WEBVTT - Chief Future Officer: Tarek Robbiati, HPE

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<v Speaker 1>The global appetite for data is growing faster than ever,

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<v Speaker 1>and no matter what statistics you use to describe it,

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<v Speaker 1>big data is big business. We believe hundred and fifty

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<v Speaker 1>billion devices will be connected by and more than a

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<v Speaker 1>hundred zetabytes of data will be created every eighteen month.

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<v Speaker 1>The data that is produced by the world is we

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<v Speaker 1>started talking about petabytes and exibites and now we're talking

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<v Speaker 1>about zetabytes. It's a near unimaginable explosion in data and

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<v Speaker 1>companies just don't know how to manage and secure all

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<v Speaker 1>this new information. There's also a growth in the nature

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<v Speaker 1>and location of data as well, you know, expanding beyond

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<v Speaker 1>structured data unstructured data. We're looking at five hundred plus

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<v Speaker 1>billion in revenue in the market that several years ago

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<v Speaker 1>or a decade ago didn't really exist, and that's going

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<v Speaker 1>to three acts through one point by trillion. And are

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<v Speaker 1>there room for more players? And what has spent on

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<v Speaker 1>already pretty competitive space. What you see right now is

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<v Speaker 1>that the big players are the biggest names in tech.

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<v Speaker 1>You have the hemous like Microsoft, Google, Amazon is the

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<v Speaker 1>big three. But the great thing about cloud and the

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<v Speaker 1>public clouds the private clouds is that it allows a

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<v Speaker 1>lot of innovation to happen. HP is a big name

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<v Speaker 1>tech company with a mission to innovate and compete in

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<v Speaker 1>the cloud. CEO Antonio Nari told Romaine Bostick why he

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<v Speaker 1>chokes Turk Robrioti CFO to drive this transformation. When you

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<v Speaker 1>play sports, you want different type of skills and capacities

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<v Speaker 1>in many ways that they all together can deliver a

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<v Speaker 1>better performance. And it starts by will to win. And

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<v Speaker 1>when I became CEO, I realized I need a different

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<v Speaker 1>type of CFO. Someone is way more strategic, not just

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<v Speaker 1>on the accounting side, but I really think about how

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<v Speaker 1>we can deliver the value in a different way. Are

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<v Speaker 1>the days where the CFO is just as scorekeeper. I

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<v Speaker 1>think our role as CFOs is to be the person

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<v Speaker 1>who assists. The CEO changed the score well he had

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<v Speaker 1>that attracted me was about the transformation experience obviously has

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<v Speaker 1>more than two decades as a as a global leader.

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<v Speaker 1>We're both in taliens by the way the core, which

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<v Speaker 1>I think is a benefit that we can communicate the

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<v Speaker 1>same and we can argue against each other, but always

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<v Speaker 1>in a constructive way. As CFO, um I would assume

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<v Speaker 1>that you're always in a position where sometimes you have

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<v Speaker 1>to say no to him? Do you say no to him? Ultimately,

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<v Speaker 1>decision making ownership is he's He's the CEO of the company.

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<v Speaker 1>Here's the boss. Is my boss. At the same time,

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<v Speaker 1>I want to make sure that I watched his back.

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<v Speaker 1>Turk Robrioti is hp s chief financial officer and also

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<v Speaker 1>oversees the company's strategic function. Being the head of Strategy,

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<v Speaker 1>he does a lot of the mad scanning looking at

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<v Speaker 1>the trends. Uh, you know whether it's three or five

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<v Speaker 1>TI years. And that's why we combine both the CFO

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<v Speaker 1>with the head of strategy because in the end has

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<v Speaker 1>to deverstion holder value and then we gone into what

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<v Speaker 1>are the big trends were to play and have to win.

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<v Speaker 1>Think about it this way, we are like biologists. We

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<v Speaker 1>need to deeply understand the financial DNA of our company

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<v Speaker 1>and we need to take the practice steps that prevented

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<v Speaker 1>it from aging. Finance is the lifelood of any organization.

