Hewlett Packard Enterprise: New Era of Change
Kay Doss
Walden University
Professor Preiksaitis
MHRM 6645
January 21, 2018
Hewett Packard Enterprise: New Era of Change
According to Heathfield (2017), succession planning is a process in which organizations ensures that employees are recruited and developed in order to fill key roles within the organization. This process allows an organization to never have key roles open for a long period of time as well as not preparing another employee to take the lead. In order for an organization to effective executive a succession plan, the CEO, the human resource (HR) professional and the board of directors must support the process and proactively search for the ideal candidates. These individuals holds the future of the organization and must prepare employees to step into roles that carry out the missions, vision and goals of organizations (Heathfield, 2017). In this paper, Hewlett Packard Enterprise will be examine to identify the new change in leadership and how their CEO, HR professionals, and board of directors focuses on a succession plan to ensure success.
Background of Hewlett Packard Enterprise
Hewlett Packard (HP) is an information technology company that was founded in 1939 in Palo Alto, California by William “Bill” Redington Hewlett and Dave Packard in a car garage. Since 1939, HP has expanded international by provide corporations with varies hardware and software services that includes developing and manufacturing computers, networking providing computer storage. The products in which HP sells includes computers, servers, software, printers, varies storage devices and imaging products while employing over three million employees around the world (“HP: Making it Matter,” n.d.). In 2014, HP announced that the company will be split into two separate companies- HP INC., and Hewlett Packard Enterprises which separated its core PC and printer business from its enterprise and services business.
According to Wasserman (2015), when HP announced the division of the company, the leadership knew they had to keep the legacy going and took three important branding lessons: make the logo simple and unique, don’t run the company’s reputation, and align the brand with the corporate mission. Under the leadership of Meg Withman, Hewlett Packard Enterprise developed a mission statement that was true to heart. It simply says, “Defining what’s important to your company from the top down, both internally and externally, will form the backbone of your new identity.” This mission statement expressed the focus of the new company while maintaining true to its original vision.
Recent Leadership Change
As of January 2018, Meg Whitman is the Chief Executive Officer (CEO) of Hewlett Packard Enterprise. Whiteman served as the President and CEO for Hewlett-Packard Company from 2011 to 2015 and led the company in its most remarkable turnaround while separating into two Fortune 100 companies: Hewlett Packard Enterprise and HP Inc. (Hewlett Packard Enterprise, 2018). Whitman hold a bachelor degree Princeton University and a MBA from Harvard University and has held numerous executives-level positons for companies like eBay, Procter and Gamble Company, FTD, Inc., The Walt Disney Company, The Stride Rite Corporation, and Bain & Company. However, when Whitman leaves, she will still be on the board of directors (Snider, 2017).
The successor of Whitman, Antonio Neri, will become the new CEO, President of HP Enterprise, and will join board of directors in February 1st, 2018. According to Sidner (2017), Whitman states that it is right that Antonio and a new generation of leaders to take over to move the company in the right direction in a speech giving in November 2017 while praising Neri for having shareholder value creation, financial restructuring, and an innovation engine. Neri comes with 23 years of experience with HP and has held numerous leadership roles. According to his bio on HPE (2018), Neri ran HP’s Server and Networking, Storage and Technology Services where he was responsible for bringing new innovations to market and the execution of the go-to-market strategy.
Succession Plan used by Hewlett Packard Enterprise
In November 2017, Meg Whitman announced that she will be stepping down as CEO and President of HPE (Snider, 2107). The announcement comes when the company has decided on a series of corporate restructuring that is necessary to stay competitive and overcoming financial issues. The company drop 5% in a year –over-year sales in the last quarter to 3.28 billion (Vanian, 2017). Whitman states that within the last few months, the company need a leader with technology chops, which is something she lacked, that will gain innovative ideas that drives the future. Antonio Neri, who has been with HP for over two decades, comes with mass experience and held numerous roles in every business of the company (Snider, 2017).
In examine the succession plan of HPE, the company is in the first generation of the succession planning and management. According to Rothwell (2016), the first generation of SP&M life cycle is replacing the CEO and involving the CEO ensues that does not delegate anyone prematurely to the executives and other groups. Before Whitman announcement, the company were in search of a successor with knowledge of the technology world that Whitman did not have and Whitman delegated Neri.