1960 – Watts

01/60

  • COVER PHOTO: HPSA Demo-Lab (mobile lab) in Milan, Italy.
  • Instrument of the Month (H-P Model 185A Sampling Oscilloscope), Bill Terry, 2.
  • Xmas Bonus, $823,658 – All-time High, 10.
  • H-P Recreation during 1959, Jack Weiershauser, 12.
  • ’58-’59 Accident Rate Report, Pete Vogt, 18.
  • Increased Disability Benefits, George Climo, back page.

02/60

  • Instrument of the Month (-hp- Model 344A), John Minck, 2.
  • PHOTO: Hewlett-Packard Company Annual Report 1959, 3.
  • Preparation Underway for H-P Participation in I.R.E., Don Teer, 13.
  • H-P’s College Recruiting Program Again Underway, Barbara Dermeg, 14.

03/60

  • Instrument of the Month (120 AR, 113 AR, 103 AR, 724 AR), Dan Lansdon, 2.
  • PHOTO: Dave Packard with Vice President Nixon at Stanford/Harvard dinner, 4.
  • An Expert Views the Olympics, Bill Terry, 4.
  • Construction Underway at Loveland Site, 5.
  • Hewlett-Packard–Ready for the 60’s, Don Teer, 8.
  • H-P Fabrication Division, Barbara Dermeg, 10.

04/60

  • From Our President’s Desk (Aboard Pan-Am Jet), Dave Packard, 2.
  • En route to Geneva Seminar
  • Competition Strong
  • New -hp- Instruments Well Received
  • NIC Board Meeting Attended by Dave
  • First Aid Training Program Under Way at H-P, Virginia Bour, 5.
  • 230 H-P Instruments Displayed at 1960 IRE, Don Teer, 7.
  • A Department Is Born, Barbara Dermeg, 10.
  • INSERT: Essex House 1960 Hewlett-Packard Sales Meeting

05/60

  • COVER PHOTO: President DeGaulle visits H-P (Additional PHOTOS on p. 2)
  • Hewlett-Packard Greets DeGaulle, Lou Lencioni, 3.
  • HPSA’s European Sales Seminar, Bill Terry, 5.
  • Eldred, Keynote Speaker at Marketing Conference, 9.
  • Electronic Tooling–New H-P Department, Hal Chouinard, 10.
  • Instrument of the Month (411A RF Millivoltmeter), Hans Sorensen, 12.

06/60

  • From Our President’s Desk, Dave Packard, 2.
  • See You at the Picnic!
  • Scholarship Winners Announced, George Climo, 3.
  • DeGaulle PHOTO Contest, 4.
  • DeGaulle Leaves San Francisco (English translation article that appeared in a Swiss newspaper), 5.
  • Solving the European Plug Dilemma, Bill Terry, 7.
  • Hilltop Move Information, 8.
  • Don’t Machine it! Cast It!, Barbara Dermeg, 10.
  • Instrument of the Month (H-P 570A Digital Clock), Bill Terry, 13.
  • An H-P Highlight of 1960, Lou Lencioni, 14.

07/60

  • From Our President’s Desk, Dave Packard, 2.
  • Smooth Move Complimented
  • Ironical Situation
  • Richard Duncan First Refund Recipient Under H-P’s Educational Assistance Program, 6.
  • Instrument of the Month (H-P 456A AC Current Probe), Bill Terry, 7.
  • Hewlett-Packard SA Expands European Operation, Bill Doolittle, 10.
  • 200 Top Speakers Selected for WESCON Tech Program, 15.

08/60

  • Instrument of the Month (H-P 938A/940A series of frequency doubler sets), John Minck, 2.
  • From Our President’s Desk, Dave Packard, 5.
  • Production Level Holds Steady
  • Important Assignments Ahead
  • Picnic Decision
  • Christmas Party grows too big for any HP building, so we’re giving you four hours off to have it offsite
  • Anent Beer Busts
  • ARVA, Hewlett-Packard Combine Efforts for Northwest IRE-ISA Electronics Show, Bill Terry, 6.
  • Expanding Product Line Triggers Constant Need for Additional Management Talent in Sales, Noel Eldred (H-P Vice President for Marketing), 7.
  • - PHOTOS: Dick Reynolds
  • Jack Petrak
  • Dick Cline
  • Bill Terry
  • John Young
  • Jack Nally
  • Hewlett-Packard’s Chem Lab Becomes Production Reality, Barbara Dermeg, 11.
  • Things To Know About H-P (Part I of Series), Ray Wilbur (Personnel Director), 14.
  • H-P’s Program Requires Effective Communications at All Levels
  • Hiring Policy–or Conditions of Employment
  • Changing job assignments to reflect changing business environment

09/60

  • H-P Wins WESCON Industrial Design Award (K382 Attenuator), 2.
  • PHOTO DP with Herbert Hoover and Thomas Pike board member
  • Electronics Management’s Biggest Challenge (summary of Dave Packard’s address to Annual Corporate Luncheon Meeting of the Western Electronic Manufacturers Association), 3.
  • H-P Enjoys Most Successful WESCON, Don Teer, 5.
  • Things To Know About H-P (Part II of Series), Ray Wilbur (Personnel Director), 6.
  • Placements
  • Records
  • Engineer Program
  • Wage and Salary Policy
  • Production Bonus and How It’s Computed
  • Chamber Salutes Noel Porter for his Notable Achievements, 7.
  • Meet Jack Beckett of PAECO, Barbara Dermeg, 10.
  • Are You Ready for Hewlett-Packard Advancement, Lee Seligson, 12.
  • From Our President’s Desk, Dave Packard, 13.
  • WESCON Report
  • Open House, Sunday September 11th
  • Automatic Programming Perfected for Drift Testing 606 and 608’s, 14.

10/60

  • Instrument of the Month (H-P Model 160B Oscilloscope), George Fredrick, 2.
  • From Our President’s Desk, Dave Packard, 2.
  • Colorado Operation Officially Dedicated
  • On the Fall Elections
  • Report on New York ISA Show, Dan Lansdon, 3.
  • Things To Know About H-P (Part III of Series), Ray Wilbur (Personnel Director), 6.
  • Evaluation–Its Procedure and Purpose
  • 1960 Machine Tool Exposition, Norm Bowers, Lyle Loeser, Jack Benson, 7.
  • An H-P Engineer Observes Automobiles Throughout Europe, Bill Girdner, 14.

11/60

  • From Our President’s Desk, Dave Packard, 2.
  • H-P Sales Hit New High
  • Be Sure To Vote Tomorrow
  • Stanford Radar Astronomy Installation Visited by H-P Radio Amateur Club, PHOTO of Stanford radar dish under construction, Bill Hawkins, 4.
  • PHOTO: Marshal Tito passing through U.S. pavilion of International Trade Fair in Yugoslavia, 4.
  • H-P Moves Ahead with Ways and Means of Producing More with Less Effort, Lee Seligson (H-P Training Coordinator), 7.
  • Things To Know About H-P (Part IV of Series), Ray Wilbur (Personnel Director), 8.
  • Vacation Scheduling
  • Sick Leave Policy
  • Hewlett-Packard School Give-Away Program, Carl Anderson, 10.

12/60

  • A Christmas Message from Dave and Bill, 2.
  • All Considered–A Most Successful Year
  • Market–Increasingly Competitive
  • The Russian Threat
  • We Must Meet the Challenge
  • Things To Know About H-P (Part V of Series), Ray Wilbur (Personnel Director), 6.
  • Regarding Leave of Absence
  • Military
  • Jury Duty
  • Death
  • Pregnancy
  • Terminations
  • Rehiring

1960 – HP Journal Index

January/March 1960 v.11 n.5-7

A Versatile New DC-500 MC Oscilloscope with High Sensitivity and Dual Channel Display, by Roderick Carlson. 185A, 187A

High-Speed Effect in Solid-State Diodes Explained with New Oscilloscope, pg 3

Permanent X-Y Recordings of Displayed Signals, pg 7

April/June 1960 v.11 n.8-10

The Effect of u-Circuit Non-Linearity on the Amplitude Stability of RC Oscillators, by Bernard M. Oliver

Utilizing VLF Standard Broadcasts with the -hp- Frequency Divider and Clock, pg 8. 113AR.

[France’s President Charles] De Gaulle Visits -hp- Plant, pg 3

July/August 1960 v.11 n.11-12

A New Clip-on Oscilloscope/Voltmeter Probe for 25ÙÚ – 20 MC Current Measurements, by Charles O. Forge. 456A.

The Value of AC Current Measurements, pg 5

September 1960 v.12 n.1

A New RF Millivoltmeter for Convenient Measurements to 1 Kmc, by Theodore C. Anderson. 411A.

October 1960 v.12 n.2

A Voltage-to-Frequency Converter for Greater Flexibility in Data Handling, by R. A. Andersen. Dymec, Inc., 2210, 2211A, 2211B.

Dymec – An -hp- Service for Special Instrumentation Situations, pg 3

November 1960 v.12 n.3

A New Frequency/Time Standard with 5 x 10-10 Day Stability, by Leonard S. Cutler. 103AR.

December 1960 v.12 n.4

Improved Sweep Frequency Techniques for Broadband Microwave Testing, by Elmer Lorence, J. K. Hunton

1960 – Packard Speeches

Box 2, Folder 36 – General Speeches

 

February 15, 1960, Future of Industry in Palo Alto, Rotary Club, Palo Alto, CA

 

2/15/60, Typewritten copy of speech on the Future of Industry in Palo Alto.

