A magazine/or Hewlett-Packard people September-October 1994 FROM THE EDITOR
he old joke goes, "If you ucts are modem, high-quality and laid all the economists affordable-all features that con end-to-end, they still sumers demand today. wouldn't reach a As one plant manager said, "What conclusion." do maquiladoras mean to me? They I thought about that line recently mean that I have ajob." when I spent a few days on the HPJ of course, has chosen not Texas-Mexico border researching a to operate maquiladora plants in MEASURE story on how HP's Test Mexico. The company's only manufac and Measurement Organization sells turing site is in Guadalajara. But HP its products on both sides of the certainly benefits from its sales to border (see page 9), maqui.ladoras. And the people who Now that the North American Free work there benefit financially, too. On the cover: HP employ Trade Agreement (NAFrA) has been The maquiladoras received a lot ees around the world are in place for a year, what are we to of attention the past few years as experimenting with various forms of telecommuting. conclude? the debates over NAFTA raged. It's Does this work option make It's too soon to label NAFTA a suc interesting to note, however, that sense for you and your job? cess or a failure. I think most econo maquiladoras have been around for a Photo by Douglas Peck. mists would reach that conclusion, quarter-century-Iong before NAFTA But from an HP standpoint, I think it's and Ross Perot were household names. clear that the company will benefit They've been the No.2 revenue gen from the new "openness." erator for Mexico-after oil-for NAFTA will enhance HP's ability to nearly three decades. export to and operate in Mexico. It's Have NAITA and the influx of essential for HP to grow its interna U.S, and other manufacturing plants tional business, and to create jobs in revamped the Mexican economy com the United States and abroad. pletely? Hardly. I vividly remember Economics aside, I learned a great seeing one dilapidated shack not far deal during my days on the border. I from a maquiladora site and thinking, got to see several maquiladoras "I'll bet that no one has lived in that twin plants-firsthand and talk to the place for years." Then I saw what people who work there. must have been a 5-year-old girl come I didn't see sweatshops or run out of her home, Yes, I could have wit down factories that spew pollution nessed that scene in countries around and take advantage of workers. the world, including the United States. Indeed, the plants were modem and Somehow, the dilapidated shackjust the people were happy. Ifyou ques a few yards from the high-tech tele tion how hard-working Mexican communications factory captured the people are, just look at the staggering irony of late 20th century Mexico. number of modem products they Mexico still has a long way to go produce. socially and economically. I hope HP Admittedly, I toured only high tech is there to help dUring the journey. telecommunications factories. And Jay Coleman I'm sure they have their share of prob lems, just like plants in the United States and Canada do. But their prod
2 MEASURE THE INSIDE STORIES
FEATURES DEPARTMENTS 4 When the office isn't at the office 21 People For telecommuters, work is not somewhere you San Diego employees rally around go, but something you do. a special manager, Raj Kirpalani, who took a personal interest in 9 HP's booming border business their future. A small team of HP test-and-measurement engineers is posting impressive results along 24 On my mind the 3,OOO-mile L.S.-Mexico border. ''I'm losing my job," one employee in Boise, Idaho, explains. 12 A primer on financial performance Pag 14 How is HP doing? Here's a guide to those 26 Your turn accounting terms that tell the story. MEASURE readers share their views on matters of importance. 14 Oh, Canada! MEASURE takes a photographic look at 27 Letter from Lew Platt HP Canada. HP's chairman, president and CEO discusses how complacency can 18 lIP puts Rover in the driver's seat destroy a great company-and how TestBook-a custom instrument from HP's HP can avoid that path. Integrated Systems Division-accelerates vehicle repairs. 28 ExtraMEASURE Page 21 News from around the HP world.
32 Parting shot MEASURE readers share their best personal photos.
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, 20BR, POBox 10301, Associate editors: Palo Alto, California 94304·0890 U.S A. The telephone number is (415) 857·4144; the fax number is (415) 857·7299. Cornelia BaVley, Betty Gerard, Mary Anne Easley ·Copyright 1994 by Hewlett·Packard Company. Material may be reprinted with permission. Art Director: -Accredited Business Communicator by the International Association of Business Communicators (IABCl. Annette Vatovitz Hewlett·Packard Company is an international manufacturer of measurement and computation products and systems Graphic designer: recognized for excellence in quality and support. HP employs 97,900 people worldwide and had revenue of $20.3 billion Thomas J. Brown in its 1993 fiscal year
Photo research: MEASURE magazine is printed on recycled paper with vegetable·based ink. Carol Parcels *
September·October 1994 3 When the office isn't at the office By Jean Burke Hoppe They are changing the workplace by doing their jobs from their homes, airports, hotel rooms and satellite work centers. For telecommuters, work is They are comfortable residents of cyberspace-they have not somewhere you go, but modems and know how to use them. That they are not sitting something you do. in an HP office building is invisible to HP customers. Nearly all of them claim their productivity has skyrocketed since they started telecommuting. Meet the typical HP telecommuter: • Ulrike Roehrenbeck, technical translator for the Boblingen Medical Division, visits her HP office once or twice a week. The rest of the time she's in her basement office in her home in Moetzingen, Germany, a small village on the border of the Black Forest. Armed with her PC, phone, medical reference books and large blocks of quiet time, her productivity-measured by pages translated per day-has increased 35 percent. • Katie Trippet became the inside rep for her Fullerton, California, sales team when she moved to Lake Tahoe, California, this year (because her husband purchased a sports recreation business there). She operates as the central point of information and sup port for her three team members, who are all on the road working with customers. She travels to the Fullerton office once a month for meetings with employees, customers and resellers, as well as to the Mountain View, California, Telesales Center. It's not unusual for Katie to spend 90 percent of her time on the telephone--"an intense adjust ment" from her days in the field. Her switch to the inside sales rep position, which allows her to work from her home, meant HP could keep a valued employee with 12 years of experience. • Randi Swisley, project manager in the Information Networks Division's Systems Interconnect Lab in Roseville, California, has worked at home one day a week for
4 MEASURE Ulrike Roehrenbeck's productivity has increased 35 percent since she began telecommuting from her home office in Moetzingen, Germanv. about five years. She says she can get or empty HP cubicle he can borrow A number of factors are driving the three times as much done that day as because he's on the road about 35 increase in telecommuting, says Jerry she can in the office. percent of the time. Cashman, alternative work options To ward off visits from her young Because Jon's portable computer manager in Corporate Compensation. children, Randi takes everything she'll serves so often as his desk, that's Among them: need for the day to her upstairs office, where he keeps his family photo. In • the never-ending search for the most including food and the coffeemaker. his education job, he's grappling with efficient use of resources; "If I come downstairs and they see the issues that surround managing a • laws aimed at reducing emissions me, it's all over." dispersed and/or mobile work force. and improving air quality; She has set up most of her staff The point is, of course, that there is • work/life balance and diversity with home workstations and an ISDN not really a typical HP telecommuter. issues; and connection so they can work from While the field is further along the • the recent explosion of technology, home, too. "My expectations are path in terms of numbers, this rela which has created many effective higher ifpeople work at home," she tively new work option is by no remote communication tools. says. "They should be getting more means limited to the sales force. HP HP approved policies and guide done. Ifhearing that makes you cringe, people the world over are taking the lines for U.S. telecommuting in Febru then you've never teleconunuted." office home and more will be doing so ary 1994, though there has been a lot • Jon Wagner has two jobs and two in the future. of informal activity for years. bosses. He is human resources devel Link Resources, a New York-based "Nothing is happening overnight opment manager for HP Canada and market research frrm, says there are like it is at some other companies management development manager 7 million teleconunuters in the United where they're closing offices and giv for the Americas field organization. States today, and that number could ing people a computer and calling He considers his office to be whatever reach 25 million by the year 2000. card and telling them to go do their airplane he's on, hotel room he's in jobs," Jerry says. "HP is taking a more gradual approach saying, 'Here's a
