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Microsoft Steve Ballmer Reorganisation

Microsoft CEO Steve Ballmer announces “far-reaching realignment of the company”

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By Jennifer Faull, Deputy Editor

July 11, 2013 | 2 min read

Microsoft CEO Steve Ballmer has outlined plans for a reorganisation of the company as it seeks to innovate with greater speed and execute its strategy better in the mobile-dominated market.

The subject line of the 3,000 word memo summed up the new strategy: ‘One Microsoft.’

There will now be fewer units as a senior management take on new roles, in a bid to speed up the development of hardware and Web-based services.

“Improving our performance has three big dimensions: focusing the whole company on a single strategy, improving our capability in all disciplines and engineering/technology areas, and working together with more collaboration and agility around our common goals,” said Ballmer.

Now, Julie Larson-Green, head of Windows, will oversee all hardware including the Surface tablet and Xbox, as she leads the Devices and Studio Engineers Group.

Windows Phone software chief Terry Myerson will now lead the Operating Systems Engineering Group in the development of hardware as well as Windows and Xbox operating systems and the core cloud services.

Ballmer also announced he would be organising the company by function to allow executives to focus on building products. Engineering (including supply chain and datacenters), marketing, business development and evangelism, advanced strategy and research, finance, HR, legal, and COO (including field, support, commercial operations and IT), will now stand separately.

Under the engineering umbrella, there will be four key areas: OS, Apps, Cloud, and Devices.

In terms of marketing the new proposition, Ballmer said: “Our marketing, advertising and all our customer interaction will be designed to reflect one company with integrated approaches to our consumer and business marketplaces."

Tami Reller will lead all marketing while Mark Penn will look at the broad marketing strategy and will work with Tami on new advertising and media functions.

On the news, Microsoft shares rose 1.7 percent to $35.30.

Microsoft Steve Ballmer Reorganisation

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