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<v Speaker 1>Just like for a human being, you have to have

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<v Speaker 1>your heart functioning. We have to be there providing the

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<v Speaker 1>information that allows us to continue to create value for

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<v Speaker 1>our shareholders and making sure that our customers get what

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<v Speaker 1>they want. The Hewlett Packard Corporations split into two separate companies.

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<v Speaker 1>Eight P Inc. Primarily makes devices from desktop and laptop

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<v Speaker 1>computers to printers, tablets, and point of sales systems. Hewlett

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<v Speaker 1>Packard Enterprise, or HP, provides information technology solutions. In CEO

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<v Speaker 1>Antonio Nary announced that the company would pivot from a

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<v Speaker 1>focus on servers and on site storage systems to its

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<v Speaker 1>cloud software as a service platform, green Lake. HP calls

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<v Speaker 1>it a hybrid cloud platform, not just storing data in

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<v Speaker 1>the cloud, but managing it across myriad locations. When I

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<v Speaker 1>became CEO in two thousand eighteen, I said that the

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<v Speaker 1>enterprise of the future will be edge centric, meaning where

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<v Speaker 1>we live, where we work, cloud enabled, in data driven.

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<v Speaker 1>And one of the things that we saw through the

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<v Speaker 1>pandemics that the enterprise became way more distributed, people working everywhere,

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<v Speaker 1>and at the same time data became the most important

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<v Speaker 1>asset that customers have explained for a second. The difference

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<v Speaker 1>between the edge there why that is sort of more

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<v Speaker 1>useful and the idea of a more centralized sort of

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<v Speaker 1>cloud system that I thought a lot of companies, at

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<v Speaker 1>least at one point, we're embracing it well, if you

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<v Speaker 1>think about we live now in a hyper connected world.

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<v Speaker 1>Everything is connected. To digitize your enterprise, you need to

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<v Speaker 1>be connected. Is cheaper to move the cloud to the

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<v Speaker 1>data and by the way, more secure then moving data

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<v Speaker 1>to the cloud. And that's where we as a company,

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<v Speaker 1>we're creating the capability to consume cloud services at the

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<v Speaker 1>edge in your data center on a bigger cloud. There

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<v Speaker 1>was a view and there still is that view that

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<v Speaker 1>the whole world is going to move to the public cloud.

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<v Speaker 1>We think the world is fundamentally going to be hybrid.

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<v Speaker 1>The edge is where everything happens, is where people generate

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<v Speaker 1>data or company generate data. Think about, for example, logistics companies,

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<v Speaker 1>how much data is being generated in harbors, in railroads,

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<v Speaker 1>in warehouses and the world we're living we'll be a

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<v Speaker 1>world which will be much more automated than ever before.

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<v Speaker 1>So warehouses are going to fundamentally change. They're going to

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<v Speaker 1>be powered by robots. Those robots will be very quickly

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<v Speaker 1>picking up the items in the warehouse that are required

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<v Speaker 1>and then reshuffle what's in the warehouse. That actual processing

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<v Speaker 1>requires data analysis locally where the action happens, transmission of

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<v Speaker 1>that data or a secure network onto a central point

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<v Speaker 1>or multiple central points for that matter, and made sense

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<v Speaker 1>of right. So that is the whole, the whole idea

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<v Speaker 1>that we're after. With more data to organize in more places,

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<v Speaker 1>businesses are moving swiftly to digitize their information infrastructure. Corporate

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<v Speaker 1>spending on it sword in and even if global growth slows,

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<v Speaker 1>that trend is not likely to reverse. How do you

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<v Speaker 1>operate that environment If we are facing recessionary headwinds. Where

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<v Speaker 1>we're seeing with I T spending is we're expecting flattening

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<v Speaker 1>to single digit growth. But cloud computing will largely be

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<v Speaker 1>unaffected by that. Given the explosive nature of data, organizations

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<v Speaker 1>simply need cloud. Companies that once invested heavily in devices

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<v Speaker 1>and data center servers may now seek more flexibility from

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<v Speaker 1>software that can be upgraded as new needs arise. That's

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<v Speaker 1>the bad HP is making as it pivots to software

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<v Speaker 1>as a service. When you hear the word as a service,

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<v Speaker 1>so many companies throw that out. Something as a service?

