Hart governance "disease" Hewlett-Packard

Stormy from a year ago, revenue this year, the first challenge, Mark. Hurd HP hand how the magic of what changes?

HP Global CEO Carly times all the office equipment in, Mark. Hurd era HP quietly changing. Over the past year, if only from the California Office of decorative HP Global CEO changes, you can not see this famous company which is in change.

June 21, San Jose, California, sunny, industry analysts from around the world excitedly gathered here. When Mark. Hurd (Mark.Hurd), who rarely show their faces in the HP Global CEO took vigorous speech to Taiwan. No rhetoric and inspiring strategy, but on the number of industry analysts interested in doing the serious note, write "simplify," "reduce costs" These words may seem boring.

5 at the end of this year, investors in the stock price of HP from June 2005 to 22.38 U.S. dollars to 32 U.S. dollars pushing for more than 11 months, up nearly 50%. HP's first quarter 2006 revenue of 22.7 billion U.S. dollars, second quarter revenue of 22.6 billion. Analysts expect fiscal year 2006 (2005 11 1st - October 31, 2006), Hewlett-Packard's revenue will reach 91 billion U.S. dollars, while Big Blue IBM for the sale of 11 billion U.S. dollars turnover of PC business 2006 will only reach 90.5 billion U.S. dollars. "Business Week," the author said, countervailing, IT giant will usher in a new maximum, it is HP.

However, in the year and a half ago, HP shares have been declining (from July 1999 to February 2005, the stock has shrunk 63%), the proposed sale of PC business, separating the voices of the printer business continued, star female CEO Carly whirlwind forced to resign. For a time, the world's second largest IT company Hewlett-Packard in a precarious position.

April 2005, from NCR's unsung Mark. Hurd took over Hewlett-Packard Global CEO of Sceptre, compared to glamorous predecessor Carly, Mark. Hurd stable has had some "boring." However, heavy flow management, the HP of the business is recovering, even compared to analysts Hurd IBM back from the brink of death and the location of IT King Gerstner. Well, Mark. Hart will lead the historical peak HP rushed it?

Accountability and Execution

"You tell me, if this is done, who should I pinch the neck?" A year ago, Mark. Hart's visit to China when listening to the reports, asked a senior Chinese.

Time really do not know, "pinch" Who's neck. Carly the era of the matrix management structure, this popular architecture has many advantages, such as improving the capacity of the sector in coordination, but equally obvious defects, including multiple leading cause is unclear, the responsibility to promote each other. Hewlett-Packard from the formation of a concentrated expression in the sales department, established in 2004 is responsible for HP's enterprise customers (including SMEs) in the sales department (CSG), is responsible for TSG, PSG, IPG three major product groups-business sales, personal consumption customer is still by the (IPG) is responsible. This "one face to face customer" model looks very nice, actually operate has many drawbacks.

As the sales and product responsibilities between the departments did not completely clearly defined organizational structure that has a high coordination costs. Each needs to make a decision in several departments within the company to meet to discuss the final who also Zuobulezhu, customers complain about slow response. Moreover, if a problem occurs, the parties

Pass the buck to each other face, can not find people to come and wrench.

"You know, with a lot of people talk, to discuss decisions are tired of." Mark. Hurd on June 21 analyst meeting to explain the reasons for HP's restructuring.

July 19, 2005, spent a few months after about the status of HP, Mark. Hart poked a sword. Announced the layoff of 10%, to just merge near IPG and PSG, which is separate to the original cross-platform business sales - Business and Public Utilities Group (CSG) 1 涓?than sales directly into the enterprise computing and professional services Group (TSG), Imaging and Printing Group (IPG) and information products and business channels Group (PSG) of three independent business groups, which greatly increase the business unit leading the company's control of power resources.

Mark. Hart's effort to reduce complexity and simplify the company's operations to customers from the market and more recently, while decision-making to customers and markets from the nearest person. June 20, 2006, HP further subtraction and decentralization, announced the closure of global operations (global operations unit), and the department of logistics and procurement functions to the three business groups (IPG, PSG, TSG) in. After adjustment, the three major business groups across the board in fulfilling its business, the commitment to supply chain management, procurement, logistics, logistics, order management and customer relationship management functions, including a wide range.