September-October 1994 I) To escape the telephone-where she spends 90 percent of her time-Katie Trippet takes a lunchtime stroll near her Lake Tahoe home, work optio/l that llli:rhr make Sl'nSf' ror SOIlH' or,_ OUt' J1('ople: '. Tilt' IOllgt'~l-st
Sep[cmbcr-October 199-1 7 Office
• :\lanagers need to develop new and Roseville's RancH Swisley thinks (Preela YU'e writel' and edilor Jean better methods for setting expecta the HP corporatE' culturE' will adapt Burke JIoppe-a jonner rvlEASCRE tions. creating opportunities to swiftly to remote workers and editor-produces elect-ronic news/el observe and asSE'SS skills and give telecommuters. te)-s for HP em.ployees in As-ia Pacific feedback, coaching and regular "1 see telecommuting as a modem and Latin Al1U'1'ica from her home i.n communication. way to do thE' lIP way. LE't's face it. Lincoln, Nebmskcl.-Editor) • Remote workers may need some People are taking work home any\vay psychological support to help them -engineers have always been known r feel part of the organization, to help for working odd hours, long hours. them understand the HP way. ::\ly feeling is, do all you need to get • A nE'\V type of orientation needs to done-all the background paperu;ork 10 must-haves for be developed for new employees \vho -comfortably and quickly at home your HP home \,,'on't be spending time in an office, in and then schedule all the human inter order to teach thE' HP way and the fIP action shIff at work. office / way of doing business. ';1 need to be C'xtremely available 1. As author Virginia WooH • With the concept of ;'team" chmlging to my people hecause we're working advised, a room of one's own is radically, managers and other employ on a heavy-duty projec.t. ~ Randi says. best. Serious telecommuting is ees need to learn new ways of ddin "Because of that one work day at not a kitchen-table endeavor. ing the team purpose, vision and home, I can be." M shared plans. 2. The cooperation of your fam ily or other household members. You need privacy, quiet, minimal - interruptions and distractions. standard cubicles and few common 3. Flexible office furniture, Learn the lingo areas. Not economical if a lot of including an adequate work Telecommute: At HP, it's one I people are working at home and surface, chair, bookcases and alternative work arrangement ~ cube is often vacant. Opportunity filing cabinet. available to employees. Must have for savings by capturing the 4. Personal computer. manager approval. Job is performed vacancy and putting it to use. 5. Fax machine. -either partially or completely The village concept: Features 6. Printer. from a site other than a primary smaller and fewer individual work business location (such as home spaces and increased team space. 7. :vIodem for network access to or a satellite work center). Typi Features shared equipment. the Internet, databases and HP's cally not a full-time work-week e-mail system. Hotelling: Features the removal of arrangement. all individually "owned" space and 8. Voice mail. The virtual office: How some replaces it with flexible shared and 9. Business-devoted phone ser envision the future. In the extreme, private work space. A large number vice. Two lines are ideal, one for it means the demise of private of mobile workers or telecom voice and one for data. offices and equipping employees muters can access these smaller 10. Company-recommended with mobile computing and com work spaces by reserving them in sofrnrare tools, which vary munication devices that allow them advance. The ~etwork Printer Divi according to job needs. to conduct business from wherever sion finance group in Boise is using they are-a traffic jam, a restau the village concept and plans to • rant, a home office or the beach. pilot hotelling. says Lyle Hurst, The condo concept: Typical HP who was division controller when office configuration with lots of the experiments began.
8 .\IEASLWE Henry Luna, a field engineer in HP's Test and Measurement Organization, stops at a downtown Matamoros, Mexico, telephone to confirm his next customer appointment. HP's booming border business By Jay Coleman ALONG THE TEXAS-MEXICO essence of the high-tech industry BORDER-Henry Luna steers the in Mexico today. For while the A small team of HP rental car carefully around the suit maquiladoras-the factories that line case-sized potholes in the streets of the Mexican border-produce some test-a nd-m ea sure ment Matanloros, Mexico. ofthe most advanced electronic and engineers is posting As one of only two Hewlett-Packard telecommunications equipment manu impressive results along Test and Measurement Organization factured anywhere in the world, the (TMO) field engineers who works the country continues to face huge eco the 3,DDD-mile United entire 3,OOo-mile U.S.-Mexico border, nomic challenges. States-Mexico border. Henry lrnows his way around Mexico Henry leads a small team that is -literally and figuratively. focused-obsessed, really-with "One of my goals is to keep our providing excellent service to HP's maquiladora customers in the 20th maquiladora customers. How's it century," Henry says. The statement working? Henry's team surpassed its has an ironic twist as Henry eases the year-long sales quota for TMO prod car around a man riding a donkey ucts halfway through the year. powered cart. The focus--U.S.-based TMO field That scene--centuries-old tech engineers selling to maquiladoras on nology coming face-to-face with the both sides of the border-is unique ultramodern 1990s-captures the
September-October 1994 9 Border
for HP. Henry's three-year plan is to products and sell finished goods The Deltronicos plant manufac develop a strong customer base through international markers. tures 85 percent of all General Motors and excellent customer service by Typically, warehouses are located car radios. The challenge for suppli October 1995, then tum the sales on the U.S. side of the border and ers, Mark says, is to provide the best manufacturing plants on the l\'lexican price, quality and service-"lOO per side. Nearly 500,000 employees cent in the box." • • EI Centro work in more than 2,000 maquila.s "HP products tend to be 'pricier' San Diego • Calexico throughout Mexico. than some competitors," Mark adds, .,_.•. _..,.... -- .. '_'.1_._._, .... Yuma "but the equipment is of excellent Tijuana. .Tecate Mexicali.' .-'...... Rio Colorado quality and Henry gives us great .11 Lui ". service. We have high expectations of our vendors and HP does a region over to the HP pretty good job of meeting those Mexico team. .... expectations." "The maqu'ila-doras represent a great opportunity for HP," Henry 1I1-~ . .-._-, Nogales Dillin,,, says. "Our only limitations are the While Henry spends . vast territory and the large number the m 10 MEASURE we produce advanced telecommuni cations equipment for markets world wide. Maquiladoras are a vital part of Mexico's economy." Indeed, the 25-year history of maquiladoras has meant several cul tural changes in Mexico, Henry says. Lunch used to be a two-hour affair, from 1:30 or 2 p.m. on. Now lunch usually is noon to 1 p.m. And produc tion workers-mostly women work ing outside the home for the first time-earn the same or more than their husbands. HP spectrum analyzers test TV-top signal converters at Edemsa-Jerrold Communications. At Edemsa where Ramiro Chavez Torres. test·equipment engineering manager. talks with Henry. '.'.'•••, EI Paso Jerrold Commu nications, the "The TV market is a very competi of more than 3,000 T:vIO products is .'," Ciudad", cable TV tive arena," says Carlos Aguirre, test ample ammunition to open doors in a equipment manager. "I became a lover Juarez "'" mushrooming industry. of HP equipment when I first used it uHP-in the U.S. and Mexico " ., , in college. But sometimes the HP wins along with our customers ...... equipment has Rolls Royce capabili because they can produce the , ties when we really only need a Volks high-quality products that we as division of , wagen. My customers say the same consumers want," he says. "The Generallnstru "I ma.quilad01·as win, too, by continuing ment, in Mata I, to employ Mexican workers and moros, 1,100 .