YH P's battle for worldwide competitiveness

YH P's battle for worldwide

competitiveness

Ed ito r : Brad Wh it wor th

Art di rec to r : Annette Yatov uz

Associate editors: Betty Gerard .Joanne Engelhardt

Contributors : Lane Webs te r Vcr non Andrews

Ct rcu la tio n : Kathleen Cogar t)'

MEASURE "Man is the measure of all Ihings.' - Pro/a fJom s (circa .181--111 H .C.)

Mcasurc is published s ix IiJlH's a year for employees and associ ates ofHcwlet t-Packurd Com pan)'. Produced by Corpo rate Public- Helations. Internal Communication Dr-p a r t rm-n t . Gordon Brow n. m a naue r. Add rcs s cor r cs po 11 · de-nrc to Measure. He-wlet t-Pack ard Company 20BR PO Box IO~W I . Palo Alto . California. 9430:~·OH90

USA. Report change of address 10 your loc-a l personnel depart mcnt .

Hewlet t-Packurd Company designs and manutactu res computers, electronic tesl equipmt'nl. handheld ca lcu lators. elect rome components . med ical electromr equipment and in s trume n ta t ion for chemical analvs rs . Manufarturtng Iaclliues are locat ed in 23 U.S. cities inei~ht states and in 10 cities in nine countr res in Ih e res t of the world. HP sales and service offices can be found in more Ihan 80 U,S. cit ies and (including dIStributorships) in app rox trnately 200 cities in 70 coun rrtes a round the world. HP employs more than 74 000 people

ON THE COVER In the spiril <if the samurai. Japanese businesses compete most fiercebj on theirown homeground. YHP is Hewlett·Packard·s highly successful champion in that arena. as described by slo,[fwrirer Gordon Brown on pages 310 9 , To symbolize rhat. Measure asked Carl Nakano 10 model samurai equipmentJrorn the co lleelion ot Taeko Brown qf Palo AILO. Cooer photo by Tom UplOn .

UPFRONT Company messages move at the speed of lig ht from desk to desk.

If Hip van Winkle had fallen asleep at HI' in 196-l, he probably wouldn 't recognize iodays speedy met hods

for moving messages around the company

Cone are the clunky teletype rnachines and thetr rmles and 11111esof punched papn rape (which, in tilt' '6 0 s . were much faster t han 1he postal servtce l. In their place art' HP termi nals, cornpu ters and sort W<I r e exchang ing bits and byles at breakneck speed .

The move toward todays fast. COIll

pan~' message system gOI liS stan in 1970 when Corporate Market ing Services began" ork on \\ hat would become the backbone of t he network: COMSYS. short for Corumumcauon System

The idea was to improv e the way product orders moved from sales off'rce to factory over a patchwork of telephone connections and teletype machines The system had a number of drawbacks. Order-processma employees had 10 send one message 10 Far tory A [or products 1,2 and 3 but a separate rele type message to Factor!' B lor products 4,5 and 6, Orders and product descriplions were free-form and different from offlce to office And because the teletype transmission system had 110 bu ilt· in check for errors, messages often arrived as gibberish ,

The COMSYS system. using HI' 2100 minicomputers . Iirst ltnked sales reo glon headquarters to factories through

5O r-- - - - - - - - - - - -

a central potrn in PaloAILO \Vithin a few vears , the svstern moved out 10 in dude: i ndtv idual sales offices. In con cert wu h order-processing software called HEAIH, the new COMSYS sys te m conquered the problems of inconsist ent formats and garbled rransrrussions .

COMSYS also brouuht a riew capabtl it v to HI' facilities around the world : ease in sending general /llt'ssa,~es

(short 1lll"ITlOS, reminders , letters. etc .) along with sales and order information , In the ot'ginninll. t hcseaencral messages accounted for only 3 percen tor the total \ '01 II me .

Today these gt'lltTal messages ac count for about 20 percent 01 aU liP transrrussrons ' I think vuull see that volume increase in tile future. " says Hank Taylor. manager of Corporate comrnuntcauons and office svsierns.

HI'DE:SK Iits messages dubbed " Des kg ra m s 'JIS now playing a big role in the company's internal message Sl rale!{y, Employees can send messages (includma charts and ,gra ph s ) from the ir HP 3000 terminal drrectlv to an other HPDESK user

"Wh ile typical Deskurarns are now delivered desk LO desk overrught . in the next vear we expect an employee in Ge neva. Swit zerland, will be able 10 send a message to an employee in North Hollywood , California. and have it arrive within an hour's time ," says Hank M

- - - - - - - - - - - - --..

40

30

20

BIWONS OF CHARACTERS PER MONTH e>v.r 1M last IIV'8 years, the VOlumeof Infonnatton pas.slng ttuOCJgh HP'selectronic: mall routing center has Increased from 4 billion to almost 40 billion characters per month,

MEAS UHE 2

THE COMPETITIVE

EDGE: YHP's questfor total quality

It comes as no surprise to the people ofYokogawa-Hewlett-Packard that they are widely quoted and consulted today in matters of quality and productivity. In 1982 YHP waged and won a momentous challenge for the Deming Prize-the award for allaround quality in Japanese industry. Immediately, a flood ofnews reports, invitations and requests-worldwide as well as local-transformed this "samurai" of industry into one of its "shoguns." The fact that YHP represented a mix ofJapanese and American business styles added special interest to the event.PHO'O ByTOM UP'O"l

March-April 1984

EDGE

How drd th is come a bou t '! What forces were at work to propel t lu s jom tly owned HP company (wh ic h celebra ted Its 20th a n n ive rsa ry la st yea r ) into the s p o tligh t? Even more to the point. how did it rais e itselfup from a position near the bot torn of l he HI' barrel In quali ty a n d profitability 10 years ago to one of leadcrshtp and e-xa m p le today?

At the start. it helps to undersiund that Japan is Widely regardcd as having b ecome the most intensely co m pe t it ive marketplace in the world for a wide range o f m anufactured productsboth co nsu m e r and mdustrtal . Pilted agains t eac h other are the prod u cts o f many g ia n t J apanes e co m pan ies a s well as en tries from a ro u n d the world The com pe t it io n takes pl an :" a l ('\'('ry pomt o f compar is o n - prod uct Ieulures. p e rfo rmance. pr tce . upp eara nc e av a ilabi li ty. serv lce a n d d urabtln v The J a panes e b uye r want s the b est o f all o f th ese th ings (w ho docsnt " ) Bu t t h ut buyer can p ick a n d choos e Ir o rn "0 m any co rn pe tmjj produc ts I h at it 's ofte n n o t n ece s sary to co ru p ro rn is t' . In turn, Ih c cornpeti tors drive ea ch o11H'1 to n ew level s ofquali L,'- o r ou t 0 1 Ih t' marketplace ,

The management of YHI' b t'.l!,an In n on ee th e h eat a n d lla sh of t liose co m pe l , tuve ftres a lrn os t l Ovears auo ~ l lOr t ly

a ft e r the fir st otl rr isr s in 1 ~)7 : 1 s e- n t tuc! costs soa r in g .

' F irs t 01all ." recal b Krnzo (Kell l Sas a o k u, )111' s prr-s ident s mce [Y7-l . · \\T

fa ced a gt'llt' rallTisi s III' produ ct litH 'S had be-e11 chaJlg in l!, fasl a n d 1he re a ls o were d1alll!,I'S III our cusromers-c- new kinds of customers and c han~ l ll l.'; a t t i · tudes Wt ' found that we were no IOll,gel' douu; such a l!,(lOt! J0l) of sa t islYIll .gour customers 11 was t I me to make a major chan .~e III our way of do IIIe. business, '

"YHP can be looked on by the rest ofHP as a modelfor testing competitiveness in a world of increasing competition. tt

The 1'1 II' SOI H ( i on, ,\('('ordlllg to Ken . was 10 ma ke a brr-ak wu h u-, OWl! pa ~l

. T h e ;Ic h u-vvuunt 01"III "s 1i r o.; 1 ] 0 \('d rS \\as 10 tH lllg IUl!,t'l h t' r a rom b mu 1inn 0 1JapaTH' ~e an d HI' Illd ll a ge lllt' ll l stvles-to bl end t hr -m . Bill t hat s tv l« \\',I S e S S (' I11 Ia II\' on e 0 1 tollowuu; 1101 01

It'adilll!, To S ill ((T<!ln t l n-. market "'4'

h ad Lo b( 't'IHTH '1r'acltTs , Sl" r nu; o u r own W<I\ s and ,godb .

For o tH· l h ill l!, . Ylll ' had III find solu uon-, to a \\ h olv , I r ra~ of qualuv prohk-rns. Produc-r-, de\'('[opnlll\' 'I I lP.., own R&D t'I fo rt s \\Tf'(' xhowi u u a hIgh rat {' 01

c1rfl't'!s III the lu-ld. Product s shipped 10

Japan from ot her HI' c11\'lsinns turned up at customer Silt's \\ IIh hi ,gh [)OA Idefect iH' on a r r ival ) rates . The c a uses were vartous-c-sluppmu e r ro rs, produrt ion er rors . taulty parts and invoruple-t e c1t'sil!:Tls At bot tom was the probk-rn of falling profit margins. a problem compounded bv slO\\ .growth

In t977 'In' discovered the velucle for lurning these problems around in lIS own backvard-lOlal quatuy control (TQ(:) TIH'sPITII behind this approach wa s Dr W Edwards Deming , an Am(,T1can who had coac h ed many Japanese industries m t hr prtncrples of stausttcal qualltv cuntrol (SQC) _ln t urn. a numbe-r 01 .Japanese manu facl urcrs had exp.mded SQC 10 an even broader cnnve-pt of total qualt tv ( ' Oil Irol (s et' b ox on page 7 1. Their SlH'Ct'SS in applyinj; these m anagt'm{'nt tools was soon dra TIIal ic.rllv evrderu m world markets.

Le-d bv KI'Il Sas a oka lum se-lt twh o wa s to r-ar n the- lIt1e(Jf ~~1r Quality a t YlII'!. the company launched a ll ali -mil drive to adapt Iota] quail tv conI rol t o all areas 0 1 its operations Th is uu-ludcd not o n ly its own m unutuct urmu aud sa il's at 11\'1tH'S but also ILS n-l auonstups with munvot hr-r III' oru a rn za u on s .

:\ j'irst slt'p was (0 IJllpron' a hasll mallllra ctlJring process , IIll' sold e r ing of prtnu-d ('[rnlll boards The def ect rate . t huuuh fairly tvpual for tIlt' indus-

MEJ\SUH,£ 4

tr v, was a s o u rce 01m any problems. By a p plying TQC, that rat e was reduced m ore than one thousand limes. An d In

dotng that. the Ha chiojt factory g rea lly reduced direc t-labor h ours. lead li m e . Inv entories a n d floor s pace- the res ult of d Oing everyt h ing right the first tim e.

Simila r result s emerged in o ther area s. Field-failure rat es ofYHP-d evel· oped product s W<Te lowered by m ore than rive l imes by instilutingTQC programs that Included 111(' R&D . m anuIa cturtng and Iield sr- rv lre teams . Cos t rcducuons ofth ls kind h ave enabled YHI' 10 offer a number of s ucccssiu l pr opr iet a ry produ ct s (suc h as the HP 4274A) al n o price mcrcases eve n th ough c-onsumer prices have ri s en a n ave rage of 8 percen t per year in Ja pan d u r ing recent years.

The Wid esprea d inf luence orTQC can be rea d ilv seen at YHP's Sagarl1lhara se rvice a;l<1 distrtb u t ton c~ nte r. Up 10 th ree yea rs ago the ce ri ters tu n c ttons were pe rfo rmed in a standard way. handling U.S. imports . co n solida t in ~ s h ip m ents , tak in g rare o r cus tomer CO Ill

plain ts as best it co u ld an d Jixing things that n eeded to be tixed.

Today Sagam ih a ra is the center tor a co m pre h ens ive feedback sys te m . one that regularly reports on product qualit y to every product dlvistou . A fa ilure report. for exa mp le, may include details o f the tn vesugatton. analyst s ofpussi ble causes. ev idence in the forrn o f photo~raphs . des cription of ac t tons taken a n d a request for a r espons e regarding a pe rmanen t s olu t ion to the p roblem . Tsutornu Mochida . m ana ger at Sagam iha ra . sows there h as been a steady d ecli n e in product failure rat es s in ce the p rogram began . "We get lo ts 0 1post live feedback fro m d ivis ions ." h e adds .

Much (h e same ki nd of proces s is n OWa t work in the sa les organ iza tion . Ta tsuva Aor. Eastern Zone sales m anager. reports thai a nalys is 01 sales data h a s become m uch m ore .-igo rous Ihan before TQC. a ile s pec ial s tudy. for exa m ple . followed (h e ac t ivily 01':30 Iie ld enginee rs in grea t det ail a n d ('0l11 1XHed

it with the sa les thaI resul ted fro m thct r efforts . Says Tat suya : 'T he FEs were a ble to s ludx thi s dat u a nd se e Ior thems elves wbat 'actions to ta ke ."

HP Pr esident J ohn YOlll1g su rn rnnrIze rl results o fYl [["s IiV(:' wars o r em pha si s on rornl quality in a ta lk In-fore

March-April 19H4

WE ARE DRIVEN Some unIque influences help to fuel Japan's competitive drive. UnderlyIng all of them are the powerful influences of a largely feudal history. a population ofsome 120 million people fitted very t ightiy wi thin a chain of mountainous islands not quite the size of the state of Montana (which has a population of about BOO.DOD) and with limited natural resources. From this has emerged a nation whose culture teaches the value and strength of unified attitudes and actions. and whose economic and environmental well-being demands a high degree of efficiency in the use of space, materials and energy.

Modern history has played a role, too. Akio Morita. chairman of Sony Corp.. has described how lifetime employment and high in come taxes were imposed by the U.S. occupation forces after World War II . Issued b)' U.S . General Douglas Macarthur, the regulations were intended to discourage the reestablishment of the huge industrial empires that prevtously dominated Japan. On the contrary. says the Sony leader. these rules forced companies to become big and aggressive in order to assure employees of adequate benefits when they retire after up to 30 years ofservice.

The next time you vistt clapan.Jook at all the cars and trucks streaming along the streets and highways. All shiny and new looking. Not a junker in sigh1.You might assume that this is due to the strong Japanese sense of aesthetics-ofjoy and pride in things that function perfectly in perfect settings. On the other hand. regulat ions-particularly those dealing with pollution and safety-have a big impact on the cost of operating older vehicles. It makes sense to scrap them and buy new. This benefits the landscape. scrap dealers and aula firms.

In that case. it seems. a preferred practice is also a public policy. Public policies, in fact. are quite supportive ofJapanese industry. Low-cost loans are one such policy. It's one of the factors that enables a Japanese firm to make an investment in productive assets wt thou t feeling required to show a profit the first year. The view is longterm, and the net effect is to make it easier for a manufacturer to cons id er expansion or replacement of plant and equtpment-s-a definite stimulus to modernization.

EDGE

an American Eler-trouu-s Associaiioll seminar last year : "T h e produ ct Iatlunrate dcclrnr-d 60 pI:'ITt'IlI , H&[) 1')Tk

time improved 35 percent and manu fad uring costs wCIlI dOWIl .. L pcrven I In a dd it io n , profit improve-d by 177 percen t and produvuvttv was up ~1O perccn t The company receivrd t hr- Drrn in ,~ Prize for quali Iy, uwarde-d lor 1he Ilr st time 10 a jotnt-vem ure vornpa nv III

this industrv' In spite of that SlIlT('ss-or perhup-.

because Orit -thl' 1'HP team sees a new, bigger and more exert in ,~ role for i Isdr in its Illirel dec-ade- of business , Part nf that IS at tr tbutnble to th« lact that HI' raised its ownership in 1'1-11' from .. ~)

percent to 75 percent last year opcniut; the door for a closer and st rornn-r rela tionship, But most 01 it boils dOWIl [()

basics : people and opporu.mu u-s Ken Sasaoka puts I hese 111 pl'rSptT

live : "Fo r many YI'ars YHI' was 1101 \t'n succcssiul in rccruilin,!! top slllc!t'nts Irom Ill(' various top lIni\'nsi I iI'S Wl' were nol known , Thl:' c;llIdidales would go to till:' wdl -kllOwn ('ompan ies , BUI last y",ar aner [he Demil1g I'rizt' " f( '

cruiting-agency survey 1.1.;1' e 1I~ a \'ITY high rating-numhn :10<lmorH.! all I he big Japanesl:' firms , Now we ("<Ill ('om pele wilh Clil ofthenl , We call demollstrate not only lhe [)e[])ill.!~ Pri,>:l' a(' complishmenr bul also an ('xcdlenl growth ff.'('ord . international work ofJ' portunilies for our pl:'opk and a \ Illlqw'

TQC: A WINNING STRATEGY When you hear t he urlc total quality control" for the fir st urnc. it can s ou nd a bi [ int imidat ing and ch illing-as if some Big System was set to take over individual respoustbtlities and initiative Whatever happened 10 "management by objective"?

As HP people at mallY local ions are discovering, TQC is, in Iact. a reinforcement of the tradi! ional HI' way ofdoing things, In esse-nce. it is a tool or process for ,ga th e r in g and analyzingdala and t heri translating the conclusions into act ion, II takes

work stvk- alld plulosophy . Om- t h illL! "1'111' call pn1lllhl' --a rhal

len!.(C' " N ow IS a I un« oj \1'1',\ hI!': nppor (1II1i[il'''' lor Il1l'dl'l'IrOllll'" IIldllSlrY-,1 r('\'0111[IOII 1111)w torru 01111l' urtorm.r t ion so('w[\, nt 'n ...a\s We'll'ri!,:lJllll

the middle lh», mv.m-, lllal our cumpanv will havr- C'PJlOI 11111111( S lor I hI

n 'sl ot t lu-rr-ut u ry [{III 10 ..."1/.(' 1111'111

1j I' 11111S I dt,\,I'l" P I H'W COlli JlI' till \T ad ,

\'<111\;11':I'S, hIT'IlI ...!' Oll r l ompct n orx -> l'spl'llall\ ,JapalH'S('('Ollll'dllll' ...- h oll l '

adv.uu -cd n-rn.irk.ihl, 1111111-1111\, produvuvuv and HTIIIlOlo~\' "rl('!' (OIIlIH'

t n ron lu-r ri-, IOll~h .uul t lu: 1m al lall~lla~I' IS a n uuor 11IIrdk l nr

HI' prorlut Is ' l k « IIl" I' OI .rll t lu-, Y!H', .111 til'

looke-d Oil In I lu - re·...1 01 I t1'.IS .1 modvl Inr 1t'Sllll~ (Oll1IWIIII\ 'C 'IW"'S 11I.t \\ orld ot inlITaSln~(Cllllpl'lIIIOI1 li,e!ollu ... WI' 11l'1'e! a hll ... ill/'ss straIn!,\' Ihal 1,I\llI'" sl roOI.,: Itll alll',lckrslllp {II.1t (dll!ll' IIC':\I '

1>11' III e!t'allo~ \\ 111l1o(,II ( 01 Hh 11"IIS

l.on~ (l'flll \\T IlI'C'e! [0 cll1I'ha"'I/I' Il'ad

l'fship III IITIIIlOI0l!..\'-Lo ;1"'''IIlT ollr sd\'l's 01 all al>"o!1I11' ;l(1\ .1l1laL(I'IIlIIH '

\\'orld mark!'t YI!l' is inn'stlll!.t d !.tn',1l "l11oUlIt ull'!

101'1[0 hl'lpdl"\dop 11lo... t'll '.ldn ... llIp

ro1l's Oll('n:alllplt· I" its ' ('hampl"l)

l'rOl.,:ralll IlIal IJllls "l'ltTH'e! 1'111'1'111.,:1

llt'lTS tlJ work.lI \,al'lous Ill ' H<,,>:[) lail ... ill

I Ill' U S \\'Ill'fl ' I Ill'\' ;Il 'qlll rc Ill'\\ h.ll h L(rollllds III laflOllS H'( hIlOllll!.il'''' :\11

ollwr J':, thl' I':'-qwrl l'rol,:r;l1l1' I hal

the- form of projects-usually within a department-i-t hat employ Oil!' or

more methods of statist ical anulvs is 10 ach teve insights that lead 10 measurable irnprovernerus

'(HI' has for malized its approach to TQC ill several important ways. One is represented b)' a customer assurance organ tzat ion that handtes customer complaints at the Takaido sale-s headquarters and product ill spectton at the- Sagarnihara ce-nt er Another IS a quality corn rol "facrlita t ion" or~anization that operate-s in both the Iactorv and fidel In addilion, TQC has been a major part of \1-11'-5 training programs since' 197H

brill ~'" h('.\" l'Il~lnt'lTs Irom ot lu-r H} ' lalls [0 .Jap.ui . In ... 0 III I' ('asps Ihell' job L" III lu-Ip lJnnl?, YHI' projt'l'lS or people lip to spl'l'd Oil certain [('('llllolnl.,:it>s III O! lu-r l 'o\Sl'S I hr- vtsu or-, are I lure 10

Il'o\rll L.l~l Ort oln-r for example 17 in st r unu-ut d iv i--Ion H&D lll~1I1,l~ersheacJl'd 1>y ~rollp t'Jll,:i 1ll'~TIIl l?, manaacr :\llla~II'\- S p t ' Jl! sl'\'l'ral \H'ek" cxplurIll!..!. JolpalH'St' Il'l hn()I(I~1

See in!..!. is bl'lie\ 11ll,::Till' IUS;D l11;llla~ns \\'l'TT p[(Tt'dl'd a flow we-ek ...('arlicr Il~'

the f II' board 01 difl'( 'IOrS wl u: also ,l,:o l a

tir-a hanct \ 11 '\\ of YIH' and i hc Japuncse markctpl .u c Wlr.u IIllP! I'SSl'd I IWill

\\'~I'" 1lit, 1',Il!,tT (II-I ('1'111111;1I ion of YHI' pl '(lph- to bl' IIJ(' lla~ Ill'an'r" lor" IH'\\' kind III orl.,:<l11I/.atlon TII ,l! or~alli/.a

IIOll ,I'" Kr-u Sa~auk<1 and oi lu-r-, i-nvi ~lrll) II \\'01 lId Ill' JI10re \\ 'orJd -('ollsl'ilills ,

mo[(' I ('Illll f( 'SOl1H' , 11)(1 less 1>u fl'" il

l r ,1l1l IIl;lnlw!IllI' It would w(lrk c lose 'h' \\"1111 otlJ('r IIlllb oflh(' OI"l.!.,1111I.alloll yl'{ Ilan' , I ...lroll~ sellSl' ollis (11\"11 11l1S"1C1I1

[t would ah\a~s Pro il'( 1 .1 OlH'-colllpany Im;l!..!.l' And abm"!' aliI I WOllld I('ad I Il roll l,:h ljllol!ll\-lll ('\"( '1"\ lllill~

SOU lids ollol likl' T~( ' M

6

POWER STRUGGLE Although customer s a tis fac tion was the drrviru; force behind "rlP's 1981 deerston t o sepa ra te the sale s force into Easter n a n d Western zones . a curious piece o f technological history had a hand in determining where the dividing lin e would be drawn.

