What CFO didn’t face a baptism by fire during the economic crisis? Wild swings in currency rates, dramatic shifts in supply and demand, and the virtual freezing of the financial markets tested the mettle of even the most veteran CFO.
Hewlett-Packard’s Cathie Lesjak was no exception. She ascended to the CFO role in January 2007, after nearly two decades in the treasury and other finance leadership positions at the company. As the global financial crisis escalated during the second half of 2008, the company was integrating its $13.9 billion acquisition of Electronic Data Systems (now known as HP Enterprise Services). When the crisis peaked, Lesjak was suddenly faced with severe cost-cutting measures, unprecedented uncertainty, and the full spectrum of crisis-related management challenges. Yet, a little more than a year later, the company announced its $2.7 billion acquisition of 3Com, signaling its intention to continue investing in future growth even during the challenging economic environment.
Lesjak recently sat down with McKinsey’s Paul Roche, a partner in the Silicon Valley office, to recall the steps she took to ensure that HP could continue to meet its commitments to the market and to look ahead at the company’s strategy. The interview took place in Lesjak’s office at the company’s headquarters, in Palo Alto, California.
Thinking longer term during a crisis: An interview with HP’s CFO