Box 1, Folder 46 – General Speeches

 

January 10-12, 1964 – Talk at HP Monterey Conference, HP Managers, Monterey, CA

 

1/10-12/64, Hewlett’s handwritten outline of his remarks at the annual meeting of HP managers.

 

Hewlett sees HP at a crossroads. HP’s primary customer has been the military and that is going to retrench. Why – stagnant economy, general belief that a tax cut is necessary, which means reduced spending, and the military is an easy target.

 

He says current HP forecasts may be too optimistic. Need to consider alternate course of action –

 

Problems with considering new areas

Would be more industrially oriented

HP would have neither the technology, marketing know how and little knowledge of competition

If HP moves into the field of others, others will move into HP’s field

 

On approaching the problem Hewlett suggests –

We would do better in present areas

Need to expand footholds we have  – medical

Set up in house groups to brainstorm ideas

Possibly  acquire other companies in new fields

 

We need the best leadership possible get it from inside or outside. Must make progress

 

We have led a sheltered life – now entering a new era – must leave shelter – get out into the mainstream – be prepared to slug it out.

 

Honeymoon is over. Need to get to work –or fail.

 

1/9/64, Memo from HP economist, Austin Marx, to Hewlett giving some data on government forecasts of business, and HP order history. He includes data on layoffs experienced by some other companies. He also includes a copy of a statement (11/25/63) by F. R. Collbohm, President of Rand Corp. before Select Committee on Government research, House of Representative, and copies of several articles on research projects.

 

 

Box 1, Folder 47 – General  Speeches

 

January 20, 1964 – Senior Sales Seminar Breakfast, location not given

 

1/20/64, Typewritten copy of outline of remarks, as well as a handwritten copy

 

Hewlett talks about the technical progress of HP, past, present and future

 

He says HP has led a “slap-happy life,” in an engineering sense. Progress made mainly by fired-up imagination and creative guys who did a great job – analogy of bin of parts which was common to all users.

 

Discusses the purpose and progress of hpa, a new division of HP – “fascinating” progress, he writes:

 

High speed light operated switch

Solid state memory devices of thin film type

Really high input impedance transistor devices

Solid state strain gauges

Light sensitive vari-caps

Truly high speed diodes

 

He writes “This program will really pay off.”

 

The hpa program very good, but highlights a very important problem now facing HP. A greater sense of responsibility and of control

 

Corporate-wise we are spending all we can afford

1. Must reduce duplication without destroying initiative
2. Must do a better job of selection of projects without becoming stereotyped
3. Must be willing to move into a new field of instrumentation without undue proliferation of sales effort

 

HP started as an engineering oriented company; still an engineering and new product oriented company. Plan to maintain these characteristics and push still further into the future.

 

Reflects on the role of the field sales force with reference to:

1. caliber of people
2. training
3. the fact that they are the eyes and ears of the company

 

 

Box 1, Folder 48 – General Speeches

 

February 11, 1964 – Talk to Engineers at Loveland Plant

 

2/11/64, Brief outline of remarks handwritten on back of a teletype message he had received regarding hotel accommodations

 

Hewlett writes that HP is an engineering company, dependent on:

Ingenuity, imagination, creativity, elegance of design

 

A word about last year:

Sanborn, purchase of sales representatives, R&D expense

 

A word about current year:

Uncertainties

Some up – some down

People unsettled- move into other fields

Period of reorientation – good progress

Position at Loveland

Some costs high – sales sick

Good leadership, new spirit

Why started, advantages of small company

 

Box 1, Folder 49 – General Speeches

 

February 25, 1964 – Annual Shareholders Meeting, at HP Corporate Headquarters, Palo Alto, CA

 

2/25/64, Handwritten outline of remarks, written by Hewlett

 

General remarks

International picture continues strong

Orders

Europe largest market, up 10%

Canada up 14%

Rest of world up 5%

Overall corporation up 18% vs. 5% in U.S.

 

Operation

Three foreign manufacturing plants opened

GmbH production up 10%

Ltd.- Production up 80%, 140 people, tight on space

YEW – HP, 49-51%, start Jan 1964 with 246 people

 

Sales

Own operation in UK, France, Italy

Japan YHP

Take over Sanborn April 1^st

 

 

Box 1, Folder 50 – General Speeches

 

April, 1964 – Talk at YHP, Tokyo, Japan

 

4/64, Pencilled outline for remarks, written by Hewlett on YHP stationary

 

Hewlett lists topic-of-year to date, and outlook for rest of the year.

 

Market analysis

 

Only two ways to grow – increase penetration of old field, or operate in a new field

 

The first means more effective selling, the second means new products

 

Start from scratch  – acquire

 

Nuclear work, tape transport, temperature, mw spectrum

Mecrolabs

 

Importance of international organization – domestic off target, international on target

 

R&D in Europe – tough, needs your help

 

A word about Japan, Primarily a local market, some items repackaged, produced to HP standards and sold worldwide

 

 

Box 1, Folder 51 – General Speeches

 

May, 1964 – Talk at Bedford, England

 

The date and place of this speech is not certain. From his notes he appears to be in Bedford, England, and is discussing the possibility of moving the plant to Scotland. Mr. and Mrs. Hewlett had been in Germany at the Boblingen plant and it appears they came to England on the same trip.

 

May, 1964, Notes for speech handwritten by Hewlett on 3×5” cards. Very similar notes also handwritten on the back of a letter addressed to Hewlett concerning their German itinerary. This draft appears to be an earlier draft for the Bedford remarks.

 

Hewlett talks about the Company’s operations in the past and what he sees for the future. He apologizes for not getting around more to visit with individual employees – says he will do more if he can. Says he and Mrs. Hewlett wish to have a weekend on their own.

 

Hewlett talks about the problems of quality – cost of re-work. Says quality is your job.

 

He talks about bonus – last year 6% through December, possibly 8.6% this year.

 

The Move

 

Says they came to Bedford knowing they might have problems. Easy to look back and see what they might have done. Did not appreciate how rapidly we would grow. Analyzes the possibility of moving to another area vs. staying in Bedford. Says they are looking for a new site, possibly Scotland. Would like all to come if they can – HP’s loss if they cannot. Timing 2 years.

 

Management

 

Says has high regard for David Simpson as manager and nothing in his inspection over the past couple of days has changed his mind. Plant can have only one manager. If you cannot follow seek employment elsewhere.

 

2/65 Photocopy of a page from Measure magazine of February, 1965 saying that the plant in Bedford will relocate to South Queensferry, Scotland.

 

 

Box 1, Folder 52 – General Speeches

 

July 13, 1964 – Senior Sales Breakfast, no location given

 

5/64, Hand written outline of remarks written by Hewlett-Packard

 

Talking first about corporate performance Hewlett lists these notes:

First five months of year – good

Orders up 9% – but 4% below target

Shipments up 7% but 6% below target

Profits up 23 ½ % up – not good enough

In general performance was fair

 

Outlook for short term

Hewlett gives several figures covering national economy showing moderate growth. Principle areas of growth were electronic instruments, optics, nuclear, medical, space telemetry, process controls

 

Hewlett sees a tough year.

 

Discusses corporate changes

Shift away from military sales

Need new products, sold to new customers.

Structure our selling effort to meet these changes

 

 

Box 1, Folder 53 – General Speeches

 

August 18, 1964 – Remarks to College Engineers Summer Program, Luncheon, Palo Alto, CA

 

8/18/64, Handwritten notes for remarks, written by Hewlett

 

Hewlett talks about history of company 25 years ago – first sales to Disney

 

Talks about the summer program for engineering students

 

What HP gets out of it

What you get out of it

Where you come from

Where our managers came from

Policy on engineers and management

 

New areas of interest

R&D

Mecrolab

Mw spectrum

Nuclear physics

Medical

How management decides to go into new areas – or not

Where new ideas come from

Examples of ideas

 

8/9/65, Copy of a memo to Hewlett from Norm Williams outlining arrangements for the students tour day

8/9/64, Copy of list of student names and colleges represented

 

 

Box 1, Folder 54 – General Speeches

 

August 31, 1964, Finance Seminar, Luncheon, location not given

 

8/31/64, Handwritten outline of notes for remarks, written by Hewlett

 

Hewlett says when he talked to the financial people the previous year the title of his speech was “Where the company is going and what it means in terms of Accounting.” He says this year’s talk has the same title – subtitled “Flexibility.”

 

“Where is the Company going,” he says

 

He lists some areas of new interest – mag. tape, mw spectroscopy, nuclear instruments, chemical instruments, secondary computer operation, contract medical sales, components, transistors….

 

He redefines some areas of interest

 

In the functional – primarily through electronic means, data acquisition, storage, processing and products

 

More specifically – measurement of physical quantities in the electrical, mechanical and chemical field

 

Biological quantities primarily for diagnostic use

 

He talks next about how the company may be put together

 

He sees some offshoots of present structure

Acquisitions

Policy

Large vs. small

Advantage of small company

Individual initiative and drive

Specific product areas

Republican philosophy

 

Problems of managing many small shows

Real challenge to management

2+2=5 – synergistic

Must be able to give people something not available to them

Must know how well things are going. This can be achieved through a functional staff organization

 

Finances make money available . Functional reporting is the glue that holds all together – problem of two bosses, functional manager in corporate and local manager.

 

Finance is one area where we demand conformance.

 

 

Box 1, Folder 55 – General Speeches

 

September 9, 1964 – Dinner for New Engineers, Corporate cafeteria, Palo Alto, CA

 

9/9/64, Typewritten page with notes for Hewlett’s remarks, includes handwritten additions

 

In a slate of speakers Hewlett was scheduled to speak about International Operations.  He talks about the importance of overseas operations and their relationship to domestic operations.

 

He describes the various current international locations and new areas they are looking into.

 

Hewlett talks about new product areas and growth potential

 

He talks about where new engineers might fit in, their importance to new product program, importance of self-development.

 

8/19/64, Copy of a memo from Personnel VP Ray Wilbur to Hewlett and Packard. Wilbur talks about plans for the upcoming dinner for new engineers.

9/4/64, Copy of a memo from Ray Wilbur to Hewlett attaching a list of new engineers hired since July 1963 – coming from all 50 states and 11 foreign countries

9/9/64, Copy of a memo from Ray Wilbur to Packard listing the speakers at the forthcoming dinner for new engineers

 

 

Box 1, Folder 56 – General Speeches

 

September 15, 1964, United Fund Drive Kickoff Luncheon, location not given

 

9/15/64, Handwritten notes written by Hewlett on the back of a sheet listing the money expected to be allocated to agencies in Santa Clara County

 

Hewlett lists topics he wishes to cover –

 

How HP views support to local agencies

Results of last years drive – was down

This year goal –

Company matching

Let’s make HP a “pace setter of pace setters”

 

 

Box 1, Folder 57 – General Speeches

 

October 12, 1964 – New Engineers Luncheon, probably held in Corporate plant, Palo Alto, CA

 

10/12/64,  One notebook page outlining notes for his remarks, handwritten by Hewlett

 

Hewlett says in times past he has talked on Corporate objectives, but concludes these can be read.

 

Describes the company – appearance of confusion

 

New definition of areas of interest – product areas

 

Some internal – some acquisition

 

What this means to you – Opportunities

 

 

Box 1, Folder 58, General Speeches

 

October 24, 1964 – Colorado Springs Dedication, Colorado Springs, CO

 

10/24/64, Handwritten outline, (somewhat expanded) of talk by Hewlett

 

Hewlett says the HP plant was just starting 18 months ago and now it has 364 people working there – 450 by year end. Have 80 professional level people. He says they are all appreciative for all the help received from Colorado Springs people. Soon, he says these people will begin to carry their load in the community – help in the P.T.A., the Chamber of Commerce, United Fund drives,

 

When they really begin to think of this as their home that is when some may be willing to run for elective office like school board or city council. Representative government is no better than the interest that people take in it and the caliber of citizens elected to office.

 

These are just a few of the areas where HP and the Community work together…to mutual benefit.

 

“I think that there is one final point I would like to make and this has to do with how we view the operation in Colorado Springs. We look upon it as a complete self sustained industry. It has its own R & D, its own manufacturing, its own sales department. And its own areas of financial responsibility and it has its own manager. This was done for a reason – to give the advantages of a small company. The local manager, with all the help that we can give him from Palo Alto has the responsibility to make the operation a success – with your continued help  and support he can succeed and in turn help in the community.”

 

“In 1954 the HP company was exactly the size of this operation – not exactly parallel but the thought is certainly worth speculating about.”

 

 

Box 1, Folder 59 – General Speeches

 

November, 1964 – Report on Business International’s Roundtable Conference in Moscow.

(See also speech dated 2/11/65 on USSR trip.)

 

11/64, Copy of typewritten report Hewlett wrote giving his impressions of his trip to Russia. He explains that BI is a private U.S. profit oriented organization whose business is the dissemination of knowledge to its clientele on matters of international business. He stresses that the purpose of the trip was a study of Russia’s economic system, not political, and he adds that the conference was highly organized and left little room for sightseeing.

11/64, Copy of a handwritten outline of his report.

12/16/64, Copy of a pamphlet titled “The Current Digest of the Soviet Press

 

 

Box 1, Folder 60 – General Speeches

 

November 30, 1964 – Talk to visiting Brigham Young Senior Engineering students

 

11/30/64, Brief notes, handwritten by Hewlett listing topics he planned to cover when talking to the students.

 

Hewlett talked about what HP does – what and where – two locations Loveland and Colorado Springs, in additional to Palo Alto.

 

He lists subsidiaries:

Moseley

Boonton

Harrison

Sanborn

HP GmbH

HP Ltd.

 

Asking why we are the way we are Hewlett reviews the history of HP, the acquisitions and the divisions:

Microwave

Oscilliscope

Frequency and Time

R&D

Hpa

 

Talks abut the development of company policy

 

11/23/64, Memo from Norm Williams to several HP managers outlying plan for the student’s visit. Attached is a list of current HP employees who graduated from BYU, and a list of the visiting students.

Box 1, Folder 61 – General Speeches

 

January 12, 1965 – Sanborn Credit Union Talk

 

1/12/65, Brief handwritten notes for talk as written by Hewlett

 

Report on year’s operations

Very good, sales up 9%

Profits up 24%

Outlook for next year good.

 

Hewlett says their GM, Bruce Wholey, suggested they might be interested in what is going on around HP. Discusses divisions – what they do

 

 

Letter to Hewlett from William Hughes of Sanborn Credit Union inviting Hewlett to speak to their Ninth annual Credit Union Meeting.

 

 

Box 1, Folder 62 – General Speeches

 

January 13, 1965 – Acquisitions in Retrospect, Harvard Business School, Boston MA

 

1/13/65, Several pages of handwritten notes by Hewlett. His remarks were recorded and printed in a copy of the Harbus News, and since this is clearer than his notes the following summary is taken from the newspaper.

 

Hewlett says he is not giving a “canned” speech – “It is a talk about some problems that I’m worried about right now.”

 

Hewlett speaks of how they concluded some eight years ago that they needed to expand. They felt the need to spread out of California, not only because of high labor costs, but simply so as not to keep “all their eggs in one basket.”

 

Hewlett says their first acquisition was a subsidiary they had established to make transformers. “We picked ten good men to run the company and they were successful – almost too successful. From this experience Hewlett says they learned that “most people don’t like to share the wealth – especially if it is their own.”

 

Purchase of most of the F. L. Moseley Company in Pasadena was next, in 1958. Hewlett says “We quickly learned that people who start their own company are usually convinced that their own way is right.” They found it more difficult to make necessary changes. Hewlett says they looked upon Francis Moseley as “the loyal opposition because he was outspoken and elegant in doing this.”

 

HP acquired Boonton Radio in New Jersey in 1959. “This was a company that had made no progress in ten years,” Hewlett says – “and did not have a progressive management.” How to get things going again was a difficult problem – “Either you throw everybody out, or you use the low pressure long time approach,” which HP followed

 

Sanborn was the next acquisition, manufacturers of general and medical instruments. In this case they found they had to change the management. There was too much paternalism, no discipline, people promoted who were not qualified. Management did not know what was going on down the line -–most were not qualified.

 

Hewlett says they learned three things form the Sanborn experience. “First, two years is about the minimum that you an expect for a turnaround; second that organizations that don’t have a progressive management are very expensive; and three, given a chance people want to do a good job.”

 

Although he says it is a limited sample, and that from the electronics industry, Hewlett says they learned six lessons from their acquisition program.

 

1. “The most successful firms were the ones with the ‘go ahead’ [attitude]. “You can tell this,” he says, “by wandering out in the shop and seeing if the men are charged up – or are leaning on their shovels.

 

1. “In most areas you do better by persuasion than by direction.

 

1. “Stagnant and dormant companies take a great deal of push to get      going again.

 

1. “It is hard to avoid conflicts of management when the management has part ownership.

 

1. “It is hard to determine the quality of the company from the outside.

 

1. “A strong marketing organization is vital. It should be married to a good product line.”

 

8/25/64, Letter to Hewlett from Benson P. Shapiro, Vice-President of the New Enterprise Club of Harvard Business School inviting him to speak to their Club.

9/9/64, Copy of a letter from Shapiro to Packard with same.

9/11/64, Copy of a letter form Hewlett to Shapiro saying he would be glad to speak to their group in December or January.

9/24/64, Letter from Shapiro to Hewlett saying the month of January would be open for them.

10/1/64, Copy of a letter to Shapiro from Hewlett saying the 13^th of January would be a good date for him.

10/26/64, Letter to Hewlett from Shapiro saying the 13^th is fine.

11/10/64, Copy of a letter to Shapiro from Hewlett enclosing a biographical sketch, adding that it will not be necessary to meet him as he will be meeting with his son who attends Harvard.

12/3/64, Letter to Hewlett from Shapiro discussing logistics.

12/10/64, Copy of a letter from Hewlett to Shapiro enclosing photos and saying he will meet at 3:45 PM.

1/14/65, Letter to Hewlett from Shapiro thanking him for speaking to their Club

1/15/64, Letter to Hewlett from Frank L. Tucker, Professor of Business Administration, saying he enjoyed hearing and talking with Hewlett.

1/26/65, Handwritten letter to Hewlett from Jason Fane enclosing page from  the Harbus News with transcript of Hewlett’s speech.

2/11/65, Copy of a letter from Hewlett to Jason Fane thanking him for the article.

 

 

 

 

Box 1, Folder 63 – General Speeches

 

January 15-17, 1965 – Monterey Management Conference

 

1/15/65, Hewlett’s handwritten notes for his remarks at the Conference

 

Hewlett starts with a review of recent acquisitions:

Mechrolabs, Delcon, EMI, ICM, Datamec,

 

He lists several problem areas in departments, and ends with two “basic questions.”

 

How to Digest what we have.

He suggests:

1. Impose HP’s accounting system
2. Keep hands off younger firms until we find out more about them
3. When changes are made make them as part of a total plan or program
4. Have a clearly defined point of contact in HP for communications in both directions

 

Future Policy on Acquisitions

1. Acquisitions should not necessarily stop
2. Must recognize the problems that mount up with each one
3. Should know in advance how they will fit in with HP, particularly with regard to marketing, financial, relation to other divisions, anticipated demand on management

 

Hewlett talks about R&D problems

1. How to coordinate aspects of R&D
2. Foreign R&D
3. What is the role of R&D

 

1/14/65, Copies of charts and graphs describing various areas of company operations

11/25/64, Copy of a memo from Bob Brunner to ‘file’  on the subject of appropriate location for some instruments now manufactured in Loveland

12/9/64, Copy of a memo from Bob Brunner to G. Benoit and Bruce Wholey, on the subject of Sanborn’s engineering accounting system

1/4/65, Copy of a letter from Ernie Arbuckle, to Packard, with copy to Hewlett, saying he will not be able to attend the Monterey meeting and providing some points for possible discussion

Undated, Copy of a memo from Packard, possible sent to all senior managers, providing some management philosophies from Bill Harrison of Harrison Labs

 

 

Box 1, Folder 64 – General Speeches

 

February 8, 1965 – KCL Management Conference, Russian Talk, Bakersfield, CA

 

2/8/65, Hewlett’s handwritten outline of his remarks.

 

Hewlett says he was a member of a group of business people who visited Russia the previous November. The purpose of this visit was a study of their economic system, not political, although both are intertwined in Russia. They met with high level members of the Soviet government.

 

Hewlett discusses Planning, saying that it is centralized although some efforts have been made to decentralize. Problems with centralized planning in a complex society.

 

He talks about foreign trade – increasing need, prices,

 

Agriculture – big push to improve. Have increased production of chemical fertilizer. Need western technology in animal feed program.

 

No information on oil.

 

Their group met with Kosygin who Hewlett says is a quiet, serious man with a sense of authority. He says Kosygin said they have such things as long distance transmission lines, continuous casting of steel, and would like a complete chemical plant and a consumer plant.

