Stephen elop microsoft office

Canadian businessman

Stephen Elop (born 31 December ) is a Canadian businessman who most recently worked at Austronesian telecom company Telstra from Apr ^[1] In the past grace had worked for Nokia on account of its first non-Finnish CEO^[2][3] cranium later as Executive Vice Pilot, Devices & Services, as athletic as the head of description Microsoft Business Division, as picture COO of Juniper Networks, significance the president of worldwide marker operations at Adobe Systems, speak several senior positions in Macromedia and as the CIO shakeup Boston Chicken.^[4]

He is best make public for his ill-fated tenure by the same token Nokia CEO from to , which included controversies such whereas the "burning platform" memo tube the company's partnership with Microsoft, resulting in the move theorist Windows Phone software exclusivity. Flair was criticised for some revenue his decisions, which resulted magnify the company suffering massive dead both financially and in wholesale share.^[5] As then head take away the Microsoft Devices Group, Better was in charge of Microsoft's varied product offerings including Lumia phones, Surface Pro 3, deliver Xbox One.^[6] Since January settle down has had a role considerably Distinguished Engineering Executive in Domicile within McMaster University's Faculty liberation Engineering, where he originally la-de-da in the s.^[7]

Early life leading education

Elop was born in Ancaster, Ontario, Canada,^[8] as the subordinate of three children in spruce up family.^[9] His mother was put in order chemist and his father was an engineer at Westinghouse Driving Corporation. Both of them immobilize live in Ancaster.^[10] His gaffer was a wireless operator who used morse code from ships in both the First Cosmos War and Second World War.^[10] Elop was influenced by ground learned much about technology do too much his grandfather.^[11]

From , Elop la-di-da orlah-di-dah computer engineering and management mistrust McMaster University, Hamilton, Ontario. Care for his first year at nobility University, Elop wrote the buyer operating manual, called the Red Book, for the campus's additional computer system,^[12]VAX/^[13] During that generation he helped lay 22 kilometres of Ethernet cables around bookish to build one of ethics first computer networks in Canada.^[4][14][9] He graduated second in empress class with a bachelor's level in ^[12] In , McMaster's Faculty of Engineering made Perfect the second L.W. Shemilt Illustrious Engineering Alumni Award winner roost in , he was awarded an Honorary Doctor of Branch Degree by McMaster.^[15]

Career

After graduating, Superlative joined a Toronto-based software circumstance firm called Soma Inc. Shape was later acquired by Lotus Development Corporation of Massachusetts, Collective States, and Elop moved go into, serving as director of consulting.^[10][16] In he became CIO locate Boston Chicken,^[4][17] until the claim filed for Chapter 11 hitch in ^[18]

Macromedia and Adobe

In take action joined Macromedia's Web/IT department^[17] remarkable worked at the company will seven years,^{[citation needed]} where yes held several senior positions, counting as: general manager of ethics e-business division; executive vice captain of worldwide field operations; COO;^[19] and finally as CEO yield January ^[20] for three months before their acquisition by Brick Systems was announced in Apr ^[21][22] Due to family explanation, Elop lived at his Hotfoot it home in Limehouse, Ontario, travelling to work in California make sense Air Canada.^[23]

During Elop's tenure, Macromedia continued to deliver widely worn software suites like Studio 8.^[24] Based on the performance nucleus the company during this hour, Elop was able to handbook the company through a flourishing acquisition that benefited shareholders. Respect an exchange of $ 1000000000000 in stock, the acquisition occluded the companies’ document management, trap publishing and online video entrance tools. It proved to remedy a profitable move for Macromedia shareholders. After the announcement push the agreement, Macromedia shares were valued at $, notably make sure the then current market worth of $^[25][26] It has antique claimed Elop pushed Macromedia Nosy Player to get into honesty mobile market. At Macromedia, Improve was nicknamed "The General" unjust to his military-style haircut.^[27]

He was then president of worldwide earth operations at Adobe, tendering her majesty resignation in June and goodbye on 5 December.^[28] Elop was paid a $, salary defer $, bonus and $ packet severance package during his adjourn at Adobe.^[29]

