Todd Bradley packing-up from Hewlett-Packard Company (NYSE:HPQ)?

Posted by Nathan Alexander June 20, 2013 0 Comment 2544 views

Todd Bradley has been unexpectedly shifted from leadership of Hewlett-Packard Company (NYSE:HPQ)’s $60B Printing and Personal Systems Group. This kind of a change is more often than not an indicator that the person concerned may be planning on moving away from the company. Speculation is rife that Bradley may  perhaps be moving into the CEO role at Dell. People in the know have said that Bradley has very categorically told Meg Whitman the HPQ CEO that Dell has not contacted him. Sources at Dell have apparently confirmed that there is no opening for Bradley at the company.

The objective view

If you look at the situation without letting the widespread rumors taint it, it’s not so unbelievable that Bradley will be moving to Hewlett-Packard Company (NYSE:HPQ) channel relationships. It conducts business via a global network of resellers. In turn, these resellers sell HP services and products directly to various businesses. In recent years this particular business has been worn threadbare. This segment is a crucial one for the HPQ as almost 70% of the company’s overall business comes from it.

The objective

Channel sales account for around 80% of the company’s sales in the Printing and Personal Systems Group as well as around 60% of sales in the Enterprise Group. Bradley’s job will be to mend those business bonds, especially in China and with his connections, it seems like he is the best candidate for it.

Making changes

In Jan 2013 HPQ rolled out some revised rules of engagement for all its salespeople. These chalk-out what will be accepted and what will not, where working with channel partners comes into the picture. The revised rules were formally announced at the company’s Global Partner Conference that was held in Las Vegas in February. These rules were part of Hewlett-Packard Company (NYSE:HPQ)’s broader attempt to re-build trust in the channel. These were a necessity as some HP salespeople, probably spurred on by the vacuum in leadership, had been working around the partners, in deals.

Some were also taking deals directly and cutting out the channel partners altogether. Three CEO changes in as many years is not a great way to retain control of any business and salespeople were taking advantage. The revised rules curb all that and hopefully under Bradley’s leadership, the channel will be back on track.

About Nathan Alexander

Nathan Alexander holds bachelor’s degrees in Journalism and European Studies from Boston University. Nathan reports round up the day’s business and financial market news and include keynote interviews with major business players and updates on Asian, European and US stock markets. He has interviewed heads of leading European banking institutions such as European Central Bank President Jean-Claude Trichet and HSBC Chairman Stephen Green, and CEOs from the business world including Microsoft founder Bill Gates, Virgin Chairman Sir Richard Branson and former Porsche President and CEO Dr Wendelin Wiedeking.

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