FROM THE EDITOR

n her 1974 book, Passages, difficulty" because at least we try to author Gail Sheehy discusses serve the HP world. We try to offer a the different stages of life and selection of stories-people profiles, .~ . the predictable changes that business directions, trends, product take place. applications and so forth-knowing ·,T "I have reached some sort of that every story won't appeal to every H'J'I ...... , ... melidian in my life," she writes of reader. It's like a buffet: Some people ,,,. '\ "i the mid-30s. "I had better take a sur­ will try everything that's offered while vey, re-examine where I have been others won't like anything. and re-evaluate how 1am going to MEASURE is perfect for some spend my resources from now on. tastes and distasteful to others. Why am I doing all of this? What do 3) Should MEA..9URE look differ­ On the cover: In constant I really believe in?" ent? A few years ago, a magazine motion-mentally and As MEASURE approaches its 35th design consultant told us that physically-Juan Cortes, birthday in 1998, the staff has been MEASURE looks too conservative. who works for HP's Product Processes Organization in asking itself similar questions. She thinks of Hewlett-Packard Guadalajara, Mexico, rides "How, if at all, has MEASURE's as a vibrant, consumer-oriented up to six miles a day on his purpose-to be informative, interest­ company, not the traditional test­ three-wheeled handcycle. Juan's story begins on ing and entertaining-changed?" and-measurement company of a page 18. "How can a 32-page, bimonthly quarter-century or more ago. print magazine serve a highly diverse, I think that MEASURE's clean, Photos by Diana Smith 120,OOO-person worldwide employee simple appearance has been effective audience?" for many years. But perhaps it's time "Does the magazine need a new for a bolder, more contemporary look. 'look'?" Our new art director, Tim Mitchell, is "Should it still be called MEASURE?" working on that. These are questions we ask our­ 4) Should MEASURE be called selves routinely in an effort to keep MEASURE? the magazine fresh and relevant to This has been the subject of employees. I think the short answers intense debate for a long time. are: it hasn't; with great difficulty; Some people argue that the name is probably; why not? a throwback to HP's early test-and­ Here are the longer answers: measurement days. Others say that in 1) Interesting, informative and HP's constant effort to improve itself, entertaining. Those are darn good MEASURE is still a fitting title. Plus, it standards for any publication to shoot has a 35-year identity that's worth a for. I like publications that are inter­ great deal. esting and infonnative. Ifthey're Are we clinging to something that's entertaining, too, that's even better. outdated or trying to fix something 1think MEASURE should be less that isn't broken? selious than the Harvard Business We'd like to hear from you. And Review or The New England Journal we'll be conducting a major reader­ ojMedicine but more serious than ship survey in 1998 to do just that. Mad magazine. Additionally, we're always open to Has our purpose changed? No. feedback on our content, appropriate­ 2) How can we be all things to all ness, look and name. people? The totally honest answers What do you think? are, "We can't," but I say "with great -Jay Coleman

2 MEASURE THE INSIDE STORIES

FEATURES EPARTME 4 All the right moves 9 Web-wise To travel or not to travel-that is the $800 million Preparing for a trip? Dr. Cyberspace question for HP business travelers. has the perfect Web sites for you. l._ ,. , 11 The new revolution at lIP Russia 15 Yourturn - .., Revenue per employee is among the highest any· MEASURE readers share their "~ ~~. =,­ where in HP, so bring on ROA and TGIF. views on matters of importance. - -:'- -. ,.,....."t I 23 What ifit fits in your pocket? 16 Letter from Lew Platt '. I' HP's Don Nonnan takes a look at the next gener­ • HP's chairman, president and :JIf .. ' ation of advanced infonnation appliances. CEO outlines the company's FY98 ..... -. Business Fundamentals, 26 Scanning the possibilities Page 11 With a new general manager and exciting new 18 Where there's a will... products, the Bergamo Hardcopy Operation is Physical and technological experiencing impressive growth. challenges are no match for Guadalajara's Juan Cortes.

29 ExtraMEASURE News from around the HP world.

32 Parting shot There's no mountain high enough to stop HP's Cathy Gildea.

MEASURE

Editor: MEASURE is published in mid-January, March. May. July. September and November for employees and associates Jay Coleman. ABC· of Hewlett·Packard Company. It is produced by Corporate Communications. Employee Communications section. Mary Anne Easley, manager. Address correspondence to MEASURE, Hewlett-Packard Company. 3000 Hanover Street, Associate editors; 20BR. Palo Alto, California 94304-1185. U.S.A. The telephone number is (6501857-4144; the fax number is (650) 857-7299; Mary Anne Easley and the Internet address is [email protected]. Kathy Mirtallo David L. Price ·Copyright 1997 by Hewlett-Packard Company. Material may be reprintad with permission. Art director; ·Accredited Business Communicator by the International Association of Business CommunicatDrs (IABC). Tim Mitchell Hewlett·Packard Company is a global manufacturer of computing, communications and measurement products and Photo research; services recognized for excellence in quality and support. HP has 120,500 employees worldwide and had revenue of Carol Parcels $38.4 billion in its 1996 fiscal year.

Circulation/editorial assistant: Selected articles from this and past editions of MEASURE are available on HP.Now at Grace Razo http://hpweb.corp.hp.com/publish/hpnow. Intern: Lila Kakuk Microsoft and Microsoft Windows NT are registered trademarks of Microsoft Corp. UNIX is a registered trademark in the United States and other countries. licensed exclusively through X/Open™. x/Open is a trademark of X/Open Company Limited in the United States and other countries. *MEASURE magazine is printed on recycled paper with vegetable-based inks.

November-December 1997 3 USINESS

To travel or not to travel-that is the question. For HP, the slings and arrows of business travel add up to more than $800 million ayear in related costs.

by Lila Kakuk

All the moves

4 MEASURE "IIey, how ya doin', Joe'?" says a Lockheed Martin, General Electric luggage checker near the tenninal and Andersen Worldwide. This is one entrance. list that Phil does not want HP to be "Good morning, Joe!" says the No.lon. clerk working the snack cotmter. In this era of hacking budgets to "Where are you headed this time, the bone, the company must ask itself Joe'?" asks a passing security guard. if all this spending is really necessary. Joe Koon, a "regular" at the After all, if the virtual offIce and tele­ Raleigh, Nmth Carolina, airport, is commuting have become realities, going on yet another business trip. can't we use virtual travel to offset Many of the employees at his local the cost of physical travel? airport know him on a first-name basis. This, he admits, can be scary. Jlln spite ofall the advances in technology, Joe works for the Test and Measurement Organi­ there really is no substitute for face-to­ zation (TMO) at HP's sales face. Our customers require it. " office in North Carolina. He flies an average of four flight segments per week This may "In spite of all the advances in seem like a lot of traveling, but .Ioe is technology, there really is no substi­ only one of thousands of frequent HP tute for face-to-facc," Joe says. "Our business travelers. customers require it." "One out of every two lIP employ­ Nick Cmkovic of the Professional ees takes at least one business-related Services Organization in Houston, trip per year," says Phil Wilson, Texas, agrees that in spite of all the corporate travel manager in Palo virtual hype, face-to-face interaction Alto, California. with customers is essential. "Oftcn, HP's travel and entertainment bud­ when customers sign a contract, they get has steadily increwsed over the expect work to be done at their place. years. In fiscal year 1995, HP spent Our presence on-site is a great benefit $671 million; the FY96 total was $754 to the customer and the project." million. Phil believes the company Likewise, travel benefits the com­ will spend more than $820 million on pany. Project" that havc reqUired Nick travel-related costs by the end of 1997. to travel extensively have brought in According to a survey by Business millions of dollars in revenue. "We go Tro.vel NflWS, a leading corporate where the work is," Nick adds. travel-industry publication, HP's Besides traveling to meet with spending is typical of the top 100 cor­ customers, the purpose of much porate travel spenders-about 2 percent of HP travel is to meet with other of sales. Hewlett-Packard currently employees. Tom Tarasoff, a Phoenix, ranks fIfth in corporate travel spend­ Arizona-based sales and marketing ing world"'ide, right below IBM, manager for the Computer Organiza­ tion, travels primarily in the United Making the most of his heavy travel States but occasionally he travels schedule, Tom Tarasoff [right!, CO sales and marketing manager, sits down at the Phoenix, Arizona, airport with HP Channel Partner Warren Mills of MicroAge.

