Mark Hurd at Hewlett-Packard
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Was Mark Hurd Qualified to Lead Hewlett-Packard?

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Mark Hurd served as Chairman of the Board, Chief Executive Officer, and President of Hewlett-Packard from 2005 to 2010. Though his time with the company saw its share of controversy, the enduring question of his suitability for the post is one that's lingered long after his departure. Though the company has moved forward, it hasn't quite moved on from many of the powerful changes that Hurd implemented at HP.

The question of whether he was qualified for the post is one that promptly answers itself with an examination of his accomplishments within his five years with the company. Hurd's swift actions and decisiveness allowed him to leave a measurable legacy with the tech behemoth in his short time there.

A Strong History of Success

When Mark Hurd joined Hewlett-Packard, his chief management experience came from his years at NCR. He joined the company in 1980 as a salesman, gradually working his way up through a slew of roles that included positions in operations, sales, and global marketing. In 2003, he became chief executive of NCR.

At the time of his ascension, NCR stocks were at a lowly $9. Hurd promptly turned the situation around, leveraging growth in the company's data warehousing sector as well as layoffs and dramatic cost cutting. By the time he moved on to HP, NCR stocks had more than quadrupled to $39. The same tactics that served Hurd so well at NCR were soon to follow him into his tenure at Hewlett-Packard.

Uncompromising Accountability

Hurd wasted no time getting to know the unique layout and business practices in place at Hewlett-Packard. Executives quickly learned what would be asked of them and that there was no room for inefficiency in the new regime. Hurd ruthlessly memorized all the most critical measurements of profitability and efficiency, recalling them instantly in his meetings with executives so he could quickly identify areas of growth potential or lost efficiency.

Hurd demanded that every executive be prepared to justify their department. Under Hurd, product division heads regained control of their budgets, including supply, marketing, and sales. This helped centralize power as well as accountability. Under Hurd's rule, there would be no place to hide.

Sleek Simplification

Simplification was key to Hurd's management strategy at Hewlett-Packard. Similar to the strategy employed at NCR, Hurd focused on an approach that would trim the fat and create sleek, streamlined business practices. There were 7,000 software applications when Hurd joined the company. He placed someone in charge of each one and tasked them with justifying their application to the technology department. There were soon only 2,000 applications though Hurd still deemed the number "too many."

Also part of Hurd's simplification strategy was a slew of layoffs. Ten percent of the company's employees were to lose their jobs – a total of over 15,000 employees. The number of data centers managing company operations dropped from 85 to just 6.

Detailed Data

Appropriate for a technology company, one of Hurd's first tasks was to demand more and better data. For this job, he enlisted Randall Mott. Mott was hired as chief information officer and tasked with creating a powerful companywide database that would consolidate all the disjointed data systems that were operating in HP at the time. Mott had a total of 784 different databases to condense into a single information showcase.

Hurd started this project just three months into his tenure at HP, showing his remarkable aptitude for honing in on the most important matter and moving forward quickly and efficiently. Mott's completed system met all of Hurd's requirements, tracking all the activities of HP's employees as well as roughly 100,000 company partners and suppliers. This powerful system provided invaluable data to the 50,000 employees who were granted access to these critical numbers.

Remarkable Revenues

Mark Hurd's changes within HP were measurable in numerous ways. Not only did he trim away excess applications and operations, he dramatically boosted revenue. Under his predecessor, Carly Fiorina, HP's stock fell 65 percent in five and a half years. Hurd arrived in 2005 and by the 2009 fiscal year had increased revenue from $80 billion to $114.6 billion. The price of stock more than doubled. Hurd saw 22 profitable quarters in succession.

A Leader Dubbed the UnCarly

Perhaps one of the most notable features of Mark Hurd as a CEO for Hewlett-Packard was his stark differentiation from Fiorina. The difference is so notable that Forbes even dubbed him "The UnCarly." Hurd was uniquely chosen to help the company recover from a leader accused of being egotistical and self-centered. Hurd, in contrast, maintained an extremely team-centered approach. His adages often seemed better suited to a coach than an executive.

Hurd played tennis in college, thriving on the team atmosphere but gave up the sport after attempting to go professional because he found the individualized focused distasteful. Some would claime he carried this mindset into his corporate career. Fiorina used her own voiceover in HP advertising and hung a portrait of herself in the company's lobby. Hurd shied away from the limelight for his first several years at HP. Hurd was offered a cover shoot for Forbes but refused the honor if he couldn't appear alongside the rest of his team.

Rather than attend global forums, he opted instead to talk to customers on the floor of the local Best Buy. In his time at Hewlett-Packard, Hurd was uniquely suited to his position because of the dramatic differences between his own management style and the failings of his predecessor. His approach helped to rebalance the struggling company and restore profits at a critical time.

Mark Hurd's qualifications and management style seemed to give him the unique capability to help Hewlett-Packard make an outstanding comeback and position itself for future success. Well-chosen for the position, Hurd had all the necessary qualities to help the company in a challenging time. Though his tenure ended after just five years, he's since proven his management chops with Oracle. A powerful player in the tech industry, he offered just what HP needed right when it needed it.

Mark Hurd - HP