Bolaji's review on HP's revolving door was well presented. I don't know the players involved in this story nearly as well as others do, but from my hat as an organizational consultant it seems to me HP may be missing something very key: an administrative scale. By definition this is a written, living, breathing document that outlines an organization's goals, purposes, policies, plans, programs, projects, orders, ideal scenes, statistics and valuable final products. This scale is worked up and down until each item is in full agreement with the other items. When one item of the scale is not aligned with the other items, the project (and overall organization) will be hindered or fail altogether.
I can't really comment on how good Whitman will be in comparison to Apotheker, but if Whitman is still pursuing the strategy of dissolving PC and tablet business, I don't see any hopes of HP getting better or recovering from it's current state. While it is advisable to continue with previous policies and bring about change slowly, I still think if HP doesn't make a move now, it may be very late.
@Parser, HP will definitely have to change and some of the changes will be structural and so the company may not want to spook employees. I understand companies often do this when a new CEO takes office. In the case of HP, though, the circumstances under which Leo Apotheker was removed and the continuing turmoil surrounding the company warrants a different approach than the one adopted by Whitman. It is disingenious to abruptly remove Apotheker and then have a new CEO announce it's going to be business as usual. Everyone can see through the deceptive statement, including the employees the company is trying not to alarm.
This is a rather puzzling piece of news from HP's Board. They fire their current CEO after making startling news about sluggish sales, a fire sale on the Touchpad that nobody gave a chance too, and talks of spending billions to become a major player in the software business to compete with IBM. Yet they replace him with a "yes person" from the board who lacks proper experience or knowledge of the electronics industry. And the most startling comment is that they are following suit with the big business change over. All of this makes me wonder how long Whitman will be in place and how much damage to HP will have taken place over that time period.
As an employee in engineering (not at HP) I went through many changes on top in several different companies. At first they all say nothing is going to change. It is only to keep employees not worrying. It takes about 3 to 6 months when things change completely.
@Eldredge, You raised a valid point. This is a $126 billion revenue company and so far it hasn't been able to name an internal candidate as CEO. What exactly has the board been doing until now? This company should have a rack of potential CEOs in place. That it doesn't is shocking.
@Eldredge, Exactly. HP didn't give the TouchPad a fighting chance. It dumped it two months after introducing the product. Was it really that bad and it it was, whoever gave the approval to sell it in the first place needs to do some explaining. Let's see what Meg Whitman will now do. If a company dumps a CEO only after one year in office, it doesn't sound too encouraging if the replacement says she would maintain his policies. If his policies were so good -- and if he wasn't involved in some shenanigans -- why then was he replaced? Anyone expecting Whitman to perform miracles should reassess that view.
@DennisQ, Your analysis is spot on and I like the quote from Larry Ellison of Oracle. You asked why I don't agree with the decision to exit the tablet PC market. I don't know whether or not it is the right move for the company. What I question is the timing of the announcement. The company said it was considering spinning out or selling its PC business and then chose the same period to exit the tablet PC business.
What is the incentive for a buyer if you choose to exit one of the fastest-growing segments of the market? The decision reduced the attraction. The buyers should be allowed to take that decision, not HP. Whether or not Apple has a lock on the tablet PC market the truth is that it is still a hot segment. HP's PC business is more valuable with the tablet division. Getting out now adds to the list of incomprehensible measures HP's board of directors has approved.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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