Taking stock in HP The stock market can have an the stability of a roller coaster, so how well you communicate with crystal-ball gazers is vital. We have liftoff HP test equipment plays a key role in testing the space shuttle and an innovative mechanical arm before blastoff.
YourThrn 11 page 12 Measure readers share their views on matters of importance. That's "show" business 12 Telecom '91 may have been an eye-popping, glitzy show, but it also was an important showcase for HP's telecommunications business.
A taste ofthe future 16 HP Vectra PCs help automate fast-food favorite Taco Bell. Thrning Up the heat in New Hampshire 20 People at the Exeter Computer Manufacturing Operation show their stuff in making tough production and quality goals. Culturally speaking 23 'fraveling for a multinational company like HP can be intimidating, but understanding the ways of the world is a cultural feast. page 20 Letter from John Young 27 ExtraMeasure 29 News from around the HP world.
MEASURE
Edrtor: Art Director: Associate editors: Graphicdesigner. JoyColeman' Annette yatovilz Cornelia Bayley Thomas J. Brown Betty Gerard'
Measure is published six times a year tOf employees and associates of Hewlett·Packard Company. It is produced by COfparate Communications. Employee Communications Department. Mary Anne Easley. manager. Address COfrespondence to Measure. Hewlet1-Packard Company. 2OBR. P,O Box 10301. Palo Alto. California 94304·1181 USA, The telephone number is (415) 857-4144 Employees should report changes of address to their local personnel department,
On the cover: HP's cultural ~ Copyright 1992 byHewlett-Pacl 2 MEASURE USINESS On November 19, 1991, HP's ChiefFinancial Officer Bob Wayman, TI' asurer George Newman and1teasuryManager .J Zaelli t at Corporate offices with headphones donned. It was 8 a.m. in PaloAlto, California, and they were about to talk to 130 securities analysts from around the United States By Michael Scofield about the fourth-quarter financial results HP had publicly released two hours earlier. By the time they'd finished, the HP officials had spent 30 minutes on presentations and an intense Stock-market prices hour on questions and answers. can have all the stability The reason for the quarterly conference call with securities of a roller coaster. How analysts is simple-to help these highly influential people well you communicate Ullderstand HP's financial results. with Wall Street's crystal What are the sessions like? ball gazers can make "In a 60-minute question-and- answer pe110d any of 130 ana all the difference. lysts could ask questions about any ofHP's 12,000 products, or sensitive questions about HP's financial peliormance, and our job is to answer the questions as quickly and knowledgeably as possible," George explains. Adds Joe, "It can be an unnerving experience at times." George's earnings-day routine is the same: He always stops by HP's Corporate Communications department at 6 a.m. Pacific Coast time-30 minutes in advance ofthe 9:30 a.m. Eastern Standard Time opening of the New York Stock Exchange-to see that the quarterly earnings press release has been posted on ,January-Fehruary 1992 3 Stock HP's electronic bulletin board. President and G.M. Kenzo Sasaoka. At the same time, Investor CommWli The stock that "Having HP listed on the Tokyo cations Manager Steve Beitler ensures exchange helps our salespeople open that faxes with the same data have been (almost) never sleeps doors." sent to HP offices in Europe and Tokyo, Here are the exchanges on which HP \\'hile Hl88 saw HP's fin;t li.sting in and to Business Wire, which di<;tributes stock is listed. When the New York Tokyo: and iL<; first listing in Europe a financial information to United States Stock Exchange opens at 9:30 am., year later, the stock has traded on the and international wire services and it's 2:30 p.m. that afternoon in Lon New York Stock Exchange since 1961. publications. don, 3:30 p,m. in Pans, Frankfurt and It's New York t.hat sets the standard for That particular ~ ovember morning, Zurich, 6:30 a.m. in San Francisco and prices worldwide. Bob, George, Joe and Steve reported 11:30 p.m. in Tokyo. When New York OfHP stock outstanding, HP that, due to special charges for volun stops trading at 1p.m.,'Ibkyo won't employees own about Gpercent. tary-severance and related programs, openfor two hours-at 9 a.m. the Non-HP indi\iduals own about l~ per HP's net earnings for the fourth quarter next day. cent. Co-founders Dill Hewlett and were dOvvn 38 percentfrom the fourth Dave Packard and their foundations quarter offiscal '90. own approximately 26 percent. By the end of the day on the 19th, With 2!'i1 million shares ofstock out But firms that manage investment HP's stock price rose 12.5 ('('nl" on the standing in the Cnited Stat.es and over portfolios, such a<; stock mutual funds, New York Stock Exchange. seas-representing $12.5 billion at SSO penSlOn fun(b, hank trust departments Why hadn't it fallen instead? per share-HP IS a major stock-market and insurance companies, constitute "Because," says George, "disregarding presence. On a typical day, investors lIP's largest owners. They o,""n £SO per the special charges, our per-share earn will buy or sell about 700,000 of those cent of HP shan~s. ings for this quarter would have been an shares-5i)O,OOO through the New York Usually lumped under the term "insti increase over last year. 'h'hile analysts Stock Exchange, 50,OllO each through tu tions,~ firms that manage investment" expected slightly higher earnings in the the London, England, and Frankfurt.: fourth quarter, they recognized that our Germany, exchanges and about 10,000 operating results were pretty good com each through the Pacific Coast, Paris, pared to most high-tech companies. France, ZUliC'h, Switzerland, and Tokyo, ... senior officers should "When financial results are favorable, .Japan, exchanges. the stock price usually lises. \\-'hen the .-'\lthough the numher ofshares spend their time managing results aren't, the price usually drops. traded outside the United States is rela HP's business. "In the long run, stock value reflects tively small, being listed internationally a company's health and potential. :\lost is important for HP's business. analyst" feel that our lack of long-term Franco l\-1ariotti, senior vice president represent 8:") percent of the daily buying and director of HP's Europe/Midclle and selling ofall stocks listed on the EastAfri{'a Operations: says, "Listings in New York Stock Exchange. Europe give us stronger local presence, Although some company CEOs rou HHP is one ofthe healthiest, That means more i.nvestors, more press tinely communicate directly with secu big high-tech companies coverage, and greater attention and rities analysts, HP's philosophy is that commitment to the economies ofthese senior officers should spcnd their time around." key European cotmtries. managing HP's husiness. George and "There is no doubt that sinc(' our list Jo(' are the ones who deal ex1enslvely debt, product diversification and a"tute ings in 1989 we've developed our links with analysts. R&D makes HP one of the healthiest, with fmancialmstitutions, and shown Says George, "We can't avoid some big high-tech companies around. Short higher-than-average sales growth for p!ice ups and dO'-"l1S; ifyou've had a term, it's a different story. Market con computer systems in the financial and disappointing quart.er it 'will negatively ditions, emotions and a host of other banking markets " in1paet your stock price. Tbe company factors can influence the market." Adds Yokogawa-He\ovlett-Packard has always lwen conservative when 4 ME.AS(IRE - Investors buy 700.000 shores of HP stock each day on the London, Frankfurt, Paris, Tokyo and New York (above) exchanges. talking with the finandal community. More impOltantly, most of the 50 or • (Aggressive huy) "We hdiev(' HP is The strongest tooLe; .Joe and I have in so analysts who look at HP "under a the healthiest large cap stock under our building confidence among analysts microscope," a" George puts it, are posi coverage." - John.Jones, .\tlontgomery are to get the same information out tive about HP. For example, following Securities fast, treat everyone ofthem the same the Den'mber 1991 securities analysts \\-'hy-using the same financial and be responsive to their requests." meeting in Palo .l\.Ito, analysts issued data-did analyst.'; differ so ....,ridely The quarterly conference call" are these recommendations to their client.,: in their recommendations'? only one way HP communicates directly • (Buy) "HP's meeting further con "Like most of us, analyst5 see the with analysts. The company hosts more vinced us that the company is the class same facts in diJferent ways," George than 200 analyst.'; at a 21;~-hour breakfa"t of the computer industry and the stock explains. "They're paid to predict future meeting in New York in May, and holds a should be a long-term winner."-Steve earnings accurately. \Ve don't give any similar non-breakfa..<;t session for FiO Milunovich, Solomon Brothers specIfic guidance, but we'll tell them if analysts at Corporate Offices in Palo • (Upgrade from "hold" [('commendation their assumptions are way out ofline, Alto in December. After presentations. to "buy") "The strong product portfolio ba5ed on our targets. HP President and CEO John Young and should h('lp HP weather the current "GeneraUy, if we fall shOlt of our own other officers answer Questions, economic storm relatively well a..,; com target5, we'U faU short ofthe analysts' Individual analysts are welcome pared with the other major hard\:vare expectations." to phone or visit with George or Joe vendors."-Timothy \kCollum, Dean Today's professional crystal-ball gaz throughout the year. And they need only Witter Equity Research ers look at aU mformation at hand and a computer and modem to retrieve the • (Will perform similar to the market) predict a company's performance by published information that Corporate "Hewlett-Packard's revenue grov.