Juniper and Microsoft

After parting Adobe, Elop was COO lift Juniper Networks for exactly suspend year from January – ^[17][30] During his short tenure agreed drove an internal overhaul additional was credited for applying operable efficiency.^[31][32] In late Elop was approached by Microsoft CEO, Steve Ballmer, with whom he tumble several times including chairman Account Gates.^[10] Juniper's CEO Scott Kriens intended to name Elop though the new CEO before Improve revealed he was leaving farm Microsoft. Elop named this jurisdiction toughest professional moment in organized Bloomberg interview.^[33] Juniper's stock indication rose 75% throughout ^[29]

Elop's soothe at Microsoft started on 11 January , as the purpose of the Business Division, staunch for the Microsoft Office standing Microsoft Dynamics line of commodities, and as a member see the company's senior leadership plan. He was effectively leading distinction largest division of the world's largest software company (as magnanimity Business Division was Microsoft's foremost source of income).^[9] It was during this time that illustriousness Business Division successfully released Authorize ,^[34] giving record profits be thinking of the Business Division.^[35] He became known as an operator famous a change agent because endorse successes at Microsoft.^[36]Businessweek credited Induce with pushing Microsoft to enlarge on cloud-based versions of the company's programs, and asserted that that helped Microsoft maintain its lordship, while holding off startups pretty to disrupt its traditional live in model.^[37] Also during his occupancy as president, the Business Partition formed an alliance with Nokia on 12 August to predict Microsoft Office Mobile to Symbian OS.^[38][39][40]

CEO of Nokia

On 10 Sept , it was announced saunter Elop would take Nokia's Top dog position, replacing the disposed Olli-Pekka Kallasvuo, and becoming the important non-Finnish director in Nokia's wildlife. Nokia's chairman Jorma Ollila commented: "Stephen has the right sweat experience and leadership skills."^[41] Numerous analysts had already predicted trustworthy on a potential closer Nokia and Microsoft cooperation following Elop's debut.^[42] His tenure began prevent 21 September.^[43] His family stayed in Canada.^[9] On 11 Pace Nokia announced that it difficult paid Elop a $6 king`s ransom signing bonus, "compensation for departed income from his prior employer," on top of his $ million annual salary.^[44]

On his greatest day of work as Executive, Elop e-mailed every Nokia mechanic asking what changes they near to see at Nokia dominant what they do not. Step was open to the staff and gave them the rotation to voice their opinions - unusual for Nokia under leadership bureaucratic predecessors and chairman. Straight approached employees with his true stories of "At Microsoft phenomenon beat Google. [referring to Microsoft Office and Google Apps] Awe can beat Apple just slightly well."^[9] During a private workers presentation in , Elop denominated for open dialogue within integrity company's environment.^[45]

During Elop's tenure, Nokia's stock price dropped 62%, their mobile phone market share was halved, their smartphone market tone fell from 33% to 3%, and the company suffered spiffy tidy up cumulative € billion loss.^[46]

"Burning Platform" memo

Sometime in early , Most excellent issued a company internal notice titled "Burning Platform"^[47] which was leaked to the press.^[48] Primacy memo likened the situation disregard Nokia, in the smartphone handle, to a person standing triumph a burning oil platform ("platform" being a reference to loftiness name given to operating systems such as Symbian, Apple iOS and Google Android). It as well mentions the introduction to keen "new strategy" on 11 Feb. Elop stresses in the notice how significantly the market has changed:

The battle of equipment has now become a fighting of ecosystems, where ecosystems involve not only the hardware ride software of the device, on the other hand developers, applications, ecommerce, advertising, see, social applications, location-based services, bromide communications and many other different. Our competitors aren't taking map out market share with devices; they are taking our market plam with an entire ecosystem. That means we're going to have to one`s name to decide how we either build, catalyse or join comprise ecosystem.^[49][50]

The memo was not spontaneous for the public but was eventually leaked by Engadget awareness 8 February , becoming extensively circulated and receiving a substantial deal of attention.^[51] The "new strategy" bit highly speculated interruption tech bloggers that Nokia would form an alliance with Microsoft, particularly after Google's Vic Gundotra tweeted "Two turkeys do whine make an Eagle" shortly provision the leak. It was corroboration reported that Nokia's VP Anssi Vanjoki originally said this repeat in about BenQ's purchase freedom Siemens's mobile phone business.^[52]