~ ... ' .. improve the country's economy. employees work " .... !' My goal is to establish a three shifts and " ". ! , , ! strong territory by October ...... I churn out 120,000 TV ". ,. ' .. 1995 to turn over to the HP ' .. top signal converters per . ,i , Mexico sales team. I'm month. HP spectrum analyzers ". • Eagle Pass trying to work myself playa key role in the test phase. Piedras Negras , out of a job. Then I'll "When an instrument goes down , look for another and must be repaired or replaced, we thing to me. We all '\ challenge." M need a one- or two-day response-not have to beat our material two weeks," says Rarniro Chavez costs and labor costs to stay '., Torres, test-equipment engineering competitive." ~\...... manager. "As you can imagine, Henry For Henry, an eternally ! Laredo and I talk often on the phone." optimistic man, the challenges ... A half-mile down the road at Zenith are great, but the rewards are Nuevo Laredo ~ I Electro Partes de Matamoros, 800 even greater. It isn't just 3,000 " workers test 4 million cable and TV miles of territory, it's 3,000 '., tuners a year, and Henry hears a miles of opportunity. His catalog , familiar refrain. '...... • McAllen ' .. ...,...... Brownsville Reynosa ,._._.... 'It.,,_• Matamoros• September-Ocrober 1994 11 or Ing • By Betty Gerard With Hewlett-Packard Company's •Another asset is accounts receivable 1994 fiscal year drawing to a close at -the money that customers owe the end of October, a rundown of the HP for products or services received. How is HP doing? Here's a terms used in the company's balance Obviously, the sooner the money guide to those accounting sheet and consolidated statement of comes in, the better-so HP has terms that tell the story. earnings which will appear in the working capital and doesn't have to annual report might be useful. borrow money. Here's a layman's explanation of • Inventories also are assets (includ some key terms used in the annual ing fInished goods and the bits and report or quarterly earnings state pieces that will go into products). ments, and a sprinkling of questions to answer. As you'll see from the boxes, HP Question: Is it also has some terms of its own that bad to have a lot are used internally. of inventory? Answer: HP The consolidated balance sheet IlloOII_'-' watches inven- (page 28 in the 1993 annual report) __..LLIJLI...... -- tory closely, starts with a rundown of assets: those because a lot of things which HP owns. money can be tied up in products sitting • Some assets are obvious-such on shelves that could be at work funding as cash and equivalents (Treasury the business. Needs will differ-if a large notes, stocks, bonds) and slwrt-term volume of products turns over rapidly, investments. more stock will be needed as backup, for instance. Long shipping lines-with prod ucts on the high seas for a month-make Question: When inventory go up. There are also other fac does an order tors to consider. become a sale? Answer: A sale is recognized when • Property, plant and equipment the product is (sometimes abbreviated as PPE) delivered and includes land, buildings and equip accepted by the customer-even if ment owned by the company. The the money hasn't yet been collected latter two items can be depreciated (accounts receivable). The terms sales over time, returning some money, but and shipments mean the same. land cannot. At the end of 1993 HP 12 MEASURE ducing and selling goods or services. operating expenses-before taxes Question: How These are broken down as cost oj and dividends. does RDA (return equipment sold (labor, materials and • Net earnings are what's left after on assels}fit into overhead that go into making prod all expenses and taxes have been all this? ucts) and cost ojservices (service deducted. (yVe didn't discuss the item Answer: Starting reps' labor, replacement parts, etc. in July, all of involved in providing support HP's businesses services). Question: What is began measuring RDA along with mea net profit? suring net profit in order to get a true Answer: The picture of the cost of doing business. Question: What same as net (MEASURE will cover the concept of RDA do the terms cost earnings. Some more fully in a later issue.) ofgoods sold times also called and cost ofsales net income. The mean? What term net profit margin (or net profit had about $7.5 billion invested in the are operating percent) is net earnings divided by net places where HP people work. expenses? revenue-which gives the percentage at The rest of the balance sheet deals Answer: For legal reporting, the Securi revenue that actually results in profits. with liabilities and shareholders' ties and Exchange Commission requires a equity. Liabilities are what HP owes breakdown of the direct cost of manufac to suppliers; federal, state and foreign turing products lcalled "equipment") and of taxes-but they cost HP more than income taxes; other taxes, import providing services. However, within HP $600 million in 1993.) duties, profit-sharing and loans. HP's these are lumped together as cost of • Earnings per sha're is a ratio dear to balance sheet also shows long-term goods sold (also known as cost ofsales). the investment community. Divide net debt ($659 million in 1993). Sha1"e Operating expenses refers to costs of earnings by the number of shares of holders' equity is the value of stock R&D, selling, general and administrative. common stock that have been issued. held by shareholders. HP reserves (The latter three categories are some some stock for the employees' stock times abbreviated within HP as SG&A.) These are the terms used in HP's purchase plan, stock option plans and legal reporting of its operations other incentive compensation plans. to shareholders and the outside Let's go to the next major chart: Other expenses include R&D, sell world, as well as some internal HP ing, general and administrative. equivalents. The consolidated statement of • Earningsjrom opemtiortS is net In fact,the company has a whole earnings (page 24 in the 1993 annual revenue minus the cost of sales and vocabulary of financial terms used report) is the big picture of company internally for management purposes. profitability for the year. One example is cost per order dollar • Net revenue is the money HP Ouestion: What is (CPOD): orders divided by field sell receives from the sale of equipment operating profit? ing cost to determine the average cost and services before any expenses are Answer: The of getting an order. Another is bcu:klog: taken out. Revenue typically refers same as earnings orders that have not been shipped. to net revenue. from operations. But these terms, while significant for • Costs and expenses are everything Another term running HP's business, are not part of across the board that goes into pro meaning the the legal language that appears in the SllmQ thin.!:! s pro It from Qpr/fstians, annual report. M September-October 1994 13 IN FOCUS Oh, Canada! By Heather Lynch Covering nearly four million square miles in total land area-and six time zones-Canada is geographically the second-largest countIy in the world. What is it like to conduct business in this vast region? ~Distance is not a problem," says Gordon Power, a customer engineer and one of two HP employees in the St. John's, Newfoundland, office, which is located about 800 miles from the nearest HP office. ~With limited resources I've become ajack lIbOVl! of-all-trades." Clint Wilson (right), an employee HP Canada., a wholly owned sub of HP customer MacMillan Bloedel, shows HP customer sidiary of HP, opened its first office engineer George Meier the in Montreal, Quebec, in 1961. Today Lower Cilmeron Valley-near HP Canada has more than 27 sites, Vancouver-which was refor ested six years ago with including five manufacturing loca Douglas fir lind balsam trees. tions, all with R&D activity. HP purchased Panacom Automa left, tion Inc.