November-December 1997 5 Travel

abroad. For Tom to effectively prac­ its toll on those my fatnily is over tice MBWA-management by wander­ required to do In the January-February 1998 issue the phone," Tom ing around-he has to fly. the bulk of it. of MEASURE, find out how business says. "This makes Eric McHenry, a research and Tom estimates travelers can make the most of their quality family development manager for TMO in that he is on the traveling time, stretch those travel time even more Edmonton, Canada, agrees with Tom road at least dollars and save HP money. valuable." and adds, "I believe traveling is criti­ three nights per Tom enforces cal, especially for people who manage week. He enjoys his job, but he won't limits on his travel schedule by mak­ employees at remot.e sites. The face­ be the first serious business traveler ing sure significant family events get to tell you that business travel is any­ put on his calendar, and most week­ thing but a glamorous write-off. ends you can find him at home. "I "It's really like haVing two jobs- have to be discriminating. I ask myself "Do Iget burned out? Certainly. a full-time job at the office and a what my role is going to be when 1 But do tstay burned out? No. full-time job just traveling," he says. get there. You have to do that with thave an exciting job. " "Usually after your flight, you go to every request." the hotel, go to your events. go to din­ Travelers need to be discriminat­ ner and then go to the hotel to work ing, as Tom said. They also need to to-face presence indicates a willing­ on voicemail and e-mail. When you be flexible and cost conscious, ness for a remote manager to spend realize you're still working at 11 at according to the t.ravel experts in the personal time to traveL Being night, you statt. to wonder what it corporate travel management. "We there physically also seems to encour­ would be like to have a normal can easily save 10 percent of travel age people to share small issues or 9-to-5job." expenses," Phil says. That's a poten­ bring up larger issues that might Working extended hours isn't the tial savings of more than $80 million. normally not come to light." only way that traveling has affected Traveling is expensive, but it is a The importance of face-to-face his life. "I have a nice house that I necessary part of doing business. contact eventually ",ill require some­ don't live in, my side of the bed is Despite the hardships of having a one to travel. And traveling does take brand new and my relationship with heavy travel schedule, Tom gets a sense of accomplishment and satis­ faction from his work. Taking the The top 15 routes "Do I get burned out? Certainly. HP employees But do 1stay burned out? No," he says. high road traveled this year* "I have an excitingjob.~ M 1. S' n JOeL [J nv Z S' J se-Fmt CIlII s 3. San Francisco-Boise (Lila. Kukuk, a public relations • San Jose-Denver student at San Jose State Univer~il:lj, . San Francisco­ 'was the 1997 MEASURE 'intern. Atlanta -Editur) 6. San Francisco­ San Diego 1. San Francisco-Boston 8. San Francisco-Portland 9. Dallas-San Jose 10. San Diego-Portland 11. San Francisco-London 12. Geneva-Stuttgart 13. Geneva-London 14. Stuttgart-Dusseldorf 15. San Francisco-Chicago

'Source: HP Corporate Travel Marlagement (orle-year period from August 1996--July 1997)

6 MEASURE cullu"rallQ fYARCommu­ 4. In what . Check out the countries do you b site at find ANZAC biscuits? ". 'ar,COIll. a. Australia and New Zealand. b. Scotland and England, c. Greece and Turkey. d. I:Li.na Ja

r a business­ n? box of chocolates. ineapple. ~'rystal vase, 'ft of friendship. True or false: 6. In Argentina, you call your friend a 2.. hat type of soup "rnate." aditionally eaten

j ew Year's Day 7. The work week in Israel begins OIl it f1a'ti", , Monday and lasts through Friday.

8. India's national hird is the dove.

10. In the U.K., a beefeater is ..... :1 What number in Chincsc­ a non-vegetarian. speaking countries and also ill Japan is as ominous as the Answers (l:re on the next pa.ge. number 13 in western culture? a.4. b.7. c.3. d.5.

November-December 1997 7 Travel

Multiple choice answers for quiz on the previous page: 1. (b) In Taiwan, receiving a pineapple as a gift means the recipient rd OlD G , ;nCll will start a successful new business. 2. (c) During the colonial times in Haiti, slaves were forbidden to eat pumpkin soup. After they gained inde­ pendence in 1804, the soup became a traditional New Year's Day meal. 3. (a) In the Chinese language (and also in Japanese), the pronunciation of "4" is exactly the same as "death" and is considered bad luck. 4. (a) ANZAC biscuits have been a traditional cookie recipe in Australia and New Zealand since World War 1. Originally, they were made for the ANZAC troops-Australian and New Zealand Corps-who fought in Gal­ lipoli, Turkey. 5. (c) A ceramic rooster or "Galo de Barcelos" is the Portuguese national symbol.

True or false answers: 6. (F) "Mate," pronounced [mah­ tayI, is the national beverage of Argentina. It is a green tea served in a hollow gourd (the "mate") and sipped with a metal straw. 7. (F) Israelis work Sunday through Thursday and half a day on Friday. Most businesses close early on Friday in observance of the Sab­ bath. 8. (F) India's national bird is the peacock. 9. (T) Approximately 50 percent of the Irish population is under 25 years old. 10. (F) A beefeater is a guard at the Tower of London.

8 MEASURE WEB-WISE

usiness travel can be extremely productive and !I!IIiI~-:il. rewarding. It ~"-llIlll can also be a ~;:;~ royal pain. Part of the difference is in the plan­ ning, and the Web is becoming a valuable planning friend for many HP business travelers. Need to know the weather forecast for the city you'll be visiting? Driving directions and a map to reach your ~ .,a: destination? Is your flight going to leave on time this afternoon? How do you renew your passport? The Internet probably has your answer, somewhere. Is it easier to surf the Web than to pick up the phone and call the airline or travel agent for a booking? Probably not, at least not yet, for most travel trans­ actions. But that shouldn't stop you from testing some of these sites that ~) can make you a better traveler, whether nies and airlines. oflug­ for business or pleasure. You'll also That means you can use the gage: fmd information that you simply Web for research or personal carry-on won't get from your travel agent. travel, but probably not for and lost." For HP business travelers, the consummating any business­ And for those of best place to start is at Corporate travel deals.) you who are among Travel Management's home at Getting ready to pack for the electronically advan­ http://hpct.corp.hp.com/travel. your upcoming trip? Doug taged road warriors, look to You'll find the current travel expense Dyment teaches you how to live out http://www.targus.com/tips.htm. report forms, Corporate Aviation's of one carry-on suitcase at This somewhat-biased site by a com· flight schedule to and from its San http://www.oratory.com/travel. puter carrying-case manufacturer Jose home base, the lowdown on The veteran traveler provides exhaus­ ("Raise your laptop with a book or American Express cards, HP's travel tive detail on how and what to pack in your Targus case,") offers lots of tips newsletters from arOlmd the world his "Compleat Carry-on Traveler." for traveling with your personal com­ and much more. Among the best fea­ There's one checklist for both men puter. For example, "Tape business tures: valuable links to loads of other and women that will work as well for cards to the bottom of all your note­ travel-related sites. a business trip to Houston as it will book accessories, such as external CD (Don't forget that HP has negotiated for a backpacking trek in Hungary. drives, adapters, portable printers special deals with certain travel agents, (He says you can eliminate the parka and the like, for easy identification." hotel properties, auto rental compa­ ifyou're headed for Singapore. And Sotllld advice and lots of tables with lose the Bermuda shorts if you're useful information like availability botllld for Anchorage.) Doug reminds of RI-II phone jacks and local elec­ us of what many of us have learned trical voltages. the hard way-"There are two kinds

