Did APCO Really Fire Mark Hurd?
I have no way of knowing whether The New York Times' story about the role played by public relations firm APCO Worldwide in the dismissal of Hewlett Packard chief executive Mark Hurd is accurate. But it does raise a number of interesting questions about high-stakes crisis and issues management that are worth exploring.
First let me say that the Times' narrative---which makes it sound as though APCO's predictions of a media firestorm if Hurd remained led directly to his ouster---seems to be, at the very least, overly simplistic.
It would be nice to live in a world in which the lawyers and the finance guys and the board of directors were all cowed into submission by the mock-up of a news report criticizing the company for sticking with its CEO in the wake of charges concerning sexual harassment and falsified expense reports. But the reality is that few PR people--even at APCO--wield that kind of influence.
(For what it's worth, the Times later amended its story to say that APCO had not advised the company to fire Hurd, just to be open and transparent about the reasons for the firing.)
In any event, the analysis that accompanied the narrative was certainly simplistic. The authors, Ashlee Vance and Matt Richtel, point out that "even after following the specialist's advice, the company has not escaped criticism" and that "But in ousting Mr. Hurd, the directors set off a media scrutiny they had hoped to avoid."
It seems to me inconceivable that anyone at APCO--even the receptionist--would have counseled HP that if the company chose to dismiss Hurd it would "escape criticism" or avoid "media scrutiny." If you fire a CEO, particularly a high-profile CEO like Hurd, someone is going to notice and someone is going to question whether the decision was correct.
In circumstances such as these, good public relations people have to balance the negative impact of firing a CEO (in this case, quite intense but likely short-term) with the negative impact of sticking with him (perhaps less intense, but enduring and distracting the company over a longer period of time).
Great public relations people, on the other hand, will focus on the company's values, and recommend that the decision be based on fundamental principles that are important to HP.
One of those principlesis "trust and respect for individuals" ("We work together to create a culture of inclusion built on trust, respect and dignity for all," says the company). Another is "uncompromising integrity."
In an explanation of its decision, the company said it was enforcing the same code of ethics it would apply to any employee. At this point, it's important to remember that in an age of radical transparency, the charges against Hurd would have become public knowledge eventually. It's hard to imagine how HP could have done other than it did and maintained any credibility.
