hortly after the Sept.-Oct. issue of on which to close 1980, the first year Measure was received by HP oj the company's fifth decade. Speople, the phone in President UP FRONT John Young's office began to ring. hywould Hewlett-Packard Comments on the changing The caller said he was interested in produce a videotape pro­ HPscene- exercising his right to use the "Open Wgram about people with and the people behind it. Door" policy. This policy says that physical disabilities? when employees Jeel it necessary Perhaps the best answer is con­ to take their problems, ideas and tained in the program itself which grievances "up the line" they can Measure summarizes on pages do so without hindrance or Jear oj three to six. The handicapped peo­ reprisal on the part oj their supervi­ ple are HP employees who demon­ sor. The caller had been reminded strate what surely seems to be an oj that policy by the HP president's extraordinary ability to adapt to the written message in the magazine. In conditions oj everyday living. We this and other cases that Jollowed, see three such people-on the job an appropriate hearing was ar­ and in their homes. We learn that­ ranged (John was out oj town) with no matter what their particular dis­ someone else "up the line." ability-they share one further What's notable about this flurry oj handicap: the initial reluctance oj activity. which presumably was re­ some other people to accept them peated at other levels and locations as ordinary beings able to learn, to oj the company. is how clearly it re­ work, to feel and even to teach. We flects that coach's maxim of "getting hear them describe some oj the back to basics" when you want to ways they overcame such attitudes. improve a golf swing, a tennis stroke And Jrom supervisors and co-work­ or a management style. The Open ers we discover that disabled peo­ Line process had shown that some ple can indeed do a day's work, HP people didn't understand the bringing a special spirit to the task. meaning oj Open Door, and some That's what the program is about. others didn't Jeel it would work Jor The Videotape is now being ed­ them. It was important to try to ited as part oj a revised Affirmative change such attitudes, some of them Action Workshop Jar release in April based on lack oj communication by Corporate Training and Develop­ and some oj it on real experience. ment. Its developers ate Beth Gian­ A number oj HP organizations dana, oj the Corporate Affirmqtive tackleti the task of improving Open Action department. and Riley Mc­ Door understanding and accep­ Laughlin oj HP-TV. Beth is a Jormer tance through communications. teacher of deaJ and disabled peo­ Meetings oj supervisors were held ple, and serves as liaison to other HP with Open Door as the major topic. organizations in helping them re­ Several gave Open Door new em­ cruit. hire and accommodpte hand­ phasis in training programs. Others, icapped employees. Riley is an including the Southern Sales Region, experienced television producer/di­ made it clear in print that attempts rector. Together with a lighting di­ to Jrustrate the Open Door process rector, George Parrish, they'filmed would not be tolerated. Finally. the "Just Three People" on location at I-W president's message provided an divisions in New Jersey. Son Diego overall definition and interpretation and Santa Rosa. Brought in as a con­ oj the Open Door principle. sultant was Dick Fan, a televisjon Another important plank in HP's producer and Jormer doctoral can­ platform-Management by Wan­ didate in communications at Stan­ dering Around-is included in John ford who wryly says that instead oj a Young's message in this issue oj Ph.D. he got an MS (multiple scle­ Measure. This, too, is another out­ rosis). Dick recently became editor flow irom Open Line findings. Open of the Cupertino IC Operations em­ Line indicated that people wanted ployee magazine. M more opportunities to meet local and corporate managers person to person. They wanted their work to be recognized, to ask questions and present viewpoints, and to gain a broader perspective oj their work­ ingworld. As a part oj the overall process oj Open Line expression and response, the MBWA message on page 23 rep­ resents a clear reaffirmation oj a basic company philosophy. That Beth Glanddn.a and Riley McLaughlin seems a highly appropriate subject work on the videotape.

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www.HPARCHIVE.com TUE SCRIPT TUAT WROTE ITSELF

... a glimpse into the lives ofBarbara, George and Rick­ three of the many tiPpeople who don't let their disabilities stop them.

n screen in a weeks here ] was new HP vid­ very nervous trying O eotape, a su­ to get used to peo­ pervisor speaks ple staring at me candidly about the and looking at me lirst uneasy days down the hallways after an employee and around cor­ with cerebral palsy ners without really was hired, trying to embarrass "When Barbara me, But] knewwhat first came to our de­ they were doing, ] partment. it was knew when] came very difficult, None to HP that it would of the people here take a while for had dealt with a people to realize personwith a hand­ I'm just like every­ icap of this type, San Diego'S Barbara Claubes and co-workers one else," The group did not It is frankness like accept her in the beginning, They felt] shouldn't have this which underlines the honesty of the Videotape hired a person with such a severe handicap and they about HP people with handicaps that has been pro­ didn't believe they could adjust to her in her condition, duced by the Corporate TV facility in cooperation with But after she was with us for about six weeks, they got to Corporate Equal Opportunity (see Up/rant, opposite), know her, They knew they could kid with her, and that The stars of the show are a trio of HP employees who she was the same as they were, And then theyaccepted represent hundreds of other HP people with physical her," limitations that are an accepted part of their lives, on The scene is the manufacturing specifications de­ and off the job, Their feelings, and those of the people partment of the San Diego Division, Barbara Claubes with whom they come in daily contact. shine through in was hired as a clerk there in August 1979, a year after spontaneous comments which are more eloquent than the death of her husband Kim, He also was a victim of any prepared script. as the following pages show, cerebral palsy and one of the first with that disability The videotape originally was intended as part of a hired at that division, Barbara remembers her first days revised Affirmative Action Workshop for supervisors on the job: throughout the United States, However, it speaks so di­ "] felt they were scared to talk to me, They kept rectly about the need for dealing honestlywith the sub­ shying away from me, They wouldn't joke with me be­ ject of physical disability that it will receive wider use cause they didn't know how] would take it.", The first withinHP,

NOVEMBER-DECEMBER 1980 3

www.HPARCHIVE.com When Barbara came to liP we didn't really know what we had to do for her. Should we push her around all day or take her to the cafeteria andfeed her? Then our supervisor told us we weren't sup­ posed to treat her any differentfrom anyone else in theplace. A co-worker

arbara Claubes beeps the horn on her electric wheelchair in B cheerful response to the waves she gets as she wheels along the cor­ ridors of the San Diego Division to expedite paperwork, Her wheelchair, and the facility's electric car which transports her from the front gate to her depart­ ment and back each day, are ac­ commodations which Barbara uses only on the job, At home she walks unassisted with the uncertain tilt characteristic of cerebral palsy. a neuromuscular disease which causes spastic move­ ment. Barbara serves as a model of independence for other severely handicapped adults-teaching a class for them at a local college and opening her own home to demon­ strate ways to handle practical problems, Here she watches as a friend who is disabled learns to peel a potato by herself,

