Wednesday, September 20, 2006

Microsoft Company Meeting 2006

Pre Company Meeting 2006

So, what were my wishes last year for the 2005 Microsoft Company Meeting?

  • Dates
  • Review System Overhaul
  • Management Flattening
  • Mea-Frickin-Culpa
  • Dissent

How did those wishes pan out during the meeting: "zip."

But, over the year? Well, the dates for Vista and Office are still presented somewhat fuzzy to the external world: now's the time to commit. The review system did indeed get a well deserved overhaul, though the glow of myMicrosoft is fading a bit and a few folks are looking around and saying, "Hey! There's still a curve, dude!" Management flattening? Appears to be happening in SteveSi's Windows org along with Office. Yah! Mea-Frickin-Culpa? The best we have is saying that we'll never take five years again to ship our operating system. Eh... hoo-raa?

As for dissent? Ha. Come on. SteveB is going to get on stage and run around and you're gonna to clap and cheer. And if any exec on stage asks internal Google users to raise their hand most of you Microsoftie-Google users are going to sit on your hands.

My topic wishes going into the meeting this year include:

Dates: yes, Dear Leadership, now things should be so sure you can actually commit to a street date for Vista and Office. It's neither brave nor brash at this point but come on, it's almost October already.

myMicrosoft:

  • Talent within: time to unleash the talent within the company. Look, we're not going to be hiring too many super technical people for US jobs. It's time to focus on building people within for the challenges facing us. It's time to let job transfers inside Microsoft be simplified and let people quickly interview without getting permission first.
  • Talent nearby: some people whisper that Microsoft might be opening up to flexible work-at-home / work-remotely options. Hmm. Interesting, though I don't know how well that works in our corporate culture.
  • ESPP: bring back the old ESPP. Consider it Towels II.

Profit, not Revenue: everytime you see revenue on a financial slide, ask yourself, "But, ah, what's the profit today?"

Inspirational Roadmap: we've got clouds of unfocused chaotic ideas, but how does it come together as a game winning strategy that gets us from a stumbling cool chaser to innovative deliverer with huge profits and exceptionally happy customers and shareholders? Is this the year that we both get our act together and establish a profitable strategy?

Company Employee Size: I can't imagine anyone who wants to clap for hiring more people... but that's just me rocking back and forth in my own little bubble world. I especially can't see those crammed together with coworkers in buildings with zero parking spots clapping: yes, please, hire more rats to put in my box. Please, don't make Microsoft go through what Intel is going through now. Hell, yes, I want to downsize, but not through a crisis brought on by extreme mismanagement. Cool things down, efficiently rebalance the company from its internal employee base first (again, allow easy interviews so that people can take charge of their career), clear out the dead wood, and then see where we are.

Post Company Meeting

Well, I wasn't as pumped after this year's Company Meeting as I was last year. But I think that's because of two things:

  1. 2005: end of a dry-spell. It had been a long time, last year, since we'd really heard from our leadership and what they were thinking and how things were going. Plus, it was a slump time after the Forbes and BusinessWeek articles.
  2. 2006: we're in the loop. The ongoing Town Hall meetings have kept us connected over the past year. And that's a good thing.

I guess according to LisaB, in the portion of her presentation about blogging - and, uh, especially (uncomfortably tugging at my necktie) responsible blogging - I've become Microsoft's Voldemort. He who must not be named. Except by alluding pauses. Cute. Anyway, I do hope that InsideMS becomes a successful forum where people can freely exchange constructive ideas for improving Microsoft and feel as though their voice is being heard, versus just being explained to why it is the way it is. I look forward to seeing how it goes. I'm surprised it's taken this long but perhaps there's some convincing that needed to be done. LCA is bought into this? Anyway, inside voices can make good changes. But sometimes that constructive criticism has to be public in order for the change to be forced from the outside.

I appreciate LisaB laying down the foundation for myMicrosoft 2.0. I hope that the local listening tour mixes it up with Live Meeting and face-to-face because I recognized the power in the room of people seeing each other's reaction to what was being shared and exchanged during those meetings. That shared, connected experience was part of the reason respect, enthusiasm, and hope arose, meeting by meeting.

Two incoming comments:

(1) Mini - this is it. Either you start your constructive comments WITHIN microsoft, or please just leave the company.

(2) Lisa's internal blog is a brilliant shot to take the wind out of mini's sails. "If anyone's going to go online and talk shit about our company and what we're doing, it's going to be internal so we can make sure its legit." Brilliant. Lets hope it works out as well in reality as it sounds like it should in theory.

