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They haven't been run right through the whole internet age. Carley was a big steaming pile. I think that the game for these CEO's is to see how much money they can fuck out of the company before they get axed. The average span of a public CEO is 2 years, 70% leave because they get fired.
Looking at it another way, the hardest thing they had to do in their careers is pick the phone and take a call from an executive recruiter, then make a call to their media adviser for prepping and their resume writer. These guys don't have the guts that any garden variety entrepreneur has, the guy who quits his job, the guy that risks everything for his vision of the future, who is tired of corporate ladder climbing.
None of these big public co. guys have any of their own money invested in the company and the board expects things to run the way the founder ran them? Not a chance.
I am a 20-year veteran of HP, joined right out of college in 1979 and I was mighty proud to help it grow to be the "best managed company in the world". Alas, when you are on top, there is only one way to go. The corporate culture replaced the HP Way and morale went right with it. Marketing pukes replaced engineering leadership and the bean counters replaced the most skilled management team the world has ever known.
One stupid acquisition (Compaq) followed another (Apollo and ad nauseum). The bean counters waived their arms and blew a lot of smoke ("$40 billion brick wall", "must have a presence on the desktop" and crap like that) and refused to listen the voice of reason. Doing acquisitions has become one of HP core incompetencies, even though we invited John Chambers to tell us how to do it right. No one was willing to hear that Compaq was a horrible strategic fit for HP (low-cost, commodity manufacturing vs. high IP, value added content; Dell could make money even when selling everything at factory cost vs. HP being plagued with bloated and rapidly depreciating channel inventory, etc.)
I got so frustrated with the institutional stupidity that I quit and never looked back. It is a crying shame that a handful of Harvard MBAs can destroy a great company that two Stanford EEs built. HP has sadly become a follower, a "me too" company. The hard-to-measure value of innovation has been replaced by the easy-to-measure EBITDA. Need evidence? Steve Jobs and Steve Wozniak have brought their first Apple breadboard to HP's board and were practically laughed out of 1501 Page Mill Road. Marc Andreesen at the University of Chicago (Champaign Urbana) has brought a great peice of software to HP which he called the Mozilla web browser, the likes of which have never been seen before. HP executives could not see a way to monetize the invention.
A very sad tale of a once really great company. I still admire the leadership of Bill Hewlett and Dave Packard and genuinely respect John Young for his stewardship of a great legacy, and like Lew Platt for not screwing up the company. After Lew, all that could be heard is this great flushing sound...
OK, with all this talk about Carly Fiorina as the shining example of what is wrong with corporate America, let us not forget the worst CEO in American history who pulled a chew and screw right after the tech stock bubble burst and spent the next ten years being lauded for his track record: Jack Welch, CEO of GE.
Jack, author of The Jack Welch Way, and the icon of successful corporate management built GE Capitol and moved America's most successful and oldest surviving company into the financing business. When the tech stock bubble burst, he saw the handwriting on the wall and retired with a ridiculously sweet retirement deal, leaving his successor, Jeff Immelt, with a company that was destroyed and $300 billion in debt. You see, Jacko gambled GE to create a 20 year record of "success" and whebn those gambles ended in ruin, he split. He never was a success, he was just a gambler and a fraud. Complete idiots, of course, blamed Immelt and idolized Welch.
To this day, Welch doesn't have the common decency to STFU and slither under a rock, and he is still idolized by fools who deserve to lose every single dime they have. For years, you couldn't turn on a television without seeing his deceitful lying mug. Today, GE has been reduced to sucking Obama's cock for Washington handouts like a negative tax rate. It is a smoking ruin.
Carly is nothing next to Welch. He goes down in history as the biggest fraud in the whole corporate/market/fiat ponzi game.
Top of my head.
HP mirrors the demize of the Washington Empire ... well not some remark plucked out of thin air, but I cannot be bothered to explain.
+1, enough said.