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<v Speaker 1>Is that just a buzzword? At the core, it's a

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<v Speaker 1>different business model. At the heart of it, there is

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<v Speaker 1>this contract with a service level agreement that ties the

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<v Speaker 1>two parties for a specific solution. The solution allows the

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<v Speaker 1>customer to manage the infrastructure and secure specific business outcome

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<v Speaker 1>under certain performance conditions. We manage infrastructure on your behalf.

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<v Speaker 1>We grow and expanded infrastructure as your need to grow

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<v Speaker 1>and expand in turn, and so the degree of customer

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<v Speaker 1>intimacy is a quantum leap above the transactional world. With

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<v Speaker 1>a different business model comes a different metric for measuring success.

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<v Speaker 1>Annualized run rate or a r R has become the

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<v Speaker 1>focus for Touric Robrioti and his finance team. The R

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<v Speaker 1>is critically important. The RR is actually measuring the amount

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<v Speaker 1>of our revenue that is locked in and recurring with

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<v Speaker 1>our customer base, and to the extent that they are

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<v Speaker 1>r R is going fast. The more robust the future

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<v Speaker 1>of the company is. Then on green Lake. We have

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<v Speaker 1>to grow customers. We have to grow the revenue we

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<v Speaker 1>make from those customers, and the r R is the

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<v Speaker 1>annualized run rate of revenue that you have from one

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<v Speaker 1>period to the next. If your offer has a perennial future,

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<v Speaker 1>it translates into a growing er. This is the way

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<v Speaker 1>for us to truly understand that we remain relevant for

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<v Speaker 1>our customers over the long term. What about margins. When

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<v Speaker 1>you hear from some of these analysts, these investors here,

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<v Speaker 1>there's still dialed in on gross margin some of the

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<v Speaker 1>more traditional metrics. Gross margin for me is the most

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<v Speaker 1>important metrics in our sector right. It's fundamentally if you

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<v Speaker 1>think about our our business, which comes from a hardware

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<v Speaker 1>heritage moving into as a service with hardware commoditizing, you

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<v Speaker 1>have to have a focus on gross margins. And as

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<v Speaker 1>you can see from our results over the past nine

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<v Speaker 1>ten quarters, our gross margins have been expanding very very solidly.

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<v Speaker 1>That actually tells you that your customers are willing to

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<v Speaker 1>pay a premium for what you have to offer. And

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<v Speaker 1>so what you want to see is a combination of

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<v Speaker 1>a r R with gross margin expansion and the are

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<v Speaker 1>are composition becoming richer and richer with more differentiation thanks

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<v Speaker 1>to software. That's the journey that we are all. You

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<v Speaker 1>need to remind people that of our profits are a deer,

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<v Speaker 1>which means we don't need the imperiate profit to deliver.

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<v Speaker 1>So that's an opportunity because we have an amazing profit

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<v Speaker 1>pool called hp point x now being supplemented with hpgree Lake,

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<v Speaker 1>which we already have more than six billion dollars in

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<v Speaker 1>the balance sheet, growing at the hundred plus percent of record.

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<v Speaker 1>Supply change challenges and geopolitical turmoil have weight on earnings

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<v Speaker 1>in two but with demand for its software continuing to

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<v Speaker 1>grow and a record breaking backlog of orders, HP has

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<v Speaker 1>caused for optimism. Meanwhile, Surgeon Inflation remains a wild card

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<v Speaker 1>is the company tries to attract subscribers and maintain margins.

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<v Speaker 1>We have had to think about inflation permeating across what

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<v Speaker 1>we do, in what we purchase and whether it's goods

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<v Speaker 1>or services. We've seen rising costs. We had to therefore

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<v Speaker 1>be much more disciplined on pricing than ever before. This

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<v Speaker 1>is not easy, and this is also something that has

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<v Speaker 1>to adjust because you can keep pricing increasing all the time,

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<v Speaker 1>so you've got to be very dynamic in the way

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<v Speaker 1>you think about pricing. Moving forward, HP chief financial Officer

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<v Speaker 1>Tarik Robriotti originally trained as a scientist, earning a master's

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<v Speaker 1>degree in nuclear physics and electronics. He told Romane Bostick

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<v Speaker 1>how those studies set him on his professional path. It

