Measure For the men and women or Hewlett-Packard f MAY 19n
• ICs the HP way (pages 2-6) • Revised Corporate Objectives (pages 7-10) • The role of enterprise (pages 11-13) • Lucky young lady (pages 14-15) The miracle in asmall package HP's big stake in the Ie revolution o The introduction of HP's 9100A desktop calculator in 1968 was hailed as a technological milestone. The 91 OOA could solve problems in science and engi neering that had been beyond the reach of earlier electronic calculators, even In a speech to Stanford graduate stu outperforming some computers of its day. It could be programmed with mag dents and alumni last November, HP netic cards so that complex problems could be solved with a fe\'l keystrokes. Executive Vice President John Young And it was no bigger than an office typewriter. which was quite an accomplish commented on the dramatic progress of ment at the time. IC technology. "In 1960," he said, "simple minicomputers would typically need Today that same capability - and a little more - is packed in a pocket 10,000 separate, discrete transistors, each sized, battery-powered version, the HP-67. It weighs only 11 ounces - 58 times made on a single chip of silicon. Then less than the 9100A. came the integrated circuit revolution. By The reason for this tremendous reducing act in less thEm a decade? Inte 1965 there were commercially available grated circuits. Tiny devices that combine thousands of circuit elements on a ICs that combined about ten transistors, single silicon chip. The Ie, third-generation descendant of the vacuum tube with all their interconnections. in a single and the transistor, has made it possible to put the equivalent of more than chip. Semiconductor technology has. ever 70,000 transistors into that pocket calculator. since, been giving us ICs of larger and
2 Under the strictest of clean-room conditions, Jane Plankinton of HP Labs inspects a silicon wafer that may contain up to 150 identical integrated circuit chips. Each chip can routinely accommodate 10,000 or more circuit elements with present technology, and the number is growing rapidly.
larger scale, concentrating more and more Sandi Carr of Data Systems transistors and other circuit elements into Division "digitizes" a sketch of a new integrated circuit design less and less space. and enters it into the computer. "When these devices become more and Much of the software used in more complex, and smaller and smaller, IC design and production was much more is accomplished than minia developed within the company. turization. We can also cut costs, increase speed, reduce power requirements, and at the same time improve reliability. "By 1968, 100·transistor ICs of rea sonable price became common, costs came down, speeds went up, and reliability im proved. Minicomputers began to grow up, doing many of the jobs that once required big mainframe computers ... At the same time, the new and more complex ICs were making it possible for large mainframe computers to expand their performance ten times and more, without comparable increases in price or reduction in reliabil When that happens, the next techno At that time HP already had nine IC ity. This process has continued right up logical step, according to John Young, will facilities. A crucial question was whether to today, when manufacturing a 10,000 probably be the use of an electron beam to centralize for greater production econ circuit-element chip is about as easy as to etch the chips directly. "Refining the omy or continue to locate new facilities putting one transistor there in 1960. If same methods used in electron micro close to the R&D labs they served. one extends this growth rate, the number scopes - actually the same way the elec It requires enormous investments of of elements per chip will reach 100,000 in tron beam in your TV set is focused capital to establish and operate IC facili 1980, and perhaps 1,000,000 in 1985." we can produce powerful beams 1000 ties, and they can be obsolete in three to An integrated circuit is made by fo times narrower than the tightest light five years if they're not continuously up cusing light on photosensitized silicon beams. We can direct the beam entirely graded. Divisions were told to anticipate surfaces through a succession of complex by electronic means under computer con annual expenses approximating the total masks. Each layer is formed by "develop trol, so we can create new designs rapidly, replacement cost. "This is just a rule of ing" that surface much as you would a duplicate them reliably, and eliminate thumb," explained Merrill Brooksby of photograph, leaving a pattern of exposed many problems that surround the use of Corporate Engineering, "but if it costs a substrate. The appropriate semiconductor fragile optical masks. &beam circuits will million dollars to start an IC facility, then material is then diffused into the silicon be so small they will be unrecognizable it'll take at least that much each year to and this sequence is repeated, with varia under the most powerful optical micro sustain it. To keep up with changing tech tions, for the next process step. scope." nology, about one fourth of the facility The 10,000 or more elements that go should be replaced each year." into it are first laid out and drawn in large Making ICs the HP way Still, it was felt that de·centralization scale - often with the help of computer Realizing that integrated circuit tech was more in keeping with the HP style of aided drafting equipment - and then re nology was vital to the company·s future, product innovation. As it was pointed out duced photographically to form the masks. managers at the corporate level began in in the written strategy statement, HP is As more and more elements are concen 1975 to formulate a long-term strategy for generally most successful when its prod trated on a chip that's only about a quarter the development and production of ICs. ucts are novel and unique at a reasonable of an inch square, the photomask method In October of that year, an eleven-page price rather than undistinguished and will become obsolete - the fine Jines re document was distributed, outlining the cheap. When low price is an objective, the quired will be impossible to achieve corporate strategy and setting guidelines through optics. for the divisions and product groups. (continued) HP approach is to usc new technologies Ie revolution in new ways to achieve it. "If we had a central Ie faeiJity it would be difficult to bend enough to ac commodate the R&D people," ~\'lerrill went on. "It's hard to do research at arm's length. And HP just doesn't need the high volume production some other companies do, so production efficiency is not our main goal. As Dave Packard put it, our objective is to produce the right product at the right time - not to keep the diffu sion furnaces fulL" With that general direction established, the questions that remained concerned di vision economics, and for the most part they had to be answered by the divisions themselves. Whether to start an Ie faciJ-
Henry Chiang of HP Labs puts a batch of IC wafers through one of many process steps - in this case to add a dielectric material. This laboratory on Deer Creek Road in Palo Alto is the newest and most automated IC facility in the company.