I will certainly participate on the internal site as one voice sharing my insights and suggestions. And, hey, when the time comes that no one is participating here because they are engaged in InsideMS or whatever is happening internally, then I'll gladly fade into blogging history as I turn back into that lone voice. Trust me, there are many fun things I've put aside that I will happily resume when that time comes.

And it will come.

As for the rest of the meeting: I'd say the biggest cheer went to the paper airplane that made it to the stage. And the Microsoft PC-man / Apple-boy parody ads were fun. Not as good as the parody shorts we've seen the past, though. I would have love to have been near the vocally enthusiastic Zune team to see their presumably horrified faces as the Zune tune transfer ad-hoc demo fizzled. I still want a Zune but... you guys are still writing the software? What the-? Hmm. Maybe this is the new agility and I should chill. We'll soon see. Given that the Company Store will be carrying the Zune for a discount, you're going to have lots of internal adopters ready to share their constructive feedback.

My biggest disappointment: Ballmer affirming that if we're not succeeding at something then the only option is to keep coming, coming, coming and driving it until we are a success. Oy. I disagree. There are times you know when to fold them and realize withdrawal is better than fist-slamming stubbornness. Second biggest disappoint: when you think Live, think ads.

PhotoSynth bah-lew my mind, along with the 3-D tourist composition (it would be interesting to integrate video of a scene for more 3D there, frame by frame). Let's ship it! And the [[wow, holy crap, guess I shouldn't have mentioned that!]] nifty little desktop feature for Vista was news to me. That's going to make for some interesting laptop moments. When does the Playtable ship? Or is it a perpetual demo? Cool, but it's time to grow up from demo to furniture. A lot of the rest of the demos I had already seen so I was busy watching the various airplanes sputtering about. One day - one day, I tell you - our wonderful and overworked admins will realize that no paper should be given out what-so-ever during the Company Meeting.

And Ballmer presenting with a 101 degree fever? Geez. He once again affirmed, post Vista, there would be no more gaps. "Yes," closing the door to the empty barn, "them horses aren't going to get out a second time." Fine. And I appreciate that we are focusing on the end user. Really? I've been dying for that. The consumer is back? Excellent.

Your Wishes and Reactions?

What do you hope happens at the Company Meeting? What are your post Company Meeting thoughts?

Updated: added some reflections under the Post Company Meeting section.

Updated #4: corrected grammar / terminology. Thanks. I think this post wins so far for most # of edits within 24 hours.

Updated #5: (I'll do my best never to revise so much ever again): As mentioned in the next post, I was worried I had revealed a bit more than I should have, but then I've been reassured nothing was shown that I touched on that hasn't been shown over and over again. Read the next post for more discussions on that topic. I will be going through later and cleaning up off-the-mark comments regarding this because it's just not so. I wouldn't have updated this post yet again if not for the Seattle Times making a reference to it.


Friday, September 15, 2006

Blame it on the Coconut Cream Pie!

Left alone for a short time, I locked my fingers together over a strong cup of coffee and kind-of stared off into the various lamps strung about the dark, stylish Seattle restaurant I was in, quite happy for having had the absolute best coconut cream pie I'd ever tasted. It was like I was living a moment from one of those Life is Good t-shirts.

Inspired by this, I think it's time to share the goodness going on as we approach the 2006 Company Meeting and think about what's going right, or has the potential to go right.

Yah! Ding dong, the fixed curve is dead. Yes, Virginia, there's still a curve-like-thing, but it's more fuzzy and allows some wiggle room to accommodate for merit. While I celebrate the break from 3.0/3.5/4.0, I certainly hope that it's absolutely false that groups were mandating a certain amount of "Underperformed" ratings. That's just wrong and leads back to groups padding themselves with underperformers to protect their valued contributors vs. moving those underperformers out proactively. I think for most Microsofties, the rewards ended up being very similar to last year. A few folks on each team might still be trying to pop their eyes back into their sockets. I'm pleased. I hope this year's experience is leveraged to smooth out next year. Please.

Oof! Flattening re-orgs: Windows Experience is re-orging flat, Office is re-orging flat, MBS got re-orged - anyone I'm missing? A commenter makes a note about Office:

Anyone read Antoine's mail about manager span in Office? Basically he said that a lot of our line level manager suck, and that we're getting rid of a bunch of them to get the average span of a manager up to at least 5 (from about 3 where it is today).

