Learning from leaders - Carly Fiorina
In 2002 Hewlett Packard Chief Executive Carly Fiorina pushed through a takeover of rival computer firm Compaq. At the time the deal was heralded as a strategic masterstroke, and many analysts today still describe it as the foundation stone of HP's continuing success.
So what went wrong? Why was Fiorina forced to quit her job in 2005?
In her resignation statement, Fiorina said, 'I regret that the board and I have differences about how to execute HP's strategy'. At one level, her dismissal was a simple failure to get on with her board.
But there are deeper lessons here. Being a leader involves both having a clear sense of direction and being able to win people's commitment to that direction. If you want to win people over, there are two broad approaches you can take. The first approach is top down – articulate your vision and try and persuade everyone to follow. If you have lots of credibility in your organisation, this can work.
If you lack that credibility, a different approach is needed. You need to work at a slower pace, educating people about the need for change, building trust, helping them to identify the best direction to follow. This bottom up approach is generally more effective in terms of long term commitment, but it takes a lot of time and a different set of skills.
Fiorina was – and is – a brilliant strategist and a powerful and charismatic communicator. Despite her impressive track record before HP, she didn't have the credibility at HP to enforce top down change. And she didn't take the time to educate and win people over gradually. That's why she lost her job.