 

He says Kosygin expressed a desire to strengthen mutual confidence with all countries, particularly the U.S.

 

[See also Hewlett’s speech folders dated November, 1964 and February 11, 1965]

 

 

Box 1, Folder 65 – General Speeches

 

February 11, 1965, Comments on Current Trends in Planning and Management Philosophies in the USSR, Stanford Graduate School

 

2/11/65, Handwritten outline of remarks written by Hewlett on notebook paper

 

Hewlett says this was a serious trip of 92 executives, organized by the Business Institute to study Russian economic system – not political. They spoke with top Russian representatives.

 

Hewlett discusses central planning saying “they have come a long way.”

 

He says the most stressed subject was foreign trade. The Russians want to increase trade and they discussed problems of trade with the U.S., and prospects of future trade.

 

Hewlett says the Russians have large plans to improve their agricultural production.

 

The businessmen met with Kosygin who he says was a quiet, serious man, with a sense of authority. He says Kosygin also stressed the importance of developing their foreign trade. Kosygin said Russia has much to offer, long distance transmission lines, continuous casting of steel, special mineral sources. In exchange Kosygin said they needed a complete chemical plant  – and consumer goods.

 

Hewlett says Kosygin emphasized some points

They adhere to the principle of peaceful co-existence

They desire to develop maximum economic cooperation

They desire to strengthen mutual confidence with all countries

 

Hewlett makes note of conclusions in his outline but does not elaborate.

 

[See also Hewlett’s speech folders November, 1964 and February 8, 1965.]

 

 

Box 1, Folder 66 – General Speeches

 

February 23, 1965 – HP Shareholder’s Meeting, probably in Palo Alto, CA

 

2/23/65, Outline of points he wishes to mention, handwritten by Hewlett on notebook paper

 

He concludes with:

1965 a good year

Major commitment in new year

Moved to consolidate marketing

Establish new concept of HP Labs

 

2/23/65, Copies of printed Statement of Income

 

Box 1, Folder 67 – General Speeches 

 

October 20, 1965 – Long Range Planning, HP Planning Meeting, Palo Alto, CA

 

10/20/65, Handwritten notes by Hewlett on the back of the day’s program for the meeting. Hewlett is to give an introductory talk.

 

Hewlett says long range planning may have a bad name, however it is necessary.

 

In earlier years, when  HP at 100 million, would plan for personnel, cash flow and plant. Now company of the size that demands a formal coordinated structure. Planning starts with ground rules of the company, objectives, general strategy. Basic plan must come from operating people – you. Management by objective – not directive.

 

This meeting is intended to lay the ground work for such planning.

 

10/20/65, Earlier handwritten outline – very brief.

 

 

this discussion is in the folder. [See also speech November 23, 1965, as well as report dated May, 1966 which he describes as a supplement to this earlier report]

 

 

Box 1, Folder 68 – General Speeches

 

November 8, 1965 – Visit to Turkey and Afghanistan for the General Advisory Committee on Foreign Assistance Programs. (See also speech May, 1996)

 

 

11/8/665, Typewritten text of Hewlett’s report on this trip to Turkey. Although the title of the report includes Afghanistan, he did not cover the latter herein. Hewlett made a second trip to Turkey in May, 1966, and a summary of his report on this trip is included in the speech folder of that date.

 

This is a report, not a speech, and a very comprehensive report it is. He visits with many people, private and in government, and gives his impressions on many aspects of Turkey’s people, government, industry, education and so forth. U. S. aid programs to Turkey were an important backdrop to his visit. The following provides brief summaries of Hewlett’s report.

 

I .   THE IMPORTANCE OF TURKEY

 

U. S. assistance to Turkey is about equally divided between military and economic aid.             Turkey is strategically important, not only as a member of NATO, but also because it controls the entrance into and exit from the Black Sea. Turkey has a long history of wars with Russia.

 

U. S. economic aid to turkey is important because it is important that Turkey be economically healthy if it is to carry out its military assignments and remain an independent state aligned with the free world. There appears to be no reason why Turkey cannot gain self-sufficiency within a decade or so.

 

 

II. HISTORICAL TURKEY

 

Modern Turkey, as a western democracy, started with the Ataturk revolution in 1923. Ataturk drove out most of the Christian and Jewish people from Turkey, leaving the nation short of people experienced in commerce and industry. Typically, the Turk looked down on such activities as unbecoming to a member of the ruling class of the Ottoman Empire.

 

However, the Ataturk regime did do much to encourage the development of industry, passing a law favorable to industrialization in 1927. But the Turk’s inexperience in matters of business and the depression which affected much of the western world in the thirties did much to prevent the development of any substantial industry in turkey. The legislation which had favored  industrial development was repealed in 1942.

 

During the thirties Turkish thought was much influenced by ideas of a planned economy as practiced by Nazi Germany, Fascist Italy, and Communist Russia. Great emphasis was placed on State industries which have been characteristic of the Turkish economy since that time.

 

After Ataturk died in 1938 his governmental traditions were carried on by his lieutenant, Inonu, until 1950 when elections brought in Menderes. The Menderes  regime was, more or less, a reaction to the paternalistic policies of the Ataturk-Inonu governments which had appealed particularly to the peasant population which made up three-fourths of the people.

 

The Menderes government was overthrown in a revolution of 1960 and a new liberalized constitution was approved in 1961. A series of coalition governments followed, headed by Inonu, who continued to reflect the policies of the original Ataturk regime.

 

The Inonu government fell in early 1965 and, in forthcoming general elections, will likely be replaced by the Justice Party headed by Suleyman Demirel, a man with considerable business background who will likely implement policies favorable to free enterprise.

 

III. CURRENT STATUS

 

Three-fourths of Turkey’s 30 million people work in agriculture, which accounts for 40% of the national income and 70% of exports. Industrial development has been slow, with government business accounting for 40 to 50%  of output. Turkey has had a high imbalance of payments – about 400 million dollars a year – with the deficit made up by outside aid. The per capita income of Turkey is one of the lowest in Europe. Turkey has been slow to develop export markets which have remained almost static since 1953.   In addition, the military program puts a big load on the economy, taking about 30% of the budget.

 

IV. THE STATE ECONOMIC ENTERPRISES

 

The State Economic Enterprises, the SEE, are active in a wide variety of fields such as coal mines, steel mills,  textiles, glass, mines, lumber, and insurance. The State also owns and operates the railroad system, has control over the pulp and paper industry, much of the petroleum industry, and is expanding in fertilizer and chemical businesses. They tend to be largely inefficient and expansionary in nature.

 

V. DEVELOPMENT OF PRIVATE ENTERPRISE

 

The lack of a substantial entrepreneurial class in Turkey tends to limit the growth of private industry. Typically, the Turk is inexperienced in management and has little background in the concept of general public ownership of a corporation, The limited availability of risk capital has also served to restrict industrial development. Those enterprises which are labor intensive and capital light most nearly match the resources available within the Turkish economy.

 

VI AGRICULTURE

 

Turkish agriculture employs the bulk of the people and accounts for 40% of the national income. It is tied to traditional crops such as cereals, fruit, nuts, tobacco, sugar beets, and cotton. Principal exports have been tobacco, dried fruits, nuts, cotton, mohair and wool. Little has been done to develop such export crops as fresh fruits and vegetables to the available European market.  Great potential exists to improve Turkish agriculture and thus allow Turkey to become self-sufficient in its food supply as well as increase exports.

 

VIII. TOURISM

 

There is much in Turkey that should be of interest to the tourist, particularly along the Aegean and Mediterranean coastlines. This area is important in a historical and archaeological sense and there are many ruins of considerable importance and interest, which are just now being developed. The Turk appears to be a poor hotel-keeper. He somehow fails to develop a concern for the guest and what his needs are. Although the Turk is friendly, he does not appear to have the light, happy disposition for which so many of the inhabitants of other Mediterranean countries are noted.

 

IX. POPULATION CONROL

 

The population of Turkey increases about 3% a year and this substantial increase does much to reduce the effectiveness of its industrial and agricultural progress. Steps must, and are, being taken toward a family planning program that will bring this population growth more into line with that which the economy an justify.

 

X. GENERAL

 

Despite the many problems, there is a great deal that is encouraging in the Turkish picture. Much optimism rests upon a new class of Turk who has a more modern outlook and who is dedicated to moving Turkey forward. Many of these people have been trained in the U.S. and are now bringing to bear much of what they have learned here both in knowledge and in philosophy towards the solving of some of their country’s problems.

 

XI. CONTRIBUTIONS FROM THE U.S. FOREIGN ASSISTANCE PROGRAM

 

To date, a very large percentage of U.S. assistance to Turkey has gone toward the public sector with heavy concentration on the infrastructure, particularly road construction. One was struck by the quality of the modern main roads and the apparent good efficiency of the maintenance program for them.

 

The largest single project to which the U.S. has contributed has been the Eregli Steel Mill on the Black Sea. This steel mill has recently been placed in operation and is complementary to the older State-owned mill. It is expected that as the market for its products builds up the mill will become self-sustaining and should be making money within two years.

 

The U.S. has also played a major role in the field of education. Literacy training for military draftees has been a very effective program  The U.S. aid program has also been effective in assisting higher education programs. One is the Middle East Technical University in Ankara. Its President, Dr. Kurdas, is building a modern technical university. Interestingly, all courses are taught in English. This university is just getting started but it appears it will do much to upgrade the level of higher technical education.

 

The second school which Hewlett visited was called The Hacettepe Science Center. Its founder was Dr. Dogramaci. Dr. Dogramaci had been appointed a Professor of Pediatrics and from this position he was able to create a new young staff educated in modern medical practices. From this springboard he was able to build a completely integrated educational institution known as the Hacettepe Science Center. This now includes a College of Arts and Sciences, two Nursing Schools, a School of Dentistry, a School of Physical Medicine and a School of Graduate Studies – all basically supported from private sources.

 

Hewlett visited four companies in the Istanbul area – two in the private sector, one State owned, and one a branch of a major American company. One of the Turkish-owned companies was in the business of furnishing products extracted from corn, such as starch, corn oil, and corn sugar. The second Turkish company was in the insecticide business, based on chlorine chemistry. The third company was SEKA, a State-owned pulp and paper factory. The final plant was part of the Goodyear Tire and Rubber Company, and all the top management was American.

 

Hewlett sees American training as a strong influence in all these companies. One of the major roles that U.S. aid has played is that of lending assistance to the development of industries in the private sector and to those programs that will improve the management skill of Turkish entrepreneurs and business administrators. A pattern for this is beginning to take form.

 

XII. RECOMMENDATIONS

 

Hewlett makes several recommendations:

 

1. Every reasonable effort should be made to support the development of the private sector vis-à-vis the State-owned enterprises.
2. Continue the work with the Forest Service encouraging it to take steps leading toward a more effective utilization of the great forest reserves of Turkey.
3. Aid funds should be concentrated in relatively few areas, and the U.S. should try to do the best possible job.
4. One of the most productive long range programs that American assistance can foster is that of education.
5. The experimental program of the Agriculture Controlled Credit Bank deserves the active support of U.S. assistance.
6. Hewlett is quite skeptical that tourism will play an important role in the Turkish economy. This must be looked upon as a long term area and any funds expended should be in such areas as developing improved management practices, rather than attracting tourists into an area that currently is limited.

 

XII. FINAL COMMENT

 

Hewlett says he was highly impressed with the people administering the U.S. AID Program in Turkey. They showed a great desire to make “each dollar spent in Turkeyachieve the greatest return towards promoting the U.S. policy of making Turkey economically independent and self-sufficient with the next few years.”

 

 

Box 1, Folder 69 – General Speeches

 

November 23, 1965 – Turkey and Afghanistan, EE Faculty Luncheon, Stanford, CA

 

11/23/65, Outline of talk, handwritten by Hewlett on notebook paper. His date on the paper is 11/8/65 – see above

 

Hewlett provides a comprehensive review of his travels in both of these countries, covering history, economics, education, agriculture, problems, U.S. assistance….

 

10/27/65, Letter to Hewlett from Professor John Linville, confirming Hewlett talk to EE faculty on February 23, 1965

11/5/65, Copy of a letter to Professor Linville from Hewlett saying he has been having trouble reaching him.

September 1964, Copy of printed map of Stanford

 

 

Box 1, Folder 70 – General Speeches

 

December 6, 1965, Talk to Medical Sales Seminar, to HP Sales People, Palo Alto, CA

 

12/6/65, Outline of comments, handwritten by Hewlett on notebook paper

 

Hewlett talks about the importance of change, HP history, HP concepts of marketing, the outlook for medical instrumentation. He says “We are the right company, in the right place, at the right time.”

11/23/65, Copy of a memo from Carl Mahurin, listing the seminar participants

12/1/65, Copy of a memo from Carl Mahurin listing seminar agenda

 

 

Box 1, Folder 71 – General Speeches

 

January 5, 1966 – Talk to New Marketing MBAs, Palo Alto, CA

 

1/5/66, Brief notes for talk, handwritten by Hewlett Packard

 

Speaking about the problems associated with the assimilation of the sales representatives, Hewlett talks about stress saying it means a challenge, means an opportunity.

 

“A great opportunity for you to contribute to and help in the working of these problems. I hope that you find this interesting and challenging.”

 

12/23/65, Copy of a memo from Len Gibson to Bill Hewlett inviting him and his wife to a dinner affair.

12/27/65, Copy of a memo from Len Gibson (no addressee) listing the attendees with brief biographical facts.

Box 1, Folder 71 – General Speeches

 

January 5, 1966 – Talk to New Marketing MBAs, Palo Alto, CA

 

1/5/66, Brief notes for talk, handwritten by Hewlett Packard

 

Speaking about the problems associated with the assimilation of the sales representatives, Hewlett talks about stress saying it means a challenge, means an opportunity.

 

“A great opportunity for you to contribute to and help in the working of these problems. I hope that you find this interesting and challenging.”

 

12/23/65, Copy of a memo from Len Gibson to Bill Hewlett inviting him and his wife to a dinner affair.

12/27/65, Copy of a memo from Len Gibson (no addressee) listing the attendees with brief biographical facts.

 

 

Box 1, Folder 72 – General Speeches

 

January 12-15, 1966 – HP Management Conference, Monterey, CA

 

1/12/66, Folder contains many papers and notes of data for discussion

 

 

Box 1, Folder 73 – General Speeches

 

February 14-17, 1966 – Northwestern Medical Association Annual Meeting, Sun Valley, ID

 

2/14/66, Copy of program for the meeting. Hewlett appears to have been only an attendee, along with enjoying the skiing. The folder contains a rather erudite paper written by “Ken” which discusses Hewlett’s ski boots and the bindings for his skies, giving precise changes in the length of these resulting from changes in temperature.

 

 

Box 1, Folder 74 – General Speeches

 

February 24, 1966 – New Employee Indoctrination Seminar, Palo Alto, CA

 

2/24/66, Outline of remarks, handwritten by Hewlett on notebook paper.

 

Speaking to a group of new sales representatives, Hewlett discusses some sales techniques and emphasizes the changes underway from a small to a big organization. He says their education will be continuing – as is his to this day. He says “[Management] is going to be looking for people with real ability and leadership which in a decentralized organization is our most critical commodity.”

 

2/15/66, Copy of a memo from George Stanley to Bill Hewlett, giving some background information for his remarks to the seminar group.

 

 

Box 1, Folder 75 – General Speeches

 

March, 1966 – HP Board Meeting, New York, NY

 

3/66, Several pages of topics, facts and data, handwritten by Hewlett on notebook paper

 

 

Box 1, Folder 76 – General Speeches

 

March 15, 1966 – Talk To National Accountants Association, Palo Alto, CA

 

3/15/66, Outline of remarks handwritten by Hewlett on notebook paper.

 

Hewlett discusses HP problems in building international markets. He describes the changes starting in 1959 with HP headquarters in Geneva and a small manufacturing plant in Germany, talks about foreign governments, as well as the U.S Government. Among his concluding points he says:

 

“Need to be willing to adapt

Must maintain ethical standards

Need professional management

Much effort – much to be gained”

 

3/17/66, Letter to Hewlett from W. J. Massey thanking him for speaking to their group

3/30/66, Copy of a letter from Hewlett to W. J. Massey thanking him for the “attractive sterling pen knife.”

 

 

Box 1, Folder 77 – General Speeches

 

May, 1966 – Talk to YHP Sales Group

 

5/66, On two small pieces of paper Hewlett lists some items he intends to cover – in pencil, difficult to read

 

 

Box 1, Folder 78 – General Speeches

 

May, 1966 – Turkey Revisited

 

5/66, Copy of typewritten report of Hewlett’s second trip to Turkey. Hewlett’s first visit to Turkey was made in September/October, 1965, and his report on that trip is summarized in the speech file dated November 8, 1965. He revisited Turkey in May, 1966, and wrote another report which he considered a supplement to the first. A Summary of this second visit report follows.

 

POLITICAL CHANGES AND ENVIRONMENT

 

As predicted the Justice Party won a substantial victory in the elections last fall. The Republican Peoples Party, headed by Inonu, one of Ataturk’s old Generals was out. The leader of the Justice Party is Suleman Demirel, and he will be the new Prime Minister.

 

Hewlett also reports that there has been a change of President in the country as well. General Sunay was elected to replace General Gursel and is supposed to represent the politically “hands-off” faction of the Army.

 

The Demirel Administration

 

The Demeril Government has introduced two controversial bills. The first changes election rules which would make it harder for smaller opposition groups to return to power, and the second provides for a general amnesty which would free some remaining political prisoners.

 

Visit with Minister Demirel

 

Hewlett, along with the Ambassador Hart, met with the Prime Minister, and he reports on several subjects they discussed – such as Turkey’s State enterprises, high import duties, encouraging foreign investment, sources of capital for private enterprises, and agriculture.

 

STATE ECONOMIC ENTERPRISES

 

Hewlett, accompanied by Deputy U.S. AID Minister Wagner,  talked with the Minister of Energy, a Mr. Deriner, who oversees the Turkish Coal Industry, and with Mr. Behzat Firuz, Manager of the Turkish Coal Industry, a SEE. The coal operation runs a high deficit and Firuz said the subject of higher prices was extremely sensitive. Hewlett quotes Firuz as saying he was not in favor of SEE operations  and would be happy to see them abolished. Hewlett says Mr. Firuz “was the most superior person I have come across in a State-owned enterprise.”

 

The Turkish Forest Service has shown no great signs of being willing to cooperate with private industry in the development of their forest preserves. Turkey has a fine stand of suitable pulp wood trees, and as there is a continuing need for pulp,  Hewlett says this area would be ideal for the development of a sustained yield demonstration project.

 

The State Petroleum Industry is pushing its plans to produce PVC despite the fact that there is a Turkish company ready, willing and able to take on this production with the assistance of a U.S. firm, Dow Chemical.

 

Hewlett concludes with some examples of inefficiencies in various State owned operations and makes it clear he does not have great respect for the Turkish SEE system.

 

THE PRIVATE SECTOR

 

Hewlett says it does appear that aggressive and imaginative people can carve out an effective place for themselves in the private sector and he talks about one such person, Orhan Sertel. Mr. Sertel owns a fleet of trucks which have been used to haul oil from central Turkey to a Mediterranean port. A pipeline will soon eliminate the need for these trucks and Sertel has started a new fleet of refrigerated trucks to haul fruit and vegetables to Europe. This project appears to have great potential to earn much needed foreign exchange for Turkey if additional transportation equipment can be obtained. But there is a 100 % import duty on such equipment, so a given investment will buy only half as much equipment as it could with no duty. Hewlett says he pointed this example out to Prime Minister Demirel.

 

Hewlett met with one of Turkey’s principal industrialists, a Mr. Nejet Eczasabasi, President of Eczasabasi Pharmaceuticals. Mr. Eczasabasi has obtained license agreements with foreign manufacturers to allow him to produce their products in Turkey.  He  appears to have prospered in this tightly regulated field. As an example he took on the Ipana toothpaste  line and now has 74% of the toothpaste business in turkey. Hewlett says Mr. Eczsabasi is typical of some of the successful larger entrepreneurs in Turkey in that he is concerned as to how he can hold all of his operations within his family. He sees little need for the development of a capital market in Turkey.

 

Hewlett had lunch one day with Mr. Sehap Kocatopcu who is the President of Pesabache Glass company, which makes flat glass and stemware. Hewlett says Mr. Kocatopcu told an interesting story of their relationship with the Russians who were trying to penetrate the glass industry in Turkey – with political objectives in mind.

 

Hewlett describes two trouble spots involving oil and steel. He spoke with William Fricker of  the Mobile Oil Company who was very unhappy with the Turkish Government for having imposed a 40 cents per barrel tax on refined petroleum and will not allow this tax to be passed on to consumers. The net effect will be to cause these refineries to operate in the red. Hewlett feels this is such a flagrant case of persecution of the oil industry that they will probably be able to obtain some relief.

