Comments on: As Hewlett Packard goes, so goes the world http://blogs.reuters.com/mediafile/2011/09/28/as-hewlett-packard-goes-so-goes-the-world/ Where media and technology meet Wed, 16 Nov 2016 08:48:25 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: g3e http://blogs.reuters.com/mediafile/2011/09/28/as-hewlett-packard-goes-so-goes-the-world/#comment-390486 Thu, 29 Sep 2011 15:24:58 +0000 http://blogs.reuters.com/mediafile/?p=29903#comment-390486 Insightful article that leaves out only the spinoff of Agilent by Lew Platt. This was supposed to give the remaining HP some much-needed focus as a computer company, rather than an “anything high-tech” company, and it worked, but at the cost of severely limiting the scope for innovation in an increasingly commoditized marketplace where growth comes only via economies of scale.

Ronald Coase wrote many years ago about how companies grow until their internal transaction costs exceed the revenue generated by the those transactions. HP’s improvements in efficiency have come at the cost of a rigorous planning process whose rigidity makes it almost impossible to do anything quickly in order to react to a rapidly-evolving marketplace.

Reducing opportunities for innovation and slowing the pace of incremental changes in order to maintain strict cost control is a recipe for stagnation that can be successful in mature industries, but it’s a formula for failure in technology.

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By: exhp http://blogs.reuters.com/mediafile/2011/09/28/as-hewlett-packard-goes-so-goes-the-world/#comment-390481 Wed, 28 Sep 2011 21:53:41 +0000 http://blogs.reuters.com/mediafile/?p=29903#comment-390481 Peter,
as a 14 year ex-Compaq/HP employee I can only speak pre Compaq aquisition, they were lost we we came in to the company. Carly did the right thing in my opinion because HP Consumer/Commercial equipment was a non-seller. The Compaq ProLiant servers where a huge hit. Carly seemed employee centric the opposite of “hit them hard Hurd” to meet the bottom line. Cut the heads, travel, options, salaries, etc. The employees saved the company, taking salary cuts in 2008, which Leo just gave back this year. The employee didn’t mean squat and then I was WRF’d in 2010. Definately going downhill and will continue to do so. Bill and Dave were HP, it just could not be sustained once they were gone. Sad.

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By: gj352 http://blogs.reuters.com/mediafile/2011/09/28/as-hewlett-packard-goes-so-goes-the-world/#comment-390480 Wed, 28 Sep 2011 21:22:08 +0000 http://blogs.reuters.com/mediafile/?p=29903#comment-390480 Interestingly, in business school we dived deep on the topic of leadership with an emphasis on understanding the role of the visionary and the role of the operationalist. HP was used as a case example, specifically related to the appointment of Mark that was made right near semester’s end. The Fiorina/Hurd era was challenged by the perception that vision and operations get seen as an “or” rather than an “and.” We came to the conclusion in 2005 that Mark should have been hired as President under Carly rather than a new CEO (a point that seems to be well understood by a certain company up in Redwood Shores…). Leo needed an operations lead…of that, there’s no question.

I also would build to suggest that Meg will not operate alone. Ray’s influence will be strongly felt, and their ability to work in concert will be the deciding factor for success. To hang the future on Meg may be missing a meaningful duality that harkens back to what worked in the past, and I’d suggest a deeper analysis of their leadership styles and backgrounds to project forward what the combination will be capable of accomplishing.

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By: HP2007 http://blogs.reuters.com/mediafile/2011/09/28/as-hewlett-packard-goes-so-goes-the-world/#comment-390479 Wed, 28 Sep 2011 21:20:01 +0000 http://blogs.reuters.com/mediafile/?p=29903#comment-390479 A good article, but insiders at HP have known this for years (particularly when the Compaq acquisition/merger occurred). A couple of additional points to the article. While HP grew via M&A activity, they never bothered to integrate into one culture, and this created negative competition and decisions made in silos. (similar to our own immigration problem in the US…..we don’t ask or expect individuals to assimilate), so we wind up with competing cultures ….. Old HP was consensus, Compaq was strict hierarchy with little input ……as an example, Compaq was an acquisition, but HP approaches all M&A activity as a merger …..this is a naïve (and risky way), to conduct M&A activity……..this continues today and will for the foreseeable future .

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