My view on the current climate? I don’t read the papers.

“My view is simple. Whether you believe Gartner, IDC or Forrester, take the worst case scenario, and then focus on where the money is being spent. If you become focussed on what is not being spent, you can talk yourself into a recession and have a real confidence issue. I won’t read the general gossip about the economy as the tabloid negativity can lead your confidence into downwards spiral. Instead I focus on the fact that customers are still spending, just in a different way. They are looking at every purchase with a sharp eye on ROI; therefore you need to adapt your selling style to address the pressures which customers are now under. Customers also require shorter terms in order to reach ROI, and they don’t have capital, therefore you must adjust your strategy to what the customer requires, and focus on where they are spending money.”

Consolidation in the technology marketplace

There has been a lot of consolidation in the technology marketplace. Andy believes that this consolidation will only be accelerated by the current climate, as now is a good time to be acquisitive if you have a strong balance sheet.“HP is not trying to be biggest software business in world, instead we want to be relevant to customers, and try to bring together those assets that the customer wants to have under one umbrella, which is why HP has built out a comprehensive IT Management portfolio. HP has successfully bought in either the #1 or #2 software solutions in every category of its portfolio, as can be seen with key acquisitions such as Opsware, Peregrine and Mercury.”

Unique cultures and values with a unifying HP foundation

“HP has a simple philosophy regarding how to integrate new companies. If you go back to the Compaq days, a $40Bn business with c. 80,000 people, we didn’t march in raise the HP flag and tell them the answers, it was very collaborative, and we have become even more so with time. With the Software business, our philosophy has been to go acquire really good assets that customers want, then do a thorough evaluation, and access the talent. We don’t assume that an HP person will run the show, and this has been very effective. I have legacy-Mercury and Peregrine people working for me, and in fact I have only one “classic” HP person on my management team.”

Has the culture changed with all of the acquisitions?

“It has evolved; but we have kept our strongest themes from when the company was set up. As we have built out different business, we have created unique cultures and values with a unifying HP foundation, each tailored to the demands of that business. If you look at the software management team, almost everyone has come from a software background, and this has led to our own specialised culture.”

Management Style

When considering how his management style has been formed, Andy gives credit to the lessons he has learnt from his mentors, previous members of HP’s senior management team: “I have tried to learn something from each of my mentors. It is from them that I have seen the importance of rigorous business practices, so I place a great deal of emphasis on having outstanding operational rigour, strong execution and maintaining strategic drive. Following their example I make it a point to stay in touch with my team, walking the floor and fostering an informal yet informed culture.”

Connecting the dots

“Fundamentally I am a pretty direct person. My philosophy is that people need to know what you are doing and why, and the role that they play in this big picture. I am a clear communicator in terms of what is expected of people, and I share the profit and loss of the business with everyone. This is because I believe that the more you can connect the dots between what you are doing, with the shape of the P&L the more people can understand why certain tough decisions are made, and “buy into” your strategy. This open, direct communication adds context, and I recruit strong leaders who share this philosophy and perpetuate this practice.”

Career Management

“I always think two jobs ahead. I plan ahead, knowing the attributes and qualities I will need for the future. Once you have this in your mind, you can focus on building the skills you need for that job, and the network of people you will need to support your bid. We have an excellent talent team, however in a 300,000 person company, if you don’t tell people what you want to do next, and focus your attention on where you want to go, they are not going guess.”

Tip for success? Execute like hell

“Deliver on what you are doing, execute like hell. Focus on getting a job which is part of your career plan, and then deliver against it giving you the right to move onwards and upwards.   When hiring, I’m looking for people who have executed and driven change. These tough times necessitate more invention, so always be one step ahead of the game, and don’t wait for a difficult period. Do the heavy lifting now, get the cost structure down to be competitive; if you have a palatial office environment and your competitors are home-based, your cost structure is wrong and you are dead in the water.   You have got to have aligned cost structures and economics in order to compete in the marketplace.  I look for people who want to drive this leading edge, bleeding edge philosophy towards running a business rather than just managing and maintaining. With all of the current uncertainty, learn to shrink the timescales. I think about annual plans and keep the “big plan” in mind, but I also look at our position against the P&L every single day. We make monthly adjustments as a management team in order to stay ahead of the curve, rather than waiting for the next cycle, if I wait until November we might not still be here.”

It’s easy to be a spectator

“After a couple glasses of wine, I’m an expert on the economy and could be the Chancellor. I can tell the England rugby team why they are doing a bad job and how they can improve. It’s easy to be a spectator, but I don’t want people in my organisation to sit on the sideline; I want my people to get involved, be players, be change agents, because these environments necessitate more change than ever before.”