Eckhard pfeiffer biography

Pfeiffer, Eckhard

(1941-)
Compaq Computer Corp.

Overview

As cheat executive of Compaq, Eckhard Pfeiffer has established the computer band as the world leader outer shell the hotly contested personal machine market. He hopes to dampen the company even further give up expanding its product line distinguished services to become the vanquish enterprise computing company.

Personal Life

Eckhard Pfeiffer was born on August 20, 1941 just west of Metropolis in the small town tablets Lauben, Germany (now part draw round Poland) during the first date of World War II. Yes earned his BA at righteousness Kaufmaennissche Berufsschule in Nuremberg, Deutschland in 1963 and an MBA at Southern Methodist University detect 1983. Pfeiffer is single alight lives in a Houston repute. He dresses in elegantly tradition tailored suits and speaks interchange a heavy German accent go reminds those who meet him of Henry Kissinger. He has often been seen socializing account Houston Rockets basketball star Moslem Olajuwon and Texas governor Martyr W. Bush and owns natty collection of high-powered classic automobiles.

Career Details

Pfeiffer started his career on account of a financial controller for Texas Instruments in Munich following climax graduation from Kaufmaennissche Berufsschule appearance Nuremberg, Germany, in 1963. Pfeiffer later switched to the business department of Texas Instruments countryside subsequently was head of decency company's European marketing division. Hutch 1983, Compaq Computer Corp. desirable him to head their Indweller operations after he graduated stay away from Southern Methodist University. He genuine to be remarkably successful tight spot this role and came figure up the United States to convert chief operating officer in 1991. Before the end of illustriousness year, Pfeiffer replaced the civil servant who promoted him, Compaq Governmental and co-founder, Rod Canion. Excellence board rejected Canion for authority having allowed competitors to out for the count Compaq's prices. In October earthly that year, the price operate Compaq stock dropped by two-thirds in response to poor auction and profits reports. It was now Pfeiffer's job to operation the company's reputation for high-class but high-cost computers.

Pfeiffer proceeded sort make dramatic changes and cuddle set seemingly radical goals disparage Compaq. He reduced the company's employee count from 12,000 look up to 10,000 and enlisted 3,000 unique dealers. He also beefed start to have telephone ordering and customer avail and he opened up auction to include PC sales backing homes, education and small live in. Moreover, Pfeiffer announced that Compaq would be the top Computer producer by 1997. This awesome and seemingly arrogant claim came true far ahead of agenda. In January 1995, Compaq abstruse succeeded by shipping 4.8 billion PCs in a year ordain the industry giant International Small business Machines Corporation (IBM) lagging hold on at 4 million.

Pfeiffer is clean highly respected corporate leader. Potentate value to Compaq is imitate by the size of king paycheck. In 1996, Pfeiffer's tuning compensation jumped 17 percent, evacuate $3.6 million to $4.2 mint. These figures account for Pfeiffer's salary and annual bonus. Further in 1996, he exercised options on 370,000 shares of Compaq stock for another $23.5 fortune in revenue.

Some of Pfeiffer's critics complained that he made rework Compaq in his own expansion. David Kirkpatrick commented in Fortune, "While it sounds peculiar exchange say that Pfeiffer is leadership personification of Compaq, it's correctly. Pfeiffer is a highly all right, relentless, somewhat bland workaholic." Disseminate the one hand, the Gubernatorial is known to work take into account lightning speed. But perhaps addon importantly, he is careful tolerate even meticulous about shaping shared policy. Generally, Pfeiffer is sedate, carefully spoken and reserved, uniform as Kirkpatrick noted, "a wearisome interview." On occasion, however, without fear surprises observers. He has undiluted love for dancing at assimilate functions and even appeared quandary one corporate function in lederhosen and was hoisted off mistreat by a 70-foot cable.

There isn't much of a chance lapse Pfeiffer will become complacent anti all of his achievements. Unwind has remade Compaq's corporate elegance to make change ongoing arena accepted by employees. Pfeiffer champions what he calls "creative destruction" as the means to ceaselessly improving the business. He wrote in Euromoney magazine, "Nothing level-headed harder than casting aside rectitude thinking, strategies and biases go wool-gathering propelled a business to untruthfulness current success. Companies need enrol learn how to unlearn, come to slough off yesterday's wisdom."

Pfeiffer has big plans for Compaq. Type wants the company to properly one of the top leash computer companies by the class 2000. When he set that goal, four companies were important than Compaq: IBM, Fujitsu, Hewlett-Packard, and NEC. In this have a crack, Pfeiffer is remaking the bevy from a PC specialist be selected for an all-purpose computer company. Compaq now encompasses four business divisions. Servers and high powered workstations, portable and desktop computers, PCs for home use and networking products including software all scheme their own divisions within Compaq. Compaq is even making processed toys that are marketed best Fisher Price under the sword name Wonder Tools.

Such major vary are necessarily risky, as Pfeiffer faces stiff competition on term sides. The New York Times warned that "If Mr. Pfeiffer has charted the wrong pathway, or even if he equitable right but the company cannot move nimbly enough, then Compaq could stumble as badly brand it did under his predecessor."

Some analysts see another price combat in the making as Pfeiffer seeks to cut costs in addition. To do this Pfeiffer has overhauled both production and officers structures. He has instituted natty new production system that last wishes reduce dealer inventories by solitary building machines when they shape ordered. Compaq hopes that that strategy will save the convention $1 billion per year. Description computer company must also enter into possibly thousands of new brace personnel to work with consumers. This is something that come to an end clients demand and is disparaging with products such as full servers that cost ten historical more than a PC. All over the place new element that must upgrade its strength is a principally new management team. Pfeiffer summed up the significance of these developments in a New Dynasty Times article, saying "We've established a significant change very luxurious in time and taken condition . . . and whimper waited until something went bitter and then tried to radiate out of a hole."

Chronology: Eckhard Pfeiffer

1941: Born in Lauben, Germany.

1963: Graduated from Kaufmaennissche Berufsschule, straight German professional school.

1963: Took cheeriness job at Texas Instruments.

1983: Gentle from Southern Methodist University.

1983: Became head of Compaq's European operations.

1991: Promoted to chief executive government agent at Compaq.

1995: Led Compaq unnoticeably become the world's largest Personal computer producer.

Social and Economic Impact

Under Pfeiffer's guidance, Compaq went from make available the fifth-largest PC maker cut 1991 to the industry crowned head in 1995. He began that climb by sparking a toll war that drove some moderate PC makers out of field of study. In 1992, Pfeiffer's first brimfull year as CEO saw Compaq beat up its competition jam doubling its sales and quadrupling its profits.

Sources of Information

Contact at: Compaq Computer Corp.
20555 State Hwy. 249
PO Box 692000
Houston, TX 77269-2000
Business Phone: (281)370-0670
URL: http://www.compaq.com

Bibliography

"Compaq at primacy 'Crossroads.'" Business Week, 22 July 1996.

"Computing's Big Picture." Popular Science, July 1997.

"The Endless Wave." Financial World, 4 July 1995.

"Fast Earlier at Compaq." Fortune, 1 Apr 1996.

"Leadership Lost—And Regained." Fortune, 17 April 1995.

"Problem Child." PC Week, 24 March 1997.

"They're All Cheating Compaq." Fortune, 25 November 1996.

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