-its first Canadian manu Each year, to celebrate the facturing operation-in 1983. As famous Calgary Stampede, Hal Dawson, sales engineer for HP's Panacom integrated with HP, it spe Test and Measurement Organi cialized in hardware, particularly X zation in Calgary, invites friends tenninals-high-perfonnance, low lion, emigrated from the United and colleagues to visit his ranch and kick up their heels at an cost tenninals that stand alone or Kingdom 27 years ago and says that old·fashioned barn dance. complement workstation systems. Canada has fulfilled most, if not all, of Overcoming geographical obstacles his expectations. "Canada is a countIy right may not be difficult, but the province of generous people, and maintains a Hundreds of thousands of peo tremendous contrast both in climate ple come to the Canadian side of Quebec offers a different challenge. of Niagara Falls each year to "There's a law in Quebec mandat and scenery." M see the falls' raw power and ing all business be done in French, so majesty. Just downstream is (Heather Ly'nch, a student at Ontario Hydro, an HP customer every document must be translated," that harnesses electric power says Ginette Tessier, branch business California Polytechni.c State Univer from Niagara Falls at its manager in Montreal, Quebec. "It's a sity, San Luis Obispo, was a 1994 hydraulic generating station. continual challenge." summer intern in HP's Corporate Alan Holdway, sales manager for Communications department. the Test and Measurement Organiza Editor) ONTARIO MINISTRY OF CULTURE. TOURISM & RECREATION 14 MEASURE above left above right Bombardier, a multinational In the Canadian capital of company known for its Ski-Doo Ottawa, where HP Canada has snowmobile and for building a 11Z-person sales office. the trains, aircraft and other equip pomp and circumstance of the ment. buys HP workstations. changing of the guard takes personal computers and X place every hour on ttle hour. terminals. Daniel Dumas nefti. Bombardier's Management above Information Systems vice presi dent. shows HP sales rep Pierre Eugene Roman {right). assistant Pelletier a stainless steel model vice president for Bell Canada of a New York City subway train. Enterprises INorthern Telecom'. talks with HP Global Business left Development Manager Geoffrey Cairns lIaft} and HP Sales In an effort to clean up the Manager Paul Tsaparis {center' Great Lakes, the Centre for inside the BCE building. Inland Water uses HP equip ment to analyze the water. Robert Hong-You {right} from the Centre discusses the testing process with HP Analytical Dis triet Manager Murray Wigmore. 16 MEASURE above Nothing slows down Test and Vancouver's English Bay in the Measurement Organization Dis summer and skiing the slopes trict Sales Manager Don Lacey, at Whistler Mountain in the who enjoys sail boarding in winter. September-October 1994 17 MG project coordinator Maylin Evans (left) chats with HP's David Hughes not far from Oxford, England. where the new MGs are made. HP puts Rover in the driver's seat By Tom Ulrich OXFORD, England-If history is Rover emerged from an age of written by its survivors, the men and uncertainty in top form. women of Rover Group have a com In September 1993, Rover intro TestBook-a custom pelling story to tell. Ninety years in duced yet another subcompact. It has instrument from HP's the making, Rover evolved from a four wheels and a power supply, but Integrated Systems 19th century West Midlands bicycle does not look or feel anything like an manufacturer to a worldwide supplier MG. Its gray sheet-metal chassis con Division-accelerates of 21st century automobiles and trucks. tains a 486 microprocessor, a custom vehicle repairs. Provincial from the start, Rover instrument board, a LAN card, a CD adapted to the global marketplace ROM reader and a 120 MB hard disk through partnerships with British drive. This rugged analytical computer Leyland (1968), British Aerospace connects to an HP DeskJet printer (1988), Honda (1990) and BMW. and sports a flat-panel display. Driven to compete internationally, TestBook, a new generation of pre Rover recast much of its product mix cision instrument, grew out of a part before BMW purchased the lone British nership between Rover Group and automaker in 1994. Since 1990, Rover HP's Integrated Systems Division (lSD) Group has introduced four lines of in Sunnyvale, California. "We were coupes and sedans, launched Land looking for a company that had both Rover Discovery and rolled the first computer and test-and-measurement MG RV8 roadster off an Oxford pro expertise," says David Lawrance duction line. 18 MEASURE Hallgarth, Rover project director. "We were looking for a tool that combined diagnostic capabilities with vehicle information to assist a technician making a repair." "Rover did not want an off-the-shelf solution," explains John Morris, lSD's project manager. "So we worked with them closely to deliver a product that met their specific needs." Rover and ISD engineers equipped TestBook with a vehicle conununication interface, digital instruments, expansion slots, battery pack and a touch-screen display. Before this electronic toolbox Rover's Max Holland (center) and HP's David Higgens discuss the HP-designed TestBook arrived at Rover dealerships across system while technical instructor Vic White (left) puts a new Rover through its paces. the globe, technicians struggled to maintain all the computer technology With touch-screen technology and and the flight recorder gathers diag that design engineers placed in late a direct link to the engine-control nostic data. model vehicles. computer, technicians use TestBook AJtertherecordercapturesthe Diagnosing hard-to-find electrical to identify and repair faults that data three times, the customer returns faults, such as a flawed headlamp appear in the base engine and electri to the dealership where the technician assembly or an intermittent sensor, is cal systems such as anti-lock brakes, uploads the information to TestBook among the greatest challenges facing gear box, lamps and power windows. and completes the diagnosis. service departments. Industrywide, Ifa headlamp circuit fails, the tech Once a technician completes the they account for 20 percent of nician need not spend two or three repair, TestBook prompts the techni a dealership's repair log and are the hours pulling connectors apart, swap cian for the cause of the failure. Test major reason for repeat repairs. ping parts and perhaps creating new Book records this information and problems. The technician can follow transmits it back to the factory so that the prompts given by TestBook, per Rover engineers can design more reli form the necessary tests with its elec able automobiles and trucks. tronic tools and fix the problem TestBook reduces the time it takes "Rover did not want an off-the tasks that should take about 10 minutes. a technician to fmd an electrical or shelf solution. " TestBook tracks the fault to a sin engine-management fault by an aver gle wire or connector and specifies age of 20 percent and helps him or her the procedure for making the repair. diagnose the problem the first time. "Traditionally, a technician diag The technician can review the latest "Dealers are surprised by the use noses electrical faults by swapping service information, product manuals fulness of TestBook," says David. parts," David explains. and technical data using a built-in To outfit a workshop with all the TestBook combines computer-driven CD-RaM-based information system. equipment required to service and seIVice tools and diagnostic strategies For elusive problems that occur maintain a modem automobile, deal with on-line service information to on the road, a technician uses a cus ers must purchase an engine analyzer, guide a technician to the source of a tomer flight recorder (CPR) that he smoke meter, gas analyzer, diesel problem and suggest a repair. These or she plugs into the vehicle's data tester, suspension tester and wheel on-line tools find answers to complex communication link and sends horne alignment rack. "Every time a dealer electrical problems that technicians with the customer. When trouble buys a new piece of diagnostic equip with hand-held tools often miss. occurs, the driver presses the button ment, he buys a personal computer," September-october 1994 19 Rover '~, /J-..~v, 'f -'. I says Brian Cade, principal engineer I..:t r--... for TestBook. "From now on, a dealer needs to buy one PC-TestBook." "There are as many people involved in the development of TestBook as the development of the new J\'IG," says Paul Chappelle, Rover product man ager for the diagnostic computer. TcstBook required fiv(' development teams within Rover and six within ISD. Together, HP and Rover assigned the project 75 engineers. ;'HP support for TestBook has been phenomenal," says Andy Griffiths, technical support manager for Land Industrial designers are problem-solvers, say Dave Skinner (left) and Gil Lemke, whose Rover. "The partnership between TestBook recently won an award for the people at HP's Integrated Systems Division. Rover and HP works well." ''TestBook changed the way we do business," says Bill Russell, Computer Systems Organization manager for HP Europe. "\"le no longer limit our suc More than just good looks cess to short-term gain." To some industrial designers, looks award from the Industrial Design Six years in the making, TestBook mean everything. They may pay Society of America. The two accelerated Rover from a £1 million to a more attention to a product's designers credit the cooperation £.50 million accO\mt. It is Part I of Hover appearance than how useful it is. of the TestBook design team with For Integrated