4 MEASURE

www.HPARCHIVE.com hen George Kononenko, who has been deaf since w:birth, applied for a job as a co-op student at the New Jersey Di­ vision in 1974, both he and his inter­ viewers were concerned whether his deafness would be a problem in the give-and-take communication necessary among project engineers, That obstacle was quickly knocked down through written notes and sign language which George began teaching to interested people, He joined the division full-time the next year after receiving his bachelor's in mechanical engineer­ ing, Now he supervises a mechani­ cal packaging group developing new OEM power supplies in the When ourproject engineering lab, in the lab grew large Co-starring with George in the new HP videotape are his wife enough to needproject Linda, who is also deal, and 4-year­ leaders, Jfelt that it old Jennifer who has impaired hearing, Jennifer's bedtime stories was pretty clear that if and all family conversations are it were notfor thefact handled in sign language, George also turns his talented hands to such that George was deaf, leisure-time projects as woodwork­ he would be the person ing, building a rock garden, watercolor painting and home to supervise the group. improvement projects, Jim Stanko

NOVEMBER-DECEMBER 1980 5

www.HPARCHIVE.com We have a lady on the line who told me that when she has a hard time and thinks she can't make it and is ready to quit herjob, she thinks about Rick and the fact that he doesn't quit-he never gives up. And ifhe can, we all can. That's one ofthe strengths I've gottenfrom working with Rick: a sense of his courage that Juse myself. A co-worker

he ways Rick Joy makes contact with others are many and var­ Tied: putting his hand on the mouth and throat of a person to sense the vibrations of speech: touching hands for finger spelling and sign language: using written and typed Braille and the Optacon electronic reading machine for blind people: and communicating with a rapid tattoo of Morse Code for both conversation and ham ra­ dio (he's shown here at his home transmitter). Rick lost his hearing and speech as the result of a childhood attack of meningitis that left his sight severely impaired.,-he lost all remaining sight when he was 19. But he has fully accepted the challenge of tak­ ing part in a world of schooL work, sports, hobbies and social activities. At home he has almost as much test equipment as the typical HP test bench for his electronic projects, along with a garage workshop with power saws and drills adapted for his safe usage. It was Rick's accomplishment in personal projects after coming to HP electronics which qualified him for was building a typewriter that pro­ a job as an electronic assembler at duces a message in Braille so he the former Santa Rosa Division in could communicate more easily 1973. In his work on the line he far with fellow employees. M exceeds the standards in assembly speed and accuracy, slowing down a little for soldering tasks. One of his The photos for thiS story come from the soon-to-be-releosed HP Videotape

6 MEASURE

www.HPARCHIVE.com IT'SA LARGE ORDER But Waltham Division can handle every detaiI from order clearing to custom cabling on the road.

elicita Madden has worked for more than 15 years for Waltham FDivision's systems cabling de­ partment at a job that normally re­ quires only a daily commute from home and back. Recently, however, she has been showing up for work in Arizona, Nevada, South Carolina, Georgia, Michigan and Maryland. That's because she's part of the division's factory installation team which now takes its act on the road in the interest of saving time and money when large orders are installed at customer sites. Teams of assemblers and test single order for patient monitoring Production cabler Julie Currie puts the technicians arrive at a hospital equipment in the U.S. at the time. finishing touches on an ECG cable at installation site along with bedside When a large order is received the National Navy Medical Center In monitors, central stations, arrhyth­ (generally for more than $500,000), Bethesda, Maryland. mia monitoring, patient data man­ a team of representatives from or­ agement systems and raw cabling. der processing, order clearing, spe­ terns of HP medical equipment are Production and systems cablers cials, scheduling, finished goods now being installed well below pre­ tailor the necessary cables on site­ and quality assurance move into vious installation costs. And people a less expensive process than ship­ action under the watchful eye of a in the cabling departments hear ping finished cables to be installed large-order specialist. It's that per­ a lot of interesting travel stories by customer engineers. son's responsibility to move the these days. M These on-site teams are one part order smoothly from quotation to in­ of the large-order management stallation. Periodic check point concept that Waltham Division has meetings are held to coordinate the used since 1977. The idea evolved processing, building and shipping when HP received a $2.5 million or­ efforts. der from Walter Reed Army Medical The division team is paralleled Center, considered to be the largest by a field large-order team at the sales office which includes a site manager (usually a customer engi­ neer or district service manager), a sales engineer and a systems engineer. As a result of the large-order management teams, complex sys-

NOVEMBER-DECEMBER 1980 7

www.HPARCHIVE.com

•

n 1965 Hewlett-Packard was the "We don't want to close the door on workplace for 9,000 employees, new fields, but we'll look very closely I had $163 million in sales and was before we commit company re­ ranked 365th in the Fortune maga­ sources to new product lines," zine top 500 industrial firms, Specifically. the redefined role of It was also the year that the HP HPLabs is: Labs organization was formed after • To conduct research in areas of the division labs left Palo Alto, The present or probable future interest new group was made up of portions to HP. These areas include new of the original lab and the HP k;so­ materials, processes, devices and ciates lab, all under the direction of Flexible capillary columns for gas techniques that will extend the Barney Oliver, now HP's vice presi­ chromatography are the result of technology base necessary for HP dent-Research and Development. cooperation between HP Labs and leadership, Avondale DivIsion. Fifteen years later the company • To enhance the efforts of the divi­ has exploded to an employment of sions in advancing product lines in more than 57,000 people, has an­ existing businesses, Frequently this nual sales in excess of $3 billion, and "Our objectives were first estab­ will mean "leap-frogging" develop­ is 150th in the Fortune 500, lished in the mid-'60s when Hewlett­ ments that are currently in progress During the last 15 years HP Labs, Packard was a smaller company." in the divisions, Products that put the the centralized corporate research said Barney Oliver, "We felt it was company into new businesses re­ and development organization, has time to redefine our role officially quire corporate endorsement be­ undertaken hundreds of projects because both the Labs and the com­ fore proceeding beyond the large and small, In the '50s and pany have grown larger and more feasibility stage, early '60s, when HP Labs was "the complex," • To coordinate and establish lab," these were aimed mostly at de­ The changes in the role of HP leadership in key technologies, such veloping specific new products out Labs reflect trends that have been as VLSI (Very Large Scale Integra­ of existing components, The need to taking place over the years, accord­ tion), that impact many or all divi­ engage in research-oriented proj­ ing to Barney. "We've been doing sions, and to develop corporate ects grewwith the emergence of some research in certain areas all strategies for these. new technologies such as solid-state along, but we'll be placing greater • To develop superior hardware electronics and atomic standards, emphasis on scientific-oriented re­ and software tools that will improve With the changes in HP's top search and less on engineering­ the efficiency of the engineering management this year it seemed oriented, process at HP. appropriate to get consensus on the "With engineering-oriented, you • To serve as a scientific resource role of HP Labs, conduct your research, find the best for the divisions, providing knowl- solution and run with it. In scientific­ oriented, you conduct your re­ search, find the best solution and then find a better solution," HP Labs used to have a charter , to develop new products and take them all the way from concept to production prototype, HP's first handheld scientific calculator, the HP-35, was a perfect example (see accompanying story), Today that has changed, "It's going to get harder to field a new product line, mount a new sales force and make a dent in the mar­ ket at the same time," said Barney.

