I read in Friday's Wall Street Journal that Bill Gates announced his retirement from Microsoft effective in two year's time. Ray Ozzie is to become "chief software architect," apparently effectively immediately.
As I have written before in this column, here, and here, I think this will be a good move, but at least two years too late. Ozzie had impeccable software design credentials before he came to Microsoft. Actually, better than Gates'. One technology veteran, whose name I do not recall, was cited as having credited Gates with inventing the "software in a box" business, but said Bill never really understood or came to terms with the 'free online software' approach that is currently gutting Microsoft's business model. Yes, it's time for Chairman Bill to go play with his billions and leave the serious business of rescuing Microsoft to more open-minded adults.
Rather than, as I suggested last fall, have Ozzie take a $20MM check down the road and start up a new company for Microsoft, Gates is stepping out of the way at the parent instead. Trouble is, the culture is still what it is, and Ozzie may have challenges changing it for the better. And Gates will be around the company for two more years.
Corporate history is replete with examples of how resistant to change companies are when the retiring leader remains "around." The best example I recall is Harry J. Gray, of United Technologies, hampering Rand Araskog after the so-called "transition" of leadership from the former to the latter. I'm sure there are other examples.
About the best that can be said of this change, for Microsoft shareholders, is that at least Gates is going to subject them to no more than two additional years of value destruction before making way for better, more objective and value-creating management. If the shareholders are lucky, Ray Ozzie won't have left in the meantime due to clashes with Ballmer or other long-time Microsoft veterans..
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