Systems Division the recognition. (ISD) designers Dave Skinner and "We are fortunate to work with Gil Lemke, aesthetics is just one of engineers and managers who appre several important elements of their ciate industrial design," Gil says. UHf support for TestBook has TestBook design. Recently, Motor Trader maga been phenomenal. " "Our main concern is to make zine and IBM U.K. recognized the product as easy to use as possi TestBook with an award for the ble," Gil says. "For TestBook, we most innovative use of information Group's long-term strategy for combin brought in auto mechanics to eval technology in the automotive indus ing service, sales and parts information uate our early wooden mockups. try. The award cites TestBook for across a companywide data highway. Their suggestions strongly influ diagnostic excellence and overall ';Rovcr's commitment to TestBook enced our final design direction." increased customer satisfaction. is bigger than a model release'," admits "For a successful product," Dave David Lawrance Hallgarth, Andy Ridyard, diagnostic engineer at adds, "designers have to strike a Rover project director, agrees: Land Rover. aFar a model release, you balance between dissimilar design "TestBook is the frnest piece of launch and in a few years time, it will considerations, such as, ergonom diagnostic equipment in the nm its course. ics, manufacturing and cost, in world today." "TestBook is like the Range Hover addition to appearance." without end." M Following the rollout last Septem ber, TestBook received a bronze (Tom lJ7.rir:h torif.esfoT HP's Int.egml.ed Systems Division i.n Sunnynl/e, CaI.1Iorllia.-Erl i tm) 20 MEAsrRE PEOPLE San Diego employees rally around a special manager Raj Kirpalani walked into a turbulent situation when he took over two HP printer lines in who took a personal interest 1992. Nearly two years later, more than 130 downsized employees were singing his praise. in their future. human touch By Mitch Mitchell SAN DIEGO, California-Hewlett and 650C large-format plotter lines. Packard CEO Lew Platt often receives He walked into a situation in turmoil: letters from employees telling him ergonomic and parts problems had that their supervisor or manager has dogged the lines for months and the done an exemplary job. It's not too whole production layout had just often, though, that he receives a letter moved. Added to this were morale like the one he got in mid-April. It told problems and ongoing efforts to inte of the excellent job a particular man grate employees from downsized or ager had done-and 136 employees outsourced departments. signed it. As if all of this were not enough, The letter offered testimony to the department's self-managed work San Diego Division (SDD) production teams-introduced two years earlier manager Rajender "Raj" Kirpalani's -were not overly successful in earn special rapport with his employees ing bonuses under a new pay system. and his above-the-call-of duty concern Lastly, everyone was reeling from for them. Initiated and written by news that the DesignJet lines soon production operator Nancy Cross would transfer to HP's Barcelona, on the HP DesignJet in!\iet printer Spain, plant. line, the letter was signed by every Raj saw that he needed to tum other DesignJet assembler, work things around quickly. At a series of team coach, technician, engineer lunches, he sought solutions to the and administrative-support person. problems plaguing the lines and The real story began in August 1992 when Raj took over the DesignJet 650 September-October 1994 21 Human touch emphasized his firm belief in the HP way, stating that it's a two-way street. "It's my duty to treat you openly and fairly," Raj told his troops. "And you have an obligation to fully con tribute to the HP team." Raj started plans for each worker to become a "part owner" of the DesignJet business. He reduced the size of work teams and had team members, coaches, technicians and engineers redesign the production lines. Later, team sizes were reduced further still and formed into groups that performed common tasks and gave each employee a greater chance to offer ideas for improving the pro duction process. "We could spot problems earlier and resolve them among ourselves. Both quality and productivity jumped," says Rick Brown, a DesignJet work Raj helped Marcelino Ferrer (Ieftl and Doug Ubry find new jobs on the San Diego, team coach. California, site when the HP DesignJet 650 and 650C plotter production shifted to Spain. Raj also sensed that many of his employees had negative feelings about their jobs and distrusted them. Raj knew that he could not fake "If you had an idea, he'd tell you to sincerity. "People can tell if you mean go with it. We really had the incentive it or not," he said. to improve." Employees' ideas were Raj even hooked up a DesignJet to used to modify tools, track parts, set an HP Vectra personal computer and safety standards and in other areas. "He trusted us and showed us a scanner for employees to create "Barrier" meetings were another a lot ofrespect. ... We really and print their own posters. "This was innovation Raj brought to the group. had the incentive to improve. " the first time most of them had ever At the daily meetings, problems that used a large-format printer," Raj says, prevented the lines from achieving "and it gave them a better feel for how their daily goals were thoroughly dis management. He set out to win their customers would use it. cussed. Sherry Hunga-Moore, a coach, confidence and respect by proving "I saw that everyone needed to remembered the often spirited meet that he Wlderstood their issues and learn our business and how each ings. "We worked out solutions to was willing to give them the tools and one's decisions and actions affected everything from parts shortages to training needed to succeed. it. Then I gave them a chance to put insufficient tooling," she said. To get a firsthand look at what their decisions into motion," Raj says. The DesignJet teams relished their work-team members faced each day, This approach let everyone know that new responsibilities and thrived Raj spent time on the line learning all Raj depended on them to resolve pro under Raj's watchful coaching. Dur of the assembly tasks. This simple act duction and team issues themselves. ing a two-year period, quality errors convinced team members of his will "He trusted us and showed us a lot dropped from nearly 16 per cent to ingness to get to know and work with of respect," says :\fagy Marrero, who just over one percent. The number worked for Raj for nearly two years. 22 MEASL1RE of hours it took to make one unit dropped from 14 to less than six. The most impressive improvements, how ever, were in how many-and how DesignJets were built. In the fall of 1992, it took 147 work-team members "We had a lot ofgood times, but we really earned those rewards. Raj knew how far we could stretch. " MWe succeeded," Raj says of his HP DesignJet experience. "because we focused on the means rather than the end. N He gives the same philosophy in life to his chi1dren, Priya lIeftl and Sach. on three shifts and two lines to assem ble about 2,500 units each month. Eighteen months later, 92 people on had to coordinate the physical move facturing lines. Raj's former employ two shifts on one line could make and redeploy everyone who worked ees thanked him for his guidance and more than 2,600 plotters. for him. support by treating him and his wife "There wasn't any real secret to it," He had started the process six to a dinner at one of San Diego's says Raj, who since has become the months earlier by holding coffee talks finest restaurants. quality-assurance manager for the San and one-an-one meetings to explain Today, Raj looks back on the big Diego Division. "We turned the comer why the line was transferring and and small tIiumphs of his DesignJet because everyone solved problems its impact. days with a sense of satisfaction. "We at their level. They understood what Work-team member Irene Gomez succeeded because we focused on the quality and cooperation really meant." says that Raj was very determined to means rather than the end," he says. Raj also used something more make sure that all of the DesignJet "I worried more about how we did basic to motivate his employees: fun! employees found other jobs. "He had things and the results always reflected Each work team was given a meetings on everything," she says. the excellence of the effort." rewards-and-recognition budget to "He brought in speakers from differ When pressed to describe his celebrate achieving goals and mile ent departments to talk about their management approach, Raj simply stones. "We'd have a lunch or dinner job openings and even arranged for says, "I really don't have a particular or we got to go home an hour early on us to tour other areas." style of management. Ijust try to treat Fridays when we met our quotas," One thing that impressed Irene people in an honest, open and fair said work-team member Yolly Cobos, was that Raj had everyone complete a manner. I operate on the human-to remembering her days on the Design form stating a new job choice. "It human level." M Jet line. "We had a lot of good times," showed that he put a lot of effort into echoed line-mate Victoria Meredyth, rmding the right job for each of us," (Mitch MitcheU is the communica "but we really earned those rewards. Irene says. Raj also arranged for addi tions manager at HP's San Diego, Raj knew how far we could stretch." tional training for those employees California, site.