NOVEMBER-DECEMBER 1980 9

www.HPARCHIVE.com edge, experience, experimental Ivan Crockett R&D manager at devices and special services on Avondale, had a prototype column THE HP-35 LEGEND request and, when appropriate, from HP Labs in his hands before by organizing symposia in areas the year was out. "We were amazed Is it possible to squeeze all the de­ of groWing interest. when we took it back to Avondale sired features of a super-slide rule Instead of leap-frogging prod­ and hooked it up. We were able to calculator into a neat case that ucts, Barney expects there will be run tests with the new column that would lit in a shirt pocket and sell more leap-frogging of technologies. we had never been able to run be­ for less than 5400? "We want to look three to nine years fore," said Ivan. "The flexible silica The 1972 introduction of the HP­ ahead, researching and develop­ column was more inert-less re­ 35 handheld scientific calculator ing the technologies of the years active-than anything we'd used." ended any doubt about whether it ahead. At the divisions there is a During the next six months Labs was feasible. But looking at the fin­ great sense of urgency to meet the and Avondale produced more pro­ ished product doesn't tell the story of challenge of the competition right totypes and test columns that led the massive team effort that took the now. That sense of immediacy often to the introduction of the flexible product from dream to reality. I conflicts with a long-term look at capillary columns in October 1979. It's easy to lose perspective of the • technologies and strategies. That's Before the year was out one of HP's importance of this achievement in where HP Labs will focus its effort." major competitors in the field held today's world of shrinking electron­ How then does the corporate a "dinosaur sale" on the older glass ics. But before the HP-35 there were R&D effort complement the re­ columns. HP's new fused silica no calculators with mathematical search efforts at HP divisions around column had "turned the world function capability smaller than the world? A good example was the of chromatography upside down," desktop machines. development that changed the gas according to Ivan. HP Labs' Electronics Research chromatography industry in less A number of HP divisions can Labs under Paul Stoft had been than a year. The team effort be­ trace their roots to HP Labs projects, working on a miniature calculator tween HP Labs and Avondale Divi­ including Scientific Instruments, Op­ solving problems in designing and sion produced a revolutionary toelectronics and all the computer building an inexpensive and reli­ flexible capillary column for gas and calculator divisions. able display and keyboard in the chromatographs. Is the Labs' R&D effort worth the small size. A February date was set Older GCs used a glass column money invested every year? Yes, ac­ to determine whether HP could that was prone to breakage and cording to Bill Hewlett. "Like adver­ manufacture the pocket-sized elec­ would occasionally react with the tising, advance R&D such as the tronic slide rule. samples being tested. During a Labs engages in is hard to evaluate By February all the pieces were division review in late 1978 Barney on a direct dollars and sense basis. coming together-for the CPU, the Oliver suggested the division might However, there is no doubt in my ROMs, displays, the floating deci­ look at some of the fiber optics tech­ mind that this group of engineers mal point and other algorithms. nology that the Labs and the Opto­ and scientists is one of our major On February 2 the product got a electronics Division had been using. corporate assets." M provisional go-ahead, pending the outcome of a marketing study. The stUdy indicated the calcula­ tor would selL but the research firm recommended it be produced as an adding-machine sized machine. "The researchers said there was only a small market for a pocket­ sized calculator with scientific and mathematical functions:' said Paul "But we knew. because of our own needs, that our original slide rule concept was a good one, so we went ahead as planned. Further­ more, we had already ordered the dies for the case!" Teams from HP Labs, Corporate Design, HPA Santa Clara and Manu­ facturing divisions went to work. In seven months the first working pro­ duction models were computing their integrated hearts out and five months later the 35 went to market. , Since the introduction of the HP­ 35 lots of other companies have joined HP in developing sophisti­ cated and powerful electronic cal­ culators. But for those who took part in the speedy development of the first handheld scientific calculator, the story of the HP-35 will alWays be a legend. M "Looks like R&D Is on to something big." DraWing by Chas Addams. © 1973 The New Yarker Magozlne. Inc 10 MEASURE

www.HPARCHIVE.com L u p A c K A R o

From the very start ofthe company, she has quietly and effectively fostered the liP beliefin people, the well-being ofthe community, and the success ofherfamily . .. I by Virginia Brunner j

he start ofHewlett-Packard's but effective wayshe has helped to and marine exploratorium. Monte­ first manufacturing operation in reinforce the company's philosophy rey Bay Aquarium Foundation was Ta now-famous Palo Alto (Jarage andparticularly to reflect that phi­ established to fund this major under­ is fairly well known and widelyre­ losophyin service to the community. taking which Julie describes as "a corded. That record speaks ofDave In that role she was joined and marriage between an innovative Packard and Bill Hewlett as co­ stronglysupported byFlora Hewlett science museum and a valuable re­ foullders, ofa capital investment as a friend and associate until Flora's search facility." of $538 and a design for an audio death in 1978. Planned are arrangements oscillator. Occasionally there is Today; from her unique perspec­ where one can make an eye-to-eye some reference to Mrs. Packard us­ tive, Lu Packard recalls some of the acquaintance with sharks, touch in(J her oven to bake painted, metal special circumstances that helped and feel sea anemones or starfish in panels to arrive at a certain color to create the company and shape a tidepooL see frolicking sea otters, for the first products. . the lives ofits principals and their view an exhibit of bioluminescence Yes, she baked those panels. She families: (sea creatures emitting light), mari­ also helped establish the young culture (sea-water farming) or a companybyserving as administra­ unique display of giant sea kelp, to tor ofits first office and as its first name a few. The planners hope this secretary (meanwhile working full Today Lucile Packard's calendar project will become self-supporting time as a secretary at Stanford shows that a meeting of the board of from admissions and income from University). directors, Monterey BayAquarium, an adjoining restaurant and shops. But full recognition ofLucile is scheduled. Built on the site of the Hovden Can­ Packard's contributions to the com­ Julie, the youngest of the Pack­ nery which closed its doors in 1970, panyin its earlyand continuing ard children, is a phycologist (spe­ the aquarium will cost $25 million. It development is little known-and cialist in algae studies) and project promises to be an innovative contri­ long overdue. director for the aquarium. Noncy, bution to the area which will offer a According to people who have the oldest Packard daughter, and stimulating experience to visitors known Lu Packard and the com­ her husband are marine biologists. when it opens its doors in 1984. Lu panyover the years, hermost signifi­ Together these three are helping to Packard takes great interest and cant contribution hasbeen the quiet design and create an aquarium pride in the aquarium project, rep-

