As I read about Microsoft's (MSFT) highest first quarter profits in 6 years (see Bloomberg or Yahoo), I thought that somewhere at the software giant there are product managers starting to look for new jobs. Since Vista came out this year, it has been a real shot in the arm for
Microsoft. Recent sales of Halo3 have also been a big boon to the company and specifically to the XBox division. Is this it for the next 5 years for Microsoft? No, they will now rollout new server versions, SQL editions, and office upgrades. This new platform provides a whole new opportunity for other product managers all over the company. The one area that may suffer is the OS group. After the business server versions rollout, and they will be fewer than in previous years thanks to the increasing presence of Linux as a platform for many basic functions, the OS group has a big problem. What do they do for the next 5 years....
Part of the problem is that as a public company Microsoft has investors that make their money on quarterly changes. As a company, Microsoft can spread the earnings across divisions and they will probably do very well. How does a small company, that has a big hit, spread out the change? How does a company that relies on the Christmas rush handle the rest of the year?
I think that expectations have to be clear and fear has to be reduced so that people do not act in a state of fear. People are more productive when they are trying to achieve something not avoid punishment. Every business has trends, seasons, or expected customer behaviors. All measurements should take these into account. It's not that you want to hear excuses, but you do want explanations. Consider rewards to give to those that overcome downtrends. The person who sells in an expanding market has not done as much as one that increases sales in a shrinking or down market.
How do you handle the defeatist attitude?
Is fear a good motivator?
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