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The H-P-Compaq Mess Isn't All Carly's Doing
The Wall Street Journal ^ | May 21, 2002 | Michael Malone

Posted on 05/21/2002 9:52:49 AM PDT by spald

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Boy, there's some pretty fine mismanagement at HP.
1 posted on 05/21/2002 9:52:49 AM PDT by spald
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To: spald
Three words - morale here sucks. (I'm a contractor at HP, not even a "real" HPite, and I can see how bad things are...)
2 posted on 05/21/2002 10:03:11 AM PDT by billsux
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To: spald
HP's apparent near-demise (though Carly may pull a rabbit out of her hat, it sure doesn't seem likely) is going to eventually cause even further consolidation via market share in the PC biz. After Gateway, HP-Compaq, and Dell on the PC side, who's left?

PERHAPS this consolidation, plus Linux (if it ever becomes useful to the average user), will make the hardware guys more resistant to being run over by Mr. Gates and Co. What's Bill going to do, make his own PCs (don't put it past him).

3 posted on 05/21/2002 10:07:39 AM PDT by litany_of_lies
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To: spald
>Instead, he stepped down, handing over the keys to the most complex corporate culture on the planet to a newcomer constitutionally incapable of understanding it.

One thing that gets lost in the "Let's hate Carly" chanting is that, prior to Carly, HP had changed from a nuts & bolts technical company run by buttoned-down, common sense based engineers to a company where the management embraced every New Age, West Coast management cliche imaginable. Corporate decisions weren't being made by executives, but rather by "teams" made up of employees from all levels of the corporation.

It seems clear -- to me, an outsider -- that the anti-Carly hatred isn't hatred built on anything rational. It's typical "Oh, oh, back to the real world" hatred of an attempt to bring reality back to yet another stupid corporate adventure into "Employees Rule" corporate socialism...

Mark W.

4 posted on 05/21/2002 10:11:07 AM PDT by MarkWar
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To: billsux
Carley has her shot, but I'm one of many who think it's too late. HP may be the Wang of the decade. From billions to zero in a few years. I guess there will always be a market for cheap printers, so perhaps they will survive as a shadow of their former selves. I can't imagine any IT director buying new HP Unix servers right now, mabye if it's a capacity expansion, but not for a new application. Too muddy a product roadmap. Easier to go with IBM or Sun or Dell.
5 posted on 05/21/2002 10:11:58 AM PDT by Jack Black
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To: spald
It may not all be her doing - but a lot of it is. HP was drifting a bit, but not sinking (which IMHO is the current situation). I left the company almost a year ago after 7 years - HP has many good people, but the executives are going to trash the place. I personally hope that HP can survive Carly and bring back the fire and innovation that was there before her as I still own stock - but it may just be a pipe dream. I pray for my former coworkers that I'm being overly pessimistic...

FRegards,
PrairieDawg

6 posted on 05/21/2002 10:12:00 AM PDT by PrairieDawg
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To: litany_of_lies
Sony has a decent market share. Toshiba does well in laptops. Europe has some vendors that aren't here. There is a strong tier two of PC vendors like Micron and up and coming new guys like Alienware, and there are tons of mom-and-pop chop shops that build great systems. Plenty of competition and anyone can enter the market who wants to, just like Dell did a decade or more ago.
7 posted on 05/21/2002 10:14:18 AM PDT by Jack Black
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To: spald
The latest EETimes has an article about the fact that thousands of Electrical Engineers and Software Engineers are soon to be departing the company in waves. The flood of talent leaving HP will serve to drive the final nails in the coffin of what was once a great company...
8 posted on 05/21/2002 10:18:15 AM PDT by fogarty
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To: litany_of_lies
What's Bill going to do, make his own PCs (don't put it past him).

Take a close look at the Xbox. It is a cheap PC of sorts. I haven't seen one with a 1024i TV hooked up, but he owns WebTV and Xbox so he *is* already selling "postPC" computers. 3 million of them so far. (PS2 has sold 30 million, he has a way to go to hit his desired position of #1). It has DSL capability built in, he's launching a private network for them this week. He's still ahead of the next curve. Amazing.

9 posted on 05/21/2002 10:18:45 AM PDT by Jack Black
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To: Jack Black
HP may be the Wang of the decade.

It's a shame. I always like playing with my Wang, too.

10 posted on 05/21/2002 10:20:53 AM PDT by general_re
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To: MarkWar
"It seems clear -- to me, an outsider -- that the anti-Carly hatred isn't hatred built on anything rational. It's typical "Oh, oh, back to the real world" hatred of an attempt to bring reality back to yet another stupid corporate adventure into "Employees Rule" corporate socialism...