 

Hewlett found the Eregli Steel still in trouble with an improper capital structure and the costs of raw materials way out of line. Mr. Danis Koper, Chairman of the steel mill says they hope for a rollover of financing charges and expansion of their facilities. AID has obtained the services of a team of experts to make a survey of the overall situation. This is a serious situation because this mill is the largest AID undertaken and stands as a symbol of American prestige in Turkey. Hewlett says its failure would be a most serious blow not only to American prestige in Turkey, but in most of the developing nations of the world.

 

BANKS

 

Hewlett visited representatives of three classes of banks – the Is Bank which is a quasi-governmental bank, the Guarantee Bank which is strictly a private bank, and the Industrial Development which was established for this purpose.

 

Hewlett met with Mr. Bulent Yazici, the Manager of the Is Bank. Their conversation centered around the availability of funds to support a capital market. He, along with others, was not enthusiastic about the proposal to seek investment funds from Turkish workers in Germany [who evidently save money in Germany over and above what they send home to their families in Turkey.]

 

Yazici pointed out that in developing countries like Turkey, it is unreasonable to assume that a shareholder will be willing to invest, or even should invest, in an untried company through public subscription. Some intermediate financial organization is required that will back a new company during the initial critical years. This financial organization should be able and willing to sell its interest in this corporation to the public.

 

Hewlett talked with Resid Egeli, of the Industrial Development Bank, and his principal assistant, Bahaeddin Kayalioglu. Egeli echoed many of the views of Yazici, who is not only Manager of the Is Bank, but is also Chairman of the Industrial Development Bank. Mr. Egeli pointed out the desirability of legislation that would facilitate the development of the capital market. Although there is a bourse in Istanbul, a review of the daily transactions showed that most of the stocks had not been traded for many weeks or months. The U.S. Rubber issue was an obvious exception to this rule.

 

Hewlett says it was not clear whether Egeli was meeting the full obligations of a development bank.   There was some indication that he might be charging excessively high interest rates, and that he might not be rolling over his equity positions in successful companies early enough – preferring to hold them for their gains.

 

At the Guarantee Bank Hewlett met with President Cabir Selek, who had provided a great deal of information about the “unfair competitive tactics” of the SEE. Mr. Selek seemed to be meeting the challenges posed by the SEE rather successfully. Selek was concerned about the drying up of program loans for Turkey which have been an important source of foreign exchange.

 

AGRICULTURE

 

Hewlett met with two of the agricultural specialists in the AID office in Ankara. One project which had impressed Hewlett on his previous trip had been the Agricultural controlled Credit Bank program at Denizli. Apparently this project is still prospering and has prompted the Turkish Government to try and establish similar projects in other parts of the country.

 

Turkey still appears to have a lack of adequate agricultural programs at the universities and an associated extension program. The new university at Ergurum may permit some progress to be made in this direction. Turkey is in urgent need of an effective seed development program and is most anxious to get an expert from the Rockefeller Foundation to help on this problem.

 

TOURISM

 

On his first trip Hewlett was pessimistic about the prospect for tourism in Turkey. However, this time he says he sees tourism on the increase, primarily from Europe. Hotel accommodations are improving with a new hotel in Ankara under Swiss management.

 

EDUCATION

 

The only educational institution Hewlett visited during his second trip was Robert College in Instanbul. He says this is a fine institution founded by American funds many years ago. It has had influence all out of proportion to its size in Turkey due to the caliber of the people that it has educated and the quality of its educational content. The college has an enrollment of about 820 students – about 80% men. The engineering faculty is reported to be one of the most distinguished in Turkey and is currently planning to expand into the important field of sanitary engineering. It has two campus locations. The principal one overlooking Bosphorus and adjacent to the old Turkish Fort built in preparation for the final attack on Constantinlple, circa 1453, is absolutely magnificent.

 

However, the school is under heavy regulation and is having rather severe financial difficulties. It has an endowment of about 15 million dollars which is managed in the U.S. and has a budget of 1.5 million dollars annually. During the last few years AID has furnished about two million dollars annually in support for the college.

 

Restrictive regulations are also a burden. Certain courses must be taught in Turkish, regulations control faculty appointments and advancement, and importantly, the amount that may be charged for tuition and expenses.

 

ANTI-AMERICAN SENTIMENTS

 

Contrary to his first visit when he did not come across any particular anti-American sentiments, Hewlett says that during his last trip he sensed some anti-American feelings and learned about some others.

 

A serious example was a reported discussion between representatives of Mobil Oil and the Minister of Finance, Ihsan Gursan. William Fricker the top American at Mobil (and interestingly enough related to the Minister of Finance), had a meeting with the Minister to discuss some mutual problems. At one point the Minister expressed an intense dislike for Americans – said that Americans had Turkey on a stake – and other uncomplimentary comments. All this is particularly interesting because the Minister of Finance is the primary contact between the U.S. AID and the Turkish Government. And it may explain why  programs that have gone through the Minister of Finance have tended to drag at times.

 

Hewlett concludes his report with a statement of high regard for the quality of people that are working in the AID Mission in Turkey. He says “I am not talking just about the top one or two but some very dedicated and competent people at the second and third tier level. I could only admire the skill with which critical problems …were handled by the top people.”

 

 

Box 1, Folder 79 – General Speeches

 

June 6, 1966 – Engineering Meeting, Colorado Springs

 

6/6/66, One small piece of paper upon which Hewlett has written some points he wishes to cover

 

Apparently referring to products, he speaks of the problem of “how to catch up.” “Cannot go across the board – must rifle shoot. While guarding rear must move ahead.” Says impressed with 180.

 

 

Box 1, Folder 80 – General Speeches

 

June 7, 1966 – Loveland Engineering Management Meeting

 

6/7/66, Two “steno book” pages of Hewlett’s handwritten notes of data and ideas for his remarks

 

 

Box 1, Folder 81 – General Speeches

 

June 8, 1966 – Engineering Meeting, Location not given

 

6/8/66, Page of notes handwritten by Hewlett

Hewlett’s notes bear on the role of management and the role of headquarters

 

 

Box 1, Folder 82 – General Speeches

 

June 30, 1966 – Microwave Division Dinner, Palo Alto, CA

 

6/30/66, A page of notes handwritten by Hewlett

 

In talking to engineers about what makes for good engineering, Hewlett says: “I speak for bold ideas, unwillingness to accept old cliches . I speak for pushing your ideas – don’t take no for a manager. I speak for listening, for being willing to take the risk based on good analysis, i.e., for being a good manager in a decentralized company.”

 

 

Box 1, Folder 83 – General Speeches

 

July 27 and August 31, 1966 – Meetings with Westwood Oaks Home Owners’ Association, Santa Clara, CA

 

7/27/66, Apparently this Association had some reservations about HP building the Santa Clara plant, and this meeting was to permit an exchange of concerns and pros and cons. Hewlett’s notes are one page typewritten, and one handwritten page.

 

Hewlett’s written note says that he asked his wife what she would think about such a plant. He writes that she expressed concern about smoke, noise, acres of parking, traffic, and loss of property values. He concludes that “With this kind of introduction I thought I should tell you about HP as a company, and what its plans would be if it came here.”

 

From the typewritten points he lists such topics as what HP does, what it makes; who the customers are. He says HP does not make things for the government. He covers the typical division departments, and closes with telling why HP finds the Santa Clara site attractive, e.g., intellectual atmosphere, attractive place to live, climate, competent labor force.

 

8/321/66, Copy of a letter to David Kirby from Mrs. Jan Jeensby, of the Home Owners Association discussing the place for the meeting.

Undated, Memo, unaddressed, listing the people who are likely to be at the meeting along with an assessment as to whether they are pro or anti HP.

 

 

Box 1, Folder 84 – General Speeches

 

August 31, 1966 – Talk to Summer Engineering Students, Palo Alto, CA

 

8/31/66, Hewlett’s handwritten notes on the back of a site map

 

Hewlett says that HP still has the problem of how to market a more diverse line of product. Must move into [adjacent?] fields if continue to have new horizons. HP must use [care] in selecting new fields – must have some tie, must have good potential, must be able to make a contribution.

 

8/26/66, Memo to Bill Hewlett from Norm Williams discussing arrangements for a breakfast meeting with summer students. Attachments list names of students

 

 

 

 

Box 1, Folder 85 – General Speeches

 

September 22, 1966 – Dedication of HP Ltd. Scotland plant

 

9/22/66, Four pages of notes handwritten by Hewlett

 

Hewlett speaks of the short time of only 16 months since he attended the groundbreaking for this plant.

 

Hewlett says he would like to mention some of the HP policies on foreign operations.

1. “This is a British firm – although owned by an American company, guided by British law
2. British management –one American
3. Half of the Board is British
4. Allow to adapt to local environment”

 

He talks about the importance of locating near a university and cites the Edinburgh U. as an example.

 

Other factors guiding the selection of a plant site Hewlett says are people, housing, adequate utilities.

 

He closes saying “I hope that we can be a credit to this community that has done so much for us.”

 

9/22/66, Two pages of notes handwritten by Hewlett which appear to be an earlier outline of points he wanted to cover.

 

 

Box 1, Folder 86 – General Speeches

 

November 3, 1966 – New Sales Engineers Indoctrination, Palo Alto, CA

 

11/3/66, The folder contains no notes for Hewlett’s remarks.

10/19/66, Memo from George Stanley to Hewlett listing some social functions he may wish to attend

11/2/66, Memo from George Stanley to Hewlett giving him some background on what other managers have already said to the group

 

 

Box 1, Folder 87 – General Speeches

 

December, 1966 – YHP Shareholders’ Meeting, Japan

 

12/66, Notes for talk, written by Hewlett on back of program for Marketing Banquet, Sunday, December 4, 1966. Hewlett says he is sorry he has not been able to meet with each person – got too interested in talking about problems.

 

Reviewing results for the year, Hewlett says it has been a good year: orders up 27%, shipments up 24% to 203M, profits up 24%.

 

Hewlett says the YHP record is “most impressive, the first time in the black… a credit to Shojo, George and the whole team.

 

“A great job”

 

12/66, Several pages of notes written by Hewlett and headed “Review Results”

Talking about management he says he does not think Shojo is happy in management job, doesn’t like to make decisions, better in staff job. Now is a good time to make changes – after a successful year. He favors Katagami as a replacement – “But he would need help.”

 

Hewlett concludes his notes with a section headed, “Possible framework in which Katagami could operate.

 

1. Shojo to remain as president but be appointed Chairman of the Board
2. Modify by-laws permitting delegation of management to General Manager
3. Appoint Katagami to this position
4. George to give up VP position, but remain as director
5. Board appoint Executive Committee with Shojo and George meeting weekly. This would allow Shojo to spend more time at YEW and George more in planning and staff work.”

 

12/13/66, Copy of a letter from Hewlett to Richard Wheeler of the First National Bank in Tokyo, thanking him for arranging a breakfast to meet local people.

11/66, Statement of YHP earnings for the month of November

11/66, Note with typewritten figures on Order Records

 

 

Box 1, Folder 88 – General Speeches

 

December, 1966, Service Awards Luncheon, Palo Alto, CA

 

12/66, Several pages with typewritten listing the names of employees receiving awards and the number of years – from 5 to 25 years.

 

On a copy of this list Hewlett has written a few notes of comments he wanted to say.

 

He says we have just announced the best year in the history of the company. “Looking back,” he says, “it is the ideas that were generated in early years of the Company that were worked out by you and with you – Perspectives in Europe and Japan – things so obvious now, but not then. So, in handing out these awards they are not for ‘time spent,’ but for ‘contributions made,’ We are all deeply indebted to you all.”

 

 

Box 1, Folder 89 – General Speeches

 

December 15-17, 1966 – Business International Chief Executive Roundtable, Bermuda

 

Hewlett was a member of discussion panels at this conference, but did not present a speech.

 

6/22/66, Memo from Bill Doolittle to Hewlett telling him of the Business International roundtable and asking if he is interested in going.

7/12/66, Letter to Hewlett from Eldridge Haynes, President of Business International, inviting him to attend the roundtable meeting in December; a meeting agenda is attached

8/1/66, Copy of a registration form completed by Hewlett

8/8/66, Letter to Hewlett from Carol Kirschenbaum of BI acknowledging receipt of his $400 registration fee.

10/19/66, Letter to Hewlett from Eldridge Haynes they enjoyed meeting with him and look forward to seeing him in Bermuda. He asks that Hewlett return an enclosed  panel signup sheet. Also enclosed is a list of company clients of BI services

12/1/66, Copy of a letter from BI to Roundtable participants giving information on activities

12/12/66, Copy of typewritten travel schedule for Hewlett

12/15/66, Copy of sheet giving biographical information for major panel leaders

 

Box 2, Folder 1 – General Speeches

 

January 4, 1967 – Datamec Division Orientation, Palo Alto CA.

 

11/17/66, Memo to Hewlett from Ray Wilbur asking if he would be available to speak to the employees of Datamec, a recent acquisition

1/4/67, Copy of typewritten agenda for the meeting. No copy of Hewlett’s remarks is included in folder

 

 

Box 2, Folder 2 – General Speeches

 

January 11-14, 1967 – Management Conference, Monterey, CA

 

1/11/67, Copy of typed draft of Hewlett’s remarks

 

Introduction

 

Hewlett says the purpose of this session is to review both one year and five year programs in light of past experience.

 

“The year past,” he says, “is behind us for good or bad. The time is spent; the money is gone. The past is only important to the extent that it builds a platform for the present and the future and to the extent that we can learn and gain experience from the past to apply to the future.

 

“The only way to be infallible is to do nothing….Thus we come to the syllogism that nothing can be gained without some risk of failure. But this does not say that mistakes should be repeated. Therefore, it is important that at times we stop and look back – evaluating our successes and failures so that we may learn for the future.

 

“Two years ago we instituted a program of budgeting, first on a trial learning basis of six months at a time. Last year was the first year of full annual budgeting. It would be unreasonable to assume that those people involved in the budgeting process should be one hundred percent correct. …I have asked Ed Van Bronkhorst…to review critically last year’s performance both on a general base and also in comparison to what we said we were going to do in our budgeting forecasts. I have Austin Marx to give us his appraisal of the economic environment in which we will most likely find ourselves in ’67. Then I would like to take a few moments to review our ’67 budget forecast and in so doing, to draw heavily on our previous historical background. Then I would like to spend a little time reviewing the five year picture with you….I hope to draw some general philosophical conclusions about the meaning and implications of a five year forecast. And finally, Dave will windup the session with some rather specific comments about the year past and the year to come.”

 

HP Plans for ’67

 

The notes here are only in outline form, listing the topics to be discussed:

 

Comparison of ‘67 to years ’65 and ’66

Sales ’61 through ’67

Growth slipping – need to get momentum back

Profits: 10 year average 7%, push for 9.3% on sales

Push for 24% R.O.I in ’67

 

’67 and beyond

 

Discusses past forecasts in comparison to results

Look at forecasts

Five year cash flow

Comments on space

 

1/11/67, Two pages of handwritten outline by Hewlett of  what appears to be an earlier draft of comments

3/9/66, Memorandum from Cort Van Rensselaer sending managers result of a survey among them on their thoughts about the Monterey Conference held in 1966. He suggests they learn from it in preparing for the 1967 Conference.

12/7/66, Proposed agenda for the conference

1/3/67, Memo from Bill Doolittle to Bill Hewlett, and other managers, giving a list of HP international managers who will be in town for the conference

1/4/67, Copy of a memo from Austin Marx to all attendees at the conference giving transportation and room assignments

1/10/67, Copy of a memo from Austin Marx to workshop chairmen with instructions on how this will work

1/11/67, Copy of typed list of all attendees

1/11-14/67 Copies of many papers, charts and notes gathered from various sessions and discussions

 

 

Box 2, Folder 3 – General Speeches

 

February 28, 1967 – Annual Shareholders Meeting, Palo Alto, CA

No text of comments by Hewlett is in folder

1/20/67, Copy of printed Notice of Annual Meeting of Shareholders

2/28/67, Copy of drawing showing instrument display setup for meeting

 

 

Box 2, Folder 4 – General Speeches

 

April 1-3, 1967 – National Industrial Conference Board Meeting, no location given

 

4/1/67 Four 4×5” slips of paper with handwritten notes by Hewlett with outline of his remarks

 

The theme of the meeting appears to have been the “Specter of the day the world runs out of food” – taken from a contemporary newspaper article.

 

Hewlett says most suitable land is already in use – must improve what we already have, develop new approaches. Livestock and fish alternatives.

 

Need to extend educational programs. These are serious problems – need to get going.

 

 

Box 2, Folder 5 – General Speeches

 

May 4, 1967 – Sloan Seminar, Stanford

 

5/4/67, Hewlett agreed to participate in a question and answer session with the Stanford Sloan Fellows. The questions were submitted ahead of time and Hewlett’s handwritten notes are very brief. The areas presented by the questioners covered such subjects as international operations, government relations, organization structure, diversification and acquisition, management development, finance, marketing.

 

1/30/67, Letter to Hewlett from Carlton A. Pederson inviting him to anticipate in another Q & A session with Sloan Fellows

12/66, Typed list of internal and external development programs

 

 

Box 2, Folder 6 – General Speeches

 

May 31, 1967 – Talk to Loveland Engineers

 

5/31/67, Five pages of notebook paper containing an outline of remarks, handwritten by Hewlett

 

Hewlett talks first about the “Technical Gap” between the U.S. and Europe. He doesn’t specifically state it but the implication is that the U.S. is ahead of Europe. Although he says some “reverse” gap exists, e.g. nuclear, power, chemicals. He says the causes are complex – education, government, management, tradition. The greatest problem, he says, is computers. This is not a problem of U.S. vs. Europe, but “of IBM vs. the world.”

 

Talking about HP vs. Tektronix he says “HP underrated the problem and did not gear up to really overtake Tek.”  Result was HP succeeded only in spurring Tek on to better performance.

 

“The move to Colorado Springs was a set back,” he says. Need to settle down and “run Tek down over the long haul, adding that HP has greater resources in people, technology, and general  health.

 

Hewlett gives his conclusions:

 

1. “HP has always stressed balance between R&D – Production,  Marketing, and Finance.
2. HP role in scopes and pulse generators must now rest with R&D.
3. What I saw today gives me hope.”

 

 

Box 2, Folder 7 – General Speeches

 

July 24, 1967 – Marketing Seminar, Palo Alto, CA

 

7/24/67, This is another seminar for new marketing sales people. Hewlett was asked to give a welcoming talk on the first day. His very brief notes, handwritten on a sheet of notebook paper say he planned to talk about the importance of marketing, the “Tek” gap and Japan.

 

He notes “How the Company is run,” and the “good old days vs. the future.”

 

And he concludes with “Your job tomorrow.”

 

7/20/67, Memo to Hewlett from Aldo Palossi, reminding him of the forthcoming seminar, and giving a few ideas on subject material.

7/24/67, Copy of program for the seminar

 

 

Box 2, Folder 8 – General Speeches

 

August 8, 1967 – Summer Lab Engineers Luncheon, Palo Alto, CA

 

8/8/67, One typewritten sheet with topics for Hewlett’s remarks

 

Hewlett lists some questions and then provides some answers.

 

Why do we take these people on?

What do we gain from it?

What is the objective of the corporation itself?

Indeed, what should the objective of corporations be?

 

By way of answers Hewlett notes that “100 years ago, the only answer would have been to make the maximum amount of money for shareholders.” While saying that this may still be true for very small companies, he adds that “As companies grow, so do their responsibilities and what society expects of them”

 

This all may vary from country to country he says. “In Japan, life long employment; in pre-war Germany: [business was] an instrument of national policy; in France, feeling is that profits are slightly immoral. In the U.S. the more enlightened companies take very broad view of responsibility, i.e., not just to shareholders, but to employees, customers, local and state governments, and the general health and well being of the nation.”

 

“No system is perfect,” he says. “Many bad actors among corporations just as among people. Just as I feel people are intrinsically honest and well meaning so I feel about corporations for they are collections of people.”

 

8/8/67, Three pages of Hewlett’s handwritten with notes in preparation of typewritten talk

8/8/67, Copies of several lists of the summer students

8/3/67, Memo to Hewlett from Norm Williams discussing arrangements for the luncheon and suggesting some topics

1/1/66, Copy of the printed booklet “Hewlett-Packard  – A Statement of Corporate Objectives”

 

 

Box 2, Folder 9 – General Speeches

 

November 13-14, 1967 – Managers’ Meeting, Palo Alto, CA

 

11/13-14/67, Typewritten notes titled Summary-Management meeting – W. R. Hewlett and is unaccountably dated 1/12/68. It does appear these reflect Hewlett’s comments at the meeting.