According to Toshio Muraoka . execu live vice president and head ofYHP sales. th e Fuji River J)ow ing near Mt Fuji was selec ted as the bo undary because it se pa ra tes two different e lec tr ical power systems . Thos e syste ms arts e trorn events th a t s ta rt ed s eve ra l hundred years ago when powerful sh og uns-m ilita ry ruI crs -i-Irom each a rea began figh ting over Imp eri al power. In time (h e Brittshbacked eastern a re a in st a lled a 50 l lz/ 100 vall system wh ile th e wes t we nt for 60 H7) I00 valls. An d n eve- r the twa in s hall meet

Tats uva AOI . who was a It'ading rughy player inthe urnverst ty league a n d is now a pan-tunc TV s por ts commen tator. heads E<lst ern Zone s ales -s-nlne offices . some 650 people a nd sales or abou t 8200 milli on in 1983 . Last yea r in the in teres t of assess ing levels 01(~ustom er sat isfaction . Ta tsuva visit ed m or t> than 100 customers "We are now in th e process or adapting TQC fro m the Deming exe rc is e to a pract leal, long-term s tyle." 11(' s ays

In the Osaka Western Zone office. Ken!chi Akas aka heads an organization or some 290 people in five offices with sales of a pproxim a tely S 100 mtllion la st year "Last vear was tough. " he says. "es pecial ly in th e co m p u te r field . Hut we have a you ng salt's force th al will co ncen tra te on a dd ing to our coverage of la rget ar coun ts .' Such accou n ts include ihe co rpora te headquarters for the Ma tsushita co m panies. bet ter known in the U.S , as the Panasonic gro u p.

WAY TO THE TOP ForYHP President Ken Sasaoka, getting away from it all means ris· ing above it all -preferably from 10.000 to 15.000 feet up a mountain . Here Ken (right) shares a moment of rest and triumph on top ofMt. Fuji with Cliff Edgington. former HP employee who spent several years at YHP. Ken has cl1mbed most ofJapan's higher peaks (three times up 12 .388-foot Mt. Fuji), and hiked. camped and s k ied extensively in the U.S .. generally as a side trip to business visits. He Is especially attracted to the U.S. national parks whose rUMedness and spaciousness offer "a very enjoyable experience. ~ Ken's d ream now is to scale California's Mt. Whitney (14.494 I'Ll as part ofa plan to take on at least one major mountain each year.

March-April 19S4

EDGE

SPRING FEVER Ea ch year about this time. a dozen people representing all YHP employees meet with a steering commit tee of top company managers for a "Shuntoh"-the "sprtng struggle. " They will talk about salary curves. benefits and working conditions. It ts time for labor negotiations, Japanese style.

That style-actually required by law-calls for unions formed along enterprise lines rather than by crafts. One company. one union . In turn , each union Is a member of one of the larger all-Japan unions that are based on certain types of industry. The national organizations provide the locals with salary and other competitive data as the basis for their negotiations.

This year the YHP union team is headed by Kasutoshi Fujita. former district sales manager for govern

ment sales In I he Shlnjuku office. While regular monthly meetings are scheduled between the union and management comrmuees. it is the March-April Shuntoh that establishes the salary and bonus terms for the following year. Kasutoshi descrtbed the YHPunion-management style of negotiations as ftrm but fair,

Among the items negotiated are home loans-the amount and terms of mortgage money made avatlable by the company for home purchases by employees. Currently. the maximum Is 10 million yen (about US 843.0001 for a 25-year mortgage on a 30-mlUton yen house-the going price for an average Single-family dwelling in Japan .

YHP IN BRIEF • FOlJJl(k <1 I ' ll ; ;) , l S IOl llt vc n ru rv 0 1111'

f -l ~IU" I .i nd Yokouuwu E~I l'\ l rl l' Works I.td I;) I '\.1. l ! l H ;:Ll~I I ' t 'IlH ' rH r u is vd Hl' shan'l o {;') o"

• ~ :20U \ ' lIlplnn Ts I I . : ~uo 111 saks. H{)() m m.m ut .u t urinu, 100 t'orpora1t' I

• S .III '~ 111 FYK :~ S :I<JO m ill iou

• U r~ .IIlI/. .1I][JI1 · A co u m rv o rua ruza t lOll (hal t> rl1b rd t"'s li ot h sa1<' s 'SlT\' I('( ' ~ lIl d m.mutiu-tu rtnu 0Pt'rd l tons . [<eP0rls as a rt '~l on tl1n l\lgh Iru e rco u u 111 '111 ,11 T he la ( [o r" o rua ruza t 1011 111

l lu rl cs a n In sl r uuu-n ts d i vi s i nn IY [ () I a n d a \ omp u rvr d tvixm n en ' D ] tha t sh.r rT;I t o rnmou m an u t,« ruruu; oprr d (Ion

• C t r.u r m a n : SllO/.O Y(,lo.o !!.<lwa Ipres i d e ll t o J YEW n u d IIJl IlI< I IIl!! pr'Co.; lr!elll II I Ylll' l

• I'rt'~ ld t'lll : I~ ell l.o Sa~.roka h ll HT I ~ 1 7~ I : t .um- 10 YlII ' ;ls r~& [) III <I II <I!!,\T

111 1' 17 :2 11'011I YEW

• \I alllll , ll ( L11111 !!,: Pn 'p rW ldl"_\- Y1-I1' produ. t ... ~ .... rn uc n t id uvt or I l 'sl , Jrllfwd ('[ H I ' ,1Il l! U ' [< m s n umt-ru s },

\ .I rr o u -, [ r.r n-, ItTITd Ill ~ l rurn cnt ... a nd l o m put er produ rt s ..\III ;l l'll1 011

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1'r1 /( ' l llrql1,l1ll\ 111 :\i1I( 'I1lI WI 1 ~IH2

~t EAS U]{E

March-Apr!"I 19H4

Steve steps, R&Dproject manager at HP's Da1a Systems Division, shows interested customers the A900 printed circuli boards In the wndor area at a recent conference lor HP 1000 users.

It s hard to Il11a~lIll" (hat III ' has SOIlU' ·

thin~ III ( 'OI11Il1IlIl \~ Ilhlfll'!lt'alh's , Frank Sinatra . rh« D;tlbs Cowhov (Ilot,

ball team .m d tt n- \Iockl T Forcl , I;Ul It dOt's: AU han' t l u-rr OWlI <1\ HI '"gfOUpW-'

ami ' fa ll dubs ' In Hl"s ('asc' [ d ... \\ '('11 a ... ne.rrtv all ot hr-r

('ompUI(TI 'OIllP;llIll'S) t lu - l.m ('hlbs an' cal!c'tI user» ~r()llpS-<I 1'.11 fin bland tr-r m wh I( II pn'('Jsdy tit'! lilt'" wh.u lht,~,

are: !!;roups 01 c IISICll)\(TS who l(('1 to

,l!;c t!te r (0 pr.use-. compl.un dJH] shan' inloflll<Jtion .thout t lu: par II( u la r r ClIlI ·

PU t e r modrl 111('\'own Until fe(t'nll~,1t,\\ lJeopk.!llll't·\'c'll

k new olt he ('Xl"lt'IU'C'ollll's 1,1Il dubs BUI ('Oll\pulc'[(;roup... malla~l'rs h.ivrlatclv b('('on\(' ill<'rt'a"illgl.l' awurr - ol Iht importanc-e oj 11\(,s(' inrlep"IHlc'nl groll ps 10 (Ill' SUI CC'", ... Cll II\(' ('ol11pa nv

" O U f 11101 i\ (' I'" largt'l\' sc·lf·...vrvuui. "

sa~'s Marc I{orr. worldw idc' iu-ld opera-t ioris manager ;1I Cnmpu u-r Support Di\ ixion, - \\'(' Iwc,d rlu- kind oj (('('db.!( K t hat mtt-rr-st ed IIS(TSC<l1l gl\t'U'" It ·~a ... simpk-as Ihal

luu-rr-su-d use!'s i ndr-e-d (I happen ... that must users group nu-rnlx-rs really love HI' -\~'al'ts <lilt! all Sa\ ~ Slt'n' Gauss , ast ronnmer OIl tilt' [j S ,\: ,\ \''11

Observaiorv III \\'a~hlllQtoll. () ,C . and a nu-mbe-r III t lu- lutr-rruu iorial U~tTS

Group IIUj ) hoard ordirectors for more than twu ve.rrs. ' [ II man;. UISt ':" HP has Sl'Ilt us updates i h,« don I work , so impl('llH'1l1allllll \~a ... Impossible Wl'\'e brouglJt Ihis lip seve-ral vcars In a row ,mel wl nlr I II' has mack all eflor t to

sollT 1h« problem. it 's sui] not lixed "Hut wr n- ;H 'II\"("' JI1 tilt, lUG because

\~T I.ke HI' and want I he-m to hear OUf

( 'OIll'tTllS

StC\T and peoplc lik« him uct a ('h,IIHT to vrnt lhl'ifcollccrns and IWI'cls at the COnft'fl'IH't's he-ld IOf users (J[ hot h t lu- HI' 1000 a nd III' :l000 At OIH' such confl"n'11Cl' last tall ill For t Wort l}. Texas , a small knot oj I II' mark('lin~ dml clll!.imTrlnl!; peoph- lr om '-,n r-rul «nmpu n-r dtvistons ,ga l hr-rr-d ill a hutvl room III read quesuons t urned m bvt hc Hl ' IOOOusersal t he ( OnltT('nl'('

SOrlie «UC ...nons art' pun I let! : '( )cws I II' hav« .11)\' plan-, t o muke new-produc t avarlatnluv dates more feaIISU(" ,J"

'1'111'" ('\ ok es a ('011 ect ive slQh of res igllaIHJIl lrorn all the managefs there . "Who wants to a nswer t hut one')" asks Pete-r I<o~('nblarlt. I(&() lab manauer at Data S~ ~tl'l11s DI\'iSIOIl InSf) I lncvitablv

MEASURE 10

someone volunteers to accept the responsibility.

The next day. al a management round table that is part of every users ~roup conference. there is a comfortable feeling of give -and-take Marc Hoi f describes a new phone-ill consulung service called PICS that should help users get their questions answered qu ickly. The audience nods approval. A few minutes later. a user asks why a "don't clone" option isn't available on the new Real Time Execuuve subsystem . John Johnson. one of the DSD engineers who worked on the product. gets a lot of laughs when he admits. " I just forgot to put it in ,"

.. Users group conferences a re probably one of the best services we provide our members." explains Bill Crow. executive director of the lUG association. Its headquarters is in a htgh-rtse offtce building in Mountain View. California. two miles east of HP's corporate offices.

Bill is in a f.(oodposition 10 kn ow what users want , He was one. Six years ago he set up a data-process! ng operation for a large New Jersey corporation. After a lot of study. Ihe firm ch ose an HP 3000 computer. Recalls Bill. "It was a massive job trying to learn everythmg there is to know about a computer system. Fortunately I found a group of HP 3000 users in the area and started at tending thelr meetings."

Later that vear. Bill went to a users conference i; Denver. " I learned mort' in one week than I had in the n in e months I had the system. I finally understood what was going on 'u nd er the skin.' ..

Such an experience is not unusual. At every users conference the buzz is highest when people wrth like needs and programs find one another.

But there 's far more to the users group than confe rences. The lUG opened its California office in 198 I with a three-person staff. and Bill joined them in m id·1982 after serving on its volunteer board of directors .

Today 40 people provide a wide range

THE USERS' ALLIES As HP's computer products spawned more and biMer users groups. it was only natural that the company sat up and took notice.

"We've offictally BU pported the users groups since 1972." says Jan Stambaugh. who served as HP's liaison to the International Users Group (lUG) for about 18 months. Now training manager at the Personal Software DiVision. Jan is singled out by lUG Director Bill Crow as "a, real friend of the users gmup. First Jan built up the users group and s erved as chairman of the lUG execulive board when she was with an educational organization. Then shejoined HP and built it up on that side."

"Building it up" meant making more HP people aware ofwhat a users group is.

Today there are three HP people with lUG liaison responstbiltttes: manager Jo Anne Cohn. conference liaison Pam Tower and Dena Stein. who handles promoUon and support activities . All three are part of the Business Development Group's Systems Marketing Center in Cupertino. California.

Their efforts are concentrated in five major areas:

• An annual survey of lUG members is undertaken jointly between HP and the lUG office. It provides feedback on how members like HP's hardware and software products. In the 1983 survey. for instance. 94 percent of the people who responded say they're satisfied with their HP 3000 computer and 89 percent would choose HP if they had a chance 10 do it again.