And several people have noted that Steven Sinofsky's internal blog gives an interesting glimpse into what he's driving. Sucks to be, or had been, a PUM in Sinofsky's org! Well, you had a good run, I guess. For you. Now we're really going to see if a flattened organization is all that and if decisions and progress are made efficiently and effectively. This is your chance to show it is indeed the right path and to ensure the best managers are in place.

Yah! Both Vista RC1 and a refresh to Office Beta 2 are out. Raise the confidence level to green that these cash cows are going out on time with no further delays. Come on MSFT! Poppa needs a new retaining wall! The Vista EU drama is a bit disturbing and I hope just as much back-room negotiations are happening as compared to the court of public opinion, job studies and all.

Play! Zune has been announced so set aside the random speculation and get on with the groovification. Yes, I'll get a Zune. No, I must be too old to appreciate the brown color - sorry, that reminds of 70s era corduroy pants, flared collars, and shaggy hair. Anyway, it's a nice start and has a sweet screen. Too bad the Windows DRM has pressed the reset button.

You'd think with the dismissive hatred being thrown at Zune that one day all iPods in the world are going to wake up as WMA-lovin' Zunes. Zune not right for you? Great, rock-on with your iPod. Let the rest of us enjoy it in peace.

Oh, and perhaps we finally found out who made the great internal video for "If Microsoft Designed the iPod Packaging" looking at the minimalist Zune box. Nice.

Sweet! IronPython 1.0 is out and has received lots of good buzz and appreciative chops, for both its performance and for how it was iteratively developed. Even I'm stumbling along and learning Python, though it doesn't help to be learning the IronPython environment at the same time I'm learning PowerShell (Monad). Also, Microsoft Max continues to get some good buzz, too. Congrats! Additionally, lots of live.com services are being updated, though I'm personally frustrated with the level of Aunt Jamie's JavaScript Molasses clogging up my Spaces experience.

Pay! It's September 15th: pay-day. Your new raise (ahem) and merit increase and bonus have been deposited. One commenter notes this, too:

Today was the day that the checks cleared on bonuses and merit increases. And today was the day that my team lost two of the most senior ICs in the group to outside the company.

Fold them cards and gather your chips if you're ready for a new challenge. Also, now's an ideal time to update your resume and, what the heck, float it about or see what other groups are doing. Hiring managers are fairly smart: they know people start looking around right about now. Ping your network and do a few informationals. It's a great way to meet quality people and perhaps even establish some new work relationships.

Yah? Mr. Barr, I don't know if this is a good idea or not. We'll see. I have a strong aching desire to break the rules of conduct and add my own edits. If I were to do so, I would add something about the history of comments and the conversation and how the small spec of Mini-Microsoft's popularity brought in an undesirable element and resulted in comment moderation (even turning comments off for a while). Plus I'd make a note of Mini-like sites. But that would be sheer, indulgent vanity.


My wishes for the Company Meeting this Thursday? Well, (1) that it's the last idol competition that we have and that (2) Eye of the Tiger and any other sort of related song has been rejected as a SteveB high-fiving soundtrack. "I've got the eye of the tiger, baby!" Whaaaat? No. Not to be mean, but I also (3) wish that someone steps on Steve's foot while shooting some hoops before the show because foot pain, like what Mr. Ballmer was suffering during the EE keynote, seems to bring out this one-on-one clarity and frankness that I deeply appreciate.

In fact, I (4) hope the whoop-whoop is toned down a bit for the sake of content. It's too bad that the open nature of the meeting, let alone the press being present, results in the content being rather shallow (and remember: it's profit, not revenue... profit). Anyway, I'm looking forward to chugging some of the Kool-Aid again and then crowding in with the rest of Microsoft to see what kind of cool demos we might have. What can I say? I'm a Company Meeting fan.

If Mr. Sinofsky is on stage then I (5) hope we can talk about the flattening we're doing and the focusing on agility and nimbleness and effectiveness and how all the crap that Mini-Microsoft used to complain about is just not relevant and that a focused, resurgent, accountability-driven Microsoft has taken the stage and promises never to encumber itself with layers of bureaucratic decision makers and complicated, cross-connected features.

And, you know, (6) fire everyone in Redmond who decided not to come to the meeting. Just kidding. But I've got to protect the little spark of hope that remains that Microsoft might one day reverse its drunken hiring binge and, as it streamlines and flattens layers, move on folks not contributing to success anymore and that could be more successful and more happy elsewhere.