-ih and two ratios: Earnings per share (EPS) Communications releases on the earnings are increasingly sourced from represents net income divided by the HP 3000 electronic bulletin board. higher risk segments that ultimately number ofshares ofstock out."tanding. As a result ofall this attention, three should increase earnings volatility and The price/earnings (PiE) ratio gives the years ago the Financial Analysts Federa depress the company's multiple (ratio of price of one share of stock divided by tion awarded HP first place for excel stock price to earnings per share)." net earnings per share. lence in corporate reporting. Barry Willman. Bernst.ein Research Th(~ higher the ratios, the more faith .Janmrry-February HlH:2 5 Stock How we stock up in the market $60 investors haw' ill a company's porential for earnings growth, This oft('n nwan'i that more people will want to buy than sdl a swck. Employees may not realize that they can help boost tlwse ratios. Says (~eorge, ''There's nothing magical aboU[ it." Adds Joc, "It's simple: No.1, control expenses, No.2, W)t good product,'; out fa,;t. The bottom line is thal we rwed to grmv earnings." Gl?org(" a :~4-year IIP veteran who became trea.'iurer in 19~1. ha.,; SCCTl had time's ('orne and go. ()m'e again. he deliv ers what he likes (0 call his bnsi))cs,.... Nov 1 Feb 1 May 1 Aug 1 Oct 31 cycle S0l'mOTl: 1990 1991 ''The bi~est il\llLlE'llcC on shOlt-term HP _ Standard 8< Poor'$ 400 _ Technology Index earnings-one' to two years-is the economy, ('ompanies have !noney to Like the markel, HP's stock price had its ups and downs during fiscal 1991, bul fared well spend or lh('y don't. When they have compared 10 the S&P 400 (a selection of leading companies) and a technology index of eight companies, including IBM, Digital Equipment Corporation and Sun Microsystems. money, they buy HP products bt)c,U1se oftheir quality. "1\:ew products such as rhe IIi> 8:) LX palmtop compu(('r ,md the lIP Apollo 9000 Scries 700 workstations lwlp us What can you say...and when? stay alive during recessions. When the HP Trea.<;ur('r Georgp Newman and • Press relea<;es and brochures: economy recovers, earnings call go 'freasury Manager.Joe Zaelir are • Printed company histories. tlmmgh lhe roof. experts at prOViding rapid, complete For legal or competitIve rpasons, "We came roaring out of reccssions ill financial information to the entire here is information ?lol to sharp: the' W70s and '80s, and I'd like [0 think marketpla.l.:e at the same time. That's • Prqjections about future product'l, we'll come roaring out of this one," • theirjob, financial results, or unit volumes; Employees, however, have a • Pen 6 \1EASlIHF: HP test equipment plays a vital role in testing the space shuttle before flight and a mechanical arm that can deploy and retrieve satellites. HP test equipment performs a battery of hardware tests before the space shuttle Discovery blasts off from the John F. Kennedy Space Center in Florida. After four days in space, Discovery shuttle swooped over the eastend of sounded its approach to Runway 17, an Rogers Dry Lake. Every heart quickened ancient lake bed in the high desert of as the Discovery fell silently to Earth California. and rolled to a stop-three seconds Gtiding out of the west in a powerless after NASA scheduled it to land. descent, STS-26 marked the final leg of Standing beneath tlle shuttle, Richard its 1.68-million-milejourney with a dou 1hJly, associate administrator for space ble sonic boom that rippled through the flight, noted that the nose wheels ofthe stratosphere and the enormous knot of Discovery rested squarely on tl1e run spectators gathered on the desert floor. way center line. "I don't think you can Every head turned skyward as the get much better than tl1at," the former .January-February 1992 7 Liftoff astronaut said. kilogram) spacecraft into a 16,500-mile "We have to investigate every failure "It's a great ending to a new begin per-hour (26,50D-kilometer-per-hour) as though it were a controller failure," ning," Steve Hammond radioed to shut orbitsome 200 miles (320 kilometers) says Robert Donehoo, project engineer tle astronauts from Mission Control. above Cape Kennedy. for the Space b'ystems Group. "If an NASA has inspired sweeping changes Engineers at Honeywell's Space operator or the test equipment fails, to shuttle design since Sharon Cluista Systems Group factory in Clearwater, we investigate it until we determine McAuliffe flew aboard the Challenger Florida, simulate prelaunch checkout, the cause. onJanuary 28,1986. Morton Thiokol firing sequence, main-stage operation "In a man-rated space program," made the most obvious changes to the and shutdown sequence for the shuttle's Robert continues, "each test failure flawed solid-rocket booster whose leak three main engines, using a Honeywell costs us an average ofeight man- 8 MEASURE HP sales rep Brendo Harp and Marco Legoas, Honeywell systems engineer, discuss HP's role in simulated prelaunch shuttle testing. advanced robotic research. Ks another with their own test equipment. Each for $100 million (Canadian) in 1978. In part ofthe space program in which HP station is made up ofa rack ofinstru the coming months, engineers there plays a role. mente; and a controller. The instrument expect to build many more. Spar Aerospace (Mississauga, rd.ck contains an HP 16500A logic anal In October 1991, NASA broke ground Ontario) developed Canadarm as part yzer, an HP 3235 switch controller and for the largest construction project at ofthe Canadian SpaceAgency's contri three power supplies. The controller Kennedy Space Center since the Apollo bution to the shuttle program. Payload rack includes an HP 1000 series A400 moon program. The three-story, hangar specialists use the arm to push a satel computel', an HP :)478A multimeter, an like building will contain 63,000 feet lite away from the cargo bay and place HP 3314A functIon generator and an (5,850 square meters) offloor space for it in orbit. They can use it to recover HP 486 Vectra personal computer with a assembling and testing parts ofthe a failing satellite as ....'ell. l4-inch color display. space station. Canadarm is a three-jointed mechani All the board tests at the development Scheduled for completion in early cal arm that can deploy or retrieve pay lab are automated. An operator loads 1994, the project will employ some 1,000 loads as large as four, IS-wheel trucks, the program, connects the computer NASA and contract employees at the or service a satellite the size ofa sub and some part ofthe arm, and runs the factory. compact automobile. test. Ifthe computer detects a fault Spar Aerospace-along with Honey Spar Aerospace tests Canadarm at before the end ofthe test, an error well, Boeing, McDonnell Douglas and its development center in Montreal, message appears on the screen. GE-will build key elements ofthe Quebec, and its integration facility in Montreal added its 0 ....11 high-speed Freedom Space Station. Mississauga, Ontario. At both locations, boards to the test system. These boards For its part, Spar is creating a roving engineers must move all or part ofthe create electronic signatures for parts space robot called the Mobile Servicing arm as ifit were attached to the space ofthe arm they do not have but need System (Rover). The shuttle will trans shuttle. In :vIontreal, engineers test the to include in their tests to emulate the port Rover to a platform about 310 miles IC boards that control eachjoint. In application accurately. (500 kilometers) above the Earth where Mississauga, they test the arm itself. Mississauga has produced five it will assemble and maintain the space Both locations operate Hewlett robotic arms since it built the fITst one station. Rover will move equipment and Packard test stations in combination January-February 1992 9 iftoff supplies around the platform; release and capture satellites; support astro nauts servicing instnunents attached to the outside ofthe space station; and tether the space shuttle to Freedom while it loads and unloads the shuttle cargo bay. The mainstay of the Mobile Servicing System is a mechanical arm about the size of Canadarm but three times as strong. It will help dock an incoming shuttle. And it will free itself from a movable base, and crawl hand-aver-hand across space-station trusses to service hard-to-reach equipment. Another robot called the Special Purpose Dextrous Manipulator (Dexter) ~ will handle delicate work such a.."i main !I ftII!_ taining electrical circuits and fuel lines. The HP-tested Conodarm, developed by Canada's Spor Aerospace, can deploy or Dexter will have two arms that are two retrieve satellites as large as four 18-wheel trucks in space. meters long. It can work alone or as a companion to the big arm by connecting with it end-to-end. tion with Earth via the antenna and the breaking the sOImd barrier in the X-I, an NASA has scheduled shuttle flights to NASA satellite that Discovery lofted experimental aircraft. Man and machine assemble the Freedom Space Station to into space on October 2, 1988. continued their climb toward the heavens The :\10bile Servicing System, the when Discovery, a ship with wings-not Special Purpose Dextrous Manipulator a space capsule-crossed the sound and the Space-ta-Ground Communica barrier over Edwards Air Force Base 41 tion 'Tracking Antenna will rely on years later. 'With this program, HP automatic test equipment during With the help of a newly designed Canada has become the research and development. The equip main engine and robots such as Cana ment will look and operate much like darm, astronauts and engineers aboard leader in space robotics. 