" .
Design engineer Lou Scheffer of Loveland (Colorado) Instrument Division checks an Ie drawing made on the large horizontal plotter in the background. Most HP divisions use similar computer-aided artwork (CAA) systems to simplify the job of drafting complex circuitry. ity, share one, buy from a vendor or even from another HP division - these deci sions had to be based on each division's requirements. It was decided that no division should have to be responsible for the success or failure of another. So a division wanting to make use of someone else's IC facility for R&D would have to provide its own people and any special equipment as well as funds. Production commitments would A glossary of Ie terminology be made only after careful consideration of the costs and schedules. Did you think you'd mastered the lot of circuitry is packed onto a tiny chip. Facilities are to be used for all phases jargon of the electronics age when you Contrast with MSl and SSI, for medium of the development and production proc learned that "byte" wasn't a misspelling? and small scale integration. ess. To have separate lab and production Well now it is the integrated circuit that NMOS - N-channel MaS facilities would not only be too costly, it has HP engineers speaking in tongues. Just PMOS - P-channel MOS would also lengthen the time required to when we think we're catching on about MOS - Metal oxide semiconductor, a transfer an IC design from R&D to pro RAMs and ROMs, they throw in some basic IC technology using metal oxide duction. At some time in the future when new acronym like PROM. And there we silicon field-effect transistors. facilities are highly automated and con are, waxing nostalgic about our big high p.P - Microprocessor, a semiconductor trolled, the transfer of IC designs from an school dance while technology passes us central processing unit (CPU), principal R&D facility to a separate production fa by. Here's an attempt to bring you up to component of a microcomputer. cility might be practical. But today it's not, date on the alphabet soup of lCs: MSI - Medium scale integration, the and in order to make timely product con accumulation of several circuits (usually tributions HP must be able to move circuit BPC - Binary processor chip, a type of less than 100) on a semiconductor chip. designs easily from the drawing board into "computer-on-a-chip." PROM - (See ROM). Programmable production. CAM - Content addressable memory, in read-only memory. Refers generically to Even the ultra-modern IC facility in which the location of a desired data all ROMs that can be programmed by HP Labs is used for production as well as pattern can be retrieved on command. the user. research, according to Merrill. "Some of CCD - Charge coupled device, a semi RAM - Random access memory, a the CMOS circuits for calculators are be conductor that stores localized packets collection of semiconductor cells that can ing produced in HP Labs while a new IC of charge that can represent digital be in either a "one" or "zero" logic state. facility is being built in Corvallis. This is information. This stored piece of information is one consistent with the corporate IC strategy CMOS - (See also MOS). Complementary "bit" of memory. for the start-up phase - to go somewhere metal oxide semiconductor. "Comple ROM - Read-only memory, in which else and buy the IC capability first. But mentary" refers to the presence of both information is stored and used, but not Corvallis Division isn't making HP Labs N-channel (negative) and P-channel altered in operation. A program stored responsible for its success. They have their (positive) devices on the same chip. permanently in a read-only state is called own people there and HP Labs is only pro DIP - Dual inline package, a popular "firmware." viding the facility. An important part of type of IC packaging. SOS - Silicon on sapphire, a new IC the strategy is that divisions should es EAROM, EEROM & EPROM - (See technology. The circuitry, instead of being tablish a learning relationship and not just also ROM). Electrically alterable, formed on a wafer of bulk silicon, begins a vendor relationhip with the facility." electrically eraseable and electrically with a thin layer of silicon on a sapphire In California, HP has IC facilities in programmable ROMs. substrate. Devices are separated by Palo Alto (both HP Labs and Components ECL - Emitter-coupled logic, a logic dielectrics - oxide and sapphire - so they Group), Cupertino, Santa Clara and Santa family using the emitters of transistors as can be packed tightly for large-scale Rosa. In Colorado, Loveland Instrument the gating elements. Subsets of this same integration. Division, Calculator Products Division logic family are often referred to as E2L SSI -- Small-scale integration_ and Colorado Springs Division have (emitter-emitter logic) and EFL (emitter SI2L - (See TTL). Schottky transistor separate integrated circuit labs. Corvallis function