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<TITLE>Columns by David & Shirley Thielen</TITLE>
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<FONT FACE="verdana,arial,helvetica" COLOR="#0033CC"><B>Total World Domination</B></FONT><br>
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Total World Domination<br>
by David Thielen and Shirley Thielen<p>
We are now being inundated with articles describing the consequences of Microsoft's losing the finding-of-fact. But there are no articles that
explain why Microsoft lost. And make no mistake about it, the DOJ, while it did an exceptional job, did not win the trial. Microsoft lost the trial.<p>
In addition, there are numerous articles being written right now discussing possible settlements. But none that explain why Microsoft will not settle.<p>
To start, Microsoft’s corporate culture virtually assured that they would lose the trial.<p>
Let me take you into the being that is Microsoft. First off, all computer illiterate people are morons. Most people at other companies are morons. Other
people do not have the brains, the bandwidth, the genius that people at Microsoft have. Because, if they did, Microsoft would hire them.<p>
In a word, Microsoft is utterly arrogant. And deservedly so. Bill built the company from 2 people to the most highly capitalized company in the world. And he did it in 20 years with essentially no outside help. (Yes the MS-DOS deal with IBM was helpful but Microsoft is well past that period.) Microsoft is the most successful company in history, and Bill is the most successful businessman in history, and they know they did it themselves because they are better at this than anyone else.<p>
In addition, an incredibly large percentage of the Microsoft workforce, including the senior executives, have never worked elsewhere. They were never civilized in the standard business environment which would eliminate anyone as nakedly aggressive as the people at Microsoft. In a sense many, including Bill, are, in a sense, still the brilliant spoiled teenagers who know they are right and see the world very much in Black & White.<p>
So what does Microsoft want? It’s very simple. They want to win. Microsoft is not in it for the money. They are in business to show everyone else they are the best. To take 100% of every market they go after. The unofficial but very real corporate motto at Microsoft is Total World Domination. To take 100% of every market they go after.<p>
When you read about AT&T or IBM or another blue-chip company, what are they talking about doing? When you strip all of the extraneous words away the real basis for each strategic decision is usually, to survive. To adapt to the world well enough that they will still be in business. Using the words from the press releases, “To meet their customers needs.”<p>
So when Microsoft competes with a blue-chip company, what do you get? On one side you get a businessman who is willing to work hard and wants to make a nice profit. On the other side you have someone willing to cut your heart out in order to win that last 1% of the market. The contest is so lopsided that it’s not really even competition.<p>
Ok, but how does this affect the lawsuit? The answer is the effect occurs on several levels.<p>
First, a settlement makes sense from the normal business point of view. Microsoft can continue to be very successful and make lots of money. Potentially more money than if they don’t settle. But from the Microsoft point of view, a settlement is losing. When your mom stepped in and stopped a fight between you and the kid next door, her saying that it was even doesn’t cut it. What you still want to do is pound that kid into the ground because that’s the only way to show who won.<p>
Microsoft has to win. They have never lost a fight that mattered. They have never given up until they have won. Never. A settlement is losing. And Microsoft is not a loser. So they cannot settle. In fact, it makes them unwilling to concede on any point. And instead they fight to win every argument, even those they can afford to lose.<p>
Second, Microsoft has always played fast and loose with the truth. I have seen them fake demonstrations to large groups of software developers claiming that they were showing the real thing. (Including a demonstration Bill gave at the Software Development Conference one year.) And if they can fool software developers, then they know they can fool lawyers.<p>
And besides, they’re Microsoft. What they say - is. If they tell the court that a video is correct, the court would not dare question that video. Now Microsoft’s lawyers understand better than this. But the people at Microsoft, the senior executives on the stand and the people creating the tape don’t.<p>
In fact, for numerous (not all) people at Microsoft, especially in their dealings with the press, the truth is almost irrelevant. In one case they changed an article by a Microsoft employee, over the objections of the employee, because the article was too brutally honest about a Microsoft product. (Keep that in mind when you read Slate.)<p>
What this leads too is the belief that they can argue any point and win. In the software industry this works both because of their excellent P.R. skills as well as their dominance. They can’t comprehend that this may not work in the court case.<p>
Third, Microsoft, and especially Bill, consider the government and the case unacceptable. The closest analogy is that of a gifted teenager forced by his mother to respond to a neighbor’s accusations. Bill knows he is right and he is offended that he even has to go through this.<p>
And like a sulking teenager, he is going to be as uncooperative as possible. And saying he does not know what is going on at Microsoft is no big deal to him. After all, he is saying it to people he considers unworthy. And therefore, he is not concerned with how he appears in his eyes. Bill may be the only CEO of a fortune 500 company who is not bothered by the impression his video deposition makes. Almost any other CEO, for reasons of pride alone, would probably be so unwilling to appear so out of the loop.<p>
Fourth, the entire personal computer industry has operated with almost no interference from Washington (except for the Internet which was created by the DoD). The industry is proud of it’s independence and it’s phenomenal progress is due in part to this non-interference. However, this also means that Microsoft has very little experience in this arena.<p>
Microsoft, in it’s heart, knows it is right. It knows that the DoJ is trying to ruin the hi-tech industry with it’s unwarranted interference. It knows that it is smarter and better than the DoJ and that they will prevail because they are the good guys.<p>
Microsoft is 25,000 of the brightest people on the face of this planet. Microsoft is 25,000 people all focused on complete success in their project, their industry, their company. Microsoft is 25,000 people that have ample proof that they are the most successful team in history. Microsoft is 25,000 people that know they can enter any market, any industry, and take it over.<p>
In short, Microsoft is probably the most arrogant group of people on the face of the earth. And while the basis for much of that arrogance is legit, the arrogance itself will be their undoing. Because the government does not operate like the business world does. And in their arrogance Microsoft will not lower itself to truly understand how the government works.<p>
Microsoft - so successful that compromise is unspeakable. After all, you can’t take over the world if you compromise with the DoJ.<p>
David & Shirley Thielen are the authors of the bestseller “The 12 Simple Secrets of Microsoft Management”<br>
Copyright © 1999 by David & Shirley Thielen<br>
This column may be quoted in whole or in part as long as attribution is given to the authors
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