What's gone well from your point of view? And please, feel free to indulge in a hopeful, positive outlook or at least conjure up some constructive approaches for problems you'd like to discuss.

Might I suggest a slice of coconut cream pie?

Updated: fixed my wording around the cash-cows' time table. Added more pie.


Monday, September 4, 2006

Kicking the SPSA Can Again, Raises, and the 66th Percentile

"Hey! Who do I have to <<fill in the blank>> around here to become a Partner?"

That's one bit of fallout landing on Microsoft employees from this past week's SPSA payout to Microsoft employees at level 68+ in the company ("Partner" pay scale level - I'm not talking about the third party folks who Microsoft partners with in technology deployment). Tut-tut, don't bedevil me with my underwater options and paltry stock awards, I want to be where the real compensation is: Level 68!

(Hmm... Level68... local band name maybe, or perhaps my alter-alter-persona nerd hip-hop name.)

I'm sure if Windows and Office had shipped by now that the SPSA would have been a begrudgingly accepted payout to all the Partner leaders in the company, even those who don't have a damn thing to do with Windows and Office. Instead, the chosen weak metrics still point solidly to resounding success using a financial ruler that no jester in any court could stop laughing about long enough to make witty comments.

Hey, I recognize that running a big organization is truly a lot of work... and those folks already get well compensated for that. This redistribution of shareholder wealth to those that the shareholders rely on for exceptional performance - you know, shipping on time, increasing adoption rates, avoiding part supply problems, not surprising Wall Street, and not letting process and hiring binges saddle down Microsoft - just seems wrong and out of whack.

The big disappointment is that it's not a one time payoff but designed to keep the old guard around for two more payoffs. Damn.

And Microsoft is now officially a two-tiered company. There is Level 67 and below and then the Partners lording above us, throwing us the occasional coin. I certainly hate writing that. The SPSA, however, doesn't follow any rules related to the awards we receive. Does it take a year until some of the stock is available? Nope. Does it take five years to vest. Nope. Is it tied to personal performance and contributions? Nope.

The Partners are different from you and me.

One comment reflecting on this:

3 points I want to make:

  1. Why execs have 1/3 vested right away?
  2. Why are execs selling them if they believe in the company?
  3. Why other employees have to wait for 12 months and span across 5 years?

Following in that, and the ongoing discussion if any Microsoftie consciously cares about providing shareholder value or if doing so is even in alignment with their career, we have this comment:

So many people have attacked the person who questioned whether his first priority should be shareholder value. I've read this with curious amusement, especially in the wake of our top 900 or so executive leaders effectively ordering that they all receive buckets of money. There is no plausible justification for this action, and it has clearly been done at the expense of the shareholders. The next email from an Exec that I read that stresses how we all hold great responsibility to the shareholders will leave me laughing.

'Do as I say, not as I do.'

And so it is.

In reflection of all of this SPSA pocket-stuffing, a big tip of our collective hat to Jay Greene at BusinessWeek for the original article long ago last year that brought up this pending compensation program (hey, that's a great article to re-read). Some things have changed for the better. Some deck chairs have just been re-arranged. And some bad ideas have hit the fan. A snippet from Mr. Greene's article regarding that:

Microsoft's compensation moves have created a haves-vs.-have-nots culture. Newbies work for comfortable but not overly generous wages, while veterans have a lucrative treasure chest of stock options. Now a new pay scheme, scheduled to go into effect this fall, threatens to make the gulf even wider. If they meet incentive goals, the 120 or so vice-presidents will receive an eye-popping $1 million in salary a year, and general managers, the next level down, will get $350,000 to $550,000, according to a high-ranking source. But the rest of the staff is paid at market rates.

Only now we know it is 900-some recipients and close to $1,000,000,000 in payout. I think from now on we no longer brag about "growing our business one Yahoo!" or "...one eBay" but rather "...one SPSA." It's interesting thinking back to some of the comment conversations in the past about our huge thirty-something billion dollar war chest. People would often ask: "Hey, why can't we dip in and give out bigger bonuses or salaries to everyone from this?" and the back-of-the-hand retort was "That's the shareholder's money, not ours. We can't just do what we want with it."

