Why would Mark Hurd take such risks as the head of HP?

Mark Hurd ran the the world’s largest technology company, Hewlett-Packard, but he blew it.

Bill Hewlett and David Packard started HP in 1939, and they became Silicon Valley icons because of the significant company they built, their belief in hiring great people and the vision they articulated of a future driven by technology.

They came up with a management style dubbed “The HP Way,” which spelled out how to run a profitable company and live up to words such as “trust,” “respect for individuals,” and “uncompromising integrity.” They’re rolling over in their graves now: Hurd resigned today after admitting to a failure to live up to HP’s standards. His downfall followed a board investigation into sexual harassment allegations.

Hurd managed to wow everyone in his five years at HP by reviving the company that had struggled under his predecessor, Carly Fiorina. Hurd focused on execution, strengthened HP’s profits, and made a series of acquisitions, including the $13 billion purchase of EDS. When the dust cleared, HP had become bigger than IBM. That has to go down as one of the most monumental management achievements in tech history. Hurd was pretty much in his home stretch. He could have retired and run for public office.

But HP seems to be accursed, always sinking into some kind of soap opera. It’s tragic and stupid that Hurd is being brought down by what some would consider to be a “non-material event” of his own making.  The board, already sharpened by its failures and scandals of the past, stepped up and investigated, and what did they find? Padding of an expense report when he’s got millions to his name. “What was he thinking?,” we ask. And then we remember greek mythology, and the tragedy of human weakness.

The founders of HP had their own personal flaws as well. But they weren’t brought down by them, and their actions never put the company at risk. Now, without its turnaround CEO, HP is rudderless. Hurd’s shoes can’t be filled easily. The CEO who replaces him will have a steep learning curve to understand the complex and sprawling company that is HP. It is a critical time for the company. The company just bought Palm for $1 billion, and is readying to do battle with Apple in the high-stakes but extremely competitive mobile phone business. How will HP, as the world’s biggest PC maker, make the transition into mobile devices such as smartphones and tablets, at a time when these devices are the strongest ares of economic growth?

Doubly hard to understand is how this happened to Hurd when he, more than almost any major executive, appeared so disciplined and true to message. He eschewed the flamboyance and attention-getting antics of his predecessor. He demonstrated a sharp intellect when it came to balancing the risks and opportunities of running the huge corporation. What’s more, he presided over HP back in 2007, and witnessed first hand events that showed just how easily personal conduct can sink you: Patricia Dunn, the former chairman of HP, was forced to resign after launching a botched spying operation against  journalists and HP board members in an attempt to plug leaks. Hurd watched Dunn go down in flames. And yet he wasn’t careful to rein in his own behavior. There’s an arrogance to power.

Maybe it’s one of those Alpha Male flaws. The leader of the pack proves his mettle, and then seeks his rewards.We’ve seen this over and over again, mostly with politicians, but occasionally with corporate leaders. The best explanation I have heard so far is that Hurd is only human.

One thing is for sure: HP should try to put a stop to this curse once and for all. It should find a leader who can live up to the company’s goals of running an outstanding business and behaving with integrity — so that it resume great tradition that had set the company on its way, and had become an inspiration to all.

  • http://www.leadsexplorer.com LEADSExplorer

    Any starlet (Pamela, Paris Hilton,…) gets a benefit from hot steamy video's.Any CEO covering-up with expense notes runs into problems.The CEO should leak the hot steamy video's too in order to save his life ?.

  • http://sonic.net Peter

    There has to be more to the story beneath the veneer and perhaps we will never know. It seems there is trend toward lack of integrity and judgement in our institutional leadership anymore. Ethics? Just a tired and anachronistic concept these days. *Sigh*

  • eli77025

    The author writes “One thing is for sure: HP should try to put a stop to this curse once and for all. It should find a leader who can live up to the company’s goals of running an outstanding business and behaving with integrity — so that it resume great tradition that had set the company on its way, and had become an inspiration to all.”Does he think that HP hired Mr. Hurd knowing that he would do something dishonest?How does a company know for certain that its new CEO will be honest- in the future? Clairvoyance?

  • http://www.siliconvalleywatcher.com/ Tom Foremski

    I'm still not clear what the reason was, sexual harrassment? Fudging of expenses? Clearly, there was something else going on and because of this, whatever the reason, Hurd was ousted.

  • constableodo

    Pricks like this don't even consider what they're doing is wrong. They think that they're so powerful and perfect that they're entitled to do anything they please. They see the whole world as their oyster. Mr. Executive Untouchable. These guys are very fortunate to have the drive and stepping on people is just a way to get to the top. In the end, he still gets rewarded for hanky-panky with a huge bonus. I'd be happy to screw up and take advantage of fellow workers if they're going to reward me for it when I get caught. What happens when you've caught someone taking money? You give the prick more money to leave. Some people are truly blessed. No matter what sort of crap they do, they get paid hugely for it. I guess he'll be getting lucrative job offers from other companies pretty soon.If I was one of HP's ex-employees that got laid off, thanks to this wanker brilliant job cuts, I'd want to rip his gonads off and feed them to him. God, I hate these crooked executive bastards for making life unbearable for low-level employees just so they can line their own pockets with cash.

  • JamesKatt

    Rubinstein will make a great HP CEO. He will take HP to the dark ages.

  • http://bottomlinelawgroup.com/ Antone Johnson

    Three words: Helen of Troy. From the ancient Greeks to Bill Clinton, Tiger Woods or Mark Hurd, it seems certain character weaknesses bring down even the most gifted and powerful of men. Is it hubris (another ancient Greek insight), or are these people simply not immune to the flaws that make us humans, not gods — notwithstanding the responsibilities and expectations we place on them?

  • http://twitter.com/LionelBarrymore Lionel Barrymore

    I am reminded of the lyrics in old country and western song, “Its a long slow climb to the top, but just a single step down”

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