When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Friday, October 28, 2011

Recovering from Leo--HP to Keep PC Business

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I hope the world is paying attention--one CEO, Leo Apotheker, personally paid millions, did billions of damage to HP--he grossly overpaid for Autonomy, trashed HP's biggest division, created chaos and havoc with his "leadership" and did unknown billions of damage to the brand name. Now Meg Whitman and Ray Lane, the employees and customers, are trying to recover from all the carnage left in his wake. Obviously the HP board was dysfunctional to have hired Apotheker to begin with, but at least they had the good sense to fire him before he completely killed the company.

H-P to Keep PC Business - WSJ.comThe latest study found that other changes, such as reduced purchasing power and the elimination of joint branding opportunities would have cost H-P about $1 billion a year. "It slowly but surely became very clear that the math just wasn't going to work on this one," Ms. Lesjak said. . . . Ms. Whitman's analysis took a more comprehensive approach, said Ms. Lesjak, evaluating 18 different factors and consulting about 100 people. . . . It also found that some of the mitigation strategies initially considered, such as joint purchasing agreements and letting the PC company keep the H-P brand, weren't viable, she said. . . .Ms. Whitman showed she is pressing for still deeper change. She said she is now reexamining options for a mobile operating system, known as webOS, acquired as part of H-P's $1.2 billion acquisition of Palm Inc.

When you have an inept, dysfunctional CEO--if you are lucky to get rid of him before he completely destroys the company--you need time to recover once he is gone, and start moving again in the right direction. HP is recovering and now moving in the right direction.


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects