Are HP, Google and IDC “Out of Square”?

August 2, 2014

Editor’s note: These three companies are involved in search and content processing. The opinion piece considers the question, “Is management unable to ensure standard business processes working in some businesses today?” Links have been inserted to open source information that puts some of the author’s comments in context. Comments about this essay may be posted using the Comments function for this blog.

Forgetting to Put Postage on Lots of Letters

I read “HP to Pay $32.5 Million to Settle Claims of Overbilling USPS.” (Keep in mind you may have to pony up some cash to access this article. Mr. Murdoch needs cash to buy more media properties. Do your part!)

The main point of the story, told by “real” journalists, is that the company failed “to comply with pricing terms.” The “real” news story asserts:

The DOJ also alleged H-P made misrepresentations during the negotiation of the contract with the USPS regarding its pricing and its plans to ensure it would provide the required most favored customer pricing.

I suppose any company can overlook putting postage on an envelope. When that happened to me in my day of snail mail activity, my local postmistress Claudette would give me a call and I would go to the Harrod’s Creek post office and buy a stamp.

I am no big time manager, but I understood that snail mail required a stamp. If you are a member of the House or Senate, the rules are different, but even the savvy Congressperson makes sure the proper markings appear on the absolutely essential missives.

My mind, which I admit is not as agile as it was when I worked at Halliburton Nuclear Utility Services, drew a dotted line between this seemingly trivial matter of goofing on an administrative procedure and the fantastic events still swirling around Hewlett Packard’s purchase of Autonomy, a vendor of search and content processing software.

A number of questions flapped slowly across my mind:

  1. Is HP management becoming careless with trivial matters like paying $11 billion for a company generating about $800 million in revenue and forgetting to pay the US post office?
  2. Is the thread weaving together such HP events as the mobile operating system affair, the HP tablet, the fumbling of the Alta Vista opportunity, and the apparent administrative goofs like the Autonomy purchase and this alleged postage stamp licking flawed administrative processes?
  3. What does the stamp sticking, Autonomy litigating, and alleged eavesdropping say about the company’s “git ‘er done” approach?

Larry the Cable Guy for President!!!

The attitude may apply to confident senior managers with incentives to produce revenue. Image source:

I don’t think too much about Hewlett Packard. I do wonder if HP is an isolated actor or if companies with search interests are focusing on priorities that seem to be orthogonal to what I understand to be appropriate corporate behavior. One isolated event is highly suggestive.

But what do similar events suggest? In this short essai, I want to summarize two events. Both of these are interesting. For me, I see a common theme connecting the HP stamp licking and the two macro events. The glue fixing these in my mind is what seems to be a failure of management to pay attention to details.

But first, let’s go back in time for a modest effort penned by Edmund Spenser.

The Faerie Queene: Read It Today

The Faerie Queene, as I recall from the lectures of Dr. Foster Provost, focused on ethics. Business schools shifted into high gear when a few missteps caught the attention of a handful of people. Tyco, Enron, various bank balançoires.


The 16th century poem tackles some subjects that are not magnets for lawyers, accountants, and MBAs. For Spenser, politics, faith, and strife—each grabs the spotlight. Spenser, not to be confused with the character created by novelist Robert Parker, used allegory and other tropes to explore topics that were for the information centric person in the Age of Elizabeth the equivalent of today’s search engine optimized headlines.

I am confident that you, gentle reader, are familiar with the epic poem. For those who answer no to this question, “Have you read the Faerie Queene?” —get cracking here.

For me, the late 16th century was similar to the iPad-Android-Facebook present day. In England, the spending policies of Elizabeth caused a disconnect between cash in hand and cash that was going to become available. Technology displaced workers who often, quite conveniently, starved to death or died due to inadequate health care. Social unrest made life tough for those in the bottom 99 percent of merrie olde Englande. Beliefs could get one in a great deal of trouble. Poverty for some in England, in my view, matches that in the tent city in downtown Los Angeles, California, West Louisville, Kentucky, and East Palo Alto, California today.


