An article by Will Oremus in Slate blames the decline of Microsoft on its poisonous stack-ranking system for evaluating employees. This system involves ranking employees in each unit from best to worst, then firing those with the lowest rating. This is demoralizing and causes bitter rivalries and office politics.

Jack Welch is credited with devising this system of internal competition. It sets employees against each other, all fighting for survival.

A brilliant article last year by business writer Kurt Eichenwald in Vanity Fair predicted that stack-ranking was destroying Microsoft’s culture, causing it to lose ground to Apple, Google, and other nimbler corporations. He was right.

Unfortunately, Bill Gates imposed the same toxic methods on the nation’s public schools. He still can’t understand why stack-ranking has not produced the great results he predicted in schools nor why it has engendered a hostile response from teachers, even those who get high ratings. He can’t figure out why they prefer collaboration with their peers rather than the internal competition that is causing his company to fall behind the high-tech companies that treat their employees with respect and that build a culture of teamwork.