NOVEMBER-DECEMBER 1980 II

www.HPARCHIVE.com resenting as it does a creative in­ her English degree in 1935, attended garage served as workshop. volvement in community and family. secretarial school and returned to As Lu Packard recalls, "The first Lucile Salter, a third generation Stanford as a secretary. She accept­ Hewlett-Packard office was the din­ Californian and San Franciscan, ed David's engagement ring in ing table. It was a nice table, but was born of parents with an entre­ December 1937. fairly heavy. I know that because we preneurial bent. Her father, a photo­ InApril 1938, Lucile took the had to move it every time before we engraver, was a sensitive man and Overland Express to Chicago, could let down the wall bed, since an intellectual. Her mother did the changing trains there to reach Sche­ the wall bed was in the dining room. nectady. It was quite an adventure bookkeeping for the family business, "The dining room is where every­ I made financial investments in a to take such a long journey-four to thing happened. Everything about I small way and raised two dau·ghters. five days-alone. In Schenectady the business was discussed and de­ I LU's childhood dream was to at­ Dave met Lu at the train station and cided here. My role was typing the tend Stanford, but the admission ra­ then they were married. letters, keeping the records and l tio at that time was 500 females to Plans were underway in Palo heating up the coffee pot. 2,500 males. She was turned down Alto. Dave Packard remembers "David's first desk was a second­ the first time she applied, but was " ... Fred Terman arranged an op­ hand one given to him by my par­ later accepted. In time she became portunity for me to come back here ents. It occupied the place of honor a counselor of incoming students with the express purpose of getting in the little house which Bill Hewlett based on the leadership she showed together with Bill (HeWlett) to see if vacated when he and Flora were in campus life. During the autumn of we could get something started. married. It filled that space so com­ 1933 a student named David Pack­ So Bill found this house on Addison pletely the door would barely open. ard met Lu in the kitchen of her so­ Avenue ..... But at least this gave us an office not rority house. He was washing dishes. n September the Packards re­ on the dining table-our first estab­ Dave Packard graduated from turned to Palo Alto and moved lished office!" Stanford with a B.A. in 1934, then did I into the brown shingle house Bill Lu had returned to her former graduate work at the University of had found. The Packards occupied job at Stanford, working Monday Colorado until his job with General the first floor, the landlady the sec­ through Friday and half of Saturday. Electric in Schenectady, N.Y. began ond, and Bill Hewlett housed himself At night and on Sundays, she did all in February 1935. Lucile completed in a small bUilding in the back. The of the letters and bookkeeping for

n II nl I II I I ~ , Being hoste..to large groups of Ranching became another HP Joint Eye on the bow, Luelle launches a new people Is a skill Lu Packard has honed venlure - and a family adventure - at naval ve..el with a clean hn - one of since these first HP picnics. San Felipe Ranch. her Washington experiences.

Archnecfs sketch of Monterey Bay Aquarium, a family dream soon to become really. rr-·· , I

www.HPARCHIVE.com the young company As the company take home to the children, I knew the Hewlett's youngest. I always en­ grew, the work load expanded and the names of all the employees' chil­ vied Flora for managing to have additional help was required, dren for many years until the num­ five children while I had four. "Our first employee was Helen, a ber increased beyond possibility" "At one point David and Bill went bookkeeper we hired in 1940, I can't The remarkable business rela­ deer hunting at a place named San remember her last name but I can tionship of the Packards and the Felipe just south of San Francisco recall her face," Lu Packard had re­ Hewletts had a family parallel. "I Bay, They liked the area, so when signed from her job at Stanford but didn't meet Flora until after David that land became available we de­ continued to work for the company and I were married although Flora cided to become ranchers, It was a after David Woodley was born, and Bill were engaged at that time, family participation arrangement he scope of office duties con­ Flora and I became close friends yet from the first. Most of the Hewlett and tinued to expand quickly "I did we were very different." Packard children learned to swim in Teverything from secretarial Lu Packard recalls that "we had the little pool at San Felipe because tasks to interviewing and keeping the same small group of close neither of the families had a pool at personnel records," remembers Lu, friends, but each of us had different home, The children rode horses "During World War II I took on the volunteer interests, We went in differ­ through the hills and learned about time-consuming but necessary job ent directions when the choice cattle raising and the pleasures and of organizing carpools to get em­ came to larger community causes, problems involved, ployees to work and back home," "Our families were all-important "Ranching led us into all sorts of Early, when HP was small and to each of us, The boys shared inter­ interesting avenues, The San Felipe functioned much like a family, all ests in science and music, Our Julie Ranch has been a project for both employees were given gifts to mark and Mary Hewlett both chose biol­ Bill and David, and a joy for both a wedding or birth, "I selected the ogy for their university studies, families," gift for newlyweds and the one for "One thing has alWays interested Ray Wilbur, now retired from HP new parents, In early times, when me, the spacing of our children, Our posts as vice president of Personnel the number of employees was smalL David Woodley is the eldest of the and Human Resources, was particu­ I personally selected gifts for all of nine, but close in age to Eleanor, the larly impressed with the interest and the children, and at the Christmas Hewlett's oldest. Our Julie is the concern shown by Lu and Flora for party gave them to the parents to youngest, but close in age to Mary, HP people, He recalls that they partic-

Endless opportunmes for ceremony A strong supporter of Children's The Packards continue fo be very awaited the Packards In Washington. Hospital af Stanford, Lu chaired Its active hosts to business people from They soon learned fo be selective. successful1976 funding campaign. around the world.

