Golden Moments with Bill

here wasn't much to do in carried the complete press release the small Southern Illinois announcing Dave's death, tributes to town where I grew up. So Dave from famous people, a collec my best friend, Tom, and I tion of historical photos of Dave and spent our Saturday after Bill HeWlett, a chronology of Dave's noonsTin the local public library. accomplishments and an opportunity There we feasted on a smorgasbord for employees to offer their com of information: the very latest maga ments about Dave. zines and newspapers, sports trivia, The San Jose Mercury News, the maps, biographies, encyclopedias and hometown newspaper for Silicon literally thousands ofbooks on every Valley, took the Internet's real-time subject imaginable-and some we had capabilities one step further. It broad never imagined. cast Dave's memorial service live and On the cover: The signposts In a matter of a few hours, we transmitted digitized photos of the are clear: The Internet is the figuratively traveled all over the service to a worldwide audience via busiest, craziest and most important highway on Earth world, met fascinating people and its Web site. -and HP is revving its engine experienced life well beyond the With all due respect to other forms to hit the Internet road in American Midwest. of communication, between HP's high gear. Illustration by Steve Barbaria. The public library was the Internet intranet coverage and the Mercury of the 1960s. News' Web story, you couldn't find a I guess that's why I shake my head more accurate, timely or comprehen in disbelief today when I hear people sive account of Dave's life. say that they don't understand all the What's the Internet's future? Every hoopla concerning the Internet and its day-every hour for that matter graphics-laden offspring, the World there's more information, more enter Wide Web. tainment, more commerce and more Where else can you get so much outright junk there than ever before. up-to-the-minute information and edu Ultimately, the Internet's beauty cation 24 hours a day at a relatively also is its curse. You think you already small fee without leaving your home suffer from information overload? or office? Wait until you become a regular Inter It's amazing when you consider net user. Ifthe library ofthe '60s was that, for most ofus, the word Internet a smorgasbord, the Internet is an wasn't even in our vocabulary two or overeater's worst nightmare. Just like three years ago. But if you want to with all pleasures, you need to prac thrive in the business world today, tice some moderation. , you'd better have your name between I still like visiting the public library a www-dot-com Internet address. today, but when I go there, I don't try One powerful example ofthe impact to read every book. ofthe Internet-and intranets within -Jay Coleman companies-occurred in March when HP co-founder Dave Packard died. Within hours of his death, the Corpo rate Communications intranet site

2 MEASURE

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FEATURES DEPARTMENTS 4 Fasten your seatbelts: Internet ahead 17 Your turn MEASURE focuses on the Internet-"a marathon MEASURE readers share their running at sprint speeds"-and the many ways views on matters of importance. in which HP is keeping pace. 22 People 11 Finding gold in the land of silver A competitive spirit propels HP For HP Argentina, 1991 was a turning point, with Turkey G.M. Aysel Ozal in business a new government that is cordial to business and life. and fewer trade barriers. 24 Web-wise 14 Lee Ting: a spirit of adventure MEASURE's own Dr. Cyberspace HP's "quiet leader" begins a new international takes a trip down E-mail Street and chapter in his career as managing director of offers some hints on how to man Page 14 Geographic Operations. age that crowded thoroughfare.

18 Wonder world of medicine 26 Letter from Lew Platt With an assist from HP, the Connecticut HP's chairman, president and Children's Medical Center provides a wonder CEO explains the reasons behind world of medicine. the company's new profit-sharing formula.

28 ExtraMEASURE ews from around the HP world.

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MEASURE

Editor: MEASURE is published in mid-January, March, May, July, September and November for employees and associates Jay Coleman, ABC* of Hewlett-Packard Company. It is produced by Corporate Communications, Employee Communications section, Mary Anne Easley, manager. Address correspondence to MEASURE, Hewlett-Packard Company, 3000 Hanover Street, Associate editors: 20BR, Palo Alto, California 94304-1185, U.S.A. The telephone number is (415) 857-4144; the fax number is (415) 857-7299; Betty Gerard, and the Internet address is [email protected]. Mary Anne Easley

Art director: CCopyright 1996 by Hewlett-Packard Company. Material may be reprinted with permission. Annette Yatovitz *Accredited Business Communicator by the International Association of Business Communicators (lABC).

Graphic designer: Hewlett-Packard Company is a global manufacturer of computing, communications and measurement products and Thomas J. Brown services recognized for excellence in quality and support. HP has 110,800 employees worldwide and had revenue of $31.5 billion in its 1995 fiscal year. Photo research: Carol Parcels UNIX is a registered trademark in the United States and other countries, licensed exclusively through X/OpenTM. Circulation/editorial assistant: X/Open is a trademark of X/Open Company Limited in the U.K. and other countries. Tena Lessor Windows and Microsoft are registered trademarks of Microsoft Corp. Intern: Grace Razo *MEASURE magazine is printed on recycled paper with vegetable-based ink.

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By Grace Razo

he sign president and general posts are manager ofthe Com T clear: The puter Organization. Internet is the busi HP's approach to the Inter est, craziest and most net has three prongs. First, important highway on Earth develop the technologies and today-and Hewlett-Packard services to enable businesses to use is revving up its engine to hit the the Net to conduct commercial trans Internet road in high gear. actions. Second, extend HP's leadership Amidst all the Internet hype and in printing and imaging to allow people to hoopla, HP has reacted in classic HP fash- use the Internet to transmit, store and print ion. Rather than honking its own hom about images ofphotographic quality. Third, capi HP's Internet activity-and there's plenty-HP talize on the company's expertise in network has waited to make its presence known. measurement and management to enable service "HP is moving into the Internet with the focus and providers to guarantee the quality and response of speed of a much smaller, younger company," says Ezra Internet-based services. Gottheil, senior analyst with Hurwitz Group, Inc. "It is But with Web technology moving in the fast lane, how incisive; it has identified the key growth areas and critical can HP keep pace with the Internet's 200-mile-per-minute obstacles to success; and it is addressing them." rate of change? This is one of the biggest challenges HP In fact, virtually every HP organization is working on faces today, admits Bill Murphy, director of HP's Internet some type ofbetter, fancier, quicker Web gizmo or gadget marketing. that will enhance the Internet in some way and be com "The problem is that the Internet is a marathon running mercially viable. at sprint speeds," Bill says. "As a company, we have to As the pioneer and undisputed leader in open client! move very quickly. But rest assured, this isn't like the CB server solutions, HP now is building on that position. Ironi radio or the hula hoop. The Internet is serious business." cally, Joel Birnbaum, HP senior vice president-R&D and On the following pages, MEASURE brings you a glimpse director of HP Labs, has been talking about the "informa of HP's emerging Internet role. Look for HP Internet tion utility" for years, and now it's here-it's the Internet. updates in future issues ofMEASURE and on the Corpo "I fIrmly believe we can deliver the industry's leading rate Communications Web site at http://hpweb.corp.hp. Internet solutions for businesses and consumers, based comlPublish/cc. on network printing and scanning, secUlity, manageability For now, fasten your seat belts and take a passing and scaleability," says Rick Belluzzo, HP executive vice glance at HP's Internet experience. It'll be quite a ride.