Snap of LA skid row from

Morality in Spenser’s day was situational. Innovation was evident. New countries popped up like weeds. Spenser cranked out some nifty lines about “A bold bad man.” (FQ, Book 1, Canto 1, line 35)

I marked this passage in my copy from Book 5, introduction, stanza 1:

Me seemes the world is runne quite out of square,
From the first point of his appointed sourse,
And being once amisse growes daily wourse and wourse.

Spenser, desperate to retain the favor of Elizabeth, was troubled by the society in which he lived. Flash forward to today. Russell Hancock, president of Joint Venture Silicon Valley, an organization focused on the local economy and quality of life, might interpret Spenser’s lines this way:

Something has happened. We used to be a Valley full of techies living middle class lives, and now we’re a Valley of the uber-rich carrying toy poodles around with them. (Source: Buffalo News)

Did Google Managers Pay Attention to Forrest Hayes?

Few Google watchers could avoid learning about the fate of Forrest Timothy Hayes and his “contagious smile” at Google’s elite X Labs. The cream of Google engineers worked on advanced, Bell Labs type projects. These ranged from self driving automobiles to contact lenses built using some self assembly technology.

According to the pro business Web site, an alleged prostitute is suspected of murdering the Googler on his yacht “Escape.” (Source: Forrest Hayes, according to an article by Martha Mendoza, Forrest Hayes was “found dead by the captain of his 50 foot yacht Escape…”,   Some Web sites gathered photographs of the alleged prostitute and displayed images of her in different clothing, her tattoos, and her former boyfriend, Dean Riopelle. Mr. Riopelle, according the (London) Daily Mail “loved animals and was, by all accounts, well-liked. Mr. Riopelle, was the front man for the Impotent Sea Snakes, a musical ensemble with which I was unfamiliar.) Mr. Riopelle met a fate somewhat similar to Mr. Hayes’; that is, the alleged prostitute, heroin, and death. According to an AP news report, the alleged prostitute explored a career as a “fetish model” and Hustler Club dance, job skills I previously did not associate with Google X Labs’ staff. According to his obituary in the Santa Cruz Sentinel:

He was the beloved husband of 17 years to Denise and the loving father of Lauren, Danielle, Lily, Rosco, and Zosia…. More than anything else he enjoyed spending time with his family at home and on his boat. His brilliant mind, contagious smile, and warm embrace will be missed and cherished in memories by his friends and family.

In terms of news, the Googler-heroin connection is just a blip Silicon Valley’s radar. The story, whether real or enhanced, is likely to be somewhat embarrassing to Google, Mr. Hayes’ wife (Denise) and his five children.

For me, the situation raises one of those juxtapositions of the words of Edmund Spenser and business behavior today. Recall now the phrase “the world is runne quite out of square.” A yacht, a responsible job, a family, heroin, and an alleged hooker are the ingredients of one wild and crazy ethical fabric. A Santa Cruz police officer allegedly said:

The Nov. 23 encounter “was a mutually consensual encounter including the introduction of the heroin.” (Source: FirstPost]

Interesting because The Fix quoted a now dead Web site as saying:

Forrest Hayes was “”totally selfless in that he genuinely cared about everyone and put himself in other’s shoes.”   (See

My questions are:

  1. How much credence do we give to the idea that a senior executive has good judgment or Jay Gatsby decision making skills?
  2. Do ethics have any relevance in today’s information-centric business environment?
  3. How was a professional in an environment filled with highly intelligent individuals able to compartmentalize Google-type thinking with the logic to become in some way with an individual with an interest bondage and apparent familiarity with acquiring and ingesting in some manner banned substances like heroin?
  4. Is this Forrest Hayes’ scenario a black swan (an anomalous,  isolated instance) or is it an early warning signal that the foundation of “intelligent” individuals working in highly competitive organizations like Google is crumbling?

Were managers of Mr. Hayes paying attention? Were the human resource professionals on the ball? Were Mr. Hayes’ colleagues tuned in to a wizard’s behaviors?

