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subject: What's next for HP after Hurd [print this page]


HP employees who have been around for a while are no stranger to scandal and uproar in the executive suite. Hurd's arrival came on the heels of the rather chaotic tenure of former CEO (and current U.S. Senate candidate) Carly Fiorina. Hurd's buttoned-up manner and strict adherence to slashing costs settled the company, and he was able to provide much-needed stability during the embarrassing revelation that former chairwoman Patricia Dunn had overseen a program to spy on reporters covering HP in 2006.

Perhaps because of those qualities, employees were caught off-guard by Friday's revelations.[hp laptop battery]

Hurd was perceived as a stand-up, "clean" guy, a current HP employee who has been around since Fiorina's time, told CNET Friday. That worker, who asked not to be named, said employees were "completely shocked" and "let down" by the allegations against Hurd, as well as his departure, particularly because Hurd was perceived by employees as pushing the company's ethical business practices and the Standards of Business Conduct policy he was found to be in violation of.

Moving on

Hurd was known for financial discipline and being a very detail-oriented manager. But just because he had the company running well doesn't mean there isn't room for improvement when the company picks someone new to take the helm.

For one thing, his commitment to cutting costs didn't leave much room for innovation, noted Gartner analyst Martin Reynolds.

"He was very focused on cost cutting and cost management. The challenge of that is it's very difficult to present innovation in that environment," he said in an interview. "The new leader could shift the emphasis from cost focus to move them toward the inspirational things that HP can help companies and consumers do."

Plus, HP has plenty of competition in all areas of its business. IBM, HP's biggest rival in enterprise services, isn't going anywhere, and it spends "far more than HP in research and development," Technology Business Research analyst Ezra Gotthiel wrote in a research note Friday. And though HP still ships the most computers in the world every quarter, the company has to continue to keep an eye on the surging Acer, and others like Samsung and Asus that are making plays for HP's territory of consumer laptops and other portable gadgets.

And, of course, it must keep watching out for Apple. The iPhone and iPad have established Apple as a serious force in personal technology, in terms of design and consumer appeal, and in terms of the company's ability to maximize profits. It became clear earlier this year that HP was taking some cues from Steve Jobs and Apple when it acquired Palm, almost solely so it could own and develop further the WebOS operating system for its devices, the way Apple owns iOS, and unlike Android or Windows Phone.

Gartner's Reynolds suggested HP might even look toward a new leader with a more Jobsian taste for the dramatic, more of an evangelist for the company.

"Obviously they want someone who can make sure the operations stay on track," he said. "There's room for a little bit of flair, a little bit of Steve Jobs in the person. Though not too much. But there is the opportunity to bring in someone with more of a public persona to drive interest in the company.

"But you couldn't do that if they weren't in such a good position."

What's next for HP after Hurd

By: www.ibuynow.com.au




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