A Letter To Fiorina

Your next big appointment, of course, is a new Americas channel chief to replace Kevin Gilroy. Ms. Fiorina, this new channel chief does not report directly to you under the current HP organizational structure. But it is an appointment you and only you should make, and a post that should report to you. HP's fate as a company rests squarely in the hands of that executive.

Your ability to implement two separate business models--one to take down Dell in the SMB market and another to replace IBM as the top services and infrastructure provider in the enterprise--will depend on how that new channel chief performs.

You can talk all you want about HP's vision and how it has a unique strategy, but it all comes down to two separate business models and two separate, very distinct groups of partners in the field. The eHip enterprise partner problems live a world away from the logistics issues faced by smaller SMB partners. Both sets have different gross margin structures, service levels and a whole different class of issues when it comes to engaging with HP. Ms. Fiorina, the real problems in the field are not bubbling up to you. HP channel reps are trying to do the right thing, but their pleas for help are disappearing into a management black hole.

You have thousands of loyal partners. They are anxious to engage with HP because of its incredible products. The industry needs a healthy, vital and channel-engaged Hewlett-Packard. You must take a decisive role to make sure any and all channel issues are addressed head-on.

Last week at the XChange 2004 conference in Chicago, new IBM General Manager of Global Business Partners Donn Atkins received a message from IBM CEO Sam Palmisano asking how the company's channel message was being received. A small, but telling detail. By the way, Palmisano was also first to question his top managers about what they were doing to capitalize on HP's recent quarterly earnings disappointment and management turmoil.

Now is the time to send a clear message to the channel. Make that channel chief a more strategic post that reports directly to you. HP's future depends on it.

What do you think HP's Carly Fiorina should do? Let me know at (781) 839-1221 or via e-mail at [email protected].