-Editor) The greatest challenge for Raj and who needed to bolster their skills his crew came earlier this year when before they could be successfully plans for transferring the DesignJet placed elsewhere. line to Spain were put into action. Raj By mid-April, all of the DesignJet crew had been placed on other manu September-October 1994 23 ON MY MIND By Jim Haberkorn ., ing is different. The product didn't '" become obsolete. It wasn't replaced BOISE, Idaho-I'm losing my job. I - by another product. It will still be would like to be able to say I am going built; it just won't be built in this through a transitional period in my country. career, but it feels too much like I'm I think that is the main reason why losing myjob to call it anything else. I am so unsettled, maybe even a little I work in a manufacturing facility scared. The business reaUy is chang in HP that is scheduled to close its doors next year. All 600 of its employ ees have to fmdjobs between now and then. There is a very strong possibility I "However, the company doing may only find work on an off-shift. If well doesn't always translate that happens, I will hardly see my into individuals doing well. " family except on weekends. Right now, though, I'd be happy just to know I'll be keeping my present job Boise. Idaho's Jim Haberkorn. ing. Production assembly no longer level. Because of the scarcity of man seems to be viewed as a core compe ufacturingjobs I could be re-scoped state-providing there was an open tency. It has become another movable to a lower job. Ifthat happens, I know ing and that I met the minimum piece in a larger chess game where HP will preserve my current salary for qualifications. company survival is the prize. several years, but my mortgage is for The bigger problem is that my The trouble is, I can't argue with 30 years and even my car won't be spouse likes it where we live and we the direction our managers have have three children. We are settled taken us. The company appears to be here. Homes are affordable and crime making the right moves. The company is low. The kids have friends. Moving as a whole is doing well at a time would be very difficult. when many companies aren't. How "It's unrealistic to think that HP Some of my friends keep reminding ever, the company doing well doesn't would create ajob just for me. " me that this is HP and HP will take always translate into individuals doing care of me. But these days, every well. Ifthe nwnber of manufacturing company is feeling the pressure of jobs on my site really is shrinking paid off before the transitional salary competition and eroding profit mar through overseas moves or productiv guidelines start taking money away gins. It's unrealistic to think that HP ity improvements, I'm going to have a from my paycheck. would create ajob just for me. very hard time finding employment in IfI had to take a salary cut, I I've worked in manufacturing at a functional area outside of produc couldn't pay my bills. To keep my HP for more than 16 years and been tion. I know that. current job level I might have to take through three product closures that Despite knowing and understand a transfer to a division in a different each time sent me looking for another ing all this, I still feel angry some job within the company. But this clos 24 MEASURE times. As production jobs go away, a overseas competition was fierce. In achieve my goal. lot of good people-not just me-who Thailand and Mexico there were I think, lastly, in my letter, I would don't have degrees but who are hard companies in our line of work, with remind myself that the answer doesn't working, dedicated employees are quality comparable to ours, pay just lie in the realm of training. The going to have a very difficult time ing their assembly people 50 cents forces causing this upheaval in our finding work within HP. Virtually all per hour and no benefits. That is work lives can't entirely be offset by of the posted finance, marketing and tough competition. everyone going back to school. We engineering jobs require specialized IfI could write a letter today and can make ourselves personally more training or college degrees; many hir magically have it delivered to myself competitive, but we also need engi ing managers prefer master's degrees. two years ago, I would warn myself neering, finance and marketing people The average production worker, or not to be complacent. I have learned to work with us, valuing the work we even production supelVisor or man do, and structuring the production ager, would be hard pressed to qualify environment in such a way that we for these positions. can continue to employ production I'm worried that my skills have not "The forces causing this operators at HP. kept up with the available jobs. I feel For thousands of HP employees, a little like a blacksmith in an age of upheaval in our work lives can't production is what they do; it is who automobiles. I want to have choices. entirely be offset by everyone they are. Ifthe production jobs go, I would like to stay on the same shift, going back to school. " they go too. Perhaps, in the final anal at least on the same pay level, doing ysis, the solution lies as much in the something I am good at. Ifthere are area of teamwork between functional options out there, I'm not really sure that while HP has historically been a areas as it does in the areas of tech what they are. I hate to just sit here very stable employer, for many peo nology and training. 1\1 waiting for the company to stick me ple, even a disturbance as simple as somewhere, but I don't know what having to change work shifts can (Jim Haberkorn, a member of t.he else to do. prove to be a traumatic experience. Boise (Idaho) SWj'ace Mount Cenle1' I don't want to leave HP. so I feel I would advise myself to do every (BSJl.fC) transition support team, stuck. I don't have the skills to inter thing I could to become more mar wrote this article based on his e.T])p view for a nonproduction job and I ketable both inside and outside the rience.~· and those ofother BSJ1C company. In a way, I stumbled into employees. The article is meanllo ,"vorking for HP. Staying here is proba convey the painful choices many bly still the right choice for my career, people i.n Boise-and HP-mza;t but I would advise myself to spend make.-Editor) "IfI could write a letter today .. some time sorting through my goals I would warn myself not to be and aspirations. I would do an inven complacent. " tory of my talents, dividing them into the technical and non-technical, remembering that "soft" skills are also What's on your mind? don't have the time to go back and valuable and transferable to many Do you have a suggestion about get a degree before the shop closes. jobs both inside and outside of HP. how to improve HP, an anecdote I hope everything turns out all right, I would make a conscious decision about the HP way or an HP but I won't know for a few more about what career I really wanted to related comment in general? months. pursue. I would talk to managers and Send your uOn my mind" article If I'd known two years ago what I workers in my area of interest and up to 500 words-to Jay Coleman know now, I would have spent the last find out what it takes to be successful. on HP Desk, by fax (415-857 two years getting ready for this situa I would then work out a plan to 7299) or to Jay at the MEASURE tion. I should have seen it coming. address on the back cover. Our managers didn't hide the fact that S~ptt'rnber-October 19D4 25 VOURTURN Employee of the Year One temporary employee had had a One of the best (supposedly) secure job at a mining Your March-Aplil MEASURE article Craig Hugins deserves to be named company in the Southwest, but had HP "Employee of the Year" for having on our competition was one of the been laid off. ~ow he was unable to most interesting and useful ones that I the courage to say-in print-what so find any engineering work except as a have seen. I hope MEASURE updates many of us feel ("Strategic or short temporary. He was not eligible for any the story on a recurring basis because sighted," July-August). benefits-health, vacation, etc.