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Harvard Case - HP Enterprise Group in 2015: Igniting Organizational Transformation

"HP Enterprise Group in 2015: Igniting Organizational Transformation" Harvard business case study is written by Robert A. Burgelman, Debra Schifrin. It deals with the challenges in the field of Organizational Behavior. The case study is 28 page(s) long and it was first published on : Jun 26, 2015

At Fern Fort University, we recommend a multi-pronged approach to HP Enterprise Group's (HPE) organizational transformation, focusing on building a strong foundation for sustainable growth through leadership development, cultural change, and strategic talent management. This approach will empower HPE to navigate the evolving technology landscape, foster innovation, and achieve its ambitious goals.

2. Background

This case study examines HPE's strategic decision to split into two separate companies, HP Inc. and HPE, in 2015. This move aimed to streamline operations, enhance focus, and unlock value for both entities. However, the transition brought challenges, including a need for organizational restructuring, leadership changes, and a shift in corporate culture. Meg Whitman, CEO of HPE, faced the daunting task of leading this transformation, fostering a culture of innovation and collaboration, and navigating the complex dynamics of a global enterprise.

3. Analysis of the Case Study

Applying the Lewin's Change Management Model:

  • Unfreeze: HPE needed to unfreeze its existing culture, characterized by siloed departments, bureaucratic processes, and a lack of agility. This required open communication, transparency, and leadership buy-in to acknowledge the need for change and address employee concerns.
  • Change: The transformation involved restructuring the organization, implementing new technologies, and fostering a collaborative mindset. Cross-functional teams were crucial for driving innovation and ensuring seamless integration across departments. This phase required effective communication, training programs, and support systems to guide employees through the transition.
  • Refreeze: This phase focused on solidifying the new organizational culture, processes, and behaviors. Performance management systems were critical to reinforce desired behaviors and celebrate success. Employee engagement initiatives and recognition programs played a vital role in fostering a sense of ownership and commitment to the new culture.

Additional Frameworks:

  • Organizational Culture: The case highlights the importance of culture alignment with strategic goals. HPE needed to move from a hierarchical, risk-averse culture to one that embraces innovation, collaboration, and agility.
  • Leadership Development: The success of the transformation depended on transformational leadership from Meg Whitman and her team. This required developing leaders with strong emotional intelligence, communication skills, and the ability to inspire and motivate employees.
  • Talent Management: HPE needed to attract, retain, and develop a diverse workforce with the skills and expertise necessary to thrive in the evolving technology landscape. This involved strategic hiring, talent development programs, and performance management systems to ensure a high-performing and engaged workforce.

4. Recommendations

1. Leadership Development:

  • Transformational Leadership Training: Implement a comprehensive leadership development program for all levels of management, focusing on developing emotional intelligence, strategic thinking, and change management skills.
  • Mentorship and Coaching: Establish a formal mentorship program to connect senior leaders with emerging talent, providing guidance and support.
  • Leadership Succession Planning: Develop a robust succession plan to ensure continuity and a pipeline of qualified leaders for future growth.

2. Cultural Change:

  • Open Communication and Transparency: Foster a culture of open communication by encouraging feedback, promoting dialogue, and sharing information transparently.
  • Employee Engagement Initiatives: Implement initiatives that foster employee engagement, such as team-building activities, recognition programs, and opportunities for professional development.
  • Diversity and Inclusion Programs: Create a diverse and inclusive workplace by promoting equal opportunities, celebrating diversity, and fostering a sense of belonging for all employees.

3. Strategic Talent Management:

  • Targeted Hiring and Recruitment: Develop a strategic hiring plan to attract top talent with the skills and expertise needed for HPE's evolving business needs.
  • Talent Development Programs: Invest in comprehensive talent development programs to enhance employee skills, knowledge, and leadership potential.
  • Performance Management System: Implement a performance management system that aligns with HPE's strategic goals and provides clear feedback and development opportunities.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Consistency with Mission: The recommendations align with HPE's mission to deliver technology solutions that help customers achieve their business objectives. The focus on leadership development, cultural change, and talent management will enable HPE to attract and retain top talent, foster innovation, and remain competitive in the technology landscape.
  • External Customers and Internal Clients: The recommendations prioritize customer satisfaction by ensuring a high-performing workforce capable of delivering exceptional service and innovative solutions. Internal clients will benefit from a more collaborative and supportive work environment, leading to increased productivity and engagement.
  • Competitors: The recommendations aim to position HPE as a leader in the technology industry by attracting and retaining top talent, fostering innovation, and building a strong brand reputation.
  • Attractiveness: The recommendations are expected to yield positive results, including increased employee engagement, improved productivity, and enhanced customer satisfaction. These factors will contribute to HPE's long-term growth and profitability.

6. Conclusion

HPE's organizational transformation presents a significant opportunity for the company to emerge as a leader in the technology industry. By focusing on leadership development, cultural change, and strategic talent management, HPE can create a high-performing, innovative, and customer-centric organization capable of navigating the evolving technological landscape.

7. Discussion

Alternatives:

  • Mergers and Acquisitions: HPE could consider acquiring smaller companies with specialized expertise to accelerate innovation and expand its market reach. However, this approach carries risks related to integration challenges and cultural clashes.
  • Outsourcing: HPE could consider outsourcing certain functions to reduce costs and enhance efficiency. However, this strategy could lead to job losses and potential loss of control over critical processes.

Risks and Key Assumptions:

  • Resistance to Change: Employees may resist change due to fear of the unknown, loss of control, or perceived threats to their job security.
  • Cultural Clash: Merging different cultures can lead to conflicts and communication breakdowns, impacting productivity and morale.
  • Lack of Leadership Buy-in: Without strong leadership support, the transformation effort may lose momentum and fail to achieve its goals.

8. Next Steps

  • Develop a Detailed Implementation Plan: Outline specific actions, timelines, and resources required to implement the recommendations.
  • Communicate the Vision and Strategy: Clearly articulate the vision for the transformation and communicate it effectively to all employees.
  • Establish a Change Management Team: Assemble a dedicated team to oversee the implementation process, address challenges, and monitor progress.
  • Regularly Monitor and Evaluate Progress: Track key performance indicators (KPIs) to measure the effectiveness of the transformation and make adjustments as needed.

By taking these steps, HPE can successfully navigate its organizational transformation and emerge as a stronger, more innovative, and customer-centric organization.

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Case Description

This 2015 case is about the internal organizational transformation of the Hewlett Packard (HP) Enterprise Group (EG), which brought in $28 billion in annual revenue and had 50,000 employees. "EG Ignite," led by a small team of 10 people who reported directly to the head of EG, was designed to be the catalyst for the transformation and provide both a framework and problem-solving support for the most critical transformation initiatives. These included: 1) accelerating growth, 2) simplifying company processes, 3) becoming more customer-centric, 4) driving down costs, and 5) driving go-to-market changes. EG's leadership was especially focused on transforming the front line sales force. The EG Ignite team served as the interlock point between functions, business units, and regions, and it helped with the execution of the initiatives. At the same time EG Ignite was in full swing (18 months in), Hewlett Packard was in the process of splitting the $111 billion, 75-year-old company into two independent, publicly traded companies: HPI (Personal Systems and Printing business segments), and HPE (Enterprise Group, Enterprise Services, Enterprise Software, and Financial Services). The split came out of HP's desire to act with greater speed and agility so it could better compete in an environment in which technology, market, and customer expectations were rapidly changing. As a critical part of HPE, the Enterprise Group had to be sure its transformation was speedy, successful, and aligned with the imperatives of the company as a whole.

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