Management the Microsoft Way David Thielen

Contact Information David Thielen news.thielen.com/thielen.books.management These slides ftp.thielen.com/pub/seminars/SD99_msft.ppt Somewhere on the SD00 website

What We Are Here For To duplicate Microsoft’s success This is not hard –But it does require a cultural change

Fundamental Change Franco-Prussian War –Everyone (even most Germans) thought France would win. But Germany had implemented a better system and destroyed France Change now or die –By the time you realize you’re in trouble, it’s too late.

Why are we in Business To make $$$ –To make a profit –To increase the stock (options) value Microsoft does not follow this model –Making money is tertiary So why are they in business???

Total World Domination To win –Conquest, not security To claim 100% of every strategic market This is the key –It’s easy to hear, difficult to truly understand The Klingon Corporation

A More Successful System Market dominance is not the reason –The baby bells are scared of Microsoft Lack of ethics is not the reason –The mafia does not own the fortune 500 Long term this method beats the old way Other companies use this system –It will overtake most industries in 10 years

Hire the Top 5% The real top 5% –Not what you pretend it is Pay what it takes –Salary, Options The alternative is you compete against the best - without the best yourself Do not use outsourcing/consultants for core work

Bet the Company Microsoft… –Went from no Internet to dominant in 9 months –Killed DOS and won Windows and Office Someone will take their market –Don’t lose your markets to another company A toe in the water will not beat someone who commits everything

Require Failure You can forbid failure –And get few successes You can require success –And accept failure as part of the process Most companies forbid failure –And thereby have few successes Deliver bad news quickly –Hiding problems merely makes them worse

Qualified Managers Technically qualified –How else can they make intelligent decisions –Yes this means many managers are not qualified. Don’t bullshit the employees –They know when you are Imagine asking the CEO of a well-run company something.

Perform, Perform, Perform Based on performance today and tomorrow –Who cares what they did 1 or 10 years ago The keys to performance –Interesting work –Measured by performance & success –Peer pressure

Shrimp vs. Weenies When a job absolutely, positively requires 5 people - assign 4. –No bloated bureaucracy –Everyone must pull their own weight –Costs are minimized –Can get more accomplished

Bill is Watching Knows what is happening –Gets unsolicited from line employees daily - and acts on it Has tight control of the company –Calls VPs s every Saturday –Numerous retreats –BillG meetings All managers do this

Culture Ownership Only then do people emotionally commit Freedom And with it, responsibility Focus No one gives their life for two causes Teams People you can depend on, people who depend on you

More Culture Practical jokes –Builds up Esprit-de-core Stock Options –Keeps you going during the rough times It comes down to one thing –Microsoft treats their employees as grown-ups

Stop the Insanity Effective meetings –Only when necessary –Decisions are made by the end of the meeting Information is not power Eat your own dog food

Home Away From Home Individual offices Same size, furniture, etc. As many with windows as possible Small buildings No dress code Free soda pop Open supplies No set hours

Just Another Startup Each division operates as an autonomous unit in many ways Each group has a start-up mentality So Microsoft is just another start-up –With 16 Billion in reserves –With 25,000 people –A startup can continue to grow by 40%/year

There are others Other companies are following this model It will be standard procedure –For those companies that survive the next 10 years...

The Future It’s all very simple. Each company will choose to evolve or die. Of those that choose to evolve, some will be successful enough that they will survive and some will even prosper For the remainder, it is very simply… The End