 

Hewlett lists points of change for HP:

1. End of WW II
2. Plan for future growth by hiring people on spec.
3. Breaking out into a divisional plan
4. Establishing own sales organization

 

He says similar problems are now being faced:

1. Moving into the classic structure of a large corporation; “breaking away from the friendly advice of father Dave.”
2. Product line expanding – threatens to “burst wide open …unless it can adapt to challenges”
3. Increased responsibility flowing to divisions [brings] problem of control. He points to the problem of budgeting as an example of  “a failure to understand…the function of such targeting.”
4. How to use total assets of the corporation when such assets cross divisional lines
5. The continued role of International in developing world markets

 

“This is a period of winnowing. We are a corporation in change – good opportunity for the imaginative and creative individual.

 

Also dated 1/12/68 – but in the folder for the 12/13/67 management meeting: Typewritten notes identified as W. R. Hewlett notes

 

These notes give Hewlett’s comments on each of the usual management meeting slide charts covering 1967 operations. The charts and related handouts are included in the folder.

Box 2, Folder 10 – General Speeches

 

January 12, 1968 – Twelfth Annual Management Meeting, Palo Alto, CA

 

The Management Meeting was also held on January 22 in Colorado Springs, Colorado, January 25 in Paramus, New Jersey, and February 2 in Les Diablerets, Switz.

 

1/12/68, The only paper containing notes of a Hewlett talk is a two page handwritten paper by Hewlett, with the heading “M by O,” Management by Objective.

 

Hewlett writes that he and Dave make the same decisions – “matter of training,” – and he adds that if it doesn’t work “it is my fault.” Independent management thinking is a hard path, he says. Non-military type management pushes responsibility down to lowest level.

 

Role of Targets.

Targets are the glue that holds the corporation together – serve the role of planning and evaluation.

 

Hewlett writes that “We must learn how to do…this year. Targets are unacceptable. Called all managers together to develop more acceptable ones.”

 

1/2/68, Copy of a letter from Dick Reynolds to several managers in Geneva discussing arrangements for the forthcoming management meeting there

1/4/68, Copy of a letter from Austin Marx to  HP Managers discussing arrangements for the management meetings

1/9/68, Copy of a letter from Austin Marx discussing long range planning.

1/9/68, Letter from Wayne Briggson to Bill Hewlett providing some data for the management meeting

1/12/68, Copies of several charts and other data relative to business operations. These all stapled together as handouts for all meetings.

 

 

Box 2, Folder 11– General Speeches

January 29, 1968 – New Engineers Dinner, Waltham, MA

 

1/29/68, Three pages of notes handwritten by Hewlett

 

Under the heading of “General State of Health of Company,” he writes the “Last year good but not enough – last quarter down.”

 

Role of Targets

“Targets are a method of forced planning – prevent procrastination, indicate warnings of trouble areas, need to react.”

 

On the size of the engineering budget Hewlett says that it has been running less than 10% [of sales?], but last year was 12%. He says they will have to hold R&D down and let shipments catch up.

 

On the outlook for 1968 he says U.S. looks slow, international strong.

 

Hewlett talks about how HP looks at Engineering.

 

1. HP built by Engineers – products initially for engineers, but departure from the “for engineers” aspect.
2. Company makes its progress through new products – vintage chart
3. Hewlett says that experience has shown that when they are able to make a measurement more efficiently or accurately there is a market.
4. He says they are willing to enter new somewhat related fields: synthesizers, computers, desk calculators, ultrasound, – but he sees a limit to the “number of balls “ in the air at one time.

 

Talking about other factors Hewlett says that projects tend to be relatively small and many – therefore a good opportunity to have a say in what is done.

 

He talks about a few problems.

 

Reliability. There has been a sharp increase in the warranty rate, .9 to 1.34%. Partly the result of some of the above problems – willingness to gamble, encouragement of new ideas and techniques – and a relatively young engineering staff.

 

He says that a study has shown that some 75% of failures are due to components.

 

Inexperienced engineers tend to solve problems by using more parts, more complicated circuits, rather than analyzing the real problem.

 

Conclusion

Engineering imagination and creativeness –well executed – is the heart of the Company. It all starts at that point. He tells the new engineers that they have a real responsibility, and a real opportunity, to contribute to HP. Our problem is to provide the encouragement and stimulation to give you a maximum charge to achieve.

 

 

Box 2, Folder 12 – General Speeches

 

January 30, 1968 – Analyst Meeting, New Orleans, LA

 

1/30/68, There are no notes in this folder as to what Hewlett’s remarks were. He was invited to speak to the New Orleans Financial Analyst Society about HP – its background, where it is today, and where it is going in the future.

6/21/67, Letter to Hewlett from David L. Markstein, President Financial Analysts of New Orleans, inviting Hewlett to speak to their group

6/23/67, Copy of a letter from Madelen Schneider, Hewlett’s Secretary, to David Markstein saying Mr. Hewlett is out of town and will be back around mid-July.

8/17/67, Copy of a letter from Hewlett to David Markstein saying he would be available to speak to their group after the first of the year – January or February.

8/24/67, Letter to Hewlett from David Markstein suggesting January 30 as a good date.

9//12/67, Copy of a letter from Hewlett to David Markstein accepting January 30, 1968 for their meeting

1/8/69, Copy of a letter to David Markstein from Madelen Schneider giving Hewlett’s travel plans

1/10/68, Letter from David Markstein to Madelen Schneider suggesting Hewlett call him the morning of January 30.

1/16/68, Memo from Wayne Briggson to Packard, Hewlett, Ralph Lee, and Ed Porter, giving two months manufacturing results data

12/27/67, Handwritten letter to Hewlett from W. M. Snyder replying to an earlier letter from Hewlett, – a chatty personal letter saying he plans to try and come to New Orleans to see Hewlett

1/18/67, Copy of a letter from Hewlett to W. M. Snyder saying he is going to stay over the night of January 30 in New Orleans and could see Snyder then

1/19/68, Memo from Bob Brunner to Hewlett talking about some R&D work the Santa Clara [F&T] Division is doing on “fast transforms”

1/30/68, Letter to Hewlett from David Markstein thanking him for his visit

Undated, Copy of a sheet titled “Typical Analyst Questions”

 

 

 

 

Box 2, Folder 13 – General Speeches

 

February 27, 1968 – HP Shareholders Meeting, Palo Alto, CA

March 8, 1968, – Western Investment Forum, Group Palo Alto, CA

 

1/27/68 & 3/8/68, Several pages of handwritten notes and financial data by Hewlett covering information he plans to cover at these meetings

 

Some of the subjects Hewlett covers:

I   Last year’s Financial Data

1. Sales, Income, Profit, E/S,
2. Balance Sheet
3. Source and Application of Funds
4. P & L
5. Footnote #3
6. P. L. for year

 

II  Product Information

 

1. Computer
2. Medical
3. Nuclear
4. Precision Time

 

III General International Picture

 

1. Strong Increase
2. U. S. Exports Growing
3. Devaluation of Pound
4. Foreign Funds
5. I. C. Program
6. Oscilloscope
7. Development by foreign subsidiaries

 

IV  Return to domestic  Scene

 

1. Marketing
2. Minority Groups

 

V  Summary

 

Had a good year – not quite up to expectations, but still good.

Financially considerably improved over 1966

Strong development program

Strong international position

Share concerns about minority problems and will continue to work toward long term solutions to this increasingly serious problem

2/27/68, Copy of typewritten agenda for this meeting

3/6/68, Memo from Wayne Briggson to Hewlett with agenda for the Investment Forum

Undated, miscellaneous data sheets

 

 

Box 2, Folder 14 – General Speeches

 

May 14, 1968, Analysts Meeting, San Francisco, CA

 

1/14/68, Three pages of notebook paper with Hewlett’s handwritten notes on the material he plans to cover.

 

Hewlett says he wants to talk about a case history:

Not the most important

Significant and growing

Product of informal planning

Field of computation

 

He says about five years ago a small group began to promote an idea of program utility:

 

1. Voluntary where applied
2. Independence of divisions

 

In four years, after study by HP Labs, brought a small group from UC & C (?). Decision was made to design and build a small computer. Main reason: data reduction, customers want it.

 

The 2216 and the 2114

Limited objective of data reduction, danger of moving too fast and away from area of strength.

Problem of marketing a stand alone unit

 

Uses for Data Reduction

1. Dymec application
2. Example of micro wave application
3. Some stand alone

 

Customer Reaction

1. You must be in field
2. Take necessary steps

 

Program to Push Ahead

1. Straight in peripherals – Datamec tape, card reader,
2. Disc pac by Datamec

 

Development of Time sharing – Directed to Scientific fields

1. Our cost on time share
2. Decision to limit language
3. HP time sharing – own use

 

Entry into Desk Top Field

1. Again, push came from HP Labs
   1. Confluence of two schools of ideas
2. Decision to keep separate for computer
3. Description of 9100

 

Conclusions

 

1. Data processing and computer is part of field of instrumentation and data taking
2. Either instrument people more so or the computer people do – easy decision
3. So far, so good. 400% increase – hit from small losses
4. We think this will be an important field

 

4/15/68, Copy of a letter to Packard from Livingston Jenks, Jr. of the Security Analysts of San Francisco, discussing arrangements for H & P, plus other HP management people, to address their group

5/17/68, Copy of a letter from DP to Jenks giving names of management people, in addition to Hewlett who will attend

 

 

Box 2, Folder 15 – General Speeches

 

June 10-11, 1968 – Semi-Annual Managers’ Meeting Palo Alto

 

6/10/68, Hewlett’s handwritten notes for his comments on the first half of 1968

 

He discusses earnings, the balance sheet, and goes through the graphs showing various operations

6/10/68, Bound folder, a handout to meeting attendees, containing the agenda for the meeting along with copies of graphs and other data on operations

6/4/68, Letter to Hewlett from Bill Doolittle reminding him that he had said he would discuss the idea of having several HP managers serve on the Boards of subsidiaries at the managers meeting

5/29/68, Copy of a letter from Austin Marx to HP managers enclosing a copy of a letter from HP’s counsel wherein the counsel discusses  various legal implications of being large enough now to attract more government scrutiny on things like antitrust, restraint of trade, and so forth

 

 

Box 2, Folder 16 – General Speeches

 

August 12, 1968 – Summer Engineers Lunch, Palo Alto

 

8/12/68, Brief handwritten note by Hewlett indicates he spoke to the summer students about the HP organization and what was manufactured in each of the various divisions.

7/16/68, Memo from Frank Williams to Hewlett asking if he would be available to speak to the summer students – a list of these is attached.

 

 

Box 2, Folder 17 – General Speeches

 

August 20, 1968 – “How to Plan for Management in a Growing Organization, WESCON, Los Angeles

 

8/20/68, Notes for speech handwritten by Hewlett.

 

Hewlett puts a sub-heading on the title for his talk to say that he wants to put “particular emphasis on the critical period when the company must pass from the direct control of the original entrepreneur to an organization with delegated responsibilities.”

 

He describes several types of companies in terms of their growth pattern:

 

One would be the company which starts with a major idea or product and then gears up to develop it with a full blown organization. Xerox is an example he says

 

Another example is the company that grows through acquisition – a Litton

 

The third example he gives is the company that starts from scratch and grows from within. He says he is familiar with this area and I would like to talk about this type of company.

 

The Growth from Within Company

 

He says this is one of the most common types. There is a low investment of capital, direct involvement in technical aspects, and the company grows fast.

 

Some problems develop: lack of previous management experience, inadequate capital, no management development program – so many current problems can’t worry about training.

 

Hewlett gives some thoughts on various problem areas:

 

Growth rate of annual sales must equal the return on net worth after taxes – if not the entrepreneur may lose control

 

On markets he points out that some thin markets move very rapidly – have to get in and get out

 

Even if original management is successful in solving financial and market problems the character of the entrepreneur can lead to other problems. He may be ruggedly independent, self reliant, effective in one or more areas that inhibit delegation of responsibility. Difficult for such a manager to operate in a larger organization where he cannot call the shots.

 

Hewlett says the companies with which he is familiar who have made a successful transition have been able to do so because:

they could delegate substantial responsibility

they recognized contributions

they provided adequate opportunity to share in the profits of the company

they encouraged vertical mobility within the company

 

He takes a look at HP

 

By 1952, the first year HP exceeded $10 million sales they had:

The present VP of marketing as head of marketing

The present VP of R. & D as head of development

One of the VPs in operations as head of production

By 1953 present VP of Finance in a key position in the department

 

In 1947 5 of 8 future VPs were with the company

In 1953 had 7 of 8 VPs with the company

Of managers of present product divisions (12), 5 were with the company in 1952, 5 came with the company since 1952, and 2 came into specific management jobs.

 

Problem of what to do with early employees who are unable or unwilling to take on more responsibility. May not be necessary to get rid of them – many important jobs to do, once over the shock of demotion.

 

Need to introduce a formal management training program.

 

A formula of things to do at an early stage:

 

Start looking for good people with growth potential

Be willing to delegate responsibility to them even if they appear to be only ½ as efficient as you

Try and share the financial benefits of growth

Provide every opportunity for vertical mobility

 

And at a later stage:

 

Be willing to fit employees into the organization early

Keep doors open to all in the organization who are interested and qualified to manage

Be willing to hire senior people from the outside – keep organization from becoming ingrown

Start developing a management bank through employment and training of  professions interested in management

 

8/30/68, Earlier draft handwritten by Hewlett

8/30/68, Newspaper clipping covering speech

8/30/68, Typewritten list of panel at WESCON

8/5/68, Copy of a letter from Don Hoefler of WESCON to Hewlett and panel members indicating the part each will play

10/23/69, Copy of a request from North American Rockwell Corp. for the text of his talk. Reply from PR Secretary Byrd Beh says he did not have a prepared text.

Undated, list of HP managers and the date they started with the company

 

 

Box 2, Folder 18 – General Speeches

 

September 12-14, 1968 – Importance of Higher Education in the Ability to Attract Industry, Federation of Rocky Mountain States, Great Falls, Montana

 

9/12/68, Copy of the full text of Hewlett’s speech as included in the bound booklet titled “Proceedings of the Federation of Rocky Mountain States, Inc.”

 

Hewlett clarifies that there are many factors that companies weigh when considering a plant location, and education is an important one. He says he would like to approach the subject by reviewing some of HP’s activities in the field of education.

 

He reviews HP’s Honors Cooperative Program with Stanford where employees can obtain advanced degrees while continuing to work full or half time. Since the program was started 15 years ago about 300 advanced degrees have been granted to HP people. HP also has similar programs with Santa Clara University and San Jose State.

 

HP has close ties with Colorado University in Colorado Springs and with the University of Colorado in Boulder, both in training HP people and in providing consulting services.

 

Hewlett talks about similar programs underway in other companies – Motorola with Arizona State University in Phoenix. In addition he mentions General Electric, Goodyear, Sperry-Rand, and others.

 

Hewlett also talks about the importance of research in universities – to generate new ideas and new knowledge.

 

On the role of industry.

 

Hewlett defines the role of industry as “the generation of technology and to use the products of research. Roles of education and industry work together but they are independent. One should not dominate the other.

 

Technical schools are also important. He puts the need for technical education on a par with the need for higher education. Industry has close ties with technical colleges as well, maybe closer than with universities. Industry can supply people, instructors, and can make special equipment available.

 

Hewlett ends by submitting and answering the question: –
“How can research attract and hold industry?” He says they can do this by “providing an under girding to produce a meaningful program of higher education. It can also provide a higher intellectual climate in a community that is so important to industry, which must in turn attract and hold creative engineers and scientists.”

 

9/12/68, Bound booklet titled “Proceedings of the Fourth Annual Meeting, Federation of Rocky Mountain States, Inc,” This contains the complete texts of the remarks of the major speakers, including Hewlett.

9/12/68, Three rough drafts of Hewlett’s speech in his handwriting

Undated, Copy of typewritten text, which appears to have been written by Hewlett, and which is titled “Importance of higher Education in the Ability to attract and hold Industry.” This appears to have been his summary of various discussions held in preparation for the above speech.

4/17/68, Memo from Hewlett to “File,” saying he had been invited, by Jim Fletcher of the University of Utah, to speak at the Rocky Mountain Governors Conference

6/18/68, Letter to Hewlett from Governor John A. Love of Colorado, sending him a made in Colorado attaché case, which he says is “one of the primary symbols of business in the nation today”

6/26/68, Copy of a letter from Hewlett to Governor John A. Love thanking him for the attaché case – made in Colorado

7/15/68, Copy of a letter to Hewlett from W. S. Partidge, of the U. of Utah, sending  a report of the 1967 meeting of the Federation of Rocky Mountain States, plus an agenda for the forthcoming conference in September

8/8/68, Memo to Hewlett from Chick Alexander enclosing background informational material for use in preparing for the September conference

9/3/68, Memo to Bill Terry from Hewlett giving information on HP operations in Colorado

9/17/68, Letter to Hewlett from Donald F. McMahon of the Federation of Rocky Mountain States, thanking him for his participation in the Conference

9/25/68, Copy of a letter from Hewlett to William A. Shinnick of the U. of New Mexico, sending information on HP’s Honors Co-op Program with Stanford

8/30/68, Letter to Hewlett from H. W. Welch, of Arizona State, sending material and comments relevant to Hewlett’s forthcoming talk

9/25/68, Copy of a letter from Hewlett to Dr. H. W. Welch of Arizona State, thanking him for his letter

9/25/68, Copy of a letter from Hewlett to Lloyd A. Calhoun of the New Mexico Electric Service Co.,  sending a copy of the site selection factors used by HP

9/3/68, Letter to Hewlett from Paul A. Elsner, Community Colleges Division, State of  Colorado, sending information about the Community College Program in Colorado

9/25/68, Copy of a letter from Hewlett to Paul A. Elsner thanking him for the material he sent

9/30/68, Letter to Hewlett from L. Ralph Mecham, asking for a copy of Hewlett’s speech at the Rocky Mountain Conference

10/3/68, Copy of a letter from Hewlett to Ralph Mecham saying he spoke only from notes and does not have a copy of his speech

1/10/68 Copy of a letter to L. Ralph Mecham saying he recently received a copy of the proceedings at the conference which contained a copy of his speech, which he encloses.

Various dates, Copies of various kinds of background material collected by Hewlett in his research for the Conference

 

 

Box 2, Folder 19 – General Speeches

 

October 29, 1968 – Security Analysts’ Meeting, Palo Alto, CA

10/24/68, Memo from Dave Kirby to Hewlett enclosing an outline of information for talking to the analysts, plus some proposed news releases. The topics covered in the outline are listed below.

 

 

The major topics covered in the outline are:

Overall picture

International

Medical

Analytical

Data Products

Organizational Developments

Strengthening International Operations

Increasing Plant capacity

Introduction of John Young – a biographical statement is attached

 

10/29/68, Typed list of analysts expected at the meeting

10/15/68, Letter to Hewlett from Otie T. Bradley, Jr. thanking him for speaking to their group of analysts

11/12/68, Letter to Hewlett from John M. McCarthy thanking him for speaking to their group

Undated, Two statements discussing minority hiring and affirmative action activities at HP

 

 

Box 2, Folder 20 – General speeches

 

Undated, 1968 – Talk to Menlo Park City Council

 

Undated, 1968, Four pages in Hewlett’s handwriting outlining his comments

 

I  Hewlett starts by telling why he is here

Not as a resident or as an employer

Talk about a community problem – not Palo Alto’s, not Santa Clara’s, not Menlo Park’s – but these cities are a close enough group to be effective. [ It is apparent he is talking about minority hiring and affirmative action.]

 

II   Some steps industry in the area is taking

 

Using HP as an example, Hewlett talks about job fairs – HP hired 58, lost only 2

 

Hard core employment – objective to hire 100,000 before 1969

Lockheed’s program

 

OICW – Opportunity Industrialization Center, West – receives much corporate support

 

Cooperation with schools – tutoring, Ravenswood

 

III Counterpart Program

 

Kemp Miller, from HP, assigned full time to this program. Ask them to consider his suggestions, – if some aspects not acceptable, work with him and his group on these pressing problems.

 

He assures the Council that great progress can be made when all aspects of a community work together – government, business, industry – and private citizens.

 

Undated, two earlier drafts in Hewlett’s handwriting

Box 2, Folder 21 – General Speeches

 

January 10, 1969 – Thirteenth Annual Management Meeting, Cupertino, CA

 

This meeting was also held in three other sites:

January 22, 1969 – Eastern Sales Region, Paramus N.J.

January 24, 1969 – Greeley CO

January 31, 1969 – European HQ. Geneva, Switzerland

 

1/10/69, Handwritten notes of comments Hewlett made at all meetings

 

I  Introduction – Hewlett discusses Packard status, namely that he is leaving to assume the duties of Deputy Secretary of Defense in Washing D. C.

 

II  HP Without Dave

 

“[Dave and I] have worked together for 30 years. In principle – think the same, act the same, have been able to sharpen our ideas against each other.

 

“In all 30 years Dave and I had only one disagreement – it was sharp, it was very intense, it was also very brief. We discovered [it was due to] a misunderstanding of what the other person meant. We were in fact in complete agreement but did demonstrate that each was fully prepared to fight for our principles.