I started using HP calculating machines in the early 70's
fantastic quality and superb design - amazing what you could do with 49 lines of code
every HP device i have ever used has been of the best quality - i have an HP 350 DL as my home firewall running linux - never ever misses a beat - it's been running flawlessly and without a reboot for more than 5 years
their servers are still excellent - i'd hesitate to choose anything else - we have lots of them at work and everyone there would agree they are excellent
if not HP for a server then what?
as eloquent and timbered voiceslilted out their versea drunken long-haired patron stoodand threw curse after curse
outside of the assholes at bank of america, hp has the most concentration arrogant smartasses in corporate usa...(of course i am ignoring warren buffet for the moment)
HP is a printer manufacturer with pretensions in other areas. The pc business is a commodity business in which only companies with low costs and smart management can survive. HP flunked on all counts, and should never have acquired Compaq. Note that Buffet got Berkshire out of the shirt business because overseas companies had inherently lower cost structures--the HP board took a decade to figure this out.
Excellent piece of writing. I called HP a 'SELL' on a Seeking alpha article the moment I read about this mis-direction for HP.
HP clearly doesn't have the ability to navigate through growth or winding down legacy business.
BTW this author has a book called "Active Value Investing." It is a must read and is relevant to today's market and for the market over the next 10 years.
Thanks for the advice on the book. Everything I read by VK is good, so I'll pick up the book.
The first company HP fucked was themselves. For those who don't know, Hewlett Packard started off as a manufacturer of high quality electronics test equipment. For eg see http://www.kennethkuhn.com/hpmuseum/ (Not my site, though I do have an identical cat, and some of the same gear.)
As an electronics engineer, for much of my life I worshiped HP test gear. In Australia, on a salary, most of it was unaffordable, so it was a love affair at a distance except where I got to use such gear through work. Then ebay came along and was usable for a few years... now I have about as much of it as I want - which is quite a lot.
While HP was still run by Mr Hewlett & Mr Packard, it was a good, sane company. The gear was built to last, and came with beautiful service manuals that included complete theory of operation, schematics, diagnostics and calibration procedures. Then the founders died, and the company gradually developed 'taken over by marketing dept and accountants' syndrome.
The first sign of rot was when they stopped including complete schematics in the manuals. All the better to make money on their service dept, and no doubt some lawyers argued against 'giving away company secrets'. Like anyone who really wanted to copy the stuff couldn't reverse engineer it anyway.
Eventually the company got a CEO who was a woman, Carly Fiorina, who was some kind of marketing droid. Probably didn't even understand what all that high tech equipment did, or who needed it. That division was hived off, to become 'Agilent' - who still make impressive test gear, but as for being able to maintain it for private use, forget it. It's gone totally corporate-stupid.
The remainder of the company seems to have no idea what it wants to do. Consumer ink jet printers, some pretentious networking gear, shitty laptops with built-in closed computing platform hardware... fuck that.
Also, any HP equipment that is a few years old - "no longer supported". Which means zero support, not even an archive of the original manuals as pdfs, and software sets. Companies that don't support their 'older' products should be given a lead implant in their corporate craniums.
Present-day HP can die in a fire as far as I'm concerned. But their test gear from the 70s, 80s and early 90s is still perfection. Plenty of it around, full manuals easily available via the net. Not from HP/Agilent of course. Apart from Tektronix, there's nothing else like that HP gear. I think of it as a sad remnant of a declining technological civilization; a memento of the days when engineering was done right.
In the context of the 'global cull - de-industrialize and de-populate' conspiracy theme, I wouldn't be surprised if HP management ever since misters H & P were deliberately using the company as a technological wrecking ball. I wonder what Autonomy does, that TPTB might be bothered killing off?
Put a woman in charge of anything - except bra size and cosmetics - goodbye.
That is uncalled for. I Cat Balou you on that. They can be good in the sack; other people's sack is where the slack becomes real whack in the divorce courts.
I own an Hp1631D Logic Analyzer -- please tell me where I can find some info on how this instrument does its CRC calculations for GPIB data transmissions. Look for my email at: http://www.frontiernet.net/~jimbot/
Hp does not use a standard algorithm for the CRC!
Oh great. I have a 1630G logic analyzer, and lots of other HP GPIB equipment, that I'm planning to PC-interface as the workshop progresses, for a particular project. So, 'custom CRC' eh? Wonderful. I expect extracting that bit of arcana from the retro-computing circles will be an adventure.
I'll contact you.
As for HP vs Tektronix scopes, yeah. Tek were better. In analog scopes the 7000 series were brilliant. My all-time favorites, still. But my HP 54121T 20GHz digitizing scopes are pretty nice too. Except they are post-schematics, post-support, so if they die they are gone.