Packard’s first point is that industry is creative and must have creative people to succeed. And creative people must have an attractive environment to attract them to come and stay. Packard names several companies that have attractive facilities.

Packard points to the environment of the Stanford Industrial park as an important factor in attracting industry like Lockheed, Varian and HP.

 

Packard talks of the importance of research to industry. “Industry is spending nearly ten times as much on research and development as it was fifteen years ago. And he points to the proximity of Stanford nearby as a special benefit for local industries. “And so, for industry in general, the presence of a good environment for creative people – and special opportunity to enhance a research and development program – are both strong attractions. The Palo Alto-Stanford area has both and therefore has a unique capability of attracting and developing the best in industry.

 

Packard asks “Why should Palo alto want industry?” One reason is they pay taxes,  he says. “Were it not for the industrial and commercial developments on the Stanford lands – the Palo Alto schools would be in serious financial trouble today.” Packard says he cannot refrain from citing some figures for HP: “We are paying over a quarter of a million dollars a year in taxes, most of which goes to the schools. We are also paying our employees twelve million dollars a year in wages and salaries and they pay taxes, too, and patronize your merchants, etc….” And, Packard adds,  “Our company in the last three years has contributed one and one half times as many dollars to local charities as it has paid in taxes to Palo Alto.”

Packard feels “the companies in the Stanford-Palo Alto area have set an outstanding example in being good community citizens.” And he asks “What, then, is the major attraction for industry in the Palo alto Area? For if we conclude that companies have contributed to the community and in fact should be classed among your best citizens, how do you attract more such good citizens.?”

 

Packard feels “It is easy to demonstrate that Stanford University is far and away the most important factor in attracting industry to Palo alto.” and he names several companies which were all founded by Stanford graduates. “They have been successful largely because of the ideas which came and continue to come directly from the University.” And he says “These industries are of great value to Stanford as well, the rent they pay for their leases being in many ways the least important factor. The presence of these industries has attracted a number of distinguished men to the faculty in recent years – it has provided a convenient association for student and faculty alike with the practical engineering problems of industry to round out their academic work at Stanford.”

 

Packard tell more of how industry-university relationships work. One way is the honors-cooperative program whereby students can work and also get time off to pursue graduate degrees. And professors work at HP as consultants and also have time to teach. Also,” many people on our staff (at HP) give lectures at Stanford and provide the students with the benefit of practical experience in their field.”

 

Packard tells of the “grants to the University made by industry in recognition of the help they have rendered. These grants are not always in the quid pro quo class. Many – an increasing number – are unrestricted on the theory that the programs at Stanford in the humanities and other areas may in the long run be as important as those in the physical sciences.” Packard tell of the growing industry-university association in the area of chemistry, biology and medicine., and predicts an association in these areas similar to that of electronics.

 

Packard says the Board of Trustees sees further expansion of the Industrial Park. “The attractive environment of the Stanford lands combined with the close association with Stanford University makes the Stanford Industrial Park the most interesting opportunity in the United States for the kind of industry Palo Alto should have…. This makes a pattern which clearly meets the test of good government – the most food for the largest number of people.”

 

2/15/60, Several sheets of supporting figures on industry contributions, taxes, employment etc.

 

 

 

Box 2, Folder 37 – General Speeches

 

February 25, 1960, Management Looks at the Accountant, National Association of Accountants, No place given.

 

2/25/60, Two pages of handwritten notes by Packard, rather cryptic, on the subject           “Management Looks at the Accountant”

“Management

Make Plan of Action

Implement Plan

Evaluate performance

Historical role of Accounting  is (   ?    ) Purpose has been

to evaluate performance.

Balance Sheet

P & L Statement

Absolute measure – comparative measure”…

“Accountant need to think how best to present data so Manager can really understand what is going on.

 

More need for imagination. Growth potential – % Annual Growth = % profit X turnover.

 

The Accuracy dilemma – Bookkeeping – auditing function has need for accuracy.

 

The decision making problem in management.

 

We evaluate so we can see how good are the decisions we have made and so we can continually modify these decisions to improve performance. We need data fast and complete but not to (sic) high accuracy.

 

The planning function of management – statistical extrapolation. – Analysis New techniques – computer – mathematical forms. Centralized data processing”

 

 

 

Box 2, Folder 38 – General Speeches

 

March 2, 1960, Engineering Scholarship Fund, Hertz FoundationNo place given

3/2/60, Typewritten speech by David Packard, for Hertz Foundation

Packard speaks first of his pleasure in welcoming Mr. Hertz and being able to express “appreciation to him and his foundation for establishing this pilot plan of his engineering scholarship fund in the Bay Area.”

 

Packard tells of his early decision in high school to pursue a career in engineering, and tells Mr. Hertz  “that you are doing a great service for the young men who will be supported by your scholarship program in encouraging them to make an early decision on an engineering career.”

 

Packard feels this program will also be an important contribution to our nation, and he tells of his recent trip to Russia. He tells of the strong curriculum there where the youngsters study years of English, math, physics, chemistry. However, he says “I can assure you that our good high schools are better than their good secondary schools. I believe that they are better for a very important reason. In our schools capable teachers and administrators work in an atmosphere of freedom, and under our system they do a better job in education than do the teachers and administrators under the tight bureaucratic control of the Soviet Government.

Packard says “while we have been falling behind terms of engineers produced I am confident that our free, private enterprise system is already responding to the challenge and we will succeed in this task.”

 

“I do not wish to imply that the job is yet done. We do need many more engineers in our schools. In this regard I would like to say a word or two about the importance of engineering to our national defense effort…..Engineering may very well be the most important profession of all in determining the survival of our country. For the decision is going to be made in the final analysis on the technical competence of America in relation to the technical competence of Russia. We need skilled diplomats, we need leaders with the broadest and finest training that can be had–But unless we have the engineers who are able to translate our scientific advances into items of hardware with greater proficiency than our Soviet adversaries, and unless they can do this over the long term, sooner or later our diplomats, our leaders, our entire country will be dealing from a position of weakness which is utterly hopeless and we will have lost the battle.”

Packard speaks about the engineering as a personal career. “Engineering provides great opportunity for individual initiative and individual contribution. It provides opportunities for constructive teamwork as well, for those who prefer it. the history of our country from the beginning to the twentieth century was the story of the individual man and woman, the pioneers, and their conflict in extending and developing the great land frontiers of the nation. The history of America in the twentieth century is being written. Its greatest chapters will be the story of the engineers and their efforts to conquer and exploit the frontiers of science and technology.”

 

He closes with “Mr. Hertz you are doing our country a great service in establishing this Engineering Scholarship foundation. I feel confident that the young men and young women whom you will reward and encourage through your efforts will fully justify your great love of our country.”

 

Box 2, Folder 39 – General Speeches

 

March 8, 1960, Supervisory Development Program, HP, Palo Alto

3/8/60, Copy of Typewritten speech by Packard to group of supervisors in training.

Packard’s opening statement sets the tone for his talk: “I’m glad to have this opportunity to get together with you and discuss how each of us can do our job more efficiently, because as the company grows I think this is going to become crucial in determining whether we are able to continue to grow and keep an efficient organization and maintain the character of our company which we think is important.”

 

Packard says he wants to “discuss why a company exists in the first place.” “I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being. As we investigate this, we inevitably come to the conclusion that a group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively which they could not accomplish separately. They are able to do something worthwhile – they make a contribution to society (a phrase which sounds trite but is fundamental). ….You can look around and still see people who are interested in money and nothing else, but the underlying drives come largely from a desire to do something else – to make a product – to give a service – generally to do something which is of value.”

 

Progressing to the question as to why HP exists Packard says, “I think it is obvious that we started this company because bill and I, …felt that we were able to design and make instruments which were not as yet available. …Our contribution is really measured by the instruments each of you has helped to make – the new instruments engineering has designed to help people make measurements more efficiently, more accurately, more conveniently, less expensively than could have been done otherwise. So, in the last analysis, the reason for our existence and the measure of our success is how well we are able to make our product.”

 

Packard tells the group that management has made some studies on how well HP is doing in the marketplace and concluded that “where we are making instruments, we are supplying about 1/3 of the country’s total requirements….Packard tells of visits to customer plants find “our instruments are being used in very important work; the advancement of science, defense of our country and many other areas.”

 

“How does the individual person fit into this picture? We have looked at the company and found it exists to make a contribution – not just to make money. I think we can say the same about the people in the company. The individual words, partly to make money, of course, but we should also realize that the individual who is doing a worthwhile job is working  because he feels he is accomplishing something worthwhile….I want to emphasize then that people work to make a contribution and they do this best when they have a real objective when they know what they are trying to achieve and are able to use their own capabilities to the greatest extent. This is a basic philosophy which we have discussed before – Management by Objective as compared to Management by Control.”

 

Looking at specific objectives Packard says, “The first objective is to continue in the field of electronic instruments. We don’t plan to go into other areas, at least in the foreseeable future. …So our instruments are used in three general areas; R&D, Production and field Maintenance.”

 

“The other objective which is complementary to this and equally important is to try to make everything we do worthwhile. We want to do our best when we take on a job. He gives some examples of creative instruments over the last year. “They give people who buy them methods of making measurements they could not make before those instruments were available.”

 

Turning to another objective Packard says that “creative design alone is not enough and never will be. In order to make these into useful devices, there must by meticulous attention to detail. …Attention to detail is as important in manufacturing as it is in engineering.”

