Hurd's first move--reengineering sales

Summary:During the conference call announcing the layoffs and restructuring HP CEO Mark Hurd explained his reasons for dissolving the company's Customer Solutions Group (CSG), which was tasked with sales to corporations, small and medium-size businesses and public-sector customers. The bulk of the sales organization will be integrated into the Technology Solutions Group, which will now both develop product solutions and sell to large corporations.

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During the conference call announcing the layoffs and restructuring HP CEO Mark Hurd explained his reasons for dissolving the company's Customer Solutions Group (CSG), which was tasked with sales to corporations, small and medium-size businesses and public-sector customers. The bulk of the sales organization will be integrated into the Technology Solutions Group, which will now both develop product solutions and sell to large corporations. The Personal Systems Group (PSG) will target medium and small business, and the Imaging and Printing Group (IPG) will focus on consumer sales. Hurd said that he doesn't like matrices, and that the multiple handoffs between CSG and TSG meant too many decision makers were involved in the process. "We are streamlining the accountability structure and creating a shorter line between the creation of an idea and delivery."  With the majority of layoffs coming from internally facing groups (HR, finance, IT), maintaining the R&D spend and refocusing its sales efforts, Hurd is making clear that HP's problems are more about internal processes and sales than product offerings.

Like his predecessor, Hurd will have to prove quarter-by-quarter that his decisions are paying off. When asked during the conference call how his performance should be measured, Hurd said that it should be the same way he measures HP's performance. Good answer...

Topics: IT Employment

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