Leo Apotheker has just added a valuable new euphemism to the business lexicon. In striving to maintain the profit margin in its services division, he said, HP had “over-executed operationally.” That’s a justification other CEOs will no doubt rush to take up to explain away their companies’ over-zealous, but misguided, efforts.

But if HP is executing so well on its current business and failing to invest in the future, as Mr Apotheker suggested, then why is the lower margin now projected for the division closely tied to existing contracts? Read more