HP made a historic announcement Monday that it was splitting into two companies: Hewlett-Packard Enterprise, which will offer cloud-based technology, servers, and software; and HP Inc, which will retain HP’s legacy of consumer PCs and printers.
It is all part of CEO Meg Whitman’s five-year turnaround plan for the technology giant, allowing the two divisions to focus on accelerating innovation across each space and strengthening the company’s grasp on the mobile market, both in the workforce and in the realm of personal technology. Forbes shared a statement from Whitman that called the announcement “a defining moment in our industry as customers are looking for innovation to enable workforces that are more mobile, connected and productive while at the same time allowing a seamless experience across work and play.”
Whitman further states that the split was only possible because the turnaround has been such a success thus far. Her focus as a leader has been how to reinvent HP after its toppling stock prices and lackluster performance in the post-Mark Hurd era in an increasingly competitive industry where companies must be poised at the bleeding edge of innovation just to stay ahead. It is a monumental task, but one that Whitman seems suited for as a tenacious, blunt leader who isn’t afraid of the hard work behind an enterprise transformation, as previously seen in her tenure at eBay.
What does it take to be that kind of a transformational leader? Insigniam’s five facets of transformational leadership — inspiring intent, conversations for fulfillment, authentic demeanor, an accountable environment, and structural integrity — give leaders what it takes to make an impact on all levels and produce the kind of Breakthrough Results that make a company an unstoppable competitive force.
Transformational leaders also seek to excise complacency and boost innovation for real, lasting success, something that HP badly needed when Whitman took the helm. The split gives the company a chance to better focus on its markets individually, become more efficient, and lay the groundwork for long-term successes.
This latest news is just the next step in Whitman’s overall transformational strategy. Earlier this year she was quoted as saying that fiscal 2014 would be a pivotal year, with the company coming out on the other side of 2016 as an industry leader. Analysts are already feeling bullish about the split’s effect on stock, with HP’s margins already improving and the company reporting a positive financial outlook for full-year 2014 and fiscal 2015.
Monday’s announcement was a calculated move three years in the making, and it looks like Whitman is on the right leadership track to help HP further bolster its competitive edge.