November-December 1997 9 Dr. Cyberspace

For HP's internat­ ional travelers. Planes... right and left). Discover which of the expense reports take on When does United's flight 862 land 205 listed countries and territories use added complexity because in San Francisco today? How many which side of the road at http://www. of constantly changing cur­ frequent-flier miles does it take for nectec.or.th/rec-travel/general/ rency exchange rates. In pre-Web two seats to New York? What is the driving/drive_which_side.htm and days, it meant finding a copy of 17w seating configuration for United's impress your friends. You'll also find Wall Street Journal or the Financial Boeing 737? Visit http://www.ual.com. that there are 3.8 billion righties and Times from the day you were in a par­ Great last-minute bargain fares in 1.9 billion lefties. ticular country. But by using the sim­ the "news desk" section of http:// ple tool at htt.I':I/ww''''.oanda.com, www.bestfares.com. Guides and travel tips you can convert Albanian lek into An "encyclopedia of travel" on the Tongan pa'anga (or any of 162 other trains... Web from the team that publishes the currencies) for any day since 1990. I Want to travel by rail instead of air in popular Arthur Frommer guides at certainly hope you don't have any Europe? Learn about the 17-country http://www.frommers.com. unfinished expense reports sitting Eurail pass at http://www.eurail.com. One of the best sets of travel guides around from your 1990 trip to Schedules and travel tips for U.S. comes from the people at Lonely Planet. Albania, though. passenger tra in service ca n be found Their Web site is just as solid at To fight the effects ofjet lag, you at http://www.amtrak.com. http://www.lonelyplanet.com. might want to try the diet developed The Subway Navigator lets you plot Good travel tips for women travelers by the Argonne National Laboratory routes for 61 subway train systems in at http://www.maiden-voyages.com. outside of Chicago. Their feast-fa...t­ major cities from London to Tokyo. Go Offer your comments or ask questions feast-fast routine starts three days underground at http://metro.jussieu. in their lively travel forum. before your depmture day and helps fr:l000l/bin/cities/english See which countries the U.S. you adjust your internal clock quickly government feels Americans should to new time zones. Check it out at ...and automobiles avoid at http://travel.state.gov/ http://alrnond.srv.(:s.edulafs!cs. If you plan to drive a rental car from travel_warnings.html. cmu.eduluser/rnkant/Publicfl'ravell the Lyon, France, airport to HP in Read weather forecasts for 800 jetlag.txt. Grenoble for the first time, you'd better cities around the world at http://www. Don't forget La send me your be familiar with European sign la n­ rainorshine.com. There are also favorite sites, travel-related or not, guage. Test yourself online (before weather maps and radar images for 50 I can share them with other HP yourflight, notwhile you're driving!) you junior meteorologists. employees in future columns. If at http://www.europcar.com/english/ Learn where and how to get or you've found a site that makes your in_epg3d.htm. renew your U.S. passport. Also HP job eac;ier, send me a note at Driving directions and personalized tells U.S. travelers which countries [email protected]. And he 5Uff~ maps for virtually every street address require a visa for entry. You can to "isit my online clinic at http:// in the United States are available from download passport application forms, hpwcb.corp.hp.com/publish/ http://www.mapquest.com. even though you can't submit them hpnow/usc/drcybcr/indcx.htm. M Do you drive on the same side of online at http://travel.state.gov/ the road in Japan and Ireland? Austria passport_services.html. and Austra lia? (Yes, left and left. No,

10 MEASlTRE [iAIO TEIiH. MOCKBA

Revenue per employee is among the highest anywhere in HP. So forget the KGB-bring on ROA and TGIF. By Mary Weed-Pickens

Photos by Edward Opp/ Black StaT

The new Young, energetic leilders such as (from left) Niamh Spelman, Olga Evseyeva. Marina Tyshchenko and Justin Lifflander are making HP revolution Russia one of the company's top silles teams. (How's b'usiness 'in the boomi.ng n,e-w MOSCOW/ST. PETERSBURG, Russia markets oJ the Commonwealth of -A Christian Dior boutique faces Independent Sta.tes-the nations of Lenin's tomb in Red Square, Once­ atHP the fanner Sav'iet Uni,on? Pa,TE, 1 somber gray huildings have been looks at how HP Russia, is a key to painted and spruced up in prepara­ Us success. POort 2, scheduledJor (,he tion for Moscow's 850th anniverscuy. Ma1-ch-Aprill.9.98 MEASURE, pro­ Western brand names flash on Russia files a tem1/. developing new HP an electronic billboard near the territories in the 'Index' count1-ies Bolshoi theat.er, of the Cau.casus and Central i1sia. The Russians themselves are -Ed'itor) dressed much better than a decade ago, in clothes indistinguishable from people in other European capitals and arc often attired more stylishly, As is evident everywhere, this va..<;t, proud

Novemher-December 1997 11

Moscow, Russian Federation, population 13+ million

city, once the bastion of A chorus of other U.S. government ban on all exports of Soviet-state plarming, is recent HP hires shares computer technology to Communist busily transforming itself Mila's view. Marina countlies in the early 1980s, staying into a market-oriented Tyshchenko,hro'dcopy on to sell its medical and analytical economy. sales development man­ equipment to hospitals and tmiversi­ There is a boomtown ager who worked at IBM ties while other U.s. companies atmosphere, with restoration and Lexmark before joining closed up shop, and new construction evident every­ HP, is matter-of-fact about her new As a result, ask RussirolS in the where. And as Moscow establishes job: "From everything I've seen in street ifthey know the Hewlett­ itself as the capital of the economic Russia in the IT industry, HP is the Packard Company and the answer "Wild East," HP Russia is busy bring­ best company to will probably ing the assets ofresourcefulness, work for. I'd hate beDa-"Yes." creativity and teamwork to bear on to sell a product "Just look at our service center Top custom­ the palticular demands ofthis emerg­ with services, ers include the ing market. chalmels and so in St Petersburg. It shows we Moscow Inter­ "The most essential quality to have fOlth that I don't have a good reputation. II bank Clm'ency in these emerging markets is a strong feel confident Exchange, sense ofentrepreneurialism coupled about. I'm able to which Pavel with the pioneer spirit: a desire to do my business with enough personal Vlaskin, sales district manager, quali­ explore the tmknown, take something freedom to do my very best." fies as "SUPPOlting the growth in from scratch and give it shape and Part of the attraction is working for trading across all financial markets form," says Kevin Kearney, G.M., a dynamic western company with a in Russia." Conunercial Channels Organization strong company culture, as embodied While HP's quality is already known (CCO) for the central Eastern region! in the HP Way, as well as an egalitari­ and respected, HP's service and sup­ Europe (International Sales Europe­ anism, including the popular profit­ port are setting new standards in a East). "Above all, these people iden­ sharing progrnm, that is not matched, country where state-run combines tify strongly with their businesses, as even at other western companies. were once indifferent to service. ifthey were the owners themselves. But in a country that values friend­ "Just look at our service center They see theirjob as a way to make ships and personal contact above all, in St. Petersburg," says 32-yeal'-0Id their mark in HP and the IT industry." HP's long-st311ding conunitment to Evgueni Mikhailov, who heads the St. HP Russia has attracted a constel­ Russia, dating back to August 29, Petersburg office. "It's so good that lation of entrepreneurs eager to make 1973, when Dave Packard dedicated customers ask for competitors' equip­ their mark. Mila Tschelkanova, who the office in Moscow, has been impor­ ment to be repaired here. They even left her posh job as chief ofprotocol tant in creating the trust necessary to bring in mobile phones. It shows we at the Duma (Russia's parliament) to do business. HP remained committed have a good reputation." work for HP as CIS marcom special­ to the Russian market even during the Competition from both other for­ ist, wants to stay eign companies and local Russian and grow with enterprises is now intense, however, the company so Evgueni and Yury Kornienko although she is spread the good word about HP as bombarded with far afield as Murmansk, the world's offers elsewhere. most northern and largest city inside "I feel that people the Arctic Circle, Closer to home, they who perform talk about HP to the next generation well can make a of Russians. When invited by a local Cal'eer here," she says. "I love my work school to talk to students about what and won't leave. I feel I can grow here." Russia has undergone amazing changes, it's like to work for a foreign com­ says Personnel Manager Olga Evseyeva, pany, Evgueni shared excerpts from phoning outside the HP Moscow office. Dave Packard's book, The HP Way.

November-December 1997 13 Russia

As Russians gain new business skills that were once foreign to them, non-Russians play an instrumental role in bringing the lIP Russia organ­ ization along..Justin Lifflander, a Cornell graduate in Soviet studies with a passion for vintage Soviet limousines. came to the former Soviet HP's Pavel Vlaskin {Ieftl and Ludmilla Union in 1987 and never left, having she says, "we have to be resotu'ceful Fateeva (right) chat with customer Leonid Spitsin outside the Moscow Interbank fallen in love with the country, as well and work together to get the job Currency Exchange. as one of its female citizens. done. These are our two great m,;sets. After wearing a number of hats There's so much good"v:ill in our team in his 10 years in Russia, including that we always work together to get ing the tongue in its check at Commu­ things done." nist Palty conferences while high­ With all the signs of international lighting that Moscow now ha.c;; :100 "We've come along way and commerce anayed around it-Pepsi, nightclubs, up from 10 just three Snickers ice-cream bars-Red Square years ago. it's truly amazing how our no longer feels like the center of a Moscow has at least one Internet world has changed. " dosed, secretive society. NevJswcek cafe and others are on the way. magazine recently dubbed Moscow Much has changed, and very rapidly. American Embassy dliver, Justin "The New Patty Headquarters," point- As potential customers rock with now is responsible for the corporate the group Time Machine at an HP­ account sales district in Computer sponsored conceit, the dour gray Business Organization Russia. He HP Russia in brief town that was once known as the points proudly to the broad range Headquarters: Moscow/Sales Office: nerve center of the KGB is fa.')t of team-oriented success across the S1. Petersburg lThe former Soviet city becoming fanlons for new acronyms business units, which brought about incarnate is Moscow while St. Peters­ like ROA (retum on assets) and TGIF the Metro contract and another to burg keeps its aristocratic vestiges. (Thank God, it's Friday). supply HP LEDs (light-emitting Also, Moscow rivals Hong Kong as the "People would wait for hours to diodes) for Moscow traffic lights. second most expensive city in the buy simple household commodities," "These are great examples of lIP's world after Tokyo. And St. Petersburg says Olga Evseyeva, IIP Russia per­ role in meeting the demands of a city is in the top 10.) sonnel manager, as she recalls stand­ in the process of rapid moderniza­ Established: August 29, 1973-ln ing in long lines and minus 30-degree tion," Justin says. the 1980s, when other U.S. IT com­ (Celsius) winter temperatures. "The At age 29, Dublin-born Niamh panies had to leave the U.S.S.A. during difference today is night and day:' Spelman is lIP's youngest country the boycott years, HP was allowed to Today Muscovites can stroll into manager for ceo. She's another support and maintain medical and a computer store and buy one of the good example: drawn to the Russian analytical equipment to hospitals most sophisticated computer systems language and now fluent in it, she and laboratories. available in the world. "We've come manages the biggest chunk of HP's Number of employees: 200+ a long way," says Olga proudly. "and revenue, traveling far afield (even to Average age of employees: 31 it's truly amazing how our world the Georgian Republic during its civil Sales growth: 70+ percent in two has changed." M war) to cement relationships that of the last three years. eventually blossom into contracts. A few top customers: Moscow (Mary Weed-Pickens 'works in "Because we are an emerging mar­ Interbank Currency Exchange IIP,s En1'Opean pubhc affair::./ ket and have to pioneer new ground," (MICEXj, Central Bank of the Russian communications dppm·t-menl in Federation, Moscow Metro. Geneva, Switzerland -Editm)

