The Reason Why I Still Said Fiorina Was A Terrible CEO.
As a professor, hearing my name once, let alone twice, before 25 million TV viewers in an historic U.S. presidential debate is a surreal experience. “The head of the Yale business school, Jeffrey Sonnenfeld, wrote a paper recently,” Donald Trump proclaimed in his attack on Carly Fiorina’s business record, “one of the worst tenures for a CEO that he has ever seen.” Immediately, the phones started ringing, text messages dinging, emails beeping—notes from thrilled old students, proud colleagues, teasing friends, pleased former teachers, curious clients, and my own immediate family in shared, flushed, utter shock. So used to being identified before large audiences as Jerry Seinfeld, I’ll admit that I was surprised to hear my name pronounced correctly. But it was a bit traumatic to hear my professional title, professor and senior associate dean, blurred a bit too closely with that of my widely admired boss, who is the actual dean of the Yale School of Management. Last week on CBS’s “Face the Nation,” Trump identified me as dean of the Yale Law School. When he makes me dean of the medical school, it will be very sad my mom is no longer around to share the joy. (Importantly, my perspective is my own, independent of any Yale affiliation.)
Trump did get something right, though: my criticism of Carly Fiorina’s disastrous term as CEO of Hewlett-Packard.
As Fiorina admits, I have been critical of her for over a decade—long before she announced her political aspirations. I have studied her business record, challenged her leadership abilities and have come to agree with the assessment that she was one of the worst technology CEOs in history. I stand by that evaluation.
Fiorina can attack me all she wants, as she did when she called me “a well-known Clintonite” (an absurd allegation I’ll get to later) who “had it out for me from the moment that I arrived at Hewlett-Packard.” But no amount of one-liners to Trump, weekend study of Middle Eastern names or ad hominen attacks on a university professor can take someone from gross business leadership failure to leader of the free world. To do that, she’ll have to own up to her missteps and try to learn from them—which she seems disinclined to do.
Here are the facts: In the five years that Fiorina was at Hewlett-Packard, the company lost over half its value. It’s true that many tech companies had trouble during this period of the Internet bubble collapse, some falling in value as much as 27 percent; but HP under Fiorina fell 55 percent. During those years, stocks in companies like Apple and Dell rose. Google went public, and Facebook was launched. The S&P 500 yardstick on major U.S. firms showed only a 7 percent drop. Plenty good was happening in U.S. industry and in technology.
It was Fiorina’s failed leadership that brought her company down. After an unsuccessful attempt to catch up to IBM’s growth in IT services by buying PricewaterhouseCooper’s consulting business (PwC, ironically, ended up going to IBM instead), she abruptly abandoned the strategic goal of expanding IT services and consulting and moved into heavy metal. At a time that devices had become a low margin commodity business, Fiorina bought for $25 billion the dying Compaq computer company, which was composed of other failed businesses. Unsurprisingly, the Compaq deal never generated the profits Fiorina hoped for, and HP’s stock price fell by half. The only stock pop under Fiorina’s reign was the 7 percent jump the moment she was fired following a unanimous board vote. After the firing, HP shuttered or sold virtually all Fiorina had bought.
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Trump did get something right, though: my criticism of Carly Fiorina’s disastrous term as CEO of Hewlett-Packard.
As Fiorina admits, I have been critical of her for over a decade—long before she announced her political aspirations. I have studied her business record, challenged her leadership abilities and have come to agree with the assessment that she was one of the worst technology CEOs in history. I stand by that evaluation.
Fiorina can attack me all she wants, as she did when she called me “a well-known Clintonite” (an absurd allegation I’ll get to later) who “had it out for me from the moment that I arrived at Hewlett-Packard.” But no amount of one-liners to Trump, weekend study of Middle Eastern names or ad hominen attacks on a university professor can take someone from gross business leadership failure to leader of the free world. To do that, she’ll have to own up to her missteps and try to learn from them—which she seems disinclined to do.
Here are the facts: In the five years that Fiorina was at Hewlett-Packard, the company lost over half its value. It’s true that many tech companies had trouble during this period of the Internet bubble collapse, some falling in value as much as 27 percent; but HP under Fiorina fell 55 percent. During those years, stocks in companies like Apple and Dell rose. Google went public, and Facebook was launched. The S&P 500 yardstick on major U.S. firms showed only a 7 percent drop. Plenty good was happening in U.S. industry and in technology.
It was Fiorina’s failed leadership that brought her company down. After an unsuccessful attempt to catch up to IBM’s growth in IT services by buying PricewaterhouseCooper’s consulting business (PwC, ironically, ended up going to IBM instead), she abruptly abandoned the strategic goal of expanding IT services and consulting and moved into heavy metal. At a time that devices had become a low margin commodity business, Fiorina bought for $25 billion the dying Compaq computer company, which was composed of other failed businesses. Unsurprisingly, the Compaq deal never generated the profits Fiorina hoped for, and HP’s stock price fell by half. The only stock pop under Fiorina’s reign was the 7 percent jump the moment she was fired following a unanimous board vote. After the firing, HP shuttered or sold virtually all Fiorina had bought.
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