"The 12 Simple Secrets of Microsoft Management"
By Matt Richey (TMF Verve)
ALEXANDRIA, VA (Dec. 20, 1999) -- Recently, a friend of mine told me that all you need to know about Microsoft (Nasdaq: MSFT) is that they have $19 billion in liquid cash and another $15 billion in strategic investments. He has a point. And a lot of times in this space, we look at quantitative evidence, especially in the financial statements, to verify whether a company is making the rules in its industry.
But cash hoards, gross margins, and flow ratios are really just the end result of business excellence on a more qualitative level -- attributes such as a well-planned strategy, good managerial skills, and a productive workplace. The only problem with studying these qualitative factors is that they're difficult to ascertain without insider knowledge. One alternative way of obtaining this type of insight, however, is through some of the well-written books about Rule Makers.
Today, let's take a peek inside the Microsoft corporate campus through the eyes of David Thielen, author of The 12 Simple Secrets of Microsoft Management.
The book, published this year, explains in plain language (and just 175 pages) Microsoft's management style and corporate culture. Although the book is written primarily for business managers seeking to emulate Microsoft's success, I think we as investors can learn a lot of useful info. The author, Mr. Thielen, worked at Microsoft as a senior software developer on Windows 95 and several other projects. In his words, "Microsoft's management style is its core strength," and "Microsoft's management strength is why it will continue to dominate."
Here goes with a few of the main ideas on each of Microsoft's 12 secrets:
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