Microsoft has lost its mojo: An open letter to Bill Gates

Dear Bill, 

I know you've been retired from Microsoft's day-to-day operations for about a year now and Steve B. is running the show, but you are still Chairman of the Board and the public identity of Microsoft. That's why I'm writing you, Bill, because Microsoft is still your company and it needs you. Think modified Pottery Barn rule: you own it, you broke it, you fix it.

Microsoft may be the largest and most dominant computer software company on Earth, but, at this point in the evolution of the company and the industry, such a description may be less an accolade than a cautionary tale. Yes, your operating system, productivity software, and browser dominate market share, but recent data indicate that your market share over all is eroding. Yes, Microsoft wields almost oligarchical power over the entire computer industry. And, yes, Microsoft generates billions of dollars in revenue every year and it has made you one very rich dude.

But the way I see, Microsoft is looking a little long in the tooth lately. The Apple ads where Microsoft and Apple are personified say it all. Apple is young, hip, funny, and fit. Microsoft is middle aged, geeky, boring, and out of shape (no offense to John Hodgman, the actor who portrays Microsoft). As for those laptop hunter ads, it's like dressing a geek in hipster clothing; still a geek underneath. And Apple thoroughly schooled you with its mocking response.

So, it's time to face reality, Bill. Microsoft has lost its mojo. Don't get me wrong; I'm not one of those Apple fanboys who's here to smack down your company. I use Microsoft at home and on the road. I respect what Microsoft has accomplished, that's why I'm writing you this letter. Microsoft needs to get back on track and you're the only man who can do the job.

One of my fellow bloggers at Computerworld, Preston Gralla, sees things a little differently, arguing that Microsoft is actually getting its mojo back. He cites the upcoming release of Windows 7, the well-regarded beta of a new version of Office, and the recent release of Bing.

But I don't buy it, Bill, and neither do most of the commenters in Preston's post. Let's be honest, Microsoft hasn't been putting out the latest and greatest software these days. Did someone say Vista? Or Windows Live Search? These are barely mediocre products. They lack two things Microsoft had in spades in your younger days: vision and innovation. I can't believe you signed off on them. Yes, Windows 7 is an improvement, but the breath you're hearing is not the panting of anticipation over a groundbreaking OS, but rather an exhale of relief over being able to say goodbye to Vista. As for Bing, it's perfectly functional, but offers little that will lure people from the familiarity of Google. Microsoft's products are now pure corporate, no heart and soul. Microsoft can get away with it these days because it pretty much owns the computing world.

The first question to ask is: Why did Microsoft lose its mojo? I think there are a few very good reasons.

First, it became a behemoth and, though large and powerful, behemoths aren't very agile or adaptable (think Ice Age). Though I don't have any data to support this, I'm going to guess that there is an inverse relationship between size and creativity and, if so, Microsoft is a victim of its own success.

Second, Microsoft lost its hunger, its edge. Microsoft just doesn't need it that bad anymore. It's gotten too comfortable up there in the Great Northwest and comfort breeds complacency which gives rise to stagnation.

Third, Microsoft hasn't had anyone pushing it for a long time. Microsoft just has no competition. It needs a Nadal to your Federer, a Mickelson to your Tiger. But who has Microsoft got for competition? Apple? Sure, Apple is pesky and Jobs gets all the headlines, but Apple is more glitter than guts and your housekeeper probably makes more than Jobs does. And Google is just a baby and will likely have its own growing pains.

Fourth, there is the inevitable brain drain. Over the last few years there has been a steady exodus out of Microsoft as many of its top minds have moved on to greener pastures, such as Google. For creative minds, improving on the wheel just doesn't satisfy the soul. Hungry minds nourish themselves on urgency and excitement and the sweet taste of new ideas.

But the  past is past and the question for the future is: How does Microsoft get its mojo back? Though there is much that can be done structurally within Microsoft, I think it all has to start with leadership. No offense to Steve, he seems like a perfectly competent fellow (though some disagree), but Microsoft needs a spiritual leader again who can take it into the future by reconnecting with its past. Think about how you felt when you were that young Harvard dropout living at home and your parents were asking what kind of future you can possibly have without a college degree. What drove you back then? Money and power? I don't think so. I'm going to go out on a limb and toss out words like passion, purpose, and ideas. I'll bet you couldn't sleep nights and couldn't wait to get up in the morning to create cool computer stuff. And, if recent products are any indication, that's what's missing around Redmond these days.

Even though you've officially stepped aside as the head of Microsoft, you still are its de facto leader. It's time for you to accept the inevitable and return to the throne and lead Microsoft back to the promised land.

If you'd like to talk further, why don't you call for an appointment.

Until then, Bill, time for some soul searching.

Respectfully,

Jim Taylor, Ph.D.