HP to Launch New Operating Model, Organizational Structure

HP has unveiled a new global operating model and organizational structure designed to better serve its global customers and partners.

The tech giant is moving from its current structure, which is built around three large regions, to a single commercial organization. Reducing the number of management layers in its go-to-market process will “make us more agile and efficient, drive faster decision making, and increase flexibility and authority at the local level where it counts the most,” the company said.

To lead the new commercial organization, Christoph Schell, who has been serving as HP’s president of 3-D printing and digital manufacturing, becomes the company’s first chief commercial officer, effective Nov. 1. He will advocate on behalf of HP’s customers and partners, and help shape what the company does to meet their changing needs while maximizing growth opportunities across HP, the company said.

HP’s Christoph Schell

Schell has been with HP for more than five years.

In addition, Stephanie Dismore, HP’s Americas channel chief, is being promoted to managing director of the company’s North America market.

Last week, HP announced Enrique Lores, president of HP’s imaging, printing and solutions business, will succeed Dion Weisler as its president and CEO effective Nov. 1.

Reporting to Schell will be 10 geographic markets, each led by a managing director. In addition, HP’s new commercial organization will have global centers of excellence to “drive the required digital transformation in our go-to-market efforts and deliver a consistent value proposition to partners and customers across markets,” the company said.

For the past year, HP has been conducting a comprehensive review of its strategy and business operations, and reaching its full potential “requires us to develop new skills, embrace new ways of working, and focus on innovation and new go-to-market strategies,” it said.

“To enable this, we are simplifying our operating model and becoming a more digitally enabled, customer-centric organization while also evolving our strategic priorities, including our business models, portfolio and profit pools,” it said.

Last week, HP reported $14.6 billion in revenue for its third quarter, compared to year-ago revenue of $14.59 billion. The company has topped consensus revenue estimates twice over the last four quarters.