Dr. Maccoby participates in a Weekly Forum on Washington Post.com called "On Leadership". I am compiling all of his responses to the weekly questions here.
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DATE: August 10, 2010 HP Board vs. CEO Mark Hurd: The right decision?Q: In forcing out its successful chief executive, Mark Hurd, did Hewlett-Packard directors over-react to what, given his overall compensation, appears to be a modest abuse of his expense account? Or did the board under-react by allowing Hurd to resign with his full contracted severance package rather than firing him for cause? |
Undermining the 'HP Way'
HP was founded by leaders who built strong bonds of trust with their employees. The founders, Bill Hewlett and Dave Packard articulated and practiced a clear philosophy they called The HP Way. Ethics were a given and disrespect among employees was not tolerated. To strengthen trust and loyalty, HP did not lay off employees in downturns of business but had everyone take time off and a corresponding cut in salary. Trust and a strong value of excellence supported a collaborative culture that became a model for Silicon Valley.
The HP values have been undermined and frayed by some of the leaders who followed Bill and Dave. Mark Hurd promised to revitalize the HP Way. His actions, hiding expenses to engage in a questionable relationship that does not pass the smell test, undermine the trust essential for a company's sustainable success.
Hurd was widely admired, especially by HP shareholders, for cutting costs and increasing revenues through acquisitions. However, HP's future depends on a leadership team that strengthens collaboration and innovation, that can articulate and practice a version of the HP Way for a global market.
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