Sunday, March 29, 2009

Could laid off Microsoft workers spark a new innovation wave?

Microsoft is accustomed to seeing people leave the company. After all, with close to 90,000 employees, workers always are on the move. But The New York Times today contrasts the Microsoft employees who are now leaving because of layoffs with those who took off before to pursue everything from venture capital to charity work to space travel.

It is an interesting read. And it does have implications for the larger technology community in the Northwest. Will these laid off workers start new companies? Will they leave the region? Do they have the entrepreneurial chops to move from a big company mentality to a startup?

Some have theorized that layoffs at Microsoft actually could spark a new wave of innovation in the region, forcing highly educated workers to come up with something new. And unlike the last batch of ex-Microsoft workers -- many of whom left on their own at the turn of the last decade and were affectionately known as "Baby Bills" -- this new group may simply be hungrier to succeed.

That's because -- as The Times story points out -- they were not as richly rewarded as the Microsofties who left before them.

There's been an ongoing debate on TechFlash about this topic, with readers asking whether ex-Microsoft workers actually make for good entrepreneurs.

"Something the Seattle startup community really needs to work on is leadership development - being a rich ex-MSFT exec doesn't make you a good leader and in fact these things appear to be negatively correlated," wrote one reader.

But a lower level employee who never hit the big stock option paydays of the 80s or 90s may be a different story. It's unlikely that Microsoft laid off any of its top developers in the announced cut of 1,400 workers, but this outflow of talent into the community still will be interesting to watch.

I've actually been thinking about this issue over the past few days. That's because I've been asked by a consulting firm to talk to a group of laid off Microsofties about the entrepreneurial and venture capital process. It should be a gauge of the mindset right now.

What advice would you give them?




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