• Co nferences. It's up to Pam Lo line up HP speakers. exhtbtts, equtpment and managers for each gathering. For the just-completed HP 3000 lUG conference. Pam recruited

ThegrOtlpthatserves as liaisonbetween Itte InternationalUsers Group and HP's com puter divisions Includes manager Jo Anne Cohn (foreground), Dena stein (left) and Pam Tower,

about 70 HP people to provide information and equipment for the conference. More than $3 million worth of HP equipment was on display for the nearly 2.000 conference-goers. "It was a terrific example of interdiVisional coordination." Pam says.

• A newsletter called User News hasJust been published for HP's marketing and product people to tell them more about lUG activities. HP ships packets of information on how to join users groups with its computer products.

• Articles for lUG publications are solicited from HP managers.

• Tours of HP facilities are ~iven

to lUG members when they visit. The most important aspect of the

ltatsons'job is keeping in close contact with the lUG headquarters so HP and lUG can continue to maintain a special-and mutually beneficial-relationship.

March-April 1984 II

A group of HP marketing specialists anc:l engl~ discuss possible an5\l¥'lH$ to questions that will come up at the next day's "management roundtable" at an lUG conlfHence.

of serv lces 10 members : two glo ssy pubh cauons a imed at HP 1000 and HI' 3 0 0 0 u s ers: a hbrarv of u ser-cont rtbu ted softwa re (incltiding a Iamllv of programs with fascinating nam es like Overlord. S on of Overlord. Bast ard SOil of Overlord . Grandson of Overlord and Mistress o f Over lo rd I: staff help ! O s t a r t local chapters : and a coo p- ra t 1\'(' HI'· lUG s u rvey o f Ill-' computer u sers

It' s a p par en t that users like what the lUG staff provides becaus e members h ip is booming. There a re al mos t 7.0 00 members today, three-fou rths ill the HP 3000 g roup. T hou gh 73 pe rven t of lUG members a re in the Unit ed Stat es. 14 percent are Eu ropean . 7 per cen t a re Ca nad ia n and the remaining b percent a rc sc attered th roughout the rest of th e world.

A big thrust thrs year is to establish a n int ernational u sers group for prr·

sonul compuu-rs with souu- lrx -al chapters ASt'ries IOOcontnlJl1lecl library is in the works and the lUG st al! will be preparing articles for an upcomuu; magaZine about Hlpersonal computers :

Bill feels the lUG and f II' have a coopera t ivt- rclat ionsh i P -SOlllt't h i ll~ not all users ~roups have with tt n-tr rompuu-r co m pa n ies , "O u r rclat ionsl up IS buill on t r ust ." he sa\ s ' We reallv hoi 11 wa nt the same t hma: We wun r rve-rvnnr 10

own HI' proctur Is HP's Carol Scheifele. the first HP ern

ptoyee 10 spend full lime as the campa nv's liaison 10 the ILG . thinks HP has not yet recogntzcd the true value of users " Fro m a marketing standporn t it 's well worth our while to support users ~roups'" she says , :'\ow gr<lpll irs and sales literature manager in the Business Drvclopme nt Group . Carol feels field sales people should "wake up

Bill Crow leads a 4O-person staff at the Internaffonal Usen Group heQdquarters.

10 the fac t that local u sers groups h ave a ripe se lllll ,g potent ial ."

W lt h a n HI' internal newsletter a bou t the u sersaroup in tilt' works, J ohn Younu's keyn ot e ad dress at las t month 's lUG co n fer en ce a n d growi ng IlU mbers of local lUG chap te rs, 19 84 jus t m ight be the yea r t hat HI' s corn purer u s ers come into th ei r own .

A ve-rv u se ful idea , some mi ght say_ M

As lIUs issue 01 Mea s u re Iren c10 p ress , tIl(' I rl/ e rrl Clll 011 a I t .sers Group boa rd qf d irectors . mcel!ng in Anallell1l, Ca /!{orrlia . ('ored roc/wnge th e oroup« rW n1e w].\'TEHEX , rile l ,t/ (' r l\ nr io [Ja / t\SSOCiCllioll oiHcu-teuPacka rd Co mputer L'se rs. ];\"TEREX is 110r all (H wllym. accorclir l9 10 Bill Cro ll' association l'x('ctlli ['(' di rec/O r, -hill if IS (l n a m nlf)(Wl 0/ in Cl'rIlCll[O llal a nd 'l!xcl1allge. · ~

MEAS URE 12

--- T-,I

I

- - ---.:_- - - - - 2

here yo u Irave it : Open co nu uu u k-alion Fa i r t re at m en: or peopl e 'I r-a rn w or k in pla ce 0 1r-onfll ct Objecr tves ! (No t a bad star t 0 11 I h e III'WLlY· )

Ye t. bark in Cam elo t. Ar th u r 's dreams were thwa rted by Ille inabilit v of hi s organi zat ion to IIc~ll w ith chan ,I.!{'- to m akr- t he ch m Iges [H' ITS

s a rv for the s u rv iva l of hi s n ew soci e-t v On lv the m emorv-i- or rnvt h -c-livrd (Hi.

Let 's face i I: S eJll1e people a s k whe th er the HP way - our cu lt u r e . as it Is somet irncs calkcl- c,1I1 s lan d ILp to al l the pressures of growL h a n d d lclngc bei ll,l.! a pp lied a n d (pit Iml ay,

Hewle tt -Parka rtl has often been drscr ib ed as a ,e:n ' il l pl a ce to wo rk With ou t d enying th at let s sel the r e-c-o rd s t raigh t : II is n ot a Camelot oranv o th er mys tical place guverllt' d by ruvs t tca l beliefs . HP's man ag«men t stylethe HI' wa y, as it h a s C0111e 10 b e k nown-is based o n some h igh ly pra t'HCLII beli e fs a bou t h ow to run a s u('( '('SSIul busines s.

So what are thes e bcln- Is? Where did thev c-ome fro III '? Let 's look a t w ha t l ilt'

fou n de rs h ave satd: R(" calling the r-arl v d av s, Da ve P,u k

ard sa id t hut "Whill: (hi~lkin g a b o ut how w e s h o u ld m a nage the company, I kept get I in g back 10 on e em u'cp t: II we co u ld s trn p ly ge t evr-ryoue to agrt'e on wh at ou r object ives were a n d to unders ta n d what we we re try ing to d o. th l'n s ta r t tng w t th peopl e who want 10 work , a nd providing (h em wi t h the rt ,~hl con diti on s an d res ources to do i I-we cou ld tu rn them ull loos e an d thcv wo u ld m ove a lo ria in a co m mon ' di re ction .:

In the Sa me ve tn . Btll Hcwlrt t gave h is def n il io n o r the HP way : " I feel (h a l in gClwral tt' r ms i t I S the p olic tes a n d aclions thai Ilow froIll the bclirft ha l lllen a n cl women wa n l to d o a good job . a e n ', at ive job, a n d that il"they art' prOVi ded th t' p roper env iron m en t Ih ey will do so. Bu t that's o n ly p .1rt of i t. C l~ s ely co u · p led with lhis is the HP lradition 01 treat ll1g each individu al w lIh co ns idl'1" a lio n a n d rt 'spect. a nd IT l 'o gn iz i ng person a l a e hievt' IlH' n ls ..

Und trlying thl'sf" belieh and p olicies is the con cepl or sharing- sharing 11)('

responsi b ilities lor dd in in g and 1111'('1 ·

ing goa ls . !-.ha1'1n g ow ru-rx hip ill the co mpany through st ovk -purr -ha-«plans , s ha r ing p rol i ls , s ha r ing op port u n i Iil's lor personal a nd profe s si onal g row lh . s h a r ing rn torrn uuon nbnu t t h c co m pany's pcrto rrnuncc. .m d eve-n s ha n n~ t lu: ln rrrlr-ns whe-n hustne-s s tu rns downward .

To b e etfe ct lv e . s ha r in g IH'l'elS a n ul m osphct e or trust a n d rr-spec-t for Ih e individual The co mpa ny se-e-ks to ('ITate- such an a tmos plle lT 'by m a intaining a record o Js teady gl'Owt11 a n d ,~o ()( 1

pertormance . one th ut ass u r t"s both em ploynu -n t sc('u r i rv a nd job 0p pOI't u n it ics tor HI' peo ple. To en l r.u u « th ut a tmos p h e re. th e b asil' lru xi I It' S S

units- I' <! 1I1'd prod uc t di visi ons - are kept relati vely s rn a tl i n stzc and ,g ive n co ns tderub le a ut liur ttv to ma ke dcr-t sl ons a nd p u t IlIc lI1 n u o ac tion , T her e's LIn cmph as ts un teamwo rk a n d r-ooprrat ion both w ith in a nd hetwi -r-n d tvts rons.

ln tu r n. the compa ny ex pec ts th ut ils pol ici es a nd p rac t ices w ill lead 10 SlI P ('

ri or perfor mance on th e job , an d tha t 1' \,( TYOJ1(' w ill g ive thc t I' b e-st eIfo rt s 10'

ward rh a t uoal . Employees h ave rights a n d respons ib iliti es und er Ilu - HI' wa y, hut all ol them a re ba s el! on s us !'I i Ilec) job perfor man ce . 1\s 111(' s ix I It ('orpora te ob jccuvc says : "Employee s must lake s u l t tc tc u t illlt'IT SI iu Ih ei r work to want 10 plan it. to propos e IJ('W so lu t io ns 10

old problems. to s Iirk their necks Oll I when the}' h,IV(' SO Il1 C ! IJ i Il ,l.( to co n t r ibu te.'

Indeed . lor n il 01 t hi-s e III' wav co n ce p ts to work as th ey s hou ld r e~luir e s a s et otag rcr-rne n ts bel ween mdtvuluals a n d til e 0 l'J~an i za t ion , T'h a t bas ic agreeme n t is spe lled out III t ilt" Hewlet t-Packard S late\lfe n! ol Corporate Objectives. II provides the lrumew o rk for es tab lis h in g goals for every indiv idual a n d level 0 1 li lt' o r ,14,1l1izal ion. T l r!s p roces s is known as" m ana ge ll1 (,(II b.vol ~j ("l't ive, .. or MBO

CORPORATE OBJECTIVES A set ofcorporate objectives based on the HP founders ' concepts of management was first published in 1957. While those objectives have been revised from time to time 10 reflect changes In the nature ofour business and social environment, over the years they have retained their basic substance. 1. Profit To achieve sufficien t profit to finance our company growth and to provide the resources we need to achieve our other corporate objectives. 2. Customers To provide products and services of the highest quality and the greatest possible value to our customers. thereby gainin~

and holding their respect and loyalty. 3. Fields ofinterest To build on our strengths in the company's traditional fields of interest. and to enter new fields only when it is consistent with the basic purpose of our business and when we can assure ourselves of making a needed and profitable contribution to the field . 4. Growth To let our growth be limited only by our profits and our ability to develop and produce innovative products that satisfy real customer needs. 5. Ourpeople To help HP people share in the company's success which they make possible: to provide job security based on their performance; to insure a safe and pleasant work environment: to recognize their individual achievements: and to help them gain a sense of satisfaction and accomplishment from their work. 6. Management To foster initiative and creativity by allowing the individual great freedom of actton in attaining well-defined objectives. 7. Citizenship To honor our obligations to society by being an economic. intellectual and social asset to each nation and each community in which we operate,

11 Kin~ Art h u r s v t s ton , a ll i he kllll.!:tll s would sit ut a lar l!:e round Ia b le III 1h tcas t le-a t Cu m e- lo r, rher« to dis c ll S S

things , p a s s laws a nd p la n improvement!'>, Ttrcn slu-y would r idr- a ll over the- world doinll; good deeds ,

At HP we would call those kinds OLIC' ttvi ti es MBO and MBWA-mallagell1 l'll t by objec t tve a n d manaaemeru bv wan d ering around .

S tr ip ped t o Its Iundarneutal s . MBO says employees, g iven proper s u p por t a n d gu idance . a r e probably bette r a b le to make d ecisions a b ou t Ihe p roblem s they a re d ire ctly co ncer n ed w ith i h .m some execuuve .

