Why aren't you firing more people? asked Microsoft CEO Steve Ballmer of British managers during the
Institute of Director's conference yesterday, the London Times reports. After all,
he himself makes a policy to dismiss 6.5% of his employees every year. And when in doubt? Fire twice as
many.It's not whether they're doing a good job, he says: it's all about whether you can find better people.
Critics are naturally saying that this strategy will create a "culture of fear." And, bizarrely, his comments came immediately after Cadbury Schweppes CEO Todd Stitzer was bemoaning a "serious image problem" in which businesses were seen as heartless capitalists. Not as heartless as U.S. business I suppose!
I just hope Ballmer doesn't apply this strategy to his marriage. "Sorry, Mrs. Balmer! It's not that you're a bad wife. It's just... the lady I met in tango class is so much better."
[Photo Microsoft]











Reader Comments (Page 1 of 2)
4-28-2006 @ 9:28PM
Guillermo said...
Well, I'd rather get fired than get a chair thrown at me, that's for sure.
4-28-2006 @ 11:36PM
Ron Pogue said...
Yo Stevie - Each person has their own world view and way of approaching tech. issues.
I submit the idea that a person who may appear 'slow' to some business types, may , in fact understand the issues better than the 'think on their feet' types. So, the final evaluation of the dumbest 6.5% should be very carefully done.
Does the candidate have an active mind? Does the candidate really understand the goals of Microsoft? Many folks are intimidated by an interview with someone who controls their future. Don't let bad communication be mistaken for a slug-like mentality.
Do not throw away a diamond in the rough!
4-29-2006 @ 7:36AM
Willem said...
Although you would like everyone to work out in business, that's just not reality. There will always be a (small) percentage of underperformers and the smart move is to give them a chance and a plan, but if that doesn't work out, you give their job to someone else who may be able to do it better. That's life.
4-29-2006 @ 8:11AM
Jay Peaha said...
Steve Ballmer's comments represent at least part of the problem with many industries in this country and particulalrly IT. Why manage or more importantly "lead" when all you need to do is read numbers. Its a numbers game instead of doing right by the company, the employees,and the society in which he operates. Out the door with his management by quotas goes loyalty, his need to be even a half ass manager(fire 'em - what the hell) and the depth that a company like microsoft so desperately needs. It appears the stock numbers and incessant lawsuits tell the real story of his "style". What a chump.
4-29-2006 @ 11:00AM
Chris Lockhart said...
Interesting that Steve gets hammered for saying that he wants the best for his stockholders...the best employees will bring the greatest gains. Yet, I have not seen a single comment about workers who are willing to jump ship for any number of reasons, or worse, join a union. How is that any less "heartless"? It is certainly a main issue in IT...no wonder staffing firms are doing so much busines with the Fortune 1000? What Ballmer is really saying is that the workers are accountable and he is going to be sure their work is measured.
4-29-2006 @ 11:35AM
Bob said...
The problem with "managers" like him, is that they are equating the measurement of assembly line work with the work of a talented, creative, thinking person. With his type of mentality, you can forget about Microsoft getting things right for once and any type of innovative thought process by creative people. I was thinking of buying their stock, but now I won't. He's going to cause a brain drain.
4-29-2006 @ 1:14PM
Joseph E. Catanzarite said...
Dear Steve
Fire the brightest and you'll get twice the productivity out of the remaining. Though I can't imagine a really bright person staying very long they usually find their own way. Be careful arrogance is a disease.
4-29-2006 @ 4:54PM
JOHN said...
STEVE LEAD BY EXAMPLE MAYBE YOU SHOULD GET FIRED
4-30-2006 @ 12:23AM
mike said...
Well if thats the case Steve, YOUR FIRED! Imagine what a better CEO can do for Microsoft on wall street!
4-30-2006 @ 2:17AM
Steve Wheaton said...
Management by Coercion is the quentessential American style of management. Do it or you are fired. Employee loyalty? Who cares? Employees job hop all the time.
Employee loyalty is something that management has to EARN. Since this is beyond the capability of most MBAs, it isn't important. Yet they can't understand why employees steal. That can't comprehend how the competition gets their trade secrets, new ideas, and technology.