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www.HPARCHIVE.com r------ROAD IMPROVEMENTS

~ at work (or anywhere else, for that matter), I can program my VCR, watch my children play or leave a AHEAD note for my wife on the refrigerator door." (A computer screen is mounted to the refrigerator, which "posts" the message.) Chandra further explains that the information furnace is an unseen utility like the heating furnace, but it HPs Internet architecture emits information instead of heat. BRISTOL, England-Like a civil engi Moreover, because it is connected to neer constructing a grand thorough the Internet as well as to communica fare, Dave Raggett keeps a detailed tion networks within the home, its eye on Internet blueprints. information can flow anywhere there Dave, an engineer at HP Labs is a Web browser. And because it's Bristol, is a visiting scientist with the always on, it can be accessed by World Wide Web Consortium (W3C), people in different (sometimes very an organization that works with different) time zones. industry leaders to develop Internet When Grandparents Venkatraman standards.Without these agreed-upon in Trichy use their Web browser to industry standards-Internet protocols Bridge to the future access Chandra's "home page," type -computers could not "talk" to each PALO ALTO, California-Chandra a password and click on the camera other as they do now. Venkatraman, an HP Labs engineer, icon, they see real-time pictures of In addition, Dave is the author of doesn't allow the distance challenge their granddaughter in California "HTML 3 - Electronic Publishing on 8,688 miles (13, 982 km)-to interfere because Chandra has hooked up a the World Wide Web," and lead archi with maintaining close ties with his camera in her room to the informa tect of W3C's HTML activity. HTML family in Trichy, India. Chandra tion furnace. hypertext markup language-is the bridges this distance using the Inter Based on technologies being devel standard used to translate information net in a particularly personal way. oped at HP Labs, Chandra predicts into the nicely designed Web pages He has equipped his home with a real that HP one day will be able not only you view through your Web browser, "home page": a home-based Web site to bring the Internet to every home, such as Netscape Navigator 3.0. implemented in an HP innovation but also to reach into every home and Like everything else Internet, con dubbed the "information furnace." its appliances. The information fur tinued HTML developments will refine The information furnace-a com nace will become standard equip and enhance the existing standard set bination of an HP Web server and a ment, just like a heating furnace. by W3C: HTML 3.2, based on Dave's residential gateway with a local high "Being an engineer, I find this work as editor. And when Dave isn't speed connection to the Internet-is fantastic development oftechnology working on enhancements, he keeps an idea generated for the home by HP thrilling," Chandra says. "Being an busy with plenty more Internet Labs in Palo Alto, California. Chandra HP employee, I'm motivated by the related activities-speeches, commit has hooked up a variety of home prospects for HP to develop vast new tees, publishing-which you can learn appliances to the information furnace, businesses in the home. Being a son about at http://www.w3.orglpub/ which delivers the Web pages and can and a father, I have no greater enjoy WWWlPeople/Raggett. Also, the be reached from the Internet. ment in life than sharing the joys of W3C's ongoing Internet work can Chandra explains, "The informa family life and traditions between be found at http://www.w3.orgl tion furnace connects the home to the generations, even halfway around publWWW.• outside world by passage through the the world." • Internet. For example, from a browser

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controlled and secured access to an institution's internal "intranet" of computers. Virtual Vault is based on a product co-developed by HP and SecureWare, card-sized "electronic wallets" that a small company whose products can be loaded with funds from per have helped preserve on-line security sonal accounts and used such as debit for the U.S. military since 1988. This cards), network-management prod year, HP bought the core technology ucts such as HP OpenView and e-mail behind Virtual Vault, and more than technology such as HP OpenMail. 40 SecureWare employees joined HP's Dennis believes conventional Cyber security new Internet and System Security Lab banks with a large customer base Money and the Internet: They're both in Atlanta, Georgia. SecureWare con have a signifIcant opportunity to both hot. So what's taking them so long to tinues to develop computer security cut their costs and offer customers an get together? The answer is "security," software and is a software value array of new, convenient and security and the solution just might be HP's added reseller to HP. Virtual Vault enhanced banking services. In addi Virtual Vault. also incorporates an on-line banking tion to the United States, some ofthe Launched in September, Virtual customer interface developed by hottest markets for Virtual Vault are Vault gives banks and other fmancial Atlanta-based Five Paces, Inc. Australia, Hong Kong, Spain, Scandi institutions an unprecedented level of While transaction technology has navia and Singapore. Regulatory system security that could revolution been available on the Web for years, barriers are dropping worldwide as ize the retail financial-services industry security has been a larger problem. well, as traditional banks and newer -and secure a sizeable sum of cash "People like banks because they see fmancial-services companies start to forHP. them as safe places for their money," offer competing services. Security First etwork Bank, the Dennis says, "while the Internet "Right now there's a great deal of fIrst full-service United States govern appears to be a very unsafe place, consolidation in the financial-services ment-insured bank to operate exclu especially for financial transactions." industry," says Dennis. "But every sur sively on the Internet, opened its HP knew customers were hesitant viving bank will, probably in the next virtual doors in October 1995. Last to provide a full range of fmancial three years, offer its customers an June, The Huntington National Bank services on-line largely because of Internet solution. We're showing Vir also introduced a Web-based bank. security concerns. tual Vault to banks allover the world. Both use HP's Virtual Vault. "Many institutions offer 'home All ofthem care about security, and "Security is the banking industry's banking' services that require cus we have the pre-eminent security No.1 problem," says Dennis Roman, tomers to use a fairly limited software product in the world. Naturally, director of banking and financial product on their home pes," Dennis they're very interested in HP." markets for HP's Financial Services says. "True 'Internet banking' lets How safe is Virtual Vault? Secure Business Unit. "The security behind customers use a World Wide Web Ware tested the system on a team of Virtual Vault provides the solution." browser with confidence to do their computer-security experts before Existing security systems sit on top banking any time and anywhere in the Security First began operations. Since of an operating system-like AmiPro world. And HP technology gives the the bank opened, the system has been sits on top of Windows®. HP's Virtual fInancial-services industry an oppor tested again-this time by a small Vault is the operating system and, tunity to offer a broader range of number ofwould-be on-line bank rob through a complex array of software security-enhanced services on-line, bers. In every case, the vault stayed "guards," provides customers with including insurance, securities trading securely locked. • an unprecedented level of carefully and other investments." HP will integrate the Virtual Vault technology with other products and services, such as smart cards (credit-

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order flowers from a local florist, check out the local theater listings and participate in a local town-hall meeting. The information-sound, video and multimedia data-is piped directly to PCs through a hybrid flber-coaxial cable to a cable modem in the home. The link deflnitely is faster than Merging lanes standard dial-up telephone lines. NEW YORK-HP does more than pro Just how fast? Downloading a duce and peddle Internet products. It 10-megabyte video clip using a also globally shares this information 28.8-kilobyte-per-second modem technology. takes about 46 minutes. With a cable HP and the United Nations Devel modem, download time is 20 seconds! opment Programme (UNDP) have And with cable, users always are agreed to work together to help build connected when they turn on their an information and communication A speedy solution PCs. There are no dial tones or network in 16 developing countries AKRON, Ohio-Like any popular thor dial-up numbers. around the world. oughfare, the Internet has its problems HP's BIDS system, which can In the flrst phase ofthe multiphase, with snarls and rush-hour traffic. service up to 100,000 users, runs on a multiyear agreement, HP has donated However, HP is one of the "drivers" series of HP 9000 platforms. It enables a wide range of computing equipment, in a high-speed solution called the cable operators, telephone companies including HP Internet hardware, to Broadband Internet Delivery System and utilities to bring Internet access the UNDP's Sustainable Development (BIDS). and interactive services to their Networking Programme (SDNP), a After a 500-home test run in Elmira, subscribers. • non-proflt, global communication New York, in August 1995, BIDS set initiative. Mexico and China will be a land-speed record in September the flrst countries to beneflt from when HP, Time Warner, Motorola and this agreement by receiving HP Microsoft® introduced the new cable technology and support for their service to thousands of residents in SDNP projects. • the Akron, Ohio, area. Time Warner, the second-largest U.S. cable company, calls it Road Runner-a high-speed, on-line sub scription service for home PCs. Using HP technology, Road Runner lets users do many things on-line, such as access library books electronically,

