December 13, 2005 11:24 AM PST, HP discloses strategy for recovery, By Marguerite Reardon, Staff Writer, CNET News
• Hurd said revenue is expected to grow to $91 billion in fiscal 2006, up from $89.5 billion the previous year. In fiscal 2007, which begins in November 2006, profit margins are expected to grow to 8 percent, up from 7.5 percent the previous year. Specifically, HP is focusing on three major businesses: enterprise virtualisation, high-end printing and mobility.
• Vyomesh Joshi, executive vice president of the imaging and printing group, said it will take a combination of all these smaller printing markets to hit the revenue growth target of 4 percent to 6 percent.
• Since taking the reins from former CEO Carly Fiorina, Hurd has focused on cutting costs. He has cut more than 15,000 jobs in the past six months and has restructured the business, eliminating a sales division.
• Going after smaller companies that will help fill out product and technology holes in the markets on which HP is already focused.
• Key to meeting financial goals is how well the company executes on its strategy. Hurd said that beyond introducing more incentives for its work force to increase productivity, HP needs to focus on improving leadership and fostering more accountability within every division of the company.
• I've got a few suggestions to the HP board:
1. Bring the HP way back. Cut back on stupid stuff and re-introduce the morning croissants to start with. Productivity should rise significantly.
2. Value your employees. Make them believe in the company again, not just in the cheque at the end of the week. Involve them, train them, give the ...