Jason Hiner
Lawrence Dignan
Opening Statements
Restoring business-as-usual is job one
Jason Hiner: Leo Apotheker had the wrong vision for HP and unnecessarily put the company in disarray. The HP board realized it had made a massive mistake and wisely decided to move quickly to restore order inside the company and give the public hope that HP can pull itself together.
Meg Whitman may not be the ideal CEO -- she doesn't have the enterprise IT chops -- but she was one the best options HP had available and she's smart enough to hire or retain the right lieutenants. She'll immediately bring stability and her arrival will give the company a (mostly) positive spin that it could use right now in the wake of the Mark Hurd scandal, the Apotheker disaster, and the overall missteps by the board.
It's a solid short-term move. Whether Whitman can create a vision to lead HP into the next decade remains to be seen. But, for now, restoring business-as-usual to the world's largest computer maker will be enough.
None of HP's problems are quick fixes
Larry Dignan: HP Executive Chairman Ray Lane said that Meg Whitman knows leadership, communications and IT. "Meg was both a large purchaser of information technology for the enterprise, and ran a company that depends on technology to deliver its service," said Lane.
If only it were that easy. Amazon's Jeff Bezos buys a ton of technology too, but I'm not so sure he could run a hardware and services company. Whitman's experience screams consumer, branding and strong leadership. Only that latter part applies to HP.
Whitman can stabilize HP, but will be hard-pressed to make it hum. She'll need the operational knowhow of key execs such as Dave Donatelli, who runs HP's enterprise server, storage and networking business. The catch is Donatelli has been passed over as CEO material twice. Whitman also has to figure out the services business.
She'll make some progress, but won't turn HP around completely. Perhaps she sets the stage to hand off to another CEO.
The Rebuttal
Closing Statements
She will quickly re-establish stability
Jason Hiner
In 2011 HP has become a company suddenly in disarray and surrounded by uncertainty. It didn't have to be this way. While the company came into the year with a number of long-term challenges it needed to figure out -- tablets, the cloud, the low-margin PC business -- the issues should have been handled much more gracefully and with less disruption to existing business than how CEO Leo Apotheker did it.
The clock will run out on Whitman
Lawrence Dignan
Meg Whitman may be the best CEO for HP at this juncture, but she has multiple challenges that may take a decade to fit. HP's challenge is that most of the low-hanging fruit has been plucked and now every one of its businesses have long-term secular and competitive issues. Whitman is a great communicator and branding expert and can win over HP's troops. However, in the long run the clock will run out on her. Ramping R&D, defining leapfrog moves and forming a multidecade vision is a lot to ask from a company that has had seven CEOs since 1999.
The best case is that Whitman stabilizes the patient and hands off to an internal candidate that can take the baton of continuity and vision. I see Whitman as potentially the first CEO of a broader relay for HP.
Larry edges out Jason: It's going to take more than one person to right this ship
Andrew Nusca
This may have been our closest debate yet. Both Jason and Larry made salient points about the good, the bad and the ugly for Hewlett-Packard. These are problems that affect every large company: a lot of innovation tucked into dark corners, but a lot of driftwood, too.
However, this debate was about whether Meg Whitman can turn the company around. And to that end, I think Larry edged out Jason: for a company with 300,000 employees and no direction, it's going to take more than one person -- and many years -- to right this ship.
Jason argued that "too much credit" has been given to the boards of directors of big companies. That may be true in some examples, but I think in HP's case it's clear who is -- to continue his sports metaphor -- choosing the quarterback. (NFL fans, consider the Vince Young-Kerry Collins debacle in Tennessee. Coordination often trumps raw talent.)
Meg Whitman has demonstrated her talent in spades, but the willingness of the rest of the company to change with her -- rise to the occasion, even -- is the deciding factor. Her failed gubernatorial run in California demonstrates that it's not always easy to change people's minds. If her biggest asset is commanding respect, as Jason suggested, she could easily and rapidly lose it. And then what?
In partnership with Ricoh Doc's final thoughts
DocMeg Whitman’s disastrous run for Governor of California may have steeled her for the difficult job she is about to undertake running Hewlett-Packard – she’ll certainly have to handle some defeats along the way.