www.HPARCHIVE.com ipated actively in company social Dave's resignation from his govern­ Health CounciL Children's Hospital events such as picnics, and were ment post. Once again he was at Stanford and Wolf Trap National very available in helping people at elected chairman of HP's Board of Park for Performing Arts, Virginia, important times and crises in their Directors, while Bill Hewlett contin­ Margarita Espinosa, former princi­ personal lives, "Through their inter­ ued as president and chief execu­ pal of Castilleja SchooL observes est in our people, policies and prac­ tive officer, Together the Packards that "Mrs, Packard has a gentle, har­ tices they certainly had an impact resumed a very busy schedule of in­ monizing influence on any group, on the HP way," Ray notes, volvement in family. business, com­ but at the same time makes a defi­ nevitably. the growth of Hewlett­ munity and charitable activities, nite contribution," Packard through the '50s and '60s Currently Lu takes a strong inter­ With the traveL family project of I brought changes in the way est and actively participates in the the aquarium, a new home in Big things were done, Less and less was administration of the David and Lu­ Sur, and the arrival of grandchildren it possible for "everyone to know cile Packard Foundation, They had (there are now six) there may be a everybody else," established the foundation in 1964 transition from community causes to For Lu it became a period of di­ to make grants to community-cen­ more family activities, The Packard minishing direct participation in the tered health, education and cultural children chose their own directions business, but with growing involve­ activities located primarily in the but the communication between ment in family and local community. San Francisco Bay Area and the parents, children and grandchil­ She thrived in both of these new Monterey Bay Area, She peruses dren speaks a harmonious equilib­ roles, Ray Wilbur again provides each request and helps select those rium, At the heart of the matter is the some of the record of that involve­ that merit consideration by the foun­ original 1938 commitment. As a ment: "At times we served together dation's board which includes the friend says, "With Lucile, David al­ on several boards, such as the Fam­ Packard children, All four children ways comes first." M ily Service Association and the Chil­ have grown up and have chosen dren's Hospital at Stanford, Lu was a careers-Julie and Nancy as ma­ very active participant. She offered rine biologists, Susan an M,B.A., and "For us there was no alternative! To a great source of strength in espous­ David Woodley a Ph,D, in classics, be on our own, to work, to produce ing and supporting the purposes of Their specialties provide a wide something that would do the job each organization, She became range of professional expertise at right, That otherpeople would want much sought after because any per­ board meetings of the foundation, to bUy! For David and me that was son or group that can gain her at­ Lu Packard finds her time being the onlyway" tention in her busy and committed divided somewhat differently now Lu Packard was talking about life receives great benefit-from her that her husband is not as directly in­ motivation-the force that lqunched friendliness, knowledge, interest and volved in HP day-to-day operations, the company 41 years ago and kept leadership," Among those receiVing 'Agreat deal of my time is spent it groWing, "I remember the thoughts such support were the Family Service traveling with David as he follows I had just before I dropped David's Post Auxiliary, the Blood Bank and his business and professional inter­ letter ofresignation to General Elec­ Junior Red Cross, ests, Being the wife of a board mem­ tric in the mailboxin June of 1939, Then came Dave's appointment ber of other companies takes up a Mailing that letter cut ourfinancial as Deputy Secretary of Defense in good deal of my time in a very ties, but we felt there was no alterna­ 1969 and a move to Washington, pleasant way," tive to being one's own boss," D,C. It proved to be an exceptional Lu Packard herself has served on experience, the more so because Lu many boards during the past three had never lived outside of California decades, including San Francisco except for those few months in Sche­ Symphony. Castilleja SchooL Family nectady in 1938, Service Association, Children's It began with all the aspects of setting up a new home for two, and meeting bureaucrats, politicians and diplomat~, At one dinner gathering, at a time of rather touchy relations with the USSR. Lu found herself sedted next to Soviet Ambassador Dobry­ nin, 'Across the table, David would eye me with suspicion every time I spoke to my dinner companion, Fortunately. we talked exclusively about California wine and Califor­ nia scenery (he enjoyed both), and his daughter's recent wedding in Moscow." One Washington experience stands out-the Eisenhower funeral: "David and I sat on the aisle as the official party walked down the ca­ thedral. I felt truly a part of a mo­ ment in history," Lu and Dave returned to Califor­ nia at Christmas 1971, following

14 share. And it takes at least six weeks CHANGES IN ASIA to receive replacement certificates. In theory it would be difficult for a YOUR TURN It was a bittersweet experience thief to sell stock certificates issued in Invites you to question or reading the September-October your name-yoursignature must comment on matters of Measure article "The Changing appear on the back and mustbe Importance Fabric of Southeast Asia." One part guaranteed byan officer of the to the readers of me was delighted in seeing other bank. "Stop transfer" orders can also of Measure. people given some of the opportu­ be issued much the way you stop nities we enjoy in the United States. payment on a personal check. But if However, a greater part of me was you should everlose your stock cer­ saddened by the article's inference tificates for anyreason. contact Jo of the influx of Western mores and Thomson in the Corporate Secre­ folkways on a race that has a rich tary's Department in Palo Alto. and deep culture of its own. In adopting the West's hedonistic life­ style, they will undoubtedly inherit its serious consequences. The U.S. is WARMING UP ample proof that social and moral TO MEASURE decay is a result of the breakdown of family ties and certain traditions Here's a picture of my HP energy in the quest for self-fulfillment. quilt. the largest qUilting project I've Gauging one's living standard ac~rual tackled so far. The inspiration lor the by the of material goods center design was the cover of the and attainment of selfish pleasures is February 1979 Measure I've been precarious. The article calls atten­ teaching quiltmaking, designing tion to the increase of consumer and sewing them for eight years. goods and the collapse of family and my HP energy quilt makes a cohesiveness and traditions as the beautifuL large, warm wall hang­ workers become more independent ing. Thanks for the idea. and affluent. Hopefully they will discern the transitory nature of the Janet Elwin Western psyche, but this is doubtful. Amesburg, Mass. The enigma of third world coun­ tries entering "the twentieth century" juxtaposed to the abatement of traditional values exposes a per­ plexing and probably unsolvable problem. However, the question surely remains: Is this trUly progress?

Keith Zellman Eastern Sales Region Lexington Janet Elwin's quilt Measure's cover WHERE DO YOU STASH YOUR STOCK? Because crime everywhere is on the increase, I thought you might want Address letters via to give readers a hint about Hewlett­ company mail to Editor, Packard stock certificates. When Measure, Public thieves break into a house, apart Relations Department. from the obvious goodies like jewel­ Building 28A Palo Alto. ry and silverware, they also look for Via regular postal books of unused checks and stock service, the address is certificates. So, if you don't have a Measure, Hewlett­ moat with crocodiles and a couple Packard Company, of killer dogs, at least put your stock 1501 Page Mill Road, certificates into a bank's safety Palo Alto, CA 94304. Try to deposit box. keep your letter under Doreen Petersen 200 words. Please sign Computer Support Division your letter and give your location. Names will be By all means, keep track of those withheld on request. certificates. It they're lost. replacing Where a response is them means you mustpaya "bond indicated the best fee" to the insurance company available company equal to three percent of the current source will be sought. sales price of the stock for each

