Rod makes some interesting observations and suggestions for Microsoft. While there is less chance of me being CEO at Microsoft than there is of Helen Clarke being PM one more time (might live to regret those words...) here's what I would do.
1) Forget office. It's not going anywhere. With the new Office Xml and ODF file formats there is plenty of room for any coding monkey to whip up a compatible niche product. These apps will chip away till there's nothing left. 90% of Word is never used, web based mail does a better job than Outlook for day to day mail needs - or at least good enough, Excel - I guess a few people use it but does it do anything that any other spreadsheet app can't do - AND - people use regularly? The Office dominance is mostly due to the Office dominance and unless they do something radical about the rediculous licensing cost then it will dissapear faster than an litre of $1.99 petrol.
2) Branding is nothing without good product. I'm sure I'm more gullable thant most at the subconcious level but dont get me started! I'd sack the whole Marketting department (and shoot Apple's, Google's and any other Marketting guy in sight). Brainwashers all of them! Hire a few talented artists and just state the facts, eg: 'Word - use it to do stuff - $99'.
3) Open Source if you have to, but it's far less relevant than good WELL DOCUMENTED, SIMPLE product. I love SharePoint now but if I have to work that hard again for another enterprise product, I'll be changing careers (oh crap, another burnt bridge).
4) Forget the aquisitions. Microsoft is stacked with exceptional talent already. Free up the brains and let them loose on creating something new and extraordinary, like...
5) Create a new OS that throws out all the old bagage. You dont need to start from scratch - we need something this century - but dump support for the old shit. 90% of the OS should be SaaS'ed. And there has to be zero maintenance. My TV, fridge, phone, oven and toilet work with very little maintenance. Why should I have to spend so much time keeping my PC working?? And I dont want to have to upgrade every 3 years. My cars are 15 years old and get me from A to B just as well as anything else.
6) Make products my mother could use. As an industry we are all guilty of missing the small picture. By all means, cater for the enterprise geeks but remember the noobs too. Imagine if you had to go to night school to learn how to use a TV . Computers need to be made simpler.
7) Consistancy please! The box-of-choclates strategy may have worked for Forest Gump, but it fails misserably for software. Users/developers dont like surprises. It feels like the different teams at Microsoft are not aligned very well. Need to mix things up a little more often.
8) Make licensing simpler. If you need a computer to figure out the license cost then it's too complex. Instead, set a realistic per user/server price for each market and let the regional offices do deals.
9) Don't become the next IBM! Stay away from hardware and services. Stick to what you know best - creating innovation and integrating it.
10) Linux is not a threat to the desktop so ignore it. For the server, concentrate on making it easier and more fun for developers and administrators. And when I say easy, I really mean SIMPLE. For example, you should be able to explain every technology on a single white board in less than 10 minutes, well enough for an intermediate level techo to run with. If you can do that well then Linux for the server will also die it's well deserved death.
11) Buy Apple and cancel the iPhone. I dont have one so no-one else can either!
12) Social networking sites are just a string of uselsss fad's. They do nothing to improve the human race. Dont get sucked in! Unless of course you do it with a decent mobile device... maybe something like an iPhone... but much better.
I did say up front I would never be CEO of Microsoft :)