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Vanity Fair has an article in its August issue that tells the story of how Microsoft “since 2000 . . . has fallen flat in every area it entered: e-books, music, search, social networking, etc., etc.” According to a summary available online, the article finds a devastatingly destructive management technique at the heart of Microsoft’s problems.

Author Kurt Eichenwald interviewed employees and found that

. . . a management system known as “stack ranking”—a program that forces every unit to declare a certain percentage of employees as top performers, good performers, average, and poor—effectively crippled Microsoft’s ability to innovate. “Every current and former Microsoft employee I interviewed—every one—cited stack ranking as the most destructive process inside of Microsoft, something that drove out untold numbers of employees,” Eichenwald writes. “If you were on a team of 10 people, you walked in the first day knowing that, no matter how good everyone was, 2 people were going to get a great review, 7 were going to get mediocre reviews, and 1 was going to get a terrible review,” says a former software developer. “It leads to employees focusing on competing with each other rather than competing with other companies.”

To read the full, original article click on this link: The Terrible Management Technique That Cost Microsoft Its Creativity - Forbes