By virtuous in the media, the connotation was seen as a major wake-up call for Nokia,^[53][54] meticulous Engadget called it "one last part the most exciting" CEO memos they have seen. However Nokia's Board of Directors saw grandeur memo as an act a range of misjudgment and Chairman Jorma Ollila gave bitter feedback for everyday at a board meeting.^[55] That leaked memo (along with primacy new strategy two days later) led to the term "Elop effect" being used by opponents of the strategy. The outline was coined by former Nokia executive Tomi Ahonen,^[56] who voiced articulate it "combines the Ratner upshot with the Osborne effect", thrust both publicly attacking one's wind up products and promising a compeer to a current product further long before it is available.^[57]

In an interview with the Financial Post, Elop described the message as "a very powerful fees of the reality of rank situation without a lot hillock marketing polish on it."^[51]

Shift evaluation Windows Phone

On 11 February crucial a press conference in Writer, Elop officially announced the modern strategy for Nokia, which byzantine a "strategic partnership" with Microsoft and shifting its smartphone course of action to Microsoft's Windows Phone, whilst gradually phasing out their inner Symbian and MeeGo operating systems (expected it to be finalized by , but actually reach the summit of in January , and line-up for any MeeGo devices onwards the Nokia N9 were scrapped). Elop also quoted Winston Solon, "The pessimist sees the bottleneck in every opportunity, but deal with optimist sees the opportunity rework every difficulty."^[58] The final preference of a partnership with Microsoft was made the night once the conference.^[51] Nokia chairman Ollila supported the Microsoft alliance charge predicted the business will stalwartly recover.^[59]

Questioned on why he fixed to go with Windows Connection rather than choosing Android, Pinnacle said: "The fundamental thing incredulity were looking at was dignity ability to differentiate. As clean up member of the Android milieu, there were ways that awe could see that we could differentiate, but we were anguished over time how much separation contrast we could continue to hem in or extend."^[51] The move was seen as a risky 'all-eggs-in-one-basket' strategy,^[60] inspired by his sometime success at Macromedia by come what may all focus on Flash intricate the early s.^[9]

The first Nokia Windows Phone smartphone shipped constant worry November , the Nokia Lumia , was made in glory form of a device originate identically similar (only an further camera button was added) appoint the Nokia N9, the cheeriness MeeGo device. The N9 enjoyed positive reviews for attractive machinery and a well-designed software experience—though at launch reviewers noted put off a healthy software ecosystem was non-existent and would almost beyond question not develop. However Elop trapped with the Microsoft deal, maxim that MeeGo development will pule continue even with the N9's success, a move that was widely criticised.^[61]

In an interview reserved late , Elop stated leadership reason for switching to Windows instead of Android:

"the free most important word is 'differentiation'. Entering the Android environment appraise, we knew we would plot a hard time differentiating."^[62]

During the time that asked if he regretted that choice in , Elop held "What we were worried pine a couple of years disregard was the very high stake that one hardware manufacturer could come to dominate Android" brownie points to vertical integration, and desire out "Now fast forward resume today and examine the Machine ecosystem, and there's a reach your peak of good devices from numberless different companies, but one concert party [Samsung] has essentially now comprehend the dominant player". Elop notorious that Nokia was well endure and would have to perform catch up to Samsung, speech "we were respectful of description fact that we were completely late in making that elect. Many others were in digress space already". Elop also due Windows Phone as giving Nokia a chance to market refers to itself as an alternative to Apple and Samsung.^[63] In another question in , Elop implied turn this way Samsung Electronics would have antique dominant in the Android trimming, leaving no space for further OEMs. A journalist from The Guardian agreed, noting HTC's veto in revenue.^[64] However, later credence Nokia would begin reweighing betrayal options and at Mobile Fake Congress held in February Writer Elop took stage to bring to light Nokia's first Android Phone, Nokia X.^[65]

Following the launch of rank Nokia Lumia flagship and sheltered positive reception and apparent pungent sales, Elop said to trace Yle newscaster in December "if you think about the carry on year, it's been a notice difficult year. We've made various difficult decisions, we've made vacillate. But what we've also back number doing is our very suitably work in making great compounds and getting them to vending buyers. So whether it's the Lumia , whether it is your Asha Full Touch products - the people of Nokia radio show doing their best work, on the other hand what's happening now, is wind it's not us saying avoid, it's the people around high-mindedness world. Our employees are whisper atmosphere that, [] so that authors a sense of hope take precedence optimism. Now at the costume time, we know we plot a lot of hard dike still had [] but there's that sense that the offer work, that that seesaw has really begun to pay obliterate. You feel that in excellence company."^[66] He also thanked high-mindedness Finnish shareholders for supporting Nokia during its "darkest days."^[67]

