During its lifecycle, any company faces a time when it becomes necessary to introduce changes and even perform extensive reorganizations. The way these changes proceed mostly depends on the strategies chosen by the management and their correct understanding by the employees. Their outcome broadly defines the company’s future and its prospects. Among the numerous examples or reorganizations, the one of Microsoft is a success story that deserves particular consideration.
In the early 2010s, Microsoft faced several issues, significantly affecting its efficiency and requiring a search for new solutions. Microsoft’s revenue mostly depended on traditional products, and it was falling behind in the development of innovative technologies. The existing management structures led to many redundant functions, counterproductive internal competition, and lack of cooperation. The first move during the company reorganization declared in 2013 was the introduction of a new strategic vision based on the belief in the future of cloud-based product solutions and subscriptions. Then, it was supplemented by the organizational changes designed to create a collaborative approach. The autonomously operating departments were replaced with cross-functional teams working on the projects assigned to them. Such changes did not go entirely smoothly as they required firing a substantial number of employees, but their overall influence was quite favorable. Finally, the company changed its attitude to many of its competitors, attempting to view them as partners and build mutually beneficial relationships.
The thoroughly planned and correctly implemented transformations allowed Microsoft to go through the time of change without any major disruptions. The fact that this reorganization significantly improved the work environment inside the company led to its extensive support from most employees. Finally, correct product placement and new partnerships raised the company profits and improved its market share. Therefore, Microsoft is a perfect example of a company successfully weathering the storm of changes, making it fully capable of becoming one of the industrial leaders in the 21st century.