[Matt_Cutts]

I remember when pg first wrote this. A lot of people misunderstood the headline. From the pg's Cliffs notes: "What I meant was not that Microsoft is suddenly going to stop making money, but that people at the leading edge of the software business no longer have to think about them." That's at http://paulgraham.com/cliffsnotes.html

So the two definitions pg gave in 2007 were "You don't have have to be afraid of Microsoft" and the definition above.

[jdp23]

When this came out I was still at Microsoft with a charter of "game changing strategies". There were (and still are) quite a few things that MS could do to reinvigorate itself, but the corporate culture keeps them from gathering momentum: the company's success came in a PC-oriented world, so they don't think from a phone, device, or web perspective; and the lack of understanding of win/win dynamics (which Google rode to success) means they're not able to leverage their huge assets. Since then, the ongoing loss of great people has deepened a huge generational hole. So yeah, this essay has held up real well.

[kenjackson]

Jon, as someone from MS (and with great repute), I'd be curious to get your take on something I've heard from ex and current MS employees I talk to regularly.

One issue that seems to come up a fair bit (often not directly) is that MS has a hypercritical culture, where there's always a reason NOT do something. Since they had big money makers in Office and Windows, no one really noticed for a long time..

I hear constant grumbling that people with ideas get their ideas shot down with lots of criticism. Many of these people say that MS would have killed the iPhone, iPad, and Wii had they been proposed at MS in final form.

It sounds like a company made of bright people who have no problem finding issues with products, but less good at fighting for new innovation against these same critics.

[jdp23]

Very true -- in fact Microsoft's values include being self-critical, but not being self-aware. Also, it's a very competitive culture, and the easiest way to show you're smarter/better/more powerful than somebody else is to attack them. The net result is that it's an incredibly negative culture, and it really affects people both on the professional and personal side.

[ardit33]

Seems to be a Seattle thing. I feel Amazon has a similar culture too.

Or perhaps it is just a big company problem. When the two ways to get ahead is: 1. Do something and brag as much as you can about it (shameless self promotion) 2. Criticize everything about everybody around you, even for the most minute details (make your self look good, by putting down everybody else ideas or way to do things).

Not helpful behavior, all disguised in the name of the company's 'good' of course.

[enjalot]

there are two ways to build the tallest building; build it higher, or destroy the buildings around you

[Aaronontheweb]

I haven't worked for Microsoft for long, but I don't find this to be true. My team is very cooperative and positive.

[Todd]

Certainly there are some groups that are more negative than others. You may not have been exposed to it yet, but politics there can be terrible. Either politics between groups (often working on similar/competitive technology) or within groups, where people jockey for stack rank. MS "grades on a curve" so there's always a winner and loser, regardless of how great your team is. This sets up a very bad intra-team dynamic and it's been one of my principle complaints about MS since I left over 10 years ago.

[alexqgb]

Why should innovative engineers who cost a lot to hire have to fight so hard in the first place? If out-of-control critics are creating an innovation-hostile environment, shouldn't their aggressive suppression be a basic problem for management? Something like cleaning the toilets and taking out the trash; constant chores that turn into genuine health-hazards if ignored, but easily handled when reduced to systematic housekeeping.

I'm also wondering how many of the accurate "it'll never work" calls are based on internal realities? As in "this awesome tablet won't fly because there's no way the Windows 7 people are going to allow us to create our own dedicated OS."

Also, about the criticism - what form does it take? Does it sound like people saying "Due to my lack of imagination and generally fearful demeanor, I say it can't be done for this BS reason"? Or does it carry the more savvy and well-informed tone of "Doing that at Microsoft will get you killed, and here's where you'll find the bodies to prove it"?

[oiuyuikuhygt]

It's because in large companies you don't get promoted (and so more money, escape the next redundancy axe) by producing good stuff but by being ranked higher than everyone else on your grade.

So you do this by pointing out to your manager all the good things you have done and shooting down anything anyone else does - since everybody knows this and everybody does it you have a catastrophic situation.

Ultimately the only solution if to have them crash their cars into each on the way to work to decide who gets the corner office (gratuitous Richard Morgan link)

[Lewisham]

Isn't this why the stuff out of the Entertainment & Devices division is doing so well? My understanding is that E&D are not as strongly shackled to corporate culture and runs as a semi-autonomous unit making its own decisions, albeit with a healthy cash flow. This is why Xbox has done so well, and Windows Phone 7, for all its critics, is really the epitome of something Microsoft simply couldn't have designed when this article was written. I mean, WP7 actually has a design. You can like it or not like it, but you can't claim it to be a copycat or not show any aesthetic talent at all.

Bing is run the same way, is it not?

It seems that Microsoft might finally be learning that if it acts as a loosely coupled set of components rather than a monolith with everyone getting veto on everyone else, things work a lot better (and presumably cheaper too). They have all the talent, they just kill it with middle-management (see: Kin).

[jdp23]

Yes, when XBox started out they very intentionally decoupled it from the rest of corporate culture. I'm out of touch with the more recent reorganizations so not sure about where Bing and WP7 are these days, but agree that they're showing positive signs as well.

[RickRoll]

It was an extremely efficient monolith, while Bill Gates was managing everything. But than he concentrated on the Sun anti-monopoly suit and MS become a regular stupid corp.

[Matt_Cutts]

I feel like I should add that I have a very healthy respect for Microsoft and their continuing influence/power. It's unwise to underestimate Microsoft.

[jdp23]

agreed. tens of thousands of committed, passionate, and persistent people -- along with multiple billion-dollar businesses that have held up longer than expected -- mean that they'll continue to be a force to be reckoned with.

that said, Paul was completely right: it's been a long time since they've inspired fear.