FROM THE EDITOR
can't say exactly when I became meeting to talk ""ith customers or a big fan of CEO Lew Platt, but visitors-and ended up staying I think it was one day in Febru longer than either of you imagined ary 1993. he would. He cares deeply about. I had written a MEASURE article the personal tonch. about HP's order-fulfillment problems. For the past few years, Lew has A couple of senior executives felt the gotten into the habit of eating lunch (one was too honest. Lew was asked with several of us from HP Communi to arbitrate the dispute. In many cations. I think he enjoyed the fact companies, that would have been that we rarely talk about work. an easy decision: senior executives 1, Name a topic-sports, current events, employee publication O. fine wine, photography, literature, Lew walked over to my office and wombats-and Lew invmiably explained-almost apologetically knows more about it than anyone On the cover: Carly Fiorina, that the article had some problems at the table. HP's new president and and needed to be pulled from the Here's a guy who regularly coun CEO, sets a fast and ener· getic pace for the company magazine, which was due to go to the sels and dines with CEOs, world lead to follow. Retiring President printer within a few days. I countered, ers and royalty; yet, he seems equally and CEO Lew Platt is non "You mean there's no middle ground? happy eating chicken strips and fries executive chairman of the HP Board while overseeing There's no way to edit the story to in the company cafeteria and t.alking Agilent Technologies' spin make it acceptable for printing'?" with any employees. off from HP, The story Lew picked up the article, qUickly His sarcasm and quick wit can be begins on page 4. identified the controversial paragraphs, lethal. But he always appreciates a Cover photo by Steve made some thoughtful edits and then good duel-even when his opponent Castillo pronounced the story fit for print. scores a few stinging cuts. I can't He very easily could have sided imagine another CEO at a Fortune 13 with his execs and ruled the matter company-or at many top Fortune closed. Instead, Le,", looked at both 500 companies-\\'ho is as approach points of view, weighed the evidence able as Lew. and made a CEO-like decision (that Lew will be retiring soon, but it looks happened to agree ",ith mine). The like HP has found an able replacement vice presidents may not have been in Carly Fiorina. She's bright, warm, delighted, but MEASURE readers funny, focused and a big believer in were able to read a more honest and employee communications. credible story. Thanks, Lew, for eight years of "You and I didn't take t.hese jobs to leadership, friendship and always be popular, did we'?" I,£w has said often. thinldng of what's best for HP. We'll On the contrary, I'd bet that Lew is miss you. one of the most popular HP employ -Jay Coleman ees ever. He doesn't just talk about company values and the HP Way. He lives them. Anybody who has spent much time around Lew probably has a story to tell. It might be the unexpected phone call Lew made or the note he sent. It could be the time he dropped in to a
2 MEA.."ilJRE ~ II THE INSIDE STORIES .••• ... ~ Agilent Technologies " .. . . • •••,. It' Innovating the HP Way
Page 13 DEPARTMENTS Keeping up with Carly 23 Web-wise Carly Fionna, HP's new president and Dr, Cyberspacp's electrons get CEO, sets a fast and energetic pace for the excited about new sites. company to follow. 24 People Back in the limelight Thanks to the HP Way, Julius Nearing self-imposed retirement, Dick Paras IS building a "village" Hackbom takes on new roles as board cherir of his own for Filipino- and mentor to HP's persuasive new President American youth. and CEO Carly Fiorina. 26 Letter from Lew Platt 10 India's "youngest industry" comes of age HP's retiring President and The India Software Operation, which began CEO Lew Platt reflects on his as a lO-person group a decade ago, has 33-year career. exploded into a dynamic team that's 700 strong. 28 Letter from Carly Fiorina 13 Showtime for Agilent Technologies New HP President and CEO With great fanfare, "NewCo" unveils its long- Carly Florilla foresees how a awaited and closely guarded new name. great company will become even greater. 16 Beneficial news for Agilent What kinds of benefits can Agilent employ 29 Your turn ees expect? Human Resources issues MEASURE readers share its first transition-related benefits package. their views on matters of importance. 18 Letter from Ned Bamholt Agilent Technologies' president and CEO talks 30 ExtraMEA8URE about the importance of employees, the need News from around the for change and Agilent's values. HP world.
20 Primed for the 21st century 32 Parting shot Business-savvy teens get ready to ace HP's Bill McCormick depicts Infomlation Age careers at a high school HP products moving at
that acts more like a start-up. gondola speed. r""d"(~ Page 20 .too>/ f~~' t' r, - ( te··'" MEASURE Editor: MEASURE is published in mid-January. March, May. July, September and November for employees and associates of Hewlett-Packard Jay Coleman, ABC' Company It IS produced by HP CommunicatIOns. Employee and Executive Communications sec~on, Shirley Gilbert. manager. Address Associate editors: correspondence to MEASURE. Hewlett-Packard Company. 3000 Hanover Street, 2OBR. Palo Alto, California 94304-1185, U,S A The telephone David l. Price number is (650) 857-4144; the fax number is 1650) 857-7299; and the e-mail address is jaLcoleman@hp com Joan Tharp Copyright 1999 by Hewlett-Packard Company MaLerial may be reprinted with permission Muoi Tran 'Accredited Busmess Communicator by the InternaTIonal Association of Business Communicators (IABCI Art director: Hewlett-Packard Company-a leadmg global provider of computing and imaging solutions and services for business and home-is focused Tim Mitchell on capiLalizing on the opportunities 01 the Internet and the proliferation 01 electronic services HP has 123,500 employees worldwide and Contri buti ng write ri had revenue of $471 billion in its 1998 fiscal year. Web liaison: HP plans to launch Agllent Technologies as an Independent company by mid-calendar 2000 Agilent consiSTS of HP's test and measurement, Lila Kakuk semiconductor products, chemical analysis and healthcare solutions businesses. and has leading positions in multiple market segments Intern: Selected articles from this and past editions of MEASURE are available on HP.Now at http://hpnow hp.colnl Desiree Sylvester * MEASURE magazine is printed on recycled paper with vegetable-based inks SrptemlJf'l"-Oct.ober 1999 3 Early morning...late evening it never seemed to matter what time of day Kate Silvery would call Carly Fiorina at home, the result was the same. "Carly's an avid runner, and she almost always would be running on her treadmill while she t.alked on the phone," says Kate, Carly's executive assis tant at Lucent Technologies for nearly the past four years. "She's definitely a high-energy person." Carly Fiorina, HP's new Barely two months into her president and CEO, sets a job as HP's fIfth president and CEO, Carly already has quick fast and energetic pace for ened the pace. The pulse rate interest. Within a few days, Carly and the company to follow. for this 60-year-old company is beat Lew had held conference calls with ing just a little faster since the 44 nearly 300 [mandal analysts and By Jay Coleman year-old leader arrived. international press representatives; All of the excitement surrounding hundreds of newspapers and maga the search for a new CEO began on zines printed articles about the new March 2, when HP announced that it CEO; every TV network and business would split into two companies and show in the United States requested that President, CEO and Chairman of interviews; and the HP.Now intranet the Board Lew Platt would retire at site logged more than 500,000 hits in the end of the year. A four-person a 12-hour period following the board committee reviewed more than announcement. Business Week maga 300 candidates before selecting Carly, zine made Carly and HP its August 2 president of Lucent's $20 billion cover story. Global Service Provider Business. The demands on Carly's time The July 19 announcement of were incredible, and yet, she seemed Carly's hiring triggered a landslide of to keep a step ahead of everyone. media and employee "Carly's energy is contagious," Kate says. "Just being arotmd her, --- you feel you can do more. - Carleton S F' . - [hpJ HEWLETT" - lorma PACKARD She has a wonderful gift as PreSident and a motivator. Sometimes Chief Executive Officer you drag yourself into her office, then come out like Hewlett-Packard C 3000 ompany she's given you a shot of Hanover Street Palo Alto, ea/Hornia 94304 B12 vitamins." 65Qf857-2120 But it isn't just energy for Fax 6501852-2977 energy's sake, says Carl E-Mail [email protected]