NOVEMBER-DECEMBER 1980 15

www.HPARCHIVE.com WORLDWIDE STANDARD The interface bus (HP-IB) which Hewlett-Packard developed in 1972 NEWS CLIPS for its own needs in interconnecting Recaps the newsworthy instruments and controllers into events, changes and systems has now been accepted as achievements within HP. a worldwide standard, Official announcement came during a two-week International Electrotechnical Commission (IEC) meeting which HP hosted in Palo Alto in September, Don Loughry of the Technical Computer Group has been involved in all stages 01 the broadening ac­ ceptance 01 the interlace concept going back to the lirst proposal At International Electrotechnlcal Com­ made by the U,S, delegation at a mission meeting In Palo Alto: session meeting of the lEe's measuring ap­ chairman Ivan G. Easton, HP's Don paratus committee in Munich, Loughry and IEC Deputy General Sec­ retary Leendert Van Roolj from Geneva. Germany, eight years ago, It was adopted as the U,S, standard in tion work lor the Spokane Division's 1974 and now has made its way lirst permanent lacility on a 157- through the meticulous international acre site near Liberty Lake, with standard-setting process to become completion slated in March 1982", IEC Publication 625-1, Startup manulacturing operation 01 At last count some 175 manulac­ the proposed Lake Stevens Instru­ turers in 14 dif1erent countries were ment Division near Everett Wash" is using the interlace concept that scheduled by the summer 01 1981 in HP contributed to the world, a leased lacility", Stanford Park Di­ vision is talking about relocation in MAKING IT OFFICIAL the mid-1980s lrom Palo Alto to a site The beginning 01 FY 81 on Nov. 1 in San Jose, CaliL where the Micro­ marked the of1icial creation 01 wave Semiconductor Division is al­ several new HP entities (including ready located, those in the new Business Computer Group reported in the last issue), NEW HPL CENTER The Santa Rosa Division split into A 10urth major research center has the Signal Analysis Division, Rit been established by HP Labs lor re­ Keiter, general manager; the Net­ search and development projects in work Measurements Division, Bill the design 01 advanced computer Wurst general manager, and the architecture, hardware and so11­ Santa Rosa Technology Center, ware, and in advanced applica­ George Bodway, manager, tions 01 computers, Director 01 the Also oflicially in business is the new Computer Research Center will Greeley Division under Tom Kelley. be Joel Birnbaum, 10rmerly director On the same date, Doug Spreng 01 the computer sciences depart­ became general manager of the ment at IBM's Thomas J, Watson Re­ Disc Memory Division lor which he search Laboratory in Yorktown had held day-to-day operating Heights, NY. responsibility since June, BUSINESS COMPUTERS THRUST DOWN THE ROAD At a major press conlerence on Dec, HP has obtained an option to pur­ 4 in Cupertino, Calif.. attended by chase 315 acres in Longmont Colo" editors from the U,S" Europe and to accommodate long-term expan­ Mexico, the Computer Systems sion 01 the Loveland Instrument Divi­ Groups introduced new means for sion, The company has also entered getting information lrom computers into a conditional purchase agree­ into the hands of managers in lin­ ment to acquire 263 acres in Rohn­ ished 10rm. Combined in the single ert Park, Cali1" near the present introduction: Santa Rosa facilities", Ground­ • The new HP 3000 Series 44 com­ breaking began Nov, 5 on excava- puter from the Computer Systems Di­ vision which is twice as powerlul as the earlier HP 3000 Series 33, yet only live percent higher in price, To back up the company's faith in its performance, purchasers are of­ fered a money-back service agree­ ment that specilies critical elements

16 MEASURE

www.HPARCHIVE.com Laser Printing System's page printer Easy-to-carry defibrillator/monitor Ultrasound Imaging System of the system will stay up and run­ ning 99 percent of the time. The ser­ vice guarantee against downtime is thought to be a first for the industry. •A new 2680 computer-con­ trolled laser printer from the Boise Division, part of a system that can store standard business forms elec­ tronically in the printer and deliver finished-looking computer reports at the rate of45 pages a minute. Re­ ports may be done on letter-size pa­ per-looking as though formally typeset and illustrated with graphics if desired. •A typewriter-quality computer printer (260 IA) made by Diablo has been adopted into the HP line to augment the HP text and document processing system offered for use HP 3000 Series 44 with HP 3000 business computers.

OTHER NEW PRODUCTS ENERGY SAVER Appointment of Rudi Speier as HP has entered the diagnostic imag­ HP was one of 15 firms, organizations Controller Europe fills a key position ing market with the 7702A Ultra­ and individuals from throughout the created in a regrouping of Euro­ sound Imaging System introduced United States to receive the Presi­ pean corporate functions last spring. by the Andover Division in Novem­ dent's Award for Energy Efficiency Speier has been controller for HP ber. It enables a physician to see in ceremonies in San Francisco on Germany. sharp images of internal organs, October 23 Jim BelL formerly director of cor­ such as a beating heart. without sur­ porate research for Digital Equip­ gery or radiation. NAMES TO KNOW ment Corporation, has joined the When resuscitation is reqUired, the Dick Love has been named to the Technical Computer Group with an McMinnville Division's new 78660A newly created position of director of initial assignment to assist in techni­ Portable Defibrillator/Monitor is not international manufacturing, re­ cal computer R& D and strategy only easy to carry but also has a porting to VP - International Bill planning, reporting to Group Man­ built-in recorder to provide com­ Doolittle, to develop a worldwide ager Doug Chance. plete documentation of the episode manUfacturing strategy for the com­ New division marketing manag­ on a recorder strip. Critical data pany. He'll continue to wear his hat ers include Tom Anderson at Data such as actual date/time and deliv­ as Intercontinental manufac~uring Terminals Division; Scott Wright and ered energy information is thus au­ operations manager... Intercon has Joe Battuso, moving up from opera­ tomaticallyavailable. named Malcolm Kerr to the post of tions marketing posts at the new Net­ A new Option 100 added to the Far East area manager in Hong work Measurements Division and Loveland Instrument Division's Kong, replacing Lok Lin. Kerr has Spectrum Analysis Division respec­ 3060A Board Test System now auto­ been general manager of HP Singa­ tively. and Srini Nageshwar at the mates the rapid troubleshooting of pore and HP Malaysia sales opera­ new Greeley Division. complicated computer-type circuits tions. New country manager for HP with microprocessors. While it uses Argentina is Don Rowe, formerly signature analysis (the technique in­ sales manager for the Data Systems troduced by HP in 1977 to establish a Division. unique number or "signature" of pulses In a particular computer-type circuit), it also can test circuitry that doesn't have signature analysis.

NOVEMBER-DECEMBER 1980 17

www.HPARCHIVE.com ne day not long ago I drove a in on ruined cathedrals and tourist employed here, 40 percent are en­ rented car from the snow­ clip joints, we have made it our busi­ gineers, programmers, technicians, O swathed peaks of the Rocky ness to see how people work. For clerical or managerial personnel. Mountains down along snaky roads, nothing tells us more about their cul­ They work in a huge, high-ceilinged then across the high plains, and ture. And now in Colorado Springs I open space. One wall is a giant pic­ down, down again until I reached was once again visiting a factory. I ture window that frames an impos­ the eastern foothills of that majestic had been told that it was among the ingview of Pikes Peak. The other mountain range. There in Colorado most advanced manufacturing fa­ walls are painted bright yellow and Springs, under a brilliant sky, I made cilities in the world. white. The floors are light-colored myway to a long, low building com­ It soon became clear why. For vinyl, gleaming and hospital clean. plex that nestled along the highway, in plants like this, one glimpses the The workers at HP, from clerks to dwarfed by the peaks looming be­ latest technolpgy and the most ad­ computer specialists, from the plant hind me. vanced information systems-and manager to assemblers and inspec­ As I entered the building I re­ the practical effects of their conver­ tors, are not separated spatially but membered again the factories in gence. work together in open bays. Instead which I had once worked, with all This Hewlett-Packard facility of shouting to one another over a their clatter and roar, their dirt turns out S100 million worth a year of machine clatter, they speak in nor­ smoke and suppressed anger. For electronic apparatus: cathode-ray mal conversational tones. Because years, ever since leaving our man­ tUbes for use in TV monitors and everyone wears ordinary street ual jobs, my wife and I have been medical oscilloscopes, "logic ana­ clothes, there are no visible distinc­ "factoryvoyeurs." In all our travels lyzers" for testing and even more ar­ tions of rank or task. Production em­ around the globe, instead of zeroing cane items. Of the 1,700 people ployees sit at their own benches or

