On the heels of restructuring rumors, Microsoft CEO Steve Ballmer sent an internal email to employees on Thursday announcing a major overhaul at the company to bring all divisions under one united strategy.
The “One Microsoft” subject line of the email reflects the company’s new vision moving forward. The changes include senior management shifting into new roles to allow them to work together across all categories — from game consoles, mobile devices and PCs to services such as the cloud.
“We are rallying behind a single strategy as one company — not a collection of divisional strategies,” Ballmer wrote. “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.”
This notion will be infused across all of its products, including Windows and Windows Phone toXbox, Surface and Office 365.
This is a big undertaking. It touches nearly every piece of what we do and how we work.
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,” he wrote. “One strategy, united together, with great communication, decisiveness and positive energy is the only way to fly,” he added.
To embrace the new strategy, Microsoft will now be organized 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).
The company plans to increase its focus on engineering systems, processes and tools. The four main engineering categories include OS, apps, cloud and devices. “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.” These changes will take through the end of the year, Ballmer wrote.
To lead the force, former Windows CFO Terry Myerson will lead the Operations Systems Engineering Group, which spans operating systems across consoles, mobile devices, PCs and back-end systems. Another interesting move includes Julie Larson-Green leaving the software side to lead the Devices group.
Qi Lu will lead apps and services, while Satya Nadella will oversee the Cloud and Enterprise Engineering Group. Former Windows CFO Tami Reller will now lead marketing for the company, as Kevin Turner steps into his role as COO.
Meanwhile, Ballmer also announced the retirement of Kurt DelBene, who has helped to grow the Office and cloud services over the past 20 years.
Ballmer also outlined a refocus of its core values, placing a greater emphasis on staying nimble, communicative, collaborative, decisive and motivated.
“In a world of continuous services, the timeframe for product releases, customer interaction and competitive response is dramatically shorter,” he wrote. “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.”
Although there was no clear timeline on when all changes will be fully rolled out, he ended the email simply with, “Let’s go.”
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