Leading Your Business at Microsoft Corporation Microsoft is the largest soltware development organization and one of the most successful busi- nesses in the world. In its relatively short history, growth has characterized almost every aspect of the company. Growth not only fueled Microsolt's reputation and no small number ol millionaires, but also demanded that the Microsoft organiza- tion mature. As technologies, products, markets, and revenues grew, so did the opportunities [or professional advancement. Soltware development engineers that wanted to guide. shape, and man- age the organization's growth found plenty of chances to become managers, directors. and vice presidents. After years of double-digit growth. senior manage- ment at Microsolt worried that promotion of the young and brilliant technologists it had recruited was occurring too fast. While they understood technology, they were ill prepared to manage strategy, structure, people, and change. Interviews with successlul and unsuccessful Microsoft man- agers about the competencies necessary to lead a business confirmed these suspicions. CEO Steve Ballmer believed that the speed of change in the software industry demanded leadership from the middle of the organization where people were closest to the technology and custom- ers. He commissioned Microsolt's Management Development Group [MDGl to create a series of workshops aimed at developing the luture lead- ers of the organization. Three courses were envi- sioned for the series, including one focused on strategic thinking and strategic change. The MDG group contacted an {JD practitioner with a background in educational interventions, strategy, and large-scale systems change. Together with the internal {JD practitioners and other members of the MDG organization. the DD practi- tioner interviewed additional managers, discussed program philosophy and company culture, shared strategy and strategic change concepts, and pro- posed a variety ol methods to transfer the topics of strategic leadership to the participants. After several weeks of discussions, a two-day work- shop design began to emerge. It consisted of a valiety of learning technologies and was based on CHAPTER 18 Developing Talent useful, had applied many of the lrameworks and models in their day-to-day work, and appreciated the opportunity to stop and think about their busi- ness. The most highly rated feature of the class was the peer-to-peer learning and the business view the participants gained. and there were few examples of directimpact on the organization. However, only a lew cases of dramatic success were found. in clud- ing a substantial increase in strategic focus, clarity. and profitability within one of the Microsolt Office a plinciple and philosophy of self-managed learn- ing. That is, the OD practitioner and the MDG consultants assumed that the participants, already having achieved a middle-management position. would possess a broad range of experiences and knowledge. The purpose ol 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 participants to certain topics, such as goals and goal setting. distinctive competencies. environmental scanning, strategy. and strategy implementation. At the beginning of the workshop, the participants 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 business. In this way, the par- ticipants actually Iclt the workshop with a roughed- out strategic plan. The design was "beta tested\" with a group of about 20 middle managers. and their comments. reactions, and suggestions were used to make adjustments to dillerent parts ol the workshop design. For example, the peer consulting groups turned out to be a very powerlul 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 ol the competitive issues. Alter the beta workshop. the program 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 Microsolt's most impor- tant 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 database to ensure that the program continued to meet the needs of the middle managers. In addition. a quali- tative study of the workshop's impact was con- ducted about a year into the program. A variety of information about how participants had used the workshop was gathered. Most participants rated the course highly, found the materials relevant and 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 implementing 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 [or implementing change s