MMS 5101 Case Study: Carly Fiorina, Hewlett-Packard and Leadership

This case study examines Carly Fiorina's leadership as CEO of Hewlett-Packard (HP). It begins by outlining HP's historical management style, the 'HP Way', which emphasized employee-centric practices and decentralized decision-making. The case then analyzes Fiorina's leadership through the lens of both trait and behavioral approaches. Fiorina's traits, including self-confidence and persistence, are discussed in relation to her decisions, such as the Compaq acquisition. The analysis contrasts her task-oriented leadership style with HP's traditional employee-focused culture, highlighting the clash that resulted. The study also considers gender-related and emotional intelligence aspects of her leadership. The case concludes by drawing parallels with other leaders and offering insights into how Fiorina could have approached her role differently, emphasizing the importance of understanding organizational culture and building relationships. It contrasts Fiorina's approach with that of Carlos Ghosn at Nissan, underscoring the significance of self-development in leadership.

Case Study – Carly Fiorina: Hired and Fired at Hewlett-Packard
MMS 5101
Dr. M. D. Pushpakumari
By
W.H.D. Deshan - 5266FM2019007
MBA/MPM/M.Sc. 2019

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Carly Fiorina: Hired and Fired at Hewlett-Packard
The Hewlett-Packard Company is one of the oldest companies in Silicon Valley in United
States. When the company was founded by Bill Hewlett and David Packard in 1930’s,
they have introduced a management concept which was a novelty as well as radical at the
time and perceived as an egalitarian, decentralized system that came to be known as “The
HP Way”. It was a concept which consists of more people oriented leadership style and
decentralized, horizontal hierarchical management system which had led company to be
controlled in a teamed structure which are given freedom to operate on their own
decisions with minimum intervention of top management, but finally all the
collaborations were forwarded toward the attainment of entire organizational goals. Also,
the employees were recognized as most important stakeholders by top management
hence, various benefits were given to them such as all-company profit-sharing, flexible
work schedules, tuition assistance and job sharing...etc. while the expected returns were
the increase of motivation, creativity and innovation and work orientation of each
individual employee.
As a decentralized company which was being run by almost equal level of delegation on
each employee, it may quite difficult to direct all the people in same way similarly in a
centralized management system with an authoritarian leadership. Since the each
employee has a right to give his/her opinion on corporate decisions, it would be a
challenge in such management culture to take a decision on his/her own will. Also, any
top leader who are going to lead a large corporation which is much more driven and
controlled by norms, traditions and values rather than rules and procedures must be
carefully handled and must learn about them prior to launch any kind of restructure or
reformation as per his/her own visions and objectives.
When it is looked depth in the leadership of Carly Fiorina at HP as CEO, the above
explanation is prominently visible in her role. Fiorina was unable to perform as a
successful leader and had to be rejected from her company in a relatively short period of
time, despite of her efforts to raise the company to a prosperous level in ever changing IT
industry.
When there is analysed the Fiorina’s leadership with related to Trait Approach, there can
be identified some significant traits that Carly had posed in her leadership practice.
Though it could tend to be believed that she was able to manage and overcome resistances

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and grievances from existing employees including the board of directors, the
effectiveness of all those are still in question, as the company was in a slope throughout
the period she was ruling.
The traits which were posed by Fiorina and how those are related to the actions, strategies
taken by her and incidences happened during her leadership at HP, can be listed as
follows;
1. Self-confidence and Judgment, - These are the personality related traits can be seen on
Fiorina’s leadership character which are more highlighted in the event of acquisition of
rival Compaq. She heavily believed of outcomes of the action though the external
advisors warnings of negative consequences and also confidently convinced the all the
related parties to get support and approve the transaction. These are posed by her in
positive way.
2. Achievement drive and Persistence against obstacles- Fiorina couldn’t be stopped by
the negative comments, the restrictions of peers as well as subordinates and pursued them
on the target what she thought to be right by defeating skeptics and other obstructers
internally and externally. The Compaq buyout is also reflect these work related
characteristic traits of her significantly and positively.
3. Independence- It was criticized by many that she had attempted to change the flat
structure of HP and introduced a top-down control system and she was able to apply an
autocratic style. But this approach could be helpful to minimize the interferences from
other on decision making and gain the independence of managing the things as she
wished.
4. Sociability & interpersonal skills – This is area (Social characteristics) somewhat she
had appeared to be failed in her leadership, as the relationships with peers and
subordinates were eroded gradually throughout her period as the CEO at Which had led
her to blame the HP executives on poor performance of company by pointing out all the
faults on them, instead of admitting that she was also part of it. This is was finally ended
up by many key executives leave the company and the matter shows well how she was
weak in build and keeping up a proper and stronger relationship with her partners well.
However, as per viewed through traits approach, the Fiorina’s leadership can be explained
as a mixed bag of both positive and negative traits, but it is not sufficient and validate to