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<v Speaker 1>did prepare me in terms of my analytical capabilities, but

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<v Speaker 1>there was a moment in my career where I felt

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<v Speaker 1>he was really important that I hold my financial skills,

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<v Speaker 1>and then eventually I had to do an MBA majoring

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<v Speaker 1>in finance and strategic analysis and entrepreneurship. I discovered finance

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<v Speaker 1>as a discipline. I loved it and ever since then

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<v Speaker 1>I became a finance person. Highlights from Robiotti's resume include

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<v Speaker 1>a stint with Lehman Brothers in London and later experiences CEO,

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<v Speaker 1>first with the telecommunications firm CSL in Hong Kong and

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<v Speaker 1>then with Australian financial services company Flexi Group. He came

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<v Speaker 1>to the US to serve as cfo it's sprint, leading

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<v Speaker 1>the company's turnaround efforts. That was very lucky. I had

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<v Speaker 1>the opportunity to work in Europe, Um, Australia, New Zing,

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<v Speaker 1>and Asia in the United States, so I'm truly a

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<v Speaker 1>global citizens. People ask me where at home. I answer

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<v Speaker 1>to that question is home is where I'm not. Home

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<v Speaker 1>for HP is now just outside Houston, Texas, where the

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<v Speaker 1>company opened its new global headquarters this spring. For CEO

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<v Speaker 1>Antonio Nary. The campus is a passion project. I love design,

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<v Speaker 1>I love art, and I felt this was a unique

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<v Speaker 1>opportunity for me to start with a blank sheet of paper.

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<v Speaker 1>This was a piece of Latin nothing. There was nothing

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<v Speaker 1>here and it's a remarkable In two years were able

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<v Speaker 1>to build these five hundred thousand square feet side with

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<v Speaker 1>a unique experience digitally enabled in everything we do. HP

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<v Speaker 1>has an abandoned Silicon Valley. A number of employees and

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<v Speaker 1>business units remain based in the Bay Are Yeah, but

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<v Speaker 1>nary in Roboti believe the expanded presence in Texas strengthens

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<v Speaker 1>the company operationally, financially and culturally. We felt that we

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<v Speaker 1>have a lot of opportunity to streamline and make the

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<v Speaker 1>company were more efficient. The reason to move here is

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<v Speaker 1>to get the best of both words. Having a presence

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<v Speaker 1>hid in Texas allows us to recruit and retain talent,

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<v Speaker 1>particularly on the diverse side of the house. People don't

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<v Speaker 1>realize that Houston, Texas is the most diverse city in

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<v Speaker 1>the United States. In this side, we have a twenty

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<v Speaker 1>five megawatts data center where a lot of the development

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<v Speaker 1>gets done from all over the world. The energy costs

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<v Speaker 1>is significant cheaper here than California. I will now be

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<v Speaker 1>able to sustain that in California. What we're seeing in

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<v Speaker 1>a more macro environment is that corporations are looking at

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<v Speaker 1>locations that have a healthier business environment from taxation regulation.

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<v Speaker 1>They're looking for places that they can find new talent

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<v Speaker 1>anti talent is scarce. What we're finding is that access

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<v Speaker 1>to talent is still the biggest bobbleneck to productivity, and

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<v Speaker 1>so companies on an increasing basis, whether it's Texas or

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<v Speaker 1>other places in the United States or even globally, are

0:14:10.360 --> 0:14:12.960
<v Speaker 1>working more towards this hub and spoke model where they

0:14:13.040 --> 0:14:15.720
<v Speaker 1>might have a center of excellence or or a hub

0:14:15.800 --> 0:14:19.400
<v Speaker 1>in one individual city outside of the main headquarters. And

0:14:19.480 --> 0:14:22.760
<v Speaker 1>increasingly we're finding that is happening outside of Silicon Valley.

