Back to Business for Meg Whitman

Silicon Valley is doomed (5.67 / 3)

HP is a huge company with significant technology background and presence in technology fields. Whitman really doesn't have a technology background. Nor is her business management record as stellar as she likes to represent it. It's sort of like Rick Perry's Texas miracle--based on luck, circumstances, and stuff other people actually did. Whitman had a lackluster record at Mattel, a disasterous one at FTD, and a decidedly mixed one at eBay. Remember the Skype buyout? She essentially rode a unique concept up as it boomed and was then unable to do anything about it as it stagnated. And, while eBay is based online, it isn't really a technology business so much as a technology-enabled flea market. It's a retail business. It just happens to be located online.

Now, you could say HP does a lot of retail business too. But they do it through other stores and channel partners, or through direct sales to business. These last two areas tend to be technology heavy--selling into big data centers, for example. Whitman knows nothing about that market.

So, with a lackluster management record and no experience in the industry, what makes the board think she'll do better than her predecessors? I suppose she's less likely to have an affair than Mark Hurd. But more likely to start a fight. And unlike Apotheker, who did a reasonable remake of The Invisible Man until dropping his bombshell last month, Queen Meg is likely to be a press hog. None of which recommends her to turn around one of the largest firms in Silicon Valley. If we're lucky, she won't be any worse than Carly Fiorina, who also found herself vastly overmatched. If not, Whitman could have serious negative impact on the Silicon Valley economy.

Please don't misunderstand me. This has nothing to do with the fact that Whitman is a woman. HP had a long-serving and highly regarded female senior executive who was widely expected to get the CEO nod before they brought in Fiorina. I never heard what happened to the other woman or why the board chose Fiorina instead. But, from what I heard, the other woman would have been miles better. But this is the second time the HP board has chosen a woman for flash instead of substance. If shareholders are smart, they'll get rid of the board members who made this stupid decision, and follow by getting rid of Whitman.  

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by: cfinnie @ Fri Sep 23, 2011 at 03:02:34 AM UTC

Silicon Valley Isn't Doomed (1.00 / 1)

But I'll agree HP is.

No idea what that board of directors is thinking....

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by: CaliforniaCondor @ Fri Sep 23, 2011 at 03:19:02 AM UTC

[ Parent ]

Sorry -- incomplete (5.00 / 1)

I had more to add, but didn't have time to complete the thought.

There's a misconception that "Silicon Valley" is the big companies:  HP, Intel, Cisco, Yahoo, Google, etc.  They're definitely important, but the real power and strength of Silicon Valley is the entrepreneurship.  This is one of the most fertile areas for new ideas and new businesses in the world, and the success or failure of one of these old, big companies doesn't doom that sense of entrepreneurship.  

It may even help it, in small ways, as former HP employees end up looking for new opportunities, some may decide to start up their own businesses.

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by: CaliforniaCondor @ Fri Sep 23, 2011 at 15:29:45 PM UTC

[ Parent ]

More politics (2.00 / 1)

Stop with the politics already.

Meg Whitman has too much character and talent to try to fix that dysfunctional mess called the state of California overrun by whacko liberals who don't have clue such as yourself.

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by: Demsanddonts @ Sat Sep 24, 2011 at 20:48:33 PM UTC

[ Parent ]

Politics? (4.50 / 2)

Hardly.

It looked like a panic move by the HP board -- there was no formal search for a replacement after Apotheker stepped down.  

The market certainly didn't share your confidence in the selection -- or is the market liberal?

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by: CaliforniaCondor @ Sat Sep 24, 2011 at 21:46:07 PM UTC

[ Parent ]

The Massachusetts Miracle? (0.00 / 0)

I guess you can compare Rick Perry's miracle to the same miracle that apparently occurred under Michael Dukakis?

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by: Demsanddonts @ Mon Sep 26, 2011 at 04:10:27 AM UTC

[ Parent ]

Great opportunity for Whitman (0.00 / 0)

to prove that she's not REALLY a loser like Carly Fiorina.

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by: greggp @ Sat Oct 01, 2011 at 05:44:38 AM UTC