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Microsoft is undergoing a significant shift in its leadership and talent management strategy, marked by a change in its top HR role and a renewed focus on performance reviews.
Kathleen Hogan, the outgoing Chief People Officer, will transition to a newly created position as Executive Vice President of the “Office of Strategy and Transformation.” This move signals a strategic realignment within the company.
Taking over as the new Chief People Officer is Amy Coleman, a seasoned HR executive with a long history at Microsoft. Coleman’s appointment comes as Microsoft re-evaluates its performance review process in an era increasingly shaped by artificial intelligence.
In an email to employees, CEO Satya Nadella emphasized the need for continuous adaptation and transformation. “Times of great change for the world and for our industry require us to have a mindset that enables us to continually adapt,” Nadella wrote. He highlighted the rapid changes brought about by AI as a key driver for this strategic shift.
The leadership change follows a recent round of layoffs, where nearly 2,000 employees deemed low-performers were let go. This suggests a move towards greater rigor and accountability within the company.
Hogan’s tenure as Chief People Officer saw the implementation of a “growth mindset” culture, emphasizing employee development and learning from challenges. Nadella acknowledged her significant impact on Microsoft’s cultural transformation.
Coleman, the new Chief People Officer, is expected to play a crucial role in redesigning Microsoft’s performance review process. Her extensive experience within the company’s HR functions positions her well to lead this effort.
Read Satya Nadella’s full email to employees:
Subject: Senior Leadership Update
As we’ve seen time and again throughout our 50-year history, times of great change for the world and for our industry require us to have a mindset that enables us to continually adapt and transform ourselves. There’s no question that we are at the forefront of another such moment, with the rapid changes across every industry and business function in this AI era.
This means we must have the right product portfolio, the right business models, attract and retain top talent, and optimize our processes to meet changing customer expectations and succeed in the marketplace.
With this context, I’ve asked Kathleen Hogan to transition to a new role focused on defining our overarching corporate strategy and structure and leading our continuous transformation as a company. Kathleen will assume a new role as EVP, Office of Strategy and Transformation, reporting to me.
It is hard to overstate the impact Kathleen has had on Microsoft as Chief People Officer. Over the past 10+ years, she has led our cultural transformation, as we embraced a growth mindset, positioning us to seize new opportunities with agility and attract and retain world-class talent. She is recognized externally as a consequential HR leader transforming culture and the world of work. Her more than 20-year tenure at Microsoft, including leading our global services business, paired with her prior experience as a McKinsey partner in Silicon Valley, and a development manager at Oracle, makes her uniquely suited to lead this work as we accelerate our pace of change across our people, processes, and portfolio. Kathleen will work across the SLT as we chart this next phase of our transformation, which requires both interpreting the outside and redefining the inside.
Kathleen and I have been discussing this transition and succession planning for some time, and we both agree this is the critical juncture to apply new focus and intention to this work.
With this transition, I’m very pleased to share that Amy Coleman will assume the role of EVP, Chief People Officer, leading our HR organization. She joins the senior leadership team reporting to me.
Amy has led HR for our corporate functions across the company for the past six years, following various HR roles partnering across engineering, sales, marketing, and business development spanning 25 years. In that time, she has been a trusted advisor to both Kathleen and to me as she orchestrated many cross-company workstreams as we evolved our culture, improved our employee engagement model, established our employee relations team, and drove enterprise crisis response for our people. Amy’s commitment to operational excellence and high performance will be key in driving our continued success, and I’m confident in the perspective, expertise, and thoughtful approach she’ll bring as we navigate the next phase of our journey.
Please join me in congratulating Kathleen and Amy on their new roles.
Satya