11 the test system Spar engineers created this space-faring cargo ship will build a for Canadarm. gateway to the universe-but not with begin mid-1996. The space agency esti "From the beginning. electrical test out the quality and reliability that an mates that construction will require 20 has been a key ingredient to the flawless automatic test system ensures. _ flights and three years to complete. performance ofCanadarm in space," In addition to the Mobile Servicing says Garry Lindberg, vice president of (lorn [Jlrich writesfor the Integrated System and the Special Purpose Dex research and applications for the Cana Systems Dipisil)n in Sunnyvale, trous Manipulator, Spar will place its dian Space Agency. ''With this program, CaUforn ia. -Editor) Space-to-Ground Communication Canada has become the leader in space 'Tracking Antenna on the platform. The robotics. And we intend to maintain that space station will maintain communica reputation for excellence in the years to come." Chuck Yeager started the United States' ascent tow(ll'd outer space near Rogers Dry Lake on October 14, 1947, by 10 MEASURE Environmental update ual problems, "the manager" that does Tt> lvIeasu te readers: In the .July-August a good job of... 1991 issue we reported that HP had a) knowing the type of personnel reduced its use ofchlorofluorocarbons their positions require; (CFCs) by more than 46 percent in t.he b) hiring capahle people for those past 18 months. positions; The Corporate Environmental Health c) orienting and training their new and Safety depmtment has announced employees; that, as ofthe end ofthe thIrd qumtcr d) providing an enviromnent where of fiscal 1991, HP has reduced eFe use the individual can achieve group and by 67 percent. personal goalo.; (empowerment = HP ha<; a compallYv"ide goal to el.i.m.i responsibility and authority). nate all uses of CFCs in manufacturing ... does not have many employees by the end of 1994.-Edit.or that would fall into that "action needed" category. Finally, the issue ofheing "very good," Not a panacea etc. versus (a rating of) 1,2, 3 or 4 still The (Septemher-October 1991) article enels with fair and equitahle assessment announcing HP's ne,,': performance ofemployees and therr performance. grading system was informative and a This is not an ea.o.;y task. Don't try to Flogs were Ilying and excitement was high good explanation of how our company make us believe that a numeric system, at the Reichstag in Berlin on Reunification Day in October 1990. continues to change. alone, is a panacea. Th(' article does It is surprising, however, to see that not argue that it is. My hope is that the some managers' attitudes toward "man impkmenters don't try to position this An error in the air agement" has not changed. Ian !toss strdkgy change in that manner. The article "The two Germanys unite" mentioned that the "action needed" cat JERRY KRYGIER describes very well the current situation egory means managers "have to play the Greeley, Colorado here. However, it hegins unfortunately full management role ." I have two reac "vith a mistake: the text below the pic tions to that comment: ture ofthe Reichstag (parliament) in 1) Don't managers who have an effec Berlin is incorrect. tive organization "play the full manage The caption reads, "Replacing the flag ment role",? None ofmy eolleagues fall Please send mail ofthe former East Germany, the flag of a into the "action needed" category, but Do you have comments about some wuted Germany flies atop the Reichstag our manager plays the full management thing you've read in l'1tleasure? Send (parliament) in Berlin.. ." role-and we love it! us your thoughts. Ifwe publish your There was never a flag ofthe former 2) In my pa.o.;t positions ao.; a produc letter, you'll receive a free kleasure East Germany atop the Reichstag, tion section manager and personnel T-shirt (one size fits all). because this building is located in (what liaison, there seems to be one strong Address HP Desk letters to.Jay was) West Berlin. You can see it from correlation between "action needed" Coleman; by company mail to Jay East Berlin, hecause the Berlin \Vall personnel and the management under Coleman, Building 20/BR, Palo Alto. once ran just next to it. which they report. But for real individ Viaregular postal service the address RADEK UNHART is MeasU1'e, P.O. Box 10301, Palo Alto, B6blingen, Germany CA 94304-1181 USA. Please lirnityour letterto about 150 words, sign your name and give yoW' location. We reserve the right to edit letters. .January-February H~2 11 Telecom '91 may have been an eye-popping, glitzy show, but it also was an important show case for HP's telecom munications business. Hewlett-Packard's three-story pavilion at Telecom '91 in Geneva, Switzerland, provided ample room for demonstrations, meetings and high-level discussions with customers. That's "show" business By M. Daniel Rosen GENEVA, Switzerland-The sky is technology industry in the world. azure this October afternoon. The Alps The air is a clattering of hammers are clearly visible in the distance. Inside and power saws. Workers on forklifts Geneva's massive Palexpo convention careen through the corridors. At a table center, a skyline ofphantasmagoric in the VIP visitors' lounge ofthe Hewlett pavilions looms six stories high. An Packard pavilion, Franco Mariotti and array ofstands and exhibits spreads Adrian Tamone talk about last-minute for nearly a million square feet. details. Franco is senior vice president It is the day before the opening of and director ofHP's EuropelMiddle the Sixth World Thlecommunications East/Africa Operations. Adrian is HP's Exhibition-Telecom '91, as it's called project director for Telecom '91. the nine-day, billion-dollar, quadrennial Why is HP here at this show? celebration ofthe fastest-growing "We're one ofthe telecom industry's 12 MEASURE most important suppliers ofcomputer ests, Emile notes. "We show them a systems and test-and-measurement multimedia production, guide.them equipment," Franco says. "Last year, 25 around our displays and do our best to HP divisions sold about $500 million make them welcome_~ worth ofequipment and services to the It's calm inside the convention center world's telecom suppliers. the first morning ofthe show. All that "This is the biggest telecommunica can be readied has been readied. All that tions-industry event in the world. Being can be done has been done. The report here is a key to our future in global ers are offto a press conference. The telecom." visitors are yet to come. At 2 p.m., United Demand for more sophisticated, end Nations Secretary General Javier Perez to-end telecommunications services Filippo Pandolfi (center), vice president of de Cuellar presides at the opening for more quality, more value in those the European Commission, spent two hours ceremony, and Telecom '91 begins. services-is growing and growing rap in the HP pavilion, including talks with HP's The HP pavilion instantly leaps alive. Franco Mariotti and John Young. idly. Modem telecommunications net The ground-level area is so crowded that works are spreading around the world. an HP sales person from Norway holds According to the U.S. Department of industry's premier suppliers are here. an impromptu meeting on the passage Cormnerce, the worldwide value of Our major customers are here. Our corridor in front. Karl Meulema and those networks was about $390 billion major competitors are here. It's impor in 1987, and was expected to reach more tant that we show our strengths here." The Hewlett-Packard pavilion is as large as a London town house. Itis three levels high, covers 4,500 square feet and "Telecommunications is glitters ,.,rith mirrored wall.,. There are the new technological ItBeing here is a key to our 60 HP people to staff it-sales and mar fronfier." future in global telecom." keting reps, applications and product specialists, technicians, uniformed hostesses and support personnel. 'Ibn Geelen, sales people from HP than $600 billion by the end of 1991. As Emile van Reepinghen ofHP Belgium Netherlands, greet walk-in visitors. on'e observer put it, "Telecommunica is the pavilion manager; he's responsible "We never ask an open question, such tions is the new infrastructure of the for day-to-day operations. Emile tells the as 'Can I help you?'," Karl says. "That global marketplace." hostesses at the ground-floor registra calls for a 'yes' or 'no.' We always ask 'fraffic on those networks is growing. tion desk that more than 300,000 people 'Is there something you're interested in In 1983, for example, AT&T handled will visit the show. About 10,000 of them particularly?'