-until the market changes so rapidly. And MEA.8URE deserves to be hE' had workE'd something like 1,000 LEW FOX named "Corporate Publi('ation of the hours for the temporary agency. And Naperville, Illinois Year" for printing it. he was paid a pittance to boot! CRAIG CA.LLAWAY Having seen this, the promises by Is there a doctor in Sunnyvale, California any company of job security-even the house? HP-ring pretty hollow for me. Espe Will anyone listen? cially when I see temporaries and I have a question, sparked by the July Thanks for Gregg Piburn's article, contract workers all around me here August story, "From the bottom of "Tell it like it is," in the May-June at HP, I think, "There but for the grace HP's heart." Are stethoscopes avail edition. The sorry thing is that it takes of God and economics go 1." able for employee purchase? Is there aformer HP employee to get the BARBARA PARCELLS a whole product line of stethoscopes audience. San Diego, California available? CARL CHOW Gregg talks about three out of 24 employees providing "ready Santa Clara, California responses." \Vhat should really worry Now hear this: Acc01'ding to the Med us is the rapidly decreasing number Please send mail ical Products Group's Mike Chase, of people within HP still sufficiently unprejudiced to listen to cliticism. Do you have comments about HP mak.es only one-the Hewlett R.P. BECKER something you've read in MEA Packm"d Rappaport-Sprague stetho Bad Homburg, Gennany SURE? Send us your thoughts. scope. It's available with 14-, 18- and Ifwe publish your letter, you'll 24-inch hoses, and in a mahogany receive a free MEASURE T-shirt finished case. Prices rangejrom It could happen to me (one size fits most). $131 to $166. Employees ma.y pur One line in Chris Hugins' article Fax comments to (415) 857 chase them a.l a 30-percent discount struck home especially hard: "Today 7299. Address HP Desk letters to through their purchasing or person we have a stratified work force where Measure MAGAZINE or send nel departmenf.s, OT through the regular employees are haunted by the your comments to Jay Coleman, Employee Purchase Program.-Editor fear of becoming 'one ofthem'-the Mailstop 201BR, Palo Alto. workers without benefits..." Our Internet address is The blue lagoons? I was pretty fortunate through the Measure_Magazine@hpOOOO. ~asty Eighties; I did not become one I enjoyed reading the article about the desk.hp.com. Please limit your of the layoff statistics we read so Medical Products Group G.M. Gary letter to about 150 words, sign much about. But it became clearer Eichhorn in the May-June edition. Just your name and give your loca and clearer over time that no job one question: What are "Caribbean tion. We reserve the right to was safe. eyes"? edit letters. While earning my engineering BARBRA GLASER degree I "co-opped" for a company Waltham, Massachusetts from which a large number of engi neers retired. To "cut headcount," The blue pigment i.n Gary's eyes reminded writer John Monaha.n of they did not hire replacements, but the water in the Caribbean Sea. they had to hire a temporary person to carry the workload. Editor 26 ~fEASCRE LETTER FROM LEW PLATT HP's chairman, president and CEO discusses how complacency can destroy a great company-and how HP can avoid that path. eople frequently ask me what I worry about the most, and my answer is always the same: complacency. Is Hewlett-Packard a complacent company? Has our climb to No. 19 on A professional interpreter translates Lew Platt's comments during HP's 1994 Deaf/Hard of the Fortune 500 list oftop U.S.-based Hearing Forum earlier this year in Palo Alto, California. companies given us a false sense of achievement and satisfaction? No, I Why didn't Sears see Wal-Mart measurement, computation and don't think so. However, I believe we coming? Why was General Motors communication-and that can be a do need to guard against complacency. convinced that Americans didn't want true competitive advantage. Let me explain. to drive small cars? I think they Those strengths don't guarantee When you're the challenger, you became myopic and started to miss that HP will continue to be successful. have a natural, built-in drive. You important signals. In fact, sometimes we get financially work with a high level of energy and Sometimes great companies and personally complacent. For creativity. In many areas, we are the become too protective. They want to instance, we traditionally do well leader in volume and brand recogni stick with what made them successful fmancially in the first half of the year, tion. IBM is bigger, for example, but a a little too long. In that atmosphere, then overspend in the second half. lot of people consider HP to be the it's easy to shut out ideas that could And as individuals, we have to guard "thought leader" in the industry. save a business. It's easier to fall against complacency in our jobs, as We've received considerable asleep on a straight road than one Jim Haberkorn suggests on page 24. media attention in the past few years filled with curves. There is no complacent company because we've weathered the industry I'm absolutely convinced that HP without complacent employees. storms better than IBM, Digital Equip has some natural assets that can That's why we all need to think about, ment Corporation and other compa prevent us from falling asleep at the challenge and improve everything nies. But it's dangerous when you wheel: aboutHP. start believing all your press clippings. • We have an environment of open If each of us successfully guards Look at IBM, General Motors and commllllications. We hire and nourish against complacency, no one will ask, Sears Roebuck. Those once-great people who challenge the status quo. "What happened to HP?" companies were so strong, you • We commit a lot of money-more couldn't imagine anyone overtaking than most of our competitors-to them. Yet, they stumbled badly. research and development. At HP The demise of a great company Labs, for example, we encourage usually begins when you think you parallel paths to the same end. We really understand what the market also allow people to look at radically wants and you stop listening to cus different approaches. tomers as you did when you were a • We're pursuing a vision of the challenger. Or you start to miss subtle future called MO. HP is one of only indicators of change. a few companies with expertise in September-October 1994 27 EXTRAMEASURE The whole world in his hands Bob Traynelis wanted to the theme world created for help make his son's high Monta Vista High School in school graduation party Cupertino, California, special, So he helped design The world included a and build a world. 92-foot-Iong mural and Bob, a marketing con movie-like sets af a 1950s tracts manager for HP's drive-in, the Old West, a U.S. Field Operations, was 1920 speak-easy and a Bob Traynelis (right) puts the finishing touches on the 92-foot-long the driving force behind Renaissance fair, mural he designed and painted for B high school graduation party. "Passport through Time," It's not just an HP printer, it's a squid HP Italy celebrated the 10th 10:30 a.m. ta 8:30 p.m. so In the seaside city of technology behind the HP anniversary of HP Inkjet that local citizens and Bari, a man dressed like DeskJet 520 printer, which and LaserJet printers-and tourists could sample the a sailor listened intently as squirts ink onto the page. the 10 millionth sale of products firsthand. an HP rep explained the "Oh, now I realize," the man each-in May with a travel said. "It's nothing different ing, countrywide event. than a squid!" HP's Computer Products sales and distribution in Italy outfitted the Settebello express train with the latest HP personal computer, printer, plotter and scanner products for a lO-city tour, The Venice-to-Milan tour stopped in each city from The high-speed Settebello train zoomed into 10 Italian cities to help celebrate 10 years of HP printers. A guaranteed HP cover story every time One measure of a com Every two months, a real issue of the popular pany's success is how design firm for the PSO magazine and sent to 2,000 often its name appears on team creates an HP-specific HP accounts, opinion lead the cover of major busi cover that carries a market ers and channel partners. ness publications. HP's ing message to key decision Success stories on the Professional Services makers at Computer Sys inside cover complement Organization (PSO) tems Organization cus the "wrapper." Asia Pacific marketing tomer accounts. "It's been well received group has found the The customized cover, by customers," says Asia solution: an HP cover which looks like a cover Pacific PSO's Frank time. from Asian Business maga Humphries. zine, is "wrapped" around a 28 MEASURE Atoast for 40 years of service "A research library is at brate the library's 