How can a Microsoft reorganization impact your organization?
How can a Microsoft reorganization impact your organization change is common in many organizations, but Microsoft has a reputation for organizations that are most often reorganized. This giant software was founded in 1975 and is a young company that complies with some standards, but has grown to about 100,000 employees over the last 40 years. This growth has often been the cause of reorgs, but evolving business models and technology changes often play an important role. It is worth noting that Microsoft was the first technology company of their kind and did not benefit from similar organizations they could imitate. Another factor to consider is that the company started out as a software company exclusively and its employees were either technical or administrative. As the company grew, many senior employees were promoted to managerial positions regardless of their ability to manage. As the company began to mature, we made a conscious effort to recruit people with management, organization and operational skills. Because of this, there were many organizational changes within the company, but there were no other software companies to emulate, so they often implemented the changes for later modification or fine-tuning.
Frequent reorganizations can be very confusing to employees. Organizational changes are often the result of changes in business needs, but sometimes they are created in response to new technology or market opportunities. Frequent reorgs can be very damaging to employees. Organizational change is often the result of changes in business needs, but sometimes in response to new technology or market opportunities, such as emphasis on sales services in addition to cloud computing or products. Regardless of the reason for reorganization, employees are confused by potential changes. In some cases, the measurement and compensation targets will change after the results are changed, or they will be reported to other management. This management tool can have a different priority than before. If there is an expectation for dismissal or removal of a particular role, Reorg can cause even more confusion. Some employees simply slow down or stop production while waiting for what happens and how it will be affected.Unfortunately, this confusion is not just for Microsoft employees. Customers, channel partners, vendors, and other third parties are often affected if their contacts within Microsoft are slow or unresponsive.
After reorg, Microsoft’s strategy or goals may have changed and these changes may affect customers or other third parties. The impact can be as simple as having a new contact that is relatively simple within Microsoft, but at least you need to learn about your customers and build new relationships. Of course, the changes may be positive, especially if the customer or a third party has not had the best relationship with their predecessor.
Organizational changes are not entirely changes to employees and organizational charts.
They often involve policy changes or new strategic initiatives. For example, suppose a customer is undergoing an enterprise contract (EA) renewal process and plans to purchase or renew additional licenses for the data center. After reorg, Microsoft chose to complement its successful sales force primarily by moving its customers to the cloud and was reluctant to discount or negotiate perpetual licenses. This is unlikely for customers to give up the data center and change the entire IT infrastructure and transition to the cloud, but the impact on costs can be significant.
Microsoft’s July, 2017 sales team reorganization created two sales organizations. One will focus on the enterprise customer, and the other will focus on all the other customers. The latter includes small business (SMC) customers. The Enterprise team is organized in six areas: Education, Financial Services, Government, Healthcare, Manufacturing and Retail.
The new SMC model will increase reliance on channel partners to sell and service SMC customers. As relationships with customers and sales opportunities deepen, they can help partners, but customers may not lose their direct relationship with Microsoft in the past. Enterprise customers are committed to increasing technology pre-sales and support, especially with the transition to cloud and security services. This was a common request from many customers, but there is no doubt that the burden of purchasing SPE E5 and Azure licenses will be greater.
In addition to organizational changes, Microsoft claims to shift from an existing strategy for selling a product to a multi-product solution and a digital conversion. As part of this effort, we have created the “Digital Win Room”, which deals exclusively with many opportunities around the world. It’s too early to decide exactly what the digital conversion or multi-product sales strategy will entail, but most organizations will be under pressure to move customers to product bundles and the cloud, which may include components that may not be purchased One.