Microsoft's Unification Is Already a Smashing Success

Months after Microsoft's (NASDAQ: MSFT  ) major reorganization, evidence is emerging that the new strategy is starting to pay off. The move is making Microsoft function a bit more like it did years ago, and slightly more like its major competitor Apple.

Increasing productivity and decreasing internal competition
As a recent CITEworld article points out, many Microsoft employees are seeing an increase in collaboration across multiple segments of the company, instead of just hunkering down to work on one product or service. Dave Campbell, Microsoft CTO for the cloud and enterprise team, said part of the reorganization is to make employees 15%-20% more efficient, while meshing the idea of what consumers and businesses need into one cohesive goal. Campbell told CITEworld that some of the departments are now spending a "tremendous amount of time together," when they hadn't before.

In a way, Microsoft's new efforts mirror how Apple floats employees between projects and divisions in order to meet deadlines, with software and hardware engineers moving to different tasks as needed. The idea being that the company can innovate and create products and services faster and more efficiently if employees are collaborating on projects rather than working in separate departments.

This type of teamwork is imperative to long-term company growth, but it's often hard to achieve in large organizations -- a lesson BlackBerry has learned all too well. Last month a Globe and Mail article pointed out that as BlackBerry grew, its structure made it difficult for the company to make decisions and hold people accountable for those decisions. Massive growth combined with autonomous departments slowed innovation, resulting in delayed deadlines, all of which is linked to the company's current perilous predicament.

Microsoft isn't even close to being on the same troubling path as BlackBerry. Despite the Redmond-based company's shortcomings with products like its Surface tablet, Microsoft's Windows Phone OS is making gains and is quickly becoming the third option behind iOS and Android.

But Microsoft is bigger than just its mobile products, which is exactly why shifting employees between projects is a great long-term strategy. The company can pull resources on areas that work well and use them in divisions that previously were underperforming or slow to innovate. The challenge going forward will be for Microsoft to balance adaptability with company-wide goals.

At least for now, it seems Microsoft is beginning to strike that balance -- and it's coming at the right time. As the company pursues its next CEO, Microsoft will need a cohesive approach in order to take on its competition. Though a new CEO will likely implement his or her own ideas, a successful "One Microsoft" could help steer those new ideas in the right direction.

This Fool's putting his money where his mouth is
Microsoft may be working hard at company cohesiveness, but there's already one incredible tech stock that's growing twice as fast as Google and Facebook, and more than three times as fast as Amazon.com and Apple. In our jaw-dropping investor alert video The Motley Fool's chief technology officer tells you why he's is putting $117,238 of his own money on the table, and why he's so confident this will be a huge winner in 2013 and beyond. Just click here to watch.


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2686306, ~/Articles/ArticleHandler.aspx, 12/20/2014 11:07:56 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement