““Ballmer Unbound”Ballmer Unbound”

Unwieldy, over-centralized co that flew by seat Unwieldy, over-centralized co that flew by seat of Gates’ pants broken into seven operating of Gates’ pants broken into seven operating divisions to push decision-making and divisions to push decision-making and accountability out into orgaccountability out into org Structure simultaneously gives divisions enough Structure simultaneously gives divisions enough

autonomy to manage themselves yet makes it easier autonomy to manage themselves yet makes it easier for them to cooperate and integrate technologyfor them to cooperate and integrate technology

Matrix-like approach: “Integrated Innovation”Matrix-like approach: “Integrated Innovation” Involves both defining who’s responsible for individual Involves both defining who’s responsible for individual

technology issues and structuring divisions to be strictly technology issues and structuring divisions to be strictly parallel, so that developers in each group have exact parallel, so that developers in each group have exact counterparts in other groups, with whom they are expected to counterparts in other groups, with whom they are expected to stay in touchstay in touch

Objectives include giving product groups stronger Objectives include giving product groups stronger voice in marketing and sales (which had been voice in marketing and sales (which had been centralized)centralized)

““Ballmer Unbound”Ballmer Unbound”

Playbook of procedures developed to Playbook of procedures developed to systematize product development, strategic systematize product development, strategic planning, performance managementplanning, performance management Gates developed methodology for fostering co-Gates developed methodology for fostering co-

development of software by multiple divisions: development of software by multiple divisions: “Software Engineering Strategy”“Software Engineering Strategy”

Incubators, definers, owners, participants, reviewers, Incubators, definers, owners, participants, reviewers, approver/coachesapprover/coaches

Revamped compensation planRevamped compensation plan

New mission statement, set of corporate values (New mission statement, set of corporate values (tenets))

Source: Source: FortuneFortune, 1/26/04, 1/26/04