 

“Selling can be analyzed the same way. We are anxious to find new approaches to selling, but again – detail is important. We certainly are not anxious to sell a customer something he does not want, nor need. …Also, we ant to be sure that when the instrument is delivered, it performs the function the customer wanted.”

 

Financial responsibility is equally important, however different in nature. It is essentially a service function to see we generate the resources which make it possible for us all to do our job.”

 

Packard continues with another area objective: “Now Bill and I feel that our company has a responsibility to our employees. We are not interested only in making a better product. We feel that in asking you people to work for us, we in turn have an obligation. This is an important point and one which we ask each of you to relay to all the employees. Our first obligation, which is self-evident from my previous remarks, is to let people know they are doing something worthwhile. We must provide a means of letting our employees know they have done a good job. You as supervisors must convey this to your groups. don’t just give orders. Provide the opportunity for your people to do something important. Encourage them”

 

“Over the years we have developed the policy that it is important for the supervisor to thoroughly know and understand the work of his group….I don’t see how a person can even understand what proper standards are and what performance is required unless he does understand in some detail the very specific nature of the work he is trying to supervise….I want  emphasized you can supervise best when you know a great deal about the work you are supervising and when you know the techniques of supervision as well.”

 

Looking at other aspects of supervisory work Packard says, “As supervisors you will be expected to set high standards of behavior. …Tolerance is tremendously significant….You must have understanding – understanding of the little things that affect people. You must have a sense of fairness, and you must know what it is reasonable to expect of your people. You have a good set of standards for your group but you must maintain these standards with fairness and understanding.”

 

On job continuity Packard says, “We have always considered that we have a responsibility to our employees to plan our work so we can assure job continuity. We do not intend to have a “Hire _’em and fire _’em” operation. Bill and I do not feel this is the best way for a company like ours to operate. We have very rigid requirements of technical competence to maintain and rigid requirements in the quality of our equipment. This requires that we have and keep good people at all times. So we feel it is our responsibility to provide opportunity and job security to the best of our ability.”

 

Looking beyond the immediate company Packard looks at HP’s responsibility to the community at large. Those things which the institutions in our community provide, the general sense of moral values, the general character of the people that come from the schools, the churches and other institutions; these are things which we accept and are extremely important in the operation of an organization like this. …If we consider these matters more seriously, we realize that if these things did not exist, it would have a serious effect on our ability to do a job. So it follows that we do have a responsibility as a company, and as individuals, to help support these activities. You all know that Hewlett-Packard contributes as a company to many of these institutions and we encourage our people to take part – without defining who should do what – but leaving this to free choice.”

 

“Last of all, I want to say that I have mentioned our primary objectives but none of these can be accomplished unless the company makes a profit. Profit is the measure of our contribution to our customers – it is a measure of what our customers are willing to pay us over and above the actual cost of an instrument. …So profit is the measure of how well we work together. It is really the final measure because, if we cannot do these things so the customer will pay us, our work is futile.”

 

“In addition, the margin we have – what is left over after paying for the material, labor, overhead and so on – is the source of our capital for growth. New buildings and facilities and better equipment generally strengthen our position to do a better job.”

 

Our objectives are tremendously vital and, it is your job to help us translate them to all of our employees.”

 

Box 2, Folder 40 – General Speeches

 

March 19, 1960, HP’s Business Outlook for the Next Ten Years, Sales Meeting , New York

 

3/19/60, Typewritten (with some handwritten notes by Packard) outline of a talk by Dave Packard looking at prospects for HP over the next ten years.

 

Packard tell his audience the purpose of the talk is to review “some of the long-range planning done by HP about a month ago to try to define how our company might grow over the next decade.” He starts by reviewing 1959 operations.

 

Packard says 1959 was an “excellent ” year, both from the stanPackardoint of sales as well as for new products introduced. He shows a slide which indicated the “Largest increase in sales of any year”, and the “Largest new product increment of any year.” From this data Packard concludes “…we are not at our opportunity ceiling”.

 

Another slide is titled “HP and Subsidiaries Map” Packard says this slide shows the “major changes in organization during 1959 have added a whole new dimension to problems that rapid growth creates. And he adds that, as a result, HP top management met to see “how we can move to meet the challenges of this growth.”

 

Packard reviews the topics discussed at this meeting – the first being the economic outlook for 1960. He says data from the National Planning Association shows GNP to be up 60% by 1970, population up by 21%, and per capita disposable income up by 39%.

 

Forecasts of total market growth are up 2.1 times with a trend toward less dependence on defense and government spending. With the favorable market outlook, Packard looks at HP’s market position by product group:

 

Packard says the total market for instruments in 1959 was $300M and that HP competed in one half of this; and that HP has about 38% of the business where they compete. He concludes that “we have lots of “product room ” to grow.”

 

Packard looks next at the demands this sales growth will place on the factory organization. He sees a tremendous demand for people but “more particularly, for engineers and supervisors – just the kind of population studies show to be in critical supply…” He sees this as “the most significant problem in future.”

 

Packard turns next to a plant forecast. He sees a need for “12 new plants of about 100K square feet each over the next ten years.” The total capital cost may be $50M, with inventory and A/R adding another $40M. “Yet total profits over period, if we continue to do our job, will more than adequately cover this ambitious program.”

 

Packard summarizes the conclusion of top management on opportunities for growth over the next ten years:

 

1. “Markets are promising

 

2. Financing can be generated internally

 

3. Room for new ideas and products in their market area

 

4. People are the key to continued growth

 

5. Future looks bright but to a large extent our degree of success will be                   up to you.”

 

 

 

Box 2, Folder 41 – General Speeches

 

April 26, 1960, Planning in Defense Industries, AMA, San Francisco, CA

 

4/26/1960, Handwritten notes  by David Packard for speech.

 

Packard first  speaks of the “special conditions of defense industries.” He says that long range planning very important – war plans “have seldom been realistic, but there has been time to reorganize in the past.” Packard says the next war will be won by the side with the best long range planning.

“Above all long range planning must be closely related to the basic company objectives – You must know where you want to go before you can orderly plan how to get there. ….Long range planning should have as its objective the development of your company to do a better job in the future than you are doing today – not just to get business – not just to stay alive.”

 

Packard looks at the problem of knowing what the military market will be.

“a. Look at overall data – GNP, military spending estimates…..

b. Trends in overall marketing directions….

c. Detail trends in your special field…. ”

 

“”For long range planning value data must be collected & organized – and made available to people at various levels”

 

Looking at the unique problems of long range planning in defense industries Packard discusses:

 

a. The difficulty of  evaluating long range trends in military techniques

b. Rapid technological changes because of heavy R & D expenditures.

c. Weapons systems are large and complex.

d. Often no prior experience to rely on

e. It is difficult for one company to evaluate its position in the market.

Some of the problems in making long range forecasts:

“1. Technological change

2. Changing climate of defense and war.

3. Utilization of military goods or know how from military work for civilian products….”

Packard says the “Most important question regarding long range planning in defense industries is will there be total disarmament in the foreseeable future. If the answer is “yes” then little to do except to convert to civilian markets. If answer no then plan for continued defense business.”

 

4/26/60, Earlier draft of above talk, in Packard’s handwriting.

Box 2, Folder 42 – General Speeches

June 7, 1960, The Responsibility of Business to Society, AMA, New York

 

6/7/1960, Typewritten speech on above subject given by Dave Packard in an AMA management course.

 

Packard opens the discussion on the subject by suggesting that many in the audience may wonder why we should spend time talking about it at all, and he invites them to take a “little time on the general problem.”

 

Packard raises the proposition that  “As one moves along to responsibility for the management of larger nits it becomes more evident that the management profession includes more than the summation of the individual management skills, that management involves the entire sphere of influence of the business.”

 

He describes the importance that employees attach to their jobs: “These people spend more of their waking hours in their job than in any other single activity. How they think, how they vote, what they tell their friends, their social attitude in every detail is influenced by what goes on at the job. Packard feels management has failed to understand this and , as a result, “employee attitudes have been influenced far too much by unions and by other groups of  people in the community.”

 

Business  institutions…are among the most important institutions or groupings of people in the nation. They produce much of the basic wealth, provide income for a majority of the people; they are the source of our military strength and in many ways our nation is strong and healthy when the business organizations are strong and healthy.”

 

Packard points out that the environment in which business exists, have a large influence on the success of a business.  “This environment is continually changing under pressure from many sources, pressures generated by the people, pressures of other organizations and groups of people. Management is incredibly irresponsible to assume a hands-off attitude and hope that these molding forces of a changing society will somehow automatically develop a better environment for his business. I think management has been incredibly irresponsible in the past to refuse to accept its proper responsibility to society at large. As a result, Union power has grown and has in many ways generated an environment hostile no only to healthy development of business but also inimical to the welfare of the country as a whole. Government control of business has grown and again it has generated an environment often hostile to business management.”

 

Packard feels that “…these trends are not the result of the perversity of Union officials or of Government people….We are simply experiencing the result of management’s failure in the past to recognize this responsibility to use its power wisely. the hour is late but I believe we are becoming aware of the situation in time.”

 

Packard quotes some enlightened managers or observers of business: “Ralph Cordiner of General Electric expects his management people to “manage their business in the best interests of all concerned.. Meaning customers, shareholders, employees, suppliers, retailers and others. Another is Peter Drucker, the author, who proposed that management is a “central social function in society and economy”.  And Drucker again: “No policy is likely to benefit business itself unless it also benefits society”.

