Sample Answer
Microsoft and horizontal reengineering processes
Microsoft has periodically reengineered core processes such as product development, software testing, cloud service delivery, and cross-functional collaboration. Historically, Microsoft worked in strong product-based silos, for example Windows, Office, and later Azure. As competition increased and development cycles needed to become faster, Microsoft shifted toward more horizontal, process-driven structures. This reengineering focused on integrating engineering, design, and customer feedback processes across teams to reduce duplication, improve speed to market, and encourage innovation. The stated reasons included improving responsiveness to customer needs, breaking down internal barriers, and supporting agile development in a fast-changing technology environment.
Centralised versus decentralised control issues at Microsoft
Microsoft’s case highlights ongoing tension between centralised strategic control and decentralised operational decision-making. While senior leadership maintains centralised control over company-wide vision, standards, and major investments, individual teams are given greater autonomy in product development and process execution. Issues arise when decentralised teams pursue local optimisation that may conflict with broader corporate goals, such as platform integration or data consistency. However, excessive centralisation can slow decision-making and restrict innovation. Microsoft’s challenge has been balancing control with flexibility, ensuring coordination across teams without recreating rigid vertical hierarchies.
