With HP formidable CEO Mark Hurd out at HP and no replacement in sight, it’s quickly becoming clear that the venerable company is in desperate need of direction. Although it’s still churning out profits for its shareholders, there is little debating that things would be better if a strong leader was back at HP’s helm. Hurd made a name for himself as one of the strongest and channel-centric CEOs the company has ever had. He made a point of regularly meeting with end-user customer companies at channel partner-hosted events. And he made bold aggressive moves to keep HP in the dominant position where it is, including acquisitions of EDS, 3Com and Palm. Regardless, Hurd is gone. And so far, HP has taught the tech world quite a bit about the company since he left. Many of the lessons are negative ones that the next CEO will need to address. But they are valuable lessons nonetheless.
Let’s take a look:
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It’s Lost
It’s hard to debate that HP is lost right now. The company had a strong leader in Mark Hurd that helped it lead the charge in the PC market and other markets. Now, the firm is looking for a new leader, while still facing the pressures of running so many different operations. And as the company’s inexcusable premium offered for 3PAR shows, the current leadership isn’t on Hurd’s level.
Things Can Run Smoothly Without Him
As troubling as HP’s leadership decisions have been, the company is still running relatively smoothly. There isn’t any talk of a mass exodus by customers, and for the most part, little has changed at the company since he left. That doesn’t mean that he isn’t missed—he is—but HP is so big, it can operate on its own.
Palm’s Vision Is Gone
It was Mark Hurd that decided to acquire Palm. And it was Mark Hurd that had the vision to acquire the firm when others weren’t sure about it. But now he is gone. And with it, HP has lost the vision that it relied upon. It’s showing that more and more with each passing day that it ignores Palm.
Dell Has A Chance
HP has shown that it has a soft underbelly. And Dell, arguably the company’s biggest competitor, has a chance to capitalize. Admittedly, that chance is quite small, since Dell is dealing with problems of its own. But with issues at the top of HP, the company has proven that with the right strategy, Dell can grab some valuable market share.
Acer Can Capitalize
Look for Acer to capitalize heavily on Hurd’s departure. Since HP’s CEO left, it has been focusing its efforts elsewhere. And by doing so, it’s leaving its position as the world’s largest PC maker in jeopardy. That might not matter in the coming weeks, but over time, Acer could very well capitalize.
A Replacement Is Hard to Come By
HP’s search hasn’t been going on for long, but finding a suitable replacement for such an effective CEO is going to be difficult for the company. HP is multi-faceted with all kinds of moving parts. Finding a replacement will be difficult. And until it’s successful at doing so, there’s no telling what could happen to its market position.
Smartphones Will Be Put On Hold
Expect smartphones to be put on hold until HP finds another CEO. As mentioned, the company’s desire to buy Palm was born out of Mark Hurd’s vision. That means that the current leadership is somewhat lost when it comes to the mobile strategy. Smartphones likely won’t play a major role in the future of HP until the next CEO decides upon it.
New Tablets Aren’t Coming
The HP Slate and a Web OS-based tablet were going to be made available while Mark Hurd was at HP. Because of that, it’s not a stretch to say that the company will be offering new tablets in the coming months. But beyond that, don’t expect new tablets. Current leadership has no desire to start something drastically new.
Some Divisions Will Be Neglected
Mark Hurd was a special CEO. He was able to manage the various divisions that make up HP with aplomb. But for most people, that isn’t so easy. And until HP finds itself a viable candidate to take over the company, it’s highly likely that certain divisions will be neglected. That’s not ideal, but it’s a reality.
It Can Falter
Going forward, the possibility of HP faltering is greater than it has been in years. Over the past few years, HP has done extremely well. Most believed that it couldn’t do anything wrong. But it looks like the company can falter, especially with its current leadership. That doesn’t mean that it will, but the possibility is more present than it has been in years.
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