Steve Ballmer’s slow exit as Microsoft CEO, announced last week, was either a surprise, or it wasn’t. Long-planned, or hastily arranged. Came at the “right time” or was long overdue. As always, it depends on the source. Tech’s original mega-gorilla, once disruptive but now doddering, did its best to give him a nice sendoff, while practically every other observer fell on the corpse to stick knives in for his decidedly mixed tenure.
Give Microsoft credit: Ballmer’s 13-year term at the helm, which will end sometime in the next 12 months, saw annualized profit grow 16 percent, but also a $600 billion market cap cut by more than half. The post-mortems dredged up other big misses – the Surface tablet PC, Windows Vista, and the Windows phone. Small wonder the company stock enjoyed a seven percent bounce on the day of the announcement.
Despite the rehash, Microsoft came away looking good. The company has been under fire for some time for having no clear transition plan. Now it does, announced in fairly orderly fashion. Transition management isn’t easy under the best of circumstances, and certainly Microsoft’s were far from that. The company needed to make a decisive but not too sudden move, and succeeded.
THE PR VERDICT: “B” (Good Show) for Microsoft, for sticking to a classic PR script that minimizes blowback and cements its key messages.
THE PR TAKEAWAY: Big news, even if double-edged, has its advantages. When breaking it, remember that you control the story and can pick your timing. The Ballmer announcement came on a Friday in late August, about the sleepiest time of the year, and in standalone form: It won’t be directly linked to Microsoft’s last sorry earnings announcement in July, which featured a $900 million product writedown. Nor will it distract much from its next product release, Windows 8.1, in October. The company made Ballmer available for one interview, and that will be the reference going forward. Finally, it left the exact timing of his departure vague, concealing behind an opaque corporate façade the likely fact that he is already gone.