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L _

King of the road Lately, pundits have been referring to Microsoft as the industry's "800-pound ment Organization that connects to all gorilla." Apparently, they haven't types of networks-LAN, WAN, fast heard about HP's own great ape: the Ethernet and ATM. A protocol is an HP 9000 server platform. industry agreement to use a consis Servers-computers dedicated to tent standard, especially for computer the role of serving data-can store, to-computer communications. retrieve, process and deliver infor A sense of direction "A protocol analyzer," explains mation. Whether it's for electronic Often, there's no escaping a "fatal Mike Cunningham, marketing manager commerce, marketing or on-line pub error" when travelling on the Internet. in the Communications Test Solutions lishing, many of the world's largest (But don't worry, you'll survive.) Group, "checks to see that everyone companies-3M, Eastman Kodak, You've probably experienced some is behaving according to protocol. If McDonnell Douglas, Pepsi Cola-are of the common ones yourself: Error, someone doesn't follow the rules, or using some type of HP 9000 server as Error 500 or Error 404, depending on ifcomputers aren't speaking the same their Internet solution. your server. These errors-displayed language, a communication problem Browser-giant Netscape uses the as a message on your computer screen occurs. Anything the size of the Inter HP 9000 Model D400 four-way Enter -indicate some kind of network net is bound to have misunderstand prise Web Server to service its home glitch. It could be as simple as typing ings and failures to communicate, but page, http://www.netscape.com. the wrong URL (universal resource a protocol analyzer enables a techni And wow-can this animal perform! locator) or as complex as a connectiv cian to trouble-shoot the problem a In a five-day test performed by HP ity problem somewhere out in server lot quicker and easier." and Netscape in July, the HP 9000 land. Until the problem is solved, it You might say that without the server handled more than 15 million means computer downtime and Internet Advisor, many ofyour hits a day, making it one ofthe highest human frustration. But ifHP's Inter future Internet road trips could end performing single systems currently net Advisor comes to the rescue, in your driveway.• running on the Web site. you'll be back burning the Internet The HP 9000 family is full of brawn, blacktop in no time. and plenty ofbrains-high-performance, The Internet Advisor-a portable scaleability, reliability and availability. and flexible device "bristling with And the HP 9000 K460 one-way server connectors"-is a protocol analyzer is the industry's fastest Webserver in developed by the Test and Measure- its category, performing 801 connec tions per second. In other words, the HP 9000 performs like the King Kong of servers. Learn more about HP's high-powered anthropoid at http://www.hp.comlgo/internet.•

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working on the Avon project, says, "We wanted to gain an understanding ofwhat our customers value and give them what they want." And HP customers want to give What you see... potential shoppers a convenient way BOISE, Idaho-When Joharmes to purchase their products. Avon's Gutenberg invented the printing press fIrst shopper wanted to buy a picture in 1428, he concentrated on punch postcard from a company that had cutting and stamping metal to make Park your business here been open only 40 minutes! Jian moveable type. Today's printing BRISTOL, England-You didn't see a admits, "We knew the Internet busi issues have nothing to do with metal traditional ribbon-cutting ceremony ness park concept was big, yet we working and manual presses, but or hear the pop of a champagne cork. were still surprised by its magnitude everything to do with HP LaserJet Nonetheless, it was an exciting day as it unfolded." printers and Web printing. for HP Labs Bristol engineers who cel Be on the lookout for future open Although printing has been an ebrated the opening ofthe Avon Inter ings ofmore business parks-currently afterthought to the initial Web craze, net Business Park by watching the under construction-in the United HP has been actively pursuing Web ftrst credit-card transaction "fly by" Kingdom to be managed by HP's printing improvements. One of the their screens. Worldwide Customer Support greatest complaints of Internet users The Avon Internet Business Park is Operations. • is WYSIWYG (What You See Is What an experimental virtual business com You Get) when printing from the plex with more than 32 tenants from Internet, a problem HP has vowed the district ofAvon, England, located to solve. at http://www.avonibp.co.uk/. In a printing partnership with Like concrete and steel business Microsoft, HP has developed an structures you'd fmd on Wall or High extension to HTML (hypertext Street, Avon comes equipped with an markup language) that will allow administration office and site security. users to have more control of Web This park, however, is monitored printing. Much like the Internet itself, by engineers in Bristol from an Web printing has a mind of its own. HP 9000/710 HP-UX workstation Haven't you ever had a subhead linked to a main server inside Labs. appear in the middle of a page when By working with the business commu printed-the last place you ever nity, HP has experienced fIrsthand the expected or wanted it? This new demands of an electronic commercial HTML extension ends this problem environment. Jian Azari, an engineer

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by allowing the Web document to be formatted with page breaks. In addition, HP and Microsoft sub photo-quality depending on their mitted a proposal in September to the printer's capabilities." World Wide Web Consortium (W3C) IPG expects that the Imaging -astandards body for the Internet for Internet project and the FlashPix to standardize the extension for standard will lead the next generation industrywide usage. of Internet-based printing. "Profes HP's continuous efforts to develop sional publishers and consumers have Web printing solutions, such as the been waiting for the Internet stand ability to print one page of a multi ards to get even close to print photog page document, also include a part raphy," Blake says. "The Imaging for nership with Netscape, one of the Internet project will make that happen." biggest players on the Web today. And with the ever-improving qual As printing improvements evolve Say"cheese" ity of HP's printers, images worth and the Internet continues to gain Ifa picture's worth a thousand words, more than a thousand words are on girth-more than 35 million users to today's Web photo is barely an adver the way. M date and growing-there are ongoing tising slogan on a billboard. HP's opportunities for HP to remain the Imaging for Internet project aims to (MEASURE intern Grace Razo is leader in the printer market. change that. majoring in communication at E-mail and the electronic world "While there are literally millions Santa Clara (California) University. seem to generate more things to print, ofphotos available on the World Wide Kevin O'Connor, managing editor of which means hardcopy and paper are Web, users can view and print them HP's Corporate Communications not going away. Contrary to what only at very low resolution," says Web site and Financial Online on some people may think, it doesn't Antonio Perez, HP vice president HP's external Web site, also con appear that this will ever be a paper and general manager of the Inkjet tributed to this section.-Editor) less society. Roberta MacMillan, soft Products Group (IPG). ware development engineer in the In September, HP and Live Picture Connectivity Lab ofthe Business announced the Imaging for Internet LaserJet Division, agrees. "As HP con project, which will allow Internet The ride continues... tinues to make improvements in Web users to easily and quickly view, print We hope you've enjoyed your printing, more people will want to and save photo-quality images on the "test drive" on HP's Internet print from the Internet. And the more Web. The project is one ofthe flrst highway. Of course, the Internet people print, the more they'll use implementations of FlashPix, an is a road that changes daily HP printers." • award-winning photo-imaging format hourly, in fact; this section is co-developed by HP, Eastman Kodak, merely a snapshot of how the Live Picture and Microsoft. road looked at one moment in "HP is giving away a piece of soft time. ware, called a browser 'plug-in,' that For up-to-date information allows users to interact with FlashPix about HP's role on the Internet, images stored on Web servers," says including an Internet event in Blake Miller, Internet hardcopy man December, check Newsgrams ager for IPG. "FlashPix and the Imag and the Corporate Communica ing for Internet solution let a user tions Web site at http://hpweb. quickly zoom in on an image to see corp.hp.comIPublishlcc. details. They can then save or print a high-resolution image, even up to

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www.HPARCHIVE.com Limited office space means Fernando Mollon (center), telecom field manager, and Victor Derbapyan often meet customers at a cafe. Finding 01 in the land of silver For HP Argentina, 1991 was By Betty Gerard "The environment for us has been absolutely different since 1991," Hugo aturning point, with a new BUENOS AIRES, Argentina-Silver says. Privatization meant new cus government that is cordial is the word for Argentina (from the tomers for HPA in the electricity, to business and fewer Latin argentum) and the great river telephone, railroad, gas and oil indus Rio de la Plata (from the Spanish tries. The down side of moving to trade barriers. plata) that borders Buenos Aires. But more efficient private companies is 17 HP Argentina (HPA) has been mining percent unemployment in the country. gold for the past five years-enjoying And 1991 also marked the formal a tenfold growth in sales and added start of the Mercosur, a regional pact visibility in the country. that toppled most ofthe trade barriers The turning point came in 1991, between Argentina, Brazil, Paraguay says country manager Hugo Strachan. and Uruguay. (Chile and Bolivia have A change in government that year since joined.) The Mercosur brought brought a dramatic change in busi in new factories and businesses that ness opportunity, with privatization invested in technology. of many state-owned industries, open HP has raised its profile by Hugo's ing ofborders and an end to devastat active involvement in high-level busi ing inflation. ness groups. The tumultuous days of 10,000 Buenos Aires, where HPA is located, percent inflation, changing daily, left is the most European and sophisticated a mark. "Everybody's an expert on of cities. La pampa, the immense land financing," Hugo says. of the gauchos, produces the beef and other agricultural exports that are a