'" d on't ca re how s mart a m anager

IS, ' s d)' s B lll l ln \ll' lt Ik cl1l 'l k now

1'\'l'r.\thill~ t h.u I.., gOIII~ oll T hl'(!t-gn '(' to \I b ich \011 ('; 111 dlsblJl s(' Ih lS del'l sloll -m akil1g rt' spollslbil1l\ rhrouuhou: the orgallll.'lt1CLnls d mvax u r« ot t hrquul i t , 01 dl'( ISIOlhYOll will gel

"Manaacnu-nt by wanch-ruu; .rrounrt is how vou filld tltli wl ni hr-rvour« on track and hl'adlilg atllu' nght sp<'l'd III the ri,ght rh r crt mn , 'says .Jo h n [)o~ '1l'

\'ice presrdeut ofrvsearth and develop mem ..lfvuu don t l 'onsl d III I\' momt or how people arc ope-rat i rl~ not onlv will th('\ (elld to wander olt tr :« k bUI .ilso I lwy " ill begi Il 10 1Jl'l1{,\,(, \ Oll we rcn I 'iC

rtous about t hr- plan III the lirst pl.irr, l3y wunck-r nu; around l hu-rullv

mean rnovuu; .irou nd and 1.rl k tru; to people on an inlormal and s p o n taIWOUS baSIS , but it S imporr a nt m the cou rse of t i [1\(' 10 cuver t IH ' u-rrt tory

" You sta rt III II In b t'i ll ~ ,HTes s ib ll' .u u l appru :« li able . bUI t he [1\ ,1 ill Ihln g ..... [ 0 n 'al ll.c t h at voure rlu-re to hstcn . T l u- s ('c OIu l ls th a t It I S ~ u a i io kee p peo ple i nt nrtned a bou t wh a t s !.!,oing O il i ll

t lu- t o m puny. espcnal h- t h n-a - Ihll1.!!.s thai ,I r e important to them . The i h tr d r ea son for d rlln~ 1his is btT aust' I t IS .iI IS I pla in fUIl '- ' su vs J ol m ,

BOlll ~1BO and l\1B\VA rely 0 11 0PCll and hOllCSI co rn m u ruc.u ron . In Ia ct , most 01 t he illl.(rf'<!iellts that m ak e lip I b l' HI' \~ a v huve co m rn nruca li on a t I hl'l r root s .

E \ ('I' S 1t1CC xorn eone m vcrucd I hrphrase '-t ht- HI' wa y, 'a number of a ttempts h an ' b rx-n made to d es cribe a n d def ine all I 11(' varrous asp{'c ts 0 1 th e compa ny 's culrurc

~,\ Open-office plans In HP1acllmes promote Informal communication with co-woricersand managers.

I O ne ofChe most~ dtdinWons ofCheHP Ulay UHIS'deueloped seuera1 years

ago by Dick Backborn andDon Harris. thangSlU!ral manag8l" andJH!rso~el. ffUlnage:TJorthe Dfsf:"emoryDWisiDn in Boise, Idaho. It eqlo1"u CluftcitmensiOnS

of'hei....";my'fb business.-Pi...............l'~"!~JJ"lctiUS '- ~ __~ _.

BUSINESS PRACTICES Pay as we go. 0 long-term borrowing. • Helps us maintain a stable finan cial environment during depressed business periods. • Serves as an excellent self-regulating mechanism for HP managers.

Market expansion and leadership based on new-product contributions. • Engineertng excellence determines market recognition of our new products. • Novel new-product ideas and implementations serve as the basis for expansion of existing markets or diversification into new markets.

Customer satisfaction second to none. • Wes ell only what has been thoroughly designed. tested and specified. • Our products have lasting valuethey are highly reliable (quality) and our customers discover additional benefits while usin~ them . • Offer best after-sales service and support in the industry.

Honesty and integrity in all matters. • Dishonest dealings with vendors or customers (such as bribes and kickbacks) are not tolerated. • Open and honest communication with employees and stockholders alike. Conservative financial reporting.

PEOPLE PRACTICES Belief in ourpeople. • Confidence in. and respect for. HP people as opposed to dependence on extensive rules. procedures. etc . • Trust people to do theirJobs right (individual freedom) without constant directives. • Opportunity for meaningful participation (job dignity) . • Emphasis on working together and sharing rewards (teamwork and partnership). • Share res pon s ib ili ti es : help each other; learn from each other; learn from mistakes. • Recognition based on contribution to results-sense of achievement and self-esteem. • Profit sharing, stock purchase plan. retirement program. etc . aimed at employees and company sharing In each other's success. • Company financial management emphasis on protecting employment security.

A superior working environment. • Informality. Open and honest communications. no artificial distinctions between employees (first-name basis). management by wandering around and open-door communication policy. • Develop and promote from Within. LIfetime tra in ing . education and career counseling give employees maximum opportunities to grow and develop within the company. • Decentralization. Emphasis on keeping work groups as small as possible for maximum employee identification with our business and customers. • Management by objective (MBO). Provides a sound basis for measuring performance of employees as well as managers; is objective. not political.

MANAGEMENT PRACTICES Afundamental strength of the company has been the effectiveness of communication upward and downward. 1\\'0 key ingredients for making this happen are :

Management by wandering around. • To have a well-managed operation. managers and supervisors must be aware of what happens in their areas-at several levels above and below their immediate level. • Since people are our most important resource. managers have direct responsibility for employee training. performance and general well-being. To do this. managers must move around to find out how people feel about their jobs-what they think will make their work more productive and meaningful.

Open.doorpolicy. • Managers and supervisors are expected to foster a work environment in wh tch employees feel free and comfortable to seek individual counsel and express general concerns. • Employees have the right to discuss their concerns with higher-level managers. Any effort. through intimidation or other means. to prevent an employee from going "up the line" is absolutely contrary to company poltcy-i-and will be dealt with accordingly. • Use of the open-door policy must not in any way influence evaluations of employees or produce any other adverse consequences. • Employees have open-door responstbtlltles. too. They should keep their discussions with upper-level managers to the point and focused on concerns ofsignificance.

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INSTRUMENT MODEL

Business strategies. • Next-bench market, with most selling to engineers in industry and government

• HP is the dominant force in the market • Small product-development teams

• Long product life cycles

• Build-to-order manufacturing

Organizational strategies. • Decentralized divisions with clearly defined charters and fairly in dependent activities

• Identical division structures

• Research and development serves as the driving force

• Overseas entities are replicas of related U.S. divisions

Per:formance measures. • Pay-as-you-go funding fairly uni form for all divisions with net profit equaling about 10 percent

• Managers follow well-developed "ratio-management" formulas

COMPLEX SYSTEMS MODEL

Business strategies. • Markets made up of companies that resemble HP. but many oftheir needs are outside of HP's direct lab experience (e.g., offtce automation) • Not the only (and usually not the major) factor in buying decision • Large development teams from many labs, sections and disciplines require extreme coordination • Even longer system life cycles. though individual components change rapidly • Build- to-order large systems manufacturing with repetitive manufacturing for small systems

Organizational strategies. • A group of divisions with centralized marketing and application integration, tightly coupled labs and product management and a lot of effort to define division responsibilities • Significantly different divisional structures from software to hardware divisions • Factory marketing receives as much emphasis as research and development

• Overseas entities emphasize local software development

Peiformance measures. • Profit figures most meaningful at group level since oftentimes revenues (from hardware) are not in same places as investments (in soft ware developmentl • Ernphasts on funding major lab and marketing programs to account for differences between divisions and sources of revenue

HIGH-VOLUME MANUFACTURING MODEL Business strategies. • Limited number of internal and external customers with specific product needs. Tight coupling to lab and technical marketing • Manyvendors in fierce competition • Small product-development teams

• Very short product-development and sales life cycles

• Repetitive manufacturing, automated where necessary

Organizational strategies. • Decentralized divisions share major technology centers and marketing with moderate strategic effort to define division charters

• Identical division structures

• Manufacturing and R&D are equally Important. Small factory marketing effort wi th emphasis on direct customer relationships • Product families built in only a few places In the world. Divisions serve as major regional suppliers

Performance measures. • Self-funding policies fairly uniform across all divIsions. Pricing pressures and large discounts offset by hlgher capital turnover

• "Ratio management:' though different from traditional instrument model, can be stable with experience

~people whD'oe n.eveT UlOrke4 a dayforBewldt-Pcu:kGrd cansense many of .&:IUl.e quaUties ofthe BP CI7CI!f daring a ulsfJ to aftu:toTy orasalas a1JU:e. BP's cuJtu.re has beaa the subject ofrrtlUly magadn.e articles. ft.CUIspapercolwnns and boolccluqJlars. afem ofwhich CU'l! CJuotad here.

The HP way Is difficult to define, both within the company and to those outside. It Includes a participative management style that supports. even demands. Individual freedom and initiative while emphasizing commonness of purpose and teamwork.

-Harvard Business Review

The workers at HP, from clerks to computer spectalIsts, from the plant manager to assemblers and Inspectors. are not separated spatially but work together In open bays. Instead of shouting to one another over a machine clatter. they speak tn normal conversational tones. Because everyone wears ordinary street clothes. there are no visible distinctions of rank or task.

-Alvin Tomer The Third Wave

While everyone loves a winner. it's not so much for Its financial performance that HP Is widely admired as for its creation ofa workplace environment where employees are not hassled. where they have chances to learn and grow. and where they are stimulated to reach their maximum potential. And. not Incidentally, they also share in the profits.

-Milton Moskowitz Syndicated columnist

Standing on ceremony has never been the way to get ahead at Hewlett-Packard Company of Palo Alto. Messrs. Hewlett and Packard are known to all as Bill and Dave, and president John Young's office is far less grand than those of executives tn many old-line corporations. This free-and-easy style exists because the founders saw it as the best way to generate the enthusiasm needed for high productiVity.

-Savvy magazine

In short the most extraordinary trait at HP is uniformity of commitment. the consistency of approach and attitude. Wherever you go in the HP empire. you find people talking product quality. feeling proud of their division's achievements in that area .

-Thomas J. Peters and Robert H. Waterman Jr.

In Search ojExcellence: Lessonsjrom America's best-run companies

Not restrictive or constraining. the HP philosophy does not require a mystical process of brainwashing neophytes into a strange corporate culture. Instead, It represents underlying principles natural to any stable society of people but which, unless explicitly stated, can be easily lost In the short run and bureaucratic world ofbusiness.

- William G. Ouchi Theory Z: How American business can meet the Japanese challenge

After a week at HP, It's hard to say if the grass there really Is greener. I liked the personal "family-feeling" touches-beer busts. company picnics. coffee breaks. informality and managers who walk around.

HP seems to foster a feeling of employee involvement through techniques like quality circles. stable employment. service lunches. Internal training and management by objective (MBO). HP employees are enthusiastic about their company and the ideas and ethics it stands for.

-Bill Stephens Senior writer

ArcoSpa rk Atlantic Richfield Company

5955·4709 (3-84)

YOUR TURN Invites Measure readers to c o mme nt o n matterso f im por ta nce to HP ernployees

A CASE OF MISTAKEN IDENTITY As SOOII (~S th « HP 1.'50 I ('I cl 'is icJ/l COIll

m erci a I was broadcast (cover .'i/o,-!).

JClIllwry-Fcbnw r!/ Me as u re ). rI\( ' co in p a n y rec('i l'ed abolcl 50 /lO(('S WId pl ione ca IIs f rorn upset clllOmol0.C/is[s p oi nting o ur n casting crror. Til is Iel le r is Iypic (~l,

Dear H ular r Pa cka rd . ] saw yo u r co rmue rtal a nd uo tir-cd thal k ind 01' cat aptller does not tu rn in to thai kind ofbu rre rflv, Mona rch b u tt erIlys don 't h a ve fur 01; Ihem when lhey a r e ca tap tllers.

Sn nerely. SPE NCER PUM PE LLY

La rto n . Virg inia

1'.5 . I 1I1 H yea rs o ld Please wri lc back ancl do ll (~I S l. T hats a n or de r!

