Today Microsoft™, still one of the behemoths of the software industry announced a major new reorganization of the company to “enable innovation at greater speed, efficiency” In the message they detail how the re-org will make Microsoft all things to all people, and even go into how the “dotted lines” of the new organization will make them more nimble, etc… Instead, maybe the Board should have asked Balmer to resign. He is the one who has been making these decisions on where the company has been headed, and that strategy isn’t working in this new mobile based tech world. Their flagship OS, Window 8, has been derided by the Tech community and the non-tech people as bad. Their mobile OS is struggling against Android and iOS and shows no indication that it will catch up. The Xbox launch was handled really bad, giving Sony an opportunity to overtake the Xbox in the next gen console wars. Maybe this re-org was needed, but the biggest change should be at the top.
Edit- Found this nice summary from slashdot poster DCnjoe60
Except that Ballmer has been at the helm for most of that time and ultimately responsible for the organization and infighting as it is part of the corporate culture at Microsoft. That is why most boards bring in a whole new management team when such a top down re-organization is required. Most boards realize that you only get one chance to get it right. That’s why you don’t let the fox who has been raiding the hen house be the one who reorganizes the hen house. Leaving Balmmer and the rest of the management team in place means that board believes that management isn’t the problem, but the workers are. That doesn’t bode well for the future of Microsoft as the workers aren’t the ones who have created the corporate culture nor are they the ones who have made the company a shadow of what it once was or could have been.