 

Packard moves from these concepts to specific steps management can take if it wants to act on “the proposition that business is responsible to society at large.” “It seems to me one of the important actions which can be taken by management to assure that day-to-day decisions and actions will reflect these social responsibilities is to state some of them in the company creed or company objectives. I advocate strongly the basic philosophy of Management by Objective for I believe if the management team has generally accepted common objectives each member of the team can be left to solve his own problems with assurance his solution will be positive and implement the progress of the entire company.”

 

Packard suggests four objectives:

 

1.”Our company is in business to make a contribution to society.

2. “It is our responsibility to recognize the dignity and personal worth of every person we employ–and that we have the responsibility to include opportunities for our employees to share in the company’s success which they help make possible.

3. “The success of our company is to a large degree the result of the environment in which we operate. such freedom as we have comes from our system of government. Many of the ideas we use in our day-to-day work have come about because the frontiers of knowledge have been pushed back by our great universities. Our families, our churches and our schools provide the intellectual and moral training on which we rely every day and never five the matter a second thought. We must support these great institutions in jour free society with all the strength at our command if we wish to preserve a favorable environment for our management work

 

4. “Profit is the proper measure of the contribution we have made to society. To produce a profit is not an end and aim in itself but to produce a profit provides the means by which we can accomplish all our other objectives. Profit is the proper measure of the value our company has added in designing and making its products.”

 

Packard goes on to explain how, at HP, they have encouraged management people to take an active part in community affairs; from Boy Scouts, Jr. Chamber of Commerce and school committees, to Mayor of the city, President of the School Board, Chairman of the Hospital Board, Head of the Community Chest, and others.

 

Financial contributions is a problem businesses face. “I would start with the position that a company has the responsibility to support a number of charitable institutions and in general the support should be to those activities and institutions which have a significant effect on the environment in which the company operates. To put it in plain English you are on safe ground if you ask yourself is this contribution for something that is really important for my company.”

 

It should be obvious to all that publicly supported education deserves and needs no charitable support from business. I would make this one exception–Contributions of equipment or special help in special areas to public schools and state supported colleges and universities may be justified but generally only on a basis of very special interest.”

 

“Business managers , however, should take an active interest in legislation, local and state, establishing levels of tax support for publicly supported education. Your company has to help pay the bill. Your company has a real interest in the quality of education in the community or at the colleges and universities from which it may draw its people.”

 

“Private business has a very special reason to be interested in privately supported and independent colleges and universities. these institutions are a part of our free enterprise system, they provide much of the leadership for all education–They can survive and maintain their positions of leadership only with the support of all segments of the society in which they exist.” And Packard suggests such specific support as, R & D, scholarships/fellowships, direct grants.

 

Packard goes to the sometimes vexing question of managerial participation in politics. “The practice in the past has been in general to refrain from political participation on the theory that a manager’s job was to run his business and what does politics have to do with this. The fact that Union Political activity has grown in scope and magnitude with leaps and bounds and the fact that there has been a trend of anti-business legislation, or at least legislation not especially favorable to business, has caused many management people to reconsider this whole problem.”

 

It seems to me that it is becoming more generally accepted that management should take a more active part in politics and there are a few ground rules we might consider.

 

“1. Our democracy is predicated on an educated  public. Voters who understand the issues they are voting on. Here management people can make an important contribution to help keep their employees informed and interested on the vital issues in the political area which affect the business climate.

 

“2. Management can encourage employees to take an active part in local, state and national politics–encourage this by indicating to employees this is a desirable thing to do and by allowing people some support in time allowances, etc.

 

“3. Except on issues which clearly and precisely affect the business environment of the company, as a company should not take a partisan position on issues nor should the company as a company take a position on a candidate.

 

“4. To have any effect the interest of management in politics should be a continuing year-round effort. Not much is likely to be accomplished by an effort for a few weeks before an election now and then.”

 

Packard names some  “other areas where management can and should participate in recognition of its responsibility to society. One of these is participation in some of the activities which are directed toward common planning for the long range national interest. If it is important for us to have in this country a “National Policy of Economic Growth” this must be an effort of private businessmen.”

 

“It seems to me then that managers should recognize that business does have a very large responsibility to society. I think by recognizing this fact, placing it squarely before your management team so it is one of their important guiding objectives, you and your management team can do a better job in guiding and developing your own business and at the same time you can make an important contribution to the preservation of and the strengthening of an entire Free enterprise System.”

 

6/7/60, Typewritten “Notes on The Responsibility of Management to Society”. A brief summary of Packard’s talk above.

6/7/60, Several 5″x8″ sheets each with a topic for discussion. Apparently made up as the course.

6/7/60, Typed outline of the AMA Management course.

 

Box 2, Folder 43 – General Speeches

 

August 24, 1960, Electronics Management’s Biggest Challenge, WEMA, Los Angeles, CA

 

8/24/60, Printed copy of David Packard’s speech.

Packard reviews the “troubled times” around the world: Russia posturing, a pro-Communist Castro in Cuba, the people of Africa straining against their traditional bonds. “These problems must be of concern to every thinking American and I know of no more capable, thinking group of Americans than can be found in the electronics industry.”

 

Reviewing some of the contributions made by the electronics industry which were crucial to winning World War II,  Packard mentions Radar, Sonar, the proximity fuse. Today, the strength of the military is aided by reliable communications, precise navigation, complex data handling and analysis and control systems. “The hope held by many individuals that our industry can and should become less dependent on military work is sheer wishful thinking that borders on irresponsibility. I will be the continuing task of the electronic industry to add to our military strength for many years ahead but I think there is more we can and should so.”

 

Helping to develop a more realistic understanding of the problems we face is one way. Packard sees wishful thinking as all too characteristic of American thinking – isolationism after World War I and II, a search for some simple formula to make problems disappear. “In these troubled times we as a nation have been fatefully unrealistic on the three most important issues..

 

“First – We have failed to understand the true nature of communism and its chief advocate, Russia. We do not properly evaluate her strengths and her weaknesses and we won’t believe her intentions.

 

“Second – We have failed to fully appreciate and take advantage of our own strengths and capabilities, both our military capability and the importance of our own traditions and ideas and the good will they generate.

 

“Third – We do not seem to understand the extent or importance of the growing tide of independence and economic development occurring among  the majority of the peoples of the world. These pressures are so great and so widespread that they are bound to influence the course of history for centuries in the future and they will not be stopped or diverted by transitory remedies nor are they likely to be much influences by other current problems. I do not know that our industry can or will have much to do with these great underlying pressures but as to our ability to meet the Russian problem and as to setting an example of true leadership for the world to see, I believe we can have a part.”

Packard takes the first issue – Russia and tells of his trip there a year previously. He talks of the lack of  highways, apartments with no outlets for electric appliances, few automobiles or trucks. He says “I did not see one single electronic device in Russia which represented an advance over what we have in this country….”He tells of visiting Russian schools and a fourth year physics class where not a single student knew Ohm’s law.

 

Packard concludes the Russians are “…masters at showmanship and facade…”

“I am sure we in this country do not yet understand the true nature of Russia and communism. We overestimate her strength and perhaps misjudge here weakness.”

 

“If we have failed to understand and have underestimated the nature of our chief adversary, I think also we have failed to understand the great strength, both physical and moral, which is America. In this regard, I think it is useful to review some of the characteristics of our own industry which have given it strength and which make it an outstanding example of the operation of our free enterprise system.”

 

Packard describes his tour through the exhibits at WESCON and notes the many new products that were developed by very small firms – an example of the dynamic free enterprise system at work. He feels that the free exchange of ideas “has been an important factor in the management success of many of the firms here this week.”

 

“Being inhabited by young, well-trained, enthusiastic and ambitious people, the electronics industry holds examples of the best thinking in professional management and evidence of the highest ethics in business practice. We not only provide employment in our industry for about two million men and women, but we provide the best of jobs and working conditions for them We understand, I think quite fully, that people are more important than money in the electronic business.”

 

Packard feels preserving these important strengths is a serious problem. He speaks of the “growing trend toward mergers and acquisitions  – spurred by the attraction of the exorbitant price-to-earnings rations which the investment community has generated out of their enthusiasm for our performance. There is no evidence …to indicate our industry is any stronger as a result of these mergers and acquisitions.”

 

Packard feels “we must as an industry resist the pressures of governmental control with all our might. He recognizes this is difficult when the industry depends on government for such a large portion of its business. “It should be abundantly clear, however, that arbitrary rules generated by governmental bureaucracy are not necessarily going to bring about better reliability in our products not progress in any other area of our affairs. If we follow the lead of those in government who say that it is more important to limit profits than it is to produce an economical product of highest quality, we will find ourselves heading straight down the socialist road to the camp of communism.”

 

Packard turns to education and states that “We must put more effort into improving the educational system in this country. …Our industry derives its great strength from the large numbers of capable, highly educated people we employ. We must give commensurate support to the source of this strength.”

 

In this election year, Packard says we should encourage people  to learn about the issues and candidates and to select people who understand that our country cannot be strengthened by spreading the wealth, but only by enabling each person to do a better and more efficient job in his own work.

 

During the two decades that the United States has held a position of leadership in the world, this leadership has come not from aggressive action, nor at the expense of people, but as a result of the basic strengths which have been generated within our unique system of freedom and democracy….In these same two decades our electronic industry has grown from a small, insignificant factor in our economy to one of the greatest industries of our nation, and we have had a very important part in helping our country achieve this world leadership.”