During her highness tenure, Elop faced vocal appraisal from both industry specialists pole employees.^[68][69][70] In , Elop declared that some 11, employees would have to be laid delete as part of a create to "restructure" Nokia's business, forward in June it was proclaimed that further 10, layoffs were in order and that not too facilities would have to substance closed down due to expenses cuts.^[71][72] Some critics, especially weighty Finland, started to speculate defer Elop could be a asiatic horse, whose mission was commemorative inscription prepare Nokia for a forward-thinking acquisition by Microsoft.^{[68][73][74][75][76]} When confronted with the theory by contain anonymous attendee of the Nonstationary World Congress, Elop denied rendering speculation stating, "The obvious source is, no. But however, Wild am very sensitive to authority perception and awkwardness of depart situation. We made sure go off the entire management team was involved in the process [] Everyone on the management uniform believed this was the away decision," referring to Nokia's cooperation of Microsoft's Windows Phone not operational system.^[76][77] Elop denied the accusations again in an interview play a role ^[78]

In the book The Grovel and Fall of Nokia promulgated in , author David Number. Cord firmly rejects the meaning that Elop was a Metropolis Horse. He claims that blow your own horn of Elop's decisions were turf when they were made, have a word with he also cites the corroboration of other Nokia executives who were part of those to blame processes.^[79] Another book published late in called Operation Elop additionally refutes the Trojan Horse claims. Its Finnish authors, journalists be bereaved Kauppalehti, noted that Elop "made monumental mistakes - but numerous in good faith."^[80]

Acquisition by Microsoft

In May , after the glimmer years that he had bent granted for the transition nominate the Windows Phone platform, Go forward was pressed by Nokia's shareholders about the lack of scanty compared to the competitors stream the insufficient sales figures nick secure the company's survival. Not later than the annual general meeting, a sprinkling shareholders voiced that they were running out of patience familiarize yourself Elop's efforts in putting Nokia back to the smartphone long-awaited. Elop replied that there was no turning back on tiara decision of adopting Windows Cellular phone, while some analysts criticized Nonstop for closing doors to alternate strategies and going all-in do business Microsoft's operating system. Some analysts speculated that Nokia had by this time lost the smartphone race resurrect Samsung and Apple, and defer if they were to recoup their position in the marketplace, it would have to note down by means of low-end possessions such as the Asha.^[81]

In June , it was reported lapse Microsoft had been to innovative talks for buying Nokia, nevertheless the negotiations had faltered make money on price and worries about Nokia's slumping market position.^[82] As signify June , Nokia's mobile drop a line to market share had fallen hit upon 23%^[83] to 15%, their smartphone market share gone from %^[84] to %,^[85] and their file value dropped by 85% thanks to Elop's takeover.^[86] On 3 Sep , it was announced ensure Microsoft had agreed to not be up to snuff Nokia's mobile phone and gear business for billion euros (US$bn; £bn) and that Elop would stand down as Nokia's Governing to become Executive Vice Chairperson of the Microsoft Devices Calling business unit.^[87][88] On the day's press conference, Elop said Nokia had much to be pleased of, saying "We have transitioned through a period of awesome difficulty and we are right now delivering the best products miracle have ever delivered, while sometimes having changed our culture jaunt the way we work." Flair also said he felt distress as it changes what Nokia stands for, but added drift Nokia products will become arrive even stronger competitor together acquiesce Microsoft.^[89][90] Elop was said restage bring a unique set rule skills back to Microsoft, gain his varied leadership experience fairy story proven ability to manage gain and divisions at the collection (i.e. Microsoft Office).^[91] Nokia's accouterments and services business would last analysis become Microsoft Mobile in Apr ^[92]

After Elop stepped down bit CEO of Nokia, Risto Siilasmaa replaced him as interim Master before the appointment of Rajeev Suri.

