Documente Academic
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By: Omar Shams, Ehab Shafei, Walid Sobhi, Ahmed Abdo, Yasser Saleh
Arab Academy Graduate School of Business (AAGSB), Master of Business Administration program (MBA),
OBJECTIVE
Understanding the nature of transformation leadership and its Role in HP Corp.
By:
1) 2)
Exploring the HP Corp. Background. Exploring the Role of the transformation leader (Carly Fiorina) in forming the New HP Corp.
3)
An American information technology corporation headquartered in California. One of the world's largest information technology companies. Specializes in developing and manufacturing (personal computing devices, data storage devices enterprise servers, printers and other imaging products as well as networking hardware and designing software).
Mission:
Vision :
Profit Employee commitment Growth Field of Interest Customer loyalty Market leadership Global citizenship
Future is Worldwide, connected, continuous, secure computing through automated data centers, Power of digital technology in low-power, low-cost, lightweight that it could display multimedia information in formats as small as a watch or as large as wallpaper
1935: Bill Hewlett & Dave Packard graduated from Stanford University. 1939: Bill and Dave established HP with capital of US$538. 1947: HP was incorporated. 1957: HP shares went on public. 1958: HP created Dymec company, to specialize in digital equipment. 1961: HP purchases the Sanborn Company.
1963: HP partnered with Sony and the Yokogawa companies. 1966: HP Laboratories is formed, which become Agilent Labs splitted in 1999 taking all computer business. 1985: Company establishes first hightech joint venture in China. 1986: "the HP.com domain was opened to help marketing their computers. 1989: HP purchases Apollo Computer for US $476 million.
1995: HP purchased Convex Computer. HP launches the Pavilion line of home computers in China. 2002: HP and Compaq merged on May 3, 2002; HPQ is unveiled as new stock ticker for combined company.
HPS: REVENUES
240 220 200 180 160 140 120 100 80 60 40 20 0 0.03 1960 0.165 0.365 1965 1970 3 1980 6.5 1985 42.9 80.1 145 233
Revnue ($B)
13.2
1990
25
1994
1997
1999
2002
2011
HPS: WORKFORCE
350,000 300,000 250,000 200,000 179,200 121,900 109,700 85,00091,500 57,000 325,000 290,516
Workforce
150,000
100,000
50,000
0 9,000 16,000 1,778 1960 1965 1970 1980 1985 1990 1994 1997 1999 2002 2011
HP Workforce
HP Workforce
3. 4. 5.
Contribution Superior Performance & Profitable Growth Responsibility to the communities Integrity and period Best results come when you get the right people, trust them, give them freedom to find the best path to achieve objectives, and let them share in the rewards
HP WAY: HR PRACTICES
MBO,
innovative thinking = higher productivity Decentralized Decision-Making Reassignment, creating loyal work force Careful Screening Management was part of the team Trust Problem solving teams insure information flows Job Rotation = Multi-tasking Flexibility, better communication Training in problem solving, team skills Group Incentive Pay small groups is effective
HP WAY: HR PRACTICES
Results:
Innovative HR system: 6.7% higher productivity High teamwork: 3.2% higher productivity High communication: 1.4% higher productivity
HP WAY: HR PRACTICES
Compared to Traditional HR Practices: Wage tied to performance appraisal Narrowly defined jobs Limited screening non-managerial jobs Tight supervision Little training Layoffs in hard times
There Are Several Stages And Things That Happened At Hp Over The Years. But The Most Significant One Was:
HP, the second largest computer company behind IBM High end server market was dominated by IBM, HP struggling to keep up HP was number 3, with Dell being the market leader and Compaq no.2.
Both HP and Compaq were struggling companies HP alone could not compete with Dell in the Low-cost, high volume PC market. Compaq wanted to achieve expertise in High end UNIX servers.
The company lost more money in the three years following the merger than in its entire previous history: more than $2 billion by the end of 2000. Compaq also lost its position as Americas leading PC maker, having been passed by both Dell and HP in the retail market.
PRE-MERGER: STATISTICS
As a result, HP was forced to cut jobs and also to ask employees to take unpaid leave, in 2000. By September 2001, HPs stock value had fallen to less than half of its level.
September 4, 2001 - HP and Compaq announced a definitive merger agreement to create an $87 billion global technology leader. Eights months later on May 3, 2002 HP and Compaq officially merge.
of HP.
Following an intensive search that involved lengthy interviews and a 900 question psychological test, Fiorina was hired as the CEO. Carly Fiorina has a silver tongue and an iron will. Fiorina not only brings leadership to HP but also savvy marketing and sales techniques.