 

Packard asks the question “Will history record that the American dream of equality of opportunity, of justice for all and of the supreme importance of the individual has been permanently established for all future mankind”

 

And he answers it saying:  “This question must be answered in the right way by each of us as individuals. It must be the conviction of the majority of all the people. We must give the right answer–Nothing can be more important.”

 

8/1/60, Copy of  invitation to the WEMA luncheon to hear Packard’s talk.

8/24/60, Printed copy of above speech in pamphlet form.

8/24/60, Typewritten summary of this speech

Undated, typewritten letter from Ray Wilbur, Personnel Director, to all employees of HP sending them a copy of the speech.

July/August, Issue of the WEMA Westerner publication containing an article about Packard’s forthcoming talk.

August, Clipping from WESCON NEWS telling of Packard’s forthcoming talk.

8/5/60, Clipping from Los Angeles Times newspaper telling of Packard’s forthcoming speech.

8/24/60, Clipping from Palo Alto Times newspaper,  telling of  Packard’s having received the “Western Electronic Medal of Achievement”  at WEMA luncheon where he was principal speaker.

Undated, Printed note of congratulations from Manpower Inc. attaching newspaper clipping covering award presentation.

 

8/25/60, Letter to Packard from Thomas B. Drummond of  Kidder, Peabody & Company requesting a copy of the speech.

8/25/60, Newspaper clipping from Electronic News covering WEMA speech.

8/25/60, Letter to Packard from Paul E. Hoover Congratulation Packard on award.

 

8/25/60, Letter to Packard from President J. E. Wallace Sterling, of Stanford congratulations Packard on the award.

8/26/60, Letter to Packard from Tully C. Knoles of Palo Alto Chamber of Commerce offering congratulations on the award.

 

8/26/60, Letter to Packard from Charles J. Marsh of Stevenson, Jordan & Harrison, Inc. offering congratulations on the award and requesting a copy of the speech.

September, 1960, Two pages from Hughes, Engineering Division publication covering

Packard’s speech.

9/7/60, Letter to Packard from S. H. Bellue of Osborne Electronic Sales Corp. saying that he is sending to radios to Packard as they discussed.

9/9/60, Letter to Packard from Ernest C. Arbuckle of Stanford, offering congratulations on award. Packard has written a note on the letter telling his secretary to send Arbuckle a copy of the talk.

10/5/60, Letter to Packard from John T. Hill of  j. t. hill company, asking for 100 reprints of Packard’s speech to distribute to his employees. A penciled note on the letter says “sent 10/7″

10/4/60, Letter to Packard from M. R. Lynn, Manager Fabrication Department, Ampex Data Products, saying he received a copy of Packard_s speech from his management. H says he is a newcomer to the electronics industry and he is proud to know that there are leaders who know the broad picture.

10/4/60, Letter to Packard from Carl W. Lawrence of  radio station KGEI in Belmont, CA. He congratulates Packard on his speech and encloses the script of a program their is beaming to Latin America discussing the threat from communism.

10/10/60, copy of letter from Packard to  Carl Lawrence saying he had read the script and that he is sure they are doing an important job with these programs.

9/27/60, Letter to Packard from R. H. Owens of Hughes Aircraft Company, congratulating Packard on the speech and enclosing a copy of a report he had sent to his management discussing the threat of communism.

10/10/60, Copy of a letter from Packard to R. H. Owens at Hughes Aircraft thanking him for his letter of September 27 and adding that he would enjoy discussing the subject further with Mr. Owens at a mutually satisfactory time.

 

10/10/60, Letter to Packard from Richard M. Leonard of the Law Offices of Leonard & Dole telling Packard he admires his “good sense and clarity of statement”.

10/20/60, Letter to Packard from Charles Davis office manager at Electro Scientific Industries Inc. enclosing an article describing a TV program sponsored by Bell and Howell.

10/11/60, Letter to Packard from James C. Skinner, President Thomas & Skinner, Inc. requesting permission to quote a statement in Packard’s speech concerning the need for companies to support private colleges and universities, and requesting additional copies of the talk.

10/24/60, Copy of letter from Packard to James C. Skinner sending additional copies of the talk and giving permission to use the quote as he requested.

 

 

 

Box 2, Folder 44 – General Speeches

 

No Date 1960, The Dimensions of the Executive Job, No Place Listed

 

Outline of talk handwritten by Packard

1. The Executive – The Administrator

The Manager – Management

Management – Getting things done through people.

2. History

Management, Administrator came early – Mesopotamia, China, Rome

Highly Authoritarian

Religion

Military

Roman Guilds

3. Beginnings of Modern Management

Frederick W. Taylor

Systematic approach

Scientific Management

Organization & Control

Classifications

1. Technical – production

2. Commercial – selling

3. Financial – use of capital

4. Security – protection of assets

5. Accounting – stock taking, costing

6. Managerial – planning, organizing, control

 

These concepts are the basis for most management today.

In recent years there has been a change, a broader view of management.

 

What are the objectives of management

1. To make a profit for owners.

To meet plan and budget directed from higher authority.

2. To make the activity or organization best serve society.

1. To make a contribution as an organization.

2. To serve the balanced interest of all parties involved -Owners                              Customers, employees, and public at large

Management is becoming, and should become, a profession.

Profession

1. Practitioners who are free and responsible and who establish standards of performance through personal integrity, dedication and courage.

2. Practitioners who are primarily dedicated to serving fellow man. g                       generally requires years of learning and continual learning.

The elements of management

1. Planning

Objectives

Policies

Procedures

Schedules, budgets

2. Organizing

Grouping of work

Delegation of work

3. Coordinating

Balancing

Integrating

4. Motivating

Communication – understanding

Inspiring – generating enthusiasm

Teaching and coaching

Participation

Appraisal

5. Controlling

Setting standards of performance

Evaluation of performance

Feedback of performance to all people

 

The Concept of Responsibility and Authority

Responsibility

You have responsibility when you know what is expected of you by your                         superiors.

You delegate responsibility when your subordinates know what is expected                       of them.

Planning – What are the objectives

Communications – Does the other person really understand.

Delegation in detail

Delegation by objective

Only when everyone on the management team understands                          the basic and overall objectives of the organization can he                             fully discharge his responsibility.

Areas of responsibility are commonly defined but always overlap – Teamwork back up the line.

 

Authority

Authority by status – religion, slave, military

Authority by law or regulation

Authority by knowledge or respect

An organization is developed to its full capacity only when each member is using his full capability in cooperation with every other member toward the common objectives.

 

Some general observations

The specialist vs. the manager

When a man does a good job of management he does it only because he stops being a specialist and becomes a manager.

There is a vast body of knowledge available -attitudes, principles, skills      and tools.

There is no more reason to expect men in management to become prepared and to keep informed without organized and methodical effort than for men in       any other profession, art or service.

 

Box 1. Folder 5 – Stanford

 

February 1960, Stanford’s National Visibility, Stanford Conference, Various locations

 

2/60  Typewritten speech with notations by Packard.

 

Packard notes that 1959 marked the   tenth anniversary of Dr. Wallace Sterling’s tenure as president; “we reviewed some of the things which have been accomplished during these ten years.” This progress has continued and he wants to give a “brief report”

 

On finances – operating budget for 1959-1960 just over $23 million, up from $20 the year before. Expenditures will be covered by income. 1959  “has seen the largest program of plant additions in the history of the University — including the new $16,000,000 Stanford Medical Center — the construction of the Applied Electronics Laboratory — the Gillfillan Wing of the Electronic Research Laboratory — a project to house married students — a new book store and post office —  the renovation of Encina Hall for office and research programs — and the rehabilitation of several of the old buildings in the quad.”  Packard lists several more projects for which planning and architectural work has begun: a new Chemistry building, a new Physics building, a new housing program for undergraduate men, and “perhaps most important of all — we are working on plans for a new, very urgently needed, Undergraduate Library…”

Packard says “Gifts and grants to Stanford reached a new all-time high of $22,261,809 last year…second only to Harvard” But Packard points out that buildings and money do not make a university. “Therefore, I would like to take a few minutes to report on the sine qua non — the faculty and students. ” “Stanford in Italy” and “Stanford in France” programs have been authorized for undergraduates, along the line of the “Stanford in Germany” pattern. “It will now be possible for one-third of the students to study in Europe for two quarters some time during their four undergraduate years. “New, distinguished professors have been brought to the campus.

 

“During the year, the magnitude and scope of  Research at Stanford has continued to increase. And  he gives several examples. “So — we are looking at total research effort at the University measured by over $12,000,000 of government and foundation support.”

 

“As one reviews the progress of the past year — the increase in Stanford’s National Visibility shows up in every area. :last year Stanford ranked third in the nation as the choice of Undergraduate Scholarship Winners in the National Merit foundation program. Stanford was fourth in 1958, fifth in 1957 and eighth in 1956 (the year the program started). Stanford was second to Harvard in the General Motors National scholarship competition. The new Medical School has attracted attention throughout the country….”  “Our Physics Department was singled out by the President of the United States for possible location of a two-mile long electron accelerator to cost over $100,000,000. Our Mathematics-Statistics Laboratory is recognized as one of the two or three leading centers in the country in the field of mathematical analysis. The law School in the last ten years has had seven of its graduates selected as clerks to Supreme Court Justices.”

