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Microsoft's Ballmer talks up values, need for partnerships

November 12, 2002 12:00 PM ET

Computerworld - WASHINGTON -- Two weeks after a federal judge ruled in favor of Microsoft Corp. in its antitrust case, CEO Steve Ballmer came to Washington today with a New Age-like message stressing integrity, partnerships, the need to act responsibly and the values of company employees.
"If you get those basic things right -- people, values, working relationships -- then I think you've built a foundation for a truly great company," Ballmer said, speaking at The Brookings Institution, a Washington-based think tank. He repeatedly stressed the company's desire to comply with the settlement, saying Microsoft is "super-focused" on it.
This month, U.S. District Court Judge Colleen Kollar-Kotelly rejected most of the additional remedies sought by the nine nonsettling states in favor of a settlement reached last fall by the Bush administration and Microsoft (see story). The company last week said it would accept Kollar-Kotelly's decision, and formed a compliance committee called for in the settlement.

Microsoft Corp. CEO Steve Ballmer
Microsoft Corp. CEO Steve Ballmer
Microsoft continues to face private antitrust lawsuits and a pending action by the European Commission (see story). But if those cases are causing any worry for Microsoft, it wasn't evident in Ballmer's remarks, which were largely aimed at getting across the company's goal of doing the right thing.
Ballmer said Microsoft's new management approach, using leadership teams, emphasizes "a great deal of accountability" to its customers and works to ensure that basic values are met by each of its employees.
As part of corporate personnel reviews, managers discuss the company's "basic values" with employees, said Ballmer. "We found it incredibly important -- not just 'What did you accomplish?' [but also] 'How did you accomplish it and how will you accomplish it in the future?'"
Microsoft, said Ballmer, "is committed to being upfront about what we are doing, who it affects [and being] open and communicating about every aspect of our business. We're dedicated to being a responsible leader in our industry."
Microsoft has no choice but to change, said one antitrust expert.
"We will see a kinder, gentler Microsoft in the public arena," said Hillard Sterling, an attorney at Much Shelist Freed Denenberg Ament & Rubenstein PC in Chicago. "The eyes of the world remain on Microsoft. Its competitors will keep Microsoft under the microscope, and Microsoft can't avoid close scrutiny" from its competitors.
"Nevertheless, there lurks a savvy and smart monopolist under these covers," he said. "Microsoft knows how to talk about responsibility, yet competes aggressively."
Indeed, Ballmer said the company plans to spend $5 billion this year on research and development,


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