Harvard Case - Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy
"Hewlett-Packard's Santa Rosa Systems Division (A): The Trials and Tribulations of a Legacy" Harvard business case study is written by Michael Beer, Gregory C. Rogers. It deals with the challenges in the field of Human Resource Management. The case study is 23 page(s) long and it was first published on : Aug 11, 1997
At Fern Fort University, we recommend a comprehensive revitalization strategy for Hewlett-Packard's Santa Rosa Systems Division (SRSD) focusing on talent management, organizational culture, and strategic planning. This strategy aims to address the division's declining performance, low employee morale, and outdated organizational structure. We propose a multi-pronged approach, including a robust talent acquisition and development program, a cultural shift towards innovation and collaboration, and a strategic realignment to capitalize on emerging technologies and market opportunities.
2. Background
The case study focuses on Hewlett-Packard's Santa Rosa Systems Division (SRSD), a once-thriving division facing significant challenges. SRSD, known for its legacy in manufacturing high-end computer systems, has experienced declining sales and profits, a shrinking market share, and a loss of competitive edge. This decline is attributed to several factors, including:
- Aging workforce: The division's workforce is dominated by experienced but aging employees, leading to a lack of fresh perspectives and innovation.
- Outdated organizational structure: The hierarchical structure hinders collaboration and agility, making it difficult to adapt to changing market demands.
- Lack of investment in R&D: The division has not kept pace with technological advancements, resulting in a product portfolio that is no longer competitive.
- Low employee morale: Frustration with stagnant careers, lack of recognition, and a perceived lack of growth opportunities has led to low employee morale and a high turnover rate.
The case study highlights the challenges faced by SRSD's leadership, particularly John Young, the division's general manager, who is tasked with turning the division around.
3. Analysis of the Case Study
To analyze the situation, we can apply the SWOT analysis framework:
Strengths:
- Strong brand reputation and legacy in the industry.
- Experienced workforce with deep technical expertise.
- Established manufacturing infrastructure and supply chain.
Weaknesses:
- Aging workforce and lack of diversity.
- Outdated organizational structure and processes.
- Limited investment in research and development.
- Declining market share and profitability.
- Low employee morale and high turnover rate.
Opportunities:
- Emerging technologies like cloud computing and artificial intelligence.
- Growing demand for customized solutions and services.
- Expanding global markets.
- Potential for strategic partnerships and acquisitions.
Threats:
- Intense competition from emerging players.
- Rapid technological advancements and obsolescence.
- Economic uncertainty and market volatility.
- Talent acquisition challenges in a competitive market.
4. Recommendations
To revitalize SRSD, we recommend the following:
1. Talent Management and Development:
- Strategic HR Planning: Conduct a comprehensive workforce analysis to identify skill gaps and future talent needs.
- Recruitment Strategies: Implement a proactive recruitment strategy to attract and retain top talent, focusing on attracting diverse candidates and leveraging digital platforms for outreach.
- Talent Management: Implement a robust talent management program that includes career development plans, mentorship opportunities, and leadership development programs.
- Employee Retention: Address employee concerns regarding career stagnation and lack of recognition by offering competitive compensation and benefits packages, flexible work arrangements, and opportunities for professional growth.
- Succession Planning: Develop a comprehensive succession plan to ensure smooth transitions and continuity of leadership.
2. Organizational Culture and Change:
- Organizational Development: Facilitate a cultural shift towards innovation, collaboration, and agility. This can be achieved through team-building initiatives, cross-functional collaboration projects, and employee engagement programs.
- Change Management: Implement a structured change management process to guide the organization through the transformation. This includes clear communication, stakeholder engagement, and ongoing support for employees.
- Corporate Culture: Promote a culture of continuous improvement and learning by encouraging experimentation, risk-taking, and feedback.
- Diversity and Inclusion: Foster a diverse and inclusive workplace by promoting equal opportunities, celebrating diversity, and creating an environment where all employees feel valued and respected.
3. Strategic Planning and Execution:
- Strategic Planning: Develop a strategic plan that aligns with HP's overall corporate strategy and identifies new growth opportunities in emerging technologies like cloud computing, data analytics, and artificial intelligence.
- Operations Strategy: Optimize manufacturing processes and supply chain management to improve efficiency and reduce costs.
- Marketing: Develop a targeted marketing strategy to reach new customer segments and promote SRSD's expertise in emerging technologies.
- Innovation: Invest in research and development to create innovative products and services that meet the evolving needs of customers.
- Performance Indicators: Establish clear performance indicators to track progress and measure the effectiveness of the revitalization strategy.
5. Basis of Recommendations
Our recommendations are based on the following considerations:
- Core competencies and consistency with mission: The recommendations align with HP's core competencies in technology and innovation, while addressing the need to revitalize SRSD's legacy and ensure its continued relevance in the evolving market.
- External customers and internal clients: The recommendations focus on understanding and meeting the needs of both external customers and internal stakeholders, including employees, investors, and partners.
- Competitors: The recommendations acknowledge the competitive landscape and emphasize the need for SRSD to differentiate itself through innovation, agility, and customer focus.
- Attractiveness ' quantitative measures if applicable: The recommendations are expected to lead to improved financial performance, including increased sales, profitability, and market share.
6. Conclusion
By implementing these recommendations, SRSD can transform itself from a legacy division into a thriving and innovative business unit. The combination of talent management, organizational culture, and strategic planning will enable the division to attract and retain top talent, foster a culture of innovation, and capitalize on emerging market opportunities. This revitalization strategy will not only ensure SRSD's survival but also position it for future growth and success.
7. Discussion
Alternatives:
- Divesting SRSD: This option would involve selling the division to another company, but it would result in job losses and a loss of HP's legacy in the computer systems market.
- Focusing solely on cost reduction: This approach could lead to short-term gains but would not address the underlying issues of talent, innovation, and market relevance.
Risks:
- Resistance to change: Employees may resist the proposed changes, particularly those who are comfortable with the status quo.
- Lack of resources: Implementing the recommendations will require significant investment in talent acquisition, training, and technology.
- Competition: The market for computer systems is highly competitive, and SRSD will need to constantly innovate and adapt to stay ahead.
Key Assumptions:
- HP is committed to investing in SRSD's revitalization.
- The division's workforce is willing to embrace change and learn new skills.
- The market for computer systems will continue to grow and evolve.
8. Next Steps
- Phase 1 (Short-term): Conduct a comprehensive workforce analysis, develop a talent acquisition strategy, and implement a pilot program for leadership development.
- Phase 2 (Medium-term): Implement a change management program, launch a new innovation initiative, and develop a strategic plan for growth in emerging technologies.
- Phase 3 (Long-term): Evaluate the effectiveness of the revitalization strategy, make adjustments as needed, and continue to invest in talent, innovation, and customer focus.
By taking these steps, HP can ensure that SRSD continues to be a valuable part of the company's portfolio for years to come.
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Case Description
Describes the process of transforming a recently formed division of Hewlett-Packard.
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