If the answer is yes, then the family can thank Google for its effort. If the answer is no, then one has to consider that a sophisticated company’s management system and methods as deeply flawed. I suppose the linkage of HP’s not honoring a contract with the US post office and Mr. Hayes seem far apart in emotional impact. For me, I am not so sure that the ethos of the two companies are in tune with agreements or individual employees.

You may disagree. Let’s move on to a relatively minor event in the physics of large organizations.

Surfing on My Name: The IDC Schubmehl Synecdoche

This example is more modest than an alleged death by heroin overdose and a lapse in paying for postage. It is, in my view, illustrative of management approaches, appropriate behavior, and common sense. Let’s explore this example without too much anadiplosis.

Earlier this year [2014], a law librarian and member of my research team spotted an IDC report that was available on Amazon for $3,500 until mid July 2014. The report had my name on it as well as the names of some of my researchers, Constance Ard and Dr. Tyra Oldham. IDC did this without permission to use my name “Stephen E Arnold” or that of my research team in this type of consumer-oriented marketplace. I think of Amazon as the Wal-Mart of electronic information and household items like anti itch cream. I am not sure that IDC, the company publishing this report using my information, knows much about this violation of my intellectual property rights. I would also tentatively suggest that the company’s management is indifferent to what I see as a violation of professional procedures. What’s ironic is that the founder of IDC offered me a job when I worked at Ziff Communications. As I told my boss at Ziff, IDC was an outfit that made me quite uncomfortable. I was not sure about the company’s approach to business, and I was a person with experience in nuclear related work and in the vineyards of Booz, Allen & Hamilton. Both Halliburton and Booz, Allen were pretty savvy outfits, and these companies did not make me uncomfortable in the way Pat McGovern’s approach and organization did.


Verified on July 12, 2014, 9 06 am Eastern at

What is interesting in this Amazon listing for a document with my name and that of two of my researchers was the attribution of the work to an alleged search expert named Dave Schubmehl. I asked my attorney called this unauthorized use of my name and unauthorized sale of my content via Amazon, there was some confusion. After a bit of legal strutting, the document was removed from the Amazon store. I told my attorney I wanted $25,000 for the use of my name in a Wal-Mart-like digital store. Well, you probably can figure out how that request was received by IDC and its legal representative.

Since 2012, I had been seeking a contract, sales report, and payment for the work Mr. Schubmehl requested in the presence of a law librarian and a former IDC vice president. Mr. Schubmehl, aggressive wizard that he seems to be, recycled my information into four $3,500 reports and tucked into his cubby an open source market analysis and eight additional profiles of open source search vendors.

Between 2012 and July 2014, Mr. Schubmehl piggy backed on my name and reputation. He appeared on a special webinar with one of the companies which I profiled. He, in my view, learned a great deal or figured out how to make sales to some of the companies in my year long research effort.

IDC’s contract department, Mr. Schubmehl, and even the founder of IDC (the now deceased Pat McGovern) showed zero interest in issuing a contract for my work or getting my permission for Mr. Schubmehl to get some modest momentum from my work in search and content processing.

I will invite you to consider what this IDC Schubmehl incident reveals about choices, an organization’s internal awareness of its high value, knowledge rich employees’ behavior, and the ethical and medical implications of exploring a relationship with an individual with capabilities in such disciplines as bondage and injectable opiates.

Still Considering Spenser’s Out of Square World

No one is without imperfections. I do find it problematic to rationalize this type of behavior in a person with intelligence, children, and work with demanding colleagues. Was HP unaware that it did not pay for stamps? Were Forrest Hayes’ colleagues unaware or ill equipped to interpret behavior signals from a person living a life as a “cherished” family man, a Googler, and an interest in an alleged prostitute-centric life style. Were the managers of HP, Google, and IDC doing their jobs?

