HP: Vague. More Like MBAism Chasing Dollars

June 4, 2015

I read “Whitman Paints a Vague Picture of Hewlett Packard Enterprise.” By golly, the gray lady and I appear to agree. The split of flagging HP into two units is described as vague. I think HP is doing what an MBA study group would do to resolve a difficult case: Look for the easy way out. A couple of bouts of spreadsheet fever will create numbers to make the deal look super. The only problem is that there is little recent evidence available to suggest that two HPs will perform any better than one HP. Lexmark, another printer company, is just buying companies. IBM, another wounded rest home candidate, is doing the billion dollar bet thing. I assume that HP’s splitting is more likely to generate the desired result than the IBM and Lexmark approaches. My question: What if none of these three struggling giants can recapture their youth after bouts of MBAism? Perhaps employees will have an opportunity to find their future elsewhere? Nothing vague about these moves in my opinion.

Stephen E Arnold, June 4, 2015


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