14 MEASURE VOURTURN

MEASURE readers share their views on matters of importance.

A little unrealistic MBWA isn't working I e!\ioyed your article on work/life I just retired from HP in April after 17 balance, however, it did seem a little years. I have to agree that MBWA isn't unrealistic. Sort oflike a millionaire working now. It seems that manage­ talking about money problems. ment is too busy, like they have more I would really like to see some sto­ to do. It seemed to start ahout five lies about someone in my situation, a years ago that you didn't see man­ single mother, or, say, a person t.aking agers or supervisors come around care of a parent. That type of story very much. I hate to see this happen would really help those of us who to a good company like HP. haven't achieved workllife balance BRICE BENSON yet, but are looking for ways to reach Rohnert Park, California that balance. JULI-MARY BEATTY Back to basics Mountain View, Califomia Some comments on the MBWA cuticle in the "From The Editor" Vietnam revisited HP. The article on new product cate­ section ofMEASURE of September­ I e!\ioyed reading the article, "A gories being created in the Consumer October 1997: dragon prepares to roar." I served for Products Group rdates directly to the MBWA will only exist if managers 1-1/2 years in the Republic of Vietnam inl\jet pens produced in IJBU. Lew believe in it and work at making it a while in the U.S. Air Force, beginning Platt's letter on sustaining growth part oHhe HP Way. And yes, it does in 1969. I was a system maintenance specifically references digital photog­ take some effort, which is probably controller, 1883rd Communications raphyas one major opportunity. why it is not embraced by many. Squadron, Phu Cat Air Ba'5e near Qui I'm grateful for how HP retained It is sad but true, but maybe we Nhon. While in Vietnam, I saw many my services by being ahsorbed into don't have time for people anymore, troubling things, but the people were IJBU. I'm thrilled to be part of this or is it that we lost sight of one of wonderful and genuinely fliendly. business for its profit/growth poten­ those aspects of good HP business I hope to visit and see the vast tial and for the challenges associated because it doesn't have a specific $$$$ change and development of Vietnam with competing in this huge business. measurable tag associated with it'! someday soon. I'm very pleased with JOHN LODAL It seems that good examples set HPVietnam G.M. Bob Hughes' efforts Boise, Idaho the tone for good business practices in providing technology growth and within the organization. Getting back revitalizing a war-tom country! to basics might be in order! ROBERT WING JOHN ZEPALTAS San Jose, California Please send mail Atlanta, Georgia Do you have comments about some­ Articles spoke to me thing in MEASURE? If we publish Oops The combination ofarticles in the your letter, you'll receive a Dr. The "retirement" date for the HP-35 September-OctoberMEASURE really Cyberspace MEASURE T-shirt calculator (September-October 1997 spoke to me. I am one of about 160 lone size fits most}. MEASURbj was 1975, not 1995. Sony former Disc Memory Division employ­ Send your comments to Editor for the typo. ees absorbed by the Inl\iet Business Jay Coleman. The fax number and Unit (LJBU) in August 1!)96. addresses are on page 3. Please The last 12 months have been a limit your letter to 150 words, sign real learning expelience for me. I am your name and give your location. excited to be palt of what looks to be We reserve the right to edit letters. a long-tenn core growth engine for

November-Dec:elllher 19rJ7 15 LETTER FROM LEW PLATT

HP's chairman, president ...... iscalyear 1998 and CEO outlines the (FY98), Business Fundamentals which for fiscal year 1998 and began on November 1, marks a discusses the crossroads critical turning point atwhich HP stands. for Hewlett-Packard, and I want to tell you about some signifi­ cant changes in our planning process. Historically, this is the time of year that we announce and launch the company's Hos~thosegoals that require break­ through thinking and tremendous, multi­ year efforts. We also announce the year's Business Fundamentals­ equally important Lew and 11 other Silicon Valley executives enjoy a lighter moment dUI goals that demand row, from left) Larry Ellison. Oracle; Marc Andreessen, Netscllpe; And, creative approaches (bottom row, from left) Steve Jobs, Apple Computer, Pixar; Scott Mcfl Goodrich & Rosati; Lew Platt. HP; and Jim Clark, Netscape. to continuous improvement. growing. We want to ensure that that However, our management team doesn't happen to us. has decided to postpone any com­ So we've taken the two FY97 Hoshins panywide Hoshins until after our -Customer Satisfaction and Our annual General Managers meeting in People-and converted them to Busi­ January. The Management Staff has ness Fundamentals (shown on the spent considerable time since summer opposite page). Within Customer Sat­ rethinking the company's entire strat­ isfaction, for example, we've retained egy, structure and management prac­ the focus on order fulfillment and tices to better prepare HP for the we'll continue looking at measures of future. We're still working on this customer loyalty. Similarly, Diversity process and plan to share our conclu­ has become a Business Fundamental, sions at the General Managers meeting. with increased emphasis on under­ lIP is at a crossroads. We've grown represented minorities and women. significantly during the past several Although we have no FY98 com­ years. The sobering fact, however, is panywide Hoshins at the moment, we that historically, very large companies encourage major businesses to estab­ have not achieved high growth rates. lish their own Hoshins where per­ HP has reached the size threshold at formance breakthroughs are needed. which companies have had trouble

16 MEASURE FY98 Business Fundamentals 1. Order and revenue growth. Goal: Business organizations/groups meet quarterly and year­ to-date percentage revenue growth targets. 2. Net profit percentage. Goal: Business orga­ nizations/groups meet quarterly and year-to­ date net profit percentage targets. 3. Business-external ROA (return on assets). Goal: Business organizations meet quarterly and year-to-date business-external ROA targets. 4. Product service and support reliability. Goal: Business organizations set and meet improvement goals for warranty dollars and annualized failure rates. 5. Customer satisfaction!loyalty. GoaV measure: To be determined by the second half of fiscal year 1998. 6. Order fulfillment. Goal: Business organiza­ tions/groups meet quantitative goals for order fulfillment improvements. 7. U.S. minority business program. Goal: Each business, field and Corporate entity sets and meets a percent and dollar award improve­ ment goal. HP overall goal is more than 8 per­ cent and $600 million. 8. Diversity. Goal: Businesses. geographic operations and Corporate entities implement significant activities that will result in meeting improvement goals for African Americans and Latinos in functional management and above in the United States and women at all levels of management worldwide. J the photo session for the August 18-25 cover of Business Week magazine. The executives are (top 9. Worldwide Employee SurveV results. Goal: 'ove, Intel; AI Shugart, Seagate Technology; Gordon Moore, Intel; John Chambers, Cisco Systems; Businesses, geographic operations and Cor­ Iy, Sun Microsystems; John Doerr, Kleiner Perkins Caufield & Byers; Larry Sonsini, Wilson Sonsini porate entities maintain, improve or exceed country norms for Employee Survey results. Some people may look at the 13 Bill Hewlett and Dave Packard 10. On-time performance evaluations. Goal: Business Fundamentals and see it as could have established two or three 100 percent of all performance evaluations a daunting list. Is it long? Yes, but it's Corporate Objectives, but they chose and development plans completed on time. essential they all receive seriou.·:; seven. And they expected excellent 11. Worldwide business-controls assess­ attention. We'd all like more simplic­ performance on all seven. The same ments. Goal: 100 percent of an organization's ity in our lives, but the reality is that is true today. entities achieve an overall acceptable busi­ we work in an e>..1J'emely complex Your general manager will com­ ness-controls rating on internal evaluations. business environment. Sustained busi­ municate more ahout the Business 12. Safety leadership. Goal: Businesses, ness success requires doing many Fundamentals and specific Hoshins geographic operations and Corporate entities things well. for your organization in the coming implement HP's safety leadership self­ You can't, for instance, focus weeks. And when we finish our assessment at targeted priority entities/sites solely on profit while ignOling the analysis of HP's strategy, structure and develop safety improvement plans, includ­ importance of maintaining a safe and and management practices, you can ing injury-reduction goals by October '96. healthy work environment. You can't expect to hear more from me and 13. Worldwide EHS (environmental, health channel all your efforts into customer from your G.M. on what we need to and safety) management. Goal: 100 percent of satisfaction and neglect employee work on to ensme HP's continued an organization's entities/sites develop and satisfaction. The best organizations growth and success. maintain effective EHS management systems in HP have demonstrated repeatedly that identify and address their EHS risks and that you can set high goals and meet continuously improve their EHS performance. or exceed most, if not all, of them.