 

“In recent years, Stanford Faculty have received five Nobel Prizes, before WW II we never had, nor could aspire to, even one such honor. In 1939 we had three professors who were members of the National Academy of Sciences — today we have fourteen.”  Packard says “…we have raised our sights in recruiting faculty.  In the past three years — we have appointed three new faculty members who were already members of the National Academy sciences — this had never happened in the history of the University before 1957.”

 

Packard tells of Stanford having …”been selected to operate an Institute for High school Teachers of Chemistry and mathematics with a grant…from the National Science Foundation.”  He goes on to say that “Stanford is developing nationwide influence in the teaching of languages — Slavic, German, French, and Spanish.” “Two out of the nine U.S. scientists at the recent Geneva Technical talks on how to detect high altitude nuclear explosions were Stanford Professors.”

 

“There are many, many more examples to substantiate clearly and decisively the conclusion that Stanford, both at the Undergraduate and at the Graduate level, has changed from a respected but fundamentally regional University to a great national institution of rapidly growing stature.”

 

Packard points out that “…these accomplishments bring us to the realization that Stanford has become an important national asset and we as its alumnae have the responsibility to assure the nation that the capabilities of Stanford in its educational leadership, in its capacity for research, and its great wealth of accumulated knowledge are fully utilized to strengthen our country and our civilization in the troubled years which lie ahead. To discuss the future of Stanford properly we must set the stage by considering some of the things which have happened in the past and make some estimate for the decades ahead.”

 

He begins by reminding the audience of some of the things that have happened in the first half of the Twentieth Century. He speaks of the “…universal use of  the telephone since Stanford was founded,” and describes how the “transmission of thought and ideas has become almost instantaneous and certainly international.” Going on Packard says “physical mobility has increased with equal rapidity. “…the development of the jet has brought Stanford closer to London, Paris, Berlin and Rome…than it was to Chicago when I was a student. No one doubts for a minute that we will put a man in space in a year or so.”

 

“These things are but the external evidences of the tremendous accumulation of knowledge which is going on in the world. such progress is impossible until envisioned by man — until the techniques and methods are thoroughly understood. Only when we have the knowledge can it be translated by handicraft into reality.”

 

Packard tells of the thousands of professional journals, articles and scientific books issued in the preceding year. He says that “In my own field of electronic engineering — when I started at Stanford in 1930, there had hardly been a dozen books published on the subject. Today there are many thousands.”

 

Packard tells of how “…only two decades ago the United States was a country virtually isolated from world affairs — both in thought and association.  Today     we are in a position of world leadership, enmeshed in a life or death struggle with Russia. In the last three years we have certainly been rudely awakened and we clearly see it will take the maximum of our energy and ability to maintain our position of leadership and it will not be maintained through any bargain with Providence. This is the environment in which our University must take a position leadership.”

 

“Above all” Packard says, “Stanford must stand for the preservation of freedom. It is the fundamental American concept — and in fact the basic tenet of the entire Western World — that all great accomplishment in the world has been made and will continue to be made by individual men working in an atmosphere of freedom, fighting the tyranny which is continually attempting to destroy freedom and dignity for the individual person.”

 

Looking ahead Packard says “The second half of the Twentieth century may well turn out to be the most critical period in the history of the world. Certainly it is likely to be the most critical in the history of our nation and Western Civilization.

We face an explosion of population as well of knowledge….The boys and girls who choose Stanford will have the opportunity to keep up with this explosion of knowledge. They will know and work with professors exploring on the very frontiers of knowledge in many areas.”

 

Packard tells how Stanford’s influence is extending into the international area:…”We recently received $3,500,000 from the Ford Foundation to establish an International center at Stanford for educating teachers of Business Administration from foreign countries….In the past year or two, many important national corporations have come to recognize the tremendously important contribution made to all higher education by the great private universities….The Chase Manhattan Bank of New York recently awarded Stanford along with nine other first level privately supported universities — a grant of $10,000 a year for five years because Stanford is  “Widely recognized as having been outstanding over the years as a center of learning!”….As your trustees,  your administrators and your faculty attempt to guide Stanford toward its proper future destiny — there naturally will be many practical problems: admissions, social standards, athletics.”

 

Packard says he wants to say a few words about athletics, “lest you leave the room with the idea there is no place at Stanford for anything except intellectual achievement. ….”when we talk about leadership for today, we are talking about men and women with drive, energy, motivation, judgment and wisdom — in addition to intellectual capability. these qualities are developed on the athletic field as well as in all kinds of extra-curricular activities.”  “I am confident we can find enough good football players who are also good students to give our adversaries a better run for their money in the future than we have in the past.” “Last year, out of 10 Phi Beta Kappas in the Pacific Coast Conference, 6 were from Stanford.”

 

In closing Packard says he wants to remind “… you all that we have undertaken a monumental challenge, that your trustees, your president, your administrators, and your faculty are working together with full understanding of the magnitude of the job to be done. We are tremendously grateful for the devoted work of the alumnae Association, the Stanford Clubs, the Stanford Associated and all of the many individual friends and alumni who have helped to make the past progress possible.  We know we can count on all of you in the future.”

 

2/5/60 Typewritten draft of above speech with notations

2/28/60 Typewritten speech given by President Wallace Sterling, with notations

 

 

Box 1, Folder 6 – Stanford

 

April 29, 1960,  Stanford Luncheon, Waldorf Astoria Group, New York

 

4/29/60 Typewritten speech made before this group introducing Herbert Hoover and Stanford President Wallace Sterling.

Packard welcomes the attendees and expresses the hope they are there “because you share with us the belief that higher education is a very important source of strength for our nation. We who are working for Stanford believe also that the privately supported- and independent universities have a special position of leadership to fulfill for higher education. This is in no way to depreciate the crucial role of the tax supported schools and universities for, particularly in the West, they must accept the burden of accommodating the numbers.”

 

Packard goes on to say that Stanford’s “problem and objective is to provide leadership and education – in research – and in the preservation of that freedom which is the foundation of strength for our nation and our Western Civilization” In pursuit of these objectives Packard says Stanford has made great progress in the past years and he quotes one observer as saying Stanford has grown from being a respected regional university to a great national institution.

 

Such progress Stanford has made “comes from the enthusiastic help from many people – Alumni – friends – Foundations and corporations as well as from the devoted and untiring work of our Professors and administrative people.” Packard continues “We are here today to express our appreciation to you for the help you and your colleagues along the Eastern Seaboard have given us in this venture. Packard says those at Stanford are aware that this help “carries with it the obligation and opportunity for Stanford to work shoulder to shoulder with all of the other great educational institutions in our nation.”

 

Packard goes on to introduce Herbert Hoover saying that “We are delighted to have with us today one of the most distinguished citizens of our country and the most famous son of our university. Packard says this person’s “most important contribution to Stanford and perhaps to our country as well is the institution which bears his name and which is located on our campus in Palo Alto. This is the largest and most important collection of documents in the world relating to the events and developments which have influenced, in fact made, the history of the twentieth century.” Packard proceeds to introduce  Honorable Herbert Hoover.

 

None of Mr. Hoover’s comments that day are a part of this document, but apparently, following Mr. Hoover’s words,  Packard introduced the President of Stanford, Wallace Sterling, saying Stanford “is indeed fortunate to have as its President one of the great leaders of higher education…..Our faculty, our students, our Alumni, and our Trustees are indeed proud to have as our leader a man who has measured up so well.”

Box 1, Folder 7Stanford

2/?/60 Typewritten copy of speech titled “Stanford’s National Visibility” given by Dave Packard. See folder February 1960 of this title for review of talk.

 

2/11/60 Typewritten letter from Carroll E. Bradberry (of the firm Carroll  E.. Bradberry & .Associates, consulting Engineers) to David Packard saying that he is attaching “a draft of a resume of your speech which I will include in a letter to all our alumni.” He asks Packard to make any changes and return. The resume referred to is quoted below:

 

“A good number were able to turn out for the Bay Area kickoff banquet, at which David Packard’s address highlighted the future importance of the fraternity system. Mr. Packard noted the growing prestige of the university in terms of the distinction of its faculty and its popularity among National Merit scholarship winners. This increasing prestige of the university, he said, coupled with the explosion in college application statistics, gives Stanford a unique opportunity to increase the quality of its undergraduate programs. Mr. Packard stated this in terms of training the “leaders of the last two decades of the twentieth century” and noted particularly that his definition of leadership includes more than academic excellence. Furthermore, the desirable social attitudes shown in the past to be best developed in fraternities are to be continued and encouraged and he emphasized the new opportunity for leadership which the fraternities will have in the years ahead. In conclusion, the President of the Stanford Board of Trustees stressed the importance of the fraternity housing program to Stanford and urged all alumni to give it their financial support.

 

Undated typewritten speech titled “Stanford’s future Role in the West.”  The speaker is not known, but the copy contains several notations by Packard, which appear to be points he intended to bring out himself.

 

Speech by unknown speaker on above subject. This is a review of Stanford’s importance in the West and its educational competition in California, mainly the University of California system. Packard’s notes are apparently a listing of a few points he wished to bring out following the above speaker and refer to the importance of financial support.

 

8/8/60 Typewritten letter to Packard from J. F. Oliphant, President, Faculty Club, inviting Packard to speak to members of the Club on Oct. 7, 1960.