logic). transistor logic, a low power TTL family (Oregon) Division will soon begin work Hi~IL - High noise immunity logic, using Schottky diodes to achieve in its brand-new facility. which can be interfaced with an MOS low power. Even with these facilities, representing microprocessor system to protect against TIL (or T2L) - Transistor-transistor an investment of many millions of dollars, noise transients. logic, a bipolar circuit logic named for the HP still fills about 60 percent of its inte PL - Integrated injection logic, a new way its transistor components are grated circuit requirements by buying type of bipolar LSI logic which uses interconnected. from outside the company. The reason, upside-down transistors. VLSI - Very large scale integration, the quite simply, is that solid-state memory LSI - Large-scale integration, in which a next step in miniaturization. (continued) Japan, which haven't yet established their Tackling 'hidden' technologies Ie revolution own IC capabilities. Until now, most IC research has been By making more and more of its own concentrated on developing the processes. ICs, HP has been able to offer end prod The circuits themselves have been de ucts that are truly unique contributions signed in much the same way engineers a fundamental corporate objective as well have been laying out printed-circuit boards and other standard chips can now be sup as a central part of the company's IC strat for years. But now, as the processes are plied very inexpensively by semiconductor egy. The emphasis is on value in the end becoming capable of putting tens of thou companies that mass-produce them. Al products more than the devices them sands of circuit elements onto a chip, the though their use can be copied by com selves, and this approach often leads in job of designing circuitry is more com petitors, off-the-shelf ICs are fine for many quite different directions from those taken plex. Finding ways to help the designer applications. by competitors. layout such circuits is what Merrin calIs To get started making custom ICs, a HP recently made news, for instance, a "hidden technology" - one that's just small division might develop a circuit, by announcing the first products to emerge beginning to come out of hiding. The so have it reduced to photomasks, and have from its silicon-on-sapphire research. SOS lutions will emerge from IC technology an HP integrated circuit facility include is an IC process that had been all but itself, as it becomes possible to provide it as part of a normal production run of abandoned by most of the industry. But every designer with individual computing a standard process. The "customer" di HP found that SOS has definite perform power and graphics capability to help re vision usually sends its circuit design engi ance advantages for some specialized duce the complexity of the job. neer to the facility to learn, to develop the large-scale ICs, and Computer Systems The next "hidden technology" MerriU custom IC, and follow it through produc Group has used the technology in its new sees on the horizon is concerned with tion. This method has been used success "MC2" (micro-CPU chip), which is essen testing these large-scale microcircuits. fully by HP organizations in Europe and tiallya tiny computer. When you have 20,000 elements on one chip, how do you determine if all 20,000 are working right? "Well, again, the an swer is by computer. Up to now we've done it pretty much manually. We have to first design a test, de-bug the test, and then de-bug the chip. Then we develop a pro duction test to check each one we make. For years we've been using computers for testing, but now we're moving toward using computers to design the tests as welL" There's no time spent trouble-shoot ing, according to Merrill. If a chip is bad it's discarded, which means that the semi conductor industry throws away about 70 percent of its product. "A 30 percent yield is considered good. Sometimes 10 percent is good, but 30 percent is our optimum, so when it gets higher than that it means we should put more on the chip." And so the integrated circuit revolu tion continues. Microprocessors and other ICs are being used in more and more ways in electronic instruments, making them smaller, more reliable, faster and easier to use. The cost of computing hardware is dropping by a phenomenal 30 percent a year, putting it within reach of more and more customers. Before long HP will be able to put the total computing power of an HP 2100 computer on a single quarter inch chip, and we are only beginning to At Santa Clara Division, Susette Urmeneta loads a photomask "camera" or pattern generator that photographically draws a miniaturized version of perceive what other miracles are possible an IC design, under the direction of a computer. This equipment has with large-scale integration. 0 replaced the large copy cameras that once made photo reductions for ICs that were far simpler than today's.
