<<< Date Index >>>     <<< Thread Index >>>

[IP] more on RIGHT ON djf Hewlett-Packard's Chief Steps Down, Citing Board Resistance



------ Forwarded Message
From: Bob Hinden <bob.hinden@xxxxxxxxx>
Date: Wed, 09 Feb 2005 10:01:27 -0800
To: <dave@xxxxxxxxxx>
Cc: <Bob.Hinden@xxxxxxxxx>
Subject: Re: [IP] Hewlett-Packard's Chief Steps Down, Citing Board
Resistance

Dave,

My short version of the Carly Fiorina story goes like this:

HP hires Ms. Fiorina as the new CEO.  HP has many serious problems, and Ms.
Fiorina has no idea how to fix them (i.e., it took a long time to create
the problems and would take a long time to fix them, long time fixes are
not good for a new CEO).  What Ms. Fiorina does know how to do is to
acquire another company.  Ms. Fiorina finds Compaq, makes a case that looks
good on paper, but doesn't fix any of the underlying problems at HP.  Lots
of effort go into "merging" the two companies (actually three: Compaq, DEC,
and HP) that isn't focused on the market and customers.  Surprise surprise,
HP isn't better and the board eventually fires Ms. Fiorina.  Of course, it
was the board who hired Ms. Fiorina in the first place.

Moral of story:  1) Merging companies that have serious problems isn't
likely to make one healthy company.  2) Sort term fixes to long term
problems don't work. 3) What a mess.

Bob


------ End of Forwarded Message


-------------------------------------
You are subscribed as roessler@xxxxxxxxxxxxxxxxxx
To manage your subscription, go to
  http://v2.listbox.com/member/?listname=ip

Archives at: http://www.interesting-people.org/archives/interesting-people/