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Product details
File Size: 5444 KB
Print Length: 404 pages
Publisher: Oxford University Press; 1 edition (November 1, 2016)
Publication Date: November 1, 2016
Sold by: Amazon Digital Services LLC
Language: English
ASIN: B01M5GSM2A
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#391,303 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
In Part I, the lead author explores several different, thought-provoking ways of thinking about strategy, including Packard's statement of the company's three principles (p 29.) He poses a paradox: "Messy Beats Perfection" (p 75.)Part II includes a chapter on each of the successive CEOs. A succinct and insightful summary of the external and internal situation that faced each CEO. Then an unflinching but diplomatic discussion of what transpired, based on interviews by the three authors with the CEO and other executives. Finally, an analysis and summary.(The chapter on John Young's transformation of HP from a collection of independent stand-alone instrument companies to an integrated computer systems company carries lessons for anyone involved in a business model and culture change in an organization of any size.)Part III, by the lead author, discusses Meg Whitman's strategic moves and "Why strategic leadership matters." Each CEO's performance is again discussed on several different dimensions. A table summarizes each CEO's initial conditions, key strategic actions, changing context, and unresolved challenges (p 344-345.)Minor distractions: The reader learns to float through footnote superscripts, homonyms ("tenant" instead of "tenet" etc.), odd capitalization, and much repetition. (It appears that parts of the book were dictated and transcribed.) None of this detracts from the value of the content.One topic is not discussed: When a tactic sneaks up on you and morphs into a strategy.The chapter on Carly Fiorina's tenure touches on two tactical decisions that, IMO, continue to have major long-term strategic consequences:Bill and Dave's profit-sharing plan for all employees, which was based on overall corporate profit regardless of your business unit, has been replaced by an "employee performance bonus" plan that not only "reduced the amount normal employees were paid under most circumstances" (p 190) but, more importantly, incents people to move out of innovative, startup, or turnaround operations into the businesses that are currently the most profitable.After a painful mass layoff when WWII ended, divisions, teams and people were generally redeployed, rather than laid off, as business needs changed. (One division GM called us all together and said: "It was a bad idea. It was my idea. Now we are going to do something else." We went on to build a billion-dollar business.)Right from the start, HP made it clear that the Compaq merger plan included laying off 12,000 people. The strategic consequence: Rather than being a one-time tactical move, layoffs instead of redeployments have become standard HP practice: Hurd 15,000 (p 231); Whitman 30,000 and counting (p 322.) This strategy incents employees to stay in safe jobs.In thirty years, I worked on projects ranging all the way from astounding successes to massive failures. I doubt that I would have joined some of those projects if I had thought that the individual contributors would all be fired if the project failed. (BTW, the one that appeared to be a sure thing was a huge fiasco.)In summary, this book is thought-provoking and useful, regardless of one's interest in HP..
A great read and a frank and honest assessment of the forces and decisions that shaped HP into a global powerhouse. I worked there for 20 years and got a serious dose of the best corporate culture in Silicon Valley. Other companies should pay attention here.
Review of “Becoming Hewlett-Packard: Why Strategic Leadership Mattersâ€This is a book that belongs in the library of anyone interested in the history of Silicon Valley. In particular, it contains lessons that I think will be valuable to the leaders of Google, Facebook, and other growing companies that are led by founders, just as Hewlett-Packard’s was for the first 30 years of its life (1939-1978)..In my opinion, the best parts of the book are chapters 3 through 9, which are devoted to the actual history of the company, namely, from 1939 to the present. These chapters also describe the major objectives that governed Hewlett and Packard’s management of the company, namely, (1) Products and services that make a major contribution (“that provide the greatest value to customersâ€);(2) Self-financed growth (this drove a lot of the business thinking of the company and kept HP from buying market share, or seeking growth for growth's sake as long as Packard was involved);(3) long-term profit was very important because it was the best measure of the contribution of HP’s products, and was required to finance growth). Hewlett and Packard also clearly defined the criteria for entering new businesses (this was important because divisions created a lot of the new businesses, and this helped them think about which ones were appropriate).The authors conducted remarkably many interviews with the CEOs who succeeded Hewlett and Packard, and with other key players within the company. The chapters make clear the difficulties the company faced when it ceased being solely devoted to test and measurement equipment, and became heavily involved in the computer business. The chapter titles give an idea of the changes that occurred under the successive CEOs after Hewlett and Packard:: “4. John Young Doubles Down on Computersâ€, “5. Lew Platt Pivots HP Toward Commodity Businessâ€, “6. Carly Fiorina Drives HP Toward Scale and Scopeâ€, “7. Mark Hurd Relentlessly Manages for Resultsâ€, “8. Leo Apotheker Intends to Revolutionize HPâ€, “9. Meg Whitman Resolves Strategic Integration Challenges: from Better Together to Splitting HP in Twoâ€.The above chapters are in Parts II and III. Part I was difficult reading, at least for me. In my opinion, Part I and chapter 10 should be merged and placed in an Appendix. They contain generalizations based on the history of the company, and are not necessary to read in order to understand the other chapters.Minor point: When I first saw the book, I thought it was a history of the early years of HP, from its founding until it first became nationally known. But then I found (pp. 38-39) that it was a term that had been coined by the Nobel-Prize-winning chemist Ilya Prigogine to describe certain processes in nature. I grew tired and somewhat annoyed at its endless repetition in the above book. I felt that the terms “evolution†or “growth and development†covered the same meaning.-- Peter Schorer
I bought this while I was listening to Webb McKinney and Philip Meza discuss the story told in the book on stage at the Computer History Museum. That was riveting. Unfortunately, the third author seems to have completely lost the plot. He is responsible for gems such as the following single sentence(!) from Chapter 2:"The chapter ends with identifying a paradox in the history of becoming, elucidating the antifragility of HP's adaptive capacity in relation to evolving strategic integration challenges top management faced in the company's multibusiness portfolio at critical times in its history, documenting the role of tension in its internal ecology of strategy-making, and highlighting the existential situation faced by HP's successive CEOs in contributing to the company's process of becoming."Gack.It's quite possible that Part II is better, but I've lost enthusiasm for continuing at this point.
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