6 HEWLETT-PACKARD STATEI\1Ei'\T OF CORPOKf\TE OBJECTIVES
The Hewlett·Packard Corporate Objectives have changed very little over the years. Periodically there are modifications in wording and emphasis, but essentially they have retained their basic substance. The most recent up-dating of the Objectives, following discussion at the general managers' meeting last January, resulted in some clarification and re-emphasis in the Introduction, Fields of Interest, People and Citizenship sections. Individually, these changes do not affect the intent of the Objectives; collectively, they reflect the dynamic nature of the company and the worldwide em'ironment in which it operates.
The achievements of an organization are the totally unacceptable. As a practical matter, result of the combined efforts of each individual ethical conduct cannot be assured by written in the organization working toward common policies or codes; it must be an integral part of objectives. These objectives should be realistic, the organization, a deeply ingrained tradition should be clearly understood by everyone in that is passed from one generation of employ the organization, and should reflect the organ ees to another. ization's basic character and personality. FOURTH, even though an organization is If the organization is to fulfill its objectives, made up of people fully meeting the first three it should strive to meet certain other fundamen requirements, all levels should work in unison tal requirements: toward common objectives, recognizing that it is only through effective, cooperative effort that FIRST, there should be highly capable, inno the ultimate in efficiency and achievement can vative people at all levels throughout the organ be obtained. ization. Moreover, these people should have the opportunity - through continuing pro It has been our policy at Hewlett-Packard not grams of training and education - to upgrade to have a tight military-type organization, but their skills and capabilities. Thi [s especially rather, to have overall objectives which are important in a technical business where the clearly stated and agreed upon, and to give rate of progress is rapid, Techniques that are people the freedom to work toward those goals good to fy will be outdated in the future, and in ways they determine best for their own areas people h uld always be looking for new and of responsibility. better ways to do their work. Our Hewlett-Packard objectives were initially SECOND, the organization should have published in 1957. Since then they have been objectives and leadership which generate modified from time to time, reflecting the enthusiasm at all levels. People in important changing nature of our business and social en I an l pn51tiol1S "hl) ld 1'\0 rrly e en vironment. This booklet represents the latest hu. ti er es. the . h uld b 5 lected updati ng of au r obj ectives. We hope you fi nd for their ability to engender enthusiasm among them informative and useful. thei r associates. There can be no place, espe cially among the people charged with manage ment responsibility, for half-hearted interest or half-hearted effort. Chairman of the Board
President and Chief Executive Officer
April,1977 7 1. PROFIT The success and prosperity of our company OBJECTIVE: To achieve sufficient profit to will be assured only if we offer our customers finance our company growth and to provide superior products that fill real needs and pro the resources we need to achieve our other vide lasting value, and that are supported by a corporate objectives. wide variety of useful services, both before and after sale. In our economic system, the profit we gen erate from our operations is the ultimate source Our responsibility to the customer begins with product development. Products must be of the funds we need to prosper and grow. It is designed to provide superior performance and the one absolutely essential measure of our corporate performance over the long term. Only long, trouble-free service. Once in production, these product~ must be manufactured at a rea if we continue to meet our profit objective can sonable cost and with superior workmanship. we ach ieve ou r other corporate objectives. , Ou r long-standi ng pol icy has been to rein A prime objective of our marketing depart vest most of our profits and to depend on this ments is to see that the finished product is reinvestment, plus funds from employee stock backed by prompt, efficient service. Moreover, purchases and other cash flow items, to finance good communication should be maintained our growth. This can be achieved if our return with the customer and among various HP sales teams, on net worth is roughly equal to our sales growth rate. We must strive to reach this goal Because of our broad and growing line of every year without limiting our efforts to attain products, very often several sales teams will be our other objectives. working with a single customer. Each of these Profits vary from year to year, reflecting teams has a high degree of technical knowledge changing economic conditions and varying de and sales skill. There must be considerable co mands for our products. Our needs for capital operation among teams to assu re that the prod ucts recommended best fulfill the customer's also vary, and we depend on short-term bank overall, long-term needs. loans to meet those needs when profits or other cash sources are inadequate. However, loans HP customers must feel that they are dealing are costly and must be repaid; thus, our objec with one company with common policies and tive is to rely on reinvested profits as our main services, and that our company is genuinely in source of capital. terested in arriving at proper, effective solutions Meeting our profit objective requires that we to their problems. Confusion and competition design and develop each and every product so among sales teams must be avoided by a clear that it is considered a good value by our cus assignment of sales responsibilities, plus sound tomers, yet is priced to include an adequate uc;l m '1 J Y Kr sal Q.I In nd 1? Qi g H'~ profit. Maintaining this competitiveness in the 'IJs1 n r n ''al'ld bJectiv" ma rketplace also requ ires that we perform ou r manufacturing, marketing and administrative 3. FIELDS OF INTEREST functions as economically as possible. OBJECTIVE: To enter new fields only when Profit is not something that can be put off the ideas we have, together with our tech until tomorrow; it must be achieved today. It nical, manufacturing and marketing skills, means that myriad jobs be done correctly and assure that we can make a needed and profit efficiently. The day-to-day performance of each able contribution to the field. individual adds to - or subtracts from - our The original Hewlett-Packard products were profit. Profit is the responsibility of all. electronic measuring instruments. Over the years, our product line has expanded to include 2. CUSTOMERS computers and computer systems, solid-state components, electronic calculators, medical OBJECTIVE: To provide products and serv electronic equipment, and instruments for ices of the greatest possibfe value to our cus chemical analysis. Thus our growth has led to tomers, thereby gaining and holding their a continuing expansion of