Ballmer's Microsoft

BusinessWeek | at | by Mike

Gates no longer runs Microsoft. He gave up the chief executive role 2 1/2 years ago to his best friend and longtime management sidekick, Steven A. Ballmer. The burly, eats-nails-for-breakfast Detroit native thrives on the discipline of organizational management the way Gates thrills to the intricacies of technology. In 2000, Gates gave his pal free rein to restructure the way Microsoft manages finance, sales, product development, marketing, even strategic planning. And Ballmer took him up on it, big time.

Today, after a transition that had its rocky moments, it's clear that a new era has dawned at Microsoft: The powerhouse that Gates built is being reconstructed by Ballmer. And Gates doesn't seem to mind. Ask Gates about Ballmer's thumbprint on the company, and he laughs at the understatement. "Thumbprint? He's got big thumbs," Gates says. "Steve's the No. 1 guy, and I'm the No. 2 guy....I have a strong voice, a strong recommendation, but Steve has to decide."