Loss of the Boss Doesn't Faze HP Partners

Just a few days after Carly Fiorina was fired from her post as HP's CEO, thousands of the company's partners from North and South America gathered in Las Vegas for the computer maker's annual partner conference. It was an amazing coincidence, with the timing of the incident working to HP's advantage.

Fiorina was scheduled to serve as the keynote speaker for the conference, and her presence at the gathering was widely anticipated. In past years, she had addressed thousands of partners on such issues as the company's integration of Compaq and its commitment to the channel during times when HP was trying to increase direct sales. HP executives had to scramble to make the most of the conference and deliver assurances to its channel partners that despite the loss of the boss, the company will not waver in its commitment to the VAR community or founder because of a lack of leadership.

And you know what? Those executives did as good a job as they could have under the circumstances. HP executive vice president Michael Winkler delivered the keynote and wasted no time telling those gathered that he needed to address "the large moose" in the room, referring to the CEO vacancy. Winkler broke the ice, got a few laughs and never looked back as he outlined the company's initiatives and overall product strategy. He drilled home his main point when he said the company would not be broken up. "Stick with us, and believe what we are telling you," he said. His comments received a smattering of applause from attendees who also breathed a sigh of relief on that point.

But everyone knows that issue will be fought on the street of Wall, which is lined with impatient investors unhappy about the company's stock performance. Its market cap is less than half of IBM's $155 billion.

Winkler may have gone a bit too far when he said the board was looking for a CEO who would "subscribe to the strategy of HP" rather than someone looking to tear things apart. Everyone at the MGM Grand conference room wanted desperately to believe Winkler because the industry needs a healthy, profitable HP and one that represents a clear alternative to IBM. But there are no guarantees on that front because once a new CEO is hired, he or she will have to decide what is the best course of action for the company, which today generates two-thirds of its $80 billion in revenue from the channel. After listening to the executive speeches and interviewing many afterwards, I was left wondering about HP's strategy. It spans an enormous market--the individual consumer to the CIO--in its quest to dominate the digital transformation. However, the strategies of HP's main rivals, Dell and IBM, are clearer and much easier to understand.

Strategy issues aside, on the evening of the conference's first day, you realized how quickly Fiorina would be forgotten as entertainer Jay Leno flubbed a joke, referring to her as "my driver, Ms. Fiona." What? There were only two people who got the joke, and I wasn't one of them. And partners arrived upbeat about their HP sales and the prospects for selling more HP goods and services. They departed anticipating solid growth around HP. If any executive struck a chord with them, it was HP executive vice president Vyomesh Joshi, who oversees the printer and PC division. It was "VJ" who told partners in a passionate speech not to be distracted by HP's corporate issues. "Today is the time to beat Dell and IBM," he said. "We can't wait to find the next CEO. Forget it, let's do it now." VJ is right, but he and HP must make the partner conference the starting point for that message.

The same week in which Fiorina was forced out as HP's CEO, two other top-level execs lost their jobs. Longtime solution provider executive Eva Losacco, who served as Forsythe's chief executive and was one of the few top female VAR execs, abruptly resigned followed by the shocking departure of ViewSonic president Christopher Franey. Both stories were widely reported but obviously were overshadowed by the Fiorina news. Franey built an amazing track record at ViewSonic. As a fast-rising sales executive at the display maker, Franey presided over an unprecedented period of growth and channel satisfaction while working for and with ViewSonic founder James Chu, who bet his company's fate on the channel. He envisioned a company that could displace market-share leaders, such as NEC and Sony, by leveraging the power of the channel. Franey had to deliver on that promise, and the company became a case study for how to succeed in the channel.

Its four-year, first-place showing in the VARBusiness Annual Report Card has been yet to be matched, although Samsung is showing signs it could make a run at ViewSonic, much like Tiger Woods is making a charge at Jack Nicklaus' winning record in golf. Franey was deceptively relaxed when you encountered him, but always had a wealth of pricing and competitive information on the tip of his tongue. He was also an individual you learned a great deal from every time you spoke to him. And he was a master at working his contacts, never allowing too much time between meetings or conversations to pass before you would receive a phone call or voicemail with his characteristic baritone voice. Chu rewarded Franey by sending him to Europe to oversee a large piece of the company's international operations and to spearhead a major acquisition of Nokia's display business. ViewSonic watchers knew it was just a matter of time before Franey would return to the United States to oversee the company's day-to-day operations, freeing up Chu to focus on product development and, perhaps, a long-expected IPO. Franey left an amazing and enviable legacy at ViewSonic and will undoubtedly be missed. As Chu and ViewSonic sort out who will permanently succeed Franey, they must focus on an individual with strong ties to the channel.

Let me know what you think of HP's prospects at [email protected].