The tech company’s five year plan won’t take that long to see results, said Meg Whitman, Hewlett-Packard CEO, with an update on her company’s turnaround plan and cloud technology strategy. Meg Whitman was on CNBC today video and transcript below.
HP CEO Meg Whitman Promotes Turnaround & Tech Innovation
and the revenue about 121 billion rupies. back to becky quick live in sin city though she is not sinning at the conference. becky has a special guest. we don’t know that. you know becky. not at the moment i’m no. guys, thank you very much. joining us now is the woman we’ve been waiting for all morning, meg whitman, hp’s ceo and why we are here. we want to thank you for inviting us here and giving us the chance to sit down with you. thank you for coming to hp discover. we are coming at a really interesting time for hp. you had a great quarter that you announced last month. wall street loved all of the results out there. your earnings came in much higher than the street had been expecting. and the stock was up pretty significantly on that. but this is a long turn ad that you’ve been talking about. and while you may be ahead of where the street thought you would be right now, where are you just in terms of where you thought you would be right now in this process? well, as we laid out, this is going to be a five-year turnaround to get hp running like it should for a company of this iconic status. as i said you don’t have to wait five years for results. i would say we’re a bit ahead where we thought we would be. we’re about 18 months into this five-year turnaround and about where we have to be. we got a long way to go, there is a lot of heavy lifting ahead. the numbers bought you street kred and more patience from investors wondering. but there are bears on the street and their take on this is that the stock is up about 100% from november, and the company’s done some great things when it comings to cash flow but a lot off what they think are non-recurring items. you may not be able to repeat, receivables, what do you say to them? well, in a turnaround you have to do step 1, step 2, step 3. we accomplished a lot. i think there is more work we can do in terms of our cash conversion cycle, looking more carefully. you’re at 21 days. versus 29 before. exactly. part of that of course is business mix. our pc business has a negative cash conversion cycle so it will depend on the mix. this’s more we can do. really, the next phase of the turnaround is how do we get revenue growing. and that is where we really have to now put the focus. you can see at discover we’re going to get rev moo going based on great products, great services and great software. i think-is the strongest lineup hp has had. the veterans around say this is the strongest lineup hp may have had in 20 years. when do you exsnaekt growth? i know you don’t want to get pinned down. you hook at the lines you have now is that something that comes i guess your fiscal year ends in october. is that something that comes after that. we think growth is possible in 2014, i think the biggest wild card is what happens to the pc market as a whole. we define that as personal systems, but the vast majority of our personal systems are pcs and so i think that will largely depend on the market. but we remain pretty confident. as i said this is all about the proed lineup t software, the services lineup, and then you know, going and selling solutions for what i call the new style of i.t., because everything is changing in i.t. pc sales, the industry has gotten hit hard. i think this year sales down the biggest since they started keeping records. right. how do you — is this an industry that is disappearing or really think that you can — it depends on your business definition. i like to think about this as personal systems or devices. the need to create, to consume, to share, is exploding because data is exploding. there sor many more things you can do. it turns out those devices are becoming multi-foreign factor, multiarchitecture in terms of the chips in the devices. so the good news is the business is growing, it’s just the pc segment is declining. we’ll see how long that continues. there’s 140 million 4-year-old or more lap tops on the market place. windows xp, this is no more support next year. so i don’t think it will continue the precipitous trajectory it has been on but we’ve got to get ability, get to other operating systems all of the things that you’ve seen in the booth. one of the things you said yesterday at your keynote speech part of what you have to convince people is you’re here for the long haul. so there is no way you’re changing our mind on what’s happening with pcs, this is a business you are in to stay in? this is a business that we are in. what our customers are looking for from us is consistency of leadership, of strategy, and a partner that they can rely on. i’ll take cloud for an example which is revolutionizing our industry and how technology is bought, consumed, how it’s paid for. our cloud strategy is the cloud that enterprises can rely on. that rely on factor is incredibly important. customers have been through a lot of twists and turns it over the last decade or so. marc andreessen was talking to us and says he thinks you are the best ceo for hp since the founders of the company. he said he had to do convincing to get you to take this job. obviously you don’t need the money. why did you take the job? you’re right, i said many times after i left ebay that was my last ceo job. but i was on the board at hp when the company ran into another chapter and some of the challenges. i had started to really in some ways fall in love with this company. it matters what happens to hp, to our industry, it matters to our customers. i have met over 500 customers in the last 11 months sor so. and everyone says we want hp to win. and it matters to them and the solutions they made, investments in technology over the years and they want us to win in an industry characterized increasingly by consolidation, by change. so, that’s why i took the job beit matters. you could talk about how you see the change happening. marc told us he hears about it from customers and employees. let’s talk about how you are trying to change things with examples. when you took over as ceo there was a contract that came up, microsoft’s bing was looking for a new purchase of servers and you were going up against dell. you lost that bid. so what did you do? so, i wanted to find out why. so i called steve bonner and said put me in touch with the person at microsoft who made this decision and at this particular time chapter and verse what we could have done better. so i spent about 45 minutes on the phone with the decision maker to understand why we lost. and then got our teams together and went through and said what are we going to do. how do we reorganization ourselves. change the supply chain. how do we participate in a way we win. this was april last year when you lost that bid. what did they say, why did you lose? time to market, the ability to iter rate in the rfp process. what does that mean? so in the old days a company would put out an rpf. sorry. a request for proposal. and you would just answer it. here’s what we can provide. but the way these big hyper scale deals are is they have more, they solicit from folks, hey, what can you do for us. then incorporate that into the next one. and then you have to respond again. then you incorporate that into the next one. then come up with ideas that help the customer