Nach der Kündigung Leo Apotheker`s

HP announced that its board of directors has appointed Meg Whitman to the position of President and CEO, replacing Leo Apotheker. The company also announced that Ray Lane has moved from non-executive chairman to executive chairman of the board. The company will be naming a new independent lead director in the near future.

 

The announcement follows widespread media speculation that HP’s board was considering a change in leadership. From the onset, Whitman’s name has been in the mix as either an interim or permanent replacement.

In our opinion, Meg Whitman is a seasoned technology executive and strong communicator with a track record of building businesses in the technology space. She brings valuable experience in running complex, large scale technology based businesses. We believe the decision to quickly name a new CEO foregoing a protracted executive search speaks to the company’s desire to move quickly on rebuilding credibility with customers, employees and investors.

HP has been through an extraordinary 13 month period. In this time frame the company has employed 3 CEOs, executed on four complex and expensive acquisitions (3PAR, ArcSight, Vertica, Autonomy), laid out plans for a jarring "transformation" to being software and services led, announced a desire to seek "strategic alternatives" for either selling or spinning out its Personal Systems Group, and terminated plans for its short lived and much anticipated TouchPad media tablet after only 48 days on the market. In this same time period, HP’s ability to deliver consistent financial execution faltered. The combination of these events led to an erosion of confidence in the investor communitiy and customer base. In a conference call with analysts, Meg Whitman stated "It’s time to get to work". We agree completely. Ms. Whitman is inheriting a company that has been through an unprescedented period of chaos and turmoil.

Where to start?

We believe by focusing in a few areas, HP could make a significant impact on its future:

Execution.

HP needs to regain its ability to consistently execute in its core businesses. HP is an incredibly diverse technology company. We believe that Meg Whitman is fully equipped with the skills and the team to significantly improve HP’s ability to execute. Given that the executive leadership team is intact (including Ann Livermore on the board), we believe that through a better organizational dynamic, tactical leadership, and increased CEO attention to the details of each business, better execution can be accomplished in short order.

 

Strategy.

Leo Apotheker laid out a strategic plan that called for HP to be "transformed" into a software and cloud services provider. Given the realities of where HP is today, this was a very ambitious goal. While strategically HP needs to increase its percent of revenue and profit that comes from software and services, this will take time. In the near term HP remains a company where the vast majority of its revenue comes from hardware. Over time this can change, but it will involve additional acqusitions, complex integration of business units, and significant product development.. Additionally, HP needs to come to closure very quickly on the decision of whether to divest its Personal Systems Group. HP has indicated that this will be completed by the "end of the calendar year or sooner". We think "sooner" is a very good idea. From our conversations with commercial customers the decision to communicate a possible sale/spinoff for this business has introduced an uncertainty in buying plans that will hurt HP’s ability to sell products. Fast resolution on this decision is very important.

 

Communication.

Although HP is a complex company, its strategic and tactical business issues need to be framed in a clear, concise, and confident manner. Meg Whitman has this ability. At this point HP’s investors are frustrated, its employees are weary, and its customers are wary. Clear communication of the strategy and the issues driving the business will go a very long way to improving the situation. While this sounds easy, it’s not. HP is a complex entity that needs to evolve in many ways, by providing a clear voice in how progress is being measured and how the business is being managed is a big deal. It allows customers to "connect the dots" on how future offerings will evolve, and gives investors the confidence to support investment for long term gain.

 

Meg Whitman has achieved a tremendous amount in her career. As a Bain consultant she was tasked with understanding different businesses and how to optimize them. As an executive at Disney, Stride Rite, and Hasbro she held senior leadership roles, and at FTD was CEO. Finally, in 1998, she had the vision to tranform an online rummage sale into an $8 Billion WW internet property (eBay). eBbay’s business is powered by leading edge technology, and it competes by delivering value added services ahead of competitors – skills that HP could use as it transforms to a cloud enabled world. After a very long 13 months, it’s time to "get to work".

 

Crawford Del Prete, Vice President Worldwide Research Products & Chief Research Officer bei IDC