Various stories on this from the past week:

Right before all this, Mr. Todd Bishop at the Seattle P-I took a side-trip to the recent 10-K filing: http://www.sec.gov/Archives/edgar/data/789019/000119312506180008/d10k.htm to revisit the recent hiring binge by Microsoft and how it breaks out for our 10-K hiring. MSN +44%? And while we're putting on the pounds, Intel might very well be looking at some severe cuts after an efficiency report (how do we get one of those?). Part of this is to make up for past sins of (dramatic pause) over-hiring.

I'm all for right-sizing Microsoft to be smaller by cleaning out the ineffective and the dead-wood. But it sucks beyond measure to have to reduce by 10,000 or 20,000 people all at once. That's the result of exceptionally bad leadership and I hope our Partners pause long enough over their new brochures of Italian villas to consider leading an exceptionally top-heavy Microsoft efficiently so that a few years from now we're not giving out tens-of-thousands Ooopsie! pink-slips.

If you're not a comment reader, then allow me to suggest dropping by the last post (Mini-Microsoft Looking Forward - Reviews, The Company Meeting, and Then Some...) and reading through what people have shared about their review numbers so far, along with their impression of the MyMicrosoft changes so far and the usual harsh real-world how it works way of getting by and getting the hell out of your current group if they've flipped the bit on you. One comment that folks liked in particular starts as such:

Hey! Welcome to the club. Pull up a chair and let me explain how this all works to you.

Random things around compensation so far as always includes discussion of the raise and whether it should at least match the local cost of living increases. Well? Within the mechanics of the HR-compensation beast, have to beat your compa-ratio first. Unless salaries are adjusted upwards and your ratio allows you more growth you're not going to be beating cost of living. And once you start talking about salaries, you start talking about the 66th percentile that Microsoft pegs compensation at.

Ah, the 66th percentile. Now, first of all, Microsoft does not intend to pay 2/3s the salary you could get anywhere else under this system. If you lined up thirty people who did exactly what you did from 30 different companies, you would be paid more than 20 of those individuals. Ten of them would make more than you. Maybe one or two of them a hell of a lot more. But in general you're earning more... at the moment in time that you got hired.

Where you're getting screwed is salary compression. The folks hired this year are coming in making a lot more than last year's folks, and getting a better taste of the stock sugar. Your recent raises certainly haven't let you, or the folks from the previous year and so on, catch up. And won't. So, if you've been at Microsoft (or any corporation) and want a fat raise then your best course of action is to switch companies and decompress yourself. And then work to get acquired by Microsoft so that you can come in as a Partner. Sorry, Lisa ain't gonna do that for you.

Your only way to win at the salary game staying at Microsoft is to get promoted as often as possible. On your march to Level 68.

Do let us know how you filled in your blank along the way.


Monday, August 21, 2006

Looking Forward - Reviews, The Company Meeting, and Then Some...

Microsofties, what are you looking forward to? My top of mind right now - interrupted only when I take a good-long moment to enjoy this fantastic Redmond summer-weather - is:

  1. Review results.
  2. The 9/21 Company Meeting.

The new review: is the new boss the same as the old boss? Most review models should be closed by now and review deliveries should start in earnest. Some folks have posted comments that we still have a curve and that this year's rewards are going to be pretty close to last year's rewards, with the rating split into two on commitments + stock. Yes, there is a blurry curve that groups get to decide. You don't get to have a group that is 100% exceptionally exceeding everything. Well, you can. But then everyone gets the same meager reward. Different VPs and presidents have decided there should be a ratio of somesort of Exceeds vs. Achieved. All I can say is that I feel like tra-la-la dancing through daisies since I didn't have to be in a meeting with a bunch of glum managers and deal with, "We need to cough up N more 3.0s to meet the model." (Where N = the number of good strong contributors you're about to demotivate and practice giving the speech on peer-relative performance.)

Tra-la-la!

I'm too deep in the middle of it all right now to take a critical, constructive view. The new review model process has been a hell of a lot of work. I think it's worth it, but best practices need to be rolled-up for the next iteration. I'm still amazed that this all came together so quickly and now it's all done except for presenting the numbers and letting the rewards kick in on 9/15.

The 2006 Company Meeting: I feel like I'm in the minority for being a Company Meeting fan, but like I've said in the past it's my yearly chance to chug the MSFT-Koolaid and enjoy being with the best people in the world. Except, of course, I kind of look around at what groups I think we could spin off or downsize. But other than that I'm pretty cheery!

