When CEO Leo Apotheker joined HP in November, he was expected to bring a fresh new look and feel to the business. Given his recent history as CEO of SAP, it seemed like the perfect time for the company to improve its standing in the software business and become a major force in the enterprise. At least when it came to the board’s feelings towards Apotheker, he seemed like the perfect choice. But in just the last 10 months, it has become quite clear that Apotheker isn’t ready to be leading as sophisticated a company as HP. His background in software did not prepare him for success in the PC business, and when it came to consumers, Apotheker seemed lost. Whereas Mark Hurd had some success, Apotheker has had none. And now, it’s abundantly clear that something must change. According to recent rumors, HP’s board is preparing to remove Apotheker. If it follows through with that plan, it would be a smart move. Simply put, Apotheker is not working out as HP’s CEO, and the time has come to find a suitable replacement.
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Look At the Stock The biggest problem for HP right now is its stock price. The company’s shares have been plummeting as of late, and Apotheker has been totally unwilling to stop it. Considering CEOs are judged by their stock price, it’s hard to see why Apotheker should be allowed to stick around.
The PC Business Is Important Over the years, the PC business has proven integral to HP’s operation. In fact, it has been the backbone of its business. And yet, under Apotheker’s leadership, HP is planning to spin off its PC business, called the Personal Systems Group. Does that sound like a good idea? Not a chance.
He Doesn’t Know HP In order to be a successful CEO of HP, it’s important to understand the company. And it’s quite clear that Apotheker just doesn’t understand HP. He doesn’t see the value of the PC space, and has failed to see value in WebOS. Apotheker is trying to create a new company out of HP, and that just isn’t working.
The Board Doesn’t Have Faith According to the latest rumors, HP’s board of directors doesn’t have too much faith in Apotheker. The rumors suggest the board is trying to replace Apotheker to find someone who might be able to do a better job of managing the company. If HP’s board doesn’t have faith in Apotheker, one thing is clear: he has to go.
There’s A Lack of Vision The problem with Apotheker is that he doesn’t appear to have a vision. Sure, he wants HP to follow software and solutions, but that’s not enough. HP is in desperate need of someone who has a vision for what the company is, what it should be, and where it should go in the future. Apotheker is not that person. And that’s a problem.
Giving Up Too Early When HP announced last month that it was discontinuing its TouchPad, the company made a major mistake. The last thing HP should be doing right now is giving up on a market, like tablets, that has proven so important to so many companies. The tablet space is still in its infancy. The fact that HP was so quick to move beyond that is curious, to say the least.
What Will Come of WebOS? HP’s mobile operating system, WebOS, has been viewed by many as a key component in the company’s ability to take on Apple and Google in the marketplace. And yet, it appears that HP has all but moved on from WebOS. In fact, the company said that it will evaluate options to see what it can do with the OS. Apotheker’s decision to turn its back on WebOS is an odd one that can’t be overlooked.
He Turned His Back On Consumers Although Apotheker would like to see HP become a totally enterprise-focused company, the firm caters to consumers. The only issue is, Apotheker has turned his back on consumers by planning to spin off the PC business and focusing on software and solutions. HP has a long history of delivering high-quality products to consumers. It’s too bad Apotheker doesn’t want to see that happen any longer.
The Enterprise Is Concerned By engaging in so many different strategies, eliminating the TouchPad, and planning to spin off HP’s PC business, Apotheker has become a big question mark for enterprise users. And now, the corporate world is concerned. Will HP’s new PC operation offer the right devices? Will the company’s enterprise solutions be prematurely discontinued like the TouchPad? The IT industry is unsure, and that could hurt HP.
The Future Doesn’t Look Bright Let’s face it: HP’s future with Apotheker in charge doesn’t look all that bright. As mentioned, he seems lost as HP’s CEO, and it’s becoming clearer that he doesn’t have the right strategy in place to fix the company’s many problems. What’s more, HP’s key stakeholders have little faith in his ability to fix things. All that could (and perhaps, should) be enough to see the board terminate Apotheker.
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