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A management do-over? In many respects, Apotheker gets a second chance to rewrite his management legacy. Apotheker was pushed out due to delays in SAP's Business ByDesign on-demand suite as well as the inability to set and communicate a technology vision. Meanwhile, employee morale at SAP fell. According to a SAP memo announcing his departure, Apotheker acknowledged: The pace of change was rapid, probably too rapid for some.
The move raises a bevy of questions: Will Apotheker, a software guy, bolster HP's software portfolio, notably with the acquisition of SAP?
Will Apotheker effectively run the hardware business? Apotheker stuck to what he knows best and decided to refocus HP on higher-margin businesses like cloud computing and software. He was particularly bullish on HP's acquisition of Palm, which was made prior to his arrival at the company. He planned to let Palm's webOS software permeate the company's various hardware lines, including PCs, phones and the much-publicized TouchPad tablet. Last month, Apotheker announced yet another hard left turn: He opted to end the webOS experiment and said HP would get out of the PC business entirely -- a market that it leads both in the United States and globally.
The problem with Apotheker wasn't lack of vision as much as a lack of execution and communication, Lane said. Whitman said Thursday that the company under her leadership would stay the course and continue to transition to an enterprise software business. The ousting of its third straight CEO marks yet another dramatic crisis in a decade of turmoil for one of Silicon Valley's original pioneers.
A year earlier, Mark Hurd was fired as HP's CEO after submitting false expense reports in what appeared to be an effort to conceal a relationship with a former employee.
In , HP's chairwoman Pattie Dunn was shown the door after it was revealed that she had spearheaded a secret probe to spy on fellow board members and journalists, in an attempt to find the source of board-level media leaks. A year before that, in , then-CEO Carly Fiorina was booted out she technically resigned, but, the move wasn't especially voluntary after spearheading HP's the failed merger with Compaq.
The company's stock price was cut in half during her tenure. Fending off criticism from analysts that the board is dysfunctional, Lane argued that the board is very different than the ones of the past, comprised of 8 new directors since the company ousted Hurd. The company's technology and product development operations also ran into problems, most notably the company's efforts to bring its Business ByDesign on-demand applications to market.
On February 8 SAP's supervisory board announced that it had "reached a mutual agreement" with Apotheker "not to extend his contract" as a board member and that he would resign as CEO effective immediately. As for the channel question, an SAP spokesman pointed out that SAP, which has long been known for emphasizing direct sales, took its first steps into the channel in the timeframe when Apotheker was in charge of field operations.
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