 

III HP With Dave

 

“Despite general agreements we are not the same people

 

“I will tend to operate slightly differently than Dave, in detail, in the way I work with the people around me.

 

“A corporation is never one man, or it never should be. Its strength is in the collective ability and dedication of its people. The day Dave and I hired Harvey Zieber  we lost ability to make all decisions and we have been losing it ever since. In the long run the boat cares little whether the pilot is left or right handed as long as the course is steady.

 

 

“There is no disagreement at all between Dave and myself as to where the boat is going or how it will get there.

 

“The organization of Group structure which we will talk about was fortunate in timing and completely independent of Dave’s appointment, but could not have come at a better time. Its implementation has delegated responsibility out of the executive office into lower operations echelons of management. [Note to himself to introduce John Young]

 

“The fact is that the hardest of all jobs will be to fill Dave’s shoes – true, we were both running at half throttle in a sense with our outside activities. These pay off in long run but this was a luxury that I think Dave and I knew in our hearts could not last forever. In a company that needs all the help it an get this was a disproportionate distribution of assets to have two people in position of top management where most companies are in many cases happy to have one. {and I consider myself capable}

 

“To help fill this vacuum left by Dave, I have asked both Ralph Lee and Noel Eldred to serve as Executive VPs. Noel’s appointment in addition to his own very considerable ability reflects the increasingly outward looking character of our company with its more diverse and expanding areas of activities.

 

“Ralph’s appointment reflects the requirement for a firm grip on what is going on within the company – Groups and Divisions are fine, but if they don’t work and pull together then you have all disadvantages of largeness with none of the advantages.

 

“Finally, with this grouping of strength here in the Palo Alto area it is increasingly important to assure that the voices in the hinterland are heard and listened to. I have asked Ed Porter to come back and take on the role of Operations V.P. with responsibility to speak for and represent the non-P.A. divisions. This is a considerably more active and responsible position than the somewhat amorphous position of the job with the same title of 3 or 4 years ago.

 

“Finally, I need all of your help and dedication to really keep this operation a ‘going Jesse.’ Without your help all this execution would do no good.”

 

1/10/69, Copies of many charts, graphs and tables for the management meeting. Included is a separate folder titled Long Range Plans. These are attached to a memo from Austin Marx to H & P and the Executive V.P.s. Marx says these are the initial look at the plans submitted by the Manufacturing Divisions.

 

 

Box 2, Folder 22 – General Speeches

 

February 6, 1969 – Peninsula Manufacturers Association Dinner, “Industry Man of the Year” Award to Packard, Palo Alto, CA

2/6/69 Four typewritten sheets titled “Notes for WRH talk to PMA”

 

On behalf of Packard, Hewlett apologies for his not being present to accept this award. He says Packard planned to be here, but had to leave a couple of days ago to go find his boss, Mel Laird. Hewlett adds that, as he understands it, Packard never did find Laird, and, in fact, is still trying to find his way back to his office in the Pentagon.

 

Hewlett says he knows the award being presented to Packard is based to a great extent on his efforts in the field of human relations. This has been an area of great concern to Packard, he says, and one to which he committed his energies and talents.

 

Hewlett says he knows Dave would say that, although we have made progress in trying to solve the human relations problems in this area we have just begun to scratch the surface. He quotes Packard as saying that progress comes not from force, but from “self enlightened action of all concerned.”

 

Hewlett says “That is the challenge he would leave with us tonight if he were here.”

 

2/6/69, Earlier draft of Hewlett’s talk, handwritten in pencil on notebook paper.

1/8/69, New release from Peninsula Manufacturers Association  announcing the award to Packard

2/6/69, Memo from Dave Kirby to Hewlett giving some background and pointers in preparation for the award event

2/7/69, Letter to Hewlett from John J. Murray, Jr. thanking him for his “reminiscences and high tribute” to Packard

2/13/69, Letter to Hewlett from William E. Roberts, Jr. President of Ampex thanking him for standing in for Packard, adding that he, himself, was not able to attend as he was in the hospital

2/28/69, Copy of a letter from Hewlett to William E. Roberts, President of Ampex, thanking Hewlett for standing in for Packard at the award ceremony

 

 

Box 2, Folder 23 – General Speeches

 

February 25, 1969 – United Fund dinner, Palo Alto, CA

 

2/25/69, Typed notes for talk

 

Hewlett talks about his past association with the Community Chest – back in 1957. Says he learned “an awful lot” about the agencies. Says he has continued to maintain an interest “in this type of operation” through the San Francisco foundation and HP.

 

Hewlett talks about change and the need for organizations to change with “the tenor of the times… either by established agencies changing their pattern or by dropping some agencies who are moribund – replacing them with new agencies that more accurately reflect the needs of the community.

 

Hewlett says HP is “spending more on minority problems than on our contribution to the United Fund.”

 

He says that if HP were forced to cut back on their contribution program they would have to evaluate which area represented the more optimum use of their funds.

 

He adds that he thinks some of United Fund’s problems in getting support from local branches of national companies “rests exactly on this point.”

 

Hewlett talks about ways the Fund might seek broader support:

 

Got to get the top people involved – much variation between firms. Need to get to know the top policy makers, learn why low level of support – maybe something they don’t like about United Fund. He says he has no inside knowledge on this, but if support is lacking there must be a reason.

 

Hewlett says he sees the tide turning. Business leaders are recognizing the need to support local programs. He urges them to “look at themselves as others see you – are you staying contemporary…fit the modern scene?”

 

“I commend you on your efforts…you can do better…the need is there.”

 

 

Box 2, Folder 24 – General Speeches

 

February 25, 1969 – HP Shareholders Meeting, HP Palo Alto plant

 

2/25/69, Text of talk he intends to give at the meeting, handwritten by Hewlett.

 

Hewlett introduces himself and briefly runs down the agenda for the meeting. He says he will report on the business performance of the company, they will take care of some business items – electing Board members, approving a new stock option plan -–and then talks by two Group Managers. Tours of the 1501 Page Mill site will be available afterwards.

 

After reviewing operations data Hewlett talks about Packard’s departure to assume the duties of Deputy Secretary of Defense in the Nixon Administration. He notes that Packard placed all of his stock in trust while he is in Washington, and these shares will be voted at this meeting by a representatives of the Bank of America.

 

Hewlett talks about Packard’s departure in some detail, saying:

 

“I don’t think that there is a person here who will not miss him greatly. It is fortunate indeed that Dave and I had a very special relation here at the Company,  for although Dave was the chief Executive Officer both in name and in fact, we shared the management responsibilities of the Company to a degree that is not common in American businesses. We had worked together for so long that, given the same set of facts, there was a very high probability that we would reach the same conclusion, albeit by different reasoning.

 

“Further, we made it a point to keep each other informed of our activities and of our thinking. Thus, although the loss of Dave cannot be minimized it will have less effect than if our relationship had been otherwise.

 

“It was also fortunate that sometime last summer we had planned a reorganization of the management structure which would provide for further delegation of responsibility from the top office to the operating divisions. The first steps of this plan had already been implemented at the time that Dave was first approached to accept a position in the government.

 

Hewlett goes on to name the new Group Managers: John Young, head of the Palo Alto Electronics Group, Carl Cottrell, head of the Data Products Group. Hewlett also introduces two new Executive Vice-Presidents, Ralph Lee and Noel Eldred.

 

Hewlett describes some of HP’s activities in “the field of the minority problems” saying, “We believe strongly that this is not a problem that an be solved simply by turning it over to the government. There is much that individuals can do, there is much the community an do , and there is much that industry an do.”

 

Hewlett closes with reference to their policy on dividends: “…in view of present and anticipated expansion, and the resultant need for plant and working capital, I do not anticipate any change in our present dividend rate.”

 

2/25/69, Printed Notice of Annual Meeting of Shareholders

2/25/69, Two additional pages of notes written by Hewlett with various operational figures

2/25/69, Typewritten suggested agenda for the shareholders meeting

2/25/69, List of Directors, Officers and Managers attending the meeting

2/25/69, Typewritten list management’s slate of nominees for Director, and biographical data for each

2/25/69, Typewritten description of 1969 Incentive Stock Option Plan

2/25/69, Several pages of tables and miscellaneous reference data

 

 

Box 2, Folder 25 – General Speeches

 

February 27, 1969 – How to Make R&D Pay, White, Weld Technology Conference, Pebble Beach CA

 

2/27/69, Copy of typewritten text of Hewlett’s speech based on an edited transcription

 

Hewlett says the first step toward making R&D pay is to “employ smart, well-trained, creative people.” He adds some additional factors:

“An atmosphere that is conducive to constructive and creative thinking

 

An evaluation system that can select the best and most appropriate ideas for further development

 

A control system that ensures that a selected program will progress according to a schedule and still remain viable at any point

 

An evaluation or feedback system that looks back and asks, ‘Did we do what we set out to do, and if not, what sent wrong.’

 

Emphasizing the importance of good people, Hewlett states again that it is not the total dollars you spend on R&D, it the quality of the people doing the R&D. And he gives a corollary to the effect that getting good people is not just a question of pay – although that is obviously a factor. He gives a number of factors that he feels rate equally high:

 

“People want an interesting job and appreciate the opportunity to participate in technical management early in their career.

 

People want an organization that is receptive to new ideas, not one that has a closed mind.

 

They want an organization that believes ideas come from the bottom up, not the top down

 

Most would like to have the opportunity to further their education

 

They hope they can have a management that is understanding of the development process and reactive to it.”

 

Talking about the R&D system at HP, Hewlett says one of the characteristics of their program is that they have a large number of small projects. Working in an atmosphere where there are a number of smaller projects gives the younger engineer the opportunity to have his inputs more quickly recognized, and more likely be given some administrative responsibility for the project.

 

Hewlett says that the process of selecting which project should be developed is one of the most critical steps in running an engineering program. He says HP has used what they call “an index of needs,” a sense of what people would like to have. It involves keeping your eyes open for new technologies that may be applied to solve particular needs. To use this method it is necessary to have a very good knowledge of the field, he acknowledges.

 

Hewlett addresses the question of payout, saying, “What kinds of measurements can be used to determine possible payout?” He says there are two elements involved in determining payout: – the probable cost of the development program, and second, assessing the market’s reaction to a new product.

 

Hewlett says they have standardized a procedure for determining these numbers, and they call the result a “return factor.” The typical return factor says that for every dollar spent on engineering you will receive four to five dollars in before-tax profit. He emphasizes that other factors may need to be considered to fit individual situations – time being one of them.

 

Hewlett moves on to talk about the organization of the company and the R&D program. He explains that HP has some fourteen “reasonably autonomous” divisions and each has its own research and development organization. In addition they have a central corporate laboratory, HP Labs, with what he calls a “wide open charter to investigate interesting new concepts and ideas. About 15% of total Company R&D funds are spent by this group.

 

Another important step after having decided on a development project is to set up a schedule and establish good standards for performance and timing. He notes that it is in the nature of engineers that they can always see some improvements that could be made if only they had another six months to work on it. He says he and Packard used to spend a great deal of time going around putting a great deal of emphasis on keeping to the development schedules.

 

Another important step is the post development evaluation to review how well cost and market predictions were met, even to knowing who was optimistic and who was pessimistic about the project, so you an calibrate their comments next time around.

 

In summary Hewlett gives an answer to the question “How do you make R&D pay?” He says “I think you get good people and then you let them grow. Put them in the sunlight where they can see the real world and react to it. Most of all you give them tender loving care and understanding and guidance, because they are really the ones who are going to determine the future of your company.”

 

3/14/69, Letter to Hewlett from George B. Shott sending a typewritten copy of the transcription of this speech and asking that he edit and return it. The copy to be edited is attached – notations have been made on it.

2/27/69, Outline of speech handwritten by Hewlett

2/27/69, Copy of typed agenda for the Conference, with attached list of guests

10/25/68, Copy of a letter to Hewlett from George B. Shott of White, Weld & Co., inviting Hewlett to speak on the subject to R&D at a technology seminar they are organizing

10/31/68, Copy of a letter from Hewlett to George B. Shott saying he cannot make the suggested dates for the meeting

12/23/68, Letter from George B. Shott to Hewlett  thanking him for agreeing to speak at their conference

3/4/69, Letter to Hewlett from George B. Shott thanking him for participating in their Conference

3/4/69, Letter to Hewlett from T. C. Pryor of White, Weld & Co., thanking for speaking at their Conference

 

 

Box 2, Folder 26 – General Speeches

 

March 26, 1969 – Analyst Breakfast, New York, NY

 

3/26/69, Outline of talk, handwritten by Hewlett

 

Hewlett discusses Packard’s departure to Washington D. C. and the minimal effect this will have on the organization. [See speech January 10, 1969 also]

 

He talks about the changing nature of the instrument business – price increases, the role of integrated circuits, programmable systems, and the role of computers. “When it comes to meeting the needs of our customers we intend to make it unattractive for companies strictly in the computer business to come between us.”

 

Hewlett discusses other areas: Colorado springs, all of Palo Alto, New Jersey, Analytical, Medical, International.

 

3/26/69, Copy of a general letter to Security analysts inviting a group of them to join HP management people at a breakfast to be held on March 26^th.

3/26/69, Copy of typewritten list of analysts invited to the breakfast

3/18/69, three identical letters written to Walter Frank, Sr., Joseph Mindall, and Mortimer Marcus inviting them to the breakfast meeting

 

 

Box 2, Folder 27 – General Speeches

 

March 28, 1969 – Atlanta Sales Meeting

 

3/28/69, Outline of topics to cover, handwritten by Hewlett

 

Hewlett discusses operations financial data and production figures.

 

Using the metaphor of a church sermon he speaks of their latest missionary program, some of the fallen, and passing the plate. He ends with “Now go forth and sell and sin no more.”

 

HP’s New Look

 

HP’s roots have been in a narrow field – With newer fields, computer, medical, analytical, must organize to go from a multimillion dollar company to a billion dollar company. Group structure designed to help.

 

Need to couple with customer.

 

Product line has grown from 480 products in 1962 to 2160 in 1969. Average order was $400 in 1959 – $2200 now.

 

To customer we are only HP.

 

He admits we may seem confused and unorganized and describes two approaches to change:

 

A master plan from on high; or a plan that grows from the bottom up. The latter may seem fumbling, but it is the best way. Grounded in the belief that the people most directly concerned must have a direct and strong influence in development of a plan. That is your role.

 

“This is the fundamental difference between a completely planned economy and a reactive one. This does not mean there is no planning – it is necessary to concentrate effort, but real management must come from bottom up – from you. That is your benediction.”

 

 

Box 2, Folder 28 – General Speeches

 

May 16, 1969 – HP Board Meeting, Geneva, Switzerland

 

5/16/69, Text of talk, handwritten by Hewlett

 

Hewlett welcomes the Board members to the dedication of HP’s new Headquarters in Europe. He reviews history a bit – how before the Treaty of Rome which created the European Common Market, HP marketed its products in Europe through independent sales representatives. The Treaty made it evident that Western Europe would be a major market for HP products. Two steps were necessary:

 

Strengthen marketing program by establishing HP’s own marketing offices in the principle countries of Europe…

 

Secondly, the need to establish an HP headquarters somewhere in Europe to coordinate and control the expanded European organization. Geneva was decided on because of its proximity to several major markets, its excellent transportation, ease of doing business across borders – and we were made to feel we would be welcome, that, in time, we could become accepted as a member of the community.

 

Hewlett says that the decision to place HP’s European Headquarter in Geneva was “one of the happiest that it has been my privilege to make.”

 

He talks about the growth of business in Europe – “We will do more business in Europe alone than we did for the whole world just ten years ago.” He pays special tribute to HP’s Swiss Directors: Mr. Max Gamper, Mr. Maurice Merkt, and previously, Mr. Max Paul Fry.

 

 

In closing Hewlett says: “In the decision making process that every executive must master it is important that you review past decisions , not so that you may find fault, but so that you may learn from them. If I had the ability to remake the decision that brought us to Switzerland – to Geneva – ten years ago, I would make the same decision with even more enthusiasm than I did on that day in November of 1958 when we first incorporated Hewlett-Packard SA.”

 

5/16/69, Earlier draft of talk, handwritten by Hewlett

5/16/69, Copy of  list of dinner guests: U.S. Directors, European Directors, and HP Employees – and spouses

3/7/69, Copy of a letter from Hewlett to Max Gamper, thanking him for the “wonderful weekend,” he and Mrs. Hewlett had skiing.

 

5/16/69, Note with Dick Alberding’s address in Vaux, Suisse

5/16/69, Copy of list of managers and secretaries in Geneva

 

 

Box 2, Folder 29 – General Speeches

 

May 23, 1969 – London Dinner

 

It is not clear who the guests are at this dinner – probably HP people from Bedford and/or Slough (?)

 

5/23/69, Outline of talk handwritten by Hewlett

 

Hewlett states the occasion as the 10^th Anniversary of HP in Europe. He says Europe and the U.K. contribute 20% of  total HP sales. This is a chance to visit the plant here.

 

Hewlett talks about HP citizenship objectives

Support for R&D

Have not withdrawn funds – grow through reinvestment

U. S. companies should be prepared, on occasion, to report on what they have added or subtracted to economy of country.

Expresses appreciation for the level of cooperation received both from British industry as well as British Government

5/23/69, Note, in Hewlett’s handwriting, on stationary of Royal Garden Hotel, London,  saying “a corporation cannot be separated from the society in which it lives. It has a responsibility to it and draws its strengths from it. It is incumbent, therefore, that HP as a corporation and its employees as citizens work toward the improvement of the basic elements of the social structure that surrounds it.”

 

 

Box 2, Folder 30 – General Speeches

 

June 16-17/1969 – Managers Meeting, Palo Alto, CA

 

Hewlett is on the agenda for this meeting, but no notes or text of his comments are in the folder.

 

6/16/69, Copy of meeting agenda

1/10/69, Copy of a memo to Hewlett, Lee, and Eldred from Austin Marx with some thoughts on the management meeting in June

2/11/69, Memo from Hewlett to Marx suggesting they get together later to plan for the management meeting

5/20/69, Copy of a memo from Austin Marx to major managers attaching a draft of the agenda for the management meeting

5/29/69, Copy of a letter from Hewlett to Robert M. Brown inviting him to the meeting

6/26/69, Copy of a memo from Byrd Beh, Dave Kirby’s Secretary, sending managers a copy of Kirby’s speech at the meeting titled “Growth, Revolution and the Corporate Image”

 

 

Box 2, Folder 31 – General Speeches

 

October 18, 1969 – Santa Clara Plant Dedication

 

10/18/69, Outline of speech handwritten by Hewlett

 

Hewlett gives special recognition to the City and the County, recognizes Alan Bagley, the General Manager of the plant, and says this site will be a major site for HP.

 

He says that because HP is new to this area he will give a few words about the character of the company. He talks about their belief that they must make a profit, although that is not the sole criteria. HP management believes they have a greater responsibility – to its people, to their customers, and to the community. He adds that “…we believe it and practice it.”

 

He closes with the thought that HP tried to be a good citizen of Santa Clara County, and he hopes they can become as good a citizen of Santa Clara City.

 

 

Box 2, Folder 32 – General Speeches

 

November 7, 1969 – California Manufacturers Association Award, San Francisco, CA

 

11/7/69, Typewritten draft of comments by Hewlett, with heading that it is the “Latter half” of his speech

 

On being presented with this award,  Hewlett says that awards are measured by the character of the organization presenting it, and by the qualifications of the previous recipients. On both counts he concludes this award is significant.

 

He makes another point – that awards should be considered an award to the company as much as to the individual. And he closes with “I am delighted to accept this award and plaque both individually and in the name of my company.

 

6/20/69, Letter to Hewlett from Horace M Brown, VP at Continental Can Company, representing the California Manufacturers Association. Mr. Brown confirms their previous telephone conversation to the effect that The Association has chosen Hewlett as the person to be honored as “California Manufacturer of the Year for 1969.”

6/24/69, Copy of a letter from Hewlett to Horace Brown saying he is “complimented indeed” by the award.

7/18/69, Copy of a telegram to Hewlett from Charles W. Huse, President of the California Manufacturers Association, giving official confirmation of his selection as “California Manufacturer of the Year.”