4 MEASURE early at a glance • Full name: Cara Carleton "Carly" S. Fiorina • What's the significance of her name? Cara Carleton is afamily Conigliaro, computer industry name. early is the ninth Cara analyst for Goldman Sachs. Carleton since the U.S. Civil War. • "Carly is the most • What does the S. stand for? dynamic person I have Sneed, her maiden name worked with," said Dan • Undergraduate degree: Plunkett of the Delta Con Medieval history and philosophy. sulting Group, a management Stanford University consultant company that • Master's worked with Lucent. degrees: Business • "Whenever she appears administration, . in front of a crowd, she University of captivates them," said ana Maryland; master lyst Alex Cena of Salomon of science, Smith Barney. Massachusetts Kate Silvery recalls an Institute of Technology's Sloan internal campaign at the end School HP President and CEO Carly Fiorina (left) of 1998 on the eve of the • Experience: Nearly 20 ye ars sets the pace for meeting with employees Chinese celebration of the with AT&T and LucentTech (top photoI and listening to customers (bottom photo) at the HP booth during year of the tiger. Carly came nologies, including president of HP World '99. up with the idea of sending Lucent's Global Service Provider all 20,000 people in her divi Business; executive vice presi sion a card with the phrase, dent, Corporate Operations for "Let's roar into 1999." The Lucent; senior executive in AT&Ts card included an embedded Network Systems unit, including voice recording on a com president of North America, puter chip. When opened, the senior V.P. of Global Marketing, card actually roared. president of the Atlantic and Being approachable and in Canadian Region, touch with employees always VP. of Strategy has been one of Carly's prior and Market ities. "She treats everyone Development, and with respect-probably more various AT&T posi so than anyone I've ever run tions in sales man across at the executive agement, marketing, finance Carly balances Kelly, Carly's primary speechwriter at level," says Carl Kelly, her former and engineering the enormous demands of Lucent the last four years. "She's very speechwriter. • Board memberships: HP, her work good at clearing away the clutter and Adds Kate Silvery, her former Kellogg Company and Merck & schedule with getting right to the core of an issue so executive assistant, "early received Company family time, including her you can address it." hundreds of e-mails when she • First HP job: Secretary, husband, No matter whom you talk to, speed, announced she was leaving Lucent. shipping department, Stanford Frank, a retired motion and personal magnetism are Many employees had never met her Park Division, while attending AT&T execu tive, her 3 the qualities that keep popping up face-to-face, but felt like they knew Stanford University year-old grand when people describe the fIrst woman her personally. She's just that kind • Personal: Married to Frank daughter. Cara, to head a Dow 30 company_ of person." M Fiorina, retired AT&T executive; and her 52 foot boat. • Hiring Carly gives HP two adult stepdaughters and a 3 "a sort of speed ir\jection," said Laura year-old granddaughter, Cara, who calls Carly C.C. • Hobbies: Running, gardening, sailing, animal lover
September-Oetober 1999 5 Dick Hackborn. who Teliredfrom excitement and buy-in from the man HP in 1993 as head oj the Compu,te-r agement team or with customers in Back Products Organization, was on the terms of the strategy she articulates. verge of retiring qu'ietly from the HP Then, very importantly-she also is board of di'rectoTs when hemn into strong in following through by setting a,whirlwind. The whirlwind is tactical goals and expecting opera Carly Fimina, 'who became HP's tional results. Those seem to me to inthe ,,/~1I In"l~ idt'lll ml C OJI JIlIII 1 (. be Lhe ideal characteristics of a CEO. Dirk jl1 IN fI m.'w I ~ , rh H~ And she was exceptional in both areas, 1 I 011 (' " ,Ill 'f, uw mitrl'(' limt I tW II 'm ') IA" . PI t .-: -/ r/J Historically, HP CEOs have had lr(/d IP loin Ow 1/ 'll' mill 11'11 'I lUI engineering backgrounds. To what Instead offad'ing away, Dick was extent was Carly's lack of an engi· Nearing self-imposed thrust into the spotlight when Carly neering backgronnd a factor in retirement, Dick Hackborn coaxed him 'into becoming the non the board's dedsion to hire her? takes on new roles as execut'ive chairman Qf HP's board of Dick: It wasn'L a major factor. Rick directors, effective January 1, 2000. Bellu6w (ex-Silicon Graphics CEO board chair and mentor MEASURE interviewed Ihck and former HP Executive v.P.) is not to HP's persuasive new recently about the board's deci.sion an engineer, nor is Lou Gerstner (IBM President and CEO Carly to hire Ca1'ly and hOtv she talked CEO) or Michael Dell (Dell Computer him into taking a. more u.ctive CEO). We certainly have a munber Fiorina. 1"Ole. -Ed'itOT of really outstanding leaders in t.he industry who do not have engineer Photos by Steve Castillo UP a...ked each of the CEO finalists ing degrees. to under~o a battery of manage I don't think it's a "show stopper." ment and personality tests. How What is important is being heavily did Carly score? focused on customers and, in particu Dick: She emerged extremely lar, having an excellent. understanding strong in terms of being a strategic of their key needs-both present and visionary, having the ability to create future. That's every bit as important if not more so-as having a technical background. Carly's really been involved in the high-tech business. Telecommunica tions as it evolved into digital net· working at Lucent is a very technical business, She lmew all the right ques tions to ask when I reviewed the HP businesses with her. I was very impressed by that. Also, while not involved directly, early has had a lot
Dick Hackborn, a 39-year veteran of Hewlett-Packard Company, has come full circle to greet and champion a new HP and its new CEO, Carty Fiorina. One of the th;ngs that really stood out about early to me was that she asked of experience with the infor people-related mation industry. quest;ons. The directions None ofthe she established at Lucent other external required inter cand;dates I activity, under Above: Dick Hackborn (lettI and Lew Platt Board's four-person CEO search committee standing and compare notes during a recent meeting in that unanimously selected Carly Fiorina as interviewed Palo Alto. Dick will replace Lew as HP's HP's new CEO. pmtnering with non-executive chairman of the board when asked even one compuler Lew retires. They made up half of the HP people-related compames. question. The ahilit.y to relatf' to cus tomer needs, to integrat.e input from numerolls area.<; into a. compelling strategic vision and then being able to champion your \ Did the management evaluation give you a good feeling for her ideas about HP's ('ulture and t.he HP Way? Dick: I think it goes even deeper than that. One of the things that really stood out about Carly to me was that she asked people-related questions. None of the other external candidates I interviewed asked {'ven one people related question. Above: Sam Ginn (lett). head of the HP Carly obviously was aware of the search committee and Board member, talks lIP culture, having been at Stanford with Susan Bowick (cented, V.P. of Human Resources, and Carolyn Ticknor. president Below: The CEO search committee. which and having lived in the Bay Area. She of LaserJet Imaging Systems. included John Fery, considered more than had studied our culture and showed 300 candidates before selecting Carly Fiorina. that she understood it as much as an external person can. She was very keenly interested in how people work together and how we manage at HP. I never got those questions [rom the other outside candidates. That interest in people is every bit as important as being a great strategic Limelight The reason that the search committee and the board unanimously chose Carly is that she has a strategic and opf'rationalleader. It just so hap .said thal-although it wasn't knowledge of the Ollt of this job. But! pens that she seems to be capable of hers to offer hy any means broader information do greatly enjoy inter doing all of this well, because she hadn't even acting with the HP heen offered the CEO job industry and the management team, How did Carly (~onvjJl(~e you to at that time-if she were skills a high-tech and this will take it to take on a more adive role'? CEO, she'd like me to be CEO needs to the next level for a Dick: I planned to finish my tenn chairman of the board. while. HP ha.<; a phe on the HP board this yelll' and not 1 told her 1 was headed provide strong nomenal management stand for re-election next year. Carly in the other direction, but leadership. team and I am looking asked about the board during our I'd really think about it. 1 forward to being more first meeting, I thought lhat showed talked with (board and search involved with them and Carly. wonderful insight. No other CBO committee members) Sam Ginn and candidate asked Ulat question, hut John Fery, and finally agreed that if IIewlett-Paekard probably eonld it's an important one. The CEO needs that's what the board wanted and what have found a very (~apable person, to know the board and who he or she Carly wanted, I'd be happy to do it. I'm perhaps male, perhaps iinish, IH-~r will he dealing with. really interested in seeing her get off haps \\'ith two or three engineer I told Carly that I was planning on to the best possible start-particularly ing degrees. Instead, we hired a this being my last year on the board. ",ith respect to UP employees. person who happens to be female, She was disturbed by that, but didn't in hf'r 40s, without an engineering say a whole lot. During the second Just what is a non-executive background. Was meeting she said to me, "1 really need chairman? IIP thinking oul somebody who knows IIP and partic D'f,ck: A non-executive chaim1an is side the box and ularly the imaging business very well," a chaim1an who is not also the CEO. practicing some What we're She also said that my background sa"',"y marketing'? looking for is on lhe Microsoft board gave me wide How long do you anticipate being Dick: The reason a long-term exposure to the computer industry, the dtairman of the board? that the search com She felt those were attributes that Dick: I told the board and Carly mittee and the board CEOwhos would be a major help to her. And she that I'm not going to make a career unanimously chose going to be Carly is that she has outstanding, a strategic knowl edge of the broader Being a information industry woman was and the skills a high incidental. tech CEO needs to provide strong leadership, Carly has this natural enthusiasm that's con tagious. I've watched it and it's incredible. At the same time, she can focus on the operational side. \-Vhen you're a company the size of Hp, you have to make sure that the organization is paying attention to