I have been involved in mergers and acquisitions for several decades and have been accustomed to operating the acquisition cleaning team while at IBM. I saw so many bad acquisitions that it generally became easy to point out good acquisitions.
One of the most painful mergers I had was the one between HP and Compaq – which he desperately tried to kill, lest any company could escape its position. This was eliminated, but the cost in jobs at all levels was excessive for both companies, and both executives were eventually forced. Meg Whitman, the current CEO of HPE, has in most cases been upset.
In contrast, Dell + EMC integration, which will be completed this week, has been a lesson in excellence, with goals, planning, and how to do these things, and implementing two surrounding ideas – an example of achievements possible. I think we are looking at history.
I’m going to share some thoughts on what’s impossible this week and close with the makers of my week: the NVIDIA Titan X, a surprisingly powerful graphics card.
HP and Compaq were two of my company’s biggest customers when their merger plan came out, saying that my management was not happy because I was against the merger rather than pro-being, it would be a formidable assessment. However, I have been involved in the merger for decades, and it looks like it will be a train wreck.
By then, it was clear that Carly Fiorena had gone out of her way and struggled with being around HP. He had no real operational skills to carry out any merger, let alone this vast range. He lacked deep support at first, resulting in a revolt in his own council and an open war with the media. Companies could not even maintain the image that the merger was a good idea.
The only thing that saved them was Compaq CEO Michael Capillas, who was operational and efficient by the financial companies needed to win the agent fight that occurred prior to the approval of the merger. I had no doubt that Capillas would be forced to leave, because Fiorena would see him as a threat – and he is right. However, without that, this merger would lead to excessive layoffs, as well as the pain of remaining HP employees, shareholders, and customers.
Fiorina has been kicked out – usually not a testament to success. Meg Whitman gave up trying to fix the mess and ended the company instead. I still wonder whether prior to Whitman, HP had three CEOs – Fiorena, who lacked relevant technology expertise and were unsuccessful. Instead of getting someone like Herd, who succeeded, the board found someone more similar to Fiorena at Whitman. HP being operated by HPE is now a fraction of what it used to be. Boy, talks about missing a meeting.
There is no more obvious contrast with HP + Compaq than Dell + EMC. Previously, the reasons behind the merger were very different. Dell + EMC was not trying to deal with a failed change by buying another company with a similar problem. Its purpose was twofold: to avoid the weight of hedge funds and institutional investors increasingly flocked to companies to gain profits, and to find a suitable alternative for Tucci, which allowed them to leave EMC Board not found.
Instead of appointing a CEO who was either CEO in the industry or inexperienced to be a CEO, EMC agreed to merge and to Michael Dell, one of the industry’s most capable executives – and some who took a company from a startup Found for a multinational company. .
By the way, when I was doing my graduate work in the College of Business Administration, one of the professors argued that it was impossible for the CEO to take over a company during three phases. The transition from a public company to a large company to a start-up is believed to exceed the capabilities of a single CEO, as the required skill sets for each stage are completely different.
Even Steve Jobs did not actually do this at Apple, as he was fired in transition and was not CEO of Apple until he was reappointed (and this to Job Not to do less, as Jobs has had success with both Pixar and Apple, suggesting that he may be able to do so). Prior to Jobs and Dale, Thomas Watson was Sr. , Which ran IBM in a completely different era.
Michael Dell is doing the impossible as a hobby, as it was believed that it is impossible to take Dell in privacy in the first place. One thing that has been told to me repeatedly, especially about large mergers of public companies – is that you are not allowed to do too much prior planning. Well, people who said that was full of crap because it’s almost