Microsoft has announced a significant leadership update, appointing company veteran Amy Coleman as executive vice president and chief people officer. Coleman, who has spent over 25 years at Microsoft in various HR roles, will succeed Kathleen Hogan, who has held the role for the past decade.

Hogan, a prominent figure in Microsoft’s leadership, is transitioning to the newly created Office of Strategy and Transformation as executive vice president. In this expanded capacity, she will report directly to CEO Satya Nadella and work alongside the senior leadership team.

Nadella framed the leadership changes as a proactive move to meet the demands of the AI era. He highlighted the need for Microsoft to stay nimble, refining its business models, product portfolio, and talent management to keep pace with industry disruption. Hogan’s new role will focus on leading this transformation, ensuring the company remains resilient and competitive.

“There’s no question that we are at the forefront of another such moment, with the rapid changes across every industry and business function in this AI era,” Nadella wrote in a company memo. “We must have the right product portfolio, the right business models, attract and retain top talent, and optimise our processes to meet changing customer expectations and succeed in the marketplace.”

Hogan’s experience, including her leadership of Microsoft’s cultural transformation and prior roles at McKinsey and Oracle, made her the ideal candidate to helm this strategic shift. Nadella described her as:

A consequential HR leader transforming culture and the world of work.

Amy Coleman’s journey to the top

Coleman’s appointment as chief people officer reflects her deep institutional knowledge and expertise in managing complex people strategies.

Her career at Microsoft has spanned corporate HR functions, engineering, sales, marketing, and business development. Most recently, she served as corporate vice president for HR, leading a team of 200 professionals.

Coleman played a pivotal role in Microsoft’s adoption of hybrid work models and its Covid-19 response, demonstrating her ability to navigate turbulent times. Nadella praised her “operational excellence and high performance” and described her as a “trusted advisor” in key company-wide initiatives.

Her leadership style has also been marked by a strong focus on employee engagement and inclusive practices.

Nadella expressed confidence that Coleman’s “perspective, expertise, and thoughtful approach” would continue to drive Microsoft’s people strategy forward.

Kathleen Hogan’s legacy in HR

During her tenure as chief people officer, Hogan spearheaded a cultural shift at Microsoft by championing the concept of a growth mindset, inspired by psychologist Carol Dweck.

This approach encouraged employees to embrace continuous learning and adaptability – qualities Nadella views as essential for thriving in the AI era.

Hogan also implemented symbolic changes to reinforce the cultural shift, including overhauling the performance review system, revamping company-wide meetings, and introducing monthly Q&A sessions.

The HR leader also pushed for managers to consider inclusivity in employee evaluations and played a key role in strengthening how internal sexual harassment cases were handled.

Reflecting on her leadership, Nadella said:

It is hard to overstate the impact Kathleen has had on Microsoft as chief people officer.

“Over the past 10+ years, she has led our cultural transformation, as we embraced a growth mindset, positioning us to seize new opportunities with agility and attract and retain world-class talent.”

A new chapter for Microsoft’s people strategy

The timing of the leadership transition is notable, as reports suggest Microsoft is planning to revise its performance review processes. The move is viewed as part of its broader efforts to enhance employee engagement and maintain a high-performance culture.

With Coleman at the helm of HR and Hogan driving corporate transformation, Microsoft’s leadership team is positioning the company to navigate the evolving business landscape.

Coleman’s hands-on experience in fostering resilience during crises, combined with Hogan’s strategic oversight, signals a dual-pronged approach to ensuring Microsoft remains a formidable force in the AI age.

As the company marks its 50th year, the combination of a seasoned hand and a fresh perspective reflects a well-calibrated balance of continuity and innovation.

For Microsoft’s 228,000 employees, these leadership changes are expected to reinforce the company’s commitment to growth, adaptability, and a people-first approach.

The company will continue to journey into uncharted AI territory, so all eyes will be on how Coleman shapes its culture while Hogan steers its broader strategic evolution.