First, we will simplify the way we work to drive greater accountability, become more agile and move faster. As part of modernizing our engineering processes the expectations we have from each of our disciplines will change. In addition, we plan to have fewer layers of management, both top down and sideways, to accelerate the flow of information and decision making. This includes flattening organizations and increasing the span of control of people managers. In addition, our business processes and support models will be more lean and efficient with greater trust between teams. The overall result of these changes will be more productive, impactful teams across Microsoft. These changes will affect both the Microsoft workforce and our vendor staff. Each organization is starting at different points and moving at different paces.
My experience has been that whenever that many buzzwords appear together in an announcement nothing good ever follows. If I were a pessimistic person I would say that this is Microsoft's Death Knell. It is going to be another case of death by MBA / B-school jargon. (BTW I hope I am wrong I am a huge Microsoft Fan and have a lot of friends who work there)