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mainstay of the country's income, but Buenos Aires is the year 2000." With IBM still a formidable presence in the center ofpopulation and business activity. Located on the country, with annual sales of around $550 million, it's Rio de la Plata, the world's widest river, it is a major port, admittedly a stretch goal. and residents call themselves "portenos." Leading the way in HPA's healthy sales growth are hard In 1984, HPA built a handsome six-floor building (the copy and personal information products (formerly the maximum height permitted on the site) in the Belgrano Computer Products Organization, and the CPO designation section. It had more space than needed at that time, so two still lingers). They make up about five-sixths oftotal HPA floors were rented to other firms. sales, with PCs and DeskJet printer sales growing explo Today, the building is at near capacity, with an employee sively. HP moved up to No.1 in PCs in Argentina this year, count headed toward 200 as the Computer Systems Orga topping IBM and Compaq. nization makes a major investment in Analia Remedi has served as CPO personnel. HPA began occupying the manager since the seminal year of entire building on November 1, and BOLIVIA 1991, when HPA formed a new CPO even that won't be enough room. team. When she was asked to shift To the North American visitor, the PARAGUAY from import-export to sales, she hesi atmosphere at HPA is an engaging tated. Former HPA country manager mix of cordiality and brisk profession- Rui da Costa, now general manager of BRAZIL alism. Argentina has attracted a large ARGENTINA the Latin America Region, told her, Spanish and Italian populace, and an "It's a mistake not to take it. You're easy Mediterranean warmth is appar- URUGUA going to get as far as you want to go." ent. Both men and women greet a Buenos His prophecy proved right. Analia Aires friend with a light kiss on the cheek. CHILE has focused on building strong chan But business is serious. Sales teams nel relationships, with training and put in long, intense hours at their advertising to support them. desks, and a cellular phone and "For a consumer market, you need portable computer connect them to to be close to the market," Analia the office when on a sales call. In says. "For your channels, you must Latin America, the selling process have clean, clear policies for doing means taking time to establish a business: no surprises, absolutely friendly relationship-and a long shuaia. honest." negotiation period. She recognizes that she's unusual The coffee room is a central gather in Latin America as a woman sales ing place for camaraderie and Hugo About Argentina executive, but would like to shift the Strachan's all-employee meetings. In • Second-largest country in attention "to results, not to my being a 1991, he unveiled a mission statement South America in size and popu woman." She developed PC ads that that seemed ambitious: "By 1995, lation. 1.1 million square miles appealed to parents who wanted the reach the second position in the (3.8 million square kilometers) best for their children through educa Argentine computer-equipment mar in area-about one-third the size tion. One featured HP products with ket." (By 1994, it was a reality.) In ofthe United States. "another famous HP family": the quin 1992, the goal was to "achieve $20 • Capital: Buenos Aires tuplets born to HPA engineer Martin million." (By 1995, orders were more Ryberg and his wife, Victoria. • Long and narrow: barely 900 than $100 million. ote: The Argentine In 1993, PCs made up only 5 per miles (1,450 km) from east to peso is pegged 1:1 to the U.S. dollar.) cent of HPA's total sales; today they west at widest point; about 2,300 And the 1996 mission? "Lead the are more than one-third-even with miles (3,700 km) in length. Argentine computer market in the out the Pavilion PC line, which is not • Ushuaia, capital of Tierra del sold in Latin America. Fuego province, is the farthest Professional Services Organization point south in the world. (PSO) manager Ricardo Rodriquez

12 MEASURE

www.HPARCHIVE.com says Analia "helped buy mind-share for all of us." Ricardo has worked for HP in two other countries and characterizes Argentina as more formal than the Caribbean in dress but with close interpersonal relationships. "Most of our customers like us as friends," he says. "They trust us and they'll often ask us to validate what some other company is doing for them-the way you might ask a friend to go with you to buy a car." In Argentina, PSO is completely integrated into sales teams. It concen trates on such technologies as net working, UNIX® system architecture and the Internet, and cooperates with partners in other areas. "In most of Analia Remedi, CPO manager in Argentina, works in her home office while daughter the big deals we won last year, we Carolina, 2, observes. Analia has led the drive that made HP No.1 in PC sales in Argentina. teamed up with someone else. Cus tomers like this," he says. Telecom and banking are important America. In Argentina alone, that Support also leverages its efforts industries that HPA has penetrated, means a territory that in North America through third parties. When the Banco along with other big deals with would stretch from Cuba to Hudson Rio wanted Windows T installed in such companies as the giant utility Bay. It's a 5 1/2-hour flight from its 180 branches and customized to Edesur and Acindar, a metallurgical Buenos Aires to service natural-gas each user, PSO worked with other manufacturer. analyzers in oil fields in Tierra del Test and Measurement also has Fuego at Argentina's southern tip. profited from the privatization of HP has a strong position in the telecom, says TMO manager Ariel chemical-analysis market, ranking Speratti. The proliferation of cellular No.1 in Argentina. Agriculture is an 'The environment for us phones-a common sight on the important market, since Argentine has been absolutely different streets of Buenos Aires-has provided meat processors need high-end sys since 1991." new opportunities. HPA also is uniquely tems to adhere to strict export regula positioned to supply the calibration tions for the country's famous beef. • services that customers need for CEO Lew Platt, visiting in March vendors to complete four to six ISO 9000 certification. for his second trip to the country but branches each day. Jose Di Fabrizio, In Medical ProdUCts, "HP's biggest his first as CEO, was impressed with support manager, says, "We have to competitor is HP: used HP equipment what he saw. provide the brain." A response center sold out of Miami by a vendor," says "Argentina has such energetic, also is on-line to provide remote sup sales rep Javier Libre. Competing with enthusiastic and well-educated peo port to anxious customers. used equipment is a unique Latin ple," he said. "I've always felt that One challenge for HP's Computer American problem, he says. "Our with a stable economy it would really Organization was that Argentina had economy looks for good things at a take off and emerge as one of the the biggest mainframe penetration cheap price, and HP's equipment can powerful countries ofthe world." in the world; UNIX systems and be very old but still continue to work." In HP's book, the land of silver is clientJservers were unfamiliar. That Daniel Escati, Chemical Analysis proving to be pure gold these days. M is changing. support manager, covers all of Latin

November-December 1996 13

www.HPARCHIVE.com •

Lee ling: a spirit of

In an HP career of nearly 30 years, Lee Ting has excelled at breaking down international adventure barriers and establishing new business relationships, particularly in the Far East. HP's "quiet leader" begins By Jean Burke Hoppe October as senior vice president and managing director of Geographic a new international chapter Ask anyone at HP about Lee Ting and Operations after 32 years with HP. in his career as managing one of the first words they will use to "He's not a high-profile, in-your-face director of Geographic describe him is "international." manager. He's thoughtful and sophis In his nearly 30 years with Hewlett ticated. That style has fit in particu Operations. Packard, the vice president and new larly well in the international business managing director ofGeographic Oper setting, where HP has always tried ations has made a career of breaking to delegate a lot of business responsi down international barriers, helping bility to local people and managers. A to make HP and the HP Way recog more directive style just doesn't work nized and valued throughout the world. internationally." "I think of him as a quiet leader," Jennifer Lam, Lee's executive assis says Alan Bickell, who retired in tant in his previous assignment as vice

14 MEASURE

www.HPARCHIVE.com president and managing director of Asia Pacific, also sees Lee's delegating ability as one ofhis biggest strengths. "He spends plenty of time giving you background and spelling out his expec tations-and not always because you've asked him to! He makes himself avail able for consultation and advice." "He's a great team player," Alan says. "He's demonstrated his leader ship working with HP's businesses in Asia Pacific, especially in China, the past few years." In his new job, Lee will continue to pursue international opportunities for HP, protecting the company's invest ments in its existing markets and looking for opportunities in emerging markets in Latin America, Central Europe and parts ofAsia. Geographic Operations also provides a unified infrastructure for the businesses in the Americas, Asia Pacific and Europe, contributing to the company's overall financial success. In short, he'll repre sent the international perspective on the management team, carrying on the struggle to make HP a company that thinks and acts globally. He is well suited for the challenge, with a life time of global experience and a broad view of the world. Lee "makes himself available for consultation and advice," says Jennifer Lam, his former executive assistant, with whom he strolls through a Hong Kong business district. His very roots are international; by age 8, Lee had called four countries home. He was born in 1942 in Chung The Tings then moved to Brazil in He joined the company in 1965, king, China, during the Japanese War. the early '50s, where land, work and fresh from Oregon State, as a develop His father was managing an ordnance resources were plentiful. After a ment engineer in what was then HP's factory there for the government. 70-day voyage on a freighter, the fam Frequency and Time Division in Palo After the war, the family moved back ily settled in Sao Paulo, where Lee Alto. It took only a short time for to Shanghai and then to Guam, where attended school through his first year him to make a move into marketing. his father was in charge of the trans of college. He then received a scholar "Designing circuits," he says, "was fer ofwar surplus materials in the ship to study electrical engineering at clearly not my thing." Pacific. By then, the People's Repub Oregon State University. He is fluent In 1970, at age 27, HP asked Lee lic of China had been established in in Chinese, Portuguese and English to set up a subsidiary in Taiwan. "I Beijing, and his father chose to retire and has used them all in his long and said, 'What?! I've never even been to his rank as general and move the fam colorful HP career. Taiwan.' But my wife and 1were ily to Hong Kong instead of Taiwan. young, adventurous and maybe a little naive. Even though we had a six-