"HP's goal is to improve efficiency and reduce level. Previous products, consulting services and other departments have reported to me, now they can be reported to the local general manager of the decision. The original and the bottom I have too many levels of employees, now only two. "Mark. Hurd said.

Mark. Hart's goals achieved to some extent, the right to make the decentralization of business units to become flexible, faster decision-making. HP's Ann Livermore, executive vice president, said the usefulness of cost of sales over the past decided to open a few weeks of the meeting, and now I just call department staff to sit down and discuss a simple decision can be.

While decentralization is a clear responsibility. "Accountability system" began to HP to implement, some people accountable for results. Ann Livermore, said the accountability system can be in the financial statements and decision-making to see its benefits, responsibilities obvious, we all departments accountable for results. "You done well, is going up; do well, new ones who do." HP China, said a high-level "accountability system" introduced to Carly stop the execution once the problem has been a degree of resolve.

If Carly Compaq merger four years ago, to expand the scale of HP is a huge gamble, then continue with the Hart bet to some extent. He did not sell the PC sector, or spinning off the printer, "bigger and stronger" and Carly strategy does not change, only thing ---- Mark Hurd to strengthen the implementation.

One just from Hewlett-Packard China, returning to high-level Asia-Pacific office, said Carly era is constantly making plans and strategies, followed by the old strategy of throwing in the drawer again in limbo, the new program has come in constantly. Instead, Hart is holding a program that, hey, guys, continue to implement this.

Cost, cost, or cost

HP PSG Group second quarter of 2006 increased 10%, operating profit was 248 million U.S. dollars, accounting for 3.6% of revenue, significantly more than last year 147 million U.S. dollars of operating profit (2.3% of total revenue). In fact, due to price wars, HP's PC products, prices have been declining. Prices down and profits up forming an interesting contrast, the only explanation is that HP is a good control of costs.

HP estimates fiscal 2006 revenue of 91 billion U.S. dollars, expected profit of 80 million, most of which cost control cost savings. "HP is also the cost of 83 billion U.S. dollars, can be plenty of room for the operation." Mark Hurd not meet the current cost situation.

Mark Hurd is a cost-control expert. Able to stand out from the many candidates to become the global HP CEO, the board saw in it the execution and cost control capabilities. After taking office, hired Mark Hurd in his old acquaintance ---- NCR former Dell CIO Randy Mott as Hewlett-Packard's CIO. Mott action very soon, in-house information technology, the HP's internal IT this year lost over 500 projects, saving 200 million U.S. dollars in expenses, but still HP's internal information systems to provide the best information available to the company staff, to ensure business growth on the demand for information.

May 18, 2006, HP announced a global integrated into 85 data centers in Atlanta, Houston, Austin's six main sites. These three cities have two sites in each city, an area of 50,000 square feet, 15 miles away. The site will be used to support HP's own server and storage infrastructure. Data center consolidation, as HP saved billions of dollars in IT spending.

Organizational structure in July last year, after adjustment, HP cut by 1.5 million people. Hart hopes the 2006 fiscal year the company to save 900 million to 10.5 million cost. These cuts in Europe have been challenged, and that contrary to "as important as employees and profits," the Huipuzhidao, but Mark Hurd said HP's new position also needs people who still recruit people.

HP hopes to become the best consulting services company, but by the end of 2005 Mark Hurd, HP's consulting services to slow down or even give up some of HP's consulting services orders. Already received orders for consulting services, HP and the customer to re-discuss, if consensus to do it, or give up. Mark Hurd said, should pay attention to costs, not additional staff, but to reduce staff, more standardized. Cost of cost should be reasonable, then scale to win. HP's consulting services this year only 1% -2% business growth.

Hurd, the original brand advertising "HP +" no longer appears. Brand advertising in the media to reduce the volume. Some analysts said that Hart had the money to go to product sector and promotion of the client.

