Friday, July 20, 2012

Microsoft: Too Big? Too Old?

Image representing Microsoft as depicted in Cr...
Image via CrunchBase
Frustration, Disappointment And Apathy: My Years At Microsoft
Microsoft also gave out corporate-branded gizmos, laser pointers, memory keys, plastic crystals and other toys. When I raised a suggestion that we divert some of those funds to charity, my communication style was flagged as inappropriate and antagonistic.

In time, my eyes opened. We were box tickers and pen pushers. Any original thinking was sacrificed at the altar of time-proven, common sense process. Efforts to break the mould were all but punished.

Microsoft culture expects you to be in meetings. Calendars need to be decorated with sufficient colourful blocks, to signal over-activity.

Dig a bit deeper and you’ll realise that Microsoft meetings are a way to diffuse and evade responsibility for decisions. Yes – let’s spend weeks on weeks “reviewing with stakeholders.” It’s so much safer that taking swift decisions ourselves. The company places no trust on the individual to make the right decision on their own.

So what happens in those meetings? Are they brainstorming earth-shattering new ideas? Are they inventing new products? Why are they getting paid to join so many of them? How can Microsoft afford to have so many of its employees fluffing about?

Because they can. Microsoft sits on stockpiles of cash, with about $60 billion earning interest in the bank. With that mystery out of the way, let’s take a look at some of those meetings: Strategy reviews, deep dives, virtual coffee breaks, quarterly off-sites, monthly get-togethers, director summits, leadership meetings, etc.

Yikes, who is going to organise all that? Fear not. Every team has their very own “business manager.” And since business managers are too senior to be bogged down with logistics, enter the legions of “support managers” and “administrative assistants” reporting to business managers.

Group Managers, Program managers, General managers, together with ‘Senior’ flavours of those and a whole new breed of directors, stakeholders, business owners, relationship leads coupled with their own countless derivatives.

All those meeting-goers are not making anything. Deciding upon and making something is hard. And if this onerous activity has to be done, then hire external consultants for it. It’s easier and less risky.

There is no creative tension, no vision these days. Left to Microsoft’s hands we’d still be toiling on overheating Vista desktops.

This company is becoming the McDonalds of computing. Cheap, mass products, available everywhere. No nutrients, no ideas, no culture.

Why write up dozens of monthly scorecards when nobody ever reads them? Worse yet, why join follow up conference calls? Why schedule get-togethers when there is no agenda? Why spend a month chasing stakeholder-committees for trivial project decisions. Why spam people’s inboxes with monthly newsletters and weekly narratives about how great our team is?

They called it out in my performance reviews: I lacked “respect for authority.”

I became cynical about the whole process. I was seen as a “rebel” and the leadership team began to marginalise me. My planned and promised promotion was cancelled.

.......

Within hours of sending this email I was summarily fired and escorted to the door, days short of my 5-year anniversary with Microsoft.
Steve Jobs managed to turn Apple into "the biggest startup in the world." So I guess it's not the size of the company that gets in the way. Someone like Steve Jobs shows up once or twice in a generation. So it is unfair to compare every tech CEO to Steve Jobs. But I do think it is possible to make the Microsoft corporate culture less sclerotic.
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At What Point Is A Company Too Big?

Microsoft CEO, Steve Ballmer, presents his pre...
Microsoft CEO, Steve Ballmer, presents his pre-show keynote at the 2010 International CES in Las Vegas Wednesday evening. (Photo credit: Wikipedia)
Microsoft’s Terrible, Horrible, No Good, Very Bad Decade
Technically Windows 8 is a step in the right direction, but there are plenty of folks who are stuck at XP and ain’t going anywhere. Those same people will complain when Windows 8 won’t run on their hardware
Whose problem is it that a lot of people still use Internet Explorer 6?

Okay, okay, I am not trying to come up to Microsoft's defense. I have no dog in the show. But I also don't feel like Microsoft should have come up with the search engine that Google did or that it should have come up with the social engine that Facebook did. I don't begrudge Microsoft for not having bought or begot Instagram.