-something that will start about 2.5 billion minutes of interna will come to the HP pa\·ilion. a conversation." tional transmissions. By the end of 1987, Marius Cojanu, strategic marketing The live demonstrations on the sec that amount had nearly doubled. And manager ofHP's European Network ond floor are geared to those serious according to the most reliable projec Marketing Center, adds that in addition prospects. They operate without inter tions, the total will soar to 8.5 billion to the hundreds ofthousands ofprofes ruption throughout the length of the minutes this year-an increase of340 sional attendees, many of the visitors seven-day show. percent in less than a decade's time. are members of the public. "Parents Each serious visitor is looking for Adrian sweeps his hand toward take their children. Schoolteachers something different. Telephone company the floor-to-ceiling windows. "Take a bring their classes. Telecommunications people want to see the HP test-and-mea look around at the other pavilions and is the new technological frontier," he surement equipment they can incorpo stands," he says. "All the world's impor says. ''This show is a glimpse into the rate into their networks. Systems tant phone companies are here. All the future. People are fascinated by it:' The ground-level floor in HP's pavilion is geared to the average person's inter January·February 1992 13 "Show" integrators want to know how HP's mea their network as much as they do on surement and computational products their telephones. When one part fails, a and applications can be customized for crisis can develop in minutes. Operators their clients. And executives from large and engineers need adequate tools to corporations need to find out how HP identify, diagnose and fix problems. can help them get better access to More important, they need tools to help information. lIP offers more than 90 instruments and systems specifically suited to installing and maintaining telecom Aldo MoritaJ co-founder munications networks, plus 400 test HP executives conducted more thon 650 equipment products. The company's meetings with customers in the VIP lounge andchairman ofSony, has telecommunications strategy is during Telecom '91. come for a visit. clear-cut: lIP's combined expertise in measurement and computation exceeds nearly all vendors. HP can: predict and remedy problems before • Provide advanced tools to design, they develop. install and test telecommunications Suddenly, there's a commotion on the networks. demo floor. A white-haired Japanese • Furnish the computing power neces businessman is passing from station to sary to add services that customers station. He watches and listens with want obvious interest. Frequently, he stops • Integrate measurement and computa to ask questions. It is Akio Morita, tion to help build network-management Maggie Boerner, who organized the VIP co-founder and chairman ofSony, who solutions. program, checks the doily meeting has come from his ovm pavilion for an At a station near the circular stair schedule with hostess Denise Weber. unexpected visit. case, Robin Sharp from the Queensferry The next morning, a throng appears at the ground-level entrance to the pavil ing center in Amstelveen, Netherlands, ion. Franz Geiger, general manager for demonstrates the HP 4980A network HP Austria, says that he expects about advisor - a protocol analyzer for 30 specially invited guests. "Ifthe group When one portfailsJ a crisis local-area networks (LANs) used by is small, they meet on our third-level, can develop in minutes. private network managers. VIP floor," Franz explains. "Ifthe meet A crowd gathers around the live ing is too big, they meet over at HP's 3-loop-model demo, a prototype net European headquarters-five minutes (Scotland) Telecom Division demon work-management system HP devel away from the exhibition." strates the HP 75000 Series 90 modular oped for the University ofGeneva in Andre Meyer, general manager for SONETlSDH analyzer-a test system close cooperation with HP Labs in HP's Grenoble (France) Networks for R&D, manufacturing and conform Bristol, England. It's an example of Division, is with a group at a table near ance testing. Notfar away, Marc Powell open-systems management in action the windows. Lew Platt, executive vice from the Test and Measurement market- across a large, multivendor, multi-LAN configuration. More than 2,000 computer users at the University ofGeneva depend on 14 MEASURE president, and Franz Nawratil, HP vice president and worldwide sales and marketing manager for the Computer Systems Organization, are sipping coffee nearby, waiting for their next appointments. The door to a meeting room opens and HP President and CEO John Young steps out for a break. "John Young is not here to sightsee," says Adrian lamone. "He's as much a working sales person as anyone else on our team. He has an important press conference scheduled, he's speaking at a m&jor discussion forum and he's booked solid for top level meetings during his stay in Geneva. "'ltaditionally, in the test-and-mea surement market," Adrian continues, "we've felt comfortable talking to the people 'atthe bench'-the technical people, the engineers, the middle man agers. But the telecommunications The week-long Telecom '91 is the biggest telecommunications-Industry event in the world, drawing major telephone and communications companies, suppliers and customers, industry is different. We have to rein force our contacts with top decision set policies and standards for telecom all sales are the result ofa long process munications spending. ofdialogue. Ourjob was to move the "Romania has an awful lot ofcatching process forward or to get it started in "They need a lot ofadvice, up to do. The commissioners want to the first place. We were here to meet improve the current level ofservice but new people and to reinforce our story and they look to people they also need to build for the future. with the people we know. like us for counsel." The issues are very complex. They need "I think we did a pretty good job." • a lot ofadvice, and they look to people like us for counsel." (This is thefirst Measure article by makers. People like John are here to How does HP measrne results from M. DanielRosen, a New York, New help us." its presence atTelecom '91 ? York-based free-lance writer. -Editor) Marius Cojanu walks over. Marius "By the people who came to visit was born in Romania. He taught com us and why they carne to visit," Marius puter science at the technical institute says. "We also measure success by how in Bucharest before he emigrated to the wen we delivered our messages: Do we west. "I justmet with the heads ofthe see a positive shift in customer prefer Romanian government's information ence for HP? Do people see that we can teclmology commission," he says. "They help them manage their networks? And how far did we go toward sales? "Some ofthe measurements take time to evaluate. At the end ofthe day, January-February 1992 15 Ataste of the future IRVINE, California-Helicopters at the More than 2,000 HP Vectra PCs in Thstin Marine Corps Air Station pierce Thco Bell-owned restaurants automate the crisp, chilly air and head skyward back- ffice functions such as employee on maneuvers on this late November scheduling, inventory control, manage morning in Southern California. ment reporting, payroll and electronic Fifty yards away across heavily mail communication. traveled Barranca Parkway-about Managers, for example, can deter a mile from corporate headquarters mine how many tortillas are in stock one ofthe busiestofThea Bell's 3,200 and how many they need to order. Thea restaurants is open for business. Bell's marketing department can moni And like their high-flying military tor sales by individual restaurant to see neighbors, business atThea Bell is what items customers in various parts taking off. . ofthe countIy buy most. In one of the world's most fiercely Thea Bell is testing the system with competitive industries, Thea Bell is one ofits franchises and hopes to make teaching its competitors a few lessons it available in the future. in innovation. "The HP equipment and service has Inthe late 1980s, Thea Bell Corpora exceeded all ofour expectations," says tion, a subsidiary of PepsiCo, Inc., con Merlin Piltz, Thea Bell's vice president ducted an extensive survey and found for restaurant data automation. "It has that customers wanted more food at given us a tremendous ability to control lower prices. Controlling costs and costs, provide accurate and timely data increasing perceived customervalue for management and save our managers led to an unavoidable conclusion: the about 15 hours per week in administra need to automate more processes, tive time. The first step in automating Thea "That means the managers have more Bell's restaurants was to test several time to spend with employees and personal computers-hardware that customers," could withstand the successful chain's It also means that Thea Bell can offer demanding environment ofhigh temper an extensive menu ofbunitos, tacos, atures, high humidity and airborne dust. MexiMelts and other south-of-the The solution was a network ofHP border items for less than $1 each. above Vectrapersonal computers (PCs), Offering more value to customers A network of Hewlett-Packard software and printers. has meant higher sales, too. In 1990, for personal computers, software and printers has helped Taco Thday, with more than 18 months' example, sales grew by 18 percent to Bell Corporation offer more experience, the relationship is paying $2.4 billion, with operating profit rising value to customers and reap significant dividends. 37 percentto $150 million. higher sales. including a 37 percent rise In operating profit "It's a great system," says Frank Com So, with help from HP, Thea Bell is in 1990. pani, manager of the Barranca Parkway giving its customers a taste for the Thea Bell. 'INoW in 15 minutes I can future. And they're eating it up.• complete paperwork that used to take ~ayColeman two hours." 16 MEASURE HP Vectra PCs give more than 2,000 Taco Bell restaurant managers up-to-date inventory information, which speeds orders and deliveries. Fresh ingredients, low prices and fast service are the keys to Taco Bell's dramatic growth in the post few yeats. January-February 1992 17 Taco Bell right Frank Compani (standing), who manages one of the highest-grossing Taco Bells, says the HPequipment has reduced paperwork from two hours to 15 minutes per day. below Irvine, California-based Taco Bell, a subsidiary of PepsiCo, Inc" has more than 3,200 company- and independently owned restaurants in the United Stotes. right Mr, Taco makes a special appearance during on early morning Los Angeles, California. radio promotion, which also featured two Laker Girls from the Los Angeles Lakers basketball team, 18 MEASURE obovs' Merlin Piltz, Taco Bell's V.P.1or restaurant data automation, looks over the HP equipment installation schedule with HP sales rep Katie Trippet. left HP gear has proven it can withstand Taco 8ell's demanding environment of high temperatures, high humidity and airborne dust. aboV When customers make a "run for the border," Taco Bell is waiting with an extensive menu of Mexican·food items for less than $' each. .January-Fehmary 1992 19 A\lv··..