0:14:23.120 --> 0:14:26.040
<v Speaker 1>It was a big decision, but it actually if you

0:14:26.360 --> 0:14:29.480
<v Speaker 1>put it in the context as to why we made

0:14:29.520 --> 0:14:33.480
<v Speaker 1>the decision, it actually made sense. So we had a

0:14:33.520 --> 0:14:36.800
<v Speaker 1>longstanding presence here in Houston for the past i would

0:14:36.800 --> 0:14:40.280
<v Speaker 1>say twenty some years since the Compact merger. We bought

0:14:40.280 --> 0:14:43.160
<v Speaker 1>a piece of land, we started building this building, and

0:14:44.200 --> 0:14:46.760
<v Speaker 1>in doing so, we had to also recalibrate how we

0:14:46.840 --> 0:14:50.520
<v Speaker 1>were building it because the pandemic hit us, and we

0:14:50.680 --> 0:14:54.920
<v Speaker 1>thought about recreating a work environment that is very, very different,

0:14:55.000 --> 0:14:57.480
<v Speaker 1>that is catered for this new structural way of working,

0:14:57.560 --> 0:15:01.040
<v Speaker 1>which we call edge to office where people don't always

0:15:01.160 --> 0:15:03.760
<v Speaker 1>come to the office to work, can work remotely from

0:15:03.800 --> 0:15:06.520
<v Speaker 1>their homes, their edges, but have to come back to

0:15:06.600 --> 0:15:11.320
<v Speaker 1>the office for specific reasons such as team meetings, customer meetings,

0:15:11.760 --> 0:15:15.760
<v Speaker 1>and in general collaboration. With regards to the hybrid work model,

0:15:16.280 --> 0:15:18.600
<v Speaker 1>do you see that's something as something that will persist

0:15:18.800 --> 0:15:22.280
<v Speaker 1>longer term when the pandemic is long gone. Yes, no question,

0:15:22.440 --> 0:15:25.760
<v Speaker 1>this will persist. And I think we are witnessing right

0:15:25.800 --> 0:15:27.800
<v Speaker 1>now a societal change in the way we work are

0:15:27.800 --> 0:15:29.720
<v Speaker 1>You're no longer going to measure productivity in the same

0:15:29.760 --> 0:15:32.480
<v Speaker 1>way as in the past. You're gonna be focusing on outputs.

0:15:32.840 --> 0:15:35.320
<v Speaker 1>Never mind what people do in their private times. It

0:15:35.400 --> 0:15:37.800
<v Speaker 1>doesn't really matter to a company as long as the

0:15:37.880 --> 0:15:42.080
<v Speaker 1>output appears there. HP launched its edge to office hybrid

0:15:42.160 --> 0:15:45.840
<v Speaker 1>work initiative in the fall of the new campus is

0:15:45.960 --> 0:15:49.280
<v Speaker 1>designed without flexible model in mind. We have to admit

0:15:49.600 --> 0:15:53.400
<v Speaker 1>that the pandemic has had its toll on mental health

0:15:53.960 --> 0:15:57.320
<v Speaker 1>in the workforce across the world, and so it's really

0:15:57.360 --> 0:15:59.760
<v Speaker 1>incumbent on us employers to make sure that we create

0:15:59.800 --> 0:16:03.720
<v Speaker 1>an environment where our employees feel at ease to come

0:16:03.760 --> 0:16:06.320
<v Speaker 1>to work, they feel supported and That's why we created

0:16:06.360 --> 0:16:09.040
<v Speaker 1>the environment that you see between this the indoor with

0:16:09.200 --> 0:16:12.280
<v Speaker 1>two amazing builders and our door amenities. We have a

0:16:12.520 --> 0:16:17.000
<v Speaker 1>truly um you know, experience for their employees that they

0:16:17.040 --> 0:16:19.560
<v Speaker 1>can host customers, they can innovate, they can collab, what

0:16:19.760 --> 0:16:22.800
<v Speaker 1>they can socialize, and we have so many events. And

0:16:23.080 --> 0:16:26.119
<v Speaker 1>I will say the one difference between here in California,

0:16:26.200 --> 0:16:28.160
<v Speaker 1>this is way more community driven. So we have a

0:16:28.200 --> 0:16:32.760
<v Speaker 1>lot of events here like the famous chili cook event.