everyday business fundamentals and getting good finan cial results. She has this great blend, We simply didn't see that in any of the other final candidates, The key short-term requirements Way, we have to ask, I believe you'll see a much more are to round out Carly's "Exactly what are you aggressive HP emerge. understanding of the com I really feel that talking about?" because The media and analysts have been puter industry and, most Carly will emphasize there are a number of enthusiastic about our decision to importantly, to gain an the HP Way that I HP Ways. There's the HP hire Carly, but what really excites me in-depth understanding of Way as I remember it in is the enthusiasm I've seen among HP the company. This will remember back a the 1970s and 1980s and employees. That's far more important not be difficult because few years. She will there's the HP Way today. to me. Wherever I go, I get an enthusi she's very bright and a absolutely protect Yes, they're 80 to 90 per astic response from HP employees. very fast leamer. That's cent the same, but there They shake my hand and hug me not an issue. the core principles are some important and say, "Oh, thank you so much for What we're looking for with a fervor. differences. fmding what really looks like a great is a long-term CEO who's I really feel that Carly HPCEO." M going to be outstanding. Being a will emphasize the HP Way that I woman was incidental. It just so remember back a few years. She happened that our best choice also will absolutely protect the core happens to be a woman. So maybe we principles with a feIVor-principles weren't thinking in terms of market such as the way people interact ing, but we ended up making a with each other, the commitment to great choice. excellence, integrity-all the prac tices I remember from Dave and Is there any doubt in your mind Bill's days. that she will strike that right bal I think she's going to push hard ance between retaining what's to get rid of some of the things that working well at lIP, but initiating have crept in in recent years. For changes that are necessary? example, the declining emphasis on Dick: In the May.June MEASURE fast action and being measured I said that when we talk about the HP against market and financial results. ...observers often fail to realize that India is BANGALORE, India ager for HP's India Bangalore, in India's south among the Software Operation (ISO), Indias ern state of Karnataka, is world's 10 most "to fmd the broad range, the country's high-tech industrialized the depth of talent and capital-an attractive, green countries. expertise that we have oungest city with a pleasant climate, here." Craig, a 22-year HP where dozens of multinational tech veteran, came to Bangalore four years nology companies have set up sites. ago from California. There were 60 industry" While Hewlett-Packard was one of people in ISO then. Today there are the flrst----€stablishing both a manu more than 700 in Bangalore alone. facturing plant and a software facility Some 150 work in the coastal city of in 1989-familiar names such as Chennai (formerly known as Madras). comes Texas Instruments, ffiM, Motorola Ten people in Bangalore formed the and others dot the leafy streets. core team in 1989, when Radha Basu Cybercafes-just starting to appear started the operation. Today, both the of age in other major Indian cities-are Bangalore and Chennai centers are familiar fixtures in what one author part of the E.Solutions Division (ESD) The India Software calls "Asia's Silicon Valley." within the Internet Business Unit. Operation, which began What makes India so fascinating The escalating size of HP's Indian are the layers of time that are visible software team parallels the growth in as a lO-person group a on every stroll: a bullock cart plod India's exploding software industry. decade ago, has exploded ding down the street alongside a Author Gita Mehta reports that as into a dynamic team that's sleek new Ford, a palm reader at recently as 1990 only about 5,000 work outside a computer store, a goat Indians were working with computers 700 strong today. herder ushering his charges across in India. By 1996, that number had four lanes of city trafflc. Hundreds of grown to a quarter of a million. "Our By Betsy BriU years of human activity are on display youngest industry," she observes, "is -not just in museums but on the also our fastest growing, already Photos by Ken Kobre roads and byways. exporting a billion dollars' worth of Yet the mesmerizing blend of past electronic goods abroad every year." and present is such that observers Nowhere is India's pulsing soft often fail to realize that India is ware industry more evident than at among the world's 10 most industrial HP's two side-by-side modem offlce ized countries. Its space program is complexes in Bangalore. The opera said to rival those of some western tion, which started as support for European countries. internal HP customers, has evolved In just six years, A burgeoning middle class into a hub for the -,,--,"" the number of -about 20 percent of the company's shift Indians working with computers jumped from country's population of one from its traditional 5.000 to a quarter of 8 mil billion-nearly matches hardware business Iion-and HP ISO, at both , in size the entire population to its creation of the Bangalore and Chennai centers, has helped tip the of the United States. Five a profltable new scale as a rapidly growing, million graduates emerge from software venture. profitable new software India's universities each year At anyone time, venture. HP has officesl manufacturing sites in -thousands upon thousands Bangalor., Bombay, of engineers and scientists. Craig Chatterton, Calcutta, Hyderabad, "It's rare," says Craig operation manager Chennai and New Delhi for HP's India (headquartersl. Chatterton, operation man- Software Operation 10 MEASURE Together, employees of HP ISO IIndia Software Operations) spell teamwork and success. In 1998, the Commercial System Division-where the India R&D labs worked around the clock with the Cupertino, California, labs-won the President's Quality Award working h"lIld-in-glove with col leagues in CII!Wl1ino. "Th€'re are ElO or liS 011 th<: CSY (eam here in Bangalorc and G5 ill Cupertino." Subbu says. "There's only so much ~'ou can do unlflss you'rE:' working around tllE' clock. We'rE:' ablE' to hand off our work to CupPltino and tlley do the samf'. That giYCs llS a ~--l-hollr capability, which ('uts down I IlP's l illle-lo-market rrenwndously." II!';.::." CSY-il1col}JOT'aling both the Indian and CllpPltino 1"II.>s-\yon the Presidf'nt"s t~Hality AW :O;PpIPlllht'l-Ocrober W~!J 11 Heading in new directions with cutting edge technologies such as HP Changengine, HP ISO's Namaeta Chopra (Ieftl and M.M. Prathiba radiate with hope and optimism, separated from the business process es. It also allows the processes to be compartmentalized so that anyone of them can be changed simply and quickly without affecting the others. While such a change could have taken two or three months of sophisticated programming in the past, Ravichander explains, a business itself should be able to make the changes within a week or less. "That's a tremendous Gennany and Cupertino developed In December 1997, ISO took on a value added for our customers," the software, while hundreds world major role in developing Changengine she says. wide were simultaneously working and in creating a family of HP soft In addition to Changengine, ISO on the HP-UX 10.30 operating system ware products built on it. Beyond has been working with many of HP's and other dependent products. During handling specific assignments within other new start-up Intemet software one three-month period, dozens of HP or even working as part of a mul products and technologies, including people participated in daily tele ticlivisional team, ISO has become, e-speak. As part of ESD, ISO is inte confCl'cnces at 9 p.m. India time. The Craig says, a strategic R&D center for grally engaged in the development new system went live earlier this a whole new business effort within and deployment of HP's Intemet year. HP-the development of Intemet products and solutions, as well as But the paradigm shift for Hewlett based business software. partnering with many of HP's systems Packard and the India Software "Changengine," says Padma divisions and IT organizations. Operation, Craig says, started with Ravichander, R&D lab manager for Padma, who was educated in HP Changengine-Qne of E-Business Solutions in ESD, "puts Canada and spent most of her career HP's revolutionary new ISO on the HP map and puts HP on there, retumed to India just a few Chan·t!I:.!?I1r;J,ine object-oriented technolo the software map of the world." In years ago, joining HP in March 1995. gies. "Changengine," Craig Bangalore, around 40 people worked She finds outstanding technical predicts, "could well revo on the core engine and another 40 or expertise and unusual camaraderie lutionize the way the world develops so on the entire project. among her ISO colleagues. "It's application software. And HP will be Basic computing functions, Padma almost like an extended family. When the pI'emier provider of products that says, are separated from the specifics I was working for Transport Canada, use this technology." of various business processes. Tradi we had a large team engineering the Changengine, at its simplest, tionally, any change in a business change from mainframes to client allows developers to create separate process-say the number of signa servers. It took two-and-a-half years layers of an application tures required to with to develop the kinds of working and instead of one monolithic draw money at a bank or personal relationships I see happen piece of software. In the even the an1.ount of a with ing spontaneously here." M past, one change could drawal requiring a signa mean rewriting ture-would require the (Betsy BriU is a San Francisco, an entire application. software to be rewritten California-based freelance writer. Changengine allows completely. -Editor) changes to be made Changengine allows within one layer without "static" functions-such affecting another, greatly as calculations-to be reducing the "time to Padma Ravichander, market" for a new appli R&D lab manager for cation or an upgrade. E-Business Solutions (ESDI 12 MEAsr:RE • • • • • •• •• •• ••• Agilent Technologies ••• • • • • • Innovating the HP Way SAN JOSE, California-As sleepy For a name derived from the word Showtime downtown San Jose gradually awoke agile, meaning "nimble and well to an ordinary Wednesday, the San coordinated" and "mentally quick Jose Repertory Theatre surged with and resourceful," it sure was a long ----I extmordinary energy and excitement. The few passers by at that early hour on July 28, saw With great fanfare,"NewCo" about 300 employ unveils its long-awaited and ees, including more closely guarded new name, than 70 ambassa dors from around the world, celebrat By Muoi Tran ing a common joy and anticipation Photos by Steve Castillo the announcement of the new name for the company spin ning off from HP. It was a tight squeeze in the halls and stairways that led to the guarded auditorium, but this gave everyone a chance to greet one another and exchange playful speculation. A quick poll revealed that the new name had been successfully kept a secret, and the temporary name of "NewCo" still was prominent. Finally, after a 45-minute buildup staged by Dick Clark Conununi cations-where Before revealing the "Name reveal" was name on center stage, 17th of 21 items on Agilent Technologies' the program-the CEO Ned Barnholt (top center) meets with new name was Bill Hahn Heft), V.P. of announced: Agilent Strategic Programs, (pronounced Jtgile Byron Anderson, lent) G.M. of the Electronic Tectmologies. Products and Solutions Group, then is fitted for a microphone. Showtime awaited SUl})lise. BtH it ,~-as well worth the wait because thE' audiencE' welcomed it with a standing The crowd rose and cheered the new name. From that moment on, they were ready to spread the word about Agilent Technologies. Benefits touch employees and their tion channels such as Transition families more closely and personally News and a host of other communica Beneficial than most workplace issues. With the tions materials help keep employees planned split of Agilent Technologies updated on program or policy changes from liP, employees at both com resulting from the realigrunent. news for panies are asking: "Much of the ultimate success for "What's going to change?" splitting into two companies depends "Will my benefits be the same as on whether Jean Halloran (Agilent's they were before the split?" Human Resources v.P) and I have Agilent An enticing benefits package typi met our goal of creating two new cally can influence a person's deci companies that are exciting, attrac sion to join a company. However, by tive places for people to work in," What kinds of benefits the end of June, thousands of people says Susan Bowick, HP Human can Agilent employees arOlmd the Agilent Technologies world Resources v.P. "The numerous bene expect? Human found themselves saying, "Please sign fits decisions we are beginning to me up," without completely knowing announce and implement are a key Resources issues its what kind of benefits they'd receive indicator of what the companies first transition-related from the new company. Call that trust stand for, so we've spent extra time benefits package. and give liP some of the credit. and serious thought about everything The two companies' Human that affects employees." By Barbara Kawamoto Resources departments jointly have The ma,iority of benefits and begun to announce a number of deci compensation programs will sions affecting employees. Distribu remain the same for HP and Just before the start of a phone confer ence with other Human Resource employ ees in the United States, Susan Bowick. HP Human Resources V.P., and Jean ' .. fJ! Agilent HR V.P., discuss . a few ideas for the meeting. 16 MEASCRE The majority of the benefits and compensation programs will remain the same for HP and Agi/ent employees through the distribution date, which is estimated to be in Agilent employees the third quarter offiscal On the distribu value of IIP stock is adjusted on the through the dis year 2000. tion date, HP and distribution date. employees' options tribution date, Agilent service will have the same intrinsic value which is estimated to be in the third credit moves with the employee to (bargain clement) immediately after quarter of fiscal year 2000. At that the company for which he or she the distribution that they did immedi time, HP and Agilent will become "",ill work. ately before. This applies regardless two separate and independent of which company one works for companies. ,. How will cash profit-sharing be after the distribution. Employees who accepted the erediled'?" After that time, the value of an transfer to Agilent Technologies had Cash profit-sharing for the second employee's options will fluctuate with plenty of questions. Among the most half of FY99 will be based on total IIP market conditions, the economy and commonly asked were: results (computing and imaging, and performance of the respective com measurement), excluding transition panies. Those factors will dctermine "How will senice credit in benefit costs. In addition to the pcofit-shming the value of Agilent Technologies and and compensation programs be armouncement, results will be reported HP stock prices. counted?" for each company, as if they already You can go to the stock option Web This will be determined by the were two independent companies. site at http://hpweb.corp.h!>.com! timing of an employee's actual move. Profit-sharing for the first half of publishlhwp/stock/stok_opLhtm to An employee can switch companies FYOO will be based on separate busi see how you are affected. M any time up to 30 days before the dis ness results of lIP and Agilent, using tribution date in order to receive full the CUITent profit-sharing formula. (Ba.rbara Kawa.moto is a. Sa.n ,JosP-, benefits and service credit for time IIP intends to apply this approach Cal'ijonri,a-based communicati01/.8 worked in either company. worldwide; however, some countries' consultant.-Editor) regulations may require HP to make adaptations or changes, subject to local legal and corporate review and approval. The fine print HP's intent is to follow the above guiding principles in all countries "How will Uw distrihution affet't in which we operate. However, me as a shareholder'?" country-specific laws, regulations HP intends to distribute a dividend and structures may require HP to of Agilent Technologies' shares at make adaptations or changes, sub somc point during Q3 FYOO. When the ject to local and corporate review distribution occurs, shareholders will and approval. receive a dividend in Agilent stock In those countries where provi representing some ownership in sions must differ, differences will Agilent. The dividend will be deter be communicated on a country-by mined based on a formula reflecting country basis as soon as possible. Agilent's value in proportion to HP's Nothing in this article should be taken overall value. When that pOltion is as altering any right that HP has to determined, the fonnula will allow HP modify program provisions at any time. to determine how much of an Agilent HP may translate this information share to give as a dividend for each into a number of local languages to share of HP stock. support effective communication of the information captured here. If a "What about stock options?" conflict occurs between the English HP's core strategy addJ.·essing stock and atranslated version, the English options. which will be implemented in version will govern. most countries, including thc United States, ensures that when the market September-October 1999 17 Agilent ambassadors, including (from leftl Monisha Bhutani (Semiconductor Products Group). Sue Clark (Automated Test Group), Lamont Cloy (Electronic Products & Solutions Group), Peng Cui (Healthcare Solutions Group), Bernhard Olt (Chemical Analysis Group) and Xing Ye (Communications Solutions Group), received banners of the new name and logo from Ned to share the news. Agilent Technologies' iven the sheer volume of operations in more than 100 coun work that's been accom tries. that just wasn't possible. The 75 president and CEO talks plished, it's hard to "ambassadors" from our major enti about the importance believe it Willi just six ties and geographies who attended of employees, the months ago that we the event were outstanding represen announced our intention to split HP tatives, reminding me once again of need for change and into two companies. Since our nam the intelligence, optimism and gen Agilent's values. ing in July, we've been working to uine enthusiasm I've become accus establish Agilent Technologies as a tomed to at. IIP Whether you were at Photos by Steve Castillo separate company with its own iden the live event in San .fose, California, tity. \Vlrile we still have a way to go to in the television audience or watched reach our goal of creating t\vo sepa it on video, you no doubt caught the rate companies, I'm confident we excitement of everybody involved for can do it, given the commit.ment, dili our new company and our new name. gence and enthusiasm ShO,,"ll by In fact, the overwhelmingly posi employees in both companies so far. tive response to our name surprised My many years working at HP have Landor Associates, the consultants convinced me that the success or fail who helped develop it. Irs the first ure of any enterprise hinges on the time they've seen an audience give a commitment ood contri spontaneous standing ovation for a butions of its employees. new name, Of course, at HP, I've