Nadella Rejigs Core Team To 'Stay Relevant'

by CXOtoday News Desk    Jun 18, 2015

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Microsoft has reshuffled its executive ranks, removing former Nokia chief Stephen Elop and handing more responsibilities to Windows head Terry Myerson. The company has also trimmed down on the number of major engineering divisons from four to three.

CEO Satya Nadella mentioned  in an email he sent to Microsoft employees - said the changes are designed to “better align our capabilities and, ultimately, deliver better products and services our customers love at a more rapid pace.”

According to Nadella, the IT major is aligning its engineering efforts and capabilities to deliver its strategy particularly around its three core ambitions: reinvent productivity and business processes, build the intelligent cloud platform, and create more personal computing,” said the CEO of Microsoft. “

The exit of the executives, particularly Elop, whose Devices group will be rolled into Microsoft’s Windows unit, signals a shift of emphasis away from hardware and back to Microsoft’s core business, believe experts, who had run the company’s Devices team following his return to Microsoft after it bought Nokia for $7.9 billion. That deal that was finalized just last year had left Microsoft with a money-losing business and only 3 percent of the smartphone market.

The purchase of Nokia’s handset business was the last major decision by former Microsoft CEO Steve Ballmer, which was not a favorite one among investors. The deal brought Elop, once considered a successor to Ballmer, back to Microsoft to run its huge Devices unit. He had worked at Microsoft from 2008 to 2010, running the company’s Office unit.

Elop’s latest tenure at Microsoft was marked by an unsuccessful struggle to popularize Windows phones. He was widely mocked for insensitivity last year after he sent an email to colleagues that began with a cheery “Hello there” and then announced 12,500 layoffs in the 11th paragraph, says a Reuter report.

The group Elop oversaw now falls into Executive Vice President Terry Myerson’s hand, who will now control both Operating Systems Group (as before) and Microsoft Devices Group.. Nadella said it would focus on “enabling more personal computing experiences powered by the Windows ecosystem”.

Microsoft is set to launch Windows 10 on July 29, the first operating system designed to run across PCs, tablets and phones.

Of the other  executives leaving the company are Eric Rudder, vice president of advanced technology and education; and Kirill Tatarinov, who had been running Dynamics.
 
Mark Penn, the former political advisor who joined Microsoft in 2012, ran the anti-Google Scroogled campaigns, and was most recently the company’s chief insight officer, a role that was never clearly defined. Penn will found a new digital marketing equity firm, Stagwell Group, that has raised $250 million in capital, some of it from Ballmer’s billions.
 
Executive Vice President Scott Guthrie will continue to lead the Cloud and Enterprise team focused on building the intelligent cloud platform that powers any application on any device. The team will also focus on building high-value infrastructure and business services that are key to managing business processes, especially in the areas of data and analytics, security and management, and development tools.

As a part of this announcement, the company will move the Dynamics development teams to the Cloud and enterprise team, enabling the company to accelerate ERP and CRM work and bring it into the mainstream enterprise engineering and innovation efforts.

Executive Vice President Qi Lu will continue to lead the Applications and Services Group (ASG) focused on reinventing productivity services for digital work that span all devices and appeal to the people who use technology at work and in their personal lives.

Following these changes, Microsoft’s Senior Leadership Team totals 12 executives:

Satya Nadella, Chief Executive Officer

Chris Capossela, Executive Vice President and Chief Marketing Officer

Kurt DelBene, Executive Vice President, Corporate Strategy and Planning

Scott Guthrie, Executive Vice President, Cloud and Enterprise

Amy Hood, Executive Vice President and Chief Financial Officer

Kathleen Hogan, Executive Vice President, Human Resources

Peggy Johnson, Executive Vice President, Business Development

Qi Lu, Executive Vice President, Applications and Services Group

Terry Myerson, Executive Vice President, Windows and Devices Group

Harry Shum, Executive Vice President, Technology and Research

Brad Smith, Executive Vice President and General Counsel, Legal and Corporate Affairs

Kevin Turner, Chief Operating Officer