To learn more or opt-out, read our Cookie Policy. Microsoft is killing off its controversial stack-ranking system today. For years Microsoft has used a technique, stack ranking, that effectively encourages workers to compete against each other rather than a collaborative Microsoft that CEO Steve Ballmer is trying to push ahead of his retirement. Stack ranking is a process where each business unit's management team has to review employees' performance and rank a certain percentage of them as top performers, or as average or poorly performing.
Former Microsoft employees have claimed it leads to colleagues competing with each other, especially when some employees in a group of individuals need to be given poor reviews to match the method. Eichenwald interviewed a number of current and former Microsoft employees who all cited stack ranking as the most destructive process inside the software giant.
According to an internal memo sent to Microsoft staff today, the process is being axed. Microsoft is planning to focus on teamwork and collaboration, alongside an emphasis on employee growth and development. A lack of ratings should help there too. Ultimately, the changes could help attract talent to the software giant as it looks to move beyond its Windows roots. Here's the full memo from Brummel:.
I am pleased to announce that we are changing our performance review program to better align with the goals of our One Microsoft strategy. The changes we are making are important and necessary as we work to deliver innovation and value to customers through more connected engagement across the company.
This is a fundamentally new approach to performance and development designed to promote new levels of teamwork and agility for breakthrough business impact. We have taken feedback from thousands of employees over the past few years, we have reviewed numerous external programs and practices, and have sought to determine the best way to make sure our feedback mechanisms support our company goals and objectives. By signing up, you agree to receive the selected newsletter s which you may unsubscribe from at any time.
You also agree to the Terms of Use and acknowledge the data collection and usage practices outlined in our Privacy Policy. What are you looking for? Preferences Community Newsletters Log Out. Written by Mary Jo Foley , Contributor. Full Bio. Here's a copy of Brummel's mail to the troops: To Global Employees, I am pleased to announce that we are changing our performance review program to better align with the goals of our One Microsoft strategy. There is nothing we cannot accomplish when we work together as One Microsoft.
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