Nadella getting ready to make some 'tough choices' at Microsoft

Microsoft boss Satya Nadella has emailed staff to warn them that it faces some tough choices as it goes after growth

Microsoft's CEO is a man who knows all about making tough decisions and has already done quite a bit of that since taking over from the Steve Ballmer regime but it looks like there is more soul searching to come at the vendor.

Last week a memo went out to staff from Satya Nadella revealing that several senior managers, including former Nokia CEO Stephen Elop, were leaving the firm and it was re-organising its operations around three main divisions.

That memo was public and shared via the vendor's website but the latest missive to staff from Nadella is private and it is only because of some US reports that the tone of the communication has been made available to a wider audience.  

In many respects the all hands email appears to echo some of the themes that were shared publicly last week with Nadella talking about the latest strategy - around reinventing business processes, building an intelligent cloud platform and creating more personal computing.

But where it differs is in providing a bit more detail of what pursuing those objectives might mean for staff working in an organisation that had been operating slightly differently.

According to reports the conclusion of the message Nadella states that the firm cannot afford to be static and has to continually evolve in order to gain the growth that is potentially out there in the market.

"We will need to innovate in new areas, execute against our plans, make some tough choices in areas where things are not working and solve hard problems in ways that drive customer value," he is reported as emailing staff.

Quite what that will mean in terms of restructuring is not yet clear but Nadella is not one to shy away from making tough choices and last year pulled the trigger on 18,000 staff cuts.

Some staff might have already been braced for talk of "Tough choices" given the pattern set by Nadella last year when he fired off a state of the nation memo and then followed it up a week later with details of job cuts.

Elsewhere in the email Nadella talks about the need to foster greater collaboration among staff and uses the term "One Microsoft" to encourage those with ideas to step forward and contribute to strategic discussions.

Partners heading to next month's WPC were already getting to grips with a refreshed organisation as the three pillars -  - were introduced. Now they will also be trying to guage just what the reference to "tough choices" will mean.

The initial response to Nadella's message from most market watchers is to predict more changes at the Microsoft Phone and Nokia business. The later has already borne the brunt of earlier cuts but might be in the firing line again.

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