The day before the naming event, Ag"ent 1echno\ogteS been fortunate to work we held a town hall meeting with the with some of the best ambassadors and our Agilent manage people in the world. ment team. The ambassadors asked Agilent's management tough questions, They wanted to team shares this belief. know what our new company is all That's why we insisted about. and why we're bettel' off sepa that once we select.ed a rating from HP. That night at. dinner, name for our company each member of the mllilagement. we would unveil it to t.eam had the chance for more int.i employees before we mate discussion with a small group of announced it to the ambassadors. I hope by now Agilent media and the rest of employees have heard about the two the world. That's why the special day event from your amha,>sador. event on July 28 was exclusively for It's from events like this that we'll employees (see related story on pages begin to build the stories of Agilent 13-15). And we worked hard to avoid Technologies, about our people, our leaks beforehand, including register products and our culture. ing more than 100 false names for Because employees are key to Internet addresses. AgilenL's success, we plan to imple The name-launch event was a great ment other innovative employee com success, a fIrst-class event. that. repre munication programs that keep you sent.ed the quality company that informed and continually encourage Agilent will be-in the same league your feedback. with HP. One change we'd like to focus on I wish all 43,000 of us could have in our new company is the one inher been together. But with our far-flung 18 MEA..<:;URE ent in our name-Agilent. It's our we do differently. Acting differently, I a...,k that. you uec:omE' so familiar capacity to remain open to continual Making decisions differently. Com with them that they are second nature change and to stay flexible and respon municating differently, Instead of to you. We must live them if we're to sive to changing market needs. This ' ....aiting for a signal from above, it's up establish Ari!ent Technologies as one agility is imperative to being success to each person to take ownership for of the premlc'r technology companies. ful in the fast-changing, highly com helping us make necessary changes. We've had a bright start. I couldn't petitive businesses we're in. Every Agility-quick and easy movement, be more excited about our prospects. one of us "\Till have to learn to embrace nimbleness-is just one of the six '\'hile we have a lot oJ work ahead change and usc it to our advantage. values of our new company lhat we of us to make Agilent Technologies I'd like to challenge you to think announced al the July name-launch known and to live up to our own aboul how this applies to your func event. Since we recently held om first expectations, I know WE"II do il. tion and r.o your individual job. What General Managers Meeting and had Because I know Agilent people and ••••••••is it. in your own lengthy discussions about values, what they're capable of. a!'ea that's making you'll be hearing a great deal more II cf1ange us seem slow and ahout. them, and about our mission begins with bureauCTatic'? ';V'hat and vision individual can you do to help We've kept three of our values us remove the from our HP heritage: initiative. ban-iers to speed, • Innovation and contribution Change isn't n!SJPonsiv h • Trust, respect and tean1work • Uncompromising integrity something To these we've added three new that happens s values that we believe arc essential to us. It with individual ini for our success: happens tiative. Change isn't • Focus something that • Speed and agility because of happens to us. It • Accountability something happens because that we do of something that differently September-Octo!Jf'l'109fl 19 NAPA, California-8tart-up ventures on setting up the launched by 20-something business network. moguls are yesterday's news. Stu "It's designed to dents at a small school in Napa Valley look exactly like a are redefining the concept of "young start-up company," entrepreneur." Teenagers are develop Mark adds. "They ing companies and operating as CEOs have depmtments and before they even graduate from each student has his high school. or her own PC, In the New Technology High was launched center of the school in September 1996 to prepare students is a glass room with to compete in an advanced, technology highly visible switch based society. Using business-operating ers, hubs and servers. principles in a state-of-the-art com You can actually see puting environment, they get a classic how it all works, but Business-savvy teens high school education in a new mil it looks great. Silicon lennial setting. Graphics designed it get ready to ace "They call it the 'school that busi to look like a modern office setting," Information Age careers ness built,' " says Mark Riller, the "We're creating an environment at a high school that Mountain View-based Hewlett that has the same access to infor Packard sales representative who mation that the real world uses and acts more like a start-up. dedicated two years to help build the integrating that with an educational infrastructure for the technologically program," says Paul Accampo, the By Karen O'Leary advanced high school. San Francisco-based HP network "Essentially, IBM and HP were specialist who designed the school's Photos by Andy Freeberg invited to bid on the first 125 comput computing environment. "That's the ers," reports Mark Morrison, director critical difference. It's a lot different of New Tech High. "Hewlett-Packard than a high school simply saying 'We won the bid because of its technology need computers' and then continuing and because it was willing to work to operate in the same old ways," with us to break the "HP got it," says Dr. JoAnne Miller, mold of education." New Tech High's director of external It's a showcase for relations. "It knew what we were try any business-not just ing to create and signed on early to education, Mark Riller SUppOlt it. Large numbers of HP rep says. "At Hewlett resentatives came to offer advice, Packard, we didn't have design the network and walk with us a focus on the education every step of the way. The technology market at the time, but is central to the way the students everyone came to bat. operate on a minute-by-minute basis, More than 50 division We can't afford to be down-ever people during pre- and so we need top-tier equipment." post-sales and installa The state-of-the-art network tion came up to the designed by HP and configured by school. Throughout the CompuCom originally included the process, we were very HP NetServer LX Pro and LH systems, creative and gave New 145 HP Vectra VL PCs, HP LaserJet Tech High a lot of ideas 20 MEASuRE Each New Tech High classroom is a modern office setting, where students like Erica Kissinger (left photo seated right) research the Internet to help complete school assign ments. Miles of networking cables-circling the walls, feeding to the many visible net work cradles Hower photo) and joining at hubs (belowl-connect the school. -are fairly inedible. Besides, students at the avant-garde school are highly motivated to actual ly do the work. The way the students operate is similar to fast-track employees at a well-run company. Strategic plans, story boards, critical analysis of product and process and multimedia presen tations are all part and DeskJet printers, HP ScanJet "Local Napa Valley business lead of the learning scanners and HP AdvanceStack hubs ers need a dynamic new workforce," process. and switches. says Mark Morrison, director of New "Our environ "HP truly has a showcase installa Tech High. "They want to expand and ment is like an tion with eight product lines coming diversify the economy beyond wine office," JoAnne together to provide a complete and tourism. And existing businesses says. "Every student solution for New Technology High," want to increase their productivity," gets assignments, says Norm MacDonald, eeo Small! With the growth of the economy at takes notes and conducts research Medium Business Web site manager. stake, local businesses are integrally on the Internet. They even get their "Education is becoming a priority involved in the development and con grades online," market for many of our product lines tinued success of the school. They Additionally, the students are get and High Tech High is an excellent provide grants for teclmology and ting infrastructure, Paul says. "If they demonstration of what could be a luc teclmical support, develop software have to do a paper on Abraham rative and rewarding business for us," applications that match up with the Lincoln, the assignment will be to Providing a launching pad to academic needs of the school and pro research information using the Web. propel students to top-flight colleges vide internships for all of the students. The point is not to ,,-rite a paper but and high-tech careers wasn't the only "The dog ate my homework" would to deliver a presentation using idea behind the development of the never fly at this school. Assignments PowerPoint. It's just the way a busi information age high school. given and conducted via the network ness would research a topic and present it. SUddenly, you've got kids learning how to deliver a presentation Teen tycoons generate serious cash flow using the same media that we do, and Chris Straughn is the CEO of New Technology High's student-founded business, yet the topic is history." Dynamic Designs. Graphic design and Web-site hosting "As you're learning details about and design for local businesses are among its money the Industrial Revolution, you can be making ventures (hnp://www.nths.nvusd.k12.ca.us). as creative and in-depth as you want," Overseeing 13 students, Chris already has man says Randi Powell, who is entering agement sawy, "To motivate people, you have to tie her senior year, "And students give into what