Microsoft Corp. named Wal-Mart Stores Inc.’s Kevin Turner, once the retailer’s youngest-ever executive, as chief operating officer to free up Chief Executive Steve Ballmer to spend more time on products.
Turner, 40, becomes the second outsider Ballmer hired to a top executive post in the past five months. He named International Paper Co.’s Christopher Liddell as finance chief in April.
Kevin Turner brought Sam’s Club gross receipts closer to Costco by having everyone work longer hours and by cutting prices. Costs went up; profits declined; but, the gross sales numbers looked better. For a while.
Among Turner’s first priorities will be the release of Microsoft’s new Windows program and an updated version of its database software.
After Sam’s Club numbers got up to 6.5% monthly gain in 2004, they dropped back to half that rate in 2005. Enron-style accountants can make that look good. We know Bill Gates will go along with having everyone work longer hours; but, cut prices on Windows? Good luck!
Microsoft gets what it deserves. Anyone close to the WalMart ship knows that Kevin Turner, had more in common with Bernard Ebbers and Ken Lay than anything else, more off docket time (longer hours, no pay), and accounting tricks de jour. But, you are wrong on the low prices, as they were just shifted, it wasn’t really overall. Lower here, higher there. Big volume, low price. Low volume, higher prices. Same ole game.
Bottom line: Young maverick Exec only focused on the immediate bottom line numbers and not the overall big picture, plus quite rare among the WalMart set, in his willingness to bend ethical breeches. Hence watch out for accounting scandals to hit Microsoft, ideal timing too, as missed upgrade cycle potential. But of ALL the Executives out there, they could have picked, they had to choose this one?
Turner will be booted out in 3-5 years (maybe less), but get a great golden chute to glide him down. Historically that always happens, the big two get overwhemled and need a # 3, but then some crisis and No. 3 is out. But getting a Pepto Bismol exec for Marketing and a mass chain store guy for software? Carr was right, IT is a commodity. And Microsoft is a lack of strong goverance, corporate dictatorship. This is going to be fun to watch. I predict a future FULL of press juicy Microsoft scandals.
Interesting that M$ is bringing in another outsider, while suing someone who is trying to leave for Google.
What’s the point of staying, if there are less chances of moving up?
Reminds me of Nike bringing in Perez to replace Knight as CEO – leaving senior execs looking for a new career path.
I seem to be the only one who thinks Kevin Turner was hired to rein in Wal-Mart. Let’s face it; Wal-Mart is the ONLY major retailer selling retail/consumer Linux machines. Don’t you think that bothers MS a little bit?