Case study application LEADING YOUR BUSINESS AT MICROSOFT CORPORATION Microsoft
ID: 343998 • Letter: C
Question
Case study application
LEADING YOUR BUSINESS AT MICROSOFT CORPORATION
Microsoft is the largest software develop- ment organization and one of the most successful businesses in the world. In its relatively short history, growth has characterized almost every aspect of the com- pany. Growth fueled not only Microsoft’s repu- tation and no small number of millionaires, but it also demanded that the Microsoft organi- zation mature. As technologies, products, markets, and revenues grew, so did the oppor- tunities for professional advancement. Soft- ware development engineers that wanted to guide, shape, and manage the organization’s growth found plenty of chances to become managers, directors, and vice presidents.
After years of double-digit growth, senior management at Microsoft worried that pro- motion of the young and brilliant technologists it had recruited was occurring too fast. While they understood technology, they were ill pre- pared to manage strategy, structure, people, and change. Interviews with successful and unsuccessful Microsoft managers about the competencies necessary to lead a business confirmed these suspicions. CEO Steve Ballmer believed that the speed of change in the soft- ware industry demanded leadership from the middle of the organization where people were closest to the technology and customers. He commissioned Microsoft’s Management Devel- opment Group (MDG) to create a series of workshops aimed at developing the future leaders of the organization. Three courses were envisioned for the series, including one focused on strategic thinking and strategic change.
The MDG group contacted an OD practi- tioner with a background in educational inter- ventions, strategy, and large-scale systems change. Together with internal OD practi- tioners and other members of the MDG organization, the OD practitioner interviewed additional managers, discussed program phi- losophy and company culture, shared strategy and strategic change concepts, and proposed a variety of methods to transfer the topics of strategic leadership to the participants.
After several weeks of discussions, a two- day workshop design began to emerge. It con- sisted of a variety of learning technologies and was based on a principle and philosophy of self- managed learning. That is, the OD practitioner and the MDG consultants assumed that the par- ticipants, already having achieved a middle- management position, would possess a broad range of experiences and knowledge. The pur- pose of the workshop would be to marry that experience with the concepts from strategy and change. A number of delivery methods, including lectures, videos, experiential exercises, and case studies, were used to expose the parti- cipants to certain topics, such as goals and goal setting, distinctive competencies, environmental scanning, strategy, and strategy implementation. At the beginning of the workshop, the partici- pants would be allowed to form “peer consulting teams” and, following an input module, the teams would work individually and then in groups to apply the concepts to their own busi- ness. In this way, the participants actually left the workshop with a roughed-out strategic plan.
The design was “beta tested” with a group of about 20 middle managers and their com- ments, reactions, and suggestions were used to make adjustments in different parts of the workshop design. For example, the peer con- sulting groups turned out to be a very powerful idea and all of the groups wanted more time at the beginning of the workshop to explain their business so that the other members of the group had a good understanding of the compet- itive issues. After the beta workshop, the pro- gram was marketed to all middle managers at the Redmond, Washington, headquarters. Eventually, middle managers in Asia, Canada, and Europe were included. Over two years, about 500 of Microsoft’s most important future leaders went through the workshop.
Ten days after the workshop, an evaluation was emailed to all participants for the reactions and feedback. This provided an ongoing data- base to ensure that the program continued to meet the needs of the middle managers. In addition, a qualitative study of the workshop’s
impact was conducted about a year into the pro- gram. A variety of information about how partici- pants had used the workshop was gathered. Most participants rated the course highly, found the mate- rials relevant and useful, had applied many of the frameworks and models in their day-to-day work, and appreciated the opportunity to stop and think about their business. The most highly rated feature of the class was the peer-to-peer learning and the business view the participants gained, there were few examples of direct impact on the organization. However, only a few cases of dramatic success were found, including a substantial increase in stra- tegic focus, clarity, and profitability within one of the Microsoft Office groups; a merger between two groups that was conceived during the workshop and then executed successfully after the program; and the launching of a new strategy within groups of the MSN and Xbox organizations. In each of these cases, the managers reported taking the ideas and plans worked out in the workshop and involving their direct reports in additional discussions. These additional inputs along with the original plans became the basis for implementing changes.
Study the case deeply and write about it.It should be in following steps
Introduction
Background
Proposed solution
Alternatives
recommendations
Explanation / Answer
Microsoft is one of the largest software development company in the world and has grown very quickly in the last few decades. This quick growth gave birth to a successful business, several millionaires and also a demand for the organization to become mature.
When the company was young, the software developers were easily promoted to senior positions such as managers, vice presidents and directors. However, as the company began to mature it was clear that many of these young software developers were not properly equipped to function in a managerial or strategic capacity. The CEO (at that time) Steve Balmer believed that something needed to be done to strengthen the organization.
Steve suggested that in order to make the organization more prepared and ready for key strategic decisions, the middle management need to step up. His believe was that middle managers were closest to customers and technology. He commissioned MDG (management development group) to train the middle management through workshops and training events. The participants were exposed to a large number of different training delivery methods such as videos, lectures, exercises and case studies. At the beginning of the sessions several middle managers would form a team and try to solve individual and group case studies. Ten days after the workshops the participants’ feedback was collected to improve the workshop process and quality.
The solution turned out to be decently successful. In the next two years, the workshop generated about 500 leaders in Microsoft. However their business impact was not as expected. While the participants attributed many of their new skills to the program, they mostly applied the learnings to their current work environment and process. There were only a few cases of dramatic success as per business strategy.
An alternate solution the MDG program could have been an overall focus. For example, instead of training only the middle management employees, the training could begin at a grassroots level. Maybe not as thorough as the workshops but every quarter a single training session could help the younger employees to prepare. This would have been a slightly lengthy process but there would be more chances of successful business strategies in the longer run.
Recommendations include spreading the MDG program to not only middle managers but to the junior managers as well. This could help in fostering new ideas and strategic thinking within the whole organization.