they're really excited about." Chris and his you feedback. They might say, 'That , team learn sales, marketing, billing and managing PowerPoint slide doesn't work. It 'tips from local business leaders. The school's latest endeavor is a raffle for a luxury car and a weekend in Napa Valley that Chris expects will create a sizable cash flow every semester. September-October 1999 21 Making the most of their time and talent through technology, students of New Tech High should be eye-capturing but not dis also ilce on business and interpersonal skills. tracting or disruptive. And the colors should be neutral.' It's a challenge to employees with local businesses uses it as a model to show what edu present it well. I've learned to speak while they're still in school. cation can and should be. with confidence. And I try to get the "Local businesses wanted students "The technology is the scaffolding. audience really into it, to be prepared to use technology, We're giving students skills for the uTechnology is the future," Randi manage their time well and be depend highest-wage jobs available," Mark says. "You can start off as a senior, able and productive," says New Tech adds. "They're trained in the latf'st. making $45,000 if you're technically High's Mark Mon-ison. "They had technology-such as designing and proficient." She nms a small but some pretty basic criteria. Our stu deploying secure money-gathering profitable Web design business in her dents far exceeded expectations." Web sites, But they're also learning spare time. While Ryan Tharp was in his senior all the leadership traits they need to Providing a smooth segue so stu year, a local Internet service provider excel. We give them interpersonal dents could move into Information (ISP) hired him to nm its IT depart and business skills that allow them Age jobs and careers upon graduation ment for $30,000 in a part-time job. to work with people, manage their may have been the original idea. But "Tipper Gore (the \'\-ife of U.S. Vice time, solve problems and market Kew Technology High School now President AI Gore) is among the 2,000 themselves. also serves as a place for students to people a year who have toured the "Whether it's being a software make a contribution as part-time school." :\-1ark Morrison says. "She developer in the south of Fram.·e or going to the best college in the United States, we're preparing stu Students learn early that if you can dents to do absolutely anything they dream it, you can achieve it want to do. They get very excited "Project-based learning is great," reports Robin Fiske, about their futures." M (left). "We work in teams on everything and everyone does their part," Robin excels in American Studies using (Karen O'Leary is a Palo Alto, PowerPoint software. Students are graded on collaboration, California-based fTee-lance technology literacy, curriculum and oral and written communication. write,..-Ed:i.tor) "In this environment, you learn that you can make anything happen," says Randi Powell (right). "We have the drive, and the school provides the technol ogy and the support we need to achieve whatever we set out to do." Besid es co-founding a Web site business, Randi launched a debate club. 22 MEASURE WEB-WISE {~ What's new these days? Try Agilent powerfulln1'tJ~!k Technologies' internal news and infor search engine. mation Web site-HP.Now's sister And you won't need site. The site is just getting started, to spend much but already has thousands of kilo time on bytes of information on the name this site. It has launch event, the television and print well-thought-out advertising campaign and tons more. categories and links The staff is welcoming any sugges to transport you tions and ideas you might have, so exactly where you check out the site at http://agilent. want to go- hp.com. By the way, the external site fast. Try it at http:// is live, too. You'll find it at http:// portico.hp.com. M www.agilent-tech.com. What else is new? The new CEO of Hewlett-Packard, of course. Get the lowdown on Carly Fiorina-every thing from her personal messages to employees to an ongoing record of e>..1;emal media coverage-on HP.Now at http://hpnow.hp.com. My last hot item is Portico, the gateway to HP's intranet. Still in its beginning phases, Portico is shaping up to be a real supel·star. Begirming September 20, you can search the intranet with its ultra- Dr. C's Web report Web. It's 8 search engine that returns The show I wanted was available on • Define thisI Here's a site results based on apage's importance to tape, so-click-I ordered it. Too bad that'll help you decipher code, not th eWeb community. So what makes a programming a VCR isn't as easy as programming code, but those high page important? It's how many other buying something online. tech acronyms and hybrids. Go pages are linked to it. Pretty nifty, eh? • Health nut. Can magnets relieve to bttp://www.techweb.com/ • It's on video. We've heard a lot about pain? Whatfats are good for you? Can encyclopedial, type in aterm and the splits lately, but some things are starting walking improve your mental health? encyclopedia will search its more to merge; try cable television and the Find out on http:/twww.onhealtb.com. than 13,000 definitions and return a Internet. Just the other night, I tried to an online health magazine. layman's definition of the term. record a show from my favorite news Have you come across any inter • Do you Google'? Check out channel. To my dismay, I hadn't set the esting sites, either internal or exter http://www.goGgle.com. for a differ VCR properly but immediately, I jumped nal? Let me know through the HP.Now ent way to find information on the online and went to http://www.cnn.com. feedback form. September-Qctober 19l,19 23 lilt takes achild..." "He's likE' a surrogatE' mothE'r," says hundreds of adolpscents who Jleed a By Desi-ree Sy{.vestcr Rina ?l:Iae Acosta. Corning from a high little extra guidanC'P. school studl'IIl, this is an oddly flat Julius originally concpi\'pd PCLL, tering descriplion of Julius Paras, an acronym for People TJnitf'o1hrnugh director of Projecc PULL, community of learners and This year's participants came for leaders through the innova many reasons but they all left with tive and effective application an increased understanding of them of academic, community selves as well as Filipino history. based, media, professional "It really gives the students a sense and technical resources." of identity and allows them to see The Academy is the what kind of leaders they can be," organization's leadership says Michelle Mariano, HP database challenge and college systems engineer and member of preview for high school stu the Academy '99 core team, from dents. PULL held its third Roseville, California. Academy in June, which was Julius' work continues even the first supported by HP beyond Project PlJLL. In 1985, he ~ith both ftmding and equip co-founded the HP Asian-Pacific ment. Academy '99 drew 21 Employee Network CHAPEN), a Filipino-American high professional-development group. school students to a week Besides the irreplaceable reward long, residential program at of influencing people's lives, Julius' Stanford. The workshops mantel is overflowing with presti included leadership training, gious awards. He was the recipient Philippine and Filipino- of a 1999 Filipinas Magazine Achieve with a lot of my peers," he says. "I American history and college ment Award and was selected by A. thought there was something wrong admissions preparation. Magazine as one of the 10 "Hot Asian with that." "I've always been very conscious American Entrepreneurs Lnder 30" So, he transfonned his virtual net about my academics," says high both for his work with Project PLLL. work for Filipino youth into a non school senior Frances Borromeo Julius' tremendous devotion to the profit organization, PULL (http://www. from Sunnyvale, Califomia, "but this community doesn't leave him with projectpull.org), in 1994. Since then, program showed me you don't have much spare time. He's definitely a it has grown to be a community insti to be the ideal 4.0 student to get bachelor with a big heart. "The stu tution with an extensive reach. into college." dents at Projcct PULL are my family. Julius, HP's transition coordinator, PULL has a 100 percent success IfI were married and had a family of says he owes a lot of the organiza rate-all participants from the my own it would be a little different, tion's success to the opportunity he project's fU'St year (1997) are in college. but I'm cool for now," he says. received from HP He approached his According to Julius, Academy He hopes to continue to build sup supervisor at HP after receiving a participants are a mix of affluent port-brick by brick-for that family. grant from the Echoing Green Foun students, fonner gang members and "(U.S. first lady) Hillary Clinton says, dation, a philantlnopic foundation in students from the Bay Area and other 'It takes a village to raise a child.' ~ew York. "I was able to work part parts of the country who display a Well, who's in the village?" Julius time at HP for a year so that I could high degree of motivation and initia asks. "We have schools in the village, spend the rest of my time developing tive in their chosen academic and businesses in the village and a million this program," he says. extracurricular activities. other institutions. So, I'm putting that Julius is back at HP full time help Julius' motivation and zeal proved to the test." M ing to make the company's split into infectious among young people. two companies nm smoother. "He walks the talk," Rina Mae (Desiree Sylvester, a Santa Clara Like his role in HP's transition, Acosta, high school senior from San [California! University Communi Julius wants to create a sense of Pablo, California, says with a smile. cations major, was MEASURE's 1999 community among Filipino-American "He's living his dreams and he's living summer intern.