Ozzie has been fairly public about his simpler approach to software development: simpler product with clear goals and on-time delivery to market. I think that this is just what Microsoft needs.
Another thing that Microsoft needs to do is to go on a subscription based business model for Windows and Office. I have written about this several times in the last two years: higher software complexity caused by adding features that most of us probably do not want.
I use Windows (in addition to OS X and Linux) in my work, and the thing that I want is stability and security. If Microsoft received a small yearly license for Windows use and a larger license fee for Office use then they could just concentrate on quality and simplicity of use - not adding features to (try to) force software upgrades.