HP and even save money in real estate. HP is a real estate big, some small companies, including HP's acquisition of its office space, put the focus on office space, and then release a number of small, decentralized offices, from real estate to save money, make money to promote the company's development.

"On the one hand to spend money to promote business growth, while reducing costs money." Said Mark Hurd, business growth, cost control, asset, financial and personnel in these three areas constitute the Mark Hurd's "Golden Triangle." "If the revenues and costs both at the same time to increase, decrease in profit is not normal."

Mark Hurd promised not to reduce the cost of R & D last year, HP spent about 35 billion dollars to research and development, which accounts for 4% of annual revenue, a figure caught in its rival IBM (around 6%) and Dell (only 1%) between.

Cost-effective control, making HP's earnings margins increased substantially. Wall Street investors and analysts are very satisfied with the doer, not indiscreet remarks on HP's business.

Hart's "shortsighted" and challenges

Mark Hurd does not like exposure to the spotlight, took office more than a year, few interviews with the media, "HP does not need a 15-minute news broke." Mark is also not as good at inspiring Carly. Many analysts in the face of the meeting, Mark Hurd always the case at the end: "We still have a lot of difficult things to do."

But his partner said Ann Livermore, often with partner Mark has a very good meeting, and at the party to the partners were very excited, very inspiring.

Mark greatly on the customer's attention more than his predecessor. HP senior vice president of sales Dave Booth said, "When there are urgent needs of customers, I will pick up the phone call the office directly to Mark, if he is not, and customers together, he will immediately stop working with my hands together to find ways. important is that I can find him, and not through other channels. Mark is our chief sales officer. "

June 24, Mark led a global high-level visit to China on June 29 quietly leave Beijing. In addition to essential public appearances, the mark most of the time spent sitting together with the Chinese team is very careful and detailed analysis of every detail and see the situation in China, business operation, and what there is still more growth, the possibility of obtaining a greater market share and so on. "We said to grow so much this year, Mark will ask can not have more growth?" Zhuangzheng Song senior vice president of HP China, said in an interview.

Currently, HP's revenue, 65% came from outside North America market. China and Brazil, Russia, India (BRIC) are kept as "BRIC." IT market growth in these countries faster than the United States, expects the global analyst conference, HP China President Sun Zhenyao and head of the other three countries presented their respective areas of jurisdiction with the situation. According to Sun Zhenyao introduced since last year, HP's revenue growth rate in China was 20%, the next two years, China may become world's second largest after the U.S. IT market.

In the eyes of Ann Livermore, Mark is very concerned about the results and the actual figures to win. "He's very realistic, more concerned about the present and near future, thinking about how the strategy is a step forward, uncertain long-term goals too." Mark Hewlett-Packard staff to China, after the speech, an ordinary employee about his impression of the mark.

Carly is the dream of 90% and 10% in operations, Hurd is just the opposite. As former IBM CEO Lou Gerstner, like Hart that "vision" and strategy elements required in the company came in last. He believes the biggest challenge now is how to implement a thorough strategy to achieve goals. Some analysts believe that the best is Carly (good at developing strategies) and the Hart of the advantages (good execution) can be combined.

Mark HP's business is moving toward recovery under the adjustment. TSG group led by Ann Livermore profit situation is better. Had a little "virtual" AE strategy (Adaptive Enterprise strategy), is gradually compacted. Over the past two years, HP 11 management software company, has acquired a number of regional service company, enhance the Adaptive Enterprise strategy. Last year in April, Todd Bradley, palmOne charge from HP's PC business. Over the past year, PC greatly enhanced the profitability of the business. Vyomesh Joshi helm IPG (imaging and printing group) is to print from the printer business services business.

HP's product line is the longest IT companies, from high-end services and servers, PC products to the printer product, but compared to IBM to focus on high value-added enterprise applications market, HP's business is difficult to generalize. HP's next to go where, to be like GE company? Hart did not give us answers. Perhaps he should consider that this is not a current problem.