-Editor) youth. Project PULLs programs, for his goals." example, are designed to "build a September-October 1999 25 LETTER FROM LEW PLATT his is my last letter HP's retiring President to employees in and CEO Lew Platt MEASURE and I'd reflects on his 33-year like to take this opportunity to look career. at how far we've come in the last eight years and where I see the company headed. I also want you to know how strongly I believe that HP is in good hands with Carly Fiorina as president and CEO. First, I'd like to bring you up to date on my plans after my retirement from HP. Since we announced on March 2 that HP would split into two companies and that I would retire when a new CEO is fully on board, I've received many interesting job offers. The offers have included board memberships for nonprofit organizations and for-profit companies, as well as CEO positions. career with HP. When I graduated At this moment, I'm weighing all from business school in 1966, the offers as I complete my commitments theory was that you switched com to HP as non-executive chairman of panies every two or three years to the HP board of directors, and of build your resume. But I was fortu overseeing the separation of Agilent nate to join HP's Medical Products from HP. One of the things I plan to Group during an exciting, high-growth do initially is practice better workllife period. There wasn't time to get balance. I intend to travel with my bored or a reason to move on; there wife, Joan, and get in some long were always new challenges. overdue fishing. Whatever course I I also was fortunate to work for take, I definitely plan to stay active. managers who were concerned about Actually, staying active never has my personal development. They been a problem dming my 33-year insisted that I move around to get experience in marketing, manufactur ing and engineering. With that expeli ence, I was able to move into a G.M. position in 1974 while at the Waltham (Massachusetts) Division. In 1980, I moved to Palo Alto to head up what was then the Analytical Group. 26 MEASURE The media interest in retiring President and CEO Lew Platt and his successor, Carlv Fiorina. was incredible on July 19, the day of the announce ment. The 12-hour day included (left photo) six TV interviews during a satellite media tour and two conference calls (bot tom photo) with financial analysts. we barely had much visi bility a few years ago, The basic charncter of HP hasn't changed in 60 years-and that's pretty amazing when you consider how much we've grown. This is an ideal time for me to retire and leave HP in Carly's capable hands. She has been on my list of candidates since we began the CEO search six months ago and I'm thrilled that she was our unanimous selection. She brings a fresh perspective and will make the changes that are needed for even greater future success. Although 1 won't be In 1984, I began my career in the $118 per share. Lots of people con working at HP after this year, I'll computer business-and nothing has gratulate me on these results, but it's continue to be a significant share been the same since. Over the years, I you who deserve the credit. holder-so you know I'll watch had virtually all parts of the computer Yes, we've had our challenges dur Hewlett-Packard with great interest. business reporting to me. That gave ing the past couple of years. There With Carly's experience, talent and me broad experience within the was the Asian economic crisis, a lack energy-and your enthusiastic support industry, which was very helpful of strategic clarity in some of our -1 believe that a great company will when I became CEO in 1992. I have businesses and a slowness to capital become even greater. Thanks for 33 very fond memories of that period ize on our experience in the Internet memorable years. because John Young did an elegant space. But I feel good that we've job of handing off the CEO responsi started a period of renewal, intro bilities to me. duced new initiatives for growth and Being CEO has been a fantastic begun reshaping HP's infrastructure. experience, largely because of the HP people have stepped up to the tremendous support I've received challenges once again and your from HP people. During my tenure, creativity is beginning to bear fruit. we've been able to increase revenue I'm very proud of our overall nearly 300 percent; earnings have financial performance, our profitabil increased more than five times, and ity and our recent growth. We're one lIP stock has hit an all-time high of of the most admired companies in the world, even in some countries where September-October 1999 27 LETTER FROM CARLY FIORINA ust as I imagined, the two month period since I joined Hewlett-Packard has been one of the fastest-and most exciting-in my life. I've received and read many hun dreds of e-mails from employees, talked with key customers and Lew Platt, HP chairman, and Carly Fiorina, HP president and CEO, drew enthusiastic applause and cheers from the standing-room-only Cfowd at HP World '99. More than interviewed potential board members. 10,000 HP devotees attended the San Francisco conference. I've also been interviewed by seem ingly every media person in the • Focus and leverage. HP's on the agenda included revising our world, and devoted considerable time participation in many markets is wide business plans for FYOO and FY01, to understanding HP's businesses, and shallow. Dave Packard used to and examining our compensation challenges and opportunities. talk about businesses suffering from programs so we can make sure we Seeing HP from the inside has con "indigestion." We're experiencing attract and retain the very best people. firmed my belief that this is one of some of that indigestion right now. During the next few weeks, we'll the world's truly great companies. If we're going to play to win, we need communicate the results of our meet While I'm confident about our future, a focus that is strong and deep. ing through Newsgrams, HP.Now and there are several areas where I know • The customer experience. messages directly from me. we can achieve and contribute more. We have the ability to develop much I'll also be visiting a number of The Executive ••••••••••• more intimate, long-term HP sites around the world this fall to Council and I have relationships with our see HP's businesses firsthand. I want been discussing these While I'm confident customers. We need to to meet as many of you as possible, areas at our regular about our future, there do a much better job of discuss our plans in more detail meetings, focusing on are several areas understanding every and-most importantly-hear your how we can become aspect of our customers' ideas on how we can make this great the undisputed leaders where I know we experience with us so company an even better one. in our markets. We've can achieve and we can continue to earn As we work together on these surfaced hard issues contribute more. their trust and enhance opportunities, we will be guided always quickly, grappled with their loyalty. by the HP Way. Our core values repre them in an honest way and already • The power of the lIP brand. sent a unique and sustainable compet started taking actions to address four We must more effectively leverage itive advantage in a rapidly changing key priorities: one of the world's great brands so world. The HP Way is our compass. It • Vision and growth. We need a that we begin to send much clearer has pointed this company in the right vision that will capitalize on HP's messages to our customers about direction for 60 years and it will guide unique ability to help our customers who we are and what we stand for. us unerringly into the 21st century. make their lives more successful, The feedback you've given me so more productive and more rewarding. far tells me you agree that these are In this vision, the Internet will serve the right priorities. What you want as a bond that connects customers to now are the details, including the HP and HP products, and links them specific plans for addressing these to their communities and the world. areas, the timetable for expecting Our vision must be compelling so progress and your role in helping us that it unites HP in the minds of our meet some very challenging goals. people and our customers, and We've just wrapped up our inspires us to even greater growth. September 13-14 Executive Council meeting, where we heard updates on our progress. Other important topics 28 MEASURE VOURTURN MEASUREreaders share their views on matters of importance. What's in a name? Amatter of timing At fIrst blush, the newly named com Although I think MEASURE articles pany-Agilent Technologies-seems should be timely, people are missing unique. However, a quick look at simi the boat by saying that MEA'JURE is lar names turned up Agile Company, the vehicle for time-critical articles. I AgileAutomation and Agile Inter believe MEASURE is the vehicle for continental, etc. renewing the HP culture, values and JOHNOLMER the HPWay. Norfolk, Massachusetts MEASURE educates us about There aye many more Agile-related other areas of the company. It is not companies, points out Bill Hahn, the vehicle for "required reading" or For the record I enjoyed reading yom' excellent Agilent VP. of Strategic Programs. time-critical commWlications from article on Lucent Technologies "But in the naming game, .. Bill my management chain. Those things (May-June 1999). I did, however, explains, "you only have a conflict come to me via e-mail so they know I notice an elTor. if you have a precise match, either get them. The article states that "every in spelling or pronunciation, AND DIANA MURELAGA Lucent employee was granted an you're in the same business. For Cupertino, California option for 100 shares of stock in April example, we cou-ld be another Hyatt, 1996." The 100 options actually were as long as we're not in hoteling. " Change-and my