Meg Whitman’s 6 Steps to an HP Turnaround
When Chief Executive Meg Whitman took the helm at Hewlett-Packard Co. (NYSE:HPQ) in 2011, she inherited a struggling company overwhelmed by executive departures, board transitions, and the frustration that it had fallen so far behind in technology trends. Upon her appointment, Whitman responded quickly and and erected a five-year effort to stem Hewlett-Packard sales declines, jumpstart innovation, and resurrect the company’s technological prowess.
Two years into the plan, the CEO spoke to analysts at an annual investor briefing Wednesday, and alleviated concerns about about the potential of her turnaround program. Though sales and profits are still sliding, Whitman managed to inspire confidence from investors — effectively driving sales up 8.92 percent by the market close Wednesday — by issuing more optimistic forecasts for the future, after only saying back in August that growth in 2014 was unlikely.
According to Reuters, she told analysts gathered in San Jose, “Fiscal 2014 will be a pivotal year. In fiscal 2015, you can still expect to see acceleration, and in fiscal 2016, an industry-leading company.” Thus, Hewlett-Packard still has a long way to go, but now investors are regaining confidence that it is at least going somewhere. Here are the 7 steps Whitman has taken to spark such a turnaround, with the idea that hopefully they’ll soon bear Hewlett-Packard fruit.