November-December 1996 15

www.HPARCHIVE.com Lee ling

month-old daughter, we decided Indonesia, Australia and the Philip Lee left HP twice, once to work as togo." pines. He negotiated a complexjoint a manufacturing manager for a small He remembers it now as a highlight venture with Iochpe in Brazil and disk-memory start-up company, and of his career. Taiwan, in those days, helped negotiate HP's flrst manufac later to join San Francisco-based was still under martial law. "Taipei," turing plant in Mexico. Hambrecht & Quist, a high-tech says Lee, "was a very provincial city. Another career highlight for him venture-capital firm, as senior vice Everything was tightly controlled. It was accompanying Bill Doolittle, then president for Asia. "I wasn't unhappy was much more restrictive than China senior vice president-International, to -just a little bit restless. It was my is today." China in 1972. way ofbroadening my experience, Lee has since set up many other "I wasn't sure what they would fllling in what I thought I needed." businesses and operations for HP, but make of me as a native of China with Alan Bickell, who jokes that he never "one so much from scratch. It spent half his life getting Lee back, was me, one sales manager who was says that everything Lee learned really a factory guy, one service man outside of HP about manufacturing, ager and a telex machine. We didn't flnances and investments-"truly the get any house-hunting trips or orienta equivalent of an MBA in the school of tion sessions like today's foreign hard knocks"-has been useful to HP service employees do. We literally in the long run. packed our bags and jumped. It was a Now, at age 54, Lee is starting a good experience and a lot of fun." new adventure that will take him to He went on from there to manage even more parts ofthe world. He and what was then called the Far East his wife, Helen, are happy to resettle Region (FER), flrst from Singapore in their Hillsborough home. Their and then from Palo Alto. "In those daughter, Christina, "who proved days, because of the cost of travel and she's got a little of my adventurous the problematic logistics, you would spirit in her," works for a start-up travel for three to four weeks at a company in nearby San Carlos. Son time. That's when we started setting Michael works in investments for up HP sales subsidiaries in Singapore, Barclays Group in San Francisco. Malaysia and Hong Kong, and working Lee's and Helen's mothers, both near out distributor relationships with 80, also live in the Bay Area. Samsung in Korea, Berca in Indonesia Lee's looking forward to new chal and Blue Star in India. Those are still a U.S. passport," Lee says. "There lenges and to taking HP even further important relationships to HP." were no diplomatic relations then. internationally. "In setting up HP busi After stints as general manager in "China was still in the midst of the nesses around the world, I have found the Southeast Asia manufacturing Cultural Revolution. The men and again and again that the HP Way is so operation and G.M. ofwhat was then women looked the same, all dressed fundamental to human behavior that Systems Remarketing (the precursor in their blue and gray Mao uniforms. it doesn't clash with any culture," of today's Direct Marketing Opera There were no cars on those wide he says. "People everywhere fmd • tion), Lee eventually settled in as avenues. People were afraid to talk to it acceptable. Next, they begin to business development manager for us. We were some of the flrst people admire it. Finally, they become inter Intercontinental Operations, which from the West to get into Beijing." ested in emulating it. When you managed HP's business in Canada, It was those early trips, along with achieve that kind of recognition, you Asia Paciflc and Latin America. There Dave Packard's strong relationship are successful." M he continued to make his mark in there, that gave HP the contacts it "internationalizing" Hewlett-Packard, needed to set up a presence in China (Jean Burke Hoppe is a Lincoln, appointing distributors and joint in 1981, and eventually form the first Nebraska-basedjreelance writer. venture partners in China, Korea, high-tech joint venture in China in '85. Editor)

16 MEASURE

www.HPARCHIVE.com YOUR TURN

Location, location, While I do know that every case is give some praise. Also, I would sug different, I am concerned that your gest keeping MEASURE in a hard location article may unnecessarily panic an copy format. Thank you for highlighting remote employee who experiences those sort Thanks for your great work! work arrangements in the July-August of symptoms. JIM HECKEL MEASURE (Finding workllife balance: ABBY GROSSMAN Greeley, Colorado the portable job). More than 800 HP Mountain View, California employees choose to live and work in one location but report to another Thank you, HP Grace Razo, MEASURE intern and I appreciated the article "One day at location many miles away. In addi writer ofthe Amy Mott story, replies: tion, there are thousands of employ a time" by Carl Dawson in the July MEASURE's reliable sources agree August MEASURE. I agree that HP ees who report to managers based in that every kidney cancer is unique; other locations or who are mobile a plays an important role in the health therefore, it's unwise to make gener care process. significant percentage ofthe time. alizations. However, there are some Many tools have been developed I have been battling metastatic can prevailingfacts and opinions. cer for the past five years. During that for these kinds of situations. A good Just as every case is different, place to start is the Future At Work time, I have been on and off medical so are the types ofkidney cancers. disability several times with opera library Web site at http://danton. One type-renal-cell carcinomar grenoble.hp.com/fawlibl. tions, radiation and chemotherapy comprises 80 percent ofkidney treatments. The benefits that HP pro People considering a "portable" job cancer cases. It's caUed "curable" with arrangement also should check with vides are wonderful, and the people at kidney removal, as in Amy's case. the Disability Service Center have their manager and personnel contact But this doesn't mean she or other for guidance. been very helpful. patients are homefree. Experts told Thank you, HP. JERRY CASHMAN us ofa case where a patient's kidney HP Work Options DONALD HUISMAN cancer returned 17 years after kid Cupertino, California Palo Alto, California ney removal and ofan extreme case in which a patient died within six Unnecessary panic? months ofdiagnosis. I read with great interest the story As Carl Dixon, executive director Please send mail about Amy Mott and her bout with a ofthe u.s.'s National Kidney Cancer Do you have comments about tumor of the kidney. My mother had a Association, says, "You would do something in MEASURE? Send kidney removed due to a tumor, and your readers a tremendous disser us your thoughts. Ifwe publish so the story touched me personally. vice ifyou say kidney cancer is your letter, you'll receive a However, I'm concerned that the 'typically notfatal. '" MEASURE T-shirt (one size article may have overstated the risks fits most). of the disease. My mother found she Taking a beating Send your comments to Edi had it in the usual way-she noticed This weekend I read the September tor Jay Coleman (the fax num bleeding and went to a urologist. October MEASURE, and by the time ber and address are on page 3). However, the urologist and two sur I was through, I had several pages Please limit your letter to about geons all told us that kidney cancer clipped out for direct applicability to 150 words, sign your name and typically is not fatal. It does not my job! "Leading the climb" and the give your location. We reserve metasticize very fast, and the urinary "Letter from Lew Platt" were exactly the right to edit letters. tract bleeding usually happens long what I was looking for in terms of before the cancer spreads. My moth working on FY97 plans. er's urologist said that her condition Given the "beating" that this publi was serious but not life threatening. cation took in the Your Tum section, I thought it would be appropriate to

