Meg Whitman's Leadership Style and Values at HP

Introduction: Whitman and HP

Hewlett Packard (HP) remains one of the most successful computer and related services companies in the diversified computer systems industry. This paper examines the leadership style of Meg Whitman, the CEO of HP, analyzing how her leadership style aligns with the company's culture. It also examines Whitman's strengths and weaknesses as well as her personal and organizational values.

Born in 1956, Whitman has over the years earned an enviable reputation as an efficient and brilliant corporate executive keen on making her mark in a corporate environment dominated by men. Having cut her teeth at Hasbro, Stride Rite, Disney, and most notably eBay — where she served as CEO for a decade — Whitman rose to become the head of HP. She also tried her hand in elective politics, expressing interest in California's gubernatorial seat in 2010. It was after her defeat in that race that she was appointed CEO of HP.

Leadership Style and Philosophy

Taking into consideration her ability to inspire enthusiasm and relate well with others, Whitman could be regarded as a charismatic leader. In the words of Lussier (2011), "charismatic leadership is a leadership style that inspires loyalty, enthusiasm, and high levels of performance" (p. 337). At the time of Whitman's appointment as CEO of HP, the company was in a difficult state. In addition to facing stiff competition from the likes of Dell, HP's operating margins were largely in free fall. Shortly after her appointment, Whitman persuaded the company's top executives to develop a strategy for enhancing HP's competitiveness. Being a team builder, she was able to motivate others to move forward — an undertaking that helped address HP's immediate problems.

A true charismatic leader, Whitman prefers to use influence rather than force. Her natural charisma has been evident throughout her career. As Rajiv Dutta, an eBay employee, points out, Whitman possesses a rare personal magnetism that draws people to her (Hellriegel and Slocum, 2009). In Dutta's words (as cited in Hellriegel and Slocum, 2009), "she makes you want to do the right thing" (p. 317). By using influence rather than force, Whitman inspires her followers to trust in her vision. This explains her previous successes, most particularly at eBay, where she managed to improve the company's bottom line at a time when other internet companies were struggling. Her charm is also evident in her conduct and interaction with others. In addition to having a jovial personality, Whitman's trademark smile is notably infectious. Ultimately, it is through her unique charm and personality that Whitman gathers and influences followers.

In the words of Fox (2007), "personal values represent fundamental convictions that a specific mode of conduct or end-state of existence is personally preferable to an opposite or converse one" (p. 54). As Fox further points out, values are essentially a reflection of an individual's ideas about what is good or right. In addition to being impartial, Whitman is an honest individual who embodies the basic tenets of integrity. Throughout her career, she has not been accused of any kind of impropriety. It is also important to note that Whitman does not routinely tell people what to do; instead, she prefers to motivate others toward action — an indication that she values initiative. Her tendency to consider everyone's viewpoints before adopting a course of action also reflects her accountability and respect for teamwork. Some of the decisions Whitman has made in recent years have further demonstrated that she is both flexible and courageous. A notable example is her decision to merge HP's PC business with the Printer unit. Whitman has also shown a tendency to put customers' needs first, a value that, according to Lehman and Dufrene (2008), was instilled in her during her time at Procter & Gamble.

Organizational values are those things seen as important or critical in guiding the individual behaviors of people within an organization. In some cases, organizational values align with the personal values of top executives. At HP under Whitman, evident organizational values include — but are not limited to — service to clients, integrity, and professionalism. Teamwork is also held in high regard at HP.

Personal and Organizational Values

The values of a firm's top executives serve as indicators of the ethical bearing of the organizations they lead. Given the important role that values play in both professional and private life, their relevance to sound decision-making cannot be overstated. There exists, therefore, a strong connection between a leader's values and the ethical behavior within an organization.

To begin with, Whitman's values could result in enhanced employee respect and loyalty. This respect and loyalty is of great importance in minimizing instances of embezzlement, fraud, and sabotage. Similarly, Whitman's integrity, professionalism, and impartiality help transform HP into a values-based decision-making organization. By ensuring that the company is not motivated solely by the need to maximize shareholder wealth, Whitman seeks to ensure that HP identifies and respects the needs of other stakeholders, including communities, employees, suppliers, and others. This approach minimizes the probability of scandals whose underlying motivation is typically the enhancement of the bottom line.

One of Whitman's key strengths is her ability to communicate effectively and relate well with others. According to Lehman and Dufrene (2008), Whitman's track record clearly demonstrates that, in addition to being a good collaborator and relationship builder, she is also a good listener. The ability to communicate in an efficient and coherent manner is essential to the successful articulation of a leader's vision. This strength has enabled Whitman to implement change where others might have failed. For instance, during her tenure at eBay, she was able to institute a number of changes — including splitting the business into several categories — without alienating employees. Secondly, she comes across as decisive, having made major decisions in the past aimed at furthering the success of the organizations she runs. One of the most notable decisions Whitman made upon becoming CEO of eBay was banning the sale of weapons on the company's platform. Lastly, Whitman is courageous and is not afraid of criticism.

Like any other business leader, Whitman also has weaknesses. She tends to be hot-tempered under pressure; she has been accused of shoving and yelling at an employee, an action she attributed to "tensions that surface in any high-pressure work environment" (Ferris and Treadway, 2012). As Ferris and Treadway also observe, Whitman can be unreasonably demanding. Her flair for unpopular — though mostly beneficial — business decisions could also be viewed as a weakness, since some leaders have experienced failure as a result of going against conventional wisdom.