PEAK TEAMS CASE STUDY - HP SOFTWARE

ORGANIZATIONAL TRANSFORMATION

Background

In 2005, the HP Software business was about $1B in revenue and was generating an operating loss of -7% of revenue.

Tom Hogan joined as Senior VP in 2006 and set about transforming the failing business.

To achieve this transformation, Tom implemented an aggressive strategy of expansion and acquisition, targeting market leaders across the industry. The pace and scope of this strategy was unprecedented, with plans to acquire a new company every three to six months, and an initial investment of $7B to be spent in the first 18 months.

Objectives

The key objectives for the leadership team were to retain key talent, transform the existing culture and achieve profitability in a short time.

Peak Teams Role

As with most major transformations, the greatest challenge and risk was with the alignment, retention, teamwork, and inspiration of the new team. HP turned to Peak Teams as an integral partner in mitigating this risk

Results

Since 2006, the HP Software business has tripled in size to ~$3B in revenue (projection for 2008) and improved profit margin to 18 to 22% of revenue. From 2006 to 2008, HP Software delivered about $1B in profit for a business that had never made money at HP. With an organic growth of 13% and inorganic growth of ~35%, Software is now the fastest growing and most profitable business within Hewlett Packard.

"In terms of team-work, this has been the best experience I have had in 12 years. After our first meeting in Chicago, we were inspired to treat this turn-around as a real expedition.”

- Vincent Pilette, CFO