7/21/69, Copy of a letter from Hewlett to Charles W. Huse saying he is honored and delighted

8/28/69, Letter to Hewlett from George G. Montgomery, Kern County Land Company, congratulating him on his honor

9/3/69, Copy of a letter from Hewlett to George Montgomery thanking him for his note

8/28/69, Letter to Hewlett from H. V. Burton, Bank of America, congratulating him on his selection

9/3/69, Copy of a letter from Hewlett to H. V. Burton thanking him for his note

8/28/69, Copy of a telegram to Hewlett from “Norman and Bob,” congratulating him on the award

8/29/69, Letter to Hewlett from Nicholas J. Hoff, Chairman of Stanford University’s Department of Aeronautics and Astronautics, congratulating Hewlett on the award

9/3/69, Copy of a letter from Hewlett to Professor Nicholas Hoff thanking him for his “nice note”

8/29/69, Letter to Hewlett from Grover D. Turnbow saying he is “impressed with the contributions you have made under our private enterprise system”

9/3/69, copy of a letter from Hewlett to Grover Turnbow thanking him for his note and ending with “I hope that I will have a chance to see you down at our bull sale on Saturday”

8/30/69, Note to Hewlett from William J. Miller congratulating him on the award

9/4/69, Copy of a letter from Hewlett to William J. Miller thanking him for his note

9/2/69, Letter to Hewlett from Dean A. Watkins. Ch. Of the Board of Watkins Johnson Company, congratulating him on the award

9/5/69, Copy of a letter from Hewlett to Dean Watkins, thanking him for his note

9/2/69, Handwritten note to Hewlett from Albert C. Beeson congratulating him on the award

9/8/69, Letter from Hewlett to Albert Beeson thanking him for his note

9/2/69, Letter to Hewlett from James K. Blinn, Merrill Lynch, Pierce, Fenner and Smith Inc. congratulating him on the award

9/11/69, Copy of a letter from Hewlett to James K. Blinn thanking him for his letter

9/19/69, Letter to Mr. and Mrs. Hewlett inviting them to a reception and dinner the evening before the award ceremony

10/1/69, Copy of a letter from Hewlett to Charles Huse saying he and Mrs. Hewlett accept with pleasure

9/30/69, Letter to Hewlett from Ernst Weber, Polytechnic Institute of Brooklyn congratulating him on the award

10/6/69, Copy of a letter from Hewlett to Ernst Weber thanking him for his note

9/17/69, Letter to Hewlett from R. G. Bowen, Electronic Manufacturers Representatives, congratulating him on the award

10/7/69, Copy of a letter from Hewlett to Ron Bowen thanking him for his note

9/3/69, Letter to Hewlett from Dr. Robert J. Wert, Mills College, congratulating him on the award

10/13/69, Copy of a letter from Hewlett to Bob Wert thanking him for his note

10/13/69, Letter to Hewlett from Walter J. Maytham congratulating him on the award

10/27/69, Copy of a letter from Hewlett to Walter J. Maytham thanking him for his note

10/22/69, Letter to Hewlett from Gage Lund sending his congratulations on the award

10/29/69, Copy of a letter from Hewlett to Gage Lund thanking him for his note

10/23/69, Letter to Hewlett from Robert K. Cutter M. D. of Cutter Laboratories, congratulating him on the award

10/29/69, Copy of a letter from Hewlett to Dr. Cutter thanking him for his note

10/15/69, Letter to Hewlett from J. M. Wait, Chairman FMC Corp., congratulating him on the award

11/2/69, Typewritten note to Hewlett’s Secretary, Madie Schneider, from HP PR person Merle Mass, giving her a list of people who will attend the dinner

11/25/69, Letter to Hewlett from Representative Don Mulford, California Legislature, enclosing a draft of a resolution being prepared in Sacramento, offering the congratulations of the State Assembly members

12/6/69, Copy of a letter from Hewlett to Representative Donald Mulford thanking him for introducing the resolution

11/6/69, Newspaper clipping from the San Jose Mercury covering the award

 

 

Box 2, Folder 33 – General Speeches

 

November 25, 1969 – Management Seminar Luncheon, Cupertino

 

11/25/69, List of a few topics for comment, handwritten by Hewlett

 

Hewlett lists:

Opportunity for change

Change within HP

Importance of a strong anchor in instruments

Role of computer in instrumentation

Problems of a frontal attack on a well established, well managed company

Role of corporate philosophy on assigning responsibility downwards

 

11/20/69, Copy of a memo from Mollie McRae to seminar attendees giving the time and place for luncheon

 

 

Box 2, Folder 34 – General Speeches

 

December 1-2, 1969 – Semi-Annual Managers Meeting, Palo Alto, CA

 

12/1/69, Outline of topics he wishes to cover, handwritten by Hewlett

 

We are on a basis of doubling every four years – 400 million now, should be 10 ⁹ in 6-7 years. International at 38% – domestic 14% – equal in ’75 or ’76

 

What will we be like in the 70s, what will our problems be?

We will not do a billion + in electronics field alone – field not big enough

New areas will be electronically based and technically oriented –  can see this pattern now: computers, calculators, medical, analytical

Growing trend toward systems

Must keep strength in basic electronic instrumentation

Role of International: Will continue to grow, need to look for additional plant site, establish operation in Singapore,

 

What does short time picture look like?

In U. S.

Battle with inflation

Nixon policy and high cost of money

Summary

HP enters the 70s strong, in good shape, lots of momentum – optimistic

 

12/1/69, Bound booklet containing agenda, and many charts, tables etc. giving operational data for FY 69

 

Box 2, Folder 35 – General Speeches

 

January 19 and January 25-27,1970 – Management Meetings, Colorado Springs, CO and  Ouchy, Switzerland

 

1/19/70, Outline of  talk handwritten by Hewlett

 

Hewlett says the purpose of the meeting is to talk about problems, solutions, and the direction HP is going. This meeting is consistent with management by objective – important to share these thoughts.

 

Giving a bit of history Hewlett tells about the first management meetings where they sat down and talked about problems – formulated the first corporate objectives. Later meetings were held in Monterey, larger, more rigid structure. Became harder to get sales up and easy to push sales down.

 

Two way communications in meetings like this are important. For this meeting a tentative agenda is worked out with Lee and Eldred and then sent to the Operations Council where it is picked apart and restructured.

 

This kind of process can be seen in the budgeting process. General targets set up by the Executive Office, then Groups and Divisions do their targeting – generally accepted.

 

With this system of delegated responsibility Hewlett says he has not given up any of his authority. He is still the one the Board or the Shareholders look to for healthy company operation of the company. But management load has been spread.

 

Says what they want to do today is provide a distillation of the discussions they had last December, [See speech folder December 1-2. 1969], with much of the original cast.

 

1/9/70, Copy of a memo from Stan Selby to Hewlett giving directions to the meeting place. A list of attendees from both Loveland and Colorado Springs is attached.

1/19/70, Copy of a letter from Stan Selby to Hewlett telling him where the management meeting will be held and enclosing a list of attendees and a tentative agenda

1/25/70, Copy of agenda and list of attendees at the European Management Meeting in Ouchy, Switzerland. No notes on a Hewlett speech is in the folder, but it can be assumed that it was along the line of the above.

 

 

Box 2, Folder 36 – General Speeches

 

February 12, 1970 – Analysts Meeting, Wilmington, DE

 

2/12/70, Outline of points to discuss handwritten by Hewlett

He gives 1969 financial data, discusses changes in the Board, and reviews progress in the first Q. FY70.

Reviews organizational changes and gives some outlook for the future

Reviews problems

Long term outlook: optimistic

2/12/70, Earlier draft of speech outline handwritten by Hewlett

2/12/70, Outline for Hewlett speech typed, from Marketing

2/12/70, Handwritten sheet with more suggestions for Hewlett talk

2/12/70, Typewritten sheet giving FY 69 financial data

10/2/69,  Copy of a letter from Hewlett to William G. McKenna VP Financial Analysts of Philadelphia, saying space does not permit the addition of their group to the meeting in Wilmington, but possibly they might like to join the breakfast meeting HP will be having with analysts in New York in March

1/23/70, Memo to Maddie Schneider from Emery Rogers talking about time arrangements during Hewlett’s visit

9/30/69, Letter to Ed Van Bronkhorst from Ralph E. Pierce, Financial Analysts of Wilmington, saying they will be present for the meeting with HP on February 12.

1/7/70, Letter to Ed Van Bronkhorst from Ralph E. Pearce saying they look forward to meeting with Mr. Hewlett at the meeting with the Financial Analysts to be held in the Hotel DuPont, in Wilmington

1/20/70, Letter to Hewlett from Ralph Pearce saying they understand Mr. Van Bronkhorst will not be attending the Feb. 12 meeting, but they look forward to meeting with Mr. Hewlett and Emery Rogers.

1/29/70, Copy of a letter from Hewlett to Ralph Pearce saying he has learned that their VP in charge of Operations, Ed Porter, will be in Avondale on February 11 and 12, and he has invited him to join the group for lunch on Feb. 12

2/13/70, Letter to Hewlett from Ralph Pearce thanking him for addressing their group

2/19/70, Copy of a press release issued by HP giving financial results for the first quarter FY 70

 

 

Box 2, Folder 37 – General Speeches

 

February 24, 1970 – Shareholders Meeting, Santa Clara Plant Site

 

1/26/70, Copy of printed Notice of Annual Meeting of Shareholders

2/24/70, Copy of typed suggested agenda for the meeting

2/24/70, Copy of typed resolution

2/24/70, Copy typewritten resolution amending Articles of Incorporation

2/24/70, Copy of  floor plan showing location of displays of HP products

 

 

Box 2, Folder 38 – General Speeches

 

March 25, 1970 – Analysts Meeting, New York, NY

 

3/25/70, Complete text of Hewlett’s talk handwritten by him on lined tablet paper

 

Hewlett talks about the discourse that goes on between security analysts and company managers. The analyst interviewing a manager tries through adroit questioning to gain some bit of wisdom that will give his clients an advantage. The manager is under governmental constraints as to what information can be communicated – “cat and mouse game,” he says.

 

However, Hewlett says the fact that the Company has invited the analysts here indicates that  they are anxious for them to know more about HP and to understand the company better. He says that what the individual analyst gets out of the meeting is the difference between a skilled and an unskilled listener – both hearing the same information.

 

Reading a balance sheet or profit and loss statement, Hewlett says, can give insight into the health of the company. But they don’t show anything about what he calls “our greatest asset, and that is our people.” He says that their evaluation of the quality of management is a better indicator of the future prospects of the Company than anything he might say. Last year two Group Managers, John Young and Carl Cottrell spoke. And this year three Division Managers will talk about their respective operations: Dean Morton of the Medical Division, Emory Rogers of the Analytical Division, and Bill Terry of the Colorado Springs Division.

 

3/25/70, Copy of typewritten sheet showing FY 69 financial and operations data

4/3/70, Letter to Hewlett from Arthur Carwardine saying he enjoyed meeting him at the meeting.

 

 

Box 2, Folder 39 – General Speeches

 

April 7, 1970 – Counterpart Luncheon, Palo Alto, CA

 

4/7/70, Outline of talk, handwritten by Hewlett on lined tablet paper

 

Counterpart is a community self-help organization, black and white people working on projects to assist minority groups in the area. Hewlett is addressing  industry and community organizations to tell them more about Counterpart and solicit their help for 1970 projects.

 

Hewlett says the problem is not whether there should be help, but how to help. Must support programs that are successful, and counterpart is successful he says.

 

He gives some background on Counterpart and describes specific projects where help is needed. He asks that they make these known to their people and help with money and interest.

 

4/7/70, Copy of a circular letter, signed by Hewlett, and apparently sent to many community organizations and companies. The letter lists specific counterpart projects, shows the budget needed to support each, and asks that they pick a project they can support.

 

 

Box 2, Folder 40 – General Speeches

 

April 13, 1970, Acceptance of Harvard Business School Club Award – “Business Statesman of the Year,” San Francisco, CA

 

4/13/70, Typewritten text of Hewlett’s speech

 

This is a speech about the social responsibility of business and Hewlett says he would like to feel that “society is moving in a direction that allows the humanitarian component of every good manager to take an ever more active role as a constructive agent of social change.”

 

He tells his audience that he wants to talk about the “young men and women that you will be hiring over the next few years and give you some personal views as to what I think they believe and want and what the business community might do about it….We are in the midst of a revolution as great as the Renaissance or the Industrial Revolution.”

 

Although the universities have been the focal point for thought and action, Hewlett says “It is a mistake to think that the problems in our universities today are simply the result of acts of a handful of irresponsible radicals….The militants could not function at all if it were not for a very broad level of tacit support within the university community; not that the acts that the radicals perform are necessarily condoned as such, but rather that the average student sees in the radical a statement – albeit grossly exaggerated – of some of his own views on what should be done to direct society towards a better course.” And he points out that we will shortly be hiring these young people for work in our organizations.

 

Considering what might be the reaction of these young people to the corporation Hewlett wonders if there “Can be a revolt in the corporation just as there was in the university?”

 

And he describes recent happenings at universities: – “Deans thrown out of their offices at Harvard, the door of the President of MIT battered down, red paint poured over the head of the President of Stanford.” Hewlett does point out that the average university is more “archaic, more authoritarian” than its corporate counterpart. But corporations are “far from perfect and universities are not all wrong”, and “there are lessons to be learned.”

 

Hewlett feels the student of the day wants to “become part of society; wants to cut through the hypocrisy that he sees all around him; and wants to get on with the problem of trying to solve what he feels are the social ills of the world.” And his inability to make progress along these lines is, Hewlett feels, at the root of many student riots.

 

Hewlett says the students who will be joining our organizations will be bringing their views with them. “They will be a group that is infinitely more idealistic than anything we have known in the past.” Although joining the recent trend of increased social responsibility among corporations, “They will also be questioning some of the most fundamental concepts on which the corporation is based –authority, responsibility, structure….They will want a structure that is less rigid, more understanding of the individual.”

 

“The real authority will be the authority of knowledge and judgments and of leadership – not from the title on the door. All of this raises some very basic questions about what will be the relative responsibility of managers to their shareholders, to their employees, and to society at large.

 

Hewlett feels that these trends will move corporations to place greater emphasis on responsibility to society rather than a sole responsibility to shareholders. “This will,” he says, “raise serious questions in the minds of the shareholders, for as a group, shareholders are probably the most reactionary or conservative component of the corporate structure. Yet it must be made clear to the shareholder what the cost-benefit ratios really are. He will have to be made to understand that in the long run these actions will cost him less –less in taxes – less in lack of efficiency – less in disruption to the economy.”

 

Hewlett says “We have already come a long way since the time that corporate support to higher education was actively questioned by shareholders. Indeed, a very large corporation may more and more be considered a public trust, rather than the private property of its shareholders….The company that can successfully adapt to such changing values will be at home and will represent a constructive force upon the changing society. The young men and women that you will be employing in the next few years can be the focal point that promotes and facilitates these changes. The companies that cannot adapt will find themselves out of step with the times – a relic of the past. These young people with their idealistic and sincere dedication, working in conjunction with the wisdom and understanding of an older generation and with a government that is sympathetic and helpful, an move us a long way toward solution to the complex problems facing us today.”

 

3/13/70, Typed note to Hewlett from his Secretary, Madelen Schneider, saying she had talked to one of the Harvard Club members who attended the previous year dinner, and she passes along information on what the speaker at that time said about business and social responsibility.

3/31/70, Letter to Hewlett from J, E. Wallace Sterling, President of Stanford, congratulating him on the award and saying he regrets he will not be able to attend.

3/31/70, Letter to Hewlett from James B. Hill, Harvard Business School Club of Northern California, discussing arrangements for the award dinner

3/26/70, Letter to Hewlett from Robert J. Wert, President of Mills College, offering congratulations on the award

4/2/70, Copy of a letter from Hewlett to Dr. Wert thanking him for his note.

3/26/70, Letter to Hewlett from Ernest C. Arbuckle, Chairman, Wells Fargo Bank, congratulating him on the “Man of the Year “ award.

4/2/70,  Copy of a letter from Hewlett to Ernest C. Arbuckle thanking him for his note

4/1/70, Letter to Hewlett from Albert H. Gordon congratulating him on the award

3/26/70, Letter to Hewlett from W. P. F. Brawner congratulating him on the award

4/2/70, Copy of a letter from Hewlett to Mr. Brawner thanking him for his note

3/25/70, Handwritten note to Hewlett from Dr. L. R. Chandler congratulating him on the award

4/2/70, Copy of a letter from Hewlett to Dr. Chandler thanking him for his note

3/25/70, Letter to Hewlett from Richard S. Bullis saying its nice to see friends become leaders in government and business

4/2/70, Copy of a letter to Richard Bullis thanking him for his note

3/25/70, Letter to Hewlett from R. Stanley Dollar, Jr. offering congratulations on the award

4/2/70, Copy of a letter to Stanley Dollar thanking him for his note

3/26/70, Letter to Hewlett from Herbert Navis congratulating him on the award

4/2/70, Copy of a letter to H. A. Navis thanking him for his note and offering him congratulation on being appointed a VP at Socal

4/14/70, Letter to Hewlett from H. A. Navis thanking him for his kind words

4/3/70, Letter to Hewlett from Richard J. Porn, Albuquerque Industrial Development Service, Inc. congratulating him on the award

4/6/70, Letter to Hewlett from James J. Foley, Harvard School of Business Administration, sending a biographical sketch of Lawrence E. Fouraker, the new Dean of the Business School

3/30/70, Letter to Hewlett from Richard E. Guggenhime saying Hewlett deserves the award

4/8/70, Copy of a letter from Hewlett to Richard E. Guggenheim thanking him for his note

4/1/70, Letter to Hewlett from Gaynor H. Langsdorf, congratulating him on the award and saying he looks forward to seeing him at the “Grove”

4/1/70, Letter to Hewlett from Edward Lee Soule, Jr. offering congratulations

4/9/70, Copy of a letter from Hewlett to Edward Lee Soule, Jr., thanking him for his note

4/1/70, Letter to Hewlett from J. K. Gustafson, Chairman, Homestake Mining company, offering congratulations on the award

4/9/70, Copy of a letter from Hewlett to J. K. Gustafson, thanking him for his note

4/3/70, Letter to Hewlett from Dean A. Watkins, Chairman, Watkins-Johnson Co., offering congratulations on the award

4/9/70, Copy of a letter from Hewlett to Dean A. Watkins, thanking him for his note

4/9/70, Copy of a letter from Hewlett to Emanuel Fritz thanking him for commenting on the award

4/1/70, Handwritten note to Hewlett from Mrs. Allan E. Charles saying Harvard shows good judgment in making its awards

4/9/70, Copy of a letter from Hewlett to Mrs. Charles thanking her for her note

4/3/70, Letter to Hewlett from K. S. Pitzer congratulating him on the award

4/9/70, Copy of a letter from Hewlett to Kenneth S. Pitzer thanking him for his note

4/2/70, Letter to Hewlett from L. W. Lane, Jr. congratulating him on the award

4/9/70, Copy of a letter from Hewlett to Bill Lane thanking him for his note

4/9/70, Letter to Hewlett from Charles A. Anderson of SRI saying he was a part of the committee and is in full agreement with the selection

4/10/70, Letter to Hewlett from Rudolph A. Peterson saying the award is well earned

4/14/70, Letter to Hewlett from Richard O. Buxton saying they were pleased to learn of his award

4/16/70, Copy of a letter to Richard O. Buxton thanking him for his note

4/8/70, Letter to Hewlett from William E. Roberts, Ampex Corp. congratulating him on the award

4/21/70, Copy of a letter from Hewlett to William E. Roberts thanking him for his note

4/16/70,  Letter to Hewlett from Larry M. Winward, Administrative Assistant to the President of Lane Publishing Co., congratulating him on the award, on behalf of Bill Lane and all at Sunset Magazine

4/21/70, Copy of a letter from Hewlett to Larry Winward thanking him for his note

4/15/70, Letter to Hewlett from Walter A. Hass, Jr., congratulating him on the award

4/21/70, Copy of a letter from Hewlett to Walter Hass, Jr. thanking him for his note

4/16/70, Letter to Hewlett from Walter A. Hass saying they had to miss the award dinner as Mrs. Hass became ill

4/21/70, Copy of a letter from Hewlett to Walter A. Hass saying he was sorry to hear of his wife’s illness and that they missed them at the dinner

4/16/70, Letter to Hewlett from William S. Powell, saying he was sorry they could not be at his richly deserved award dinner

4/21/70, Copy of a letter from Hewlett to William S. Powell thanking him for his nice

note

4/9/70, Letter to Hewlett from Stephen D. Bechtel, Jr., offering congratulations on the award

4/22/70, Copy of a letter from Hewlett to Stephen D. Bechtel, Jr. saying was sorry he couldn’t make the award dinner

4/9/70, Letter to Hewlett from Charles Johnston Hitch congratulating him on the award

4/12/70, Copy of a letter from Hewlett to Charles J. Hitch saying he appreciates his note

4/7/70, Handwritten note to Hewlett from Jane F. Taylor congratulating him on the award

4/23/70, Letter to Hewlett from James B. Hill of the Harvard Business School Club thanking him for being with them to receive the Business Statesman Award

4/28/70, Copy of a letter to Ms. Jane F. Taylor thanking her for her note

4/17/70, Letter to Hewlett from Peter N. Teige commending him on his speech at the award dinner

4/28/70, copy of a letter from Hewlett to Peter Teige thanking him for his letter

5/1/70, Letter to Hewlett from Kenneth M. Cuthberton, Stanford University, Vice President for Finance saying he had read the text of his remarks at the award dinner and believes he did a great service by his comments

6/17/71, Letter to Hewlett from George I. Roen, Harvard Business School enclosing a check for $225, refunding an overpayment for ten people attending the award dinner

6/69, Copy of an SRI publication  called “Voices of Tomorrow” giving highlights from a film they made of interviews at Stanford asking students of their views of the business community

 

 

Box 2, Folder 41 – General Speeches

 

May 13 to June 2, 1970 – Trip to Europe and Asia

 

4/3/70, Memo from Franz Nawratil to Bill Doolittle discussing a press conference during the open house day in Frankfurt on May 22

4/10/70 Memo from Bill Doolittle to Dick Alberding in Geneva giving travel arrangements for the trip to Europe

4/13/70, Memo from Bill Doolittle to Franz Nawratil saying Hewlett, Lee and himself will attend the open house on May 22.

