Last week, Hewlett Packard’s startling announcement sent shock waves through the computer world. As hard as it is to believe, the company intends to slam the brakes on its tablet computer and smartphone products. Yes, these nifty gadgets soon will be a thing of the past. What else may become a thing of the past truly boggles the mind. Management actually is entertaining the notion of selling or spinning off Hewlett Packard’s PC division. The mainstay of consumer electronics shifting itself out of consumer territory? Who could have seen that coming? Certainly not Wall Street. The nanosecond HP’s recent announcement hit the media, company stock plummeted by 20%.
Presumably, management put in considerable think-time before making its decision. No doubt calculations, forecasts, charts, and trends were explored, blended, and sized-up from every conceivable angle. Then in a moment of managerial inspiration, the best decision was unveiled. Ta-ta, tablet computers. See ya, smart phones. Tough luck, consumer.
Bear in mind, HP management is no stranger to questionable decisions. Just look how well the company performed after purchasing Compaq only a few years ago. For their latest strategy, company brass apparently ignored the results of IBM’s decision to abandon the PC biz. Intended to improve the bottom line of the electronics giant, the move unexpectedly brought smiles to a certain competitor named after a tree fruit. Apple Computer has since surpassed IBM in market capitalization. In fact, the now-juicier Apple currently is the world’s most valuable company. John Scully did nothing at Apple. But at least he didn’t sell off its core business. Leo Apotheker is likely to go down in history as the greater fool.
There’s one key reason for the Big Apple’s soaring success. The company has made more innovative products available to more people than HP and IBM ever dreamed of. This level of innovation, however, goes well beyond dollars and cents. Yes, yes, profits give a company its muscle. But all the muscle-power in the world is useless if there’s no spirit fueling bold new ideas.
What I’m talking about is a company’s ‘soul’. More than anything, this is the driving force behind a company’s success. It’s the indefinable human connection, if you will. The source of ideas and connections. A soul embraces and nurtures all of the people, businesses, and organizations that have come to rely on the company. If the legions of corporate profit-sharks disregard this connection with the human element, why should anyone (save for the shareholders) even care about the company? The answer is, they don’t. IBM’s dethronement from the corporate kingdom speaks for itself. You listening, HP?
What are your thoughts on all this? Nay, aye, indifferent? Feel free to fire off your comments below. And, of course, if you have any questions, be sure to send them our way as well. You can connect with The Young Company team at 949-376-8404 #205 or byoung@youngcompany.com. And be sure to follow us for the latest industry news and tips.