November-December 1997 17 PEOPLE

Where there's a will... Physical and Un:~9 QITr {u technological .....­ ...... /"Y.llt J 7?i, rmUIW (I challenges are Z. t ~( rl-3. a1 a n :he OJ no match for of Guadalajara-rousing its inhabitants. Guadalajara's A tortilleria selling tortillas de Juan Cortes. mano (handmade tortillas) opens for business as a bright green John Deere tractor makes its way along a dusty, By Grace Razo potholed road to nearby cornfields. A young boy leaves the comer tienda Photos by Diana Smith (store) with a chilled liter of Dos Equis cerveza (beer). (,Quien sabe para quien? (Who knows for whom?) In Juan Cortes' home on la calle (street) Begonia, Juan moves from his wheelchair to a standing device, where he spends most of his workday in front of an HP OrrmiBook 800 CT. Juan, a support engineer for the Prod­ uct Processes Organization's Mini-Max: Systems team, is part of a I3-member global team-Juan, who works in Guadalajara, and four each in Dublin, Ireland, Singapore and Palo Alto, Cali­ fornia. He monitors computer jobs running on three continents. Addition­ ally, he provides call-in support for his North American customers. Juan says neighbors who have seen his computer setup think it's more like a video-game machine, rather than a powerful piece of communica­ tion technology. "The only way most people in the neighborhood can understand some­ one spending eight hours a day in front of a monitor," Juan says, "is

18 MEASURE Every weekday afternoon. Juan picks up his ll-year-old niece. Angelica Cortes, from school to enjoy lunch at EI Molinito (Little Mill), a local restaurant.

November-December 19m 19 People

Guadalajara, Mexil:o, population 2+ million

because he is having fun Too much inactivity, Getting a home setup-an HP playing video games." Juan says, was degrading basic-though, was a trying feat. It Juan, the neighborhood's his health. took a bundle of pesos and six months sole telecommuter, epito­ "Everyday, you don't of "test and proof" by a number of HP mizes irony in this commu­ know whether you're amigos to properly activate Juan's nity ofcontentment, where going to make it to work," home computer. stress and technology are non­ he says. "I had been worried "It wasn't anyone person who existent; where faces reflect tranquility. that I would lUlexpectedly be lUlable found the problem," says Enrique And as the clickety-clack ofJuan's to work. When I got the same com­ Baez, IT infrastructure manager. "It computer keyboard keys hannonize puter environment at home as at was a team commitment." with local barnyard roosters, Juan work, I was relieved." This sense of commitment has a can't keep the smile from his face. In 1988, when Juan was injured long and heartwanning history. After His 33.6-modem connection is in a car crash that left him a para­ Juan's accident, co-workers rallied working "excelente." plegic, HP became more than a unprecedented support to help him Juan frets about few things, but notable part of his life. It's appar­ out. Not a typical reaction in Mexican when a chronic problem with a pres­ ent Juan ranks his job near society, where people usually offer sure sore-developed on a business numero uno (number one). sympathy more than anything else, trip to Singapore-rendered him "Ftiends in the same situation say many of the employees. homebound, he desperately wanted were given a (severance) paycheck in "Here, we're not used to caring to keep working. the hospital," Juan says. "I was lucky." about the handicapped," says Julio Acevedo, Juan's host manager and manager of HP'sMexico International Procurement Organization (MIPO). "We had to ask our­ selves, 'What do we need to do in order to make Juan feel like every­ body else?'" After employ­ eesand HP donated money to buy Juan a car, Rafael Mayorquin, a MIPO process engineer, bought a hand­ control device Most of Guadalajara's public buildings are not wheelchair-friendly, but Juan-getting assistance from his host man­ while ona ager, Julio Acevedo-says, .. It's changing now."

20 MEASURE "When the fIrSt "It was frustrating," says Megan modem blew, we Allen, Mini-Max Systems manager in thought it was Palo Alto. "But without Juan doing Whether on the job at the HP Guadalajara site or at home, Juan the electricity," what he does, our work wouldn't get stands on average six hours a day, trouble-shooting network glitches for his global customers. says Eduardo done. He's an integral part of our Ochoa, technol­ team. Juan is a major link in our business trip in Boise, Idaho, that ogy specialist. "When the next one global, 24-hour software-support enables Juan to drive. blew, we thought "He spent a whole weekend install­ it was the tele­ ing it," Juan recalls. "After a 15-minute phone line." training workshop, we spent some But the real hours practicing in HP's parking lot. bullies in the Was that fun? I almost crashed into neighborhood an HP fleet car." were the illegal And in a country dominated by electricity lines­ what Juan describes as an "aggressive known as los environment" for the disabled, HP diablitos (little installed handicapped facilities to devils). Rigged make things easier for him; complete from the city's with a wheelchair ramp, push-button rnainpower electrical doors and a wheelchair­ lines to people's accessible bathroom. homes, they are During the problematic six months a resourceful it took to handle Juan's connectivity way for locals to issues, HP Guadalajara employees get free electric­ showed him this same dependability ity, but haphaz­ and determination. ardly done. HP Guadalajara's facilities department regularly checks on Juan's "Juan called home computer setup and considers it as another HP site. one day to tell us he lost his connection," Facilities process. During his mornings, he Manager Pedro M31tinez says. attends to computer jobs running in "Someone nearby had used a vend­ the HP European data centers; in his ing machine." afternoons, Juan tends to jobs rlUlning Ten minutes later, it was a mixer. at HP's Singapore data center. He wit happened five times a day," participates in staff meetings via tele­ Eduardo says. conference and stays in touch with It was the makeshift wiring that tearmnates and customers via e-mail, was causing the biggest headache as voicemail and phone." it continued to wreak havoc with Elsewhere in the HP world, hook­ Juan's net-access-modem (NAM) ing up network access would have connection. taken less than a day, minus all What Juan needed, and got, was his the fuss. own personal electrical line: a UPS­ "It's Mexico," Pedro says, matter­ uninterruptible power supply. Some­ of-factly.

Co-workers regularly ask, U Juan, what else thing not commonly fOlUld on la calle What Pedro means is that Mexico's do you need?H in their effort to make his Begonia, or in all of Mexico, for that meager telecommunications infra­ work environment more comfortable and matter, because ofits tremendous cost. structure is a part oflife. It wasn't make him feel RIess alone." lUltil recently that AT&T began pro-

November-December 1997 21 A neighbor with heart ailments, Jose Manuel Ariana, gets advice from Juan on the impor­ tance of exercise in maintaining a healthy mind and body. viding long-distance service in Clearly, the HP Way runs deep at Guadalajara. And everyone in Mexico this HP site. One story has it that knows that when there's high humid­ when Juan's wheelchair had a flat tire, ity or rain, telephones may not work Jaime Reyes, HP Guadalajara's G.M., or electricity goes down. brought the replacement with him Now imagine Juan's neighborhood when he returned from a business hip void of any type of measurable infra­ to the United States. structure. Where electricity and Juan says, "Sometimes I'm in a indoor plumbing are thought of as pretty urgent situation. I can't find luxuries, rather than necessities or a 6-inch tire in this whole town!" commonalties. Without a doubt, countries and "I was disappointed when 1fIrst cultures abound in contrasts. But saw the neighborhood," Pedro says. fortunately, HP values are min'ored "I thought it was in better condition. worldwide. But it was important to do this and to "HP has helped Juan have a good work in these conditions." life," Julio says. "If this had happened at another com­ pany, forget it. " Juan whole­ heartedly agrees. And has the smile to prove it. M

Senor Juan Cortes. Juan's father (pushing wheelchair). offers loving support while Juan juggles work/life demands. Sometimes. Juan's dog, Rico, helps a little, too.