8/22/60 Copy of typewritten letter from Packard to J. F. Oliphant. Packard says he cannot make the 10/7/60 date but would be pleased to join them later in the fall.

8/30/60 Typewritten letter to Packard from J. F. Oliphant, President, Faculty Club, saying he will write Packard later to arrange a date.

11/28/60 Typewritten letter to Packard from J. F. Oliphant. confirming the date of January 6, 1961 for Packard to address the club.

12/11/60 Typewritten letter to Packard from William Bark, Professor of Medieval History.

The date on this letter is apparently in error because it refers to comments made by Packard in his speech of 1/6/61 to the Faculty Club [see above]. Professor Back responds to Packard’s comments concerning Professor Baran and gives some possible reasons why no one challenged Prof. Baran. Professor Bark refers to an attached letter [not included in this folder] concerning  Mr. Liu’s faculty appointment.

Box 1, Folder 18 – HP Management

 

January 29, 1960, Fourth Annual Management Conference, Sonoma

 

1/29/60, The major document in this folder is the usual bound binder with charts and handouts for the conference. First is a two page memorandum from Dave Packard:

Packard talks about the first management conference in February 1957 when shipments in 1956 were $20,000,000 and profits were good. Then here they are to review the year 1959 when sales are $50,000,000 and profits are good.

 

Packard  says they have implemented many things discussed in prior conferences well, but some things have not been done. He says he wants to discuss these things this year. “This weekend we are going to spend most of our time considering what the future holds for us.” He says that many thought the company would never get over $50,000,000 in sales – yet here they are in only four years. “It seems to me”, he says, “that the first order of business should be to attempt to get a better fix on the long range opportunities for us — what kind of problems these opportunities might bring; and from this base move on during the year to make the detail management decisions needed to implement our future.”

 

Packard says they will begin by “reviewing the economic environment in which we are likely to find ourselves in the next decade … [and] explore how we think HP will fit into this environment…”

 

Another document in the binder which is of particular interest is a several page listing of HP corporate objectives with preface by Packard and comments by him on the relative importance of each.

 

3/30/60 A 23 page document titled “David Packard’s Report on the 1960 Sonoma Conference to Supervisors and Management.”

 

This is an address, by Packard, a group a HP supervisors who were not at the conference. Going through a slide show Packard reviews sales growth, by product type, over several years. Following this he shows how profits per share have increased. He sees a substantial growth in the company over the past few years.

 

Packard describes the geographical growth of the company and its association with Moseley, Boonton Radio, Geneva, Boblingen. At the conference they tried to make some projections to reflect these changes. Following Ernie Arbuckle’s  projection of Gross National Product, population growth and growth of per capita income, they looked at the projected growth of the electronic business.

 

Packard then analyzes HP share of the market for various product groups. Projecting ahead they came up with estimated sales for HP in 1964 of $64,000,000. Then they moved on to project what this growth would mean in terms of people, facilities and dollars. They projected a total of 9674 people needed by 1969. As to construction, they concluded it would be better to grow in different areas than just in Palo Alto.

 

Packard discusses the deliberations at the conference on financial matters and the question as to whether the policy of financing their growth internally through profits would support the growth they had projected. They concluded it would.

 

Packard then turns to the corporate objectives  and the discussions at the conference about the ability of these to hold up to the scale of growth they foresee. They concluded that “the guides we have used through the years should continue to be our guide for the future.”

 

Regarding personnel Packard sees four things they shall have to do better than in the past: selection – get more and better people; work harder at     developing the people we have; evaluate their performance; supervisors must work hard to help their people advance and grow.

Lastly this folder contains  a handwritten outline of what may have been a talk on Foreign Markets. The writer is not indicated. It was not Packard.

 

1/13/60, Letter to Packard from James H. Healey, Director, Management and Business Services, enclosing a reproduction of the remarks made by Packard at an AMA Management Seminar. The typewritten text is titled: Toward a Common Code of Business Ethics.

 

 

In this speech Packard says American business men are “well on the way” to develop a code of ethics for business.  He sees two forces that work against manager’s ability to operate freely – one is Communism. Packard says, “At this point in history, we must face the fact that American business has somehow not measured up in the eyes of the world.”

 

Packard sees three ways by which those who hold power are prevented from abusing it: higher authority (government), an opposing power (unions), and third a self imposed code of ethics. He sees the development of a code of ethics as “the greatest challenge now confronting management.”

 

Packard describes four tenets which have been suggested by business leaders in recent years, and which “might fit into such a code:”

 

1. To manage our business enterprises with the primary objective of making a contribution to society.

 

2.  To recognize the dignity and personal worth of every employee

 

3.  To recognize our responsibility to society in general.

 

  1. To develop and encourage a better understanding of the nature of profit.

 

Box 1, Folder 35D – HP Management

Packard feels management is on trial. “It is my hope,” he says, “that American management will continue to put more emphasis on the why of business and more effort into the development of a common code of business ethics. Such a code must be based upon the attainment of a high objective—the preservation of our liberty as managers—and it must be acceptable to the vast majority of business managers if this objective is to be achieved.

 

“The Russians have demonstrated that they can produce sputniks without profits and without liberty. We stand on trial before the world to prove that we can produce sputniks and all of the goods and services necessary for a better life, as well—with profits and with liberty.”

1960 – Hewlett Speeches

Box 1, Folder 23 – General Speeches

 

September 13, 1960 – “International Expansion – A Case Study” Stanford Conference titled “American Business Looks Abroad”

(See also Hewlett speeches dated April 14, 1961, March 8, 1962 and June 14, 1962 on this general subject.)

 

12/13/60, Typewritten text of Hewlett’s speech

 

This Conference is titled “American Business Looks abroad”, and Hewlett says “I interpret my role at this session as follows: To report on a moderately sized company’s international expansion program in Europe. The fact that this expansion program was stimulated by the signing of the Treaty of Rome, and the reality of a European Common Market, is pertinent to the theme of this meeting.

 

DESCRIPTION OF HEWLETT-PACKARD COMPANY

 

Hewlett starts with a brief description of HP, saying that “We are a manufacturer of precision electronic test and measuring equipment. Our instruments are characterized by a high engineering content, and by high quality and reliability of operation. We manufacture about 300 to 400 standard catalog items most of which would be classed as off-the-shelf capital goods.” He gives the location of the main plant in Palo Alto and adds that “…we have three domestic subsidiaries, one on the East Coast, two on the West coast, and we have recently started another manufacturing branch in Colorado.” He says 2500 people are employed in Palo Alto, 3500 in total.

 

Hewlett says products are marketed in the United States through independent representatives who also handle “compatible lines of equipment” for other manufacturers.

 

FOREIGN SALES

 

Hewlett says that foreign sales were initially handled by a “local export agent” from the U.S. These agents had representatives in various countries throughout the world. As the Company grew they found it “appropriate,” to take over the direct contact with the representatives in the foreign countries. “By and large,” he says,” these same representatives now form the backbone of our present international marketing organization.”

 

Hewlett tells the audience that exports have traditionally been about 10 to 15% of total sales – but currently running about 15%. “To understand the character of our foreign market,” he says, “it should be realized that broad scale use of electronics is almost exclusively confined to the more technically advanced countries of the world….About 66% of our foreign sales traditionally go to Europe, about 15% to Canada, about 9% to Japan, and the remaining 10% is spread throughout the world.”

 

PRODUCTS

 

Hewlett classifies HP’s products into two broad groups: “One group of products,” he says, “is represented by fairly sophisticated engineering designs, but is basically an assembly of standard component parts. Another group of products is equally sophisticated in design, but requires a great many special and precision parts for which expensive and extensive tooling is required. In the former group we have found that our competitors abroad have had no difficulty in duplicating or paralleling our designs, and thus we find that sales of this class of product have been small in foreign markets. In the latter group, however, our heavy tooling and production expenses may be liquidated against the large mass market which exists in the United states, and this gives us a clear advantage over our foreign competitors who do not have such a mass market. As a result our sales have been almost exclusively in this latter classification.”

 

DECISION TO EXPAND FOREIGN OPERATIONS

 

It was against this background that Hewlett says they evaluated the long range effect of the Treaty of Rome which was signed in March of 1957. “It was our conclusion,” Hewlett  says, “that the coming of the Common Market would provide Europe with a true mass market, unrestricted by tariff walls. This would give them the same advantage that the United States has enjoyed for so long on almost an exclusive basis. To the Hewlett-Packard Company this would mean a potential loss of its present competitive advantage and a consequent reduction of sales in Europe. On the other hand, if we were to enter the European Common Market with a manufacturing facility, we would be in a position to protect our existing market and in addition to compete in the assembly type of operation from which we were almost completely excluded at the present time. The choice was obvious, we had to move at once to develop a manufacturing operation somewhere in the Common Market. The question was, what type of operation – joint endeavor or 100% owned subsidiary – and where should this operation be located?

 

Hewlett says the first question was easy – they definitely felt that a 100% owned subsidiary was the most desirable way to go. The choice of what country to locate in was more difficult. By studying informational material from such sources as the U.S. Department of Commerce, and from individual countries, they were able to evaluate factors like general character of the countries, tax structures, labor situations and so forth. “By studying such sources,” Hewlett says, “we were able to narrow the selection to the Netherlands, Belgium, and Germany.” So, in the spring of 1958 Hewlett went to Europe to try and determine which country would be the best country for their manufacturing plant – and, if possible, just where in that country it would be best to locate their plant.