November-December 1996 17 ======----:www.HPARCHIVE.com IN FOCUS Wonder world of medicine HARTFORD, Connecticut-It has been described as a scene from The Jetsons-a popular TV cartoon show in the United States-plunked down in the middle of Connecticut. But for many children, the Connecticut Children's Medical Center is a place of hope-a place that could mean the difference between life and death. The new 8-story, I38-bed medical center, opened April 2, combines the former Newington Children's Hospital and the pediatric departments of Hartford Hospital and the University of Connecticut Health Center under one roof to form a comprehensive, state-of-the-art medical facility devoted solely to children. Walking into the building is like entering a colossal toy box. A lumi nous sphere looms above the main entrance like a crystal ball. What looks like an upside-down ice-cream cone sits at the emergency entrance. above Young patients puzzle over the unique The Connecticut Children's design ofthe facility as they go inside Medical Center was creatively and forget about being afraid. designed to provide a soothing, Inside it's a miniaturized world. child-friendly environment. Patient rooms have child-height sinks left and counters. Anesthesia comes in Above the admitting area, bubble gum and pizza scratch-and colorful figures called "puppets" sniff scents. welcome young patients. The Wandering the halls, you see bright, University of Connecticut's fine arts department created the radiant yellows, reds and purples on display, titled "Making a Smile." walls, chairs and signs. Throughout the medical center, HP right equipment is on the job. HP patient Manny Story, 7, carries his monitoring systems collect patients' hockey gear everywhere, even to receive treatment from vital signs, such as heart rate and registered nurse Caryl Donovan. blood pressure. HP etserver system To the right is an HP OmniCare and Vectra PCs run the medical cen component patient-monitoring system. ter's entire computer infrastructure, visible in the nurses' stations and admitting area. On the following pages, peek into this wonder world ofmedicine. M -Tena Lessor

18 MEASURE

www.HPARCHIVE.com

Wonder

above above HP Medical sales rep Sherry A mother uses a quiet corner Page explains the functions of of the medical center atrium to the patient-monitoring system read her children a book about to Thomas Mooney, a patient what it's like when you go to care assistant. the medical center.

right Instead of using a gurney, young patients can drive themselves to the operating room in toy cars.

20 MEASURE

www.HPARCHIVE.com above Visitors can see bright and colorful artwork for and by children throughout the facility. These "puppets" help brighten the admitting area. top Amy Sherwill (left), corporate account rep, talks with nurses in the pediatric intensive-care unit. left "Bob," the medical center teddy bear, rides the halls in a little red wagon, hoping to get hugs from young patients.

November-December 1996 21

www.HPARCHIVE.com PEOPLE

A competitive spirit propels HP Turkey A former semi-professional basketball player, Aysel Ozal now G.M. Aysel Ozal in business and life. hones her teamwork skills at HP. Taking her best shot By Jay Coleman Hard work and a competitive spirit are nothing new for Aysel (pronounced EYE-sel). In fact, they're traits she A few years ago, while working as an applications engineer learned at a young age. for HP Turkey, Aysel Ozal approached her manager with "I started playing basketball in school when I was 15," a complaint. she says, "and that taught me a great deal about time "You're overpaying me," she said. "Fifty percent of my management, teamwork and the joy of success." time is not being used. Either give me extra responsibility Aysel continued her basketball career at the Middle or I'll have to leave." East Technical University in Ankara, where she studied Aysel's manager responded by having her set up a . nuclear physics and computer science, then as a semi response center and Professional Services Organization professional player for a Turkish team. It never was as for Turkey. She excelled in those jobs, as well as subse lucrative ajob as it was for her brother, who played quentjobs in project management and support. Today professional basketball for several years, but it expanded she's HP Turkey's general manager for field operations her horizons. and the first woman HP country G.M. in the world. "Basketball gave me the opportunity to play in tourna ments throughout Turkey, Germany and Italy," she says.

22 MEASURE

www.HPARCHIVE.com "I got to see new countries, meet new people and experi As HP's first woman country general manager, Aysel ence independence. also has become a role model of sorts for other women. "I learned not to be afraid of a challenge or of change. It's a position with which she's not entirely comfortable. In many ways, basketball prepared me for my career "I've never had difficulties in my life because I'm in business." female," she says. "A lot ofwomen study physics and Aysel has had a wide-ranging career since graduating computer science in Turkey. I believe in hard work and from college 13 years ago. She was a computer program I want to be measured by my success." mer for a PC sales company, an engineer for a distributor Nimet Boratav, who works with Aysel, says that Aysel's of HP 3000 systems and a systems analyst for Nixdorf strength was evident when she first headed the support Computers before joining HP in 1989 as an applica- organization. "The first thing Aysel did in support was to tions engineer. give respect and courtesy to every employee," Nimet said. Her rise to G.M. ofHP "After seeing the great moti Turkey still surprises her vation, other people from at times. other departments were "I didn't have a vision or jealous they were not work an objective to become a ing in support." general manager," says Aysel says that HP Aysel, whose responsibili Turkey's biggest challenge ties also include support is to overtake IBM and manager for HP Turkey. "I'm Unisys as the preferred not a title-oriented person. vendor and partner in that "I grew up in Antakya, a country. Both companies small town on the coast of have had a presence in Turkey. My mother was a Turkey for 50 years, while housewife, but she was HP has been there for less always very keen on study than eight years. ing. My father was a Turk Still, Aysel and her ish government worker and Aysel talks with Rui da Costa, left, general manager of HP's Latin team never have been not highly educated. He America Region, and Franz Nawratil, V.P. and managing director ones to back down from said, 'The only gift I can for Europe, Middle East and Africa, during a recent Geographic a challenge. Operations G.M.s' meeting in Palo Alto. leave you is your diplomas.' "We owe the majority of They always supported my our success to the quality of decisions and gave me the confidence to succeed." the indirect channels and to our customers," Aysel says. Today, she leads a 100-person HP Turkey workforce "People who know computers know HP." M that in 71/2 years has grown to be the No.3 computer company-behind IBM and Unisys-in her native country. In 1995 alone, HP Turkey's sales grew 188 percent. "In the beginning, it was very difficult," Aysel says. "It took a lot of effort to make the deal. Now we're the tech nology leader in Turkey."

November-December 1996 23

www.HPARCHIVE.com WEB-WISE .".-- ... ---- ...

\ ...... , \ , "I , ,, , , ,..--- ...... ,"\ , , \ I " I , \ ...,,.... , ,' I' , , .,\I \ '-- I \ , ...... , ,

n past columns, we've toured exciting Web sites and marveled at the amazing speed with which the new information superhighway has been built. Today we're going to take site. In the biz, that's called spammin' a detour and cruise on down a parallel (from the root word "Spam"-an freeway: E-mail Street. The streets are day. How many hours does it take you inexpensive canned-meat product pretty crowded there. And ifyou're to tidy the in-tray and get on to your of uncertain origin and question- not careful, you'll definitely get stuck "real" business for the day? All morning? able quality). in traffic. In the past year, I've started getting So, what's a mere mortal to do in How many messages did you get increasing numbers of e-mails from this brave new electronic world? I can today? HP Fort Collins' Don Herman outside the company. Maybe you were tell you there's no miracle cure for tells readers of United Airlines' Hemi one of the thousands of HP employees e-mail problems, but I've got some spheres magazine that each business who got that ugly electronic junk mail tips that should relieve some of day brings him at least 25 new e-mail this summer? The non-HP sender, the suffering. messages. I've talked to others in HP while talking about employee back • Get off distribution lists where who get close to 100 new messages a ground checks in his message, was, you feel you don't belong. Send the in fact, promoting a commercial Web list owner a message explaining that

24 MEASURE

www.HPARCHIVE.com Octor C' clinic S free

Don't I' ~orget to .. read S01l1e VJ.SIt 1l1y eli . you really don't have a business need • Be careful of messages that might 0[1l1yp' 1l1cto to receive their valuable information contain viruses. There may be some andlearn TIor to . The d . 1l10re about ~ PIcks any longer. Be polite, but firm. nasty bugs hiding in infected docu oorIs netIqU seven d open ar0l1IJ.d th ette. • Be extra cautious when you ments attached to e-mail messages. http ays a Week S e clock Reply to All Addressees. Ifyou're not Download one ofthese and you may ://hp . top b ' Pnblis ll'eb.corp h y at careful, you can be talking uninten end up destroying valuable data on hlccldoct • P.COlQ/ orcllllRi_ tionally to hundreds or thousands of your PC. Ifyou get a message with an -.r.1.htJn. people. Most of them will not appreci attached executable or word-process ate your note, no matter how clever it ing file from someone you don't maybe. know, you should send it on to your • Use the message-filtering capabil systems administrator for a virus scan ities of cc:Mail (under Rules) to help before executing or reading it. you weed through the daily mess a bit What does HP have to say about more efficiently. You can automati e-mail and the ways it's most effec cally forward, file or even delete mes tively used? Lots. There's a team Despite my protestations, I do like sages from certain people or mail that in Palo Alto (Corporate Network Ser to hear from you, so please send me contains certain words in the title. vices' Electronic Messaging Group), your ideas, questions and concerns • Write your message subject to let and they have a great Web site, natch. about electronic matters. You can fmd the recipients know why they're on Drop by http://www.cns.hp.com/ me at my Web site (see box on this the receiving end: Action item: messaging to learn the best way page) or by sending an e-mail message December statement or FYI only/ to send a message from cc:Mail to to me at [email protected]. trip report. Makes the morning pile an Internet address. And much, much easier to navigate. much more.

