Last night, I watched with wry amusement CBS' "60 Minutes" which featured back to back interviews with Patricia Dunn and Carly Fiorina. The latest installment in what may go down in history as one of the blackest marks in the history of Silicon Valley was entertaining and informative.
What was entertaining was reporter Lesley Stahl's eyebrow wrenching question "What Went Wrong" to Ms Dunn as well as Ms Dunn's statement high in the interview that she didn't know whether or not she was going likely to be taken away in handcuffs.
Recounting the substanceof last night's segment isn't the point of this entry. Rather, I wanted to point out the winners and losers in last night's episode of HP Torn Open.
To much of the world Ms Dunn now has a face. It's that of a courageous woman who has battled cancer to a draw twice before but now faces an uneven battle with Level 4 ovarian cancer-- a fact that didn't come out until 11 minutes into the interview. Ms Dunn did an incredible job of explaining the Byzantine board room politics she faced and the challenges to management that leakers present, to a company and to the sanctity of a board of directors meeting. She also was able to put a face on someone she apparently sees as a villain in this melodrama--alpha dog venture capitalist Tom Perkins, whose abrupt resignation was the first beacon in this drama.
Score one for Patty Dunn, although the value of this round is likely to be steeply discounted by the time this case gets a hearing in the California Courts.
I also give Ms Dunn considerable credit for trying to distance herself from the investigation by outside agencies of reporters, other board members and HP employees. That in itself helped her to score a win in this first (or depending on how you count them)Second Act of the HP drama.
The other real winner in last night's segment was Carly Fiorina, ,whose book about her tenure at HP goes on sale later this morning. What was very clear in 60 Minutes interview with Fiorina was that she's found some peace of mind since her firing by the board. More than segment with Ms Dunn, Carly Fiorina's interview pointed out how dysfunctional HP has become, and how reluctant the company's managers were to deviate from the "HP Way." The company's first female chairman scored a knockout with her brief discussion of the negative effects of toxic board members.
The part of the villain in last nights segment on the two women who have been HP's board chairpersons was former board member and leading Silicon Valley Venture capitalist, Tom Perkins, who was unavailable for comment because he was at sea sailing his boat (described by Ms Stall as the world's most expensive private yacht.). Patty Dunn said Perkins was close to HP's board room leaker and described his huffy departure from the board. She also noted that the board voted to accept his resignation in record time and rapidly moved on to other business.
What's most apparent in the very public disclosures about HP's pretexting investigation are two important points:
1. Executive management could not be counted on to exercise critical thinking skills and as a result hazarded the company and its brands.
2. The HP Way may be out of synch with today's fast track executives who are more focused on stock prices than on product development or brand enhancement. Bracing your feet, resisting change and chanting "that's not the way we do things here, It's not the HP Way!" Is a surefire method to suborn management and endanger a company.
3. Nepotism doesn't work. Founder's progeny in board positions may be great inroads for philanthropic entities, but unless they're qualified to actually run a division, or a company, they are little more than window dressing to an increasingly astute skeptical world.
4. HP needs to better identify potential leaders brought into the company. It's Board should reach out and find new consultants for executive staffing and security. Their failure in this specific area is glaring. Blaming senior HP managers doesn't cut it. HP had tremendous stature among stock holders and the general public. Such audiences have a right to expect that board-level executives know right from wrong and moral from immoral. When a board member has to call a law clerk to see if something is legal or illegal, something is very wrong. Like Nixonian wrong.
Finally, there are two real losers in this battle. The HP brand and the company itself.
More than at any other time in its long history, HP needs to get back on track. Executives at this company need to pull together now to design new products for mass and specialty markets alike.
There was a time in the not-so-distant past when HP lead the way in technology design, innovation and implementation. Three of the products on my "All Time Greatest List" carry the HP brand. Those products are a scientific/technical calculator, an ultra compact notebook (the original OmniBooks)that has yet to be equaled, and a laser printer line.
To survive, HP needs to get back on track and spend more time working on new technologies and less time on damage control.
For the moment, I've stopped buying HP products, despite my need to replace a less than two-year old 17-inch screen Pavilion 7000 Series 17-inch notebook which croaked inopportunely this weekend. As much as I'd like to replace this notebook with another HP product, I won't. The reason is simple, the company has (I hope) temporarily lost its focus.
But there is a productive public relations path HP can take to regain some limelight. That trail leads to Texas where the former Compaq organization-- now a member of the HP family, can wipe the dust off its products and technologies and hold them up in the bright southwestern sun.
But right now, i hear the coyotes loudly baying. I'm not sure, but the noise could be drifting down from Northern California near HP's corporate offices, or from down in the corner of my orchard here in rural Northern San Diego County. Either way, My dog Perro hears it too and is nestled securely in my bed, awaiting my return--Jim Forbes very early in the morning on 10/09/2006.
(Mandatory disclosure statement: I own no stock in HP, but have purchased numerous HP products over the years and while working as an editor reviewed at least 15 notebook and desktop computers made and sold by HP.)