No Limits

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No Limits

• Meghann Gould
• Nicholas Lee

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Agenda

• History
• Hewlett Packard as a company
• Hewlett Packard Culture
• Carly Fiorina
• Leadership and Power
• Hewlett Packard Compaq Merger

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Background

• Founded on Jan 1, 1939 by Dave Packard and Bill
  Hewlett
• Corporate headquarters are in Palo Alto, CA
• Current CEO and Chairman is Carly Fiorina

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HPs Mission Statement

• To invent the useful and significant.
• Useful focus on what matters most to customers
  and businesses
• Significant intend to make a profit and a
  difference

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Timeline

• 1938 HPs 1st product produced
• 1939 Formalized partnership between Dave
  Packard and Bill Hewlett
• 1940s Management by walking around
• 1950s HP Way
• 1967 Flextime
• 1980s Flexible Time Off (FTO)
• 1999 Carly Fiorina named CEO and invent
• 2001 HP Services created

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Culture

• Innovation
• Open
• Open Door Policy
• Corporate Headquarters
• Decentralization
• Telecommuting around the world

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Carly Fiorina

• Chariman and CEO since 1999
• Held Senior Leadership Positions
  in Sales
  and Marketing
• ATT and Lucent
• Serves on Board of Cisco Systems
• New Vision of Company
• Glass Ceiling
• http//www.hp.com/hpinfo/investor/

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Power

• The ability to marshal the human, informational,
  and material resources to get something done
• Affects organizational members in several areas
• Five bases of power
• Empowerment

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Leadership

• The process of inspiring, influencing, and
  guiding others to participate in a common effort
• Associated with better and more ethical
  performance
• Formal Leadership
• Informal Leadership

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The Three Classical Styles of Leadership

• Laboratory Study
• Followers overwhelmingly preferred democratic
  style
• Practical Experience
• Democratic style does not always stimulate better
  performance
• Some prefer to be told what to do rather than
  participate in decision making

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The Ohio State Model

• Defined two independent dimensions of leader
  behavior
• Initiating Structure
• Consideration
• Identified four styles of leadership
• Low Structure, High Consideration
• Low Structure, Low Consideration
• High Structure, High Consideration
• High Structure, Low Consideration

• High-High style has intuitive appeal
• -1966 study

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The Leadership Grid

• Developed by Richard R. Blake Jane S. Mouton
• Remain convinced that there is one best style of
  leadership
• Concern for People
• Promoting friendship, helping coworkers get the
  job done, and attending to things that matter to
  people
• Concern for Production
• Desire to achieve greater output,
  cost-effectiveness, and profits

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The Leadership Grid

• Five Major Styles
• 9,1 Style Primary concern for production people
  secondary
• 1,9 Style Primary concern for people, production
  secondary
• 1,1 Style minimal concern for either production
  or people
• 5,5 Style Moderate concern for both production
  and people to maintain the status quo
• 9,9 Style High concern for both production and
  people as evidenced by personal commitment,
  mutual trust, and teamwork

100 experienced managers overwhelmingly
preferred the 9,9 style, regardless of how the
situation varied -Blake and Mouton Survey
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Qualities of a Leader

• Recent Andersen Consulting Survey
• Fourteen qualities of an ideal leader
• Carly Fiorinas Philosophy is similar to Blake
  and McCanses 9,9 Style
• Work accomplishment is from committed people
  interdependence through a common stake in
  organizational purpose leads to relationships of
  trust and respect

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Carly Fiorinas Management Style

• Embrace Change
• Achieve Competitive Advantage
• Encourage Constructive Challenge
• Create a Shared Vision
• Demonstrate Personal Mastery

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HP Compaq Merger

• Summary
• Advantages
• Disadvantages
• Fiorinas Management during merger
• Influence Tactics

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Summary

• 25 billion transaction value
• Stock-for-stock merger
• Carly Fiorina CEO, Michael Capellas President

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Advantages

• Expected strong earnings
• More balanced revenue mix
• Synergy growth potential is huge

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Advantages

• Will allow for competition with IBM and Sun
  Microsystems
• Add shareholder value
• Save 2.5 billion per year

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Disadvantages

• Difficult in merging 2 large companies
• 15,000 people would lose jobs
• HP and Compaq have margin problems
• Walter Hewletts opposition

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Managing HP during Merger

• Day-to-day Basis
• Fiorinas guide to leadership and management
  through distraction
• Strategic vision and peripheral vision
• Proactive
• Strong team

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Influence Tactics

• Any attempt to change anothers behavior
  (superiors, peers, subordinates)
• -Consultation -Coalition Tactics
• -Rational Persuasion -Pressure Tactics
• -Inspirational Appeals -Upward Appeals
• -Ingratiating Tactics -Exchange Tactics

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Questions or Comments