granted in October 1996, not in ApI;I. -Editor two cents worth The significance is that the broad I'd like to add my two cents with based option grant to employees was Success has a partner respect to MEASURE's future strategy. made at the time of the spin-off (i.e., Congratulations to MEASURE. I have I support the strategy providing con at distribution), not at the time of worked for HP almost 10 years and tent via the Web. Going that route will the lPO. the recent editions have been the provide an opportunity to be more SAM BERGER best I've ever read. timely and relevant to the changing Partner Until a couple of months ago, environment. PricewaterhollseCoopers success meant Hewlett-Packard. That being said, I think you should Palo Alto, California From now on, success has a partner: also continue making MEASURE Thankyouverymuch,Sam-Editor Agilent Technologies. Agilent will available in its more traditional form. always remind me of Hp, and HP You can take a lesson from some of will always remind me of Agilent. the trade rags. Although many publish Success will always remind me of a hardcopy weekly, I still can get an both of them! e-mail summary daily. The summary Please send mail ANTONIO DONIZETE SOARES contains URLs to the full text of the Do you have comments about Barueri, Brazil stories, in case I'm interested. something in MEASURE? If we PAUL GERWITZ publish your letter, you'll receive a Aminor botanical slip Rochester, New York Dr. Cyberspace MEASURE T-shirt. The "leaf motif" adorning the July Send your comments to Editor August MEASURE article on HP Jay Coleman. The addresses and An insightful article fax number are on page 3. Please employees meeting customers in I enjoyed re-reading the article about limit your letter to 150 words, sign Dublin, Ireland, stores is a four-leaf Lucent (May-June 1999), especially your name and give your location, clover. This is considered a lucky after our new CEO was named. We reserve the right to edit letters, charm by some, but is not the Irish Thanks for having the insight to emblem. A three-leaf shamrock is the feature an article about Lucent! traditional-and con-ect-motif. WENDY FONG CONOR MAGUIRE Cupertino, California Dublin, Ireland September-October 19\19 29 At the Women's World Cup final game the United States' team member Joy Fawcett (14) tries to get the ball from China's Sun Wen News from {9J, The U.S, won the match with a the HP world final penalty kick. By Desiree Sylvester -eration HP drop facturing G.M. Manager People Taking on the role of HP was flying high in Jlme Jack Faber. HP won out Jerry Grinstein, chair Internal Audit director for when 16 planes delivered over eight competitors, man of Delta Airlines, HP is Gord McLean. On 409 V-, K- and D-class enter including Sun and IBM. has been named chahman the Agilent side, Jennifer prise computing systems China decided to upgrade of Agilent Technologies' Thompson is now to China. its postal service in hopes board of directors. Join Intemal Audit director. Forty trucks loaded the of making a profit after 50 ing him will be Ned Lester Ezrati ha.<; been planes at BP's One Site years of existence. Bamholt, Agilent CEO, appointed an IIP v.P. He is Solution facility in Roseville, For HP, the complex along with current HP also director, Tax, Licens California. This delivery order required mounds of directors Walter Hewlett, ing and Customs. was only part of the enor paperwork to obtain the Thomas Everhart and The new G.M. of HP Edu mous order from the China required export and import Dr. David Lawrence. An cation is Geny Mooney. Post, the postal organiza licenses. "Altogether, more additional 3-5 directors Gary Fazzino will tion in China. than 90 people were directly are expected to be named head HP's Federal Public The systems make up involved in processing the to the Agilcnt board. Policy programs and about 60 percent of the order-not including the lnl\jet Imaging Solutions Wa.c;hington, D.C, office. $500 million equipment workers or engineers who has fonned a Region Oper Tony Ecock has joinl:'d order, according to built, tested, integrated, ations Office. The office the company as G.M. of BCC Systems d or shipped the will be co-managed by the Patient :YIonitoring Manu- •" says Mandy Chou, Phil Faraci and Pradeep Division. business administra Jotwani, senior VP.s ill manager in China. and G.M.s. Wholly Owned Bel'nard Merie is now Yokogawa Electric senior V.P. and director of Corporation has agreed the Consumer Products to sell its 25 percent own Business Organization, ership in HP Japan (HPJ), The new G.M. of the making HPJ a wholly Vancouver (Washington) owned HP subsidiary. Division is Larry Lesley, Hideomi Nakashima, Breakthrough president and G,M. of Researchers at HP Labs Yokogawa Analytical and the University or Systems, plans to retire California at Los Angeles November 1. Ryuji have developed a chemical Kanno ""ill suC'C'eed him. process that could lead Steve Hoffman has to computer components been chosen a.c; G.M. of no thicker than a single the yet-to-be-named imag molecule. ing division within Agilent For mort' infonnation, search Technologies. Newsgrams at http://hpno\\. hp.(·om!nc \\ s!ngh(luH'.1I tIll, it's time to put your Y2K New Renaissance Printing worries aside and discover Program of HP IJBU the artist within by entering Marketing. the HP International Millen HP employees are invited nium Quilt and Art Compe to create a quilt, paper or tition, sponsored by the mixed-media artwork com URlJ; inside HP This issue's related Web addresses: HP helps score ment. Overall, net surfers provided more than 1,800 http://www.india.hp.coml the winning kick from 127 countries con products to help run the HP India Software Operation site When U.S.'s Brandi Chastain nected to the site, which WWC Web site. For more htt.p:/Iagilent.hp.com made the winning kick for was available 100 percent details about HP's involve Agilent Technologies intranet site the 1999 Women's World of the time. ment, jump to http://www. http://hpweb.corp.hp.coml Cup (WWC) championship HP, an official sponsor sponsorships.hp.coml publishlhwp/stock/ game, four teenagers in the of the Women's World Cup, WWC/index.htm. stok_opt.htm crowd probably were yelling HP stock information Web site louder than anyone else. ~ ht.tp:/lhpnow.hp.comlnewsl Thanks to HP's "Color is g two/generallhrl a Kick" contest, these four g HR-related transition information U.S. soccer fans and their http://hpnow.hp.com families received an all HP.Now Web site expenses-paid family week http://verticalmarketing. end to the fmal games in cv.hp.comlcontest.html Pasadena,Caluonria--and Millennium Quilt & Art Competition a complete HP PhotoSmart system. The winnecs URLs outside HP ranging from 12 to 14 years This issue's related Web addresses: old-submitted their essays http://www.agilent-tech.com and photos illustrating three HP wins bronze printers, two HP Digital Agilent Technologies external site qualities important to soccer Seven thousand athletes Senders and two HP mop http://www.nths.nvusd. and imaging: speed, accuracy from nearly 150 countries iers. For the first time at k12.ca.us/ and no compromises. competed for gold in the the garnes, the HP LaserJet New Technology High Web site The official WWC Web 1999 Special Olympics 3100 printer/fax/copierl http://www.techweb.coml site-powered by HP 9000 Summer World Games scanner made it possible encyclopedia! Enterprise Servers-had with a little help from HP. to fax an athlete's medical Definitions for high·tech terms more than 66 million hits As a bronze sponsor, HP information directly to the http://www.google.com during the 32-game to\llna provided the games with site of an emergency New search engine 130 HP LaserJet 4050N allowing for immediate help. Find out more at the http://www.enn.com Special Olympics Web site: CNN interactive Web site iii~ii=:;i:!~ii!~~http://wwvv.SpeCialOlymPiCS. http://www.onhealth.com ~ orgj, or jump to http:// Online health magazine position, using an in~et www.99games.com bttp://www.projectpull.org color copier or printer for the fmal stats. Project PULL Web site keeping the Year 2000 http://www.sponsorships. Millennium theme in mind. hp.comIWWC/index.btm All entlies must be sub WWC sponsorship marketing site mitted by November 1. September-October 1999 31 PARTING SHOT Moving at gondola speed VENICE, Italy-During a summer vacation last year, HP's Bill McConnick of Corvallis, Oregon, strolled the sun-streaked sidewalks of Venice with his wife and discovered a couple of local customs: If you hail a taxi, don't step off the curb. And if you chase after a departing bus, make sure you're wearing a life jacket. It's hard to Calk about Venice and not mention its uniqne mode of transpor tation: water-buses, or vaporetti-and gondolas carry thousands of resi dents and visitors around the city and to the outer islands every day. So, why are these HP Vectra PCs cruising the canals? According to Bill, water travel is the standard mode of delivery for parcels and goods in Venice. "It was very interesting-and sur prising-to see HP prod ucts halfway around the world, sitting in Venice on the deck of a gondola," he says. Amid Venice's breath taking landscape lined with FedEx world, so it was In this picture, modern place and just didn't fit with palaces, chapels, churches, truly enjoyahle to be able technology definitely the slow-paced lifestyle I villas and theaters. Bill rel to slow down and take clashes with its classic had seen and experienced," ished the leisurely aquatic away the noise of the busy Venetian background. "The Bill says M transit. "We are used to a streets," he says. computers seemed out of For U.S. address changes, use Change of Address fonn in Personnel on the Web at !lttp://w~n;;wd•.. ,.'lH·pJI';"'·"tJl. Flidl HEWLETT' Bulk Rate a::e.a PACKARD U.S. Postage MEASURE Magazine Paid PO Box 10301 Pennit 3917 Palo Alto. California 943m-08!10 Portland. OR