our fields of interest. respect and loyalty. To a large extent, diversification has come from applying our resources and skills to fields tech vidual, the personal dignity of each, and the nically related to our traditional ones. recogni tion of personal achievements. The key to HP's prospective involvement in Relationships within the company depend new fields is contribution. This means providing upon a spirit of cooperation among individuals customers with something new and needed, not and groups, and an attitude of trust and under just another brand of something they can standing on the part of managers toward their already buy. To meet this objective, we must people. These relationships will be good only continually generate new ideas for better kinds if employees have faith in the motives and of products. It is essential that before final de integrity of their peers, supervisors and the cision is made to enter a new field, full con company itself. sideration be given to the associated problems On occasion,situations will arise where peo of manufacturing and marketing these products. ple have personal problems which temporarily 4. GROWTH affect their performance or attitude, and it is important that people in such circumstances be OBJ ECTIVE : To let our growth be limited treated with sympathy and understanding while only by our profits and our ability to develop the problems are being resolved. and produce technical products that satisfy real customer needs. Job security is an important HP objective. Over the years, the company has achieved a How large should a company become? Some steady growth in employment by consistently people feel that when it has reached a certain developing good new products, and by avoid size there is no point in letting it grow further. ing the type of contract business that requires Others feel that bigness is an objective in itself. hiring many people, then terminating them We do not believe that large size is important when the contract expires. The company wants for its own sake; however, for at least two basic HP people to have stable, long-term careers reasons, continuous growth is essential for us dependent. of course, upon satisfactory job to achieve our other objectives. performance. In the first place, we serve a rapidly growing At Hewlett-Packard there are many oppor and expanding segment of our technological so tunities for advancement based upon individual ciety. To remain static would be to lose ground. initiative, ability and accomplishment. Man We cannot maintain a position of strength and agers at all levels should be concerned with the leadership in our fields without growth. proper development of their people and be In the second place, growth is important in committed to providing advancement oppor order to attract and hold high caliber people. tunities to everyone, regardless of race, color, These individuals will align their future only creed, sex, age or national origin. Since we try with a company that offers them considerable to promote from within whenever possible, peo opportunity for personal progress. Opportuni ple should be given the opportunity - through ties are greater and more challenging in a conti nuing prog rams of trai ning and education growing company. - to broaden their capabilities and prepare themselves for more responsible jobs. 5. OUR PEOPLE We want people to enjoy their work at HP OBJECTIVE: To help HP people share in the and to be proud of their accomplishments. This company's success, which they make possible; means we must ma ke su re that each person to provide ;ob security based on their per receives the recognition he or she needs and formance; to recognize their individual deserves. In the final analysis, people at all levels achievements; and to help them gain a sense determine the character and strength of our of satisfaction and accomplishment from company. their work. 6. MANAGEMENT We are proud of the people we have in our organization, thei r performan ce, and thei r atti OSJ ECTIVE: To foster initiative and creativity tude toward thei r jobs and towa rd the company. by aI/owing the individual great freedom of The company has been built around the indi action in attaining well-defined objectives. In discussing HP operating policies, we often means identifying our interests with those of refer to the concept of "management by objec the community; it means applying the highest tive./f By this we mean that, insofar as possible, standards of honesty and integrity to all our re each individual at each level in the organization lationships with individuals and groups; It means should make his or her own plans to achieve enhancing and protecting the physical environ company objectives and goals. After receiving ment, building attractive plants and offices of supervisory approval, each individual should be which the community can be proud; it means given a wide degree of freedom to work within contributing talent, time and financial support the limitations imposed by these plans, and by to worthwhrle community projects. our general corporate policies. Finally, each per Each community has its particular set of social son's performance should be judged on the problems. Our company must help to solve basis of how well these individually established these problems. As a major step in this direction, goals have been achieved. we must strive to provide worthwhile employ The successful practice of "management by ment opportunities for people of widely dif objective" is a two-way street. Management fe ren t backgrounds. Among other th ings, th is must be sure that each individual understands requires positive action to seek out and employ the immediate objectives, as well as corporate members of disadvantaged groups, and to en goals and policies. Thus a primary HP manage courage and guide their progress toward full ment responsibility is communication and mu participation at all position levels. tual understanding. Conversely, employees must As citizens of their community, there is much take sufficient interest in their work to want to that HP people can and should do to improve plan it, to propose new solutions to old prob it - either working as individuals or through lems, to stick their necks out when they have such groups as ch urches, schoo Is, civic a r char something to contribute. "Management by itable organizations. In a broader sense, HP's objective," as opposed to management by "community" also includes a number of busi directive, offers opportunity for individual free ness and professional organizations, such as dom and contribution; it also imposes an obli engineering and scientific societies, whose in gation for everyone to exercise initiative and terests are closely identified with those of the enthusiasm. company and its individual employees. These, In this atmosphere it is particularly important too, are deserving of our support and participa that the strength of the whole company is kept tion. In all cases, supervisors should encourage in mind and that cooperation between indi HP people to fulfill their personal goals and viduals and between operating units is vital to aspirations in the community as well as attain our profitable growth. their individual objectives within HP.
