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Management Shake-up at HP
Tue Jun 14, 2011 - 8:22 PM EDT - By Annie Latham



On Tuesday, HP announced organizational changes that will more closely align its corporate structure with the strategy it announced in March. The announcement said the organizational changes "will increase transparency for these business functions relative to the company's strategic roadmap, sharpening the executive team's focus on customer-facing businesses, further enabling opportunities for synergies across business units, and positioning HP for the opportunities it sees in the market."

In his post he stated CEO Leo Apotheker ran out of patience.

Apotheker kicked veteran Enterprise group head Ann Livermore upstairs to a board position and removed her from day-to-day responsibilities, indicating he was no longer willing to wait for Livermore to move the needle on services. In one fell swoop he broke apart the Enterprise group, making server chief Dave Donatelli, software head Bill Veghte, and global sales leader Jan Zadak, all of whom reported to Livermore, direct reports to the CEO.



Livermore, who joined HP 29 years ago, was the head of the company's Enterprise unit (a $60 billion business that accounted for half of total revenues and encompassed two-thirds of total HP staff).

In a related story appearing at the All Thing's Digital site, Arik Hesseldahl made note of the reaction Shaw Wu, a tech analyst with Sterne Agee, had. In a note issued to clients he indicated that he likes what he sees.

Donatelli is effectively the new head of the enterprise business, succeeding the legendary Livermore who had more than once been considered a serious contender for the CEO job. He says that given HP's renewed emphasis on software Veghte will play a key role as well. "While we believe it is too early to judge whether these changes are for the better or not, we do believe they make sense in streamlining operations and increasing accountability," Wu writes.


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