What I'd like to telllIP... 3 Four customers suggest ways that HP could do its job better, Who ya gonna call? 7 For millions, customer satisfaction begins with a telephone call. An interview with John Young Page 21 9 HP's president and CEO reflects on 15 years at the helm. A look back with Dean Morton 14 Measure profiles the man who went from marketing trainee to COO, YourThrn 17 Employees share their memories ofJohn Young and Dean Morton. , UP and the five circles .~ 18 HP employees and equipment playa role in the Olympics. - I \ - - • . -' ...' Rising expectations ~ r:, )k;~f. , " 21 Components sales are growing in the $1 billion Japanese market. .')-- ) __ II ~.l I ~ '1.• 1 + 1 = many • , I C" ._..' r1 25 HP Europe takes a 21st-century approach to management. Page 26 Reaching for a star 26 Margarita Fernandez shines as a movie star and employee. ExtraMeasure 29 News from around the HP world. MEASURE Editor; Art Director: Associate editors; Graphic designer; Circulation; Jay Coleman· Annette Yatovitz Comella Bayley Thomas J Brown Tricia Neal Chan Betty Gerard' Measure is published six limes a year tor employees and associates of Hewlett-Packard Company. It is produced by Corporale Communications, Employee Communications Department, Mary Anne Easley. manager.Address correspondence toMeasure, Hewlett-Packard Company, 2000, P.O. Box 10301, Palo Alto, California 94304-1181 US<\ The telephone number is (415) 857-4144 Employees should reportchanges of address 10 ftleir local personnel department. © Copyright1992 by Hewlel1-Packord Company. Material may be reprinted with permission. 'Member, International Association of Business Communicators (IABC). Hewlett-Packard Company is an international manufacturer ofmeasurement and computation products and systems recognized for excellence in quality and support The company's products and services are used in On the cover: A new industry, business, engineering, SCience, medicineand educo1ion in approximately 100 countries HP employs era for HP begins on 90,000 people worldwide and had revenue of $14.5 billion in its 1991 fiscai year. November 1 when Lew Platt (right) replaces John Young. who retires <!} Moosure magozine IS printed on recycled poper as president and CEO. Cover photo by Jack MOVED LATELY? REPORT YOUR CHAr,GE OF ADDll~S5 TO YOUR PERSONNFL cPARTM~N! Carroll. 2 MEASURE Says Champion Products' John Pence, "If you guys can jump through it (the main­ frame marketplace). you can double or triple the size of your company." What I'd like to tell HP.• • How can HP improve? ROCHESTER, New York-By introducing a new line ofhigh­ Just ask a customer. powered, competitively priced minicomputers, HP Ls causing information officers at major companies to reconsider their traditional reliance on costly mainframes. Champion Products, a leading producer ofpremium active wear and athletic apparel, is among the organizations swayed by the attractive combination ofprice and performance. Before HP entered the picture, Champion's Rochester, New York, headquar­ ters was linked to the company's dozen manufacturing facilities SeptrJ1l1wf·(ktoher lllSJ~ 3 ...tell HP through an information system driven LEASANTON, California-ComputerLand is a $3 billion by a Unisys mainframe. company and one ofHewlett-Packard's largest PCs and With the assistance ofa convincing HP sales team, Champion decided the peripherals resellers. UHP is a terrific company," says Ed best solution for its future computing Anderson, the president ofComputerLand. "But it could be even needs was to migrate to an envirorunent better." Here's how: ofnetworked HP minicomputers. "HP has a tremendous window of "We'd like to see HP take the marketing savvy and expertise opportunity in the mainframe market­ that it has demonstrated with its otherproduct lines and apply place," saysJohn Pence, Champion vice them to the HP Vectra PC," Ed says. "Our customers put less president and chief information officel: '1f you guys canjump through it, you value on a PC; they want a cost-reduced PC. The HP Vectra has can double or triple the size ofyour not been pliced competitively." company," Next suggestion: HP has a long, successful record ofsupply­ John is complimentary when he dis­ cusses his relationship with HP, saying ing ComputerLand with a high volume ofpopularproducts. But the quality ofdoing business with the during the last six months, that hasn't been the case with two company is "noticeablyhigher" than products: the HP LaserJet IIIP and the HP DeskJet 500 printers. what he has expetienced with others competing for his business. "Those are really important products for us, and we've got "But ifthere's one thing 1could tell HP," he says, "it would be to work harder to understand the mainframe world. Your average sales person and technical people don't really understand this complex beast ofhaving ma.ior applications alilunning on one box and how to break that down into a more modular environment. "I would like to see more leadership onyour side ofthe equation rather than having us try to figw-e it out." -DavidPrice (David Price is the communications rrw,nagerjorHP's EasternSales Region-Editor) ComputerLand's Ed Anderson tells HP, "Our customers put less value on a PC; they want a cost-reduced PC. The HP Vectra has not been priced competitively." 