HP_and_Compaq_Combined__In_Search_of_Scale_and_Scope

However other customers thought that hps legacy of

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Unformatted text preview: thin the first year of the contract, most issues were resolved before they reached these three. Any issues these three could not resolve went to the president of P&G Global Business Services and Ann Livermore, head of HP Services. Only a few have been elevated to this level. In March 2004, HP and P&G announced that they were expanding the contract to include P&G’s global account payable operations.30 HP received very high scores from customers for responsiveness during the merger integration and in the time that followed. Something even less tangible than responsiveness, but perhaps even more important for HP was inventiveness. By most accounts, HP had long been a technology leader, on the forefront of technology with its R&D. Did this capacity survive the merger? Some customers believed that if anything, HP was even more innovative and better at getting its innovations to market. However, other customers thought that HP’s legacy of breakthrough innovation had been de-emphasized after the merger.31 29 Authors’ interview with Linda Clement-Holmes, March 25, 2004. “HP Expands Relationship with Procter & Gamble; Announces New Finance and Administration Business Processing Outsourcing Deal,” HP press release, March 16, 2004. 31 For more on this issue, see Robert A. Burgelman and Philip E. Meza, “The New New HP (A): Leading Strategic Integration,” SM-125A, Stanford Graduate School of Business. 30 This document is authorized for use by Xiaolei Cong, from 11/30/2012 to 2/28/2013, in the course: MGMT 237: 001 Management of Technology - Chaudhuri (Spring 2013), University of Pennsylvania. Any unauthorized use or reproduction of this document is strictly prohibited. HP and Compaq Combined: In Search of Scale and Scope, SM-130 p. 23 LASTING ORGANIZATIONAL CHANGE CAPABILITIES With the integration well under way, Clarke and McKinney went in different directions. Clarke went on to oversee HP’s global supply chains.32 McKinney was tasked with finding and driving new capabilities that stemmed from the integration and resulting organization. One lasting capability the c...
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