Hewlett Packard CEO Scandal Coverups the Real Scandal

It took awhile however in a story published in The New York Times today we learn the real reasons Mark Hurd was fired as CEO of Hewlett Packard: few liked or trusted him. He focused on short term cuts to boost profits much of which he took while there and even more on the way out the door.  The board trumped up the harassment and expenses issues to cover up their cowardice and taking the hardline and being transparent about the  on going leadership problems at HP.  I suppose it will be easier to “forget” about his rotten management style and ability  if you obfuscate what it was. However the whole situation reminds me of so many of  corporate situations where the real issues are often not addressed and one cover up leads to another.  Can’t the titans of industry act with a bit more maturity and candor?   No.  Below are excerpts from the article in the business section of today’s NYTs.

“He was wrecking our image, personally demeaning us, and chopping our future.”

Are any of these firing offenses? They probably should be, but they’re not, not in the culture we live in. That is especially true when the leader who is busy chopping the future is also posting fabulous short-term profits. And, to give Mr. Hurd his due, H.P. after Ms. Fiorina was a place where the executives’ feet needed to be held to the fire.

Ah, but if you just whip up a personal scandal — make sure it has a little sex in it! — then you can get rid of your failed leader on the grounds that he “violated the company’s standards.” The world is full of imperfect people; if everyone who ever fudged an expense report or flirted with an outside contractor were fired, there wouldn’t be many people left in the American work force.

This is not to say that Mr. Hurd should be let off the hook for, in his words, failing “to live up to the standards and principles of trust, respect and integrity that I have espoused at H.P.” (Note, by the way, that he doesn’t concede that he violated H.P.’s standards of business conduct.) But a firing offense? Really?

On the other hand, putting up dazzling short-term numbers that have the effect of enriching himself while robbing H.P.’s future — isn’t that what a C.E.O. should be fired for? Firing Mr. Hurd for that reason, however, would have taken courage, something that has always been in short supply on the H.P. board.

One thing I found surprising this week was learning that to many H.P. observers Ms. Fiorina no longer seemed quite so bad. It was actually her strategic vision that Mr. Hurd had executed, I heard again and again. Her problem was that while she talked a good game, she lacked the skill to get that big, hulking, aircraft carrier of a company moving in the direction she pointed. Mr. Hurd was a brilliant operational executive, but had the strategic sense of a gnat, and knew only how to cut costs.

What H.P. needs in its next leader, Mr. House told me, is “someone with Carly’s strategic sense, Mark’s operational skills, and Lew’s emotional intelligence.” (Lewis E. Platt preceded Ms. Fiorina as C.E.O.)

That is a tall order, but not an impossible one. It is certainly plausible that the H.P. board can find such a person. Given its recent track record, though, don’t hold your breath.”

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One Response to Hewlett Packard CEO Scandal Coverups the Real Scandal

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