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New HP CEO II

How will business leaders measure Mark Hurd's success as CEO of HP?

What's your opinion? Analysts say Mark Hurd, the new CEO of HP, is known as an operational cost cutter ... but not [for] growing market share ... a mystery pick out of left field ... a strong contrast to Fiorina ... did a good job as CEO of NCR, a company that is not on the radar screen ... etc. Can he do it? Only time will tell.

Nobody is fully qualified for the HP job; there is none like it. What Hurd demonstrated at NCR is a canny mix of strategic vision and team management, coupled with hard-headed cost control. HP needs the first two like Apollo 13 needed Houston. How he will be measured will be based on the definition of "it."

According to Tom, a great leader will have passion, a great imagination, understand the role of culture in a company's success, act with entrepreneurship in making and executing decisions, engage the customers, hire and develop great people to be greater, have personal integrity and an ability to embrace the ongoing business disruptions. The nominating committee had these criteria in their position specification, and for Mark, put check marks next to them. (Add "risk taker" and "money maker.")

Will Mark Hurd be measured on these criteria or on the stock price and profits? What's your vote on this week's CEO poll?

Juli Ann Reynolds posted this on 03/30/05.

Comments

In a Wednesday morning conference call with financial analysts, Hurd was asked if keeping HP's portfolio intact was a condition of becoming CEO. "I received no preconditions under the agreement that I accepted the job," he said. "I was not given any commentary that would stop me from doing anything that would be in the best interest of trying to improve and optimize the company."

His top priority is to meet with HP employees, customers and partners to gain a better understanding of the company's business.

He understands the vital forces of channel and distribution perspective to capture market-share profitability in each of those marketplaces, service them and get the margin for that.

I vote that he'll do a darn good job, given 36 months!!

Posted by /pd at March 30, 2005 4:28 PM

Mr. Hurd is a careeraholic - loves challenge - did not go looking for the HP position - he is a winner and will make HP a winner again. The tired style days of Carly are erased from the history books.

HP has talent - will add more and then move fast to succeed in an up the value chain fashion.

Posted by Sean at March 30, 2005 4:38 PM

What did Carly leave for Mark in the top office at HP?
http://www.filmcan.hpg.ig.com.br/posters/Gremlins2.jpg

Posted by Jason Kerr at March 31, 2005 3:32 AM

Pure Crystal Ball gazing!

His success or failure will be determined by a whole host of variables that we don't know about. And to be frank that HP and Mark Hurd probably don't even know about yet. It could boil down to personalities in the whole snr team at the end of the day.

All I will say is to wish him the best of luck!

Posted by PaulH at March 31, 2005 7:24 AM

I find Paul's point of view the more coherent thing re. how Mr. Hurd is going to lead HP.I can see how positive the forecasts are about this CEO, which is remarkable from you, but hey! low expectations a little bit, he is still landind. He needs time to build up the team.

Posted by Omara at March 31, 2005 11:23 AM

Not sure if you have seen the Employment Agreement between Hewlett-Packard and Mark Hurd. My favorite provision is paragraph 4(f), which is titled Price Protection. For regular HP employees, price protection means buying an HP LaserJet, discovering that the price dropped within 30 days of purchase, and getting the difference in price back from a credit card company or a retailer. For a CEO, price protection means HP is on the hook for any price declines in Hurdâ€™s vested NCR stock options after his resignation from NCR is announced. Coincidentally, NCR stock dropped from 38 to under 32 when reports surfaced that Hurd was leaving NCR for HP, but whoâ€™s sweating when you have price protection. Genius!

Posted by Enthusiastic Employee at March 31, 2005 3:00 PM

I have to admit that anytime I hear cost control as an attribute, I think less of the choice. Surely a CEO needs to be a good steward of the business, but I think cost control is code for "Oh crap, we screwed our strategy up so bad that people don't want our products, our revenue is down, and the quickest way to fix it is to sell out our future by pillaging the present's coffers!" It is damn easy to put out an edict that says all departments must cut their budgets by X%, suppliers must cut their price by X%, hiring freezes and layoffs...That is purely damage control. I am more interested in a CEO that knows how to build a brand and a company that knows how to renew itself. I don't expect much from HP. This sounds like a knee jerk reaction.

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Posted by Mike Neiss at April 1, 2005 7:44 AM

in his remagine "bidvest0203051" Tom peters used " â€œReward excellent failures. Punish mediocre successes.â€Phil Daniels, Sydney exec".
now, regardning Hp situation, i guess they needed a fresh blood, something to exceed the 2 mentioned points upon wish mark will be assessed.

it is a bundle of managemet tactics.
thus, in my opinion, his success or failure would be based upon his pre-settled strategic tactic management plan, and if his implemetations would match his plan. it is all about strategies, tactics ---- planning --> implementing.

he had a plan, he will try to implement it, he should be judged on the outcomes of the original plan.

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Posted by Tarek Rahal at April 4, 2005 6:40 AM