22 MEASURE "MV goal in HP is to move us into a new era... of information appliances. " What if it fits in

What will the next (Earlier this year, Kevin O'Connor, editor ofthe HP.Now Web site, spoke what I scanned. I generation of HP products with Don at his office in Pal-O Alto. didn't have to tell the printer anything, look like and how will they Here is a portion of tha.t interview. I didn't have to tell the scanner any­ perform? Just ask Don -Editor) thing. I just said "send" and it printed. Now think of a camera. I should be Norman, who heads the What will you be working on able to take a picture with my camera Advanced Appliance here at HP? and go to the nearest printer and print Design Center in HP's I)CJ II.. My goal in HP is to move us the picture. How big should the pic­ into a new era-what I believe is a ture be? Well, how big a piece of Consumer Products discontinuous change from the way paper did you put in the printer? It's Group. Don, aformer vice that we do devices today-to the era all automatic. president of the Apple of infonnation appliances. If I send a picture to another cam­ When I left Apple, I looked around era, the other camera stores it. And Research Laboratories at and tried to pick a computer company if I take Apple Computer, has the or technology company best equipped my scan­ job of designing products to move us to a new generation, to ner and I appliances, and that's why I came say, "I "A camera is suddenly that are ajoy to own and toHP. have an a very different dev;ce. " ajoy to use. An appliance like a toaster is a interest­ good example of what I have in mind. ing document, would you like a You buy the toaster, take it home, copy?" And you say, "AlII have is plug it in, drop the bread in, push the my camera with me," I'll send the lever down and it works. You don't picture to your camera. The camera have to read a manual. We should be now becomes not a camera but an making information appliances that image-capturing device. work the same way. Or, if I'm on a vacation and I take For example, what if I had a scan­ some pictures and my friend takes ner that could fit in my pocket? When some pictures, and I like one of the I'm reading something interesting, I pictures my friend takes, I can say, could take out my scanner, scan what "Give it to me." My friend aims his I'm reading and put the scanner back camera at my camera and, zap, now in my pocket. Maybe when I came to my camera has my friend's pictures. a printer, I could say, "Hey, I need a A camera is suddenly a very differ­ hard copy," and I'd take my scanner, ent del,rice. It can capture images find the item I want, push a little but­ through its lens, from other cameras ton and, zoom, an infrared beam goes or from a scanner. If I'm at a kiosk at to the printer and the printer prints Yosemite and professional photogra­

'Jovember-December 1\197 23 "/ think it's time for HP to change and I believe that HP's management wants to change. "

just told about an acoustical­ the big print jobs and that's all very imaging device for medical fine and wonderful. But when we start ..... ,...... ,...... uses that sounded like it was getting out to the front office and we designed very, very nicely, start getting out to the schools or into with full attention to the the home, HP really has to change. users in hospitals and the We have to change the style of "'lfo.-.o.'t...-'f' teclmical staff, the nurses, products. We might even want to the physicians and the make things in color, not in HP gray, phers have loaded their photographs patients. And, moreover, it tests well and not square edges, but rounded into a kiosk and I find a photo I like, I across the world. There are some very edges and curves and funky designs. can add it to my camera. So when I big differences in the way these It's a very different world out there corne horne from the trip I have pic­ devices are used across the world. in Consumerland. wes I've taken, pictures my friends That one looked have taken, maybe even a document very nice. For most of its I've captured and the pictures profes­ When I look "...as soon as you move into the history, lIP has sionals have taken. at the computer been a company I can go on like this for an hour or business and home (market), it's a very of technologists two. I could write a book explaining laser printers and different kind ofgame. " building prod­ what I'm trying to do and, in fact, I HP DeskJets, I ucts for tech- already did (Taming Technology, have to tell you 1shake my head nologists. You're suggesting we which will be published in late 1998 somewhat. This stuff looks like it's have to really get out of that box. by MIT Press), built by engineers. It looks like it's Don: I think it's time for HP to I think HP is the company best made for engineers. And it's just not change and I believe that HP's man­ positioned to make this happen. going to make it in the everyday agement wants to change. Ifyou're world. It's not going to make it in building instruments for engineers, Are there lIP the office world and it's not going to you're doing fine. But even here products out now make it in the consumer world. It's there's some evidence that you've got "I would like that you think are too technical, there's no elegance. to change, because the engineering to see 20 or especially good There's no sort of...fun. I mean, we groups are changing. 30 printers in in terms of user­ should be able to make products so As the instruments get more pow­ centered design that when you look at the product erful and easier to use, you will fmd every home, or ones that are you say, "Hey, that's neat. I'd like to less-skilled people may be using them, just like we getting us closer have one." or a wider range of people than you have 50 or to this vision? Ideally, somebody sees a picture had planned on. Don: There are of the product and says, "I want one," HP also would like to get into the 60 electric some HP products without even knowing how much it horne business. And as soon as you motors and that I think are costs or maybe even what it does. move into the home, it's we don't quite good; some That's what you have to do in the a very different kind of them are in the consumer world. Same in the office of game. We need know it." instrument divi­ world We need to appeal to individual different talents. HP sions. I saw a logic people. Sure, we make really nice should change; all tester today that I thought was actually UNIX system servers and very nice companies should very nice. Windows NT servers change. HP has Calculators. I don't know enough and very nice big changed ch'amatic­ about a lot of the other devices. I was printers to handle ally since ~~~_, the early days of

24 MEASURE that frrst audio oscillator and it should Tomorrow I could buy a Compaq or comes a continue to change. a Dell, and it goes back and forth. photo. I A hundred years from now, I hope And what happens is you have pretty would "... we should be able somebody will say to HP it should stable market shares here. You could like to see to make products so change. That's why it will be around be second or third or even fourth and 20 or 30 that when you look a hundred years have a comfortable business and last. printers from now. When it comes to a nonsubstitut­ in every at the product you able good, that's a different story. A home, say, 'Hey, that's neat. Do you nonsubstitutable good is like whether just like I'd like to have one.' " think Apple you're going to have AC or DC for we have will be your electrical current in the United 50 or 60 electric motors and we don't around in States. Or whether you're going to know it. Why not lots of printers a year? drive on the left or the right side of and we don't know it'? We don't call the road, or what the width of the them printers. railroad t.rack should be. Or I'd have a photographic unit in my whether you're going to use study by the TV set and when I want UNIX or Windows NT or Mac OS another copy of a picture, there's a or OS/2 or the Next operating little slot where I put the old picture system or Windows 95. With in and on the bottom out comes a non-substitutable goods, it is new picture. a wirmer-take-all result: only Is that a printer? Well, secretly it is. one survives. When it comes to Is it hard to use? It sounds pretty easy computer operating systems, tome. the winner is Windows. Sorry, Apple; sorry, UNIX. Being best Is good design more expensive is irrelevant. than bad design? Don: Good design is often cheaper J)on:Oh, yes. Apple will be around Can you really make a printer as than bad design, because you elimi· in a year. It takes a long time for a easy to use as a telephone? nate a lot of problems. Good design is company to die. Wang is still around. Don:I don't see why it shouldn't not just aesthetically appealing and I think the problem is this: There be easier. Telephones today are pretty not just easy to use, but it should be are two kinds of economic goods­ complicated. You often have to dial easy to manufacture, easy to repair, what I call "substitutable" and "non­ long strings of numbers and you have easy to maintain. It helps reduce the substitutable" goods. A substitutable to worry about the star and the num­ help-call costs and service calls. If you good is like Coke and Pepsi. If I ber sign and sometimes you've got all do good design from the very begin­ buy Coke today, I can buy Pepsi those extra buttons on the side of the ning, it can even be cheaper. M tomorrow. And this is classic eco­ phone. Gee, with a printer, what do I have to do? Just (For the complete interview with make sure it has Don Norman, check the lIP.Now Web paper and an ink site: http://hpweb.corp.hp.com/ "Good design is often cheaper than bad design, cartridge. My goal publish/hpnow/news/features/ because you eliminate a lot ofproblems. " is a printer that norman/index.htm) just sits there and nomies in that what you have then when I want to print, I take out my is market share. little pocket viewer and say "send" We're in the Windows 95 market and it prints. with HP's products. This is substi· Or, I take my camera, go to the tutable. Today, I can buy an HP. nearest printer and say "send" and out

November-Dec.ember 1997 25 HP Bergamo's catapult sculpture lifts the spirits of Antonio Piceioli. Carlo Seoeeo, Sabrina Marziali, Stefania Donadoni, Battista Salvi, Tiberio Tesi, Lucilla Cornali and Steven Connor.