HP had great test equipment, but their scopes were inferior to Tektronix, IMO. Tektronix tried to compete with HP on test equipment, but I think HP was better on everything except for scopes.
Sir, please file that with the other evidence of a waning civilization.
Who's ready for football season?
i always liked the older hp gear, now everything is made in china and is total junk..... my brother in law works at compaq in houston. i used to go with him sometimes when he went over there and he showed me around. many of the buildings are vacaant. they just go around taking care of empty buildings. mostly all they do is make servers there now i think. that place used to be a shining ruby in houston's crown, but no more. the men who started compaq started it in their garage and then it became bigger than their wildest dreams and then they flat lined and then they were bought by hp. i always thought hp should not have bought compaq. waste of money if you ask me............oh well............
I bookmarked your website. It's a bit startling such well written and well researched material on the web. I very much appreciated being able to read your article about Chinese Banking. Cheers.
Thanks for the endorsement IQ- I've never seen this guy post on ZH (granted, I've only been coming here for about 6 months) but I've liked your posts and trust your judgment. I'll check it out.
His work is interesting, and well thought out in my opinion. I don't expect to agree with everything I read, but I have never seen anything he wrote that was dead wrong.
Whenever someone mentions Carly Fiorina's name, they should take pains to point out that she threatened Deutsche bank with a loss of investment banking work unless their sell side research supported the HP/CPQ merger... and was stupid enough to do so on a line that she knew was being recorded.
For example, I made my view clear in Bye Bye Carly, You Hopeless Trout back in Feb 2005, and I always use Fiorina as the archetypal example of 'deal fever' CEOs that would rather grow the size of a company, than its EPS or gross margin... see for example Good To See from Jan 2005.
Nobody was surprised when that dishonest value-wrecking cunt decided to try to be a politician. HP has been fucked since the CPQ merger.
I am always amazed that people won't give a true jucy cunt her due in a me too froufrou.
GeoffreyT, may I suggest that you date your articles? The calendar to the right shows the current date, not the date of the article's publication.
Great observation about Cuntly Fiorina, and whenever she uses the "Former CEO of HP" title someone should point out how disastrous her management of the company turned out. She's an opportunist political hack and will hopefully fade into obscurity. Better yet, maybe she can become CEO of BofA or GS and drive them into the gutter as well.
My experience was that during Carly Fiorina's reign I went from something like 98% trust level in this company's products to ZERO. This was due to a long string of problems with many different products: out-of-box quality problems or failures that were just too close to warranty expiration to view as anything more than disposable crap.
First it was "I will buy no more HP peripherals."
Then it was "I will buy no more HP computers."
Finally it was "holy shit, HP is now making garbage-laser-printers as well." That was the final straw.
Yeah, Carly was awesome. </vomit>
I hope that Agilent Tech. will be able to acquire the Hp name/logo for a song after the bankruptcy.
So Compaq is gone? No tablet. No PC's. Just overpriced printer ink? Maybe Ben will outsource dollar printing to HPQ
Corp Boards are the best of the worlds genius's NOT
i used to love compaq portables with dual 5.5 inch floppy drives....
I cant believe it, has anyone used an HP product lately? Absolute Junk all of it the PC's, printers , scanners pure crap. they all last exactly one year plus one day...
I got one of their early netbooks, never worked well, no customer support, within about 60 days it was an expensive paperweight. I'm thinking they cut the quality out of their PC products to price compete with Dell and others and now that they've destroyed their reputation they plan to unload the whole PC business.
HP from Carly forward is one for the textbooks, Hurd saved the company and then got the death penalty for talking dirty.
i was playing around with one of their tablets at office depot. so you say total junk? well so much for their tablets then....
Exactly my experience. Thank you for that.
Aren't you really glad HP has a non-Executive Board that put paid to stupid business decisions over the past 10 years?
Please remind me sometime what the non-Executive Board (useless crones for short), regulators, auditors/accountants and biz consultants are there for sometime!
...layers of absolutely useless Western institutionalised fluff (over-paid crones moonlighting as safety systems) about to be blown away in the hurricane of 'The Greatest Depression'
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