I'm sure the Company Meeting demos and the PowerPoints are coming together now that we're a month away. What do you want to see and hear? Personally, I'd like to skip any Vista or Office demos. Unless they're fast and just part of something else. I'd love to see some consumer focused demos, whether it's Live services or Zune or Xbox / PC games. How about a demo of the new Flight Simulator? And how about actually showing the 360 running games vs. last year. And I'd love it if we're talking about profits vs. revenue. Profits good. And if you're demoing something made with a small, effective, agile team, brag about it.

Some folks might be a bit disillusioned with My Microsoft and the review results by the time the Company Meeting rolls around. I think the Company Meeting would be a great time for LisaB to unleash more goodness. My couple of ideas:

  • ESPP: the return of the old ESPP, 15%, lowest-date and all that. Again, I'm just asking for you to return what was taken away, but, still... please?
  • Internal Transfers: optimize our internal recruiting by throwing away permission to interview, cutting internal interview loops to two-future peers + hiring manager, and starting an aggressive internal recruiting group to help optimize Microsofties we have vs. piling on any more.

Oh, and get those iDrinks actually installed.

Other going ons...

(I have about five pages of notes from the past week of random things to discuss, but I'm going to save some of that until later.)

SPSA Countdown: so, how did the SPSA percent pay-out end-up? Obviously, I'm not in the know. But you can start gently pushing your least-favorite Partner-level-L68+ peer towards the retirement door by leaving in their office various brochures of villas and such they can buy and enjoy their pay-out with. They got theirs. Clap. Clap. Leave.

Email retention policy: is it a good way to keep everyone's email boxes clean to just a six-month history or a cover-ya-ash cynical maneuver to ensure we don't have anymore embarrassing missives pop-up in court when a plaintiff goes on a fishing expedition up Exchange Bayou? Comments are all over the place for this one.

It doesn't bother me too much simply because it hasn't screwed me yet. But it will. I'm sure a couple of years from now I might start panicking because I lost some important email and that the incident in turn will cost Microsoft a bunch of money as we try to reconstruct the information in that email. I agree with Alyosha`: in a hard to quantify way, this is going to be more collectively expensive to Microsoft for losing its tribal wisdom. But, hopefully, no more head bruising, self-inflicted dope-slaps induced from de-contextualized email passages popping up in the news.

My only note of caution: I've worked for a tech company basically run on the whims of lawyers and staying safe and ensuring we stayed out of court. Life sucked. We never achieved what we could have and politically adept people became really good at sic'ing the lawyers on any groups they felt were threatening our legal standing. It's the safe road that leads straight to mediocre-ville.

Buyback Later: so much for Buyback Mountain. A lot of shareholders passed on the dutchee and we're going to get around to it within the next five years. It's done the stock some short-term good, so I'm happy there. But it's caused some confusion and we know how much the market digs confusion (most hated thing, right after surprises). MSFT Extreme Make Over and Packet Storm have more discussion:

Windows Live Writer: excellent! Job well done. Kudos. I enjoy using Windows Live Writer. I'm not using it now for this post because I've got my own custom little content-management-system, but I was really happy playing around with Windows Live Writer and impressed with what it did. I'd be much happier with inplace spell-checking and grammar checking, but it's a nifty little tool that does just as well as stuff I've paid good money for in the past. My only regret is that good stuff like this only comes along when we acquire a product under development. What is wrong with our internal culture to not allow a tool like this to be built from scratch?

Random bits:


Tuesday, August 8, 2006

Niall Sez Microsoft is Too Big and Paralyzed

Well, allow me to be the last blog to shout into the echo chamber about Niall Kennedy... doing what? Oh yeah: Leaving Microsoft. Lots of high profile folks have been leaving Microsoft lately and I haven't been making a big show out of many of them, but for some reason, Niall's short-time at Microsoft got my attention.

Two interesting snippets, one from Niall's entry and one from the luscious Valleywag (I so wish we had a Seattle version of Valleywag):

(1) Windows Live is under some heavy change, reorganization, pullback, and general paralysis and unfortunately my ability to perform, hire, and execute was completely frozen as well.

(2) Wag: Microsoft seems friendly toward people returning after leaving for their own startups. I've seen a few people leave for other companies and return with no problem. Do you see yourself ever doing that?

Niall: Not really, but perhaps if the company was split up first and there was some new project I was excited about that could only be done at a company such as Microsoft.

Wag: Split up?

Niall: Splitting the company into desktop, server, online, and possibly gaming divisions. It's just too big.