18 MEASURE

www.HPARCHIVE.com Changes in work ethic, personal life styles, andpolitical and economic mindsets are creating a new wave that is beginning to topple today's industrial system. Author Alvin Toffler is convinced Hewlett-Packard's manage­ ment style andproduction methods are at the cutting edge ofa new era in the operation offactories and busi­ nesses. The ''first wave" to transform human history was the agricultural revolution ofsome 10,000years ago. The "second wave" was the industrial revolution that be­ gan .300years ago. 1bday's "third wave" will provide opportunitiesfor a better life, according to Toffler.

desks; so many of these are deco­ grievance procedures, if any. They old friends would marvel at the free­ rated with trailing ivy, flowers and would ask whether the exotic new dom of the HP employees, again other greenery that from some vis­ materials being handled in this within limits, to set their own work ual angles, one has the fleeting illu­ plant are really safe or whether pace. To talk to managers or engi­ sion of being in a garden. there are environmental health haz­ neers without worrying about status Striding through this facility I ards. They would assume rightly that or hierarchy. To dress as they wish. In thought how poignant it would be if I even under the seemingly casual re­ short to be individuals. In fact my could magically lift some of myoid lationships some people give orders old companions, in their heavy mates out of the foundry and auto and others take them, steel-tipped shoes, dirty overalls and assembly line, out of the racket the Nevertheless, myoid friends' working-men's caps would find it dirt the hard bruising manual labor shrewd eyes would take in much hard, I believe, to think of the place and the rigidly authoritarian disci­ that is new and sharply different as a factory at all, pline that accompanied it and from the classical factories they And if we regard the factory as transplant them into this new-style knew. They would notice, for exam­ the home of mass production, they work environment. ple, that instead of all the HP em­ would be right. For mass production. They would stare inwonder at ployees arriving at once, punching is not what this facility is all about. what they saw, I doubt very much the clock and racing to their work We have moved beyond mass pro­ that HP is a workers' paradise, and stations, they are able, within limits, duction. M my blue-collar friends would not be to choose their own individual work­ From The Third Wave, published by easily fooled, They would demand ing hours, Instead of being forced to William Morrow & Co., Inc. © Copy­ to know, item by item, the pay stay in one work location they are right 1980 byAlvin Toffler: Reprinted schedules, the fringe benefits, the able to move about as they wish, My bypermission of the publisher:

NOVEMBER-DECEMBER 1980 19

www.HPARCHIVE.com CLOSE UP Zooms In on the ever-changing world of HP people, d,4iJj products and places',4li'

YCling'SRenaissance man is Jobst Brandt. according to the May issue 01 Bicycling magazine. Jobst is an Op­ C toelectronics Division development engineer who has become a legend among cyclists in the San Francisco Bay Area. He has raced, organized, taught. written and now is leatured on a lull-color poster and the catalog 01 a Palo Alto cycling shop. Obviously his interest and involvement in bicycling go beyond simply commuting to work. "I get a euphoria out 01 cycling a lot 01 people don't." admits Jobst. Cupertino's rush-hour streets were the site 01 an HP salety class in October. Participants watched a mm called "Bicycling Salety on the Road" during the tirst day 01 instruction, and took to the streets lor on-the-road experience the second day. San Diego Division's cycling team, "Les Escargots:' was part 01 an 880-person tield that pedaled across 125 miles 01 Mexican desert lor "lun, health, recreation and international goodWill between Mexico and the U.S." When the lO-hour day drew to an end, "All I wanted was a hot tequila, a cold beer and a massage:' said San Diego's Peggy Wyman.

ne 01 the last places secondly attractive. The you would expect lact that an HP computer O to tind an HP com­ was part 01 the show is tes­ puter is in an art gallery. timony to the 88 HP em­ But the Walnut Creek ployees around the world (Calilornia) Civic Arts who are called in at the Gallery had an HP-250 early stages 01 product business computer sit­ development to decide ting in the middle 01 the how the machine will Hoor, near a backpacking look. As products like the tent. a model subway car HP-250 move out 01 com­ and a typewriter. puter rooms and become The show was billed as working parts 01 ol1ices "hardware arts" - objects and homes, style will that are tirst useluI and be even more important.

20

www.HPARCHIVE.com hen the 10 a.m. break bell sounded at the Love­ land Instrument Division on June 12. Nancy W Morgan and Jack Griffith lett the HP plant for the downtown courthouse. There they repeated "I do" before the judge. ran through a shower of confetti and arrived back at work by 11 a.m. Duringthe atternoon break. their fel­ low employees in the integrated cir­ cuit test department toasted the couple at a mini-wed­ ding reception amidst the test equipment. tool boxes. streamers and balloons.

ewlett-Packard gave $12 million to some of its top termi­ nals salespeople recently. but the winners couldn't H spend any of it. The money was once legal United States currency. but had been withdrawn from circulation. and shredded into green confetti. Carl Flock. sales development manager for Data Ter­ minals Division proudly guards the million-dollar prizes.

t takes a strong commitment to commu­ nity service to don an oversized Uncle I Sam suit and pass out voter registration flyers. But that's what John Riggen, general manager at Colorado Springs Division, did and it paid off handsomely. In four days, 435 employees registered to vote in the November presidential election. "It was well worth it." he says. "Sometimes you have to give a little extra incentive to encourage people to do the right thing." CHILI!~ C/)ON'ONSt-; ~ hili may be a heart-burning. eye­ watering dish to many. but it's a way z-arq~ C of life for Judie King, service support manager in HP's Richardson. Texas sales office. Judie has been collecting prizes ~WATERV'l~ and trophies for her chili recipe and recently competed in the World Champion Chili Cook-Off in Terlingua. Texas. She enters alGARLlCl~ about 25 weekend cook-offs every year, all of them staged for charity. Each chili recipe is judged for color. aroma, heat and taste. TOMATOn~ Judie's secret ingredient: Chinese peppers. 21

www.HPARCHIVE.com A MESSAGE FROM JOHN YOUNG The importance of wandering aroundi managing the business cycle.