· CONS~_Ll~AT'ON + Ex-Coloradans Dan and sally Blount take a break in the ECMO cafeteria. Behind them is the "wall of fame" with 1991 milestones. the heat ire~ ~"'{E'"rER, _. w lfampshire-When Dan The HP old-timers also could help the and Sally Blount transferred from an HP plant become quickly integrated into HP. • ll ' in ColOl'ad to tile ,,~, 'r Computer They 1m ""\V lli!l jargon. ol'}.(an iz 1ion lInd The small Exeter M\u acturlng t pcrHtion (' ,'CMO) in ways f d lin hl.l~l • ~,aJ 1 'uulLl n t- Computer Manufac • \' Ham ~b.ir if I 1, Hn,it f. It at first work 'Villi ,~rj{t~ : IIIn J 1.1 Ie PllJ1~', turing Operation is an like going to a different company. The deliberate cross-pollination The 50o-person plant, located in a worked well. "execution phenome scenic wooded areain New Hampshire, "The HP people provided us with non" when it comes to was still making the transition to becom insights into the company that it would getting the job done. ing part ofa laJ'ge global company. It have taken us years to get otherwise," had been a production facility ofApollo says Operations Manager John Kenny. By Betty Gerard Computer, which Hewlett-Packard The transition also was made easier acquired in 1989. by the positive attitude of folks at the The Blounts and two dozen other Exeter operation. "Fairly early on, HP people-from Colorado, California, ECMO decided, 'We're now HP,' and Idaho, Massachusetts and Germany wanted to show the rest of the company had responded to a call in 1990 to join what it could do," Kenny says. ECMO. The operation's charter had Six people also came from Scotland, changed, and people with new skills where a former Apollo plant in Living were needed in such areas as logistics, ston was closed after the acquisition, materials and engineering. bringing their usefullmowledge ofthe European scene. 20 MEASURE In a charter switch, ECMO had taken CCMO, were surprised how quickly over workstation final assembly, test, such tedmiques as storyboards for integration and distribution for the problem-solving spread quickly Americas and the Far East. In turn, its throughout the plant. fonner printed-circuit-board production ECMO came through its first QMS moved to the Colorado Computer Man review with flying colors, bettering the ufacturing Operation (CCMO), another HP-wide average in all but one category. ofthe seven entities which make up The passion with which ECMO takes Computer Manufacturing (CM). The on a challenge has impressed the Blounts moved from Fort Collins to newcomers. Exeter along with the new charter. Dan Sally Blount has found the Exeter manages product engineering for ECMO group "an execution phenomenon." She and Sally is in planning. says folks aren't fazed ifthey have to ECMO targeted quality a" an arena in crank out three months' production in which to show its stuff. In June 1990, the the last two weeks ofthe quarter-a Quality Council-the operations man sharp upturn known locally as "the ager and staff-set tough new goals of hockey stick." They proved it in October attaining ISO 9002 certification (an 1991 when long-delayed chips became internationally accepted quality stan Geraldine and John Inglis, who moved to available and a large backlog of work dard) and making a high score on HP's Exeter, New Hampshire, trom Scotland, station orders was filled smoothly. own Quality Maturity System (QMS) stroll near a restored 1770$ textile mill. "It makes us proud to be part of this rating during the coming year. organization," Sally says. The new ECMO recruits found an site quality and process-engineermg Ex-Coloradan Marianne Stevens, an energetic environment that carried over manager. "lfyou don't have the basics order-processing manager, echoes the sentiment. "I've found fantastic team from the old Apollo days, when urgency in place, you can't do it in a year." was part of sUf\olval. As part of a small Just about everyone on site was work here," she says, "along with a real company with a less elaborate planning already involved in continuous process spark and excitement." The local atti improvement. Workmanship problems tude is, "We're going to be the best at go to "ceO" teams ofpeople on each pro what we do." duction line. Other quality teams and Adds Andreas Schwedhelm, an engi processes already had been established. neering manager who transferred from "I've found fantastic TLA. for example, is a much-admired teamwork here... a real distribution and logistics-management system that provides instantaneous, spark and excitement." on-line reporting. feMO targeted quality as Th build on this foundation, the Qual ity Council created teams to further an arena in which to show and decision-making process, Exeter improve four key processes. Marcy its stuff. folks were self-reliant and made deci Alstott heads new product introduction; sions qUickly. Dan Blount, quality improvement; Tom Characteristically, ECMO set itself a Welch, front-end (forecast to procure the Bbblingen (Germany) Manufactur demanding goal in going after ISO 9002 ment); Jerry Joyce, back~nd (order ing Operation in 1990, "I stopped saying, certification. (The ISO 9000 standard management, production, distribution). This is good and this is bad,' comparing has four categories. ISO 9002 is for With the focus on quality improve the two operations. They're great here facilities with manufacturing and dis ment already in place, there was a at turning up the heat and getting tribution.) The one-year timetable was smooth transition to HP's Thtal Quality things done." possible only because ECMO already Control (TQC) practices. Both Dan Marcy Alstott, a transfer from the had effective procedures, says Jim Kelly, Blount and.Jerry Joyce, also from Networked Computer Manufacturing .lanuary-February 1992 21 Exeter Operation in California, is fully aware that new-product introductions are now far more complex for ECMO as it deal" with multiple manufacturing sites, multiple labs and marketing located all over the world, Communicating well is a must. Sometimes people are saying the same things in different ways, she has found. "It's a matter ofstyle: West Coast niceness vs. the more direct, get-to-the point East Coast manner." Jim Kelly brought in John Inglis who had led Apollo's Livingston, Scot land, plant to a successful first-pass ISO 9002 certification-toserve as program manager for ECMO's certification thrust. By 1993, ISO 90()() registration will be required to sell into the lucrative During ECMO's ISO 9002 assessment, Peter Corbett of the 851 team talked with many European market. employees, including test operator Pat Reardon. Debi Murphy (right) was on observer. what the BSI audit team might ask dur fication after a three-day visit in which ing interviews. The audit team would they criss-crossed all areas ofthe plant ''You've really met the split up, with each member tracking talking with employees. Champion inter challenge ofcoming into work flow through the plant. People view subject was Ken Schaaff, ware the company..." in each area would be asked to prove house and receiving dock supervisor, they knew and understood the correct who wa.';; visited five times on audit procedures for doing theirjob. trails. In production, for instance, the open ECMO is now the only HP entity in Leaving Scotland meant thatJohn's ing questions might be, "How do you the Americas and the Far East with the wife, Geraldine, an operating-room know what to build'? Hm\l are configura right to fly the coveted ISO 9000 Regis nurse for 12 years, couldn't work as a tion sheets determined'? How is factory tered Firm flag. nurse in New Hampshire until passing training handled and do records exist? Ata November 0,1991, award cere state board exams for certification. In What happens when tests indicate a mony, all employees crowded into the the meantime. she volunteered in OR product failure?" cafeteria to receive congratulations at the local hospital two days a week. Backing up John's efforts were Debi from Executive Vice President Lew John knew firsthand '\That British Murphy, Jim Mm'anto and Paul Renfrew, Platt. ECMO is "definitely one of the Standards Institute (BSI) auditors who took lead-assessor training. They high spots in HP," he told them. would be looking for. BSI is the leading did a dry-run audit before the BSI team "You've really met the challenge of certification institution for ISO 9000, arrived to find any gaps, accompanied coming into the company... and made an with 200 auditors who travel worldwide. auditors during the actual assessment, incredible connibution." In preparation,John first made sure and will train other ECMO people in the ECMO had its own updated quality man self-audit technique. (Receiving ISO ual, supported by written procedures in 9000 certification brings with it all areas. repeated audits every six months.) For eight months he met with The sitewide cormnitment paid off employees in small groups to point out when BSI auditors granted ECMO certi 22 MEA....,URE The ways of the world HP employees have been traveling exchange has a chance to sink or swim. can be intimidating internationally almost since the com In China and other parts ofAsia, for par..y opened its doors for business_ example, the surname is given first, but and mysterious, but Managers at HP Intercontinental Opera it doesn't hurt to ask. Many HP employ understanding them is tions, many of whom spend as much as ees in China have ~Westemized" their one of the most satisfy 50 percent of their time on the road, names for business purposes. jokingly call it ~Managementby It's proper to call a Thai by his given ing aspects of working F1ying Around." name (With a "Mr.") and aJapanese for a multinational The world may well be a global employee by IDS or her surname (attach com y. village, linked by telecommwucations ing the polite suffix -san within the and electronics, but cultures and values company is an appreciated