BUSINESSWEEK ONLINE : FEBRUARY 19, 2001 ISSUE
COVER STORY Carly to HP: Snap to It Even before she took charge at HP in mid-1999, Fiorina had formulated a three-phase plan for returning the company to its former glory. Some highlights: PHASE I, 1999: Prepare the ground SPREAD THE GOSPEL Held ''Coffee with Carly'' sessions in 20 countries to boost morale. Convinced top lieutenants that HP needs to match the growth of rivals. ONE IMAGE Merged HP's fragmented ad effort under one all-encompassing ''Invent'' campaign. SPARK INNOVATION Reoriented HP's R&D lab away from incremental product improvements and toward big-bang projects such as nanotechnology for making superpowerful chips. PHASE II, 2000: Improve growth and profits in core businesses CONSOLIDATE Folded HP's 83 product divisions into four units: two product development units that work with two sales and marketing groups--one aimed at consumers, the other corporations. SET STRATEGY Created a nine-person Strategy Council to allocate resources to the best opportunities rather than leaving strategy to product chieftains. WHACK COSTS Lower expenses by $1 billion by revamping internal processes to tap the power of the Web. PHASE III, 2001 AND BEYOND: Build new markets TRIGGER NEW PRODUCT CATEGORIES Establish cross-company initiatives to develop altogether new Net-related businesses. WOO CUSTOMERS Offer soup-to-nuts solutions for customers by creating teams from across HP that sell to major accounts. GOOD CORPORATE CITIZEN Use HP's resources to create subsidized or low-cost computer centers and services to make the Net available to everyone. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Radical COVER IMAGE: The Radical CHART: HP Stock Price GRAPHIC: HP the Fiorina Way TABLE: Carly to HP: Snap to It ONLINE EXTRA: Q&A with Carly Fiorina ONLINE EXTRA: HP Sees the Future--and It's Printing VIDEO: Q&A Carly Fiorina and BW's Steve Shepard INTERACT E-Mail to Business Week Online

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