And I think Microsoft could still get back the sexy in the gestures department if they could make it as fundamental as touch.

But that having said I do think Microsoft has been more slothful than it needed to be. It has not been a lost decade, but it sure has been slow.

Gesture will do for Microsoft what Big Data will do for Yahoo. Getting the sexy back is hard work. Some of it is to do with youth.

And I don't think a CEO change is in the offings. Through Ballmer Bill Gates gets to feel like he is perhaps still remotely running the company. That feeling. And he probably feels like noone else could do better.

Bringing touch to the PC is a big deal. Bringing gesture to all screen sizes is an even bigger deal.

I guess both Ballmer and Microsoft could lose some weight. 92,000 is a lot of people reporting to you. But then FoxConn hums just fine at 1.2 million workers. What gives?

Cyber Threats

WASHINGTON, DC - MARCH 17:  U.S. President Bar...
WASHINGTON, DC - MARCH 17: U.S. President Barack Obama makes a statement on the worsening nuclear crisis at the Fukushima Daiichi nuclear power plant in northeastern Japan March 17, 2011 at the Rose Garden of the White House in Washington, DC. Obama said that harmful level of radiation is not expected to reach to the U.S. (Image credit: Getty Images via @daylife)
Barack Obama: Taking the Cyberattack Threat Seriously
Taking down vital banking systems could trigger a financial crisis. The lack of clean water or functioning hospitals could spark a public health emergency. And as we've seen in past blackouts, the loss of electricity can bring businesses, cities and entire regions to a standstill. ..... Nuclear power plants must have fences and defenses to thwart a terrorist attack. Water treatment plants must test their water regularly for contaminants. Airplanes must have secure cockpit doors. We all understand the need for these kinds of physical security measures. It would be the height of irresponsibility to leave a digital backdoor wide open to our cyber adversaries. .... a society that cherishes free enterprise and the rights of the individual. ..... reflects the insights and ideas of industry and civil libertarians. It is sponsored by a bipartisan group of senators. It is supported by current and former homeland security, intelligence and defense leaders from both Republican and Democratic administrations
Cyber security gaps are the chink in the armor. I compare it to mental health. So many of mild mental health issues go unreported. Similarly numerous low level cyber attacks are pushed under the carpet. There is a basic unpreparedness right now.
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Hope


Yahoo: Tech Or Content

Yahoo! Art
Yahoo! Art (Photo credit: Kapil Karekar)
Yahoo Needs a New Technology
Every month, more than 700 million people around the world visit Yahoo's sites .... Yahoo's U.S. audience is second only to Google's, and larger than those of Microsoft and Facebook. ...... much of it may come from the outside, too, both from hiring promising tech executives and acquiring hot startups—two things that could be easier now given Mayer's cachet. .... Yahoo has struggled to decide whether it's a technology or a media company.
The fundamental shift Yahoo has to make with Mayer at the helm is to go back to being a technology company. That is a tall task. Yahoo is not in as bad a shape as Apple was when Steve Jobs took over. But it sure has suffered major brand damage over the years.

Good content is good news, great content is great news, but Yahoo fundamentally has to go back to being a technology company.


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Bol Bachchan

Thursday, July 19, 2012

Corporations Are People

jack welch
jack welch (Photo credit: challengefuture)
Jack And Suzy Welch: It's True: Corporations Are People
Buildings don't hire people. Buildings don't design cars that run on electricity or discover DNA-based drug therapies that target cancer cells in ways our parents could never imagine...... Buildings don't show up at a customer's factory and say, "We won't leave until we solve your inventory problem." Buildings don't encourage their employees to mentor inner-city kids in math and science. Buildings don't fund homeless shelters in Boston or health clinics in Rwanda. People do. ...... people in corporations do indeed love and cry and dance. If you don't know that, you've never been part of a team that has pulled together over coffee and late nights and shouting and laughing and created something amazing to hit a deadline. You've never been in the room when a longtime client says it's not working anymore and she's taking her business to your biggest competitor. You've never sat in the lunch room when someone runs in and says the new medical device that no one thought had a chance, the little heart valve or something like it that every engineer in the place has been working on for two years, has just passed its first human clinical trials with flying colors.
It is not either or. I believe in entrepreneurship and in market forces. But there is also a place for government action. And there are spots where both have consistently failed.
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Nokia Had The Vision