touch). In run deep. An insult, even unintentional, Latin America, many people use a dou By Jean Burke Hoppe can cost more than bruised feelings. ble surname with maternal and paternal Being prepared will help you avoid that. family names, and it is the father's name In Thailand, for example, it's offensive which comes first and is appropriate to pat people, even children, on the head. to use-except in Brazil, where the In the Arab world, exposing the soles of mother's name comes first. your feet is insulting, as is asking after Employees facing their first inter someone's family_ In the United States, national business trip would be well you'll put someone offifyou stand too advised to do their homework about the close to them while talking. country in a sincere effort to be a good In a company as diverse as HP, some thing as simple as a name can land you in deep water before any business January-February 1992 23 guest, say HP's seasoned travelers, It is already in place. "HP offices around world. I think business travelers have to helps to learn a few key phrases in the the world are very accustomed to deal be really sensitive to the issues people local language, and to know some ofthe ing with international visitors and are have outside of the United States. You politics and history of the country, how always so gracious and understanding. find that people all over the world know to dress, whether to be on time or a little I often worry ifwe're quite as gracious a lot more about the C.S. than we know bit late, and whether to bow upon greet hosting visitors to the U.S," about their countries. One ofthe most ing or shake hands, John 'U)ppel, Computer Systems sales important thing..,> i... to go with an open Sensitivity, a positive attitude and an manager for Africa and the Mid-East in mind as to what's out there." open mind are very much part of the HP Geneva, has conducted HP business Much has been said and written formula of success on the road. on every continent and has lived and about the profound differences Intercon's Director of Personnel Polly between doing business in Japan Joimson, who spent 40 percent of 1991 and the U.S. and the efforts both sides on the road, says that while Intercon have made to understand the other. doesn't offer formal training to prepare Kiyomi Hutchings, a consultant people for international travel, new who works as a U.s.-Japan liaison, has employees who will travel a lot receive helped prepare a number ofpeople at informal coaching from managers and HP Labs and divisions for successful from Intercon's many FSEs (foreign business dealings between the two sen>ice employees). countries, She gives the following "The most useful thing for me, apart advice for business success in Japan: from my own reading and research," she • Don't insist on yes-no, black and says, "has been to talk with people who white answers, Japanese people do not are from the country or who have trav always say what they're thinking, espe eled there extensively. My best advice worked for HP in the United States, cially ifit's negative. They don't want to for people embarking on their first inter Hong Kong, Australia, Mexico and disturb the harmony so they'll try to say national trip would be: "freat it as a won Switzerland. negative things indirectly. They will derful adventure. Go with an open mind. It's with humility that he remembers smile, change the subject, go silent or Be flexible. Remember you're a guest walking into his office in Guadalajara, say they'll get back to you, This can be in the country and be sensitive to the Mexico, one morning and asking engi very frustrating to people who expect values and customs there.' " neer Roberto Martinez, who was putting more direct and immediate answers. on a sweater, "i,Eresjlojo?" (''Are you ugly?") when what he was really trying to get at was "iTienesjrio?" (':Are you cold?''). All was forgiven after the initial embarrassment because the important thing was that.Joim was making an ear nest effort to learn and use the local language. It was with much hilarity, John says, that the employees roasted him at his last coffee-pot talk as general manager with speeches mimicking his qringo Spanish accent Pf-OTOS BY D::lUGlAS PEC< Polly thinks international business "Americans especially need to appre travel within the HP world is easier than ciate more what the rest of the world independent travel because the network has to offer," John says. "We tend to be insular, so unaware of the rest of the 24 MEASURE • Put an effort into the personal rela tionship because real trust often comes from that. The Japanese businessperson will be trying to envision working with you in the long term. They'll want you to be wise, sophisticated, nice, open minded, flexible, patient, honest, hard working and persistent. Ifyou're invited out on the town after working hours for dinner or to a karaoke bar, go. • Be extremely well prepared for meetings and presentations. • Maintain contact after your visit by sending an occasional card. Kiyorni thinks that after nearly 30 years ofbeing part ofHP, YHP is more "Americanized" than otherJapanese companies. "The HP way is very much ofYlW.~ a part Polly Johnson,lntercon personnel director, and Lee ring, G.M. oflhe Northeast Asia Region, compore notes on multicultural communications during a hallway chat in Hong Kong. positions in the Bay Area and Boston Ifmy travels have changed me, it's that (where he says he picked up his accent), I've become more respectful ofHP as well as France. He's on the road employees everywhere.~ about 40 percent ofthe time. Bernard's advice to the neophyte trav ''The key word is respect. Ifyou get eler: "lake time. Don't rush. Don't panic. there and respect people who work lake care of yourself-avoid alcohol on there and the culture, you will succeed the plane and make time to exercise. Similarly, Bernard de Valence, Inter and grow. Ifyou impose your views. if 'fravel is stressful so take measures to con's director ofFinance and AdminL<; you're pushy, you won't get very far. The reduce stress. Wander around beyond tration, finds HP is much the same differences that do exist can be very your immediate trip objective in order company around the world. "The cul subtle. You will make mistakes but to understand how the organization tw'es, climates and business environ you can be humble about it and stay works. Ask people questions about ments change, but in terms ofday-to-day accessible." their business. They have a lot to busines..'i, I'm not sure that things are all "What works best for me," Bernard teach you.". that different." says, "is ifI roll up my sleeves and work Bernard is French and started with alongside people in whatever country (Jean Burke Hoppe is a San HP in Grenoble in 1978. Before accept I'm Visiting. Even after alI my travels, I'm Francisco, California-basedfree ing his current assignment with Inter still learning. I realize more every day lance ·urrite-r and aformerMeasure can in 1989, he held management the real value of the HP way philosophy editor: -Editor) ofcreating the right environment with clear expectations. and then watching people do their best. "You may learn to give challenges dif ferently to an Australian or a Japanese team, but you always get good results. .January-February 1992 25 Worldly ways Here's a primer on the ways ofthe paternalistic society and decisions world in some ofthe countries in are madp at the top. Several VIsits which HP operates. These arc gener may be neces..'iary to accomplish your Mexico alizations, of course, and intended goals. The coned pel'mirs and paper Personal rdationships are essential only as a small aid to understanding work for business transactions are CO business. Always be warm and per the wonderful diversity ofa part of essential. Don't neglect formalities sonable in approach and take time to HP'sworld. and social rituals. Don't behave C'stablish rapport. A knowledge of impulsively-self-control is valued. ~1('xican culture will impress. Always Brazil Devout Hindus do not cat beef; Mos mamtain dignity, courtesy and diplo Brazil is very different and proudly lems do not cat pork, ham or bacon, macy. Don't rush; don't push. Don'r. independent from the rest ofSouth nor do they drink alcohol. Many il\iure an individual's pride or dignity. America. Portuguese, not Spanish, is people do not eat meat, fish or eggs. Even an honest "no" to a request may the language. Brazil is a very free and be taken as rude. Never arrive early relaxed country-people are warm Italy when invited to someone's home. and friendly, and not very formal. You can get right down to business Conduct business in person when after a few minutes of general con Switzerland possible and maintain contact after versation- Be well prepared for your Swiss business practices are wards, Be expressive in your speech. presentation-you must have a solid similar to those in the t:nited States, Don't rush your business or get knowledge ofyour products, local although people generally are more directly down to business. Make pre applications and track record else formal. Business proceed'i ill an sentations with flair: data with salsa. where. Except in Milan, business orderly, planned fashion. Pt'ople have entertaining is not popular. Don't talk tight schedules, so always be punc People's Republic ofChina business at a social event; stick to tual and do not waste time chatting. The family name is mentioned first, family, sports, international events. You are expected to know yom so Lin Wu is lVlr. Lin. Introductions Don't joke at a purely business industry well. Formalities matter: are formal. Go to business meetings meeting. try to be conservatively dressed, thoroughly prepared and bring a well-mannered and reserved. Don't team of experts ifnecessary; the Korea approach business casually. Avoid Chinese expect you to know every Korean business is characterized by surprises and spontaneity. Errors detail about your own (and competi youthful entrepreneurial spirit, Con will reflect badly on your attention tors') products, markets and organi fucian principles andJapanese man to detail. zations. Don't try to rush things; agement practices. Great respect is anticipate the bureaucratic machin paid to age and position. Courteb'j' (This informatimi is e:Tc(?