Long before Apple got its mojo back, the king of the technology hill was 
Microsoft.

Microsoft simply dominated the PC industry, but it has recently fallen back. It 
(almost) missed the Internet Revolution, had a tablet that could've pre-empted 
the iPad and other innovative products that withered in the R&D vine.

What happened? Vanity Fair editor Kurt Eichenwald interviewed dozens of 
Microsofties and delved into troves of corporate emails to discover the culprit 
of the malaise that has plagued the tech giant for years: bureaucracy.

Eichenwald’s conversations reveal that a management system known as “stack 
ranking”—a program that forces every unit to declare a certain percentage of 
employees as top performers, good performers, average, and poor—effectively 
crippled Microsoft’s ability to innovate. “Every current and former Microsoft 
employee I interviewed—every one—cited stack ranking as the most destructive 
process inside of Microsoft, something that drove out untold numbers of 
employees,” Eichenwald writes. “If you were on a team of 10 people, you walked 
in the first day knowing that, no matter how good everyone was, 2 people were 
going to get a great review, 7 were going to get mediocre reviews, and 1 was 
going to get a terrible            review,” says a former software developer. 
“It leads to employees focusing on competing with each other rather than 
competing with other companies.”

When Eichenwald asks Brian Cody, a former Microsoft engineer, whether a review 
of him was ever based on the quality of his work, Cody says, “It was always 
much less about how I could become a better engineer and much more about my 
need to improve my visibility among other managers.” Ed McCahill, who worked at 
Microsoft as a marketing manager for 16 years, says, “You look at the Windows 
Phone and you can’t help but wonder, How did Microsoft squander the lead they 
had with the Windows            CE devices? They had a great lead, they were 
years ahead. And they completely blew it. And they completely blew it because 
of the bureaucracy.”

Link - via The Atlantic Wire

 


http://www.neatorama.com/2012/07/03/why-microsoft-fell-behind-bureaucracy/



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