"First let us say that we are true believers in the future of HP. We have always had enormous respect for HP and its well-earned iconic status as one of the most important technology companies in the world. We look forward to working with you as we take HP to the next level.
We know that change is difficult. The decision to change the leadership of HP is one the board took seriously. We assure you that it was a difficult decision – and one that was made after careful and thoughtful deliberation – but one the board believes is absolutely necessary for the success of the company.HP is a leading technology company with a real purpose and the ability to positively impact the way the world works. We all recognize that the technology landscape is changing rapidly and we have to do more than simply adapt. We must invest in innovation, leverage the strength of our core businesses, enhance our software capabilities and integrate our assets to maximize the value of our investments. We believe in HP’s strategy, and we are confident that together, with renewed focus and energy, we will deliver on our priorities for our stockholders, customers and other stakeholders.
We believe that HP matters. It matters to Silicon Valley, California, the United States and the world. We will maintain and build upon our proud and deep-rooted legacy. We understand the strength of this company, and we know we have the right tools and the talented people to achieve our goals and execute our strategy."Nice words. Actions will show whether Meg can pull off the huge job of turning HP around - perhaps the job really is to save a once-great company from becoming obsolete and from joining the likes of US Steel and, more recently, Kodak.
In October 2011, HP reversed course on the PC spinoff, saying it would have required one-time expenses of about $1.5 billion and that other factors would have cost H-P about $1 billion a year. Meg took credit for reversing a decision that she would necessarily have approved when she was on Leo's Board.
Meg's appointment as HP CEO was controversial for sure (CBS Moneywatch, Forbes, others). She continues the trend of "outsider" leadership that has made HP a vastly different company from the one I joined 20 years ago.
Several of the most senior HP leaders have departed since Meg took over. The first to go was Shane Robison (EVP of the Office of Strategy & Technology). Then VJ suddenly was gone (EVP of Imaging & Printing). Then Prith Banerjee left HP (SVP & HP Labs Director). These were my three primary mentors and role models at HP.
In a potential sign of major problems to come, the founder of Autonomy left HP in 2012. That left a $10B acquisition without its leader.
One of the outcomes following VJ's departure was that Meg combined Imaging & Printing with the Personal Systems Group under Todd Bradley. That, along with Shane's "retirement" put an end to the HP CTO structure. It also may have spelled "The End of the Age of Printing."
I won't be around at HP to see how this all plays out. In May, Meg announced a plan to reduce HP's workforce by 27,000 people. Part of that comes from an "Enhanced Early Retirement" program that will jettison about 8000 of us - including me!
HP's share price now has fallen to a seven or eight year low. The market and many customers don't believe in HP's future or in its leadership. There is no longer an HP Way at HP. Worse for me, it isn't intellectually challenging or stimulating anymore.
It's a great time for me to move on. HP was a fantastic place to spend the past 20 years as we raised a family in Corvallis. My last day at HP is August 31. In September, I will be on the faculty of the College of Business at Oregon State University. It feels really good.
Next: HP in Corvallis: Official HP Timeline
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