Spen cer's righ l. 1L'i oll l!] /l l ro u[j ll i llc /I1 ag i c 01 tl'leuisio /l l1w ( a snit /I1orsll Iwooll u bearl caterpi lin r C(/ n !)('('OIl1C (l

/I1o/wrcll b ll /(cl) 11/. "T lt e /Ilollordl c(/I crpillar louks li k e WI uUIy. Iwirless . qteen worm WId it spits bile ." SU!}S Jim Eaton. national ndvc/lisin9 rlWIW~W'

Jor (Il e Personal CO/TlplllerGruup. " W(' llw/IIJ or til(' best-tookinq i nsects [( IC

co u ld J ill cl a nd l10p ed (/ WI t'l 'cn/O IJe

wuu ld be lVi/ il lig (() accept Ollljoo/iIlY w W , M o tll er Nat u re ."

FAN IN LOVELAND I h a ve [u s t read the .Iuu n urv-Feb r u a rv 198 4 is sue o l1'>'leCls ll re whi-cll was loaned to m e by an HI' em ployee who works a t you r Fort Collins plant . I was par ticularly Interested in Lh is is sue be ca use I rece n t ly purch ased a ll HI' 150 com pu te r with a co nsiderable amou n t ofso l twa re ,

I feel t h a t I a m a n assoc ia te o f HP be ca use of my in te res t in liP's ael ivi t ivs eve r s ince the Loveland plant was buill many yea rs ap;o 1h ave co me to know a large number o fH l- employces in Love land. Fort Collins a nd C ree lev, And la st but not leas t . b ecause I own i .200 s h a res o f HI' s tock

J . AHT HUHCOlJUE I ~

Loveland

OUR AXIS SLIPPED T lwnks to {/ J(> s lwrp-{'yed Meas ure re aders w ho wrolc a nd cu I/cd (0 l ellllS

(lwt ourfive·ycor nct-sa tes qrapl i ill (/ le ,](lf lUary-Februa ru i ss u e' (lias wrong.

0 11 1'hell'S uw ((' til(' r i5]1[( II Ci [lllt, /ll e .!lg u rcs o n th » ba rs wcre co rr ect, b u t (Ill' labels 0 11 our u -axi» s l Ipped ( b il l o n ly by $1 billion ). You 'll be g la d 10

knOLl! thai the gOQI d idn 'I co m ciro m o u r HI' plotter. bul./ rom Ill e p a st e-up krr ((e ills/l'ud .

What public issues affect HP people and their jobs? Are there ques110ns you have about company operations? Do you disagree wi th something you've read In a Measure article?

Write! Wewant you to share your opinions and comments with more than 74.000 other HP employees In Your Turn.

Address letters via company mati to Editor. Measure. Public Relations Department. Building 20BR, Palo Alto. Via regular postal service. the address is Measure. Hewlett-Packard Company 20BR. PO Box 10301. Palo Alto. CA 94303-0890. Try to limi t your letter to 200 words. Please sign you r letter and give you r location. Names will be withheld on request. Where a response is ind icated. the best available company source will be sought.

March-A p rtl 19 84

Pro In April 1982. engilH'fT~ a t Ill"s ( ompu ter di\'i s ion in Boblingen, \\'("sl CIT ' many, undertook an ut u ts ua l d("sl~n

c!la n ge : The-y sawed 01r 111(" krybourd 01

one of HP 's most popular desktop corn puters . the HI' 9836, Sallslkd \\'11 h ti ll" result . thev s ent till:' slightly nlu-n-d ma ch mc into product ton as a speci;11 oplion for the European market .

Un like the comput t'r 's ori t!i 11.11 de s ig n e rs 111 Fort Collins, Colorado . I tH' German e n g ilH'l'r S \\ ere for c t-d 10 takt· tnto a ccou n t a 11t'\\' facl or ill t IH' COlll ' purer m arketpla ce : go\T r n lll e lll rn~11 1 ' 1 '

t ions Co r lISill ,g \ ideo c!ispla \' unu-, l't ll' W('st German gm'erllml'nl h ad is ~ \lt'<I

a regulation r equtr im; displuv uuu» (bot h u -rrrunals a n d r-orn p u u -r -u ro have a detached k eybo ard l' " c e p l 111 extremely specialized applk-at H)I)S .

Ml.'etinggm·errHllt'IJt s afety st an dards for clcrt ronu-equ ipnu-ru IS 110lh , ing new for Hl'. But stundards for t tll' use and design ofvideo di splay 1I111h IVDUs or Vl r'l's l have come lip for sr-rl nus discussion onlv III the last 11'\\'

years-c111eJIyin Europe, hilt also 111

s o m e lj .~ . slale lq~i5Iatur('s ,

The diSCUSSIOns cenl er Oil a lil'1<!

known as hum.m t.« t o i -, I lf -(·ft!.ll '

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tH'allh (l!-partIlH'III'"

More humanfactors engineers are being hired at HP. but right now you can count them on one hand.

Hut now. ollkt 1I ~{ r d \'1)1 S 11,15 r-vplodcd r« 1111' pllllll wh('n 'll I'" a m . ijur ('Il(UIlOIllH I OIH ITIl For 111',.1 ..,upplH'r oi\'D1Js _illS 011 ....0 a 1ll ,II'k"llrlC l Olll er n , Analvsts a: l ntrrnut mnul D,ll d ( 'nrpnrol ' tlOIl ('Slllllilll' 111011 bv I ~tl-->h :11) m ill nu i tlTmillab wllI1>e 111..,1<111("(1 III II\(' lJ S alone . ('urrnl ll\ ', 11I(T(' ; tr l ' 1') . 21:') 111

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~1E. i\S UHE 14

IS YOUR TERMINAL HAZARDOUS TO YOUR HEALTH? Have you ever wondered whether you r terminal emit s harmful radiatton? lfyou h ave, you're not alone,

It helps to know h ow your terminal works . lt's strnilar ln manywaysto a black-and-while TV set. A source of elec trons . the ca th ode, bombards the back side of a t h in ~lass screen coated with phosphor, the anode. When the electrons strike the phosphor-coated screen, they emit light and you see an image. The light emitted by the phosphor fades quickly and must b e refr eshed by another electron beam, In mos t terminals, this refreshment occurs at 60 hertz, or 60 t imes a s eco n d. fast enough to al low the eye to recognize information on th e screen .

Fears have been raised that emis s ions from terminals ca use cataracts orbirth defects. Tests show that vis ual di splays do emit small a m ou n ts o f radiation-about as

the HI' 2:>0 COl lSO!e mod el Most 01 th is wo rk wa s ('<l ITkcl o u t h v

in dus lr ia l des iJ..( IH:' rs . the people who com b ine e ngi Ilcer in .L( w il t! a n to m a ke s ll re a product 's <.I p pear<lll(·(, is a s good as il s pcrto rm uncx-. Today. t lu- inl're<lst' in ergo nom ic cxpcr-tat tons a nd uovcrn m en t regu lations has !ed H&D en g in eers and in dus t r ia l c1t'si.l( ncr5 to (urn to " h u m a n -fac to rs . r nglll('e rs for h el p in desi.~ l11 ng VDlb

Hum an-Iru-to rs e ngilleers gen f ra lly ha ve a n a cad e rn ir ba c kg ro u n d in physics . eng in eert ng . p hysi ology. psychol0 /Zv. exp e r tm e n tat ion suu ist iI'S . com puler science a nd comnun u ca t ion They a re fami liar w t t h l hv probk-rns of Ii ~h l and h eal. m echa nical e!<'sign. n e u ro lo/Zv, a n tn roporncrr tcs . VIsi o n a n d perce pt ion. ac oust ics . lca rntnj; a nd m otivat ion , task a n alysis a n d lin.gl1is t ICS. In ,geIlt' ral. m ost trad it iona l en g in e e r in g p rograms do Ho t o ffer t lu background tha t enab les g rad u ,!les to ex h a ust ively eva luat e l he ergonomic aspeels of ha rdware a n d sort ware.

T he world's largest co m p u ter com pany h a s nearly 200 p eople specia liz ing in human fac to rs, b oth in product d e -

March-April 1984

much as lightbulbs , radios . m asonry wall s and ou r own bodies . Th is radiation is so s light. that it can hardly be dt sttngutshed from "back ground radiation : ' the radiation from all natural a n d man-made sources.

A 1983 study co m m ission ed by Canada's MInister of National Health and Welfare studied em ission s from 150 different models. The results: "Radiation em is s ions from VDTs are either non-existent or a re so low t h a t no standard in the world would classify these em ission s as hazardous .. . . Ther e is no reason for any person , male or female , you ng or old . pregnant or not. to be concerned about radrologtcal health effects fromVDTs.··

A U.S . government s tudy by the National Institute of Occupational Safety a n d Health. releas ed in 1983, studied t h e effe ct ofVDUs s p ec ifi

s ign and in haste erL(onom ics res earch . More human fartors l' 1I .~ i lJ('e l' S a re bt'ing hlrt-d a t H/'. b ut r igh t now yo u Ca ll 1'OUIH 1I1em 0 11 o n e h and, T he lirsl . Wanda Smith. h ired u ve al ' a n d a h ai l' ago. wo rks in t lu- Cornp u n-r C; ro u ps In dust r ial Desi g n Dep artment as human radars eng in ee r ing m arr a ue-r " My jolJ is 10 anal yze (LIla a nd prov ide rccommenda lions to h elp HI' engillee rs a n d m anage rs m ake b e t rr-r bus incs s dcci si ons : ' she savs

/\t the mo men t. J-IP 's e rgonom ics e-x perts a re watch u u; th e d eve lop m en t or standards in Gr -rrna ny 's p ivota l domestic markets Besick-s del adled keyhoards , G r-rrnun re~ll ia l ions for wo rk s tations clea t wil h ke yboard height. c ha rac te r s ize . display lu m i n a u ce and co ni rax t , tabl e !)(' ig h t. leg roo m . gloss on cq u tp me-nt su r ta ccs a n d o the r e rgOllOlll ic constrk-rat tons.

Using com p u te r d isplays wi thou t these ergonomic feat urr-s is n ot illegal in Germa ny u n t il 19H5 . hu t it ca n ma ke a co m pany a n immed iate targrtlor Jaw suits and s t r tkes [ror n Gerrna nvs active uulons Ot h er Europea n co u n t r ies a re lollowtnu Gerrnan v's ergonomics k-ad

cally on the eyes. This was the report: "Our general conclusion is that eye dtscomfort, blurred vision and other visual disturbances. muscular aches and stress reported among VDTworkers are probably not due to anything Inherent in VDT technology," Even more recen t research by the International Ergonomics Association demonstrates that eye discomfort is Virtually always due to a poorly designed work environment and inappropriate use ofVDUs,

In practice, the proper conditions are not always easy to attain. HP is starting to include Instructtons on optimum VDU use with Its equipment and developing training materials for cu s to m ers and employees. Employees ' questions about radiation from VDUs Drworkstation ergonomics can be directed to Kevin Grant of Corporate Industrial Hygiene.

"T h e Gr-rmun s ta n da rd h a s become the d e./uc lOya r ds ti c k for v ideo di splay un its• . says J ac k Magri. m auauer o f 1--1I" s Co m p u te r G ro u ps Indusl r ial D e sign _" No coun t ry wa n is lo !JI'COJlle a dUlll ping ground for poorly de ~ignl'd

u mt s . The com pa ny that o u t wa rd ly r-lcr-ts nol to sell in Oc-rmanv, t'l f'l't s not to sell ill E u ro pe , a n d elec ts to have a l'ha llgt' in m <lnagemt'nt ..

Wlth n early 30 percent o ft ot ul J-I[> sales gcnerated in E urope . HI' d iv is tons a r t' ta king up llu- c ha lle nge T he HI" 9H36 ilsd I'w ill not be re desuzned or ret , refitt ed to incl ude m o re crgonomie leatures. bu t it s su('('essors wi ll. " It di d n 't scem llk e a ,~o (Jd u s e o f eng inee r ing lime to go back a n d fix thos e thi ngs . bu t all til e products on the dra Wing b o a rd have detac hed keyboards a n d t ill -and-swivel capa b iltty. " says J nu t30rclJl'r l . product m a rket ing m ana ge: fo r t!1c l ll'9836

HP 's hi ghly regarded terminal fa m ily is a lso und t'r .L!;oing e rgono m ic improvem en I. In a 198 3 s urvey of 50 it'a di ng rerrn tn als bv Data Decisions . ,Imarke-t re s earch fir m , th e HI-> 2626, Ill' 2624 . HI' 2622 a n d HI' 2645 ranked Iirst . s er

15

ond. sixth and 12th in overall performance on the strength of their reliabil ity and data-Iorrnatung capabilities. In ergonomic qualities. they placed a lit tle lower : ninth. 18th. 16th and 20th . respectively.