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Fu Chong: the general trend of those who know great things

An old saying: "Yi-who seek good situation." Generally successful world gather that those familiar with the road to seek potential. Winner is always the minority, because the situation is not easy to seek. Seek first to know the situation the situation can see clearly and judge accurately, but also in the right direction.

Inner Mongolia Yili Industrial Group Co., Ltd. the former CIO Fu Chong great emphasis on the "Power" of importance. I very much admired his modern management guru Peter Drucker (Peter F. Drucker) a point of view, "doing the right thing rather than do it right (Do right things or do things right)". Fu Chong also believed that only grasp the general trend can be successful.

Inner Mongolia Yili Industrial Group Co., Ltd. the former CIO Fu Chong

Out of IT is key

Chong paid a former biochemistry, was the industry's position is well known Inner Mongolia Yili Industrial Group Co., Ltd. CIO. Erie's paid leave Chong, now with a partner set up Beijing Branch Bank Financial Investment Limited. As the CIO and Development Centre on the "CIO transformation" of the topic, we find him. But he said his job now is not the transformation, but regression. Because, his favorite, not their professional - biochemistry, would not let his fame career "CIO", but a financial investment.

From October 2000, the Fu Chong was officially appointed as the Yili Group CIO. This self-proclaimed "Even computers are not" people, but the group CIO positions for nearly five years. The end of 2003, was also the year when a domestic media as the "Top Ten Outstanding CIO". IT technology will be a lot of people off who do CIO, but disagree with, but Fu Chong said, "most of China's CIO impossible to escape the feeling of IT, these people are not real CIO, IT director only. Even the head of the class president, is head of IT. "

Fu Chong that, "CIO this post, is the tube thing tomorrow." Is from this understanding, CIO of this fact, and his role since he first entered the Erie strategic planning group in contact a lot of similarities. Because Fu Chong early work experience, enabling him to proceed from the perspective of group strategy for information technology planning, they can stand the perspective of business IT. So, pay very confident Chong said: "Ely over information work, I have not had any problems in decision-making."

Many of China to the enterprise CIO to do the project in the time left over by this company, because of their professional background, it is easy to use enterprise IT point of view of information technology. Therefore, they succeed in doing for a long time CIO's seat, we will certainly jump out. Fu Chong said: "CIO to get out of IT to see IT. There is a saying to lead to far ahead. In fact be reversed, stand farther away to see high. You have to stand outside, to see more Where is the place. "

A transition for a CIO, the Fu Chong believes that technology-oriented CIO is very difficult transition, even if the difficult transition, but also not break the circle of IT. "Because of a very serious career path dependence. And I was able to easily forget the role of the CIO, because the CIO did not my career orientation."

For the transformation of the subject, Fu Chong believes that each person's way is not the same, according to the wishes and characteristics of individual decisions. He said: "such as CIO to do this job, it is difficult to do for a long time. Because the Chinese company's CIO, this position is often defined as a family on a technology. While the speed of technological development and progress is very fast. Simply compare the technical ability to carry out then, a four-year-old man how to contend with young people, the value of your expression? to 40 age technology to do but do young people do not understand business. the final decision up his own business does not know that business more difficult. "

Find a business trend

CIO for those who want to do this post for those who long to the management approach to business, is their only way out. Fu Lee said: "You have to know what business trends, business trends based information development plan formulated to meet the enterprise business needs. Otherwise, the information must have done well."

For example, he said, everyone is a little different rules, two people often fall apart after the wedding that they violated a basic rule, want to integrate the two laws. Two people were brought up in two families, such a simple integration is impossible. Only one way is to cover, find the law to cover more the two of them little laws. Law is like a small bottle of water, different water molecules to different direction. And this bottle is the big rule, as long as you take the bottle away, inside the water will be able to follow.