Leaders create something new Dont fall in love with your product Competition requires risk-taking Ethics matter The 21st century is about brainpower
Networker Carly Fiorina is a brilliant networker. She is good at meeting people and making a positive initial impression. Analytical Thinker Carly Fiorina's strength lies in selling ideas. She is not good at breaking ideas down and looking at their pluses and minuses. Charisma Carly Fiorina is known for her charisma. She has a magnetic personality and is an electric speaker. Relationship Builder Carly Fiorina's strength lies in forming short-term relationships that are created by networking rather than long-term relationships that are built over time.
Fiorina and her executive team countered Hewletts and other shareholders objections with five key points:
1. Information technology industry rapid change and changes of new environment. 2. Comprehensive benefits and opportunities from Compaq merger.
While pursuing the shareholder approval of its merger, HP management issued several projections of anticipated growth for the various segments of the resulting combined company.
In deciding to acquire Compaq, HP would create a company with $80 billion, with over 155,000 employees with a presence in 178 countries. Managing this change Needs massive inspection and discipline, (Fiorina )
I used the phrase: We will over gun this, not under gun it. (Fiorina )
Due diligence is a term borrowed from the financial due diligence is a part of any merger or integration Process.
HP-Compaq Cultural Due Diligence is the process which analyzes key cultural domains that includes: Leadership and management practices, Styles, and relationships, Formal Procedures, Informal practices, Employee satisfaction, Organizational characteristics,
To liven up the core values of new hp, they developed: Fast Start: Two day business meeting for intact teams designed to speed execution excellence. Fast start provides the structure and content of every teams first staff meeting. It was designed to: 1. Provide directions and roles so that people can
execute effectively in the new company, 2. Engage managers and their teams in taking action to assure successful integration.
Fiorina and Capellas (CEO of Compaq) each selected an executive from their respective companies to co-lead the integration effort. Fiorina chose Harry McKinney (a longtime HP veteran who ran worldwide sales and marketing for enterprise accounts).
Capellas selected Jeff Clarke (Compaqs CFO), at that time Compaq's chief financial officer.
McKinney and Clarke assembled a 30 person integration team and set out to create and execute a plan to blend a single company out of two longtime rivals. Clarke and McKinneys team had grown to 500 members; by March 2002, it numbered >900. The group grew to 2,500 members.
Adopt-and-Go:
The Clean Team would do the research to make Product Roadmap a way of taking action that was fast and good enough help the company deal better with conflict
Launch-and-Learn:
The difficult job of selecting which executives from HP or Compaq for the top jobs at the combined company. HP released the names of the 150 senior managers who would lead the combined organization around the world assuming the merger became official
POST-MERGER:
The companys top and senior executives seemed to feel that the organizational integration of HP and Compaq had been a success.
The merger called for a consolidation of HPs and Compaqs product lines into four major operating groups:
services, imaging and printing, access devices, and information technology infrastructure.
Merger Integration Team Size: 1200. Both companies are in similar businesses: Combine Product road maps. They don't need two Unix or NT development teams15,000 Jobs Eliminated (HP:6000 , Compaq: 8500). Achieving the integration tied to peoples compensation packages.
Achieved merger-related cost savings of more than $1.3B annually. Restructured direct material procurement to save $450M annually. Consolidated multiple mfg sites achieving $120M in annualized savings. Achieved manufacturing savings of $200M annually.
The challenge HR faced was ensuring the best aspects of both companies were incorporated into a single new company culture focused on achieving business goals. The strategy for managing cultural change mirrored HPs proven change management way, with specific HR initiatives and programs tied to the five stages in management of change (MOC):
1. Awareness. 2. Coping. 3. Internalize and align. 4. Execute. 5.Reinforce and arrive
Based on:
Awareness helped to speed up and smooth the process of change. And employees to understand how their work contributes.
By Stabilizing and harmonizing two different plans, two different sets of practices, policies and procedures from two separate companies, multiplied by the 54 countries where they do business. By delivering an integrated set of HR plans, policies, practices and procedures.
Alignment of HPs strategies and individual objectives enables effective execution of those strategies and better understanding of how individual employees contribute to the business success. How?
the key criteria of the employee selection process which is peoples capability and performance related to the business strategy as well as peoples understanding of company culture.
New ways of motivate, review and reward in order to align Employees performance and personal objectives to the overall business strategy.
Drive change throughout the organization and to accomplish behavioural change swiftly and comprehensively using reward as the motivator.
providing managers standard training programme, online tutorials and e-learning training.
setting expectations, holding employees accountable and responsible, providing the tools and resources that leaders and teams need to drive these changes through the organization, and actively promoting and rewarding positive examples
job titles
job levels
pay/bonus mix structures retirement time-off health
benefits