Older terminals in these lines can gain immediate swivel capability with turn-table devices that slide underneath the terminals. Newer terminals in the 2620 line have a ball-and-socket joint to allow the machine to both swivel and tilt.

A third-generation HP terminal incorporating many of these ergonomic factors is beln,g designed in Grenoble . France. and will be manufactured both there and in Roseville. California.

The HP product on the market today wi th the heaviest ergonomic emphasis is the mainstream personal computer. the HP 150. Its tilt-and-swivel capability. anti -glare screen. surface colors and low-profile keyboard make it ergonomically equal to or better than other major personal computers. In addition . its touchscreen is a true ergonomic advance. especially for the person just learning to use a computer.

However. critics have pointed to its nine-inch screen (measured diagonallyl as an ergonomic drawback since other companies have 12- and even 15inch screens on their pes. HP's smaller screen stemmed in part from a destgn objective that stressed a small "foot · print" (the bottom dimensions of key board and base) Accordingly. the HP 150 was designed from the outside in. much like HP's first handheld scientific calculator. which was made to fit in a shirt pocket.

A small footprint can provide a signif· icant ergonomic feature. since a compact machine brings more room and more [lextblli ty to the work area . " Peo pie are really pushing footprint. but there are a lot of tradeoffs." savs Wanda

The design team for the HP 150. headed byJohn Lee. R&D project manager at HP 's Personal Office Computer Division . compensated for the small screen size by developing a high-resolu tion graphiCS display. Form ing the nine-inch display are nearly 200.000 pixels (display dots). the same number round on HP termmals with 12-inch displays.

Within HP. the HP I50's most srgniftcant feature may be its keyboard That keyboard will now be the company standard for all terminals. desktop computers, personal computers and lo,gic development systems.

1\110 years of dedicated design reo search and healed management debate weru into its development TWodozen different keyboards were considered. Among them : the 15 different keyboards on existing HP products. Finally. commlltee members agreed on a Single keyboard that allows for the full range of functions currently in 19 lnternattonal languages. It will enable customers to .~lid e from one machine to another with the greatest of ease.

"In the past, all divisions considered theirproduct the center ofthe universe and all the other divisions had peripherals that plu.gged into their product."

TIlt" choice of a Single keyboard is the first step in all effort within the Compurer Groups to bring~reaterdesign unity to HP 's products. This will also have a ripple effect in the lnst rurnent . Med ical and Analyi ical groups . since many of these systems incorporate computer products. The program is nicknamed "Rosebud. for ' Relating Our Svstern Elements By Unified Design ."

" In the past. all divrsforis considered their product the cen ter 01 the universe and all the other dtvisrons had peripherals that plug,gl'd into t lu-Ir product. explains Jack Magr i. the le-ader of the program . " Now we don 't JUSI sell prod. ucrs . we sell svstems that mus! he lnregrated aesrhe-t ically as well as iechrucally'

Completely illtegrat('d hurdware, however, IS ontv half I he solu t ion "T h e wtnner ofthc co mp u ter wars will be the leader in software ergonomics .' pre diets Wanda Smith . HI' is a solid sup· plicr of me nu -dr ivr-u software , wit h op

tioris that allow customers to tailor software packages 10 their specific needs . But many users do not know how to exploit their software for maximum productivity, They've had liltle classroom training and their HI' in srrucuon manuals often focus more on commands than on tasks.

A group headed by Jan Stambaugh of the Personal Software Division aims to change all that by developing training tools and improvmg software ergonornres "We're linding out how to make it really simple and less inlimidating for the customer to use Pes. the terminals of the future . At the same time. we 're impacung the design of Ihe software itselfduring development. which is why we're at the division . not group. level. " she says

Among the issues in software design is the development of color-coded pro· grams [or applications other Ih an eng ineering des ign, presentutton graphiCS or process control-such as financial calculating and word processing. "Not to go with color software would be a big mistake. " warns Wanda. "T h e office termmal is going to be like the standard TV Multi -color will be the ubIquitous display regardless of application ."

Both aesthetic and ergonomic fea rures of HI' hardware and software products may soon be measured in a self-certification lab proposed by Com puler Groups Human Factors staff, If approved . the lab would ensure HP products meet or exceed any country's ergonomic standards before they go out the door. The lab would also conduct applied ergonomics research

Such plans are evidence that HP aims to do an even better job of building machines tha t make people more product ive and at the same time . more comIor tuble. II

MEASUH I<: 16

I

R£IJUCEO FLVORE5CENr L-/GH1

t

THE PERFECT SETUP How to set up your workstalion de pends on how it is used and how you are shaped. Keeping these five goals in mind should help you find maximum comfort at vour terminal: Reduce glare. If you have a tilt-andswivel feature. use it to keep th e screen from rellecting overhead light or sun light streaming in through windows. If you have a stationary terminal, place it on a desktop turntable or mobile typewriter table to enable il to swive l.

To keep overhead ligh Is from reflect ing in the screen and to ease strain on your neck. look slightly down at the display with the top no higher Ih an eye level.

You may wan 1to rally support for re dueing room Iigh tin~ altogether and obtaining desk lamps for viewing paper. Clothes can reflect light, so have a dark apron available if you like to wear while shirts.

You can attach filters to the front of the display to make it darker. Which kind you select depends on the application . Take into account that etched filters tend to blur the edges of charac-

March-April 1984

~mu BACK SUPPOR/

o?-----AOJIJ5,ABL£ fI£/GHT

rers. mesh Iilters arc fragile and collect dust. and coated fillers pick up fingerprints easily. Adjustfurniture. Ideally. your chair should provide full back support. from the lumbar region to the lower part of the shoulder. If you sit up straight at all times begin maktng adjustments by W j

ing the German standard of a keyboard 30 mm (1 . 14 in ches) off the table at the home row and a table 720 mm high (27.4 inches). But if you are like most people and lean slightly backward to ease strain on the lower back . you may find it more com for table to have your table and keyboard s ligh tly h igher.

A foot rest eases back strain when it raises your knees above you r hips . A palm rest ca n ease the strain on the wrists. but it can also hamper highspeed typists. An adjustable copyholder is a must. lf'your desk is wide enough, put iI between the keyboard and screen. VDU users . just like moviegoers. differ on their preferred screen viewing distances. Most range from 450 mm to 720 mm (about 18 to 27 inches).

Tuke breaks. At least 15 rntnutes every two hours . If the work is stressful, turn to another task for 15 minutes every hour. Rest your eyes. Move them up. down. to the left and to the right. Look off in the distance. Stand up \Valk around. Stretch . Maintain the machine. Wipe finger prints from the glass and keys. Have your ca th ode-ray tube inspected periodically. Ifyou suspect deterioration . have it replaced. Have your eyes examined. Many <'ye prescriptions. particularly for bifocals. assume a reading distance of 300 mm (about 12 inches). Most VDU users read at 450 mm (18 inches) or more. requiring a differen t focal length.

Any close work such as starin~at a VDU tends to reduce the eye's bl i-nk rate . This decreases eye lubrication and can cause irritation . particularly if you wear contact lenses. Various eye lubri cants can minimize discomfort. Check with your eye doctor.

For help in set ling up your workstation. contact your safety and health department.

I7

CLOSEUP Zooms in on the everchanging world of HP people. products and places.

FLYING SAUCERS HP's Martin Schonruayr leaps 11I!.(ll aga ills t his Finni sh opponent in th e Ult i m a te Frisbee World Cham p ionshi p in GO( henboru Sweden . :'>lart in a n d his Austrian teammates fini shed the competit ion in fou r th place,

The co rn rnerc ta l cu s to nu-r ellgllH'tT from 1II"s sa les oflice in Vienna s pends 1110st of hrs s pa re tune j u rnp tri a a ro u n d . He practices with the fri sbee team three nights ,1 week an d plays ill a voll eyball Ieague o n the o t h er t\\ o nil.(hls..

THERE MAY BE A COMPUTER IN THEIR FUTURE Tlw se ve.rr- ... l' st u drms ; il Bla c ktJlIlll Lu k « I'rllll.ln' S clloo l in M el b our ru. ..\lI slralld , m ;l ," tw 0 11 IIH' lr \\'a~' to ( ' ,In' I T S II I li lt' co m p u u -r IIHlllSI rv

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MEASURE 18

C I G FEET!

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TOPPING OUT IN BOBLINGEN There 'll be a n ew h ome t h is su mmer lor 250 Hl"people in lh e L ~( )blin gf'n , West Ge r ma ny, sa les office when they m ove into (his bul ldtnj; AI t he topp ing-ou t cerem ony las t November, a crane pla ces the t radtr Ion a l ga rla n d on the roar while HI' employees a n d municipa l co uncil members watch HI' e m ploys m ort' th a n 3 .4 00 peop le in West Ger ma ny

March-A p ril 1984

When HP's Corporate Treasury Department has more money coming in than it needs

to cover expenses. it makes sure the excessfunds aren'tjust

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20

INTEREST INCOME FROM INVESTING EXCESS OPERATING FUNDS

80 ($ Mll llO S) '--'__---J U.S. INTER no L

dling cash is not m uc h d ifferent from you r own .

You h a ve periodic p ayments for water, phone, ele ct ru -tty, houstn j]. garbage , car a nd In surance. You rer etve m oney fr om your HP paycheck a n d (pos sibly) interest from your investments to cover those bill s. If you were to invest that m oney between the time you received it unttl the nme you had to pay it. you cou ld ea r n interest income. With the s u ms HP is collec tm g and paying each d ay. i I could make a difference of th ousan ds of doll a rs of interes t.

For HP. knowing preci s ely wh en money will arrive a n d when expenses a re due is c rucial. .Jean invests the excess cash for fro m one (0 90 days , de pending on the forecasts s he b as for fu tu re ex penses. Part of the for ecas ung p ro cess inclu des relying on dr v lst ons and sales regrons to give h er accura te fo recasts. J ean co u n ts on two essentials to m anage HP 's cash effecttvely: coord mation a n d co m rnu ntcatton.

It is n ow 7:21 a .m . "Fo recas ti ng is m os t nnp or tarr t .trh e

Br itish n ative s ays . "Each drvt st on forecas ts o n a weekly b asis for t 3 we ek s the expenses to be paid by their accou n ts payable departmen t. T h ts may includ e local taxes a n d p ayroll bestdes the re gu lar payments to vendors . Other departm ents such as Corpo ra te Tax . Cor porat e Construc tion and Fleet al so submll forecasts. These cove r large payments made on a regular basis. b u t not d aily.,-

Jean Hash determines which banks receive short.term deposits of excess cash.

March-April 1984

1982 1983

By investing excess operating cash In short-term deposits with banks, HPcreates millions 0' dollars of Interest income each year.

60

40

20

o 1980 1981

Monies co llecte d Irorn HP cus to me rs for the sales regi ons a n ' d ep osi ted in ban k depos it boxes st ra legically loca te d wit hin th e regron Thes e fund s a re t ransfe rred daily 10 HP's m as te r acco unt. J ean forecas ts the d ay's like ly receipts by r ead ing ea ch sales reg ion 's m onthly esti mate .

Co m m u nication is impor tan t because excess fu n ds a re tied lip in ttxedterm deposits, Corpora te Treasu ry has n ever broken a deposit agree men t to ge t fu n ds-and the department do esn't ke ep a "pe t ty-cash d rawer" for large payments ,

Recently. HP n eeded a few million dollars for a property purchase . No problem . J ean was a ler ted far enough in adva n ce to m ake the a dj ustmen t in funds.

