Five to replace one?
Since taking over from Steve Ballmer as CEO at Microsoft two years ago, Satya Nadella has made a host of management and organizational changes.
More came Thursday with the news that long-time COO Kevin Turner is leaving – and his responsibilities will be shared among five executives. Nadella says the company needs “one feedback loop,” and he believes the changes will help create that.
In a blogpost early Thursday ( 5 a.m. PDT) Nadella told Microsoft’s employees about the departure. Turner is going to become CEO of Citadel Securities.
He was one of the few remaining top job holders from the Ballmer regime. Four executives departed a year ago.
His loss is a mojor one, reports TechCrunch.
“Turner was actually a key figure at Microsoft (Nasdaq: MSFT) and was involved in everything from sales and marketing to product development, and after over a decade at the company in which included many changes internally and in the industry at large, perhaps he was ready to move on to a new challenge,” the tech news website says.
Here is Nadella’s blogpost:
From: Satya Nadella
To: Microsoft All Employees
Date: Thursday, July 7, 5:00 a.m. PT
Subject: Senior Leadership Team Update
I want to share with you that Kevin Turner has been offered the opportunity to become chief executive officer at Citadel Securities and as a result will leave Microsoft. Kevin has made a tremendous impact at Microsoft over the past 11 years. He built the sales force into the strategic asset it is today with incredible talent while at the same time more than doubling our revenue and driving customer satisfaction scores to the highest in company history. I have learned a lot from Kevin over these past few years and wish him all the best as he takes on this broader CEO role.
For the past year, Kevin and I have spoken a great deal about the transformation we are enabling our customers to drive. We have come a great distance, and we need to continue to reach for the next level of customer centricity and obsession in everything we do — sales, marketing, services and product development. It’s very important to have “one feedback loop” across all parts of the company with customer value and satisfaction at the center. This means we must operate, learn and continuously improve collectively. To this end, with Kevin’s departure, I have made the decision to more deeply integrate the current SMSG organization into the rest of Microsoft and form one unified senior leadership team. As a result, I am pleased to announce the following changes are effective immediately, and I appreciate that Kevin will stay with Microsoft through the end of July to help with the transition.
- Judson Althoff will lead the Worldwide Commercial Business, which will focus on the commercial segments, inclusive of EPG, Public Sector, SMS&P, DX and Services.
- Jean-Philippe Courtois will lead Global Sales, Marketing and Operations, which span all of Microsoft’s 13 areas across our North America and international businesses as well as the global Marketing and Operations organization.
- Chris Capossela will lead the Worldwide Marketing and Consumer Business, which includes CCG, MSA and PSM, OEM, and Microsoft Retail Stores, in addition to his current worldwide marketing team.
- Kurt DelBene will now also lead IT and Operations, in addition to Corporate Strategy.
- Amy Hood will now also lead the current SMSG finance team and WWLP, in addition to the central finance team.
Jean-Philippe and Judson will report directly to me and join the senior leadership team starting today. Jean-Philippe will take full accountability for the Microsoft North America business also starting today, and Judson will remain as acting lead for day-to-day operations until a replacement for him is announced. Together they are working on a plan for the functions comprised in today’s Worldwide Marketing and Operations team, given it will span both of their organizations in the future.
This year, I had the opportunity to visit more than 20 subsidiaries across five continents where I saw firsthand how each subsidiary team drives business in the context of Microsoft’s mission, ambitions and culture as well as our core ethos of adding economic value and opportunity in every country and society we operate in. These teams are doing great work, and I think we can position them even better for the future.
There is no doubt the world is changing — and Microsoft must evolve with it and ahead of it. Microsoft’s mission is universal, and I believe our values and high ethical standards are timeless. But we must apply them in a world that demands more solutions that are local in nature. Growing globally requires local capability to leverage all of Microsoft’s innovation, marketing and operations in the context of local opportunities and partnerships while overcoming constraints. This means we must do better at surfacing and trusting the insight from local teams on what it takes to drive our customers’ success. At the same time, we must empower the local teams with world-class global support.
When it comes to our Worldwide Commercial Business we have an unparalleled opportunity to translate our products into customer solutions, drive new partner momentum and help businesses of all sizes in every country not just use digital technologies but become digital companies themselves.
The senior leadership team and I all agree that each subsidiary needs to maintain the financial accountability to deliver on today’s commitments while gaining new capability and flexibility for local innovation and optimization to drive long-term growth. I’m thrilled to have two talented leaders, promoted from our field organization, step forward to join the senior leadership team with their depth of experience in our current business and shared passion to drive transformation.
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