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Unformatted text preview: ined: In Search of Scale and Scope, SM-130 p. 22 these people were uncertain about the outcomes of the merger, how it would
affect their respective jobs, but they were always positive about the merger.
The merger affected us directly. Still, by 2002, there has been little change in the
nature of the debate and wrestling that takes place with the merged HP and Circuit
One important early victory for the new HP was its 10-year, $3 billion contract to provide IT
services to the global consumer products company, Procter & Gamble (P&G). P&G looked
closely at partnering with several different companies, including EDS and IBM, but selected HP.
Linda Clement-Holmes, General Manager, Global Business Services, IT Infrastructure and
Governance for P&G said the company evaluated candidates on the basis of capability/quality,
cost and culture. With the capabilities of EDS and IBM well known, it seemed that the deciding
factors in this decision came down to cost and culture. Clement-Holmes said, “We were
comfortable doing business with HP. They appear on many of the same lists as we do, in terms
of being among the best companies to work for. Since we were transferring 2,000 IT employees
to them and since we had to work with them for the next 10 years, that was important to us.”29
Clement-Holmes likened the relationship to a marriage. She said P&G and HP were now “back
from the honeymoon and settling in to living with each other. As in a marriage, from time to
time, we find out things about the other that come from living together, things that are the
equivalent of one spouse squeezing the toothpaste from the center of the tube.” Clement-Holmes
ran an organization at P&G that worked to resolve any such issues that arose. Each member of
this organization had a counterpart at HP. For example, Clement-Holmes worked closely with
Dave Middleton, the global P&G account representative at HP as well as with Dan Talbott, the
HP sales executive who ran the negotiation with P&G. Wi...
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This document was uploaded on 02/16/2014 for the course MGMT 237 at UPenn.
- Spring '14