But I worry less about her particular experience – we live in the era of the celebrity CEO, and Meg Whitman has celebrity down very well. Big customers will be eager to meet with her and won’t have any trouble telling her about the problems at HP and how they think she should fix them (and in many cases they will be right, as customers often are). More than anything she has to be a good listener. If she can listen carefully and resist over-correcting the big ship HP, she may have a stab at effective leadership.
I do worry a bit that just when HP could use someone a little more touchy-feely to help boost staff morale, they’ve chosen to bring in someone known for being a bit distant (despite her famous me-too cubicle at eBay). But then the CEO doesn’t have to be everyone’s best friend (and unlike running for governor, this isn’t a popularity contest) – they simply have to inspire the team by being decisive, insightful and right more than they are wrong. Meg Whitman has a reputation for being a good leader – let’s give her the chance to live up to the hype.
More from "The Great Debate"
That is what I was thinking, ...but you said it so well!
I am thinking, "None of the above" since the board will undermine her, and then replace her, probably just far enough into the renovation process to make the house unlivable!
I actually feel sorry for her. She has been set up, and not in a good way!
(Just my opinion.)
Only - where is HP vision now?
Are you offering him your job? On the basis of saying "me too"?
Whoever takes the CEO spot can learn everything they need to know in 30 days - spend 15 of those days answering the phone for consumer tech support, and spend the other 15 answering the phone for server tech support. That'll provide Meg - or whoever - a better idea as to what's broken than any stack of reports the executive VP's will give her.
Joey
are you serious? answering the t/s line *might* be indicative of 'what's broken' but it surely won't show how or if to fix it. nor does that cover all of HP's woes at this time.
would you check the air in your car tires for assurance that the engine is fine?
It's not just fixing broken servers or RMAing a laptop with a cracked screen. It's directly interacting with the customers. It's about seeing what goes on in the trenches that doesn't make its way to a report anywhere and interacting with the people who Meg is entrusting with the power to keep and lose her customers. It's about keeping the mindset of "tens of thousands of former customers have sworn to never buy our products again, but today, I refuse to add another to their ranks". I didn't say she'd STAY there, as there ARE other places she needs to visit, and in fairness to your point perhaps phrasing it as "everything they need to know" is a bit overreaching, but the principle is still a good one - and a necessary one - if HP wants to get itself a positive image.
Joey
Not sure if she will have the chance to get this first hand experience - middle-management will for sure prevent her to have a deeper look (seen before).
There is no need to waste your water on extinguishing the fire when your tires are flat in the middle of the desert - to pick up your metaphor.
I fear that HP's problem are deeper rooted and I am not optimistic that they'll have enough time to fix it. It is easy to fall behind in a race, but it very hard to catch up
And it's aamazing that it does not bother anyone that she repeatedly lied publicly about her maids work status - perhaps a lack of ethics is a job requirement for CEO's!
For public office it is a big deal; for a corporation position it is just par for the course.
Not true. HP employees see through Lane's machinations and already don't believe a word coming out of the mouths of Lane and Whitman.
Without the team feeling that mgmt is on the same side, the game is already lost.
Long-term HP employees have seen the revolving door at the top and been unhappy for a very long time. Whitman will have to really listen to both customers and employees to figure out what's broken and where the vision needs to go -- possibly two very different things.
I can see why HP thinks being an enterprise vendor of software and services could lead to higher margins, but I doubt they could cut off half their revenue and buy and integrate enough software and services from whatever they get for it (remember, these are low margin businesses except for printer supplies and a few high-end printers) to still be a $125B company. Are they (and their shareholders) ready for that?
Only 30% of HP's business is consumer. It's a lot, but it's low margin. HP was enterprise before it was consumer. Enterprise is its core.
If she doesn't dump Shane, HP shareholders will be looking at a stock price in the $10 range within the year.
Apotheker was on the war path, cleaning HP of clueless execs, and the light was just coming on for him about Robison.