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discuss her leadership holistically. There can be used an analysis based on Behavioural
approach as well which is more describing of any leader and his/her style more than being
based on traits.
Fiorina’s leadership style is prominently a task-orientated style, as she organized and
defined relationships in her company in various forms of activities such as scheduling
works and clarifying expectations, assigning specific tasks (especially in the step of
developing a team of executives to oversee integration of HP and Compaq), and more
important is getting work done is more important to her than employees benefits and their
satisfaction of work. This is highly contrasted to the existing leadership style in HP before
Fiorina’s arrival which was entirely an employee oriented and consisted with friendly,
trustful, leaders , who run with participative decision making methodologies. The result
was simply was the collision of Fiorina’s Autocratic, Boss-centric and task oriented
leadership with the employees of HP’s expectations of a leadership which is Democratic,
employee-centred and people oriented . However, this thing was an opposition to a
common belief that women leaders are more oriented in interactive leadership approach,
while Fiorina had posed what most likely to be posed by male leaders.
However, there are two more things could not be able to seen at a glance, but visible when
deeply explored, that is the gender-related and emotional related-leadership
characteristics. As a women , she may had a traditional gender based opposition from her
male peers as well as subordinates, since it is a traditional behave of men think of women
should not control them, but rather must collaborate. In such situation, Fiorina could be
flexible and apply a much relationship building approach to overcome it, but instead of
that, she was tempted to be more ego and make the way to clash with others. Further it
can be seen that in case of firing on HP executives for poor performance as stated before,
the emotional intelligence seems to be weaker in her leadership character as there should
not express anything based on feelings, but think rationally and deliver the message what
is needed to emphasise with controlled emotional environment.
Finally, there can be concluded one thing, that several female leaderships like Carly
Fiorina throughout the history were existed which raised and fallen prematurely.
Especially , The an ex-Prime minister of Britain in 1980’s , Margaret Thatcher, known as
“Iron Lady” who made some radical political and economic changes and took
controversial decisions in country had faced similar turbulence and then due to several

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national slope-downs came up such as unemployment and several other economic crisis
led to force her on the resignation by her own party government members which is highly
similar case as the fired on Fiorina by board of directors of HP. Margaret had also shown
many similarities in her leadership when compared to Fiorina’s which was autocratic,
top-down control, and headstrong decision making.
Then what are the things that Fiorina can follow and how she can correct her past mistakes
of her first CEO Job? There are several; first thing is though how much you are
experienced as a leader in elsewhere, when you are given to lead a new place with a new
culture, here should not be urge to make one-night changes in existing organization
culture. Even though how much existing system is inefficient and unproductive, first step
must be the build-up relationship and confidence in each level of employees by taking a
participative approach in examine the causes of current weaknesses. Any planning and
implementations must be taken with getting collaboration of every level. Even change of
structure is possible with minimum resistance, if the changes are taken as steps, from less
resistive to higher resistive and implement them through making awareness about benefits
properly.
Fiorina can take an example of one of the most successful business leaders in early
2000’s, in the same time she ruled the HP. He is Carlos Ghosn, the CEO of Renault-
Nissan Alliance then time. The Ghosn appointed as CEO of then near bankrupt Nissan
Moto Corporation in Japan through a takeover by Renault Group, much similarly in case
of HP-Compaq merger, in same year Fiorina was appointed as CEO at HP. Ghosn also
faced a considerable resistance from existing Japanese management of Nissan which was
also an employee centric, team oriented system and driven by traditions and values like
in HP way. Also, there was a reluctance to change as it was practiced over many years in
Japanese management culture. However, Ghosn was able to overcome those barriers by
taking cleaver strategies in his leadership on Nissan by mostly linking with existing
structure and implement necessary changes step by steps with effetely communicating
the gains to employees and finally was able make company as a one of the most profitable
auto-maker in industry within same time period Fiorina took on her reformation process.
Unlike Fiorina, who fired her peers and subordinates, he made a commitment at first that
he will resign unless it was able to reach set goal in promised time period which represents
the sharing of responsibility on each of the company equally, including himself. The

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Ghosn’s leadership style was very interesting to study as it is a very complex mix of both
task oriented and employee oriented leadership styles, while decision making was
autocratic, implementations were done through a participative way.
Finally, there should be emphasized that a leadership can be explained and can be thought
up to extent, it must be developed as a self-development rather than a training. Theories
could help in certain conditions while leadership in uncertain conditions is probably
someone’s own capability and personality based activity. Therefore, there is no one rule
of thumb who to lead people and examples are just references for future leadership
activities.