It is important for everyone to realize there At a national level, it is essential that the are some policies which must be established company be a good corporate citizen of each and strictly ma inta in ed a n a co rpo ra te-wi d e country in which it operates. Moreover, our em basis. We welcome recommendations on these ployees, as individuals, should be encouraged corporate-wide policies from all levels, but we to help in finding solutions to national prob expect adherence to them at all times. lems by contributing their knowledge and talents. The betterment of our society is not a job 7. CITIZENSHIP to be left to a few; it is a responsibility to be shared by all. OBJECTIVE: To honor our obligations to so ciety by being an economic, intellectual and social asset to each nation and each com munity in which we operate. All of us should strive to improve the environ ment in which we live. As a corporation oper ating in many different communities throughout the world, we must make su re that each of these communities is better for our presence. This
10 Enterprise: the vital catalyst by Dave Packard, chairman
D Basic to the development of the HP organization has been a belief "An individual with a large measure of in the fundamental importance of individual enterprise within the context enterprise often has a strong influence over of corporate objectives. It takes many forms, all of which come down to a group of people. Enterprise is an essen making a team contribution through individual initiative and creativity. tial ingredient of leadership. People in a Of course, it comes straight from the founders who now are recog group can have a team spirit - a religious nized not only as industrialists but also as spokesmen for and exemplars fervor - patriotism - a group attitude that reinforces the enterprise of the of enterprise as the vital catalyst in economic undertakings. As such, individual. Dave Packard was asked to present the opening address to the Scottish "But enterprise is a most important Council's Seventh International Forum at Aviemore, Scotland late last and dynamic human characteristic when year. His topic was "The place of enterprise in a mixed economy," from it is present in an organization of people which the following general remarks were excerpted: at all levels - not just at the top. The most (continued)
11 enterprise
effective organization of people, whether the case, we should then give some con portunity for reward identified with per a club, a business, a state, or a nation is sideration to the factors that bring out this sonal performance, will develop a high a group of people with intelligence, ability, quality of enterprise in an individual, and degree of enterprise among its people. And and enterprise committed to a common nurture it in a society. the same principles apply to all other goal. "One of these is individual freedom organizations of people, including states "Over the course of history, much of individual liberty. Enterprise is encour and nations. the progress of civilization can be attrib aged when a person is free to develop and "We have many examples of the dy buted to this human trait. The Norsemen use his talents and his energy in the way namic force of individual enter prise who ventured over the seas to land here he thinks best. Regulations and regimen throughout recorded history - a force that in Scotland and later push on to the North tation are the enemies of enterprise, and has spurred men and women to rise above American continent had enterprise, The we can find examples of this in all kinds the call of duty time and time again across men and women who crossed the Atlantic of organizations. the entire face of the world. Without to the hostile coast of America had enter "A soldier can have a certain amount doubt, the success of individual achieve prise. Inventors over the centuries, includ of enterprise, but if it extends to innova ment characterized by this thing we call ing such renowned Scotsmen as James tion, he is likely to find himself in the brig. enterprise is largely responsible for all Watt, Lord Kelvin, and James Clark Max "The 'not invented here' syndrome is of the progress man has made over the well had enterprise, a common experience in the research and centuries. "I do not believe any endeavor of men development laboratory. A scientist or en "Even so, free enterprise somehow has and women which has been a distinctive gineer will always work with more enter not lived up to the expectations of a large contribution to the progress of this world prise on his own project than on one he is portion of the people, even in those areas has been accomplished without that pre directed to do - especially if for any rea where it has been the dominant character cious human characteristic we call enter son he does not think much of the other of the economy. Indeed, a large propor prise. Great Britain and Scotland were fellow's idea. tion of people are living under communis powerful and wealthy countries in past "On a larger scale, the importance of tic or socialistic governments where indi centuries, indeed until World War II, individual freedom in engendering enter· vidual enterprise is either prohibited or mainly because your people had great en prise is demonstrated over and over again suppressed. terprise - at all levels of your society by the comparison between the low effi "Socialism, with its concept that a not just at the top. Japan has become a ciency of collective farming relative to the group of people could get together and wealthy and powerful nation in these last productivity of individual farmers. work efficiently for the common good has three decades not because she has great had a great appeal over the years. But be· natural resources, not because her people Freedom and opportunity cause it lacks the mechanisms to encour are more intelligent, but rather because "Freedom, and the opportunity for age individual enterprise, it can never have an unusually high level of enterprise