In academic robe as a member of Stanford University's Board of Trustees, HP President John Young attends the Inauguration of new Stanford President Don Kennedy on October 12.

efore reviewing our 1980 per­ (MBWA)." As far as I'm aware, that are much appreciated. formance and looking ahead phrase was first coined by one of our Because electronics is a growth Bto 1981, I would like to "close managers, John Doyle, now vice industry and Hewlett-Packard is a the loop" on my message in the last president-Personnel. Quite plainly, it leading company in that industry, it issue of Measure in which I dis­ urges managers at all levels to is often assumed that we are im­ cussed our Open Door policy. make themselves accessible to all mune to the business cycle. This is Important questions for manage­ the people whose work they super­ certainly far from being the case. A ment arising from that policy are: vise or influence and to show the in­ brief review of the nearby chart will "How do we create an atmosphere terest they have in those people­ show the cycles or trends in orders as that encourages Open Door com­ their work and their lives. they are affected by economic ups munication in the broad definition of Sometimes the word "wandering" and downs. The chart is a very sensi­ the subject?" and "What can we do is replaced by "walking" which is lit­ tive indicator of incoming order in a pro-active way that tends to an­ erally the way many HP managers growth rates, and is prepared by ticipate rather than react to the ten­ put MBWA into practice. Such walk­ comparing the percentage change sions that inevitably arise in the work ing may seem random but it should oj a current quarter's orders with place?" be regUlar, creating a feeling of that of the same quarter a year ago. Over the years at HP, we've devel­ openness and providing informal Looking at the chart you can see oped a response to those questions opportunities for everyone to hear the impact of the major business that's most"aptly described as "Man­ and be heard. The desired result is cycles. In 1970 the winding down of agement By Wandering Around mutual trust and respect for both the the Vietnam war brought on a diffi­ people and the process involved. I cult time for HP, a period in which we can think of no greater responsibil­ took every other Friday off for about ity for an HP manager. six months in order to bring our pro­ ur operating results for the duction capacity and orders into 1980 fiscal year ending Octo­ alignment. Also clear are the O ber 31 were released to the 1973-74 oil-induced recession and public on November 24 and are the still unresolved decline of summarized at the right of these 1979-80 pages. As I pointed out in my profit­ A key point to observe about this sharing announcement. the com­ HP chart is the wide ranging peak­ pany had an excellent year, one of to-valley ratio; at the peaks, the our best ever. The hard work and growth rate is as many as 40 per­ team effort that made it all possible centage points higher than at the

22 MEASURE

www.HPARCHIVE.com valleys To accommodate this dy­ namic range requires great care in management. For HE of course, the 40 very top priority is protecting every­ .;;-, ,:' ..•. one's employment continuity. We :: .:. 30 ..' ,::' :: therefore tend to manage very de­ j. . ; '::, '/ , fensively. On the upside of a business /" .::':; ...' 20 'I..," ,. .~. :' . cycle, for example, we schedule .;- .~. ,.:' .:: more overtime to avoid hiring peo­ , :' '.j';: 10 .....": ple we couldn't support over the ::. ::.

long term. We also allow our back­ ';, ,I' log to build up and our deliveries to o '/i f' customers to stretch out. Then, as business turns downward, we draw 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 from that backlog. By not having overhired we can keep our produc­ tion capacity relatively constant HP ORDER RATE QUARTERLY PERCENTAGE throughout the business cycle. CHANGE FROM LAST YEAR We also have other ways of exer­ cising great influence over our own business fortunes, ways not available to many commodity businesses. Pri­ 1980-AN EXCELLENT YEAR FOR HP marily we do this through our highly productive new-product program ligible HP employees received For the year, international orders The fact is that $75 out of every $100 cash profit sharing of $42 mil­ accounted for about 52 percent of in sales for a given year come from Elion for the second hall of 1980, all orders, and totaled $1.62 billion, products introduced during the pre­ equal to nine percent of base salary. up 30 percent from $125 billion in ceding five years. This provides us It was the second highest semi-an­ 1979 Domestic orders increased 19 with a very powerful stimulus to help nual payment percentage in the last percent to S1.52 billion from S1.28 offset some of the effects of recession. 15 years. First-hall 1980 profit shar­ billion the previous year. In the During the next few months we ing was 8.52 percent. fourth quarter, international orders have our work cut out for us. First, we Unaudited year-end results rose 23 percent to $376 million from need to exert maximum effort in all showed HP achieved a 3 I percent $306 million in the year-ago quarter. of our order-generating capabilities increase in sales and a 32 percent Domestic orders were $399 million, around the world-to be sure that increase in net earnings for its 1980 up 20 percent from $332 million in we are taking every action to raise fiscal year ended October 31 . the 1979 fiscal year. our current order rate up to our pro­ Sales totaled $3.10 billion, com­ Preliminary figures show that, for duction capacity. That capacity pared with $236 billion in the 1979 the 1980 fiscal year, the company's presently is 5 to 10 percent higher fiscal year. Net earnings amounted electronic data products repre­ than the incoming order rate. Con­ to $269 million or $4.47 per share on sented approximately 49 percent of currently. we need to focus our ener­ approximately 60 million shares of sales. Electronic test and measure­ gies on new products that can be put common stock outstanding. This ment instruments accounted for 39 solidly into production now; these compares with $203 million, or $3.43 percent, medical electronic prod­ could well provide the most impetus a share on approximately 59 million ucts for 7 percent, and analytical in­ to our order-generating program. shares outstanding in 1979. Net strumentation for 5 percent. As we've seen, the growth rate in earnings as a percent of sales were orders goes up and down. Yet, the 8.7 percent against 8.6 a year ago. average over any business cycle in Incoming orders for the year to­ recent years is a very solid 20 to 25 taled $3.14 billion, an increase of 24 percent annual increase. This percent from the $2.53 billion in or­ means a doubling in the size of our ders booked in fiscal 1979. company every three or four years. In the fourth quarter, sales totaled We fully expect to return to this kind $871 million versus $681 million in of growth trend as the current cycle the year-ago quarter, an increase of works its way through the world's 28 percent. Fourth-quarter net earn­ economies, and we remain optimis­ ings were up 43 percent, to $80 mil­ tic about the long-term prospects for lion, or $1.32 a share, from $56 our company. million, or 93 cents a share. Incom­ My sincere thanks to all of you for ing orders were $775 million, an in­ makingHP's 41 st year in business crease of 21 percent against $638 such a success. million in last year's fourth quarter. Have a happy holiday season Domestic orders in the fourth and a great newyear. quarter exceeded those in the third quarter by eight percent. Interna­ tional operations, however, continue to experience a recessionary slow­ down. Fourth-quarter international orders, compared with the third quarter, were down four percent­ the second straight quarter for a decline.

NOVEMBER-DECEMBER 1980 23

www.HPARCHIVE.com