Anyone who has ever worked in an organization knows about the “grapevine”—the informal rumor-mill where fact and speculation mix together to breed various strains of truth, half-truths and outright misconceptions.

Strategic, open communications can reduce the grapevine’s activity and influence. This is even more apparent, and important, as companies and their stakeholders (including employees) engage more in the range of communication channels powered by social media tools and platforms such as blogs, Twitter, LinkedIn and Facebook.

Companies today are looking to join in the conversations occurring within and outside of the company walls. Those conversations can change and move rapidly, which makes it more difficult for company “spokespersons” (either formally designated or ad hoc) to be a trusted participant if they haven’t spent time engaging with others.

Some of the bigger challenges occur in times of change, when information may be less available or less readily shared, and the unknown can seem more apparent and more ominous. Does that describe the situation at Hewlett-Packard, following the sudden resignation on Friday of Mark Hurd, HP’s chairman, chief executive officer and president? (Read more in my previous post.)

A few HP executives have been quoted in articles appearing online. For example, in the U.K., a Guardian newspaper’s online article quoted HP’s general counsel Michael Holston as stating that Hurd engaged in a “systematic pattern” of submitting falsified financial reports to hide a “close personal relationship” with a former HP contractor.

The official HP blog, Data Central, on Saturday offered scant information other than a retread of the corporate statement published on Friday. It stated that “Comments are closed for this post and will not be published.”

Let’s hope that the communications internally at HP were much more transparent. After all, Hurd was not universally loved within HP for his tough business decisions that led to thousands of job cuts over the years. How will HP’s communications staff manage this time of change?

That was exactly the topic of a session led by HP communicators Robin Andrews and Desiree Sylvester in 2005. It was titled, “Keeping employees focused and engaged in times of change,” and it was delivered on the day before Hurd accepted the IABC EXCEL Award at the IABC International Conference in Washington, D.C.

Much of what Robin and Desiree shared in that presentation could hold true today, such as the “communication challenges”:

  • Balance focus on delivering day-to-day business vs. change
  • Manage leaks in the media
  • Everything said internally was expected to be shared externally—very difficult to give employees additional or advance information

Check out the presentation and then let’s see what surfaces from HP’s employees. Will they feel like their feelings and opinions have been heard?

Another more minor observation. I had noticed that on Friday, the day of the Hurd resignation announcement, the HP site was not completely updated. Although the press release was posted under HP’s News Releases section, the company leader page still indicated that Hurd was in charge.

From the HP website on 8-6-2010, the day Hurd's resignation was announced.

From the HP website on 8-6-2010, the day Hurd's resignation was announced.

On Saturday, the site was updated to indicate that Cathie Lesjak
was named interim chief executive officer and would remain chief financial officer.

Mark Hurd photo courtesy of HP

Mark Hurd photo courtesy of HP

I first met Mark Hurd at the 2005 IABC International Conference in Washington, D.C. He had just joined Hewlett-Packard as its CEO and president, after a successful stint in a similar role at NCR. In fact, Hurd was being honored as the recipient of IABC’s EXCEL Award for his support, encouragement and practice of exemplary communication.

It saddened me to read the news article on Friday under the headline, “HP CEO Hurd resigns after sexual-harassment probe.” To be clear, an investigation by HP’s outside legal counsel and its General Counsel’s Office, overseen by the HP Board determined that no violation of HP’s sexual harassment policy occurred. However, it did find that Hurd violated HP’s Standards of Business Conduct. Read the official statement on the HP website.

As I reviewed some notes I took during Hurd’s address at the 2005 conference, the irony of some of his comments and statements jumped out.

  • He had begun his remarks, following a warm applause by the audience, with the comment, "As CEO, you aren't used to hearing people say nice things about you."
  • Hurd later told the audience that the term "fired" originated from an incident that involved two early leaders at NCR. Quick summary: NCR head John Patterson allegedly punctuated the termination of Thomas John Watson, Sr. by having Watson's desk taken outside and set ablaze. Hence, the phrase "fired."
  • I’ve since found many references to the origin of the phrase, “fired,” that don’t point to NCR. It may be another example of Hurd’s misunderstanding of information—like HP’s Standards of Business Conduct.

    Two other Hurd comments from his 2005 EXCEL Award address stood out to me today:

    • The CEO can't replace the relationship of front-line employees with their immediate supervisors, he said. "The CEO can provide a context [to] try to bring clarity."
    • Hurd later said that as he would "promote, demote, recognize and reward people, I tell 30,000 people what I value."


    As a highly visible CEO, Hurd has sent a message to his employees with his misconduct, and I hope that it doesn’t erase the good that he did for HP. I also hope he uses this as a lesson in what to value most as a business leader and champion of communication excellence.

    What context and clarity can Hurd’s interim successor, Cathie Lesjak, bring to company employees? In my next post, I’ll look back at a presentation on employee communications made at that same 2005 IABC International Conference by HP communicators, and then compare that with what has been communicated in the past couple of days following Hurd’s resignation.