 

While visiting each country Hewlett would visit U.S. Counselor officials, as well as local government people. He had letters of introduction to local manufacturing executives as well. And he also talked to local Americans who represented U.S companies. He says local banks were “one of the most important sources of information.”

 

GERMANY AS A BASE FOR MANUFACTURING

 

“As a result of this survey,” Hewlett says, “it was decided to establish an operation in the Stuttgart area of southwest Germany. The basic advantages of Germany were many. First, it had a large internal market. Second, one of our toughest competitors in Europe was located in Germany and we felt that the best way to compete was to be in the same country and not interpose an artificial tariff wall between the two of us. Thirdly, Germany has long had a strong and aggressive export policy and as we planned to export over 80% of the products manufactured there this was an important factor. Fourthly, Germany traditionally has had a supply of skilled and experienced labor, particularly at the foreman and supervisory level. Finally, Germany has had a fine record of a stable economy since the war.”

 

They did see some disadvantages to locating in Germany: no governmental aid, high employment, tax structure not as favorable as elsewhere.

 

To sum up Hewlett says “Our selection of Stuttgart was primarily based on the fact that it was an excellent light manufacturing area and that the people in the community were noted for their industry and hard work”

 

NEED FOR CORPORATE OFFICE IN EUROPE

 

Hewlett says they found some problems in considering the implementation of their decision to locate a plant in Germany. “One such problem was that of order distribution,“ he says. An example would be a situation where a local representative receives a composite order from a customer. He would have no way to find out what part of the order should be sent to the HP plant in Germany,  and what part should be sent to the U.S. “Thus, some decision making agency was needed abroad to cope with this type of problem,” he says.

 

Hewlett tells of another problem they ran into, — the matter of a “Travel Lab.”

He explains that a Travel Lab is a large bus in which are set up various operating displays of HP equipment. This bus needed a home base in Europe.

 

They also needed a way to carry out training programs in Europe for sales personnel.

 

“All of these problems,” Hewlett says, “ suggested that we needed a corporate office of some nature in Europe, and the decision was made to establish a primary subsidiary company in Switzerland to perform all of these various functions and, in addition, act as a holding company for our German operation. Switzerland was selected for several reasons. In the first place, it is centrally located. Secondly, the Swiss are generally accepted throughout most countries of Europe, and indeed through most countries of the world. Switzerland has one of the most stable currencies of the world. It has tax treaties with Germany which would facilitate the holding company operation which we envisioned. Finally, the tax laws in Switzerland are favorable to the type of operation that we wished to establish.”

 

ESTABLISHMENT OF OPERATIONS

 

So Hewlett says he went back to Europe in the fall of 1958 with three objectives in mind, –  the first being to select a canton in Switzerland, negotiate a favorable tax agreement with the authorities, and set up a basic corporate structure. Secondly, he wanted to establish the ground work for the German manufacturing plant. Thirdly, he needed to recruit key personnel for both the German manufacturing operation and the German sales organization. He says he took with him on this trip HP’s Export Sales Manager (who was to be the manager of the German manufacturing plant until a German national could be trained for this spot), and HP’s U.S. attorney.

 

Hewlett says they  “…were successful in completing all three objectives and, in looking back, it is apparent that in two areas local contacts were most important; good bank connections and the best possible legal advice. Without either of these, it would have been infinitely more difficult to have obtained our objectives.

 

“By February 1959,” he says, “nearly all preliminary steps had been completed. By April, 1959, we had actually opened our Swiss office with two months inventory in a bonded warehouse in Basel under its control, and by the first of July our sales operation in Germany had commenced. Our manufacturing operation near Stuttgart did not start, however, until September of that year.

 

OPERATIONS IN SWITZERLAND

 

Hewlett says he wants to “summarize” operations in both Switzerland and Germany. In Switzerland He says the first step was to start a training program. “To understand the importance of this training…,”he says, “one must understand the character of our products. Our products are those which are sold at a technical level. That is, they are sold well down in an organization. This means that our representative group must have an adequate and well trained sales force that can work directly with the customer’s engineers, and scientists. This sales force must understand the customers’ technical problems and must be able to make intelligent suggestions as to what type of equipment will be helpful. Domestically we had found that to achieve this competence, we had to have intensive training programs for our representatives’ sales engineers. In Europe we had never had the opportunity to furnish this type of sales training. At best, we were fortunate if the principals visited us once every two or three years, and when they did they were usually more interested in matters of policy than in technical questions.

 

“The first training program was so successful that we repeated it again the following year with Mr. Packard and myself in attendance. I think it is interesting to note that at this second sales training conference we had representatives from every nation of Western Europe with the exception of Ireland, Portugal and Luxembourg. We even had a representative from Yugoslavia.”

 

After starting a training program, the next task was to find local warehousing for their equipment. Hewlett says, “This program has proved to be of great value. Customers like the idea of being able to get delivery of equipment on short notice and not wait for it to be shipped from a foreign country 8000 miles away. In a sense, the fact that stock is maintained locally is a symbol that you are really interested in helping them and they react accordingly.

 

“The Travel Lab, too, has been a most effective sales tool. In the first place, our customers in Europe have been able to see operating displays of our most recently developed equipment without having to wait for the next International Trade fair, and without having to leave their own local community. This program has been welcomed by management for it keeps engineers current on modern instrumentation without the expense and inconvenience of travel.”

 

MANUFACTURING OPERATION IN GERMANY

 

Hewlett says progress on the manufacturing operation in Germany “has made headway, but at a slower pace than the Swiss sales company for it is a much more complex operation to establish. After about a year of operation it had recovered initial start-up expenses and was operating at a slight profit. We currently employ about 60 people and, according to plan, are manufacturing the assembly type of products referred to earlier.”

 

Hewlett says they found local community people more interested in helping their operation than were those in the federal government. “We were fortunate in finding …the town of Boblingen , just outside of Stuttgart. The town was most helpful for it was willing to purchase a site and lease it to us at a nominal rate. Further, if at a later date we wished to acquire the land, the town would sell it at a price that was roughly one-third of what it had originally payed [sic]for it. In a number of ways also, the town has shown a great willingness to help. This all proves the value of selecting a community that has a genuine interest in the welfare and prosperity of your facility.”

 

Communications, “the problem of establishing understanding with an operation some 8000 miles away,” was a serious problem Hewlett says. “It has been with great difficulty and several trips of Hewlett-Packard people to Germany that we have been able to reestablish …understanding.”

 

Getting component parts from local suppliers was also been a problem. “This is due in part” he says, “to the booming Germany economy, but it is also due to the presence of traditional patterns that often exist between supplier and consumer in many countries of Europe. These trade patterns pose real problems to a new concern when it endeavors to develop its own sources of supply, particularly during a period of booming economy.”

 

“[A related problem has] arisen in trying to find suppliers who will furnish equipment or who will make special items for us and also have a realistic delivery schedule. This, coupled with the component parts problem, has made it extremely difficult to develop a flexible production schedule; one key to efficient and economical operation.”

 

Hewlett says they also have had some problems with unsatisfactory quality of workmanship. “I feel that this can be accounted for primarily by the inexperience of the employees in the particular type of assembly work that we were asking them to perform, for Germany, as is most of Europe, is changing from a craftsman approach to production, to an assembly line approach. This problem of quality became so severe that we found it necessary to send over a third level supervisor from Palo Alto to help train the employees and to establish better quality control procedures. We sent over one of our young Stanford Business School graduates to work out some of the practical problems of integrating local procedures with U.S. procedures in such areas as inventory control, scheduling, record keeping and the like. Both of these moves have helped substantially to improve the effectiveness of the German subsidiary.”

 

CONCLUSION

 

Hewlett concludes that “…our original objectives have been met successfully. A sales development and coordination program has been established and is now operating more effectively than was anticipated. A manufacturing operation has been set up within the European Common Market and is now producing satisfactory equipment. These two operations have generated capital outside of the U.S. which may be used effectively for the next logical step – a manufacturing plant within the European Free Trade Area (EFTA). [In a handwritten note Hewlett added]: This we plan to do starting this fall in England, where it can serve both the EFTA group and the Commonwealth nations. With our experiences now behind us [in startups in both Germany and Colorado], I look for a much smoother startup than we experienced in Germany.

 

“In all, I think we as a company should be deeply grateful for the Treaty of Rome and for the European Common Market which developed from it. Its establishment has forced us into an international expansion program that was long overdue and, judging from results to date, gives every indication of becoming a vital part of our total corporate operation.”

 

 

Undated, Three handwritten drafts of a speech on this same subject (that is the considerations given to HP’s movement into Europe). A typed page outlining these notes is also enclosed.

 

Box 1, Folder 24 – General Speeches

 

Late 1960 or early 1961 – Speech on HP organization, no location

 

Speech, Written in outline form and handwritten by Hewlett

 

Hewlett titles the first section, ”Origin in Engineering,” with the following sub titles:

 

  1. Company founded on engineering
  2. Method of product selection at start
  3. Developed into “development of opertunity [sic]
  4. Expansion with Engineering Div. Concept
  5. Change in Microwave div.

 

Discussion of each division:

 

  1. Counters
  2. Oscilloscopes
  3. Audio-Visual
  4. Microwave
  5. Other Supporting Areas

 

Conclusions

 

  1. HP reputation has been built on quality of engineering and responsibility of its production
  2. Trend towards more research with growing decentralization – with engineering in each division
  3. This does not represent movement away from organization principles – rather a division of work that will guarantee maximum yield.