HP Splitting one of the world’s largest brands
The SituationIn 2015, Hewlett-Packard (HP) made the strategic decision to split the company into two separate, Fortune 50 listed entities. The separation provided each new company with the focus, financial resources and flexibility to adapt quickly to market and customer dynamics while generating long-term value for shareholders. With the help of Siegel + Gale, HP created two new brands; HP Inc., the leading personal systems and printing company, and Hewlett Packard Enterprise Co (HPE), focused on defining the next generation of technology infrastructure, software, and services for the “New Style of IT”.
The ChallengeBrandActive was tasked with validating HP’s existing cost estimates and transition plans. Data from across the organization had to be gathered quickly in order to meet the timeline for presenting an overall cost of the split to the investment community. Establishing a nimble yet rigorous approach to data gathering was key to navigating an organization the size of HP within the prescribed time constraints.
The SolutionBrandActive worked with 30 HP departments, including HP’s Separation Management Office (SMO), to review and validate their rebrand plans and establish key milestones to coincide with the internal separation date and the external brand launches. We also worked closely with the Global Real Estate group (GRE) to help navigate the complexities of the signage rebranding associated with the requirement to represent both brands at many of the corporate locations.
The ResultsWithin the first two weeks of our initial ten-week engagement, we created a high level order of magnitude estimate for the rebranding cost of separation which was used to support the migration plan. BrandActive analyzed the initial budget developed by HP, and identified costs not previously accounted for, resulting in additions being made to the initial estimates. In addition, we supported GRE in the roll-out of the brand by planning and executing rebranding of signage globally and developing technical specifications for the HPE signage family. Working with four global regional teams, we developed a global program schedule and managed all aspects of the signage rebranding (site surveys, recommendations, vendor selection, prototyping and implementation). HPE signage was implemented on 20 prominent global locations to mark the company’s formal launch.
“Costs not previously accounted for were identified resulting in initial estimates being adjusted.”
“A separation of this speed and scale required military-style planning and disciplined execution. Without BrandActive’s substantial insights in the planning phase, we would not have considered all of the nuances related to developing an entire new brand. Their financial analytics group gave me confidence in the numbers that were presented and helped credentialize our plan with senior leaders. BrandActive provided great value and expertise around the financial and operational aspects of rebranding and I trusted their work.”Shawn Ottenbreit, former CFO HP Marketing