1Microsoft Confidential Values and Performance through Human Resources RH Tribune Stockholm May 30, 2008

2Microsoft Confidential One HR Framework to support Performance at Microsoft myMicrosoft Reward Opportunity Career Development Management Excellence Enhanced Workplace Performance Management

3Microsoft Confidential Commitments at the hearth out of myMicrosoft Pay for Performance January - March 1:1 Meetings Realign Commitments as necessary 1:1 Meetings Realign Commitments as necessary Mid Year Career Discussion Feedback Feedback Feedback Feedback Ongoing July/August 1:1 Meetings Realign Commitments as necessary 1:1 Meetings Realign Commitments as necessary Performance Review Commitment Setting Ongoing focus on performance all year

4Microsoft Confidential Commitments – Alignment & Cascade down Area VP ready by May 9 Country General Managers by June 1 Directors and Managers by june 30 Individual Contributors by August 1 Commitment alignment links management accountability for results and the individual employee’s responsibility of making sure those results get delivered August 1

5Microsoft Confidential The Microsoft Scorecard drives the content of the Commitments

6Microsoft Confidential – landing page employee

7Microsoft Confidential - commitments

8Microsoft Confidential – landing page manager

9Microsoft Confidential Commitment Ratings Exceeded Achieved Underperformed 3-point rating scale Employee performance evaluated relative to commitments (corp. guidelines: no “curve”) Informs merit and bonus awards Commitment rating communicated to employee during review discussion (period last week of July – September 15)

10Microsoft Confidential Trust !!!!

11Microsoft Confidential Old Game Versus New Game Relationships Education School Church Politics Customers Religion HW SW Developmental consciousness Time Focus on structuresFocus on individuals Insecurity Software Hardware

12Microsoft Confidential Being Respectful of others … Respect for each other time and agenda Open agenda visible to all employees Respectful of needs of departement Attendance in office when needed Respectful of each other’s virtual presence Alone is NOT Isolated

13Microsoft Confidential Enhanced Workplace “A workplace directed at implementing the new world of work vision” Transparant to each other. Output counts over input. Following the shift from a place to an activity Following the power shifts to the individual

14Microsoft Confidential So what does that mean ? People work at Microsoft Where they want When they want. They determine the availability and the willigness to communicate Collaboration remains key!

15Microsoft Confidential ONE WORD TO MAKE IT HAPPEN Unified Communications

16Microsoft Confidential Unified Communications Unified Communications Innovative communications with revolutionary economics

17Microsoft Confidential

18Microsoft Confidential I’m not working or I’m too busy to receive your communication I’m working but I’m out of the office please call me on my mobile I’m working and am happy to receive your communication Presence gives the “green light” to interact 18 Don’t disturb, I’m either concentrating or doing personal stuff

19Microsoft Confidential Presence connects communications modes with people Presence follows users (identity) – not devices

20Microsoft Confidential Name 1 Name 2 Name 2 Name 3 Name 3 Name 4 Name 4 Name 5 Name 5 Name 6 Name 6 Name 7 Name 8 Simple “1-click” to start a communication Upgrade to voice Upgrade to video Simple ”1-click” to start a conference Simple “1-Click” to dial” Provide context Seamless ‘upgrading’ from 2-party (Peer-Peer) voice(or video, web) call voice(or video, web) call to Multi-Party conference 20

21Microsoft Confidential Being Respectful and Unified Communication – is that possible ? ApproachableConstructiveConsiderate

22Microsoft Confidential AT MICROSOFT WE GO FOR RESULTS – ACCOUNTABILITY IN AN ENVIRONMENT WITH RESPECT FOR THE INDIVIDUAL – OPEN & RESPECTFUL 1:1 Meetings Realign Commitments as necessary 1:1 Meetings Realign Commitments as necessary Mid Year Career Discussion 1:1 Meetings Realign Commitments as necessary 1:1 Meetings Realign Commitments as necessary Performance Review Commitment Setting