Good piece in Forbes on Microsoft's Midlife Crisis.
What has gone wrong? Microsoft, with $40 billion in sales and 60,000 employees, has grown musclebound and bureaucratic. Some current and former employees describe a stultifying world of 14-hour strategy sessions, endless business reviews and a preoccupation with PowerPoint slides; of laborious job evaluations, hundreds of e-mails a day and infighting among divisions so fierce that it hobbles design and delays product releases. In short, they describe precisely the behavior that humbled another tech giant: IBM in the late 1980s. Tellingly, IBM reached a point of crisis just over three decades after it started selling computers to commercial users.
"Microsoft has become what it used to mock," says Gabe Newell, a developer on the first three versions of Windows. At late-night rounds of poker with "Bill and Steve" in the mid-1980s, he says, "we laughed at IBM. They had all this process for monitoring productivity, and yet we knew they had spectacularly bad productivity. That's Microsoft now."