4/27/70, Memo from Eberhard Knoblauch to Alberding, Doolittle, Hewlett, Lee and Terry, enclosing a tentative agenda for the GmbH review on May 21. He adds a note to Hewlett that they would appreciate it if he would say a few words.

3/10/70, Letter to Ralph Lee from Nicholas O. Wise of Executive Jet Aviation, Inc.(EJA) saying they would be happy to assist with air travel in Europe and giving contact information

5/6/70, Copy of a TELEX from Doreen Norris at HP in Palo alto to EJA in Basle, Switzerland requesting a chartered jet for Hewlett leaving Stockholm for Edinburgh on May 18.

5/8/70, Copy of a telegram from EJA in Columbus, Ohio transmitting a message from their office in Basle giving flight information for trip from Stockholm

5/13/70, Exchange of telegrams exchanged between the Hewletts and their daughter and son-in-law in Stockholm to arrange stay with them instead of Grand Hotel

5/18/70, Copy of typed itinerary for a visit of possible French manufacturing sites on May 18

5/15/70, Copy of a typed agenda of visit to GmbH facility on May 21

5/14/70, Copy of a telegram from Karl Doering to Hewlett giving agenda for open house in Frankfurt on May 22

Undated, Several pages of rough notes written by Hewlett listing topics he wished to discuss at various places

Undated, Typed list of HP people in Singapore, plus biographical information on some governmental people

 

 

Box 2, Folder 42 – General Speeches

 

May 15, 1970, Board Meeting, HP new Santa Clara plant

 

5/15/70, Outline of discussion comments handwritten by Hewlett on lined tablet paper

 

Topics addressed by Hewlett include:

 

The original character of HP

Marketing structure – independent reps to in-house regions

Seeds of change – acquisitions: Sanborn, F&M, Delcon,

Group structure

Problems and Solutions – growth, marketing, product line responsibility,

Why two instrument groups

Current economic outlook – targets by groups, new chart of accounts

Long term outlook – structure, better control needs, leaner divisions, should be in fair condition if economy improves by end of year

If economic condition worsens have cut all fat and will have to take more drastic action

5/15/70, Typed tentative agenda for Board Meeting, plus several pages of charts and tables

 

 

Box 2, Folder 43 – General Speeches

 

July 1, 1970 – Announcement  to Employees re Cutback in Hours, and Pay

 

7/1/70, Copy of typed text of this announcement, given here in its entirety

 

“As I have been indicating in recent issues of Measure, the domestic economy has been sufficiently slowed down to materially affect our incoming order rate. In fact, we are now producing at a rate that is approximately 10 percent larger than our incoming order rate. This has resulted in a substantial reduction in our backlog and an increase in our inventories of almost $23 million during the last twelve months.

 

“The general economic outlook does not appear to be improving and it is therefore necessary to bring production in line with orders. The traditional way would be to have a 10 percent layoff. This is not, however, in the HP tradition of considering the company as a team effort. The most equitable method, therefore, is to have all share. I have therefore decided to reduce the work week for all by 10 percent. This will be achieved by having the company work four days one week and five the next. The first day out under this new plan will be July 10^th. Accordingly, all employees, hourly or salaried, will be receiving about 10 percent less base pay. For reasons of high order levels or previous commitments, certain plants will not be affected. These will be Avondale, Colorado springs, San Diego, and the automatic test department of AMD here in Palo alto.

 

“It is difficult to determine how long this condition may last, but it is expected that by the end of our fiscal year we will be able to return to a full time schedule. A review will be made each month to determine if the order situation will allow individual divisions to return to full time.

 

“These days when the plants are closed may not be counted as paid vacations. Your supervisors have more detailed information about the operation of the plan and should be in a position to explain its operation to you.

 

“One note: at the briefing that I gave this morning to supervisory personnel, I indicated that there would be a substantial offset to the 10 percent reduction due to the removal of the Federal U.S. incremental surcharge. I was mistaken in the numbers quoted, and the effect of this change will be in the order of 1 or 2 percent rather than the larger number indicated.

 

“This is as equitable a plan as I can think of – let’s make it work!”

 

7/1/70, Draft of above announcement handwritten by Hewlett on lined tablet paper

7/7/70, Letter to Hewlett from Tom Griffin commending him on the way the reduction in hours was handled

7/16/70, Copy of a letter from Hewlett to Tom Griffin thanking him for his letter

7/7/70, Letter to Hewlett from the wife of an HP employee commending him on the way this problem has been handled She says “This family is with you all the way…”

7/16/70, Copy of a letter from Hewlett to Mrs. Margaret Shergalis thanking her for her “most thoughtful” letter

7/2/70, Letter to Hewlett from George B. Shott of White, Weld and Co. commending him on HP’s solution to the problem

7/2/70, Letter to Hewlett from J. F. Hunter commending him for the action taken

7/3/70, Letter to Hewlett from Arthur L. McLendon commending him on the handling of the situation

Also enclosed in this folder are several pages of analytical data evidently used in the discussions leading to the final decision to cutback hours.

 

 

Box 2, Folder 44 – General Speeches

 

August 3, 1970, Semi-Annual Managers Meeting, Palo Alto, CA

 

8/3/70, Copy of typed preliminary agenda for the meeting, and a tentative list of attendees

8/3/70, Bound binder of data with graphs, charts and other data regarding financial and operations data covering eight months ending 6/30/70

11/21/70, Copy of a letter from Hewlett to Dr. George L. Bach saying he is delighted that he will be able to attend the forthcoming meeting of the Management Council

12/5/69, Copy of a letter from Hewlett to Dr. Bach saying all the managers were very pleased with his discussion and asking if he would be interested in giving a short lecture to their top people four times a year

12/10/69, Letter to Hewlett from Dr. Bach saying he would like to discuss the idea of  periodic meetings with HP people “so long as they involve only a modest amount of time”

12/11/69, Copy of a letter to Dr. Bach from Hewlett suggesting their secretaries arrange a satisfactory time for them to get together

7/22/70, Copy of a letter from Hewlett to Dr. Bach saying he is delighted he will be able to join their meeting next month

 

 

Box 2, Folder 45 – General Speeches

 

September 14-18, 1970 – Talk on the “Role of Small Computers in Instrument Systems,” Computer Conference, Novosbirsk, Soviet Union

 

9/14/70, Copy of typewritten text of Hewlett’s talk.

This is a fairly technical talk in which Hewlett describes HP‘s experience in using computers to automate the testing of electronic components, equipment and systems. He says the need for this arose because of the “increasing complexity of individual pieces of electronic equipment, the desirability of routine testing of electronic components for reliability…and a trend toward the assembly of a number of individual pieces of equipment into computer systems.”

 

“It became evident,” he says, “that the instrument companies should become involved in the computer business or abrogate a reasonable percentage of business to the computer concerns. In addition, there were secondary reasons why an instrument company like Hewlett-Packard should enter the computer field. Perhaps the most important of these was the necessity to thoroughly understand the computer itself so that an optimum match might be made between the computer hardware and the instruments with which it would be associated. An additional factor was that many of the skills involved in the design and production of computer hardware were applicable in the design and production of more complex measuring equipment.”

 

Hewlett says “the design of a computer for instrumentation use posed some special problems. Perhaps the most severe of these was the fact that the computer should be able to operate in the same environment as the instruments. Traditionally computers had been designed to operate in a very favorable environment, often involving air-conditioned rooms in which both temperature and humidity were controlled….” He adds that they had little tolerance for variations in electrical current, and were not designed to withstand much shock and vibration.

 

Hewlett says that in designing computers for instrument purposes they have found unique application in some extremely hostile circumstances, and he gives an example of its use on an oil drilling platform in the Gulf of Mexico.

 

Hewlett tells of HP’s own use of a computer-controlled system for the production testing of the printed circuit boards for the 9100A and B Desk Top Calculators.

 

Another example Hewlett describes is the “application of the computer to solve specific instrumentation problems.” He says specialized software is required and he tells of one that was designed for use at the Stanford University Medical Center. “The integrated/hardware/software package is intended to automate time-consuming laboratory procedures and perform real time cardiac analysis.”

 

Looking ahead Hewlett sees continued developments in the field of automatic measurements. “Perhaps,” he says, “the best indication of this is the fact that universities are now beginning to give courses in this field. It will not be long before we have a generation of engineers who have been trained to use and understand automatic testing and will be more willing to accept it and encourage its use than the older generation.

 

9/14/70, Copy of earlier draft of talk, as well as outline draft handwritten by Hewlett on tablet paper

9/14/70 Copies of several papers describing HP’s work in various areas of automatic testing evidently sent to Hewlett in preparation for this talk

 

 

Box 2, Folder 46 – General Speeches

 

December 7-8, 1970 – Semi-Annual Managers Meeting, Palo Alto, CA

 

12/7/70, Typewritten outline of Hewlett’s comments at the beginning of the meeting

 

I. Look Backwards

Hewlett presents some figures which make it obvious that international sales are catching up to domestic

 

Reasons have to do with end of war in Vietnam, the Nixon Administration’s cutbacks in military spending, credit tightening, declining federal support for science

 

Economies of developed countries are booming

 

II. A Look ahead

 

Revolution underway: concern for the environment, population, are we smart enough to change with the social changes

 

III.  HP Today

 

We’ve come through a difficult year. He says he has “hounded” everyone on targets, people count, R&D costs

 

Important products coming in 1971, we are in the right field with the right products

 

Healthy organization, new accounting system

 

IV  Long Term and HP products

 

Medical and Analytical coming along well

 

HP movement away from government support, counter balanced by entries in industry and commercial field

 

Data products is our ace in the hole

 

V.  Diversities [may bring] problems

 

No longer have a monolithic product line where it is easy to control details

 

Need new method of control to insure diverse areas are prospering

 

1970-1972 A time of real cross-road for HP. We are too close to it now, but by the end of the decade we should be able to look back and see what a change  of direction we took

 

12/7/70, Draft of above outline handwritten by Hewlett

12/7/70, Copy of the text of Hewlett’s concluding remarks

 

At the meeting several round tables were held with top managers circulating  among them. The groups were to discuss:

 

New operating strategies

Operations

Communications

Compensation

 

Hewlett says he found the round table groups “extremely interesting” – got more discussion.

 

From the operations group discussions Hewlett says he sensed that we need a better statement of overall strategy – corporate strategy

 

Questions raised regarding the objectives of the corporation on profit, growth, market penetration. He concludes we must have a small group of market strategists.

 

Product line reporting vs. facility reporting is gaining support. Hewlett sees this trend as “…finally breaking down the barriers that have existed and the troubles that have been caused in terms of our international operations.

 

Question came up on the need for greater flexibility in worldwide pricing. Independent reps in international areas tended to want to price as high as possible, whereas the company wanted to price as low as possible – longer range viewpoint. Solved by publishing prices.

 

Need to pay more attention to the economic forecasts from Austin Marx and Lee Bach.

 

On travels to plants managers need to spend more time wandering around and visiting with the people.

 

What should we do when it becomes obvious that targets will not be met. Must come back and talk about it with upper management.

 

The area of strategy boils down to a question of the allocation of engineering personnel among the laboratories. On relations between HP Labs and the divisions. Hewlett says he sees some things that can be done in this area.

 

Division reviews. Managers usually present their views and programs – without discussion of possible alternatives. Should try to get discussion of these.

 

Compensation. Appears to be some misunderstanding about the role of profit. Hewlett starts with the policy: First, we are competitive. Two, we are in many different areas of business – with different standards. In period of cutback should  we give raises regardless of how the company is doing?  “Should we simply go ahead and raise salaries and to hell with profit.?” Some people seem to think that way. Hewlett says “I want to assure you that if you think that, you are operating under a very serious misunderstanding about how this company is going to be run.”

 

He says he can put this in perspective. He estimates that the stock owned or in options of the people in the room is about $5.7 million. “If this company went down to 10 times earnings, you would see $4 million vanish from the people in this room. If you want to see the equity in this company go down by that amount, just adopt a policy that says that we are going to give all earnings to our employees, regardless of what earnings the company has.”

 

He adds that it is also important to have a “good” price earnings ratio if one wants to acquire another company – which is more easily done with appreciated stock than with cash.

 

Hewlett quotes Packard as saying “If you don’t believe profits are important, you are miscast as a manager at HP. And you had better come in and see me.”

 

Next Hewlett discusses pricing. “It is inconceivable,” he says, “that we can go along with the prices of everything that we buy, services we pay for increasing and not do something about our prices….We have to devise a mechanism so that we review these profits and get the maximum profit we can, subject to certain limitations, on the products that we make. Even though this may represent a reduction in sales volume, the important thing is not how many dollars we push out the door – it is how many dollars are left after we’ve done it.”

 

He adds a cautionary note for those who might take his words too literally and get greedy. “If we try and seek too much profit in a given line of a product, then you are going to attract the competition. Once the competition is in there it is hard to get out. So you have to walk a fine line. You have to get a return that is adequate to provide the growth, to support the price and earnings ratio that we traditionally carry, and still not make it too attractive for our competition.”

 

He says this finishes his review of the panel discussions, but he says he would like to say a few words about the “environment in which we operate.”

 

He refers to some slides that were shown the previous day which indicated that the Company would be doing about $14 million more business in the second half than in the first. He says this flies in the face of Professor Bach’s belief that business in general will not be as good in the second as it was in the first. “I think it is terribly important,” he says, “that you keep that in mind and not become carried away with what might appear to be some pretty good business in the first part of the year.”

 

Hewlett refers to Alberding’s comments earlier to the effect that they needed higher targets and budget in Europe since business was strong. Hewlett admits that he was the one who “made him [Alberding] cut his numbers back and I will speak softly of that when I go over to Europe….I just don’t think it hurts to have some conservative targets.”

 

12/8/70, Outline of notes for above comments, handwritten by Hewlett.

11/20/70, Memo from John Young to Noel Eldred talking about points he would like to see put on the agenda.

12/2/70, Copy of a memo from Austin Marx to Panel speakers describing their assignments

12/2/70, Copy of a memo from Austin Marx to all meeting speakers giving them a copy of the latest agenda – which is attached

12/7/70, Copy of a later edition of the agenda

12/14/70, 12/14/70, Copy of a letter from Hewlett to Professor Bach thanking him for joining their meeting, and sending a check.

12/7/70, A collection of many charts and graphs showing various phases of operations

12/7/70, Copy of a typed list of all the “professional “ employees in the Company

 

 

Box 2, Folder 47, General Speeches

 

December 16, 1970 – Data Products, Senior Sales Seminar, Palo Alto, CA

 

12/16/70, Outline of  comments he intends to make handwritten by Hewlett

 

Hewlett lists some factors which prompted HP to get into the computer business:

Increased interest in automation

Design of programmable instruments

Decision of enter computer market

Initial limited objectives

Expansion into other fields

Broadened scope of operations

 

Commenting on HP’s computer business today he says:

HP’s commitment?

In two areas – computers and calculators, which will merge

As an indication of commitment he gives the percent of sales dollars allocated to HP Labs, 8 ½% vs. 14 ½ to Data Products organization

 

HP and the computer market

Important to operate from a strong base

Role of instrument systems

IBM, HP, DEC

Role of advanced calculator

Importance of marketing and restructuring of field marketing force

The depression and HP’s computer business

 

The year ahead

Timing good – 2100

Has forced a tightening up of operations after a period of rapid growth

The role of good software prolonging 2116 life

HP’s willingness to stay in there and slug it out

 

12/11/70, Letter from Bill Nilsson to Carl Cottrell giving a profile of the new sales personnel and a summary of their concerns about HP in the computer business – which Hewlett addresses in his talk

 

 

Box 3, Folder 1 – General Speeches

 

January 24-26, 1971 – Management Meeting, Ouchy, Switzerland

 

Included in this folder are copies of the same talks he gave at the management meeting in Palo Alto December 7-8, 1970 [See folder of that date] and it is likely he gave much the same talk at this meeting.

 

1/24/71, Notes for a talk handwritten by Hewlett

 

There also is an outline of a talk, handwritten by Hewlett, but his notes do not seem to fit the situation of a management meeting in Switzerland. Attached to the front of this copy is a note to Hewlett from his Secretary asking if he recalls what meeting this was for. His answer was “No.” So, even though it may not fit here, the notes of this copy are briefly summarized below.

 

Hewlett starts by giving the purpose of the meeting

Discuss what we are doing

How we want to run the company

Mutual problems

 

He lists the next topic as The Management Structure, the Office of the Chief Executive, and the Management Council

Management by Objective

Annual budget

Personnel Relations

He says we must not destroy the one factor that sets us apart – personnel relations. “In the last analysis it is the devotion of our employees that sets the company apart – ideas about the dignity of the individual, how you motivate people.”

 

12/22/70, Memo from Carl Anderson to Hewlett giving plans for the meeting in Ouchy, and asking his travel plans

1/5/71, Copy of a memo from Hewlett’s Secretary, Madelen Schneider to Carl Anderson, giving the Hewlett’s travel plans

1/15/71, Telegram to Hewlett from Carl Anderson discussing travel arrangements

Note from Carl Anderson to Hewlett attaching the agenda for the meeting in Ouchy

Box 3, Folder 2 – General Speeches

 

February 23, 1971 – Shareholders Meeting, Santa Clara, CA

 

2/23/71, Copy of text of Hewlett’s speech at the Shareholders Meeting

 

Hewlett says he will not go over the year end results as these are in the Annual Report which they already have. “It is sufficient to observe that it was not our best year in history: Sales rose slightly, but our profits fell below the previous year by 11%. Our domestic sales were down 12% from 1969, and it was only through a 32% gain in international sales that we were able to wind up the fiscal year with an overall sales increase of 7%”

 

He says that the recession they have been going through was painful – but such recessions can bring constructive results.

 

He explains that prior to 1970 they had been growing at an average compound rate of about 16% per year for the prior ten years, with the maximum growth of 26%  in 1962, and a minimum of 5.6% in 1963. With the need for forward planning to meet requirements of  plant and equipment we began planning  for 1970 facilities in 1968, and had construction well underway in 1969. So by the time they realized they would end up with excess capacity it was too late or impractical to  cancel projects. Planning for human resources operates in a similar way.

 

Hewlett notes that in addition to this “flywheel effect” there are other characteristics associated with a long-term growth pattern such as they have experienced. He describes one of these factors as “sloppy organization and administration.” Another is the characteristic that growth is not necessarily spread out evenly throughout product lines and imbalances within the business can develop. He says much of 1970 was spent in trying to rectify these problems.

 

The entire domestic marketing force was reorganized to accommodate the growth in product lines from the traditional electronic instruments to adequately handle the current HP product line, which he gives as “electronic instruments, medical electronics, analytical equipment, computers, and related products, calculators, components, and measurement systems.”

 

The management of both international and domestic marketing was strengthened and he mentions that Carl Cottrell was appointed Deputy Director of the International Group, and Bob Boniface was appointed Marketing Director and made a Vice President.

 

Hewlett comments on their experience with the “ten-day work week” they started in July. They felt that layoffs to meet the situation would not only work a hardship on loyal and productive employees, but layoffs would make it difficult to regain momentum once the general business improved.

 

Hewlett says he feels “the reduced work week was an effective and equitable way of bringing into line our productive capability with our incoming order rate.” He adds that they received many favorable comments both from inside and from outside the company, and that they returned to a full work week on January 1.

 

On the subject of minority employment Hewlett says they have been making a “concerted effort” to increase the number of minority employees and he says HP minority employment in the Bay Area remained essentially the same in spite of the recession.

Hewlett talks a bit about Noel Eldred having died [November 30, 1970] and how he had “played a key role” in the company since 1944. Eldred had recently been appointed an Executive Vice President.

 

Hewlett closes with some figures on the first quarter of 1971 operations: sales dropped 1 ½ % from the first quarter of 1970, and earnings per share dropped 12%. He admits these are not highly satisfactory figures, but notes they are close to targets for the period. He adds that with the economic climate the way it is they do not anticipate any marked upturn in domestic business in 1971 – international is expected to grow some but at a slowed pace.

