HP Splits Off PCs From Imaging Division

HP today announced that it has appointed R. Todd Bradley to serve as executive vice president of its Personal Systems Group (PSG), which includes the company's notebook and desktop PCs, handhelds, monitors, workstations and related support services. Bradley, 46, most recently spent four years at palmOne, Inc., three as president and chief executive officer. His appointment re-establishes PSG as a standalone business, following its combination in January 2005 with the Imaging and Printing Group (IPG). Vyomesh (V.J) Joshi, who had served as executive vice president of the combined Imaging and Personal Systems Group, will resume his former role as executive vice president of IPG.

Bradley has a reputation as a cost-cutter and supply-chain builder at PalmOne. He has lots of material to work with in the HP PSG. I wish him well. HP investors will expect PC margins to at least double. That's doable, but a feat that HP has not achieved yet.

VJ Joshi can now return to running the $25 billion imaging division. Carly Fiorina's decision to merge PSG and ISG in January, which occurred about the time the HP board decided enough was enough, asked Joshi to merge two, $25 billion divisions and increase profits in global, highly competitive markets. There's a difference between challenging managers and throwing them under the bus. Joshi looks none the worse for being run over by the bus.

-- Peter S. Kastner