(from: Exclusive: Niall Kennedy's Microsoft exit interview: He'd only rejoin if Microsoft split up )

Lots of echoes in the chamber rolled up at TechMeme. Rumblings of cut-backs and paralysis and Microsoft being the new IBM. I certainly agree with the desire for Microsoft to be a way smaller company (though I think every time I say that, or ring a bell, 100 more people get hired). I'm not bought into the split-up, except for the sobering benefit of cutting off the cash-cow money flow that allows an abundance of waste and bad decisions elsewhere in the company.

What does it mean to try to hire a superstar today or to grow into a superstar? Can superstars actually get things done at Microsoft? And does this show a revealing shift that all that Live stuff we yanked out of the plucky start.com as a grand, confusing rebranding effort is taking a moment to pause and figure life out? Did we wake up from the Live-demo-bender, rub our face and shake our head, and ask, "What the hell was I thinking?"

A compelling vision would be great right about now. And not a dorky wired-up clipboard that has seemed to have dematerialized. A vision around making money and doing things that, if I told people sucking on a Frappuccino about, they'd say, "Oooh, that's cool. When can I do that?" And if someone is talented and motivated to get things done, how do you unblock them to make it so?

Update: the initial bunch of comments don't weep for Niall and are pretty much summarized as "good riddance and Live is doing super-fine." Maybe more progress will be more exit-door seekers. One can hope.

Other notes:


Dev vs Test vs PM

For those that care, I've thrown in the towel and have let the last post slide into the Dev vs PM vs Test discussion thread. Jump in, and I really encourage some thoughtful comments like this one:

Test? I love Test. I wish we had more testers, paid them better, and gave them more respect. I wish Test was more integrated into product development, and had better career paths. I wish we promoted more people from Test into GM positions...

Well, I have to admit I lopped off how that paragraph ends. I believe there are some great team-building activities spreading through Microsoft, like Feature Crews, that have Dev, Test, and PM working together to create something great vs blaming each other when the should-be-expected unexpected problems arise.

So, for all the "grr, screw-up!" venting you might have to share, how can things change for the better? Or how have they already changed?

More here: 10,000 More Microsofties - What Do They Do?

Update: while I meant for the comments to go to the above thread, a few folks have asked for this specific post to be open to comments as well. Okay. It's a bit late now, but here you go...

Tuesday, August 1, 2006

10,000 More Microsofties - What Do They Do?

So there I was, languishing sideways in a sun-drenched chair, indulging in bon bons, and getting engrossed in another summer-time read when Todd Bishop and I had a quick conversation.

"...Microsoft increased by 10,000 in FY06," the ever vigilant Mr. Bishop shared with me, keeping an eye on the recent postings to Microsoft's PressPass site.

Goodness gracious!

A fine G-rated reaction. And thank goodness I didn't have a bon bon in my mouth right then.

This was a heck of a kick-off to the 2006 Financial Analysts Meeting. Who are these people we've hired around the world? Sales and marketing? The field? MSN? Perhaps I'm reading too much summer-time dreck, but it makes me wonder if we're hiring all the folks we can to keep them away from the competition, tucking them away in pods along the The Dalles and other international locales. I shared my opinion with Mr. Bishop: they certainly are not developers, unless we've really lowered the bar and have decided it's okay to hire people who don't need to know how the JIT works, let alone those memory pointer thingies. You can spell HTML? Hired!

Unless someone has a secret to share on how to hire lots and lots of super-talented developers.

Redmond employee count grew by what... holy crap, almost four-thousand people! And our total global growth, including Redmond, was originally projected at 5,000? No wonder we have streets that turn into parking lots around campus. You know, you can only put so many rats in a box before the stress gets to them and it gets toxic and ugly. And the Redmond box is pretty much full. The infrastructure can't take much more, especially if you consider the ancillary jobs that open up based on the increased Microsoftie jobs.

I can only hope that FY07 will not be another 16% growth year. But I'm one beaten down individual, as if each one of these new folks have walked right over me as I sputter, "Mini- Microsoft- Lean- and- Mean- ooch!"

As for the FAM... lots of good coverage all over. I know, we didn't give anyone confidence about Vista's slip ship date (including a report that the press groaned to the answer about when Vista would ship... like we stuck our stock's chin out for a prime right hook). Personally, I would have loved some theater. Like BrianV being onstage giving that initial answer, "...we slip so that we don't ship shit!" and then being fired (or sent to MBS or something) and Jon DeVaan being yanked out of the audience and asked the same question, "We're shipping on time! I promise!" Now that would be refreshing.

