Peter Chou rally HTC troops, aims to kill bureaucracy

HTC’s Peter Chou is not impressed.

We have posted about HTC’s troubles recently, and it is obvious HTC’s management is not blind to their travails either.

HTC’s CEO Peter Chou has sent a memo to HTC staff which has been leaked in which he blames creeping bureaucracy for their recent poor performance.

“We have people in meeting and talking all the time but without decision, strategic direction or sense of urgency,” Chou wrote to HTC’s workers, Chairwoman Cher Wang and the board of directors in an e-mail obtained by Bloomberg News. “Bureaucracy crept in without clear ownership. We agreed to do something but we either didn’t do it or executed it loosely.”

“We are disappointed that our sales are down while smartphone market share is growing,” (but) “we are coming back.”

Chou did admit that the company was facing much bigger competitors however, but still blamed complacency, saying:

“Our competitors can leverage their scale, brand awareness and big marketing budget to do things which HTC could not do,” Chou wrote. “The fast growth from the last two years has slowed us down.”

Chou, 55, said the company needs to build on its culture, “committed” employees and customer relationships.

“Don’t let the processes, rules and norms to impact our important goals,” he wrote. “Of course we have to follow certain rules and criteria but don’t let small things kill the major goals.”

“The industry’s best rating” for HTC’s One X handset is evidence the company has the best products, Chou wrote. There are also strong products in the pipeline for this year and early next year, Chou wrote without naming them.

Chou said workers have every reason to remain confident and should not be “influenced by noises from market and industry” because the company is “just having short-term challenges.”

“Please make sure that we kill bureaucracy,” he wrote. “Stay firm with the hero innovations and make them even bigger and deliver them.”

HTC’s is rumoured to be releasing 3 Windows Phone 8 handsets next month.  Hopefully these handset will have some “hero innovations” desperately needed to compete against Nokia’s Windows Phone 8 onslaught, which saw the company take 80% of the Windows Phone market in q2 2012.


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