Fiorina to head HP

Carly Fiorina's move last week from Lucent Technologies to Hewlett-Packard, where she will be president and chief executive officer, is a reminder of how the communications and computer industries are converging - and also a loss for Lucent.

"I have an understanding of what it takes to grow a high-tech business rapidly. I understand how to respond to customer needs well. And I understand the power of a brand," said Fiorina, former president of Lucent's Global Service Provider Business adding, "My communications background should fit well with the computer background of most [HP employees]."

Fiorina's departure will be a loss for Lucent, said James Parmalee, director of equity research for Credit Suisse First Boston's technology group. "Carly was an excellent marketer and the direct contact person with key customers, but Lucent has a deep bench."

He pointed to Curt Sanford, now head of Lucent's Internetworking Business, and Mike Hendrin, now executive vice president of worldwide sales for that unit, as some of the top talent that Lucent acquired with its purchase of Ascend Communications Inc. Lucent will not directly replace Fiorina, Parmalee speculated. Her boss, Executive Vice President and Chief Operating Officer Ben Verwaayen, likely will work with many of the line units but is unlikely to assume Fiorina's customer-facing duties, Parmalee added.

The company is considering a realignment of Fiorina's responsibilities, confirmed a Lucent spokesman.

Fiorina was the first choice of an HP search committee formed to select a successor to Lewis E. Platt, who will remain as chairman until the year's end, said HP sources. During that time, Platt will focus on tough issues pertaining to HP's spinoff of its measurement division, said Fiorina.

Edward W. Barnholt will head the new measurement company, leaving Fiorina in charge of the computing and imaging business.

Fiorina has "the rare ability to conceptualize and champion clear business strategies while at the same time remaining focused on achieving operational results," said Platt.

Fiorina, 44, spent a total of nearly 20 years at AT&T and Lucent and was heavily involved in the spinoff and transformation of AT&T Network Systems.

While declining to outline specific goals, Fiorina said HP needs "a clear vision for customers" and must be reinvigorated with a "sense of speed and urgency." The company also must "strike the right balance between centralization and decentralization," she said.

Fiorina hinted that the Internet will be key to HP's future plans: "HP's role in the Internet is broader and deeper than many understand. [HP] will need to play a leading role in the second chapter of the Internet."