The Microsoft Business Planning Cycle

As July breaks, much of North America is preparing for summer holidays, but Microsoft is getting down to business. July 1 marks the beginning of not only the company’s fiscal year but also of its business planning calendar. Microsoft partners who are familiar with this calendar can deal more effectively with Microsoft: they can attempt to influence the company when it is most open to suggestions, deal with the right decision makers, and piggyback their own marketing on Microsoft’s initiatives.

The cycle kicks off with an employee meeting and companywide performance reviews and continues through strategic planning meetings, a mid-year sales analysis, and possible reorganizations. It is designed to give the company rhythm and predictability, but at the same time be flexible enough to incorporate radical shifts in direction or priorities, and it is one of the reasons Microsoft can adapt quickly to changing market conditions. Most affected are the company’s marketing and sales teams; other than the annual budgeting and performance review process, product development groups operate relatively independently of annual cycles. However, the cycle requires the company’s marketing and sales staff to be flexible: they must be willing to tolerate annual reorganizations, change strategies, and educate themselves quickly on new products and marketing initiatives.