octor C's Top Picks You're scheduled to meet an impor to go. On the screen, you can easily hp.com/publish/hpcu and from tant HP customer at Adolfo's res zoom in or zoom out; move east, the rest ofthe world it's http:// taurant for lunch. You know it's north, west or south and then print www.corp.hp.com/publish/ at the comer of Pine and George the results. Super cool! Closely related hpefcu. Check 'em out. streets, but you don't know exactly to mapblast is a second stop for maps And if you want to see the win where that is, and you don't have a and phone numbers (Argentina's ner of the first Gold Clio award for city map. What do you do? residential listings) and more from Web sites, take a peek at the Print your very own map from a crowd called WorldPages, at women's in.site pages at http:// http://www.mapblast.com that http://www.worldpages.com. www.leggs.com. Well-done sec will lead you to the spot. Fill in a HP's network of employee credit tions on home and family, style and couple of fields and you'll see a unions in the United States is putting fashion, and health and finance. personalized map (for most towns its services and interest rates on the Sharp editing with a wide variety and cities in the United States, so Web. From inside the company of ideas from the people who far) showing you where you need (intranet), start at http://hpweb.corp. make pantyhose.

November-December 1996 25

www.HPARCHIVE.com LETTER FROM LEW PLATT

HP's chairman, president and CEO explains the reasons for the company's new profit-sharing formula.

our months ago, in the July-August MEASURE, I explained the reasons that we needed to change HP's profit-sharing formula. FI'm pleased to say that we now have a new formula that truly reflects the company's performance and over the last 34 years-produces a profit-sharing percentage that is the same or higher than the one we had two-thirds of the time. You can see how the new formula works on the chart on page 27. I'll explain the formula in more AI Wilson, a retired quality-assurance manager with HP's Components Group in San Jose, detail later in this letter, but I want California, talks with Lew after a recent HP Retirees' Club meeting in Palo Alto. to reiterate some of the reasons we believed we needed to make a change. printers. Vendors, distributors, value centage was at a record high and not By the way, when I say "we," I'm refer added resellers, temporary employees when it was on the low end. Actually, ring to Bill Hewlett, the board of and others do much of the work that former CEO John Young raised the directors and the entire manage- used to be done by HP employees. issue ofthe profit-sharing formula in ment staff. These are some of the changes I've 1992-when the percentage dropped • In 1962, we were primarily a test referred to when talking about our below 4 percent in the second hali and-measurement company. Today, changing business model. And these but, frankly, we were more concerned we're primarily a computer company. changes require us to adapt how we with other critical business issues. • In 1962, our end customers were measure our performance. Believe me, I wish we had dealt with mostly engineers, who bought our For example, you may remember the disconnect between net profits products directly from HP sales reps. the graph in the July-August MEASURE and profit-sharing then. Today, our customers increasingly are that tracked HP's net profits and our Now, back to the new formula, resellers who sell our products to profit-sharing percentage since 1962. which was determined with the help consumers. The two lines followed logically until of a task force of general managers • In 1962, we did everything our 1994; in 1996, net profit grew from and input from many employees. It selves, from R&D through manufac 6.4 percent to 7.9 percent while profit looks like a good solution to me. And, turing and distribution. Today, we rely sharing rose from 8.45 percent to an you should know, it's the most gener on a number of other companies to all-time high of 12.83 percent. ous of the five fmal formulas the task produce a large portion of our products Some employees have questioned force considered. -such as Canon engines for our laser why we became concerned about the profit-sharing formula when the per-

26 MEASURE

www.HPARCHIVE.com You calculate the new percentage assets, which are, after all, expensive. The new formula goes into effect by dividing our return-on-assets (ROA) Assets include such things as land and in May at the mid-year point offiscal by 2.5, then adding the percentage of buildings, and all of our equipment, as year 1997. I hope that you're familiar revenue growth compared to a year well as our cash, inventories and with the new formula by then and ago divided by 5. accounts receivable. agree that it provides a logical link Let me explain the two major ROA is affected by how we use between HP's performance and your components of the formula and why space in our offices, manufacturing profit-sharing check. they're important for you to understand. and distribution facilities. It's affected We never intended to eliminate Revenue growth. We're all used to by how accuractely we forecast sales profit-sharing or to confme it to some looking at revenue growth because of products, and how efficiently we artificially low amount-we simply we've always used it to judge our per manage deliveries and shelf space at intended to make it consistent with formance and because it's something our dealers. And it's affected by how HP's true revenue growth and prof we report publicly every quarter. It's promptly we bill our customers and itability. The new formula does that. an indication ofhow sales of our turn our accounts receivable into cash. I hope you share my confidence products and services have increased In short, revenue growth and ROA that this is the right solution at the from year to year. Our revenue growth are major drivers of the market value right time. has climbed steadily at an average of companies like HP. And, as you rate of about 17 percent a year during know, growth and profitability are the past decade. two of HP's Corporate Objectives. ROA is a broader measure of our That's another thing I like about profitability than just net profit. It's the new formula: It gives relatively calculated by dividing our net profit even emphasis to HP's growth and by our assets, both ofwhich we report profitability. The old formula (12 per publicly. It requires us to think care cent of HP's pre-tax profits divided fully about how we use all of our by eligible earnings) focused only on profitability.

15% ,...-- --,

- Old formula - New formula

10% I------~~--..,.=-----l

01...-.l..-_...J-_....L._---L_---J1...-_.L.-_....L.._---L._----l__L-.._...1-_....L.._---L._----l__L-.._.L.-_....L.._....L._---L_---J1...-_.L.....J May Nov May Nov May Nov May Nov May Nov May Nov May Nov May Nov May Nov May Nov May 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996

In 23 out of the last 34 years, the new formula would've produced higher profit-sharing percentages. This chart focuses on how actual profit-sharing percentages during the past 10 years compare with the percentages computed using the new formula.

November-December 1996 27

www.HPARCHIVE.com EXTRAMEASURE News from around the HP world By Tena Lessor

HP hits the big screen Across the brightly lit movie screen, HP equipment can be seen, and in stereo Surround Sound, the Hewlett Packard name can be heard through out The Associate, a new comedy released in October starring Academy Award winner and actress-commedi enne Whoopi Goldberg. Whoopi portrays Laurel Ayres, a brilliant investment analyst on Wall Street. The game of corporate America is one of hardball and tough maneu vering, and Laurel is ready to play. Realizing it's a dog-eat-dog world for a woman on male-dominated Wall Street, Laurel decides to establish her own rules. She creates a fictional male associate, the business wizard Robert Cutty, and blazes through Wall Street like a fireball. In the guise of Robert Cutty, Laurel negotiates a business deal in which Hewlett-Packard helps a poorly man Whoopi Goldberg and Dianne Wiest star in Hollywood Pictures' new movie, The Associate, which features HP and displays HP equipment throughout. aged, near-bankrupt business get back on its feet, remain independent and become stable But speculation mounts as to who this anonymous and profitable. Cutty is. Laurel begins a round of quick shuffling to keep This successful deal and several others turn the busi her scheme intact. In the end, she proves to be a genius. ness world upside-down, and Robert Cutty becomes the The performance of HP equipment in the fIlm shows talk of Wall Street. genius as well. An HP LaserJet 5P printer debuts as part of Laurel's home office and gets its moment when a close up shot shows it printing off a flyer. Ir------, I An HP OmniBook 600CT PC is the hit of a party, Go to the flick on MEASURE impressing partygoers with its capabilities. Win free admission for two to the movies in your And HP Vectra PCs sit on office desktops throughout home town by sending this entry form with your full the movie. name, mailstop and telnet number to MEASURE no Look out, Hollywood-HP's in the movies! later than January 1, 1997. (Address on page 3.) Ten names will be pulled in a drawing held on January 15. Winners will be notified by telephone.