Find the general trend of the industry

Some of those who want their restructuring transition plan to open a new path, the so-called Blue Ocean. In fact, this and bring extra profits to pursue innovation rate is the same reason. With the spread of innovation in the industry, the resulting excess profits will disappear. All the Blue Ocean eventually will become the Red Sea, but the length of the problem. In this, Fu Chong pointed out the key to victory is issued after the first system to be able to anticipate the Blue Ocean will be here, first enter.

Fu Chong has been studying hard the past two years, "emperor after." From the "emperor after" not seen the medical, but the nature of internal relations. Fu Chong said: "I think the business is the same trend requires the ability to see clearly. On the general trend to have pre-judgment ability, and this ability is not innate to judge is the need to accumulate a lot of knowledge and experience to do after the judge. "he said, the ancient" Five Classics "in writing, nothing less than the word" law. " As long as the law can find a large, late-first system will always, always waiting for the opportunity in front of the arrival. Fu Lee said: "For the law of the master, if not 100% can do it. But as long as can be 90 percent, will be successful."

Fu Chong admitted that "Canon of Medicine" This book changed his life at age 40 is very large. "I did not deliberately change what, change is only my logic." He said, "I do one thing each would like the matter what the next step. Think back several steps, or even years."

Interest in the successful transformation is

Entrepreneurship is not an easy task. First of all, is facing the changing role. Previously working for others, no matter how the performance of the company, monthly paychecks. Companies do not pay wages, big deal for other companies, still working to make money. But not the same after the start, have been a boss, monthly wages and the cost of venue rental fees are. Fu Chong's company now has more than 80 employees, only rented in Beijing several offices, and these costs are only part of an annual fixed expenses. Would like to start the CIO, must think about whether they can withstand such pressure.

For all those who want to transition, the first important is to turn safe areas. Fu Lee said: "No one must first look at his transformation where to turn, many people in the transition to go to the fire pit." To transform successfully, the secret is simple interest. Successful transition of people who are interested in doing their own thing. Fu Chong said: "I now do, in fact I am even more enthusiastic about the reunification of the things. In the Erie, I would like to do investment." He believes that interest is the key to success, if not interested, you may be able to do one , two business. But over time, it is definitely impossible.

"Looking north" is not a joke

"Own decisions" should be a common motive of entrepreneurs. Fu Lee said: "In the past, said the leadership of the east, I have to go east; leadership that Western, I have to go west. Now can I go to east go east. May fail, it does not matter, I can do something by my own thoughts. People say 40 is not apprenticeship, my four-year-old business, and a difficult time, especially difficult, this is ups and downs that only you know. but as long as the slightly small success will feel very happy. that kind of fun is far from original, to be a what the project, the boss happy, praise you and send you a point bonus. sometimes to do business, difficulty and pressure are particularly great, but I am particularly happy. because I know who I do not need to consult again, who again reported to. "

Erie has five years left to pay the Chong at this time just experienced Sishibuhuo of confusion. Now Fu Chong, easy to live in particular, on the word "simple", business is also simple. Fu Chong pursue Going to work, "this is you is you, not your is not you."

Fu Chong has done so much job, so many trades, in fact, no one is going to school when he learned. For the future of professional ideal, the choice to pay Chong actually is "back to a university teacher." Although they are a teacher, but this was his first after graduating from university teaching profession is different. He said: "I particularly want to accumulate over the years to communicate with colleagues, which will help them a lot. When I stood outside watching the time, feel that their wrong direction. Do the right thing than doing the right things forever are important, the direction is not correct, means no line again superb. so if there is such a chance, I want to do is to bring my years of experience to share with you. "

Years, Fu Chong has been busy, "busy looking for the North." Seemingly simple sentence, in fact, many people do not know their life, "North" where it is. Fu Lee said: "Now that he's 'North' about where, and where there may be no clear, there may be some way do not know how to design, but I will work hard towards this direction."

In between the ideal and the reality is always to seek a balance, a different time has different balance. Fu Chong said: "I think, no matter what, make them smile the most important, as now. Because I do basically the idea as I go forward, which makes me great satisfaction. My people do not desire for power, but the desire for achievement particularly large, so bring the joy of achievement give me far more than money and power. "







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