Many problems with Apotheker, but he did see through the Hurd "Yes men" who didn't have a clue how to put the train back on the track. Will say that Apotheker's vision of spinning off PSG relied on the fact that Todd Bradley had no vision but was thought highly by the BoD. He should have stuck to his guns and fired Bradley for creating the low margin mess of PSG. (and others)
She won't, I predict, because she has Establishment Business training. She needs to be an artist.
1) Itanium is dead. The future is virtualization and cloud services based on high scalability x86 architectures. HP has made a great parthnership with Red Hat Linux to offer Red Hat Linux Enterprise 6. This is a great threat to Oracle and IBM offerings.
2) HP has great support. HP has experienced professionals to do difficult migrations from previous services to a Virtual Environment and Cloud based data centres.
Can it be fixed? Sure - will it be? Remains to be seen for now.
Planet -- Virtually no comparison.
A very poor choice.
Great business leaders & CEOs know how to run & lead a company (if you get a bad apple & one does not throw the rotten apple.... well you all know what takes place for the rest of the apples, they quickly turn rotten).
So my point is, GREAT business leaders are allway looking out for the whole company /its staff/shareholders and they are the best team players. They have one focus, and to produce strong revenues. As we all know this is what shareholders want... $$$ with results that is the bottom line.
So forgive me for my boldness, and at the same time, please give her a chance & see what she pulls out of her cool hat.
Ultimately this is the bottom line "revenues - sales" and the best wicked gadget & devices in the market. Time will tell, if she was the right choice or not.
TO all the boys club networks:
Give her a chance.
Women have a harder time to fit in the old boys elite club.
I say this from my own past & current experiences. I am a women of color & women in business, and this gives me double strikes.
I have to fight 100 times harder to get my word in or get an investor interested in what I am doing, or even be invited to a conference or be acknowledge by a particular group. I say this purely from my own experiences. So dear COOL boys here, from a women's point of view - GIVE MEG a chance & in a year debate this again, or keep it alive - I can help you with your social media campaign if you wish, at least you will have a great debate, you all can be totally proud and than get MEG to come an speak during this debate in a few months down the road. So here we go - if you are interested in forming a cool online campaign, contact me here is my online TOPIC #women4tech (me) and see if we can one day invite MEG to join our debate... something to think about .
SO give her a chance and lets see if she just turns things around for HP or not, give her chance folks Best Ashie via spain @mymulticast -
Evangelist & Advocate for end user protection. Adovacy for best practice , whilst we all protect innocent children, women and youth on the internet from the current dangers of nasty intruders
Roy in Montreal
I remember when HP was the premier manufacturer of scientific instrumentation and scientific calculators. Then the PC revolution happened and the rest is history. I won't buy another HP product, no, not even a printer.
It is hard to see HP making enough changes to set a new course without some large pieces of the ship breaking off.
Look at IBM, they have grown past Enterprise IT and IS.
Look at IBM products and services and some of thier clients
then look at some of thier job opportunities. Like one I found to hire engineers with Natural GAS experience. IBM is applying technology to real problems using Applied Sciences- that goes beyond IT and IS. THe IBM strategy is loud, clear, is all over commercials and in every media stream out there. Plus, they have deep taleent, R&D and solid offerings to back it up
One comment in the debate was about how HP sold off valuable IP with that spin-off of Agilent.
So before they decide to keep or spin off the PC, sell off WebOS IP, before they dive head first into Software and Services....Whats the strategy?
HP's board and Whitman must decide. HP needs to know what strategy to execute on.
http://www.youtube.com/watch?v=PEUsfUTfvlg
Join the conversation!
Debate Event Reminders
The Great Debate Newsletter
With the Great Debate newsletter, you get a front-row seat to every argument until the final gavel falls.
Upcoming Debate
-
Can PC makers survive in a post PC world?
May 29, 2012 | 7:00 AM PDT
Add to Calendar




well done
http://www.youtube.com/watch?v=PEUsfUTfvlg
Yes, She Can.
RE: Great Debate: Can Whitman turn around HP?
RE: Great Debate: Can Whitman turn around HP?
RE: Great Debate: Can Whitman turn around HP?