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» Is this Kosher?

An analyst firm approached both HP and a competitor offering to compare and contrast both companies blade servers to see which one used power more efficiently. HP declined, so the competitor picked up the tab for the study. We were “shocked, shocked, I tell you” to learn that the competitor’s system was 10% more efficient than HP’s. We learned this by reading the white paper on the analyst firm’s web site.

Our engineers and marketing staff are still blue in the face showing the 7,328 reasons why the study is flawed. But, fair enough, the competitor paid for the results it wanted and the outcome is that HP is now in a defensive posture. So it goes.

The big gotcha is not the predicted results nor the predicted complaints about the results. What caught our attention was the omission. No where in the paper or on the web site does the analyst firm fess up to the fact that the competitor paid for the study, the white paper and the web posting of the results. On the competitors web site, there is a companion video interview with the head of the analyst firm, and in the video it is stated that the competitor funded the work. So, the only indication of who paid comes if you take the time to view the video.

So, to the two analysts who might read this blog, is the omission of the sponsorship fair and ethical? Inquiring minds need to know.

Posted by HP Corporate AR team on Friday, January 18, 2008 5:41 PM
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Comments for Is this Kosher?

Re: Is this Kosher?

Another exampole of why the Analyst Community must consider an Analyst Code of Conduct in the future. Improved self-regulation is a key to increasing end user confidence. The public has come to know what to expect from journalists in terms of "disclosure", but today each analyst firm has thier own views (policies) on disclosure that often vary as needs / circumstances require.

We blogged on the subject last year, see:

http://www.longhaus.com/index.php?option=com_content&task=view&id=53&Itemid=28

and

http://www.longhaus.com/index.php?option=com_content&task=view&id=64&Itemid=28

Posted by sam.higgins on 1/20/2008 7:43 PM
» Permalink 

Re: Is this Kosher?

IHMO, analysts should always insist on declaring when a report has been sponsored and by whom - and in a manner that makes it easy to see. To do otherwise undermines their reputation for independence - regardless of whether this is a real piece of research or a "pay for play" study. A bit silly of the analyst firm to play games like this if you ask me. Reputations are hard to build and yet so easy to ruin. If you could drop me an email privately, I'd like to check this out and perhaps blog on it myself. Regards, David

Posted by dr2020 on 1/21/2008 11:33 AM
» Permalink 
No, it is not.

Good afternoon Carter,

I just received word of your post. First let me answer your question, and then I'd like to add a few related comments.

Authors should always disclose information that may bias their methods, choices of supporting evidence, and conclusions. This applies to any medium - books, analyses, reports, blogs, speeches, presentations, and any other form of communication - in which an individual, group or organization wishes to impart a certain perspective to others. Much to the disappointment of the average employee or manager, it applies to them as well. That is to say, this challenge is not unique to industry analysts. We should all strive to minimize personal bias, and disclose it in our reports and conversations.

Critical readers should (and will) scrutinize such disclosures. Of course readers bring their own biases to anything they read, so their written and verbal responses should be held to the same standard of disclosure and scrutiny.

In this context I would say it is unfair and unethical for an author to omit information about the source of funding. This occurs frequently in medicine with reports authored by doctors and researchers, and silently funded by big pharma.

However, I would also say that it is unfair for you to imply that the results of that report are biased simply because a competitor sponsored the research and HP chose to decline. That is what you are implying. Instead, quantify and qualify the 7,328 alleged reasons why HP believes that firm’s report is flawed and let your customers decide for themselves. At the very least, point out a sufficient number of factual inconsistencies and/or inaccuracies to cast doubt upon the author’s line of reasoning.

We rarely write company- or product-specific reports these days – perhaps a dozen each year. Quite frankly, the most challenging obstacles faced by organizations today have very little to do with technology – and a lot to do with personnel. However, when we do author such reports, on the rare occasion that one is sponsored we clearly disclose the sponsor on the final line of the last page along with the copyright statement. We do our best to minimize bias, as anyone should, and readers are free to decide for themselves.

Now, in response to Sam’s comment:

Sam, call me a cynic, but I believe those who trumpet Codes of Conduct are least likely to actually adhere to them. The world’s largest retailer is well known for violating its own published policies. In fact, it is known to have confidential documents that contradict its public policy. What, then, is the value of the published policy?

Note that this is not a behavior unique to corporations, and consumers are hardly in a position to take a moral high ground. Ask yourself how many individuals violate the codes of conduct of their employers, occupations or faiths every day, or the number of people who do not practice what they preach at work, at home or in their communities. This is not a justification for deception and deceptive practices (there is none), but it is a suggestion that one take a long hard look in a mirror before pointing fingers at others.

You can imagine my amusement when someone questions the integrity of a firm’s research project, but few people cry out over Salary.com’s report that businesses lose some $544 billion annually in productivity as employees waste 1.86 hours per 8-hour work day running personal errands, surfing the internet and “spacing out”. This based on a survey of 2,706 employees, not companies.

Honesty, integrity and credibility start at home. If employees fail to carry these values into the office, we can never expect anything more than what we face today.

I am a firm believer in the Golden Rule. Follow that one simple rule and you will have found your own personal code of conduct.



Posted by josephmartins on 1/24/2008 8:41 PM
» Permalink 
Re: Is this Kosher?

I read the blog daily (#3).

Posted by geezypete on 2/11/2008 6:56 PM
» Permalink 

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