It appears that former Compaq Computer Corp. CEO Eckhard Pfeiffer hasn't quite gotten over being fired last April. Pfeiffer, who is now associated with several Web start-ups, spoke with Computerwoche (Computerworld Germany) Jan-Bernd Meyer about the past and about future economic and business models shaped by the Internet. Here is an edited excerpt from the interview, translated from the German.
Q: I am curious to know what you still want to achieve in life after your departure from Compaq. Money shouldn't matter to you anymore. What drives you now?
A: If you look at people who are retired, you will always notice the phenomenon of senility. The simple reason is that these people no longer participate in the current events of life. I could have withdrawn and sat at home at the computer and moved shares back and forth on my screen as a day trader. However, I didn't want that. I am actually in a fantastic situation now with all my know-how and my industry contacts. Now, I only have to do what I want to.
Q: As CEO of Compaq, you were considered a shining success. After you were fired, you supposedly accumulated mistake after mistake. Do these attacks hurt?
A: When you start as CEO, you have to know that these things can lie in store for you. It already begins with the fact that your severance package is negotiated before you assume your office. It clearly states what to expect when you get the boot. That's why you can't say you did not know what you were getting yourself into. As chairman of the board, you have to be aware that in the final analysis, you will always be held responsible for everything, regardless of the circumstances.
Q: Are you reproaching yourself for possible omissions during your time at Compaq?
A: During the stage that led to my departure from Compaq, there were circumstances I could have avoided.
Q: The acquisition of Digital Equipment Corp., for example?
A: No, I won't say that the acquisition of Digital Equipment was the reason for my dismissal. After all, everybody's guess was different as to why I was let go. Chairman Ben Rosen and the other members of the supervisory board always said my strategy was good. Only the execution was lacking. Moreover, events sometimes come thick and fast. By that, I mean the short-circuit reaction of Ben Rosen that led to the decision to dismiss me.
Q: Do you believe Rosen made a big mistake?
A: Rosen strongly damaged Compaq with his decision, especially as far as the company's credibility in the world is concerned. You shouldn't forget that Compaq achieved things that were unprecedented. This goes for growth as well as market leadership as well as future strategy. Rosen always agreed with this. But when one or two circumstances occurred that made us vulnerable to the criticism of Wall Street, Rosen simply lost it.
Q: You yourself made no mistakes?
A: One thing is absolutely clear: You can walk into any company in the world at any time and ask, "What are your biggest problems?" You'll be handed a long list. There is no point in time when anybody could claim they have no problems.
Q: You completed a comparably traditional managerial career at Telefunken and Texas Instruments, and in the end as CEO of Compaq for eight years. In Web start-ups, people in their late 20s are juggling a completely new model of business. What advice do you have for these "kids"?
A: I also wonder about that (laughs). But seriously, a company is obviously free to assemble its supervisory board any way it wants. In addition, one wants to gather certain experiences in such a committee. During my career, I have had more or less all the experiences that finally matter in business life.
One important insight I had is this: Nothing repeats itself. That's why you can't stick to traditions. And you must accept the new world. I can, for example, provide the experience that it is extremely important to precisely define the aims of a company. If this direction is lacking, a company can get on the skids very quickly.
Secondly, I see my role (with Web start-ups) more in the sense as it is understood in the U.S. There, decisions made by the executive board aren't simply agreed to habitually, as it happens again and again in Germany. In the U.S., the supervisory board represents the interests of the shareholders, and it performs this function vigorously. I bring a lot of experience to this position, some of it from my years as CEO and chairman of Compaq.
Q: Let me ask once more: Which concrete pieces of advice can you give to a very young business?
A: I can provide young management with decisive help and tips for day-to-day business. This advice might occasionally sound trite, but if you don't internalize it, you are bound to make the same mistakes over and over again. Just an example: I recommend repeatedly to sign only the best candidates - even if it is difficult to find suitable personnel. To employ bad people out of necessity and then having to correct this decision is much worse than to search for another three months and get top people on board then.
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