Lew Platt's Fix It Plan For Hewlett Packard

As margins shrink and growth slows, the CEO struggles to rev up HP's innovation engine

For years, CEO Lewis E. Platt has used his annual management-review meeting to warn Hewlett-Packard Co.'s executives not to get sloppy. After all, the company was growing at more than 20% a year, making it the fastest-growing $30 billion company in the U.S. It would be easy for giddy executives to become less watchful. Sure enough, by last January's meeting, the company had missed Wall Street's expectations for five straight quarters. So to kick off the weekend meeting at a Monterey (Calif.) hotel, Platt tried a different tactic. The normally amiable CEO blasted his top 200-plus managers for shoddy execution, lax cost controls, and overreliance on slow-growth markets.

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