has personal reward, then, are the key moti the potential of an individual enterprise developed among her people during this vating factors that encourage enterprise system. Religion has made people rise period - and again at all levels - not just in an individual. A company structured to above their personal interests. War, or the at the top. maximize individual freedom, and the op threat to home and family, has made peo "We talk much about the need to trans ple rise above their individual interests. fer wealth to the developing nations. This We have yet, however, to find a way to cannot be done with capital, or education, make people put the interest of their fel or charity of any kind. Real and lasting lowman ahead of the interest of themselves wealth cannot exist there without enter in a whole society for any sustained period. prise. Since in my view this appears to be And I do not believe that we can ever do so. The opportunity for the individual for every individual. must be established and jealously guarded, the opportunity for the individual to benefit personally in proportion to his or. her good \"ork. "There may be some way to manage and direct individual enterprise to maxi mize the welfare of the entire society. We should strive to do this on the assumption that it can be done. But short of that kind
12 of an ideal solution, I am firmly convinced Hewlett·Packard people share in the com maintain the high level of incentive and that the welfare of your country, and of pany's success, which they make possible; enthusiasm among our people there. It is ours, as well as every other country in the to provide job security based on their per becoming increasingly more difficult to free world, will be served best by support· formance; to recognize their individual do so. ing individual enterprise in the private achievements; and to insure the personal "I am, therefore, very much concerned sector - and encouraging the support of satisfaction that comes from a sense of about the future of our company's opera enterprise in the public sector to the ex accomplishment in their work. tion here in Scotland unless something is tent this can be done. "Any organization can develop a clio done soon to restore the opportunity to "If you concur with me that enterprise mate to encourage and nurture enterprise reward our people for lheir outstanding is an important human quality that has by adopting a policy and a philosophy enterprise. I am sure almost every other made, over past centuries, a vast contribu along these lines. It is, as I have said, firm in this country is having similar prob tion to human progress - then I hope you easier in a private enterprise than one in lems and concerns. will also agree that the discouragement the public domain. But I am convinced it "It seems lo me, then, this Seventh and the possible destruction of enterprise can be done in either. International Forum has selected a very would be a disaster of unimaginable con "Our company has a division located important subject for discussion these next sequence. We cannot afford to let that hap in South Queensferry just out of Edin two days. The welfare of my company's pen, and this brings us to the point of our burgh. We have been working hard with activity here in Scotland, and indeed the conference here at Aviemore. What can this group of people over the last ten years welfare of the entire British Common you do in Scotland to revitalize private or so to enable them to make a positive wealth will be determined largely by enterprise in your economy? And related contribution to our company and to your whether the environment and incentives to this all-important issue, what can we country. to encourage individual enterprise are once do in America to prevent the destruction "They have now done so, and this year again reinstated. of private enterprise in our economy? the Hewlett-Packard people in South "There can be no progress in this world Queensferry have been at the top of all of without individual enterprise. We must Equality of opportunity our divisions worldwide. Their growth in find a way to couple this great source of "A basic starting point, I believe, is to business and their level of production have strength with the aspirations and the needs reaffirm our belief in equality of oppor been absolutely outstanding. They have of all of the people." 0 tunity. I would even suggest that an abso developed a number of significant new lutely essential goal of our societies should products in their research and develop be to provide everyone with an equal op· ment laboratories which are marketed portunity to develop his or her abilities, throughout the world. In fact, 80 percent intelligence, creativity, in the optimum of all the equipment produced at HP Ltd. way. And to make sure there are adequate is exported, thus contributing substantially incentives to encourage the development to the U.K. balance of payments. of enterprise in the individual at all levels "Additionally, they recognize the im. in society. porlance of running a profitable organiza "We have worked very hard at this tion, and of following the HP policy of over the years in my company. One of our self-financed growth on a pay-as-you-go most important corporate objectives di basis. And they practice the philosophy I rectly relates to encouraging enterprise have described. among our people. It reads, "To help "Needless lo say, I am very proud of this division. It is an excellent illustration of how individual enterprise can be a tre· mendous motivating force for human endeavor. "However, we have had to work very hard under the restrictive prices and in comes policy of the United Kingdom to
13 The night luck came to Yates City... HP 8030, a cardiotoeograph that does all available methods of fetal monitoring, is reviewed by Kathryn Schaffer. head nurse at Graham Hospital in Yates City. Illinois. According to reports in the Canton Daily Ledger newspaper, the machine has helped doctors save a number of young lives.