"We h ave ou r own limits on investmentswith b anks . HP Isn 't ou t lo sq ueeze the la s t inv estment penny out o r eve ry dollar. " s he says. "We wan t prim arily to ge l good ra il'S on loans with secu re m stttu tt ons. We d on 'l /1,O for a 10 percent loan with a poor in stitution. We'll se tLIe for a 9.4 percent loan rate a n d s ec urtly."

Fortune rnagaztne re-ce-mly rate d Hewlett-Packard th ird a mo ng the top 500 U.S . co m panies for ma nn~i ng assets. One reason for Fortune 's a ck nowledgemen t is the method HI' u s es to select ban ki ng insti t ut ions.

HP ra tes banks on a tou r-po rn t S('ClIe

fro m accepta b le to exre-p t to nal. Each raung ca r ries with it a maximum amou n t ofmo nev HP w ill inves t in the institution .

Banks a lso have to be m onitored clo s ely .Jeun chuckles . "S ometimes they shortchange IiIJ by o ne million

d ollars ! But o ther times . they overpay us one or two million . I le t th em know abou t thei r erro rs either way."

The clock s hows il is now8 a .m . Jean h a s fin ished h er ca lcu lations

and prepares to in vest the d ay's excess operating fu n ds S be shuffles throug h h er s lips of pap er wit h va rious bank in, t.eres l ra tes .TBanks have been ca lllng for the past h our, bu t J ean h as a voide d the phone. J ean Brusin h a s writ ten down a ll bank q u otes o-n the m orn ing's m terest ra tes . )

"We h ave to ge t h ere early so we can get the best inter est rates before they s ta r t to cha nge. Some ti m es they ca n drop a p omt or so Il1 the morntnq." J ean says. She di al s the phone a n d ch a ts brlellv with the banker before ask tng , "what a re you r in terest ra tes today ? Only 9. 3 percent ? I've go l 88 million to inves t. 9 .4 percen t? Good rat e , I 'll take i t ."

With that verbal O K. HP's S8 m illion is put in to a ce rt ificate of depos it that w ill ma ture in 25 days. Between J anua ry 12 a n d Feb r uarv 6 , this in ves tmen t will h ave earned 852 .2 22. The b ank will take HP 's 88 mill ion a nd loa n it to it s customers a t the gOll1g marke t ra te .

J ean is n o lo nge r in awe orsuch large s ums or money. S h e h andl ed a n ave rage ofS l.2 billio n pe r mon th 111 1983. Tha t figurf' includes incom ing. outgOing. tra nsferred a nd in vested monev,

"We h a d a lo t o f busmess in Octobe L the last m on th of fisca l '8 3_I h andled $2 bil lio n It 's no big deal n ow."

What a diff erence a dozen vea rs of experience a nd a lew bill ion dollars ca n make M

2 1

QUICKACTION SAVES ALIFE Emergency training pays offfor HP auto mechanic

CPR hero Jerry Feager services neet cars at HP's M~t Sales Region headquarters.

When Jl'fry Fea .ger answered an enu-r.ge ncy ca il la s l June at t hc Midwe-st Sales Region oltice in Holling :l.kac!ows. lllinots . he had no Idea II would cham!,l' his life,

' Fra n k Stlvr r, a coordmator J1 m t hr parts inventory department . was lyin,g back in his charr and held had an apparent heart at tack ." recalls .Jcr rv, a Iirst-atd and CPR tr ardtopu lmonurv resuscitation I mst rueter. I checked for breathing. pulse and air I le had IlO Vital signs so l starred gh'in,g him CPR . That seemed t o bring him around and by that time paramedics were there '

.Jerrv, [I se-ruor auto me-r-harm at t hc MSH headquarters office. savs this was the first t irne he had e\ er used CPR "except on mannequ ins, I was scared to death. but I felt really good after 1he paramedics ,ga\'e me a lot of'at iabovs. ' "

That was only the begil1l1in~, Si~ce rhen. .Jerrv has been honored several limes for his heroic act : • He received t he HP Rolling Meadows office "Good Samaritan' plaque • He was Iearured all the Nl3C-TV program "lnsrde OUl " that showed how CPR can save lives , • He received all Arnerrcan Red Cross cernticare Signed by President Ronald

Rl'agan . 0111.' 01 six people so honored for sa\'ing a life using CPR

Best of all . though. he decided to become a paramedic. After taking a ri ,gorous IOfi-hour course covertna everythin.g from ambulance tratnmg to auto extraction .Jerrv now is a cerufied emergem'y medical technician .

"lts been." savs .Jerrv, "the most excil in .g time of my lift',

Frank, who had a history of heart disease . died December 23. 1983. But Frank's wife, Helen . credits .Jerrv with giving her husband an extra six months to live: "J er ry 's quick act ion saved mv husband's lift'. ,. she says M

MEASUR.E 22

JOHNYOUNG HP's president reflects on the future of the company's culture.

T h is is s u e ofMeasure revisits th ~

s ubject of the HP way, a blend 01 philosophy a n d prac tic e that h as

made HP stand out among other employers and vendors .

Many people worry about the future of the HP way. Newspaper art icles poi n t to our entry into raptdly changtna, highly cornpeuttve markets. Employees potnt to how much we've ~rown and how often we've changed the shape of our organization charts Common to all these questions is the concern that perhaps our special culture is too fragile 10

withstand change and stress I have developed a number of

thoughts on this subject. and I'd like to address the doubts that some' of us feel-or. to be more prec-ise. that all or us feel sometimes

First. the fact (hat we worry about (he HP way means that we recogniz(' there's something special about our relationships with one another We know there exists an tdenttfiable set 01 philosophies about how we approach our management . our employees and even our customers, We know it's valuable, too. for if it weren't the concern wouldn't be there.

Secondly, I'm ,~ Iad we worry. That means it's less likely that we'll let our HP culture fade away. like something gone out of style. To add some perspeclive, however. let me note that we were asking ourselves the same questions when i joined the company more than a quarter of a century ago. A major concern at the 1960 management meeting was how the HP way would survive our R;rowth in the sixties, and at that time we were all of I ,750 people and $30 million in sales.

I've seen a lot of change since [joined HP, and the nature of that change is the third point I'd like to make, It goes without saying that the sheer size ofa 74.000-person organization makes it harder for us to keep the kinds of personal business relat ionships that characterized the earliest days at HP.

It 's not possible for a few of us to do all the "managing by wandering around" or to .keep an open door wh ill" getting the work done. However. we

At a Bay Area luncheon, HPPresident John Young (left) a nd co- founders Dave Packard and Bill Hewle tt present service awards to employee s.All three also rec eived awardsJohn for 25 years and Billand Dave for 45 years.

have 51 divisions . 13 sales regions and 34 sales companies, so (here are several managers everywhere to share this key task And it's important that we do try, because' the benefits we reap from our open communications Iar outwetgh the tIme drain they sometimes represent. Hallway conversations are more valuable than a dozen memos.

Some questions about the future viability of the HP way have stemmed not so much from growth as from the changing nature of our products and our need to organize ourselves effectively to manufacture and market those products, Our customers are asking for systems solutions 10 their needs . As a result. we're no longer just selling single products manufactured by a totally autonomous division . We're selling families of products that work together where several HP divisions have had a role to play.

This Integration of products into systems calls for an interdependence of dr visions . and some argue that divisional autonomy-and rhus the HP way-is

therefore at risk I don 't a~ree with this reasoning, The division will remain a vital part of our organization, even with some changing form . It's the idea ofan independent work group with clear internal and external responstbthues that's key,

The necessary convergence of our products and divisions doesn t make (he HP way obsolete , On the cont rarv, the need rOJ' cooperation-between iiivisions, between groups , between field and factory-has made preserving the HP way even more important . The fundame-n lals of good COOp('f3 l ion and communication are more necessary 10day (han ever before Only by using the HP way can we bridge division and funclion to develop and support systerns solutions,

There's one last point I'd like you 10 carry with vou. The lIP W<IY is not somethin'g created by a few butts the a~gregate result or countless individual actions and attitudes or each and everv member of this organization Our valu able culture is not external to vou . You 're part ofil. So. in response to the question of whether the HP way will survive in the years ahead, my 'response is this: II depends. It depends on all of us. It's a responsibility to be shared by all.

March-April 1984 23

NEWSCLIPS Recaps the newsworthy events, changes and achievements within HP

CHART CHANGES HP 's rnanufacturtng activities in the United Kingdom continue to expand The Microwave and Communications Instrument Group has formed a new Queensferry Microwave Operation with Doug Scribner as operations manager It will share a site outside Edtnburgh. Scotland, with the Queensferry Tele communications Division and concen trate on products in the RF frequency range tailored to fit the European marketplace. Within the Information Products Group. the former Computer Peripherals Bristol Operation has been raised Lo full division status under Doug Carnahan as general manager, ...A new Laboratory Automation System Operation has been set up within the Avondale Division . Operations manager Is Jim. Serum. A new Manufacturing Research Center under dtrector Bob Grimm has been formed within HPLabs. Fred ScbwettmaDn has become director of the Technology Research Center.

KOREAN JOINT VENTURE Hewlett-Packard Company and Samsung Electronics Company ofSeoul. Korea. announced January 16 the formation of a joint-venture company 10

develop and manufacture computer products and to sell and support HP products in Korea. II will be owned 55 percent by HP and 45 percent by Samsung. which has been a distributor for HP products since 1976.

FAR EAST Colin Chin has been named to the newly created position ofcountry sales manager for the People 's Republic of China. based in Hong Kong and reporting to Far East Region G M Malcolm

Kerr, Cbi-ning Liu. Chrna GM. remains at Imercorutnr-nral headquarters in Palo Alto with responsibitity for HP's overall presence III China and longer-term projects . .. Victor Ang is the new GM of HP's sales subsidiary In Singapore .. . The Components Group has named JohD Fischer GM of its rnanufacturtua operations in Penang. MalaysIa .

HP'S REPUTAnON Hewlett-Packard placed third among 250 of the largest U.S. corporations included in a recent survey of corporate reputat tons by Fortune magazine in Us January 9. 1HH-t. issue. Some 7.000 ex ecuuves, outside directors and financial analysts participated Those III thc office equipment and computers category gave HP highest honors in three of eight attributes: innovat rveness . product quality and the ability to attract. develop and keep talented people. Top honors overall went to IBM and Dow Jones publications .

HEW HATS In the Corporate Manufacturing orua ntzatton. Tom Lauhon h<JS been named to the newly created role of director of Corporate facilities HI.'·1! provide a corporate focal point for all activit les from initial planning for new sites and buitdings through land acqutsruon. COIl

structton and operauonal lrfcume of facilities . Bill JOhDstOD has been appointed to the new role of director. Internattonal planning and administration .. . MaWHietala is business development manager for Northern Europe . . Dick Watts is Electronic Measurements Group marketing manager.

NEW PRODUCTS The HI' H51 0 network analyzer sys tem from the Network Measurements Division allows a microwave deSign t'ngi neer to isolate and electroru callv measure individual parts ota ctrcun, Measurement accuracies are 10 to 100 1Irnes more precise than those of other' mstruments on the market. .. The Manufacturtng Test Division has introduced 10 significant enhancements for I he HP 3065 board-test family. Ineluded are software that allows users to develop test programs faster by autornaucatly capturing data from CAD systems: a standard feature that provides summarized information from the test and repair process : and software 10 allow users to share data arnong a wide vanety of computer systems. .'.. The Santa Clara Division 's HP 5182A waveform recorder/generator makes it possible to record almost any waveform mcludtng Irorn an event that can 't be eastty reproduced-and replay it re peatedly for analysis. Software packages for the new recorder/generator and an earlier HP 5180A waveform recorder have also been announced.

The San Diego Division has rounded out its design-graphics product family with a new top-of-the-line draft mg plotter. the HP 7586B. It can use rolls of paper to produce plots up to 40 feel long. .. .A new transmission-Impairment measuring set (TIMS) from the Colorado Telecommunications Dtvisron makes it simpler to test complex voice and data-transmission circuits.

Waltham Division has announced two new low-priced products for usc III

morutortng crtttcally ill patte-nts : the microprocessor-based HP 78720A arrhythmia monitoring system and the HI' 78532A mon itor/ terminal

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