Hey! Let's outsource all our jobs to India and China. Let's hire illegal aliens to do the jobs we can't outsource. By the time foreign governments get around to seizing our assets and nationalizing our company, I'll be long gone with my golden parachute. Wiping out widow's life savings? Plunging stock values? Worthless pension plans? Cancelled health insurance? Who cares? I've got mine. Let the employees and stockholders eat cake.
Fired employees coming back to shoot up the office and their co-workers. Not my problem. What are the chances? Too bad. So sad.
I've got news for you Enron types: a day of reckoning is coming.
4-30-2006 @ 10:47AM
MC said...
Using Mr. Ballmer's model it is time for Mr. Gates to fire him. After all there are hundreds of more qualified candidates awaiting to take Microsoft to the next level.
Mr. Gates do you like the idea?
4-30-2006 @ 6:31PM
Mike Christensen said...
As a small business owner myself, I think it may not be a bad idea to fire the lowest performing of the work force every year. 6.5% sounds low to me though. It is just too hard in the interviewing process to recruit 93.5% winners. Maybe closer to 20% would get the slackers' attention.
5-02-2006 @ 10:10AM
Teri Hanright said...
Firing the lowest performers every year may seem like a good strategy, but a company that is widely known to have such a strategy will not be able to attract ANY help, good or bad. That sort of policy will also take the employees' attention off their job, and have them devoting their energy to always having a backup plan just in case.
Even a top performer may have low self esteem, so why take his attention off his job.
Wake up America! Job loss to other countries is already gutting high tech. This policy will insure that all we have left are McJobs.
5-16-2006 @ 7:59AM
Rothgd said...
Steve needed to remember life before he did not need a job. Leaders who do not need to work, because they are worth millions and more , really are not too smart themselves, back when he was coming up, the lack of head hair could have put him on the "fire" list. besides, if I had millions/billions I would do something like his boss is doing. Untill you (personnaly) have had a bad year, and survived, you probably are not a "real" player...Steve you are good, but you will never be Bill....
5-18-2006 @ 1:48PM
Chris Jubok said...
Heck Steve you are one great manager with your philosphy, but your results show that it does not work. Microsoft stock has done nothing now for a few years, I think Bill Gates needs to embrace your philosophy, Bye
5-24-2006 @ 11:46AM
Samuel Gordon said...
Steve Ballmer blithely assumes he is the best possible person to fill his position. The company's performance indicates that he may be incorrect. Either he should step aside or be fired. He can always buy a professional sports franchise, a small to medium-sized country, or something.
5-25-2006 @ 4:37AM
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6-07-2006 @ 11:34AM
Harald said...
It's an interesting idea, but I can't help but feel that there is something wrong with the idea.
There used to be a time when we had businesses whose "raison d'etre" was to produce a particular product and to do it well. No more. Now, the idea of a company is to produce maximum profit regardless of what it takes to produce that profit.
If it's cheaper to move production to another country, we do that. And, if it's cheaper just to have a second company produce the product and stick the first company's name on that, we do that.
We reduce the payroll to save money in bad economic times, then increase the salaries and the bonuses on the executives who got the company in bad economic straits in the first place. Never mind that the company was built on the sweat and toil of the workers in the first place. Only management who spends their day with golf games and corporate perks must be considered.
6-08-2006 @ 3:18AM
kent goar said...
I am sorry for your sight on a good work force. But fear on the job will not bring your company to success. Good luck on that mind set and also thanks for the tip of not investing in MFST.
6-08-2006 @ 11:10AM
Bill said...
Ballmers strategy is typical of the approach microsoft has taken since it's beginnings. Look at the number of security updates to Windows that have been hastily added after some third party makes the discovery and announcement. Can't afford to manage your own product research ? This is an indication of astute management policy if ever there was one. Management by spreadsheets has proven in my own experience to be lacking vision and I will say for the record ability to cope with the human aspect of management. Nuture talent if the substance is there Steve. Perhaps you should spend a few months living in a homeless shelter, it may diminish that pompus attitute son. What cash reserves is MS sitting on ? Lets just fire em for the sake of churn,toss the dice and see if we have a better end result eh ? That provides remarkable insight into the heart of the man at the helm of one of the least trustworthy organizations that I am aware of outside of organized crime. Come to think of it they have both used exactly the same strongarm approach to enrich themselves. You don't suppose Steve has modeled himself after the Dons ? Working under him must be one wonderful experience indeed. Being fired would be a blessing in disguise.