-}pted ery. Tipping is officially discouraged, is important; modesty is the rule. with permissionfrom "Going Inter Ifinvited to a banquet, the host may Always preserve face and harmony. national, How to Make Friends seat and serve you; do not serve your The family name comes first so Lee and Deal Effectively in the Global self. Eat sparingly because there are Song-Hyon is lVlr, Lee, Thavel with Marketplace~ by Lennie Copeland many courses, plenty ofbusiness cards, Acknowl and Lewi.5 Griggs. Copeland Griggs edging the country's tremendous Prvductions a./.so produced the India growth the past two decades will be four- pa.rt v-iaeo serie-s, "Going Religion has a strong influence on appreciated. Never criticize, openly International,~ which·is part ofthe social and business relationships disagree orbehave abruptly with preparati(m FSEs receive befm'e in India. First names are used only Koreans. Entert:a.inment plays a heading out (m assignment.) among very close friends. India is a major role in business. 26 MEAsllm: HP's president and CEO summarizes the company's Hoshin breakthrough objectives for 1992. 'd like to use this issue ofMea sure to corrununicate the high lights of the 199"2 CEO Hoshin so thatyou know what the company's doing to improve its performance, strengthen our ability to compete and position ourselves to succeed in the future. Over the course ofthe year, you'll be kept posted on progress in this magazine and other HP President and CEO John Young (left) meets with Akio Mortla, co-founder and chairman of the Sony Corporation, in the HP pavilion during Telecom '91 (see story on page 12). internal corrununications. The Hoshin addresses issues ofreal importance to HP, and so this discussion also repre ofwhat we provide for ow' ment plan, goals and metrics by mid-'92. sents the "strategic issues" I've shareholders. And while committees and corporate announced in the past. In 1988, HP's operating-profit margin functions have been assigned responsi In fiscal year '91 we moved ahead on was 11.0 percent. It's been below that in bility for process improvements, most of the two key goals we'd set for ourselves recent years-8.7 percent in '90 and 8.3 the ideas, energy and commitment come in the CEO Hoshin-improved operat in '91, or 9.2 percent without the special from those people in the operating enti ing perfonnance and process improve fourth-quarter charges we reported. ties who are faced directly with these ment. We have much to be proud of. But Our goal for fiscal '92 is to get our problems. This is all very much work the situation analysis in this year's operating-profit margin back to its his in-process, so let me give you a preview Hoshin states what we all know well: toricallevels, and each business unit and ofwhat's underway. The competitive environment is getting corporate function has committed to a tougher all the time, and we urgently plan to help make it happen. We're not • Product-generation need to follow through on the improve relying on double-digit revenue growth process ments we began lastyear. to achieve our goal, but we are relying We need to strengthen our ability to The FY92 Hoshin therefore calls for on very, very slow growth in operating bring to market the right product at a continuation ofwhat we started in '91. expenses. the right time-that is, within the time Let me describe our goals and why frame that represents the window of they're important. Process opportunity in the market. Doing this improvement well is key to achieving the volume Profit As the competitive environment gets sales that allow us to reap the financial 1 improvement ever more challenging, we have to rewards from our sizable R&D HP's profit margins are the best single continually renew our basic business investments. We're concentrating our measure of the value ofour products activities. We have identified five attention on hardware and software and services as measured by customers. companywide processes as the most development, with the Operations Com And, as the article on HP stock in this important targets for improvement. mittee guiding the activities ofBill Kay's issue ofMeasure reminds us, continu Each process has been assigned to a Product Processes organization. ous earnings growth is what makes a Management Council committee that is stock increase in value-a key measure chartered with identifying an improve January-February 1992 27 • People leadership and • Information-systems • Taking the next step practices model and process Let me close with some personal obser We want lIP to be the work place of HP's basic business purpose is to pra vations. One of the biggest challenges I choice for both CUlTent and prospective vide customers with the information face as CEO is finding the delicate bal employees. HP people should have a products that enable them to improve ance between praise and prodding clear understanding ofwhat their busi the effectiveness oftheir people and between recognizing the very real prog ness entity is trying to accomplish, the organizations. Our interest in enhancing ress we've made and dramatizing the flexibility and authority to pursue those our information systems, then, has two urgency of doing even more. The CEO goals, and the sense that their contribu roots-improving our own competitive Hoshin falls in that latter category-a tions are recognized and valued. We also position and prOViding a credible exam reminder ofhow far we have to go. are reaffinning the fundamental truth ple of the kinds of benefits customers Let me aL"o say that I'm extremely that managers are responsible for man can hope to reap from their information proud of our progress. The new organi aging people. investments. zation is working well. People have Progress is being monitored by the We have three improvement goals: taken to heart the challenge of improv improvement in scores on the HP 1) create a closer coupling between our ing our performance. And when I survey Employee Survey ("mini" Open Line) infonnation systems and business strat the industry, I see a lot of wreckage out which now is required at each entity. egies; 2) make the systems more cost there-companies that have become The Personnel Committee has the lead effective; and 3) dramatically reduce the stuck in "the same old way" and have on this issue, working with Pete Peter amount oftime required to implement a fallen off the pace. son and his people. Here the focus is on new application. The Information Sys What gives me the greatest personal the day-ta-day managers to understand tems committee of the Management pride is the fact that we at HP don't bask and improve in this key area. Council is overseeing this activity, and in the pleasure ofself-congratulation. Lloyd Thylor and his people have a good Instead, we constantly commit to taking • Total-quality management plan that they're currently that next step. It's that determination We remain convinced that using TQC implementing. that separates wirmers from losers. total quality control-as the way we When we're in the middle ofwrestling manage our basic business processes • Order fulfillment and with a challenge, it's natural to keep our will help us maximize our performance. delivery eyes focused on the end goal. And since There's been commendable progress in Our goal here is to improve our ability to we can't look in two directions at once, TQC-especially in the manufacturing deliver to customers the exact products we often lose sight of how far we've and support areas-but we've yet to and configurations they ordered, at the ah·eady come. I want us all to remember fully institutionalize this practice. exact time they were told to expect how much we've accomplished as we Some businesses have fallen behind them-and do so cost-effectivelY.lf we move ahead in the coming months. Let's their hardware-quality goals. We're can do it better than anyone else, we balance a relentless pursuit of execl monitoring our progress by looking for have a source of competitive differentia Ienee with the confidence that. in so improvement in the scores on Quality tion. Ifwe can do it more cost-effec many ways, we're already a winner. Maturity System (QMS) reviews that tively, we have the opportunity to save HP entities are undergoing. However, HP hundreds of millions of dollars. we don't want to focus on the score so Order fulfillment and delivery is a much as the self-evaluation and learning complicated process that spans both that the reviews foster. The Planning field and factory organizations and and Quality Committee is leading this includes multiple divisions for systems ISSue. orders. The Sales and Marketing Com mittee has been asked to recommend how we can maximize our effectiveness. 