Mich Mathews. It has four key missions: global positioning for the company and our vision; planning and execution of integrated marketing campaigns for the U.S. subsidiary that will be run by Kevin Johnson, reporting in to Orlando Ayala; leading similar initiatives on a worldwide basis; and developing marketing functional expertise for the company in the areas of PR, advertising, customer loyalty, research, and events.
Our top management team is very invested in creating a reinvigorated marketing culture at M?crosöft, where there are important opportunities and clear career paths for talented people in the company. The structure we’ve created will allow us to create a coordinated, streamlined marketing effort with fewer moving parts, and the resources people need to do a great job.
New Leaders
To achieve all we need to do to create NGWS and new services; marketing more, and more effectively; and achieving our full revenue potential over the next few years, many people will need to assume more responsibility inside and outside the company. You will see a number of promotion announcements in this context today, and in the days ahead. We have looked carefully as a senior team at these promotions and know they are both very deserved and necessary. As we work to redefine the technology landscape, we will continue to remain competitive and provide challenging growth opportunities for all our people, including senior managers.
I know that change is challenging, but these changes are essential for us to stay ahead of the competitive curve, and will create a solid foundation for the company that will minimize the need for future organizational changes. Some may speculate that these changes are somehow related to DOJ concerns. They are not. These changes are focused entirely on our customers.
With our collective hard work, we’re going to build on the amazingly powerful 2000-generation of products and deliver an entire new set of software and services to customers, and make sure our customers can clearly see the value of these solutions.
For many of you, there will be additional emails shortly from your managers that provide more details regarding the changes I’ve outlined, as well as others. Thank you for your cooperation in helping make these changes as seamless and as effective as possible.
Steve