Internal memo shows new leaders in merged HP

Top spots in technology go to Compaq officers; HP outlines six-month merger plan

Hewlett-Packard sent details to its employees of its new management assignments in the merged company, postings that show Compaq officers getting the plum jobs in technology.

In a statement HP also filed with the US Securities and Exchange Commission (SEC), the company named Compaq’s Shane Robison as the Chief Technology Officer for the combined company. Robison holds the CTO job at Compaq. Bob Napier, the current CIO of Compaq, was also named as the CIO for the combined HP-Compaq.

The SEC has not approved the merger, and shareholders haven’t given it the green light either. But that hasn’t kept HP CEO Carly Fiorina from naming the roster of top officers — all senior vice-presidents — who will report directly to her.

“Prior to the closing of the merger, they will name integration teams to drive the planning for their respective functional integration efforts,” Fiorina said in the memo. “Their responsibilities will become effective upon closing of the merger.”

Introduced as “The New Corporate Team,” the executives include many HP officers as well, but mostly in non-technical posts. One exception is Dick Lampman, who heads today’s HP Labs. Lampman will oversee the new HP Labs, which will include three of Compaq’s US-based research labs.

Other senior VPs named included Allison Johnson, the current VP of HP’s Global Marketing and Communications, who will head Brand and Communications for the merged firm; Susan Bowick, who takes over Human Resources after serving as HR VP at HP; and Debra Dunn, named to a position called Senior Vice President of E-Inclusion and Community Engagement. Dunn is currently VP of Strategy and Corporate Operations at HP.

“The selection decisions were not easy,” Fiorina stated in her memo. “We have strong leaders in both companies. But I am confident that these senior managers will provide outstanding leadership for the new company and for the integration.”

Since the managers don’t know when the merger will close, current leaders like HP’s Chief Technology Officer Rich Demillo will continue in their positions. “Each of the senior leaders at the two companies continues to be responsible for the success of their current organizations,” Fiorina said. “It is critical that we remain focused on meeting our current business and financial goals, and that we operate as independent companies and competitors until Compaq and HP officially become one.”

A Q&A document along with the memo said the appointments were a product of joint decisions by Fiorina and Compaq CEO Michael Capellas. For organizations which have gotten a new leader — like the HP e3000 division’s sector of HP, being led by Compaq’s Peter Blackmore — HP advises its staff to continue as if the merger hasn’t happened.

“The Integration Team and executive council of the new HP are in the process of reviewing management roles, and will continue to do so until the merger closes,” the Q&A document stated. “While we can do much of the merger planning — including the identification of some of the new management teams — we cannot begin to execute on our plans until the merger is approved. Focus on your current priorities.”

HP is not planning on having the merger approved until early April, according to its internal documents. The top priorities of its Integration Team, according to language in the memo, are to:

• Establish a timeline with top-level milestones from now “until the regulatory and shareowner approval (we are assuming that the approval will take at least six months, but must be prepared in case this time is shorter).”

• Refine financial goals and make sure that all integration teams have goals that tie to the overall financial goals.

• Ensure clear and effective communication to all stakeholders.

• Complete the top-level organization design.

• Name a top-level management team “(Carly and Michael will drive this).”

• Define the IT architecture.

• Create road maps in the businesses and functions, and tie these to the top-level milestones.

• Complete the integration team “so we can get all this done.”

Webb McKinney, a 32-year veteran of HP who’s one of the leaders of the Integration Team, added some notes on the pace and spirit of the merger activities. The comments seemed designed to reassure HP staff that the nature of the merger wouldn’t be fully known for some time — and employees of both companies need to continue to compete.

“The proposed merger will accelerate our already existing strategy — not change it,” McKinney said. “So, it’s even more important that we keep on the business path we’ve set out over the past several months. We must continue to concentrate on serving customers and beating our competitors.

“The integration will be an extensive and thorough process,” he added. “As such, it will be a few months before many decisions are made and can be communicated. We will provide as much advance information as possible about when decisions will be made. Our promise to you is that we’ll let you know as much as possible as quickly as possible. We want to partner with Compaq, not just assimilate Compaq into HP.”