Well of course that's not how it's shaping up in the near term. Some folks are grumbling about Sinofsky cronyism as Windows reorganizes for the future. I'm excited for any change that seems to be busting up the levels of hierarchy, clearing out the old, and bringing in the new. Some folks aren't going to be happy with any changes. But I think it's promising. What would you do differently? One positive outlook:

JonDe is a microsoft hero. He and EE team will make windows a tiger again.

It makes me wonder if the folks being given the bums rush are looking for jobs elsewhere or if this SPSA grant coming up very soon is having the positive benefit of "I finally got mine and I am out of here!":

My office is currently being swamped with senior microsoft partners looking to explore options, to consider employment with my firm.

What I am trying to get a handle on is if this is the first wave of Vista related attrition, or is this people planning on moving on after the first slug of the big $1m payday, or is this the first wave of the rif?

I am just curious. It seems odd that we would see so much activity now.

(Lord, it's me... Mini. Please, please let this be the truth and not some sadistic soul playing me for the fool. It's been a rough year, Lord, and I need something hopeful like this to make it through!)

Well, if your office is Google then I hope folks realize they might have a rush to beat... let's see, what's that URL from today's PI? Here we go: http://www.google.com/aspirejennifer - time's a-wasting!

Other goings on...

(1) FAM demo blowout: I was in too much shock from the employment growth to complain about this. In the meantime, both Larry Osterman and Rob Chambers have owned up to what went wrong and why. That's pretty damn open and honest. Some commenters wrote conspiracy theories around it being a staged demo, but somehow I think if it was staged it, ah, wouldn't have crapped out.

(2) Microsoft Lays Out Plans at Analyst Day has the following encouraging note:

It's only a matter of time before Wall Street takes notice of the strides that Microsoft has made of late to transform itself from a slow-moving software behemoth into a company that can better take advantage of new trends in the marketplace. Microsoft's renewed focus on online services is a good move for the company. Meanwhile, the company has taken full advantage of the XBox 360's head start on the other next generation consoles, and it has been doing a good job of leveraging the system's popularity to generate new revenue streams. With all of Microsoft's initiatives set to come together next year, fiscal year 2008 should see huge profits for the firm.

Well, it was encouraging until that FY08 part... better than FY-never.

(3) Ballmer Analyzes Microsoft's 'One Big' Vista Mistake - Mr. Ballmer continues the long mea culpa around integrated innovation. Additionally, Mr. Ballmer is attending his own kind of listening tour around campus right now with Ray Ozzie, meeting with L65+ employees, group by group, and having frank conversations. Hmm!

(4) Watch out, Google, Microsoft now gets the Net - interesting that folks are writing about the Old Microsoft and the New Microsoft.

(5) MSFTextrememakeover FAM - Ante up, up the ante, or just plain bluffing - Microsoft Extreme Makeover's summarization on the FAM - very nicely done.

(6) Charles DiBona and Dylan Yolles shared some interesting insights at the post-FAM Breakfast Series event. They saw it as extremely positive that Microsoft responded with a buy-back. Next request (same as last year): a consistent significant dividend. That would increase all sorts of investment in the stock.

Why is such a dividend a bad idea?

For Dylan: Linux, not so much of a worry on the desktop given that the TCO isn't terribly different (upfront cost is negligible compared to TCO). OpenOffice: beginning to worry more about. Interesting that he brought up a worry over developers and how he sees developers gravitating towards an Eclipse / Open Source environment. What do we do to get developers excited and engaged?

For Charlie: well, he can make us feel better for suffering through a Series of Unfortunate Events: the love affair with Google, the Vista delay screwing over those looking for a Vista dividend (and they in turn screwing us over), and the unknown payoff of the unexpected $2,000,000,000 investment. He saw big changes over the past three months: communication being open, being receptive to feedback, and to act on that feedback. Kudos to those change-makers.

And the reward for, well, the ballsiest question during the Q&A goes to the gentleman who asked about the prospects of taking Microsoft private. That question resulted in Dylan sharing an interesting nugget from five years ago: Bill Gates told Dylan that if the stock got low enough Bill Gates would take the company private.

How much lower is low enough?

Updated: fixed a couple of typos, especially one where I said "slip" when I truly meant "ship." Oy.