The NYTimes today dissects Microsoft’s recent reorg of their executive team managing online operations and it is not pretty. The executives who would be managing a Yahoo integration are tasked with working both on online initiatives and Vista (!???) two completely unrelated businesses. The online businesses are completely distinct from the operating system/desktop business and there is not (or should not be) any crossover.
Here’s the Times take on what looks like the screwiest org chart imaginable:
“The online business will now be split between four executives, who all work for Kevin Johnson, a former I.B.M sales executive. Three of those four make up a group charged with the overall strategy and marketing for Microsoft’s Internet services.
Marketing and product management for Microsoft’s online operations will be handled by Bill Veghte, who also performs that role for Windows Vista and its successors. (His unit is called the online services & windows business group.)
Satya Nadella, a longtime engineer, now will run what is called the search, portals and advertising group. Mostly, this will look after the engineering for Microsoft’s Web search, advertising systems and related systems. Awkwardly, he will also have responsibility for the programming of the MSN portal, which is run by Joanne Bradford.
Mr. Nadella doesn’t even control all the technology related to the Internet operations. Steven Sinofsky, runs engineering for both user interface of Windows and the Windows Live services like e-mail and instant messaging. Mr. Sinofsky, however, is not part of the three-person group overseeing online strategy.
The third member of the Microsoft online triumvirate is Brian McAndrews, the former chief executive of aQuantive, the advertising company Microsoft bought last year. His area is dubbed the advertiser and publisher solutions group, includes both engineering and marketing for the company’s advertising systems.”
The only logic behind this mess is that Microsoft so desperately needs to fend off the emergence of online applications that is has to cripple its new management team by giving them an inherent, every day conflict of interest. The problem here is that Office, their biggest cash cow, may see its market disappear overnight. Only by tasking their team to maintain links between the desktop and browser-based applications can they hope to stave this off.
Google, by comparison, has no such strategic imperative. They only need relevant traffic so they can give away increasingly better online software and still support their advertising model.
If I worked for Yahoo, I’d be clearing out my cube.