supply of oxygenated blood in the pla centa to nurture the child, but in some cases there may be insufficient reserves. The compromise of the baby's supply dur ing labor can result in a Hcompromised" or depressed child. Depending on the de gree of compromise, it may bring about mental retardation, a lifetime spent in in stitutions, or varying degrees of learning disability. This baby most likely would have been stillborn. HThe Caesarian section was necessary to deliver the baby quickly, before the o In Yates City. Illinois. they introduce Dan Walton demonstrate the equipment heart ratc dropped dangerous[y low." young Janet Lynn r...foore as "Lucky" for the night shift nurses. Said Dr. Reinertsen, ''I'm convinced for good reason. The readings, obtained by placing two the baby would not be alive if it were not Because only through a fortunate lightweight transducers on the mother's for the fetal monitor - and Dan." chain of circumstance~ involving an HP abdomen, caused some puzzlement. In A month after the birth of Janet Lynn medical field engineer, HP medical equip effect, they signaled fetal distress due to Moore, HP delivered a new HP 8030, a ment and a conscientious obstetrician was placental insufficiency - a condition not state-of-the-art fetal monitor capable of Janet brought safely and healthfully into detectable in any other way. doing all available methods of fetal moni the world some 18 months ago. "Frankly." said Dr. Reinertsen, ;;some toring. According to Kathryn Shaffer, ob At that time, Dan Walton of HP's of us didn't want to believe the machine. stetrics ward supervisor at Graham Hos Midwest Sales Region had arranged with There \...-as some feeling that we could be pital, it has continued to help save young the hospital's Coleman Clinic to demon overreacting. However, Dan Walton dem lives, and to allay a lot of fears. "For strate and train each shift on the HP fetal onstrated great in-depth knowledge of years," she said, "we've relied solely on monitor, a system capable of electronically what was happening during the fetal man· our ears to listen to an unborn baby's sorting out and measuring the heartratc itoring - what the machme was telling us heartbeat.'· of unborn babies and the labor contrac about the condition of the child and the With electronic equipment, everything tions of the mother. The recording and mother. Late that night we decided to do is much more accurate. "Once you know comparison of these two parameters can an emergency Caesarian section." you've got a problem and you're going indicate how well the baby is tolerating According to reporter Annetta Miller to have to do something to get a live baby, the "insults" of the labor contractions. of the Canton Daily Ledger, the HP sys you do it." It turned OLlt that Mrs. Kern Moore tem had detected "a risk factor that arises She added that other members of a was the only expectant mother available during labor. The uterine contraction mother's family can watch the monitor for the test. She had been having some causes ':l temporary compromise of the and feel a better sense of participation in pains - but in three days, no baby. So she mother's blood supply through the pla the labor process, and thus be reassured. agreed when Dr. Raoul Reinertsen asked centa, the fetus' only source of oxygen Even if the '\'loores happily disagree, Mrs. Moore if she would be willing to help and nutrients. Normally there is a reserve luck should have nothing to do with it. 0
15 "When I was a kid I didn't have any place to go. I used to wish for something - anything -to do." Lloyd Baker, a Aman's home is his playground ... 76-year-old former maintenance foreman at HP's Palo Alto complex, now has plenty to do - giving neighborhood youngsters the chance to play that he never had. The idea for doing this began five years ago when Lloyd was recovering from a series of setbacks following the death of his wife. Why not convert his unused backyard in San Jose into a playground? The old but sturdy barn soon became a playroom for pinball and a pool table. The lawn became a picnic area. The outside became a court for basketball, volleybaH and badminton. As the photo shows, it's a very busy and happy place proof that it's never too latc to help firl a need that others have.
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