4 MEASURE purchasing, warehouse and sales people trained to sell them. Now all we need is the product," he says. Finally, Ed says, "we've got to find ways for both ComputerLand and HP to cut out our respective 'touch costs.'" Thuch costs refer to what it costs a com­ pany each time a product is handled or "touched" from the moment it's a.<;,sem­ bled to the point where the end user buys it (The way it works now, HP assembles PCs in basic configurations, packages them and ships them to ComputerLand. Ifa customer orders different configura­ tions than ComputerLand has in stock, the reseller must either unpack and reconfigure PCs on hand, or place a new orderfor the required configuration "YHP needs to continue to advise us on how to use our computer system more effectively," says Hideaki Nishijima, G.M. or Seklsui Chemical Co., LTD. while existing stock remains in the warehouse. Either way, it adds to ComputerLand's cost ofdoing SUKUBA CITY, Japan-To the people of Sekisui business.) Chemical Co., LTD., a house is much more than a home. Th lower touch costs, Computer­ Land's president suggei:lts that HP ship In fact, the futuristic research they conduct resembles PC components, instead ofassembled something more like the Starship Enterprise. products, to ComputerLand. "We have Sekisui's Housing Business Division, just northeast of Tokyo, the capability to assemble those components in whatever configuration designs prefabricated houses. Engineers and researchers at the our customers want, including adding General Housing R&D Institute compile data on construction any third-party solutions, such as techniques that entail both the highest safety standards and the chips, cards orsoftware," Ed says. -Steven Cavallero total comfort offuture home-owners. Machines simulate earthquakes and typhoons, and testing (Steven Cavallero is the Neely Sales rooms-including a meditation room-measure how harmon­ Regicm's seniorcommunications representative.-Editor) ically pleasing the home's interior is. Recently, the institute established SERIAL (System ofEngi­ neering Research and IndustrializationAimed at Linkage), an information system to tie together the stages ofR&D, concept design and production design. Using SERIAL, researchers can retrieve and examine every part and electronic drawing as they design houses. Yokogawa-Hewlett-Packard, HP'sjoint venture in Japan, September-October 1992 5 ...tell HP worked with St'kisui engim'{'rs to (Jt>Si~1 T. LOUIS, Missouri-HewJett-Packard's relationship with the dient-servf'r syst<'I1l, which uSPS t 111' EDS UNIGRAPHICS is so successful that in just four years, HP !:lOOO computer syst(·rn. "We are not professionals in Uwse HP ha.<:; become its No.1 workstation supplier. types of systems, and we didn't kll< IW The relationship has meant more than $50 million annually in if the YHP system could do what business between HP and EDS. The St. Louis-based company is we expected," says Hideaki Nisl1ijima, Sekisui genE'ral manager. "'1'11<' YI IP one ofthe world's leading computer-aided-design/computer­ people were wry en! husiastic in hdping aided-manufacturing suppliers. us achiew our goals." "When HP introduced the HP Apollo 9000 Series 700 work­ In what arC::lS ean YHP improve'? "SERIAL is th(' higW:'st computer.. stations, youjumpcd ahead ofthe competition in graphics system prqjed we've ever done at th(' and processing performance," says Bob Brandenstcin, EDS institutl:'," the G.M. says. 'THP n('('ds to UNIGRAPHICS platform manager. "Performance is a key issue continue to advis<' us (Ill how to use our computer systt'JTl more pffectivdy, and with our automotive and aerospace customers." on what technology YHP has undt'l Bob generally gives HP high marks as a platform supplier, d('velopn)('nt. "( )ur R&D engint'('rs say that t1wy but says that lIP's product-delivery system can he frustrating. also wish YHP's responsp time was "As a value-added reseller, we sell HP hardware and our fa.ster; that's an issup that could be sort wan' to ('ustorners," Bob ('xplains improved. "IIP shIps the h:.mlwille din'ctly to ttll' "Our ship has sailed, We eall rlPVl'1' customers, so a ('oordjnall'd dl'liv('I'j' go back to the harbor, YHP Jl(,l'ds to is important Thai's dil'lklllt hecause continue it.,,; enthusiasm, commitnwnt HP has so many manufacturing plants, and consultmg hdp l( I cnsun' that our W(,'r(' working with lIP to improV(' that." journey togeth('r is a successful 0111'," ]{l'cpntly, Ens (hdn't find out ahout an IIP prICC' reduction until a eustOJnl'r (MeaSUf(' awnk" !lfomof.;o Seki.IJa, (ira/(' pomted out that hc' ('ould blly Ow l'quip­ YHPpublic relatiONS sla[f,./iJl'lwrIwl]! ment fOI k'ss from IlP.