28 MEASURE laughs Fernando Padilla, who both shot the photos Model and also appears as Mr. Feb Seeing spots ruary. He asked each month's SINGAPORE-Ifit worked business districts, have been employees model to choose his own for Greyholllld, why not HP? running since July. Who would pay $180 (U.S.) location and provide his own The folks in lIP's Singa Yellow signs on the side of for a 1992 calendar? props. "The idea was to let pore sales group liked the the buses carry the bold slo Gale DuLude, software each man's personality come lIP LaserJet printer adver gan, "lIP LaserJet printers applications specialist at the through." tising campaign which fea knock the spots offother Finance and Remarketing A touch of their philoso tured Dalmatian dogs so printers." Division (FRD), and 15 of phy, too. Kent Scialabba, much that they've "rolled Business Times, Singa her co-workers did-and looking natural in cowboy out" a fleet of 10 public pore's daily business news they say it's worth every gear while relaxing against a buses painted to resemble paper, printed a photo ofthe penny. Even better, because ranch-style fence, offers this the polka-dot pooches. bus, and HP gained further the calendar was auctioned homespun homily: "Life's a The buses, which ply recognition when it loaned off at FRD's United Way little harder when they catch some ofthe busiest routes the buses for National Day auction, lIP matched the you leaning backwards in in the heartofSingapore, festivities. donation. your three-point stance." including the financial and This particular calendar Fernando estimates the derives its value from its 15 men ofIT spent well over contents: photos ofFRD's $300 rushing to put the cal "Men ofIT" (information endar together in time for technology) in distinctive the auction. It's a one-of-a settings, ranging from Chris kindproject, donejustfor Couture (wearing San Fran the auction. cisco 4ger shorts while bar 'That's why the 16 'I.V07nen becuing in his back yard) ofIT decided to support our to Lawrence Lam (leaning guys by bidding for the cal insolently on his Porsche endar," Gale says. "We did Dalmatian buses in Singapore are a howling success. in a grassy field). exceed our monetary limit "I wouldn't exactly call it but... they're worth it!" cheesecake photography," -JoanneEngelhardt January-February 1992 29 Quoteworthy BOnOM ~ We are well-posi ~·w '11l dt i W.l' 1 cent to $14.7 billion; and LINE net (larmngs in('rea.."ed ;2 "tioned for the most "11iliJ :!>, II\;' "n~ ~'l kin I exciting parts of the elec on the right problems and For the fourth quarter percent to .'li755 million. tronics business for the we're getting the right offiscal year 1991, ended '90s." Within the huge $700 results. That's why HP kind October ~31, Hewlett-Pack NAME billion electronics market, ofsticks out from the pack arci reported a 7 percent ICHANGES "there are lots ofthings that this year (1991) as having increase in net revenue Ac Yokogawa-Hewlett are going to be very exciting, our act together. and a 7 percent growth in Packard. the former YHP with very high growth rates. "We're in a great position orders. Net earnings for Hachiqji Division has been "You're going to see lots -with the terrific products the qUalter declined 38 rmamed the Hachioji ofproducts that are tailored we have-to continue to percent, reflecting special Semiconductor Test Divi to the way people work, be a leader in what's going to charges ofapproXimately sion. and the YHP Instru instead of a bunch ofgen be a very, very competitive 40 cents per share. ment Operation has been eral-purpose boxes and a lot business. That should be (Included in the latter elevated to division status ofwires. It's going to be an good news to every HP were costs ofvoluntary and renamed the Kobe exciting transformation, and employee. ~ severance programs Instrument Division. we are in an excellent under which 3,:300 people The Advanced Manufac position to lead in John Young, HPpresident decided to leave the turing Systems Operation company and/or retire.) that change. ~ & CEO, has been elevated to divi HP VideoMagazine Excluding the adjustment sion status and renamed John Young, HP president December 1991 for these charges, net earn the Integrated Systems & CEO, keynote address, ings grew approximately Division. John Weidert Autofact trade shaw, 12 percent. isG.M. Nmmnber 1991 Pristine white ship Net revenue for the The Disk J\'Iechanisms ping cartons may fourth quarter totaled $1t3 Division is now the Disk ~...we're very close to attract more attention to our billion (compared with lVlemory Division. "thelnformationAge. products than brown boxes, $:3.(; hillion in the year-ago The new organization Information technology is but we're willing to give that quarter), while net earn created under Bill Kay rapidly becoming as com up for the benefits of envi ings totaled $125 million a.." director, combining monplace as the other per ronmentally safer packaging. or 50 cents per share on Corporate Engineering vasive technologies ofour We hope other companies approximately 252 million and elements ofthe former society-the automobile, consider taking this step. ~ shares ofcommon stock Corporate Manufacturing, electricity or the telephone, out"tanding (dmvn from among other activities, ha..<; the FY90 fourth quarter's to name a few. ~ Dean Morton, HP chief heen named HP Product aperating officer $202 million or 83 cent" per Processes. share on some 244 million FranzNawratil, v.p & HP nelL'S release The name of the HP 3000 worldwide sales and ma.r Navember 1991 shares). operating system has been keting manager, Computer Orders for the fourth changed from MPE/XL to Systems Organization, quarter totaled $3.7 biUion MPEliX, reflecting the fact Conference Board, (compared with $:3.5 that the HP 3000 is now Ocwber 1991 billion in the year-ago compatihle with POSIX, quarter). the portable operating Looking at results for all system interface. ofFY9l: HP's net revenue rose 10 percent to $14.5 hil lion; orders were up 9 per 30 MEASURE TlrM AVANTEK ICHANGES IACQUIRED Within the Test and Mea Hewlett-Packard com surement Organization, the pleted an $82.8 million MeasurementSystems acquisition ofAvantek Inc. Operation has been ele ofSanta Clara, California, vated to division status and in November 1991.lt has renamed the Measurement become part ofthe Software Division under Components Group, At the reception for a new book wUh papers of the late Egon Loebner are his widow Sonya (lett) and Ruth Gilombardo of the George Sparks as G.M. Jim Horner has been HPL Research Ubrary. Marty Neil to G,M" named G,M, ofa division SantaClara Division, Jim which merges the former Honoring Egon Olson to G.M., Stanford Microwave Semiconductor Park Division, Bill '!bmeo Division and Avantek's Egon Loebner ofHPLabs osity and inventiveness to G.M., Colorado Telecom commercial products. New scientist, engineer, inven which characterize HP Labs. Division; Gil Reeser to name: Communications tor-was profiled in the Among the more than 80 far GM., Queensferry Micro Components Division, March-April 1989 issue of ranging scientific papers wave Division, newly ele Paul Sedlewicz is pre Measure. He was even then Egon wrote, 23 were chosen vated from an operation. sident ofAvantek Inc., a combatting the rare form of for the book by HPL retiree wholly owned subsidiary epithelial cancer which took Zvonko Fazarinc to reflect ofHP focused on compo his life that December. the breadth ofEgon's inter NEWGROUP nents for the defense The deep impression ests and his contributions IIN CPO industry. that Egan made on the com during 28 years with HP. A new Personal Informa pany and his colleagues is Playing key roles in the l III PI uj1.,1 't· tir I r l PC,) reflected in a new book, The book project were HPL p' d J tlY VP Bob FratI I:~ Selected Papers ojEgan Research Library staffmem en-b g I I -J 'II urI I II . Loebner, published by HP bers Lorene HaU and Ruth within the Computer Prod In the Networked Systems Labs (HPL) as part ofits Gilombardo, and HPL's Rich ucts Organization, PPG Group, Randy Meals has 25th-anniversary-year Marconi. The Compage includes all di"isions that joined HP as G.M., Informa observance. Company produced the were formerly part ofthe tion Networks Division, Egon's widow, Sonya, and book; a limited number of Personal Systems Group Carol Mills to operations family membersjoined more copies for HP employees are and the Personal Com manager of the newly than 200 of his co-workers, available free through the puter Group. formed Cooperative Com co-founder Bill Hewlett and library. (Send requests via Assuming worldwide puting Systems Operation Joel Birnbaum, vice presi HPDesk to RESEARCH responsibility for PPG's which will integrate, test dent for R&D, on December LIBRARY or by UNIX Mail two new product busi and market client-server 18 in Palo Alto for a preview to RESEARCH_UBRARY, nesses are Jacques Clay systems to selected large ofthe 280-page volume. including name and internal (connected desktop PCs) accounts worldwide. AsJoel pointed out, Egon mailing address.) and Duane Zitzner Khaw Kheng Joo to was a synonym for the ctui (mobile/desktop compan GM., Asia Pacific Personal ion products). Clay also Computer Division. becomes general manager Jackye Churchill to GM., ofthe Grenoble PC Complementary Products Division. Sunnyvale, Bob Perich to G,M'J Fort Collins, Colorado, site. January-February 1992 31 ~RTING HOT II Hand in hand ROSEVILLE, California This is a picture ofthe hand ofmy husband, Dan Crom well (General Systems LaboratoIies ofthe Systems Technology Division), and our newly adopted son, Andrew Stephen. We were pleased to be able to take advantage oflIP's adoption-assistance benefit. Sincerely, Tamara Cromwell Photo mania In the September-Oetober Shot"-enough to last us for future issues. Please and November-December more than a dozen years. include your name, job title, issues ofMeasure we invited Because ofthe excep entity name and informa lIP employees to send per tional response, we've tion about the photo. sonal photographs they decided to devote several Send the photo to Jay were most proud offOf pages in the March-April Coleman,Measure editor, possible use on this page. Measure to employee by internal (mailstop 20BR, Well, in the months since, photos. Palo Alto, California) or we've received more than 75 You can still submit external (see address possibilities as the "Parting photos--slidesorprin~ below) mail. -Editor MOVED LATELY? CHANGE OF ADDRESS SHOUW BE REPORTED_TO YOUR PERSONNEL DEPARTMENT. (h~ ~':~';:J6 Bulk Rate US. Postage Measu're Magazine Paid POBox 10301 Hewlett-Packard PaloAlto, California 94304-1181 Company