I interacted with them until about a year ago and didn't get this feel. I was always impressed by the professionalism of the people I dealt with, good solid engineers and managers. I would have described them as "plodding" not "socialist". Some of what you describe may have taken place though.

In any case lets stipulate that HP was off track, I think they were. The question is "is Carley moving it in the right direction". The only reasonable answer is: No. Stock, products, employee retention, customer satisfaction, the street ... every indicator is bad.

Maybe they did need to be shaken up or changed, but the changes she has put forward have not worked and the company is far, far worse off than it was. It may not be recoverable. I think the board should fire her soon as a good will gesture to everyone who is still hoping they pull through. She has made herself too much of the issue for the company to prosper under her leadership. Sad, but she must go.

11 posted on 05/21/2002 10:29:19 AM PDT by Jack Black
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To: spald
Lessons from this mess:

Give me a break. You want a company as solid and good and run for decades by Ward-Cleaver-looking Purdue and MIT mofos with pocket protectors, to all of a sudden, be run by a girl? Right.

I have used HP stuff in the lab, at home, in the operating room, and by the computer, for years. It was good stuff, very thoughtfully engineered and made, and carefully presented in its documentation.

This girl couldn't program my HP-48G calculator, let alone some of the more complex HP devices.

And just to be hip and PC they let a cool girl run the company.

And, BTW, a dumbass girl who knows no technology, and who probably went to some ridiculous 1980s business school where they taught that the only meaningful thing companies and executives could do was merge.

The name Carly, by itself, should have disqualified her as a flaky product of the fad-loving, thought-vacuum, boomer culture.

All I can say is, hey HP:!! Smooth move, Ex-Lax!

12 posted on 05/21/2002 11:35:57 AM PDT by caddie
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To: MarkWar
It seems clear -- to me, an outsider -- that the anti-Carly hatred isn't hatred built on anything rational. It's typical "Oh, oh, back to the real world " hatred of an attempt to bring reality back to yet another stupid corporate adventure into "Employees Rule" corporate socialism...

Ever hear of Lucent Technologies?. They hate Carly there as well. In 3-5 years, HP will look like Lucent.

---max

13 posted on 05/21/2002 11:42:27 AM PDT by max61
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To: Jack Black
Sony has a decent market share. Toshiba does well in laptops. Europe has some vendors that aren't here. There is a strong tier two of PC vendors like Micron and up and coming new guys like Alienware, and there are tons of mom-and-pop chop shops that build great systems. Plenty of competition and anyone can enter the market who wants to, just like Dell did a decade or more ago.

PC's are peanuts. Too make any kind of money selling them, you have to sell a ton of 'em. They are a high volume, low margin commodity.

---max

14 posted on 05/21/2002 11:44:39 AM PDT by max61
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To: spald
Well, I doubt that Carly Fiorina will find this pleasant reading.

I've always been an HP printers user. If the company really goes down the tubes, I don't seen how the printers can escape the mess. Not unless they are spun off early to other, competent management, and I doubt if that is likely. When the rank and file are disgruntled, and money is short, and jobs are at stake, quality is bound to suffer in every area. Too bad.

15 posted on 05/21/2002 11:44:51 AM PDT by Cicero
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To: Cicero
HP's merger with Compaq will be a disaster. Compaq never recovered from its disastrous merger with DEC. It will be the same for HP.

Carly is clueless.

16 posted on 05/21/2002 11:56:33 AM PDT by stripes1776
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To: Cicero
Quality has already suffered, from my experience...printers and scanners I've used don't last as long as they used to, and to top it off, customer service is non-existent. I've probably bought my last HP product.

I remember the days as a young nerd when I use to lust after their amazing calculators....oops, did I just say that out loud?

17 posted on 05/21/2002 11:57:18 AM PDT by WorldWatcher1
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Comment #18 Removed by Moderator

To: Choco Taco
Carly has a bachelors degree in medieval history. Doesn't that count for SOMETHING?

I hope you're joking. But I really don't think you are. It is long past time to get these whores out of the business world.

19 posted on 05/21/2002 12:15:43 PM PDT by guitfiddlist
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To: guitfiddlist
You wrote in response to ChocoTaco:

Carly has a bachelors degree in medieval history. Doesn't that count for SOMETHING?

I hope you're joking. But I really don't think you are. It is long past time to get these whores out of the business world.

Unfortunatly Mr. Taco wasn't joking. She has a degree in medival history (from Stanford I think) and an MBA from U. Maryland. I guess she can now "lop off some heads" like she read about during college.

Regards,
PrairieDawg

20 posted on 05/21/2002 12:20:42 PM PDT by PrairieDawg
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