40-some the heart of any research years of service. laboratory. Ifwe are to be Employees were treated regarded as the world's best to hoI'S d'oeuwes, sparkling industrial research lab one apple cider and computer day, then it follows that we ized data-base demonstra must work hard to make this tions during the two-hour the best research library open house. that there is." "\Ve're blessed with an That's how Joel Birnbaum, imaginative, creative staff," HP senior vice president of library chief Eugenie Prime R&D and head of HP Labs, told the group. "I think that summed up the importance this, together with manage of the HP Laboratories ment's support, is all we Research Library in July need to continue pro\'iding when he addressed the 100 excellent service for years Kathe Gust demonstrates one of the computer-based tools to cus people who canle to cele to come." tomers recently during the HP Labs Research Library celebration. Rung by rung How lIP has climbed the Fortune 500 ladder during the past 32 years SeprembE'r-Ot'tobcr 199-l 29 EXTRA MEASURE BOlTOM The former Mass Stor ILINE age Group under G.M. For t.he FY94 third quar Bruce Spenner has ter, Hewlett-Packard been renamed the Infor reported a 28 percent mation Storage Group. increase in earnings, 22 In r.he Personal Infor percent rise in net rev mation Products Group, enue and 27 percent a new ::-Jetworked Sys order growth compared tems Business Unit with the same period in under G.I'vI. Duane 1993. (;3Q FY93 numbers Zitzner includes the are shown below in \"etwork SeITer Divi parentheses). CEO Lew sion and the Roseville S~mta Rosa's Brian Purcell prepares for the grueling World 100· :'Jetworks Division. kIlometer Ultra Marathon Championship in Hokkaido, Japan. Platt said "overall results were much better than Renamed: Home Prod ucts Division (Interactive HP runner shows samurai spirit were reported in the third quarter in recent TV Appliance Division), Hokkaido, Japan-Brian feature stories about Brian years." :Ylobilc Computing Divi Purcell, a standout American including the Nikkei News~ sion (Corvallis Division). \"et earnings ''''erE' runner from HP's Microwave paper, which praised his $347 million or $1.33 per Instruments Division in "samurai spirit." share on some 261 mil ASIA Santa Rosa, California, "This helped increase lion shares ($271 million IPACIFIC recently helped Yokogawa- awareness of HP in Japan," or $1.06 per share). Ket lIP and ir.s CSO distribu Hewlett-Packard (YHP) get says YHP public-relations revenue ,vas $6.1 billion tor in Vietnam have a lot of "mileage" for YHP manager Ron Soyama. 'The ($5.0 billion). Orders opened a Centre for when he participated in visibility was 30 times more were $G.O billion ($4.7 Open Syst.ems Compm the World 100·kilometer valuable than the cost of billion). ing Expertise in HanoI... Ultra Marathon Champion- the airline ticket." HP plans to set up its ship here. Brian earned his place CHART first subsidiary office in YHP funded Brian's on the U.S.team by finishing the Philippines by the flight to Hokkaido, and the fourth in the USA WOK ICHANGES In a reorganization of the end of 1994. investment paid off when championship in February. The Medical Products the finance department The U.S. team took third Workstation Systems Group, the fmIDer Group has expanded its employee finished 50th out place in the 23-{'ountry field operations in China, tak of 2,000 runners. in Hokkaido. Advanced Systems Divi sion has been renamed ing a 75 percent interest Three major newspaper in ajoint venture \vith articles mentioned x'HP in the Workstation Systems Division and expanded. China \" ational Corpora It. now indudes the for tion of :.\1erlical Equip Ouoteworthy mer \Vorkstation Tech ment Industry. The nology Division and the new company, Hewlett ..I was looking for order growth of21 percent or Packard Medical Prod 22 peTcent. They blew that away. ~ Entry Systems Division's marketing and R&D. ucts (Qingdao) Ltd., will be managed by Ong Laura Conigliaro, Prudential SecUlities Inc. analyst, Mark Canepa remains general manager. Keok Teng. It will man commenting on HP's 27 percent, third-quarter increase ufacture medical prod in orders. ucts for worldwide sale. 30 MEASURE NEW PAFC IHATS ISALE New appointments with Sale of all Palo Alto Fab in the Computer Systems rication Center activities Organization (CSO): has been announced, In Computer Order ",ith its businesses Fulfillment and Manufac sheet metal and cabinet, turing, Pierre-Francois custom wire and cable, Catte continues as G.M. die cast, and plastics of the Exeter Computer going to four different ManufactUling Operation buyers. and adds a hat as G.M. of the Networked Com NEW puter Manufacturing IPRODUCTS Operation. From the COIYalIis Di"i In Japan, Shigechika n sian: the 200LX with a Nancy Forman's uinvolvement extends to her. leisure time when Takeuchi has joined she's on the medical team at Portland International Raceway. built-in version of Pocket Yokogawa-Hewlett Quicken for financial Packard as CSO Japan HP employee Ilgets involved" .. tracking, and the 486 Business Development Nancy Forman has a simple that he had no resplratIOn based HP OmniBook 530 G.M ...Karen Slatford to ~e m~ superpOltable PC. philosophy when she teaches or heart rate. G.M., l.'.K. CSO. classes in cardio-pulmonary began respondmg agam The Analytical Prod Olivier Trancart to resuscitation (CPR): Ifyou're after the second "thump." ucts Group's HP G2025A dual role as G.M. and not prepared to go the dis She also ordered the mass spectrometer is the CSO manager of HP ~ort- first based on matrix tance, don't get involved. pilot to return to the Hungary. airpon:-some~llng assisted laser desorption! So, acting on her instincts land Within the Computer -and 26 years of experience she can do m a medical ionization (MALDI-TOF) Products Organization, as a critical-care nurse- emergency-where the man to determine molecular Bernd Bischoffto G.M. Nancy, a clinical special was taken to a local hospi weights. for Sales, Distribution o~ th~ The HP Fibre Charmell ist for HP's Diagnostic tal. Nancy stayed and Support-Europe. Cardiology Business Unit same flight and arnved ill 9000 network interface Within Worldwide in McMimwille, Oregon, Denver 1 1/2 hours late- from the Information Customer Support Oper recently saved a life. but a hero. Networks Division is the ations, Paul Balnys to She was on a United Air "It wouldn't have been first in a series of HP G.M. of Complementary lines flight from Portland, right not to get involved . Fibre Channel products. Products Sunnyvale. Oregon, to Denver, Colo because of the fear"of bemg The HPA2882A flat In the Test and Mea rado, when a passenger expe sued," Nancy says. I ~ad panel display introduced surement Organization, rienced cardiac problems. the skills to make a differ in January by the Work Jack Leber to TMO Nancy took control of the ence. There really was station Systems Group China Coordination situation. She checked the no choice." has won two top design manager, Doug Halbert man's pulse, quizzed him awards: a 1994 IDEA and to G.M., Korea Instru about his medical history a Design Zentrum Red ments Operation. and eventually "thumped" Dot. his chest when it appeared September-0ctober 1994 31 PARTING SHOT Atale from the Old West CORVALLIS, Oregon Images of the Old West remain strong in the United States today. and historic signposts such as Nathan Meyers' photo (right) keep those memories alive. "Oregon-home of HP's Corvallis and McMinnville sites and the Portland sales office-also was the desti nation for 300,000 settlers who braved the Oregon Trail," says Nathan, an R&D engineer in Corvallis' Work station Systems Division lab. "Eastern Oregon's Baker Valley, the site oftrus photo graph, was the pioneers' first sight of Eden-a beau tiful but deceptive view, because they still faced unforced mass migration. even taking a few steps to the northwest-their his several hundred treacher Oregonians celebrated by toward understanding the tory reminds them that the ous miles to the Willamette visiting the historic sites effects the migration had greatness of this area Valley where most settled. (wagon ruts are still visible on the people who lived comes, in no small part, "In 1993, Oregon cele in some parts of the Trail) I here first. from the many people who brated the 150th anniver learning the hardships "As Oregonians face the chose to leave their homes sary of the opening of the faced by the settlers and effects of today's Oregon for a fresh future in Oregon." Oregon Trail, an event that Trail-the mass migration led to history's largest of disaffected Californians MOVED LATELY? CHANGE OF ADDRESS SHOULD BE REPORTED TO YOUR PERSONNEL DEPARTMENT. r,,~ HEWLETTS> Bulk Rate ~"'PACKARD U.S. Postage MEASURE Magazine Paid PO Box 10301 Permit 3917 Palo Alto, California 94303-0890 Portland, OR