The question is, “How widespread is what Spenser might call an “ethikal” concern.” Some questions I am considering in light of Spenser’s “square” observation:

  1. How can a senior executive veer into a dark world of untoward behavior and really smart people not know what’s going on? Why didn’t administrative procedures or common sense kick in?
  2. How can a company like Hewlett Packard create a consistent string of decisions that make it clear how different the founders’ vision was and what the company has become? I am thinking of an $8 billion write off and a failure to honor a contract? Keep in mind that HP is plotting a giant leap forward.
  3. What is the logic of a senior executive and consultant who sells knowledge to use another person’s work, name, and reputation to further his own job?
  4. How can these reasonably well regarded companies dodge public scrutiny or questioning? I know the answer, but I like to ponder the question.
  5. Is Dave Schubmehl’s behavior accepted as a “standard business practice” at IDC?
  6. How can a company that sells expensive products and services build trust among its customers when an exclusive unit of Google keeps its eye on moon shots and not on behavior which the deceased executive’s wife and children will find distasteful?

Let’s put these three examples in Spenser’s context.

First, it is clear that each individual made decisions that resulted in quite specific results. Mr. Hayes burdened his wife and five children with an albatross of considerable weight. Dave Schubmehl’s decision demonstrates that a knowledge centric company like IDC seems to tolerate behaviors that apparently benefit the reputation of an employee. If the Amazon matter is the responsibility of another professional at IDC, then the issue of corporate management steps front and center. HP’s administrative procedures were not up to the challenge of keeping the US post office happy. Google’s HR function was not aware of an employee in a troubling situation.

Second, the impact of the decisions of these executives responsible for the post office issue, the mental health of a senior executive, and a consultant with an appetite for reputation surfing will persist and then lose sharpness in the flood of digital noise. Google is now associated with Mr. Hayes’ behavior: the alleged prostitution and the alleged heroin “experimentation.” HP is swathed in the Autonomy situation and with each gaffe reinforces the perception that HP is slipping. IDC is now associated with Dave Schubmehl’s action with regard to reputation surfing and some business actions. The three case instances, to me, are notable and seem to verify Spenser’s lament about the “wourse and wourse.” I would submit that none of these examples is exactly “square.”

Third, these three examples are, of course, not the only ones suggesting that something has gone or is now “amisse.” Lurid tales of sexual harassment, statements from once respected venture capitalists about the role of wealth, and the wage agreements among some large technology firms—these are but three examples from knowledge centric companies. Even the president of the United States said that we tortured some folks. Okay. Torture, contract violations, indifference to a colleague, using content without permission—no big deal, right? Or wrong? Very, very wrong.

My hypothesis is that Google-heroinprostituteHPAutonomypenaltiesIDCSchubmehl are single pieces that make up a larger mosaic of business today. I am not sure I am comfortable with the picture my mind generates for me:


Image source:

If Spenser were writing today, he might need stronger language than square and worse. I would suggest deeply troubling or terrifying. Yep, we tortured some folks. Who wants some pizza?

Stephen E Arnold, August 2, 2014


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  43. douglas pitassi on September 25th, 2014 9:32 pm

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    Are HP, Google and IDC ?Out of Square?? : Stephen E. Arnold @ Beyond Search

  44. douglas pitassi on September 25th, 2014 10:50 pm

    douglas pitassi

    Are HP, Google and IDC ?Out of Square?? : Stephen E. Arnold @ Beyond Search

  45. douglas pitassi on September 26th, 2014 12:55 am

    douglas pitassi

    Are HP, Google and IDC ?Out of Square?? : Stephen E. Arnold @ Beyond Search

  46. Frank Dellaglio on September 26th, 2014 12:49 pm

    Frank Dellaglio

    Are HP, Google and IDC ?Out of Square?? : Stephen E. Arnold @ Beyond Search

  47. Consolidated Credit on October 2nd, 2014 9:22 am

    Consolidated Credit

    Are HP, Google and IDC ?Out of Square?? : Stephen E. Arnold @ Beyond Search

  48. consolidated credit on October 3rd, 2014 1:19 am

    consolidated credit

    Are HP, Google and IDC ?Out of Square?? : Stephen E. Arnold @ Beyond Search

  49. American Flag Charm on October 8th, 2014 7:56 pm

    Write more, thats all I have to say. Literally, it seems as though you relied on the video to make your
    point. You clearly know what youre talking about,
    why throw away your intelligence on just posting videos to your blog when you could be giving us something enlightening to read?

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