Swap out the CEO. Ballmer has kept things even keeled and done a great job releasing Windows 7, why not go out on a high note and put in somebody that represents the future, not the past?
Every tech company which has abandoned tech oriented management has stagnated. For instance Apple after Jobs, maybe McNealy and Joy leaving Sun.
When management becomes business oriented they look to maintain market position. They look to maintain current products at the cost of developing internal competitors. A tech orientation looks to innovate and create new markets.
A business orientation looks at Vista and says it is good enough to maintain X% of the market, a tech orientation is embarrassed by its quality and lack of polish. A tech orientation would have given time to fix those belimishes that drives it to grow to X+Y% of the market.
In real terms, a business orientation wants to move Windows onto the phone, a tech orientation wants to create a new OS/API for mobile devices. A business orientation sees introducing a low power tablet as a threat to desktop dominance, a tech orientation sees the possibility of a entirely new market.
Maybe the difference is that a business orientation asks, "Is this good enough to make money" and a tech orientation asks "Is this the best we can do?" Microsoft needs to continually ask the second question. After that, all else will follow.