Name _ Mailstop _ Telnet number _

28 MEASURE

www.HPARCHIVE.com Golden moments with Bill HP employees in several Semiconductor Test and European cities got a rare Systems Management divi treat in September, when sions in Boblingen, Germany. co-founder Bill Hewlett In France, Bill probed stopped by their site. engineers in the demo cen The trip took Bill and ter with questions as they his wife, Rosemary, to demonstrated new telecom, England, Switzerland, PC and security products Germany, France and the developed in Grenoble. Czech Republic. He also inaugurated the Kicking things off, Bill first page of the HP France and Rosemary were hon Web site. ored as new fellows at At each site, Bill took the Oxford's Harris-Manchester chance to mingle and chat College. with employees. Other trip highlights For both Bill and HP included a ground-breaking employees, the moments ceremony for a third build shared will be remembered. Christiane Francke, a financial analyst for Medical Products Group Europe, met co-founder Bill Hewlett during his visit to the Euro ing on the site ofHP Labs pean Headquarters in Geneva, Switzerland. Bristol and a tour ofthe

Color me yellow BOBLINGEN, Germany holds. HP Germany wants "Welcome in the World of to reach this market. Coulour" was the theme of HP displayed its new HP's booth at this year's DeskJet printers, SureStore CeBit Home 1996 trade CD-Writer reader/recorder show, held for the first time system and Palmtop com in Boblingen, Germany, puters in colorful fashion. August 28 to September 1. Garnished in mustard Targeted at consumers, yellow, with blue, yellow especially teenagers and and green highlights, HP's their parents, the trade show booth was shaped like an attracted 210,000 visitors. HP DeskJet printer-a sight Consumer information you hardly could miss. technology is a growing IBM and Siemens sector in Germany. Only 25 Nixdorf were among the Anke Kier and Harald Rohowsky (standing behind ironing board) of percent of German house other computer companies HP Germany gave T-shirts to visitors who stopped by HP's booth at the CeBit Home 1996 trade show this past fall. holds have a PC, compared demonstrating their con to 45 percent of U.S. house- sumer products.

November-December 1996 29

www.HPARCHIVE.com EXTRAMEASURE

BOTTOM Unit (EMBU), was con ILINE verted in November from For the FY96 third an HP division to a sub quarter ended July 31, sidiary software com Hewlett-Packard reported pany providing software a 26 percent decrease in solutions for mechanical net earnings, including design and product-data management. the effect of exiting disk mechanism manufactur It began operations in November as CoCreate, ing. Net revenue for the with European head quarter rose 18 percent, while orders grew 8 per quarters in Sindelfingen, cent over the year-ago Germany, and North third quarter. American headquarters in Fort Collins, Colorado. CEO Lew Platt said, "This was a difficult Tilman Schad, formerly A Junior Achievement participant uses a laptop computer to write quarter, especially com general manager of his managerial decisions about his fictional business during the EMBU, is the president. pared with the third Hewlett-Packard Global Business Challenge as a judge looks on. Most ofMDD's former quarter last year, which Battle of the brains was unusually strong." employees have joined the new subsidiary. PALO ALTO, California nesses. Decisions then were For the third quarter, High school entrepreneurs sent via e-mail to Harvard net earnings were $425 from around the world tested Associates, a processing million or 40 cents per GEOGRAPHIC their business skills at the center in Cambridge, share on some 1.05 bil IOPERATIONS Hewlett-Packard Global Massachusetts, and the lion shares of common Lee Ting has been Business Challenge, an teams with the most profit stock and common-stock named vice president international Junior Achieve advanced to the next round. equivalents outstanding and managing director, ment business-management The field narrowed to (compared with $576 Geographic Operations competition sponsored by eight team finalists from million or 55 cents per (see page 14)...Dick HP, held in August at HP's Russia, Argentina, Belarus, share in 3QFY95), Warmington to general Corporate Offices. Czech Republic and Ukraine. adjusted to reflect the manager, Asia Pacific. This battle of the brains A team from Russia won 2-for-l stock split in July. Changes effective in began in January with 370 the competition and was Net revenue was $8.7 Europe November 1: teams from 36 countries. awarded $3,000 by HP CEO billion (compared with Yves Couillard to Students made managerial Lew Platt. $7.7 billion a year ago). managing director, HP decisions regarding their Orders were $8.7 billion France, succeeding computer-simulated busi- (compared with $8.0 Kleber Beauvillain, billion in 3QFY95). who will retire in April 1997...Bernard de MOD BECOMES Valence to G.M, Inter SUBSIDIARY national Sales Europe... I Didier Hirsch to [mance The Mechanical Design and administration man Division, which has been ager (F&A), Europe. part of HP's Enterprise Muan Lim to Asia Middleware Business Pacific F&Amanager.

30 MEASURE

www.HPARCHIVE.com OFFICER and Solution Services CHANGES Division) -and the I Test and Measurement Officers of the company Remarketing Operation. who have retired in The Direct Marketing recent months: Jim Operation now reports Arthur and Alan Bickell, into the Channel Prod senior vice presidents; ucts Worldwide Support Dieter Hoehn, Mike Leavell and Bill Richion, Organization (within the vice presidents. Computer Organization's Duane Zitzner, Worldwide Sales and general manager of the Marketing). HP has acquired Trel Personal Information lis Software and Control, Products Group, has been elected a vice president. Inc. of Rochester Hills, Michigan, a motion control software com CHART pany. It has become a ICHANGES subsidiary of HP and In the Measurement Sys retains its name. It tems Organization, the reports to the Santa Integrated Circuit Busi Clara Division. ness Division (lCBD) has become part of the Com NEW ponents Group...The Chemical Analysis Group IHATS has formed a new Chem Mike Matson to G.M., Information Storage HP-one in a thousand ical Analysis Solutions Group...Alan Marty to HP is one ofthe 100 best owned manufacturing Division under G.M. Bob G.M., ICBD. managed companies in the companies vied for the Emerson. In the Extended Desk world, according to Indus top 100 spots. In Test and Measure top Business Unit, Jean tryWeek magazine. A few of IndustryWeek editors ment Worldwide Sales Charles Miard to G.M., the top companies listed in and 40 outside experts and Marketing's TMO Performance Desktop the August 19, 1996, edition picked the 100, based on 12 Field Operations, a new Computer Operation and include Ford Motor Com factors, including [mancial Solutions Delivery Orga John Gannon to G.M., pany, Intel, Texas Instru results, research and devel nization headed by V.P. Commercial Desktop ments, Siemens and Sun opment, corporate citizen Larry Potter comprises Computing Division... Microsystems. ship and global strategy. two renamed operations Tom White to G.M., One thousand ofthe -the Instrument Sup Computer Peripherals world's largest publicly port Solutions Division Bristol Division. (formerly Test and Roger Nalepa to Measurement Support G.M., HP Shanghai Division) and the Solu Analytical Products Co. tion Services Division (formerly Consulting

November-December 1996 31

www.HPARCHIVE.com PARTING SHOT

A moment in time YOSEMITE VALLEY, California-In the spring of 1995, at the brink of sun set, the sun's rays brilliantly reflected off the 8,842-foot granite peak of Half Dome in Yosemite National Park. Lon Overacker, customer engineer from HP's Pleasan ton, California, sales office, clicked that splendid moment for eternity. "That day the sky was filled with wonderful white clouds, and I knew sunset on Half Dome would be beautiful," Lon recalls. "Pools of water had gath ered in Yosemite's meadows, providing a great photo graphic opportunity." To capture the shot, Lon used a large-format 4x5 wood field camera with a 90mm lens, Fuji Velvia slide film, a lens aperture off/32 and approximately a two second exposure. "I know that every time I press the shutter release, that photograph will be completely unique, and that moment in time is gone forever."

MOVED LATELY? CHANGE OF ADDRESS SHOULD BE REPORTED TO YOUR PERSONNEL DEPARTMENT.

Bulk Rate U.S. Postage MEASURE Magazine Paid PO Box 10301 Permit 3917 Palo Alto, California 9'1303-0890 Portland, OR 11.1",1,1,11.,.11".,11,,1.,1,,11 ",1.,1,1,1,1., 1,,1,1.,1,,11 ************************* ECRLOT II R002 00014293 47 ** KENNETH L MACY ** 15485 BEAR CREEK RD *1 BOULDER CREEK CA 95006-8645