Mark Hurd's Leadership Turnaround at Hewlett-Packard
This paper examines the leadership and organizational challenges Mark Hurd inherited when he became CEO of Hewlett-Packard. It identifies four core problems — a vague strategic vision, under-management, Carly Fiorina's autocratic leadership style, and a complicated matrix structure — and explains how Hurd addressed each. The paper then offers prescriptive recommendations, emphasizing participative and delegative leadership styles, a simplified organizational structure, and a transparent reward system. Drawing on leadership theory, it argues that clear vision execution, employee trust, and participatory management were the keys to HP's subsequent turnaround, evidenced by a $10 billion sales increase and an 80% rise in stock price within two years of Hurd's appointment.
- Problems Identified at Hewlett-Packard: Four key failures under Fiorina's leadership
- Rectifying the Problems: How Hurd restructured leadership and operations
- Suggestions for Leadership and Structure: Recommendations for participative and delegative leadership
- Conclusion: Closing reflection on uncertainty and possibility
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What makes this paper effective
- It uses a clear problem–solution structure, first diagnosing HP's organizational failures and then directly linking each diagnosis to a corrective action, which gives the argument logical coherence.
- It grounds its recommendations in named leadership theory (participative and delegative styles) and cites peer-reviewed sources, lending academic credibility to what could otherwise read as general business commentary.
- It supports its claims with concrete, quantifiable outcomes — a $10 billion sales increase and an 80% stock price rise — demonstrating that the paper moves from abstract recommendations to measurable real-world results.
Key academic technique demonstrated
The paper demonstrates applied case analysis: it takes established leadership concepts (autocratic vs. participative vs. delegative styles) and applies them systematically to a real organizational scenario. Rather than describing theories in the abstract, the writer uses them as diagnostic lenses to explain why past management failed and how different approaches could succeed.
Structure breakdown
The paper opens by cataloguing four distinct problems identified under Fiorina's tenure, each treated as a discrete subsection. The second section explains how Hurd addressed these problems in practice. The third section broadens into forward-looking recommendations on leadership style and organizational design. A brief closing quotation and reference list round out the paper. This three-part arc — diagnose, correct, recommend — is a standard and effective format for applied business case writing at the undergraduate level.
Problems Identified at Hewlett-Packard
The following are the core problems Mark Hurd identified after being appointed the new CEO of Hewlett-Packard.
Vague Strategic Vision
Previous CEO Carly Fiorina's vision for HP — "digital, virtual, mobile, personal" — was vague. No one knew whether it was being executed or not. It is important that a company's vision be specific and well understood by every employee. A company cannot exist without having a clear purpose or vision.
Under-Management
Another problem with HP was that it was under-managed. Fiorina was a broad visionary who failed to provide the company with a specific and clear direction. Hurd not only gave the company a direction but also a purpose. He focused on solving problems and executing plans. He began working with divisional teams to learn about their challenges and how to address them, asking what they needed and ensuring that all operations ran smoothly.
Fiorina's Autocratic Leadership Style
HP's history reflects a culture of friendly, approachable management. Fiorina's tenure changed that. Rather than making employees feel they were all working together and could bring problems to her, her autocratic leadership style created distrust. Employees began to feel they were working for her rather than with her. Autocratic leaders tend to be controlling, bossy, and dictatorial — a poor fit for HP, which requires creativity and a participative environment. Such a style discourages employees from doing their best, undermines trust in the company's success, and contributes to reduced sales, low morale, and slow growth.
Complicated Matrix Structure
HP's complicated matrix organizational structure was one of its main operational problems. The structure required employees to report to more than one manager, which generated conflicts, confusion, and an elevated rate of errors and miscommunication. It demanded an extremely high level of synchronization among managers. Employees were unsure how their bonus and reward system worked — whether compensation was tied to individual performance or to divisional results. A company should have a straightforward reward system that is clearly communicated to all staff. The matrix structure also created difficulties for the sales division, which was reporting to five different divisions simultaneously. As a result of these misunderstandings, many talented executives left the company, and HP struggled to attract replacements.
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