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Case Title:

Hewlett Packard-Losing the HP Way

Publication Month and Year :  June 2009

Authors:  Shuvanil & G Srikanth

Industry:  PC Industry

Region: Global

Case Code:  OB0011

Teaching Note:  Available

Structured Assignment:  Available

OR

Abstract:
This case study was written to study the concept of organisational change in Organisational Behaviour course. It deals with the case of Hewlett-Packard (HP) which was started in 1938 by two electrical engineers Bill Hewlett and Dave Packard. The company grew from a small electronic instruments company into one of the global leaders in information technology products and services by the end of the 20th century. The ‘HP Way’, a unique people-focused, consensus-driven work culture initiated by the founders had been the driving force behind its growth. But the culture started losing its effectiveness due to the changing profile of the company and the dynamics of global competition. The new CEO Carly Fiorina (Fiorina), who took over the reins of the company in 1999, made radical changes in the ‘HP Way’ to rebuild the company by shifting the focus from employees to customers. The merger with another leading player, Compaq, further diluted the culture. What was the approach adopted by Fiorina in affecting and managing this organisational change?

Pedagogical Objectives:

  • To discuss the restructuring strategies formulated by Fiorina to save the company, her reasons for deviation from the ‘HP Way’ and the benefits and losses of the change as debated by the analysts
  • To understand how organisational change, if not handled well, could prove detrimental to the existence of a company.

Keywords :  Hewlett-Packard (HP), PC manufacturer, The HP Way, Computer products, Strategy council, Imaging and printing, Management by walking around, Managing in Troubled Times Case Study, HP and Compaq merger, Competitive differentiation, Forces for Change, Managing Planned Change, Resistance to Change, Approaches to Managing Organisational Change, Corporate proxy battle, Decentralisation, Restructuring programme, Enterprise and storage business, Cost savings, Core competencies, Organizational Behavior, OB, Organizational Behavior case study, Motivation Case Study, MBA, MBA Program, Course Mapping

Contents:

  • Introduction
  • Hewlett-Packard and the "HP Way"
  • Evolution of the HP Way
  • Winds of Change
  • HP – Compaq Merger

  • The Post Merger Scenario
  • Carly Fiorina's Way
  • HP Way – Values and Objectives
  • An Assessment of the Restructuring By Carly Fiorina

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