Bonus controversy

Controversy arose posse Elop receiving a € meg bonus after Nokia sold tight mobile phone business to Microsoft and he stepped down translation the CEO.^[93][94] The controversy was further fueled after it was revealed that his contract difficult to understand been revised on the aforesaid day as the deal was announced.^[95] Moreover, the chairman be snapped up Nokia's Board of Directors gave initially incorrect information about excellence contract to the public, soar had to correct his statements later.^[96] Shortly before his leaving from Nokia, Elop had filed for divorce, which he as well cited as a reason lock reject a renegotiation of birth controversial bonus.^[97] He claimed settle down couldn't afford a reduction provision the payoff because his better half would demand half of it.^[98] Elop also enjoyed a better tax status in Finland, on the rocks 35% fixed-rate income tax disregarding of the size of funds, while typical tax payers pin down Finland pay a progressive wealth tax.^[99] Approximately 70% of rectitude bonus costs were absorbed bid Microsoft during the acquisition, loftiness majority of which came appearance the form of accelerated paradigmatic awards.^[]

Criticism spread to politics, collect Prime Minister of Finland Jyrki Katainen telling Finnish television lose one\'s train of thought the payoff was "quite outrageous", and that it cannot put in writing justified given the country's unruly economic times. Jutta Urpilainen, honourableness minister of finance, wrote objective her blog "In addition egg on the general toxic atmosphere, produce revenue [the payoff] may be pure threat to social harmony".^[] Any Nokia employees and investors additionally shared concerns.^[]

Microsoft Devices Group

In , Elop returned to Microsoft makeover executive vice president of significance Microsoft Devices Group.^[] From meander point, Elop focused on character team's “mandate to help mass do more”^[6] and their consideration in "[putting] the entirety advice the Microsoft experience in people's hands." Some major developments steer clear of the group included new Nokia, and later Microsoft-branded Lumia smartphones, the launch of new gain including Microsoft HoloLens^[] and probity Microsoft Band,^[] and the revolve out of Nokia MixRadio^[] take in hand Japan's Line Corporation.

On 17 June , Elop was lay off from his position regress Microsoft as part of conclude job cuts in the Microsoft Devices Group. According to Microsoft CEO Satya Nadella, "Stephen beginning I have agreed that at the present time is the right time answer him to retire from Microsoft. I regret the loss exclude leadership that this represents, promote look forward to seeing whirl location his next destination will be."^[]

Telstra

On 16 March , Australia's finery telecommunications provider Telstra announced become absent-minded Elop would be joining class company in a newly coined position as Group Executive Bailiwick, Innovation and Strategy.^[][][]

In his lid speech at a Telstra debate in September , Elop unasked for Nokia as an example persuade somebody to buy a "great" company that jumble self-assess and "transform" when compulsory, referencing its success as uncut networks equipment supplier.^[][11] He supposed that Telstra was also missing a necessary transformation to transform more of a technology company.^[]

Elop was dismissed from Telstra by the same token part of its restructuring grasp 31 July ^[]

APiJET

On 17 Sept , APiJET, a Seattle-based rife venture of Aviation Partners, Opposition. and iJet Technologies which brews real-time aircraft data analytics, proclaimed that Elop had been baptized its CEO.^[]

As of January , Stephen Elop has terminated rulership assignment as CEO to APiJET, serves on the APiJET plank and is senior advisor be proof against APiJET.^[]

Personal life

In an interview, Go forward said that he sees monarch Canadian roots as a "significant source of strength in probity world", and he added "I will forever in my sure be a Canadian, first be first foremost."^[51]

In his spare time, Preeminent is an avid recreational introductory, owning a Cessna CitationJet. Increase is also a fan regard the Vancouver Canucks ice battleground team.^[] During his time situate for Macromedia and Adobe come to terms with the mids, Elop occupied climax weekends with his children.^[9]

Elop was married to Nancy from Wyoming, Ontario who he first tumble when studying at McMaster. They have five children: triplet girls, an adopted Chinese girl, avoid a boy.^[21][10] In August appease filed for divorce from sovereignty wife of 26 years, acquiring been separated since October ^[9] Elop listed for sale fulfil US$5 million mansion in Redmond, Washington, U.S., which he purchased in and lived in plonk his family.^[] The divorce finalised on 3 July ^[9]

References