1Microsoft Confidential

Values and Performance through Human Resources

RH TribuneStockholmMay 30, 2008

2Microsoft Confidential

One HR Framework to support One HR Framework to support Performance at MicrosoftPerformance at Microsoft

myMicrosoftmyMicrosoft

Reward Reward OpportunityOpportunity

Career Career DevelopmenDevelopmen

tt Management Management ExcellenceExcellence

Enhanced Enhanced WorkplaceWorkplacePerformance Performance

ManagementManagement

3Microsoft Confidential

Commitments at the hearth out Commitments at the hearth out of myMicrosoft of myMicrosoft

Pay for Performance

January - March

1:1 MeetingsRealign

Commitments as necessary

1:1 MeetingsRealign

Commitments as necessary

Mid Year Career Discussion

Mid Year Career Discussion

FeedbackFeedback

FeedbackFeedback

FeedbackFeedback

FeedbackFeedback

OngoingOngoing

July/August

1:1 MeetingsRealign

Commitments as necessary

1:1 MeetingsRealign

Commitments as necessary

Performance ReviewPerformance Review Commitment Setting Commitment Setting

Ongoing focus on performance all year

4Microsoft Confidential

Commitments – Alignment & Cascade Commitments – Alignment & Cascade downdown

Area VP ready by May 9

Country General Managers by June 1

Directors and Managers by june 30

Individual Contributors by August 1

Commitment alignment links management accountability for results and the individual

employee’s responsibility of making sure those results get delivered

August 1

5Microsoft Confidential

The Microsoft Scorecard drives The Microsoft Scorecard drives the content of the the content of the CommitmentsCommitments

6Microsoft Confidential

http://Performance – landing – landing page employeepage employee

7Microsoft Confidential

http://Performance - - commitmentscommitments

8Microsoft Confidential

http://performance – landing – landing page managerpage manager

9Microsoft Confidential

Commitment RatingsCommitment Ratings

ExceededExceeded

AchievedAchieved

UnderperformedUnderperformed

3-point rating scale

Employee performance Employee performance evaluated relative to evaluated relative to commitments (corp. guidelines: commitments (corp. guidelines: no “curve”)no “curve”)

Informs merit and bonus awardsInforms merit and bonus awards

Commitment rating Commitment rating communicated to employee communicated to employee during review discussion (period during review discussion (period last week of July – September last week of July – September 15)15)

10Microsoft Confidential

Trust !!!! Trust !!!!

11Microsoft Confidential

Old Game Versus New GameOld Game Versus New Game

RelationshipsEducation

School

Church

Politics

Customers

Religion

HW

SW

Developmentalconsciousness

Time

Focus on structures Focus on individuals

Insecurity

Software

Hardware

12Microsoft Confidential

Being Respectful of others …Being Respectful of others …

Respect for each other time and agendaRespect for each other time and agenda

Open agenda visible to all employeesOpen agenda visible to all employees

Respectful of needs of departementRespectful of needs of departementAttendance in office when neededAttendance in office when needed

Respectful of each other’s virtual presenceRespectful of each other’s virtual presence

Alone is NOT IsolatedAlone is NOT Isolated

13Microsoft Confidential

Enhanced WorkplaceEnhanced Workplace

“A workplace directed at implementing

the new world of work vision”

Transparant to each other. Output counts over input. Following the shift from a place

to an activity

Following the power shifts to the individual

14Microsoft Confidential

So what does that mean ? So what does that mean ?

People work at Microsoft People work at Microsoft

WhereWhere they want they want

WhenWhen they want. They determine they want. They determine the the availabilityavailability and the and the willignesswilligness to to communicate communicate

CollaborationCollaboration remains key! remains key!

15Microsoft Confidential

ONE WORD TO MAKE IT HAPPEN ONE WORD TO MAKE IT HAPPEN

Unified CommunicationsUnified Communications

16Microsoft Confidential

Unified CommunicationsUnified CommunicationsInnovative communications with revolutionary economics

17Microsoft Confidential

18Microsoft Confidential

I’m not working or I’m too busy to

receive your communication

I’m working but I’m out of the office

please call me on my mobile

I’m working and am happy to receive your

communication

Presence gives the “green light” to interact

18

Don’t disturb,I’m either

concentrating or doing personal

stuff

19Microsoft Confidential

Presence connects communications modes with people

Presence follows users (identity) – not devices

20Microsoft Confidential

Name 1Name 1 Name 2Name 2 Name 3Name 3 Name 4Name 4 Name 5Name 5 Name 6Name 6Name 7Name 7Name 8Name 8

Simple “1-click” toSimple “1-click” to

start a communication

start a communication

Upgrade to voiceUpgrade to voice

Upgrade to videoUpgrade to video

Simple ”1-click”Simple ”1-click”to start a conferenceto start a conference

Simple “1-Click”

Simple “1-Click”to dial”to dial”

Provide contextProvide context

Seamless ‘upgrading’ Seamless ‘upgrading’ from 2-party (Peer-Peer)from 2-party (Peer-Peer) voice(or video, web) call voice(or video, web) call to Multi-Party conferenceto Multi-Party conference

20

21Microsoft Confidential

Being Respectful and Unified Being Respectful and Unified Communication – is that Communication – is that possible ? possible ?

ApproachableApproachable

ConstructiveConstructive

ConsiderateConsiderate

22Microsoft Confidential

AT MICROSOFT WE GO FOR AT MICROSOFT WE GO FOR RESULTSRESULTS – – ACCOUNTABILITYACCOUNTABILITY IN AN ENVIRONMENT WITH IN AN ENVIRONMENT WITH RESPECT FOR THE RESPECT FOR THE INDIVIDUALINDIVIDUAL – – OPEN & OPEN & RESPECTFULRESPECTFUL

1:1 MeetingsRealign

Commitments as necessary

1:1 MeetingsRealign

Commitments as necessary

Mid Year Career Discussion

Mid Year Career Discussion

1:1 MeetingsRealign

Commitments as necessary

1:1 MeetingsRealign

Commitments as necessary

Performance ReviewPerformance Review

Commitment Setting Commitment Setting