Reference no: EM131497858

Question: OD IN PRACTICE: SHAKING UP HP20

For the first time in its history, the Hewlett-Packard Company has gone outside for its CEO. HP has been struggling to maintain its 20 percent annual growth in sales, and, in fact, sales growth recently dropped to as little as 12 percent combined with a near 20 percent increase in operating expenses. As the previous CEO Lewis Platt said, "Our competition has closed the gap. Our execution just isn't what it used to be." Some inside executives say that HP has become so focused on protecting its existing businesses that it has taken its eye off of creating new markets. Still, HP remains a powerhouse compared to other companies. NEW CEO Late in the 1990s, responding to a number of concerns about the future of HP and its intention of changing its stodgy image, the board took the bold move of appointing a CEO from outside the company for the first time. The new CEO brought a number of other "firsts" not only to HP but also to corporate America. Chosen was Carleton Fiorina, known widely as Carly.

She was only 44 years of age at the time of her appointment, making her one of the youngest CEOs of a company the size of HP. She is also the first woman to head one of the nation's 20 biggest publicly held corporations. Fiorina came to HP from Lucent Technologies, where she ran the global-services division. At Lucent she earned a reputation as a decision- maker. Says one of her past coworkers, "In her mind, there is no space between defining a problem and solving it." Reports of her ability to work with others are also glowing. One of the executives who reported to her at Lucent said that at a small gathering in her office to celebrate a third straight year of record profits, she said, "So, where do we go from here? I know you won't want to rest on your laurels." He added that Fiorina didn't say, "Great job, but I'm not satisfied." Instead: "You're wonderful, and I know you want to do even better. "Another person who has worked with her says, "She has a gift for taking account of people's very diverse desires, goals, and abilities."

STOCKHOLDER REVOLT Fiorina sparked a firestorm of controversy and stockholder revolt when she proposed a merger with Compaq Computer Corp. This led to one of the biggest proxy fights in corporate history. Heading the opposition to the merger was Walter Hewlett, eldest son of co-founder William R. Hewlett. If the merger had failed, Fiorina would have undoubtedly been out of a job at HP. Things got so bad that she was booed at an HP special shareholders' meeting convened to explain the merger. With much media attention, the merger became a live-action soap opera. The merger ultimately succeeded. The vicious proxy battle, she says, "reaffirmed my fundamental belief that an internal compass is one of the most important things a leader must possess." Now Fiorina has the task of making over two different cultures, the stodgy HP and the go-go Compaq, into one effective and competitive company.

1. How would you describe Fiorina's managerial style?

2. What behaviors, if any, are examples of process interventions?