Letters.

GATES TO THE FUTURE

To The Editor:

In reference to your e-business roundtable ("In Search of e-Success," CE: January 2000), Bill Gates' decision to concentrate on software development and hand over the CEO position at Microsoft to Steve Ballmer just may prove to be the best and biggest decision he has ever made. Anyone who believes this is a sign that Bill Gates is slowing down or beginning to fade into the background is sadly mistaken. Steve Ballmer is as brilliant and savvy as Bill Gates.

More important, however, is the fact that despite all the success Microsoft has had, it has lost something by not allowing Bill Gates to concentrate on software development. As CEO, Bill Gates was forced to spend too much time dealing with issues that did not result in driving software development, the company's core product.

That all changes under the new structure. That one change means the industry should expect Microsoft to introduce better products in the future. It demonstrates the determination and the urgency of the company, and it speaks volumes to Microsoft's commitment to remain a dominant player in the Internet economy.

Jimmy Castro

Austin, Texas

Greater Austin

Chamber of Commerce

WINNING THE M&A CHALLENGE

To the Editor:

I am writing to particularly compliment Robert Lear for his incisive advice to CEOs on how to increase the success ratio of major acquisitions ("Speaking Out," CE: April 2000). His advice is very often on target on important subjects, such as this one.

I would like to add the following observations on calamity avoidance by the CEO in major acquisitions:

* Before any acquisition is even endorsed, an evaluation of cultural differences and executive vulnerabilities--and their consequences/remedies-- should be a necessary part of the M&A analysis. This evaluation should certainly not be delegated to the investment bankers and CFO, who are seldom adept or even interested in this area.

* In the Cendant and McKesson cases (and many others), the "explosions" could have been avoided by true due diligence and candor between the auditing firms of both seller and buyer. The absence thereof was outrageous in both cases, and many people with plain street smarts were aware of the likely misbehaviors beforehand.

* If there is a very large acquisition, the CEO personally should play a significant pre- and post-closing cultural and leadership role, even if there is a strong GE or Cisco-type integration team and integration check list.

Josh S. Weston

Honorary Chairman

Roseland, NJ

Automatic Data Processing 

DELIGHTED 'DUBYA'

To the Editor:

Thanks so much for the kind invitation to join you at the Chief Executive of the Year Gala Dinner. I appreciated your thinking of me, but unfortunately, my travel schedule wouldn't allow me to be there.

You picked a great person to honor this year. John is very deserving of the award. Even better, the award is being presented by a Texan. Both John and Herb are fine men, and I am proud to call them my friends.

George W. Bush

Governor of Texas