Leading the Bergamo team is Gen­ BERGAMO,ltaly- -ng the The gleaming silver eral Manager Cathy Lyons. She has Scannl Prometheus Sphere established herself as a dynamic per­ t· in front of HP's Bergamo son and involved leader in a short -b-I- Hardcopy Operation period of time. Soon after arriving in I I les ~:~ll~:~Z: ~:~ht~en Bergamo from Boise, Idaho, she began POSSI taking language lessons, and translat­ With anew genera I on even more significance. ing and delivering her coffee talks in . According to Greek mythology, Italian. She also has met on~n-one manager and the creation Prometheus was the Titan who stole with about 175 of BHC's 3.'10 employees. of anew ma rket categ 0 ry, fife from heaven to benefit mankind. "In traditional Italian companies, the Bergamo Hardcopy TheP.rometheus.Sphere, a plaque . the word is, 'Never speak to a general ... explams, symbolIZes "all of the SOCIal manager,' " Cathy says. U At HP, it's 'I OperatIon IS looking toward and cultural values which are the expect to see you.' " exciting growth. foundation ofHP's future." HP began in HaIy as a sales sub­ But for BHC employees, the sidiary in 1964. The company's first By Harvey Gotliffe Sphere-popularly known around Italian manufacturing site opened in Bergamo as "the catapult"-is a sym­ Bergamo in 1991 and began produc­ Photos by Erol Gurian bol of their new status. BHC has a ing fonnatter boards for HP LaserJet worldwide charter to produce the printers the following year. BHC, HP Network ScanJet 5 scanner-a which is part of the LaserJet Solutions brand new product in a brand new Group, moved to its new facilities in market category-and that could 1994. Its worldwide charter is to pro­ launch a whole new era of expertise duce network document scanners, for this relatively young HP site. beginning with the HP ScanJet 4Si network scanner.

26 MEASURE Vinicio De Luca, technical marketing­ h d ord \ 'I service engineer, came to BHC in r I i, and il I 1992. "The operators on the produc­ in' ~ 1t) IJ t 5 a.M. Cathy Lyons, left. practices her Italian tion line were asking 'Is this real? We during its development stage in May with line operator Sabrina Capelli. don't have constraints.' They would 1996. That November, as the main tell their spouses about the HP Way, liaison to Comp31t, he convinced the machines. They also wanted to inte­ and they wouldn't believe it." company to be a beta site. In early grate the intercompany mail at 50 They believe it now. The retention 1997, two ScanJet units were installed or 60 locations. The Scan.]et 5 scmmer rate is excellent, as 220 employees after working closely with Compart's met their needs. manufacture 250,000 laser-printer "They are better than the others. formatters a month working for HP's We discovered they were very low European customers on four assembly "... there san enormous battle cost in insertion and operation. The lines over three shifts. Another 120 only one that will shrink the cost of employees define, market and produce coming up and competition ownership," says ITO's Group Direc­ 800 HP Network ScanJet 5 scanners a will be stiff from major players. " tor Alfredo Recine. "With fewer month, the second generation of net­ people, we must be flexible. The work scanners. The latest was intro­ fax-server company to accommo­ functionality ofthe scanner is a plus duced in March 1997 to help businesses date them. and the savings are true." eliminate the massive amount ofpaper­ "We leave when the product is Valfrido Romitti, ITO's assistant based communications. working and they understand it," group director adds, "HP responds to More than 90 percent of all infor­ Vinicio says. "We let them play with our needs and there axe absolutely mation is still paper-based, with an it, and get feedback before introduc­ no problems with the scanner because estimated 12 trillion pieces generated ing the product." the configuration is so simple." armually in the United States alone. lTD's strategy was to save money The ScanJet 5 also is being used Part of HP's Digital Workplace strat­ by reducing or eliminating fax machines successfully by Prudential, Ernst & egy is to eliminate copying, mailing -substituting one scanner for 10 fax Young, Mercedes Benz, DuPont and and the use of traditional fax machines, which are time-intensive, costly and unreliable. The ScanJet 5 allows companies to simply and efficiently convelt paper documents and images into an electronic format that can then be distributed easily-and it can be inte­ grated with existing LAN fax solutions. "Our target market is the corporate segment that has adapted electronic distribution and messaging technol­ ogy for inter- and intra-company conununications," Cathy says. HP's marketing center in Germany found the ideal customer in Milan­ the huormation Technology Division (ITO) of the Compart-Montedison Group-which is involved in engi­ neering, agro-industry, chemicals and energy, with 238 plants in 20 countlies. For HP's Vinicio De Luca fright}, Milan-based Compart-Montedison Group, represented bV Valfrido Romitti and Alfredo Recine, was the ideal customer for the new HP ScanJet 5.

November-December 1997 27 Atop the hill is Bergamo's citta alta iold town!. visible from the distant HP site. Ancient i1grarian structures on the left and more recent Venetian ramparts and walls completed in 1588, from middle to right, support the ViaIe delle Cento Piante (Avenue of a Hundred Plants).

Burlington Air, among others. BHe's small but dedicated U.S. and Euro­ pean marketing center and country Give them a hand champion teams have fueled the Tiberio Tesi, factory operations man­ at the university in the evenings. They adoption of the new product, and the ager, didn't have a university degree included math, statistics, history, eco­ c+ c when he came to Bergamo Hardcopy Cl network scanner product categOl1' nomics, physics, chemistry and grammar. ~f... now is recognized and tracked by Operation lBHCl in 1991. Butthrough There was no promise of promotion. c: market analysts. HP's encouragement, he earned one but the seven students who enrolled o "-; International Data Corporation's from Milano University, and the degree believe that the degree will make them "3 helped him move into his current posi­ Q. The Worldwide Scanne-r Ma.rkp-t more marketable. HP paid atotal of o Q. Revie-w a.nd Foreca8t, 1.9.95-2001, tion in 1995. 30 million lira 1$17.626 U.S.) forthe stu­ ~ shows that. HP owned the entire net­ Now Tiberio and Carlo Scocco, dents' books, tuition and other costs. III .= work scanner market in 19D6. HP's factory technical support manager, Steven Connor, manufacturing market share is projected are sponsors of atest program with manager, says that the investment to be 73.1 percent local universities, spearheaded by benefits HP. "We pay for the program. worldwide in 1997, Domenico Rota, project control and which is the cheap part. The students with FUjit.<;u next la boratory supervisor. put in the time, which is the expen­ at 19.2 percent. HP identified nearby schools with sive part." Cathy is opti­ a common interest to develop specific "I hadn't studied in 14 years," mistic about courses for BHC employees. The pro­ says student Antonio Piccioli, process selling several gram was designed to benefit all of the supervisor. "It was hard to have a job, thousand units a participants, with HPoffering insight a family and school, and to try and do month within two into the company's corporate culture everything the right way." years, but knows "there's an enor­ through the classes. Sabrina Marziali concurs, "It was mous battle coming up and competi­ The first year's degree-directed very hard." Although Lucilla Corn ali tion will be stiff from major players." program from September 1996 to June missed having free time, she found In October, the ScanJet 5 added 1997 was offered to all employees. The school "very satisfying." Internet e-mail capability so cus­ classes met at SHC twice a week and tomers can select up to 250 destina­ tions on one machine. By the fall of 1998, it will enalJle customers to send infomlation in color and send direct e-mail from the front paneL Cathy believes that there are "seeds of opportunity to grow" in this new HP venture taking place near an old Italian city. "We could really take it places." M

(Harvey Gotlifje is ay"oumalism professor and head of the magazi.ne program at San Juse S/,al.e Uni1Jer8ity, and a free-lance wri.ter based -in Santa Cruz, Califo·rn:ia.-Editm) Alba Cornali dusts the HP ScanJet 5 scanner that sits on display in the Bergamo Hardcopy Operation lobby.