0:16:33.400 --> 0:16:37.720
<v Speaker 1>HPS annual Chili cook Off allows hard Grobrioty to indulge

0:16:37.760 --> 0:16:41.240
<v Speaker 1>in one of his favorite hobbies. The finance chief is

0:16:41.320 --> 0:16:44.520
<v Speaker 1>also an average chef. Cooking has a lot of parallels

0:16:44.560 --> 0:16:46.280
<v Speaker 1>with finance and being a CFO. There's a lot of

0:16:46.320 --> 0:16:50.240
<v Speaker 1>indirect satisfaction. You know, you you only you only know

0:16:50.800 --> 0:16:52.440
<v Speaker 1>that you're doing a good job when you see other

0:16:52.560 --> 0:16:54.800
<v Speaker 1>people recognizing it. And there's nothing better than when you

0:16:54.880 --> 0:16:57.280
<v Speaker 1>serve a nice meal to your friends or family who

0:16:57.320 --> 0:16:59.680
<v Speaker 1>come over. I'd love to do that. It's hard work,

0:16:59.720 --> 0:17:03.680
<v Speaker 1>but it's nice. As HPE moves forward with its strategy

0:17:03.760 --> 0:17:06.840
<v Speaker 1>to deliver software as a service and gain subscribers on

0:17:06.920 --> 0:17:10.879
<v Speaker 1>the green Lake platform, it's growth and customer demand is encouraging,

0:17:11.480 --> 0:17:14.840
<v Speaker 1>but supply chain disruptions have slowed the company's ability to

0:17:15.080 --> 0:17:19.040
<v Speaker 1>fulfill those orders. It's a problem that's plagued many industries

0:17:19.119 --> 0:17:22.200
<v Speaker 1>since the onset of the pandemic, compounded by the war

0:17:22.240 --> 0:17:25.399
<v Speaker 1>in Ukraine. Nobody, including HP is going to have an

0:17:25.440 --> 0:17:28.640
<v Speaker 1>easy time with the supply chain. I mean, we started

0:17:28.720 --> 0:17:31.480
<v Speaker 1>the just in time concept in the seventies and it's

0:17:31.600 --> 0:17:34.639
<v Speaker 1>taking years for organizations to back their way out of

0:17:34.760 --> 0:17:38.160
<v Speaker 1>that and find a more distributed supplier based and more

0:17:38.280 --> 0:17:42.000
<v Speaker 1>local supplier. Taric Robioti can't wave a wand and clear

0:17:42.080 --> 0:17:45.160
<v Speaker 1>the backlog all at once, he told Romaine Bostick. He's

0:17:45.200 --> 0:17:48.560
<v Speaker 1>focused on long term solutions. The world is no longer

0:17:48.600 --> 0:17:52.359
<v Speaker 1>flat and that's the practical reality we have to reckon.

0:17:52.600 --> 0:17:55.600
<v Speaker 1>And in that context, therefore, it's really important that we

0:17:55.760 --> 0:17:58.879
<v Speaker 1>get closed to where our customers are, and so we

0:17:59.040 --> 0:18:03.040
<v Speaker 1>have to rethink our network of manufacturing plants. We have

0:18:03.160 --> 0:18:05.760
<v Speaker 1>to rethink our network of our suppliers, and I think

0:18:05.840 --> 0:18:07.680
<v Speaker 1>the whole world and the whole ITEA industry has to

0:18:07.720 --> 0:18:11.880
<v Speaker 1>find a new equilibrium with supply chains that are designed

0:18:11.920 --> 0:18:15.200
<v Speaker 1>for speed, resiliency, and costs as opposed to just be

0:18:15.720 --> 0:18:19.240
<v Speaker 1>inefficient and designed around cost. Our goal is to create

0:18:19.320 --> 0:18:23.640
<v Speaker 1>a supply chain that is very much designed for optimal

0:18:23.720 --> 0:18:27.119
<v Speaker 1>visibility at every point in time of where components are,

0:18:27.440 --> 0:18:31.360
<v Speaker 1>where the working progress products are, and have the ability

0:18:31.480 --> 0:18:37.080
<v Speaker 1>to shift production and materials in different continents where we operate. So,

0:18:37.160 --> 0:18:40.320
<v Speaker 1>for example, we invested in a manufacturing plant in the

0:18:40.359 --> 0:18:42.480
<v Speaker 1>Czech Republic because it made a lot of sense for

