Bill Gates: A lame duck industrialist?
By Chris Green,
Ten years ago, the thought of Microsoft without Bill Gates seemed almost impossible to comprehend - the two were so heavily intertwined as to make them impossible to separate.
However, time has an uncanny way of changing things and in the last three years the Seattle-based software company has done a remarkable job of untangling itself from its co-founder and chairman in preparation for his departure from day-to-day business operations.
Steve Ballmer has solidified his position as chief executive. Running day-to-day operations, he has kept things steady despite a barrage of anti-trust investigations and fines hitting the company. The arrival of Ray Ozzie following the acquisition of Groove Networks was low-key, but is perhaps the most important appointment of recent years.
Having taken on the role of chief software architect from Gates, the highly-regarded Ozzie will be the man ultimately responsible for the company's product roadmap, with Ballmer focused on selling it to the world.
Other key appointments in the last three years include Craig Mundie to the role of chief research and strategy officer, along with Kevin Johnson who took over the role of president of the platforms and services division, and who oversaw the acquisition of online advertising business aQuantive last year. These appointments illustrate how responsibility for developing products and moving Microsoft into new business areas is being delegated to Ballmer's management team, removing the need for Gates to have day-to-day involvement in strategy and product decisions.
An article published yesterday in the Wall Street Journal has suggested that the business relationship between Gates and Ballmer is strained, or at least was in the early days following Ballmer's appointment to the position. The article described the situation as one of Ballmer getting the title of chief executive, but Gates retaining the power and authority within the company.
This rift allegedly triggered a year-long struggle between the two men that until now has remained largely under wraps. The Journal article claimed the conflict between the two men paralysed business-strategy decisions for over a year and that the company still wrestles with it today.
With that in mind, it is little wonder that Ballmer has restructured the senior management team at the company to ensure that roles and negotiations previously carried out by Gates could be placed with other people, aiding the transition and his eventual departure.
Once Gates leaves on 27 June, "I'm not going to need him for anything. That's the principle," Ballmer said in the Journal article. "Use him, yes, need him, no." The comment is not malicious, Ballmer and Gates continue to be very close. It simply illustrates the business need for Microsoft to reduce and remove its need for Gates on its own terms, rather than risk having the decision made by other factors such as an unexpected death or illness.
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