Michal Ždanský Microsoft CEO Steve Ballmer announced today that he will step down within a year; he will officially step down once his successor is elected. He announced his departure in an open letter to the Microsoft team, in which he also explained how he envisions the future of the company.
Steve Ballmer took over the role of CEO in 2000 when founder Bill Gates stepped down from the top job. He joined Microsoft as early as 1980 and was always part of the executive team. During his time as CEO, the company with Steve Ballmer experienced many successes, for example with the release of the popular Windows XP and later Windows 7. The Xbox game console, whose third iteration we will see this year, must also be considered a great success.
However, the missteps that the company committed during Ballmer's reign were also noticeable. Starting with a failed attempt to compete with the iPod with Zune music players, a late response to the new trend in smartphones, when in 2007 Steve Ballmer outright laughed at the newly introduced iPhone. Back then, Microsoft waited too long to introduce a new mobile system, and today it holds third place with a share of around 5%. Microsoft also hesitated when introducing the iPad and the subsequent popularization of tablets, when it came up with the answer only in the second half of last year. The latest Windows 8 and RT have also received a very lukewarm reception.
The new successor to the position of CEO will be chosen by a special commission chaired by John Thompson, and the founder Bill Gates will also appear in it. The company will also help with the search for a new executive director Heidrick & Struggles, which specializes in executive search. Both externs and in-house staff will be considered.
In recent years, Steve Ballmer has been seen by the public and shareholders as a drag on Microsoft. In response to today's announcement, the company's shares rose 7 percent, which may also indicate something. A month before the announcement, Ballmer also completely reorganized the company's hierarchy, where he switched from a divisional model to a functional model, which is also used by Apple, for example. Another top executive, Windows chief Steven Sinofsky, also left Microsoft last year.
You can read the full open letter below:
I am writing to let you know that I will be stepping down as CEO of Microsoft within the next 12 months, after a successor has been chosen. There is never a good time for a change like this, but now is the right time. I originally intended to time my departure in the midst of our transformation to the devices and services the company focuses on to help customers do the things that matter most to them. We need a long-term executive director to continue this new direction. You can read the press release in the Microsoft Press Center.
At this time, Microsoft is undergoing an important transformation. Our leadership team is amazing. The strategy we have created is first class. Our new organization, which focuses on the areas of function and engineering, is right for future opportunities and challenges.
Microsoft is an amazing place. I love this company. I love how we were able to invent and popularize computing and personal computers. I like our biggest and boldest decisions we've made. I like our people, their talent and willingness to accept and use their capacities, including their wits. I love how we envision working with other companies to succeed and change the world together. I like the broad spectrum of our customers, from regular customers to businesses, across industries, countries and people of all ages and backgrounds.
I am proud of what we have achieved. We've grown from $7,5 million to nearly $78 billion since I started at Microsoft, and our employees have grown from 30 to nearly 100. I feel good about the role I've played in our success, and I've been mentally 000% committed. We have over one billion users and have made a significant profit for our shareholders. We have delivered more profit and return to shareholders than virtually any other company in history.
We are passionate about our mission to help the world and I believe in our successful future. I value my stake in Microsoft and look forward to continuing to be one of Microsoft's largest owners.
It is not an easy matter for me, not even from an emotional point of view. I am taking this step in the best interest of the company I love; aside from my family and closest friends, it's the thing that matters most to me.
Microsoft's best days are ahead of it. Know that you are part of the best team in the industry and have the right technology assets. We must not waver during this transition, and we will not. I'm doing everything I can to make it happen, and I know I can count on all of you to do the same. Let us be proud of ourselves.
Steve
Congratulations Microsoft
As in the era of Bill Gates, in the era of Ballmer, Microsoft introduced products that were good and caught on, and products that were not so good and didn't catch on. It is true that Ballmer rather slept on important technological advances and then caught up with them with a delay, but I must say that, even if late, he is slowly catching up with competing products. It's just going to take him a little longer. But I digress...what I wanted to say is that if they decide to look for someone from the outside, someone who hasn't grown with the company, hasn't experienced its successes and failures, then let Ballmer stay there. No one who comes to the company from outside will take care of it with the same loyalty as someone who has worked in it for half their life.