Image representing Nokia as depicted in CrunchBase
Image via CrunchBase
More than seven years before Apple Inc. rolled out the iPhone, the Nokia team showed a phone with a color touch screen set above a single button. The device was shown locating a restaurant, playing a racing game and ordering lipstick. In the late 1990s, Nokia secretly developed another alluring product: a tablet computer with a wireless connection and touch screen—all features today of the hot-selling Apple iPad..... The gadgets were casualties of a corporate culture that lavished funds on research but squandered opportunities to bring the innovations it produced to market..... This year, Nokia ended a 14-year-run as the world's largest maker of mobile phones..... Nokia is losing ground despite spending $40 billion on research and development over the past decade—nearly four times what Apple spent in the same period...... its research effort was fragmented by internal rivalries and disconnected from the operations that actually brought phones to market....... Research In Motion Ltd. RIMM +1.01% had a dominant position thanks to its BlackBerry email device, but it hasn't been able to come up with a solution to the iPhone either...... As a result, the company has lost about 90% of its market value in the past five years, and its CEO is trying to convince investors the company isn't in a "death spiral." ....... "When people say the iPhone as a concept, a piece of hardware, is unique, that upsets me." ..... grew complacent because of its market dominance. ..... On Sunday, Nokia cut the U.S. price of the phones in half, to $50...... The company started out in 1865 as a lumber mill. Over the years, it diversified into electricity production and rubber products. ...... At the end of the 1980s, the Soviet Union's collapse and recession in Europe caused demand for Nokia's diverse slate of products to dry up, leaving the company in crisis. Jorma Ollila, a former Citibank banker, took over as CEO in 1992 and focused Nokia on cellphones....... Nokia factories eventually sprang up from Germany to China, part of a logistics machine so well-oiled that Nokia could feed the world's demand for cellphones faster than any other manufacturer in the world. Profits soared, and the company's share price followed, giving Nokia a market value of €303 billion at its peak in 2000......... Early on, the CEO started laying the groundwork for the company's next reinvention. Nokia executives predicted that the business of producing cellphones that do little but make calls would lose its profitability by 2000. So the company started spending billions of dollars to research mobile email, touch screens and faster wireless networks....... After Olli-Pekka Kallasvuo, Nokia's former chief financial officer, took the helm from Mr. Ollila in 2006, he merged Nokia's smartphone and basic-phone operations. The result, said several former executives, was that the more profitable basic phone business started calling the shots. ..... Nokia's smartphones had hit the market too early, before consumers or wireless networks were ready to make use of them. And when the iPhone emerged, Nokia failed to recognize the threat. ....... "You were spending more time fighting politics than doing design," said Alastair Curtis, Nokia's chief designer from 2006 to 2009. The organizational structure was so convoluted, he added, that "it was hard for the team to drive through a coherent, consistent, beautiful experience." ....... "What struck me when we started working with Nokia back in 2008 was how Nokia spent much more time than other device makers just strategizing," Qualcomm Chief Executive Paul Jacobs said. "We would present Nokia with a new technology that to us would seem as a big opportunity. Instead of just diving into this opportunity, Nokia would spend a long time, maybe six to nine months, just assessing the opportunity. And by that time the opportunity often just went away." ...... When Mr. Elop took over as CEO in 2010 Nokia was spending €5 billion a year on R&D—30% of the mobile phone industry's total, according to Bernstein research. Yet it remained far from launching a legitimate competitor to the iPhone.
How do you explain something like this? I guess the long term beats the short term. That is the take home lesson. But then Netflix did think long term to bet on streaming. I guess it is also about timing and execution.

The wisdom is Nokia should have adopted Android, and Microsoft should have gone for Samsung. With Android on, a $50 smartphone would sell like crazy.


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Good Job Marissa