July 22, 1999 5:24pm
New Compaq CEO: 'No learning
curve' needed
By Lisa DiCarlo PC Week
NEW YORK -- Speaking with the ease of a seasoned
politician, new Compaq Computer Corp. President and
CEO Michael D. Capellas Thursday held his first press
conference less than than two hours after the company's
board of directors had formally appointed him to the posts.
Until early June, when he was named acting chief
operating officer, few people outside the company had
even heard of Capellas, whose background lies mainly in
IT, operations and manufacturing.
But at Thursday's press conference at the Equitable
Building here, Compaq Chairman Ben Rosen said
Capellas became a serious candidate when he took the
COO post on June 2. Capellas not only was the only
internal candidate, he was the only person Compaq's
board made an official offer to, Rosen said.
Although Capellas has no CEO experience, Rosen
expressed confidence in his ability, adding that Capellas
was instrumental in bringing the latest restructuring to
bear. In its latest reorganization, Compaq was segmented
around enterprise products and services, consumer
products and commercial products.
"We have done a poor job at execution for the past several
years, but Michael will set [the strategy] right for us," Rosen
said in a brief interview after the press conference.
Capellas, who joined Compaq 11 months ago, needs "no
learning curve," Rosen added.
With Capellas' appointment, Compaq will eliminate the
temporary COO post, and senior executives will report
directly to Capellas.
The new CEO said his immediate priorities are to
complete the management team, simplify distribution,
accelerate technology innovation and communicate their
messages clearly.
"We will have a very clear focus on how each product
segment fits into our Internet strategy," he said, adding that
the company still has to reduce headcount by about 1,800.
He said the company's direct-sales business today stands
at about 15 percent of total revenues, with a goal of 40
percent going forward.
Without providing any details, he said that on Aug. 15, the
company will articulate a further refinement of its
restructuring. Despite the lack of details on the
restructuring, Capellas vowed several times to be open,
communicative and accessible.
Senior vice presidents Mike Winkler and Mike Larson said
they were pleased with the appointment.
"It's better than going outside [the company] and having to
wait months for someone to ramp up," Winkler said.
For his part, Rosen said he is looking forward to stepping
back from being directly involved in running Compaq.
"I'm looking forward to getting back to Central Park
West" he said |