0:18:42.600 --> 0:18:45.720
<v Speaker 1>us to have a presence in Europe. This is really

0:18:45.760 --> 0:18:47.600
<v Speaker 1>a new reality that we have to navigate. It's not

0:18:47.760 --> 0:18:50.919
<v Speaker 1>like we went backwards and capacity. In fact, capacity has

0:18:51.000 --> 0:18:54.760
<v Speaker 1>been added. The issues that demand has outpays any capacity

0:18:54.840 --> 0:18:58.160
<v Speaker 1>that we ever imagined, so now we need to add capacity. Also,

0:18:58.240 --> 0:19:00.240
<v Speaker 1>we need to transition some of the technology just to

0:19:00.320 --> 0:19:04.240
<v Speaker 1>the um notes and that takes time. Turk Roboti will

0:19:04.240 --> 0:19:07.560
<v Speaker 1>play a key role for HP as it retools to

0:19:07.760 --> 0:19:12.000
<v Speaker 1>face new challenges. Romane Bostick asked him what skills the

0:19:12.119 --> 0:19:15.680
<v Speaker 1>CFO needs to truly succeed is the chief Future officer?

0:19:16.400 --> 0:19:18.200
<v Speaker 1>The first quality you need to look for a CFO.

0:19:18.280 --> 0:19:20.520
<v Speaker 1>It's almost able stakes, right, It's integrity, and it's not

0:19:20.560 --> 0:19:23.760
<v Speaker 1>about being honest or or dishonest. Of course we're all honest,

0:19:24.040 --> 0:19:26.440
<v Speaker 1>but it's integrity. Of thought in the way you present

0:19:26.520 --> 0:19:29.160
<v Speaker 1>the fact base, which is the data. If you don't

0:19:29.200 --> 0:19:31.399
<v Speaker 1>have that in a CFO, stop looking move on right.

0:19:31.480 --> 0:19:35.399
<v Speaker 1>That's the first and foremost thing. The second most important

0:19:35.440 --> 0:19:39.280
<v Speaker 1>thing is the ability to be strategically agile. It's absolutely

0:19:39.400 --> 0:19:42.919
<v Speaker 1>critical to be injecting in the work. That is CFO

0:19:43.040 --> 0:19:47.840
<v Speaker 1>performs strategic thinking. The third I would say, if you

0:19:47.960 --> 0:19:50.040
<v Speaker 1>think about it in these terms, we are a little

0:19:50.040 --> 0:19:52.200
<v Speaker 1>bit the stewards of the resources of the company. For

0:19:52.440 --> 0:19:54.399
<v Speaker 1>the company and for the CEO, we've got to make

0:19:54.440 --> 0:19:57.359
<v Speaker 1>sure that resource allocation is up to scratch and that

0:19:57.560 --> 0:20:01.160
<v Speaker 1>we are allogating resources where there is the biggest return possible.

0:20:01.320 --> 0:20:04.639
<v Speaker 1>And finally, we also have to be coaches. We have

0:20:04.840 --> 0:20:07.520
<v Speaker 1>to coach our colleagues and team members, and my job,

0:20:07.640 --> 0:20:08.920
<v Speaker 1>the way I think about it is we have to

0:20:09.480 --> 0:20:12.320
<v Speaker 1>shine the spotlight on their strength but also at the

0:20:12.359 --> 0:20:16.639
<v Speaker 1>same time make sure that we understand our weaknesses and

0:20:17.359 --> 0:20:20.280
<v Speaker 1>are clear about the areas that we need to improve.

0:20:20.760 --> 0:20:23.159
<v Speaker 1>So a lot of the CFO job is to distill

0:20:23.240 --> 0:20:26.200
<v Speaker 1>what I simply would say is tough love. It's about

0:20:26.240 --> 0:20:30.000
<v Speaker 1>being tough right matters, and also be encouraging in other circumstances.

0:20:30.160 --> 0:20:33.160
<v Speaker 1>What's the opportunity here for HP over the next ten years.