28 MEASURE EXTRAMEASURE News from around the HP world By Lila Kakuk and Grace Razo

Building a You've come a Now poised to take another step, these three foundation long way conferences have joined MIAMI, Flolida-"These Few would have thought to form the HP R(~gional children grow up in worse back in 1988 that one of the Women's Conferences than imaginable neighbor­ things HP would become (RWC). Where in 1988, an hoods struck with pover­ known for is its women's overwhelming 400 attend­ ty, clime and drugs,~ says conferences. ees gathered to discuss a Dr. Keith Scott, director of Since the humble begin­ variety of business issues, the Linda Ray Intervention nings ofthe Teclmical Wom­ a combined 4,000 people Center in Miami, Flolida. en's Conference (TWC) in arc expected at HP's 1998 "Our job is to build a Linde Rey presents II young gradu­ the Corporate Offices cafe­ RWC scheduled in three ate with her diploma and a kiss. fO\Uldation for them." teria in Palo Alto, California, states: California, Colorado HP is contributing to that infants. "Our hope is that nearly 10 years ago, two and Georgia. foundation through a grant by intervening early we will others-the Rocky Moun­ Visit the RWC Web site at of $90,000 worth of com­ move these children well tain Women's and the East­ llttp:l/rwc.hp.cup.comlrwc. puter equipment. The equip­ into the normal range for ern Professional Women's And note, the conference is ment will be used to help social and academic devel­ conferences-have also not "for women only." In the track the ongoing mental opment," Keith says. been held to showcase the past, 10 to 12 percent of the and physical progress of Keith credits his friend, achievements of HP women. attendees have bf~en men. children prenatally exposed HP engineer George Smith to cocaine. in San Jose, with being a The long-term effects of key player in getting the cocaine exposure in utero grant. George claims at are largely WlknOwn. The being "nothing more than 100% Linda Ray Intervention pro­ a link." He's just glad that gram is a clinical trial that he could help. Arecent s rvev will provide the first real To learn more about camm'ssioned bV research data on the effec­ the Linda Ray Intervention He _ -packard tiveness of early interven­ Center, see its Web site at 'd' ..... amB­ reveal!;)' ,gl. g tion for substance-exposed http://www.iin.org!. teur p1:l0 graph~rs 'wo dbe eagerto e: pa the bene , o pC P omgrap'V W Reporting activities ther w re asim e" from World to ensure that the World ine~e siva wVto Cup '98 events enjoy the deve; 0 ,potoS on Cup'98 most cohesive, integrated, their home pes. HP isn't playing games IT environment in the his­ s when it comes to World tory of organized sports. Here are ataw wav Cup soccer. Make a goal to find out , e¥sal, ,eywoud more about these activities As the official hardware use d'gital ~ma B • and support solutions sup­ at http://www.france98 plier, HP is involved in hun­ .com and http://www, I l '\ ft' the photo-processing dreds of behind-the-scenes grenoble.hp.comlwc98. 15p erceoto~photosare e In EachVear, vela eor stored in aboX, en P . nications Research Source: InternatIOnal Commu

November·December 1997 29 EXTRAMEASURE

Meanwhile, back in Roseville, our web-slinging friend finds himself precariously perched in the jaws of Johnny Davis.

WORKING plan to integrate the IMOTHER KUDOS HP OpenVicw Telecom For the 10th year, Work­ produd line with Vertd's ing lvlother magazine line of dewloper tools has named lIP onf' of the and servicf's. "100 Best Companies in America for Working ENTERPRISE Mothers." Companif's ISYSTEMS GROUP earned their place on the The EnterprisC' Server list through their efforts Group, led by BiJJ Russell, at providing "family­ HP vice president and friendly" environments. G.M., has created two The magazine start,ed new divi.sions out of the compiling the list in 1886. former Enterprise Sys­ tems Division and Con­ vex Tedmology Division. I DIGITAL VIDEO PARTNERS It also has changed its Holy his favorites are the I name to the Enterprise collection, Batmanl X-men, Batman, Spidennan HP .Uld five other high­ Systems Group. tedlIlology companies ROSEVILLE, Califomia­ and the Spawn characters. The new dhisions are "r bought my first one on a The collection occupies have banded together to the High-Performance support format specifica­ business trip," says .rohnny its own bedroom in Johnny's Systems Division (IIPSD), tions for Phast'-Change Davis, business process home. The closet doors led by Janice Chaffin, RE'Writable, which is a analyst for the Americas have been removed to eas­ G.M., and the Internet) 120mm disc format for Integration Center in Rose­ ily store boxes of comic Application Systems future digilal video disc ville, California. "Later books. Lining all four walls, Division (IASD). I bought another, then a mixed army of evil mutants read-only memory (DVD­ another, and another, and defenders ofjustice ROM) drives. Joining HP are Philips Electronics ITG ACTIVITIES until this." stand at attention. RESTRUCTURED Much like Clark Kent, Beyond being a prolific N.V., Sony Corporation, I The Intemet Technology Johnny may seem to be collector, he also is a corre­ Mitsubishi Chernical Cor­ Group (lTG) is no longer your average (GI) Joe until spondent for an action­ poration. Ricoh Com­ a separate organization, you find out about his gar­ figure collectors' magazine, pany Ltd. and Yamaha although Ira Goldstein, gantuan collection of more spending several weekends Corporation. formerly ITG G.M., will than 500 action figures, a year at conventions, auc­ remain HP's Intemet 18,OOO-plus comic books tions, trade shows and VERTEL Technology Officer. and various other action- toy stores. ALLIANCE I lTG's Intemet Security HP and Vertel of Wood­ Division is now the Secu­ land IJills, California, Shop 'til you drop Spanning nine countries, rity pmgam under the will combine expeltise to Gift buying just got a little e-Christmas-an industry­ Software and St'IV:iet'S streamline the df'livery easier this year. In its first wide initiative-joins HP Group. The Imaging Solu­ of telecom-management real showcase with secure­ with a host of other key tions Division is now tht' solutions. Undf'r the technology pioneer and players, to demonstrate the Imaging program, tmder viability of electronic com­ strategic alliance agree­ partner VeriFone, HP is Joe Beyers, G.M., COIlt­ ment, which covers 10 participating in a European merce across the Internet. putN Organization Slraw­ project intended to kick­ Visit the onc-stop-Intcmct­ Yl:'ars, the companies gic Programs. start shopping online. shop at http://w-ww. e-Christmas.com.

30 MEASURE Test and Measurement Orga­ nization Recruiting Manager Voshi Imabayashi {far rightl and Ned Barnholt, executive V.P. (second from rightl. get valuable feedback from Japanese students, who were graciously housed by TMO hosts during their sum­ mer int8rnship.

Cultivating SEEDS Also, the HP brand is not as TOKYO, Japan-Long welllrnown in Japan." POWER before the cherry blossoms But this year, HP pushed IPRODUCTS appear and the school tenn even harder. It created the n L t The New Jersey Division begins in April, HP Japan Asian Sununer Internship Fortu.ne magazine's elite has changed its name to sets out to aggressively Program (ASIP), a 6-week club of the world's most­ the Power Products Divi­ recruit the best and the pilot SEED program. admired companies. This sion (PPD) to better con­ brightest from top Japan­ Eight students-seven year, Fortune expanded vey its charter. ese universities. from Japan and one Japan­ its traditional listing to Often it's more of a chal­ ese studying in the United include companies out­ I NEW HATS lenge than it appears, says States-became acquainted side the United States. • Irene Pecenco has Yoshi Imabayashi, recruit­ with HP, and California sun­ A total of 175 companies been named G.M. of the ing manager in the Test shine, when they worked at were honored; only 17 Home Imaging Division. and Measurement Organi­ TMO's Santa Clara, Califor­ received better scores • Tom Saponas zation's (TMO) Japan nia, site. thanHP. has moved to the Lake Field Operation. "I feel HP has a good Stevens Division, replac­ "We have difficulty get­ environment to work in," VANCOUVER ing G.M. Paul Rumford, ting applicants from top says Naoki Hiratsuka, a CIRCUITS who has retired. universities when we are fIrst-year master's degree I The Consumer Products doing hiring," Yoshi says. student at Sophia Univer­ Group is looking for a CHEN LEADS "Students automatically sity in Tokyo. "It is better buyer for Vancouver CHINA HP join traditional Japanese than any other company I I Circuits Manufacturing Jerry Chen, formerly companies because they have worked at in Japan." (VCM), which makes Finance and Administra­ have a so-called system of print('d-circuit assemblies tion manager, has been lifetime employment and for HP inkjet printers. named G.M. of China the seniority system. A decision on the Hewlett-Packard (CHP), potential sale is expected succeeding Terry Cheng. by January 1998. DIGITAL HP BUYS VITAL IWORKPLACE ITECHNOLOGY During the next 18 HP has purchased Vital months, HP will intro­ Technology Pte. Ltd. of duce a variety of new Singapore. The company products, technologies develops machine-vision and customer services to inspection systems used help the company cap­ in producing printed cir­ ture a larger slice of the cuit board assemblies $200 billion plinted-page and integrated circuit market. This "Digital packaging. Workplace" strategy will Vital Technology is focus on accelerating the now a wholly owned HP shift from centralized subsidiary and will be copiers and commercial known as the Singapore printing devices to main­ Vision Operation (SVO). stream office printers.

November-December 1997 31 PARTING SHOT

liThe High One" 600-mile arc of the Alaska based in Mountain View, myself before," Cathy says. MT. MCKINLEY, Alaska­ Range at 20,320 feet (6,194 California. She began climb­ "Perhaps what it comes Fear, siclrness and excite meters). The mountain also ing only four years ago. down to is that 1wanted to ment filled Cathy Gildea, as is known as Denali, or "The After successfully scaling prove to myself that 1could she trekked her way to the High One," a name given by Mt. Whitney of the Sierra do it." peak of Mt. McKinley. the Athabascan native peo­ Nevada mountain range, Cathy took this photo As the highest mountain ple of Alaska. she set her sights on con­ of one of her climbing part­ in North America, Mt. McKin­ Cathy is a product mar­ quering Denali. ners the day before reach­ ley dwarfs the rest of the keting manager in the Hard­ "I wanted to push myself ing Denali's summit. M ware Services Division harder than 1ever pushed

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