Sometimes it just boggles the mind to read how some companies are being mismanaged. The latest company in a tailspin is HP who is being mismanaged by their CEO Meg Whitman. It seems that a company they purchased in the UK had, supposedly, cooked the books to the tune of over $5 billion. Rather than take responsibility Ms Whitman seems more intent at pointing the finger at HP’s former CEO. Is this anyway to lead a company that’s in trouble ?
HP is trouble folks. Since taking over as CEO Ms Whitman has laid off a lot of people at HP, decided to copy Apples iMac design for a new line of desktops and is watching the moral at the company drop lower and lower.
So it seems that HP decided a long time ago to purchase a company in the UK that makes software for data analysis. Even though HP spent a lot of money and time conducting due diligence it’s being reported that accounting irregularities were discovered causing HP to take a massive write down of over $5 billion. Add it up, and H-P’s various restructuring charges, goodwill write-downs and merger-related expenses amount to $26.1 billion since the start of fiscal 2006, according to data from S&P Capital IQ. After today’s 12% stock-price slide, that figure is now bigger than H-P’s market capitalization.
You know things are bad when investors long for the days of a CEO who lied on his expense report to cover up a possible relationship with a consultant he was trying to bed.
What is so puzzling to me is the fact that HP spent so much time and effort looking at acquisitions and still managed to sell investors down the river. More importantly is the fact that Ms Whitman seems all to willing to point the finger rather than take responsibility for the current mess at HP which seems to be a rudderless ship. Is it any wonder that nobody wants to be seen wearing an HP employee badge ?
What HP needs is someone who can lead by example. They need both an innovator and someone who share his/her excitement for the future of the company. I have an HP printer and like it very much but if you ever need help or tech support for your printer trying to navigate HP’s tech support maze is almost impossible without a lot of time and patience.
HP has become too much of a corporation and lot less like an innovative company. My guess is that people spend a lot of time in meetings rather than actually doing real work that adds value to the company. HP laid off a massive number of workers. CEO Meg Whitman and crew have laid the blame on employee costs such as their salaries. Employees say the problem is one management blunder after another.
Around March 13, HP had an all-hands employee global webcast where Meg Whitman made a few statements that revealed a complete lack of strategy, and total focus on Band Aid fixes to staunch investor concerns and HP’s reputation,” one source told us. “The one statement that caught my attention was ‘When you have a 10% increase in costs and zero revenue growth, that is no way to stay in business. Services are HP’s biggest problem and we must immediately address it.’” Employees say that the reason HP ES has had no growth is because it’s had no leadership.