0:20:33.480 --> 0:20:36.080
<v Speaker 1>The opportunity for HP over over the next ten years

0:20:36.359 --> 0:20:40.119
<v Speaker 1>is to redefine the industry. And because we firmly betive

0:20:40.200 --> 0:20:42.840
<v Speaker 1>with Antonio that the future of the industry is extra

0:20:42.920 --> 0:20:45.840
<v Speaker 1>cloud and I think that there will be a growing

0:20:45.960 --> 0:20:49.280
<v Speaker 1>acceptance and it starts already. You have evidence of it

0:20:50.160 --> 0:20:52.720
<v Speaker 1>that the future is hybrid and that the future of

0:20:52.760 --> 0:20:56.440
<v Speaker 1>an enterprise is to become essentially a digital service provider.

0:20:57.080 --> 0:21:00.359
<v Speaker 1>The pandemic has taught us that the enterprises who formed

0:21:00.560 --> 0:21:03.240
<v Speaker 1>the best during that period, we're the ones who have

0:21:03.320 --> 0:21:06.840
<v Speaker 1>digitized their business models. And for an enterprise to digitize

0:21:06.840 --> 0:21:09.280
<v Speaker 1>their business models, they have to think about it edge

0:21:09.320 --> 0:21:11.520
<v Speaker 1>to cloud and where the company to help them doing. So,

0:21:11.960 --> 0:21:13.320
<v Speaker 1>what do you think is going to be the main

0:21:13.440 --> 0:21:16.720
<v Speaker 1>challenge for HP over the next ten years. Well, I

0:21:16.760 --> 0:21:21.520
<v Speaker 1>would say the main challenges ourselves. We have to really

0:21:21.600 --> 0:21:25.520
<v Speaker 1>be recognizing that the opportunity is there for the taking

0:21:25.640 --> 0:21:28.520
<v Speaker 1>and we have to go after it resolutely and and

0:21:28.680 --> 0:21:34.080
<v Speaker 1>fact we can't really wait, be complacent and not execute

0:21:35.200 --> 0:21:37.960
<v Speaker 1>aggressively to capture the opportunity. So it's not to us

0:21:38.040 --> 0:21:40.240
<v Speaker 1>really and we think with with the right focus and

0:21:40.320 --> 0:21:43.119
<v Speaker 1>with the right team, we can get there. How do

0:21:43.200 --> 0:21:46.000
<v Speaker 1>you expect your role as CFO to change over the

0:21:46.080 --> 0:21:51.960
<v Speaker 1>next ten years. My role is constantly in change mode.

0:21:52.160 --> 0:21:54.200
<v Speaker 1>If you start with a view that the world is

0:21:54.240 --> 0:21:56.600
<v Speaker 1>in constant change and you have to adapt, you have

0:21:56.680 --> 0:21:59.960
<v Speaker 1>to anticipate on what comes next, strategic thinking is vague.

0:22:00.080 --> 0:22:03.920
<v Speaker 1>He for that purpose, you also have to make sure

0:22:03.960 --> 0:22:07.399
<v Speaker 1>that your team is geared towards it, that you understand

0:22:07.600 --> 0:22:11.280
<v Speaker 1>the demands that this constant change puts on the team.

0:22:12.000 --> 0:22:15.680
<v Speaker 1>And then you also have to continue to polish your stamina,

0:22:16.200 --> 0:22:19.360
<v Speaker 1>build a grid that you need to continue to navigate

0:22:19.400 --> 0:22:22.560
<v Speaker 1>the journey. For someone who maybe got promoted to CFO today,

0:22:22.640 --> 0:22:24.280
<v Speaker 1>what would you tell them, just for the first day

0:22:24.320 --> 0:22:26.320
<v Speaker 1>on the job. What's the best advice you can give them?

0:22:26.720 --> 0:22:29.920
<v Speaker 1>Enjoy it. It's wonderful. You have a unique vantage point

0:22:29.960 --> 0:22:33.760
<v Speaker 1>in any company to truly understand what's going on. No

0:22:33.920 --> 0:22:37.000
<v Speaker 1>one else in the company has access to the data

0:22:37.400 --> 0:22:41.560
<v Speaker 1>that tells you what's going on. Have fun for Romaine Bostick,

0:22:41.960 --> 0:22:44.440
<v Speaker 1>I'm Taylor Regg's. This is Bloomberg