A retailing executive has been chosen to fill the long-vacant chief operating officer (COO) role at Microsoft and to assume leadership of Microsoft's sales, marketing, and services units. Kevin Turner, 40, will step into a chief operating officer role last held by Richard Belluzzo and will take over Kevin Johnson's responsibilities for worldwide sales, marketing, and services. Johnson, a 13-year veteran at Microsoft, will assume another management role, expected to be announced in Sept. 2005.

Turner is familiar with technology, stemming from his role as Wal-Mart's chief information officer. The company is famous in the retail industry for rapidly adopting new technologies, such as RFID and data mining, that have helped it become the world's largest retailer. However, it's Turner's experience as the president of Sam's Club, a warehouse discount store with US$37 billion in annual sales, that probably played the most significant role in the decision to put him at the head of Microsoft's sales and marketing efforts, reporting directly to CEO Steve Ballmer. Turner was a popular leader at Sam's Club, and same-store sales grew twice as fast in the last year as those for Wal-Mart overall. Turner is the second COO to also head Microsoft's sales and service organization; Belluzzo had similar responsibilities during his tenure.

Turner's hiring also indicates that Microsoft is increasingly willing to look outside the company for senior management talent. Earlier this year, the company hired Chris Liddell of International Paper as chief financial officer (CFO), replacing John Connors, who left the company.

The COO role has had a checkered history at Microsoft. Although it is perceived as the third-most senior position at the company, below CEO Ballmer and Chairman Bill Gates, it has never vaulted incumbents into a position of long-term power. Belluzzo joined Microsoft (from Silicon Graphics) in 1999, became COO in 2001, and left the company in 2002. Others who have held the post include James Towne, the company's first COO in 1982, who held the position for just more than a year; Jon Shirley, who served from 1983 to 1990 and is currently on the board of directors; Michael Hallman (1990 to 1992); and Bob Herbold (1994 to 1999). Between 1992 and 1994, the company had an "Office of the President" that included Ballmer, Frank Gaudette (Microsoft's first CFO), and Mike Maples, who was vice president of the Worldwide Products Group.