Microsoft and any other large corporation faces
challenges from outside competitors and from within when key personnel leave
the company. Microsoft has been hit with key personnel defections over the last
few years that have seen some of the most important managers and executives
The latest top executive
to leave Microsoft is Bob Muglia, who will continue to run the company’s
Server and Tools Business division until the summer. Microsoft will be looking
at current workers and outside Microsoft to find a replacement for Muglia, a
23-year Microsoft veteran.
CEO Steve Ballmer wrote in an email to Microsoft
employees, "This is simply recognition that all businesses go through
cycles and need new and different talent to manage through those cycles. Bob
has been a phenomenal partner throughout this process, and he and his leadership
team have the right strategy in place."
The Seattle Times reports
that Muglia stepping down was a surprise to some observers. The division that
Muglia runs is doing well and has grown continually into a $14.9 billion/year business
and in 2010 the division generated $5.5 billion in operating profit.
Muglia sent an email to his employees stating,
"The foundation of who I am is based on living with integrity. Integrity
requires principles, and my primary principle is to focus on doing the right
thing, as best I can. The best thing, to the best of my ability, for our
customers, our products, our shareholders, and of course, our people.”
Muglia is the most recent high profile Microsoft
Elop left Microsoft to become the CEO of Nokia last September. Chris Liddell
left his spot as CFO in 2009, and Ray Ozzie left in October and wasn't
Rob Horwitz of Directions on Microsoft said, "It [Muglia leaving] did
surprise me. He really did grow the third child — the first is, of course,
Windows, and Office is the second child. This is one of the three really
successful moneymaking businesses growing in low double digits every single
year against some stiff competition like Oracle."