This is the sort of damage that can be done to your organization when you let a "sales guy" be the CEO. David Auerbach, at Slate writes:
The stack rank was harmful. It served as an incentive not to join high-quality groups, because you’d be that much more likely to fall low in the stack rank. Better to join a weak group where you’d be the star, and then coast. Maybe the executives thought this would help strong people lift up weak teams. It never worked that way. More often, it just encouraged people to backstab their co-workers, since their loss entailed your profit. The entire performance review process at Microsoft encouraged horrendous office politics that enabled backstabbers to profit at the expense of the companies performance. The stack rank was a zero-sum game—one person could only excel by the amount that others were penalized. And it was applied at every level of the organization. Even if you were in a group of three high performers, it was very likely that one of you would be graded Above Average, one Average, and one Below Average. Unless your manager was a prick or an idiot or both, the ordering would reflect your relative skills, but that never came as too much comfort to the hard-working schlub who just wasn’t as good as the other two. Quotas. When review time came, and programmers would fill out a short self-assessment talking about their achievements, strengths, and weaknesses, only some of them knew that their ratings had been more or less already foreordained at the stack rank. The ones who knew could sometimes be recognized by their flip comments on their performance reviews, like the hot-tempered guy who wrote every year in “Areas to Improve,” “I will try to be less of an asshole.” (That guy is awesome). This sort of organizational dissembling skews your psyche. After I left Microsoft, I was left with lingering paranoia for months, always wondering about the agendas of those around me, skeptical that what I was being told was the real story. I didn’t realize until the nonstacked performance review time at my new job that I’d become so wary. At the time—inside Microsoft—it just seemed the only logical way to be. So ex-Microsoft employees are likely to be temporarily bad employees at other companies they work at until they realize the rest of the world doesn't work like the horror that is working within the Microsoft organization? Yikes.