 

2/23/71, Handwritten note to Hewlett from unstated person with some suggestions for his talk to the shareholders

2/23/71, Copy of the printed Notice of Annual Meeting of Shareholders

2/23/71, Copy of typed standard agenda for shareholders meetings

2/23/71, List of Directors with attached biographies

2/23/71, Typed statement of a resolution on tandem options, plus a list of these since 1965

2/23/71, Typed list of instruments on display at the meeting

2/23/71, Copy of press release giving first quarter results

2/23/71, Copies of tables of financial results

2/23/71, Copy of a table of HP Bay Area minority employment

 

 

Box 3, Folder 3 – General Speeches  

 

March  2, 1971 – J. Barth Forum, San Francisco, CA

 

3/2/70, Outline of items to cover in talk, handwritten by Hewlett

 

Hewlett talks on the environment for HP business in the 70s

 

He postulates an economic model:

 

Domestic

Military spending dropped 17% in areas of interest to HP. HP able to weather this with increase in international business. Should bottom out in 71/72.

NASA –  Bottom out in 71/72

Health – Increasing importance, rising from 6 ½ to 8 ½ % of GNP 70-75

Pollution – Rising importance

Industrial – General trend toward automation

Education

Communications

 

International

 

Hewlett sees developed nations which have been expanding rapidly  may have to stop and catch their breath.

Less developed countries will concentrate on social problems, health, communications, education, some industrial growth

 

HP’s traditional line of business allowed it to track rising expenditures in Defense without being part of it.

 

HP enters the 70s as a much more diversified company

 

Instruments are 60% of business

Data processing

Med

Analytical

Components

Systems

Special areas

 

Building for these fields has affected earnings, marketing and R&D in particular

 

How HP will interact

 

Basic Strategies

Use earnings for traditional line to support new areas until they become profitable

HP Labs support new areas

 

Businesses we will be in vs. opportunities

Instrument business is basic

Medical – difficult area

Those less driven by DOD and more by industrial:

AMD

Communication

DMI laser

Some component fields

Data products

Analytical instruments

International

 

Conclusions

Fair match to business in the 1970s

Waiting for economy to improve, get house in order, people in right slots

See 1971 as a static year

1972 could be good

 

3/1-3/71, Copy of typed agenda for the meeting

10/27/70, Letter to Hewlett from E. D. Costello of J. Barth Research inviting him to speak to their Investment forum

11/4/71, Copy of a letter from Hewlett to E. D. Costello accepting their invitation

12/18/71, Letter to Hewlett from John D. Leland, Director of J. Barth Research, thanking him for accepting their invitation and giving details of schedule

2/5/71, Letter to Hewlett from E. D. Costello sending some sample question he may wish to address in his talk

3/4/71, Letter to Hewlett from E. D. Costello saying his contribution to the program was “exceptionally fine.”

3/17/71, Letter to Hewlett from John D. Leland, Jr. thanking him for addressing their forum

3/1-3/71, Copies of two charts showing projected DOD, NASA, and Aerospace expenditures

 

 

Box 3, Folder 4 – General Speeches

 

March 22-23. 1971 – Analysts Breakfast, New York, NY

 

3/22/71, Handwritten notes written by Hewlett on Hotel stationary

 

Hewlett starts with a comment about Eldred passing, and then says that Bob Bonface has been appointed the VP for Marketing, Bill Doolittle appointed VP International

 

Commenting on the first quarter of FY71 he says business has been flat – earnings 4.9M, 19 cents EPS, vs. 5.5M, 22 cents in 1^st Q 1970 – a drop of 12%.

Done much to bring expenses in under control

Profit in line with targets, not unexpected

Introduces Boniface and Doolittle

 

 

Talks about changing nature of business

Shift from defense related

More than 40% in non-traditional products

 

Feels HP is in tune with the times

 

Providing solutions for country’s social problems

Medical and health care

Air and pollution control

Data products

Systems and automation

 

1/31/71, Copy of printed Interim Report for first Quarter, 1971

2/10/71, Copy of a letter from Hewlett to Samuel Payne, Morgan Stanley Company; A. H. Gordon, Kidder, Peabody; Paul Davies, Sr., Lehman Bros.; Walter Frank, Marcus & Co.; and Mortimer Marcus, Marcus and Co, inviting them to a breakfast meeting  of  Security Analysts and HP executives, to be held during the week of the annual IEEE meeting

3/16/71, Memo to Hewlett from Dave Kirby outlining the arrangements for the breakfast meeting with security analysts

3/22/71, Two printed pages, probably from the IEEE program, outlining the schedule of some of the events

 

 

Box 3, Folder 5 – General Speeches

 

April 17, 1971 – Harvard Business School Club of Northern California, award to Edgar Kaiser

 

4/17/71, Typewritten sheet with text of Hewlett’s remarks in introducing Edgar Kaiser, who had been selected by the Harvard Club to receive their “Business Statesman of the Year Award.” Hewlett was asked to be one of the sponsors of the event and to introduce Mr. Kaiser

 

Hewlett says Edgar Kaiser is so well known no introduction is really necessary. However, he says he enjoys this role because he has so much respect for Edgar.

He calls him “one of the most innovative and exciting business managers to appear on the scene during the last thirty years.

 

Hewlett quotes from Kaiser himself to say “We must make our investment of heart and soul as surely as we invest our money. Our returns must be in terms of people, their aspirations, their hopes and ideals as much as on the balance sheet.”

 

A long biography for Kaiser is attached.

 

4/17/71, Copy of printed invitation to Mr. And Mrs. Hewlett

1/8/71, Letter to Hewlett from Lawrence L. Leonard, Conference Chairman saying they appreciate his willingness to be a member of the sponsors’ Committee for Harvard Business School’s 1972 Western Regional Conference.

1/27/71, Letter to Hewlett from Jon R. Katzenbach, Sponsors Chairman, thanking him for agreeing to serve on the Sponsors Committee.

2/29/71, Letter to Hewlett from William F. Geisler, enclosing a draft of the invitation to be sent over the name of the sponsors

2/22/71, Letter to Hewlett from James B. Hill discussing arrangements for the affair

3/4/71, Letter to Hewlett from E. L. Johnson, saying they had received his check for $350 for a table

4/17/71, Letter to Hewlett from Edgar Kaiser thanking him for introducing him at the award dinner.

4/27/71, Letter to Hewlett from James B. Hill thanking him for his participation and asking for $428.86 as his share of the costs.

5/11/71, Letter to Hewlett from George L. Roen acknowledging receipt of his check in the amount of $428.86.

2/11/71, List of HP employees who are graduates of Harvard

 

 

Box 3, Folder 6 – General Speeches

 

June 16 -18, 1971 – Semi-Annual Management Meeting, Palo Alto, CA

 

6/17/71, Handwritten notes by Hewlett for his opening comments. He is obviously concerned about HP’s poor performance during FY 70, and wants a change

 

Hewlett draws a similarity between the church and a corporation:

 

“Call to Worship – which you have had

Prayer of Confession – which you need

Declaration of Pardon – which you will not get”

 

That said he says he will now deliver the 1^st and 2^nd lessons – Benediction, if any, may wait.

 

1^st Lesson

 

This has been the worst month in history: plus 1.8% in sales, 1.1 M behind target, 1.7 cents vs. 6.1 cents per share.

 

Some problem with profit and inventory, but still bad

 

And he continues saying the 2^nd Lesson “is like unto it.”

 

For the year to date compared with last year he says they are 2 ½% down in shipments, and 21.9% in profit before taxes.

 

He says he does not know of a more instructive lesson upon which to base a Sermon.

 

Sermon

 

He says they have all been through a “very difficult” year.

In the first half they were well below targets

In the second half  arbitrary force fit on targets

Long term drop in profits

 

Hewlett sees pricing as a big problem.

 

He sees a 10% wage and salary increase coming over the next 12-15 months which will increase costs by 4% exclusive of other increasing costs.

 

Increased sales by 3.4% – but 6.1% increase in R&D, and 4.9% increase in marketing expense.

 

And he emphasizes that for a 3.4% increase in sales they got a 1.6% decrease in profits – and 1970 was a poor year.

 

Hewlett says he has asked the divisions to increase their prices – he has directed them to increase their prices. But during the last year while the GNP was going up 5.2%, HP prices were going up less than half that, and are now down to about the 1% rate. The only course left appears to be to raise prices by an arbitrary amount  – the only problem is how much.

 

Analyzing the problem Hewlett says the situation is the result of people trying too hard for the wrong thing: volume rather than profit, future long range growth rather than today’s earnings, pushing too hard against a stone wall when the equivalent effort could be better spent elsewhere.

 

He says better planning is needed:

The present system of pure bottom up targeting is not working

Need more specific allocation of dollars based on specific needs and objectives.

And all of this to fit into a given profit objective rather than the profit simply being what is left over once all needs have been met.

 

 

Hewlett states the purpose of the meeting as:

 

To better understand the problem that faces us

To agree on specific courses of action to solve the problem

To leave here prepared to implement a program of reconstruction to get the company back where it belongs

 

6/18/71, Handwritten notes by Hewlett for closing remarks

 

Hewlett reflects on why we come to these meetings and supplies some answers:

Informal contact that are so important – things can be said in an informal atmosphere that are difficult to communicate in a more formal setting.

 

There is a family atmosphere in HP – and a formal part.

 

Allow some top people to bounce ideas

 

He summarizes what has been learned this year:

 

That current year order level is grim

That this not a short time phenomenon, but  long term trend – in part due to failure to keep up with inflation, part due to competition

 

That international is tracking U. S. – the question is will U. S. recovery compensate for international decline?

 

Making some comments Hewlett says he sees some structural problems:

 

Pricing

 

Must be smarter

It is not sufficient to say we are making too much and will not be tomorrow – need flexible pricing

Pricing in terms of what the contribution is – when you have a good product use excess profit – Laser, DMI

 

Targets – Start with profit

 

Longer term planning

 

Initiative still with divisions

Agree on acquisitions

Must be more customer oriented, rather than hardware

Keep changes to a minimum

 

6/16/71, Copy of typewritten agenda for the meeting

5/12/71, Copy of a memo from Austin Marx to Hewlett, Lee and Boniface saying he thinks HP is falling behind on pricing

Several sheets of tables giving data on operations and finances

 

 

Box 3, Folder 7 – General Speeches

 

September 23, 1971 – “A Positive Approach to U. S. Exports,” World Affairs Council of Northern California, Palo Alto, CA

 

9/23/71, Outline of Hewlett’s remarks, handwritten by him

 

Hewlett tells how,  during the years after World War II, the U.S. had the financial and industrial strength, and the technical knowledge to try to get the free world going again. But now some problems.

 

Trade deficit –             Due, in part, to our inability to control our  internal inflation

Balance of payments

 

He talks about the Bretton Woods principle and how it will affect the United States

Cheaper labor abroad

 

Some cards the U. S. holds:

Know how to compete

Rise of technology

Rising standard of living – replace labor with capital

 

“The new challenge is to learn how to live and compete in a world where U.S.  is not the dominant partner, but an equal partner. This is going to be harder than you think.”

 

9/8/71, Memo to Hewlett from Tom Christiansen to Hewlett attaching an article on the subject for background.

9/13/71, Letter to Hewlett from Richard G. Heggie, Executive director, World Affairs Council, giving details on arrangements for the luncheon.

9/23/71, Handwritten note to Hewlett from Austin Marx attaching a background article

10/5/71, Letter to Hewlett from Wallace E. Connolly, World Affairs Council, thanking him for his talk at their meeting.

Copies of several additional background articles

 

 

Box 3, Folder 8, – General Speeches

 

October 20, 1971 – “The New American Challenge” – Receiving the WEMA Medal of Achievement, Los Angeles, CA

 

10/20/71, Handwritten comments, written by Hewlett, reminiscing about the early days of WEMA, and expressing appreciation for the award.

10/20/71, Copy of earlier handwritten draft of same talk

 

10/20/71, Outline of speech, titled “A New American Challenge,” handwritten by Hewlett

 

The U. S. is indeed in some serious trouble – how can we get out – are we really broke

 

Our world has changed, and we have been unwilling to see it and admit it. Need to take a new look at the world as it is today – not as it was 21 years ago. The New American Challenge is not to others, but to ourselves.

 

Hewlett reviews the problem:

What is happening to U. S. foreign trade – what is our competitive position? He says he approaches this as a free trader, a believer in the role of technology, and a firm believer in the role of competition

 

And he gives some background on the problem:

U. S. was dominant during the years following World War II

U. S. imports 2:1 in favor of U.S. in 1947, now negative

Not that exports have not risen (up 4 fold during this period), imports have risen faster. From 1961 to 1971 imports of autos rose 1500%, TVs up 600%.

 

But before we panic look at some of the positive factors in U.S. and consider how we can capitalize on them once the U.S. dollar is properly priced in the world market.

 

He reviews important factors in the U.S. which should be highlighted

Anti-trust act – sharpened competition

Rise of technology

Rising standard of living

 

He suggests a constructive program

 

Management Science. Use to make U.S. production more efficient, both for exports and against imports.

 

Concentrate on high technology products

 

Increment production ability

 

Conclusions

“Although our international competitive posture has been greatly weakened, we still have many basic strengths. We shouldn’t panic, but should take stock of areas of strength and concentrate and build on these areas. There is going to be a readjustment of internal economy that will be difficult, but fundamentally, they are in the right direction.”

 

10/20/71, Copy of earlier handwritten draft of same talk

10/20/71, Copy of typewritten paragraph describing the WEMA award

7/8/71, Letter to Hewlett from R. Stanley Dollar, Jr. congratulating him on the award

7/12/71, Letter to Hewlett from J. E. Wallace Sterling congratulating him on the award

7/21/71, Copies  of letters from Hewlett to each of the above thanking them for their note.

7/15/71, Handwritten note to Hewlett from Frank Seckler congratulating him on the award

7/22/71, Copy of a letter from Hewlett to Frank Seckler thanking him for his note

7/1/71, Letter to Hewlett from William Cook saying he is pleased to learn that Hewlett can accept their invitation to be the featured speaker at the Chief Executive’s Night in October

7/21/71, Copy of a letter from Hewlett to William L. Cook discussing dates that would be acceptable

7/23/71, Letter to Hewlett from William L. Cook saying Oct 20^th would work well

7/28,71, Copy of a letter from Hewlett to William L. Cook giving the time he will arrive in Los Angeles

7/26/71, Letter to Hewlett from J. I. Hamilton congratulating him on the award and telling him that he had been doing the last several years

8/3/71, Copy of a letter from Hewlett to J. I Hamilton saying he was delighted to hear from him

8/2/71, Letter to Hewlett from John J. Tordoff congratulating him on the award

8/4/71, Copy of a letter from Hewlett to John J. Tordoff thanking him for his note

8/6/71, Letter to Hewlett from Don Larson reminding him of a reception prior to the award luncheon

6/25/71, Letter to Hewlett from R. C. Mercure, Jr. of  WEMA, confirming his selection by WEMA  for the Medal of Achievement

6/30/71, Copy of a letter from Hewlett to R. C. Mercure saying he is delighted to be selected for the award

8/24/71, Handwritten note to Hewlett from Richard M. Leonard saying it was good to see him again

 

 

Box 3, Folder 9 – General Speeches    

 

December 13-14, 1971, Management Meeting, San Felipe Ranch

 

12/13/71, There is no copy of a talk Hewlett may have made at this meeting, however one of the managers, Tom Perkins, made comprehensive notes on what each manager said and the following is from his notes on Bill Hewlett’s summary of the meeting.

 

1. Human relations practices must be improved – several instances of poor judgement
2. The management by objective  concept needs to redefined and communicated to all HP managers
3. Group structure seems to be working – need to clarify gray areas
4. Probably should identify a single spokesman to handle safety and pollution problems
5. Should put all hourly employees on salary basis where possible
6. Need policy statement on financial disclosure and confidential information
7. Present price approval mechanisms should continue, although Morton may begin to do his own pricing in the future
8. Dean Morton and Emery Rogers to be appointed to Executive Council
9. 1972 targets approved an annual basis and all targets to be done on annual basis without resetting in six-month intervals

 

11/9/71, Memo from Ray Wilbur to Tom Perkins giving his ideas on topics for discussion at the management meeting

11/17/71, Memo from Emery Rogers to Hewlett with his thoughts on the forthcoming meeting

11/17/71, Memo from Dean Morton to Tom Perkins giving his ideas for the meeting

11/18/71, Memo from Bill Doolittle to Tom Perkins giving his ideas for the meeting

11/18,71, Memo from Ed Porter to Hewlett with his ideas for the meeting

11/18/71, Memo from Ray Demere to Tom Perkins giving his thoughts for the meeting

11/18/71, Memo from Frank Cavier to Hewlett giving his ideas on topics to discuss at the meeting

11/22/71, Memo to Hewlett from Bob Boniface with his thoughts for the meeting

11/29/71, Memo to Hewlett from Ralph Lee with his thoughts for the meeting

11/29/71, Memo to Hewlett from Tom Perkins attaching a preliminary model for statements looking ahead several years

11/30/71, Memo from Tom Perkins to managers attending the meeting saying Hewlett would like to discuss several general topics and has assigned each of these to managers as shown on an attached list

12/6/71, Memo to top managers from Ray Wilbur attaching a proposed updating of HP’s Management Development Program

12/27/71, Memo from Tom Perkins to top managers outlining material covered at the meeting

1/5/71, Handwritten note to Hewlett from Ray Wilbur with his summary of the discussions on topics at the meeting

12/13/71, Copy of a table analyzing inventories

Copy of what a possible annual report for HP in 1981 would look like

 

 

Miscellaneous – Undated, untitled folder, containing miscellaneous material as listed below:

 

2/8/60, Copy of a memo from Ed Porter, but not addressed, giving a suggested organizational format for HP plants

2/15/60, Copy of a memo from “Vet” to Porter giving a five year forecast of space requirements

Undated, note from Ed Porter to Ralph Lee urging action on plans to build building #5 or #6

Undated, Several groups of pages torn from notebooks upon which Hewlett has written information concerning actions on the development of HP facilities in Europe

Box 3, Folder 10, – General Speeches

 

November 30, 1972 – “Environmental and Social Forces Affecting Business in the Bay Area,” Bay area Outlook Conference, San Francisco, CA

 

11/30/72, Typed text of Hewlett’s speech

 

Hewlett starts with a discussion of the general characteristics of the Bay Region and their impact on the business climate.

 

He feels the San Francisco Bay Area is one of the outstandingly attractive regions in the U.S., and that it is this very characteristic that is most threatened by uncontrolled growth and destruction of the environment.

 

He points to the region as a center of culture and learning – museums and art galleries, symphonies and operas known throughout the world. Two great universities have had a “profound influence on the region’s development.”

 

He describes the area as having “some of the nation’s largest and most important companies,” – but highly organized by unions, and thus “one of the most expensive regions of the country in which to do business.”

 

He says it is of no coincidence that “out of the liberal thinking of the region the ‘Free speech’ movement at U.C. originated and soon spread to the rest of the country,” as shown by the student unrest of the past few years.

 

From the “poverty pockets of the East Bay came the Black Panthers, and I am sorry to say, also the Hell’s Angels.”

 

And he mentions that “The region was one of the first to rise up in its wrath and say ‘no more’ to the State Division of Highways as it attempted to fill some of the choice sections of the region with snaking strips of concrete.

 

“No,” he says, “I would not say that the Bay Area is a region without spirit or imagination.”

 

In the environmental area, Hewlett sees latent, if not current, problems. “The fact that there are already six regional organizations now operating speaks to this point.”

 

He names some of the specific problems areas: urban sprawl, traffic and transportation, waste disposal, quality of water and air…. ”What makes these problems particularly pressing here,” he says, “is the geographical nature of the area with its narrow strips of land, with its proximity to many waters, and a natural formation that can and does easily trap smog.” But he cannot say that these environmental problems have “at the present time, an unusually adverse effect on business in the area.”

 

My concern,” he says, “rests with the social forces that I see acting in the area.”

 

And he cites the city of Berkeley as an “archetype” of the social problem he has in mind. “Berkeley now has a near majority of radical council members. Many of their recent actions might be defined as a sharp departure for normal city administration.” And he points to rent control as an example. He quotes the Chronicle newspaper as saying that ‘In much of the business community, the radical presence at City Hall has been viewed as somewhat akin to the Visigoths sacking Rome.’

 

Looking at his home town of Palo Alto, Hewlett says that “any suggestion of expansion in the industrial area is met with substantial resistance. At the instigation of the radical organization, Venceremos, the City council asked the city Attorney whether it could legislate that no defense work could be carried on within the city limits.

 

“It is very difficult to plan a business program in such an environment,” Hewlett says. “Unless and until I feel that there is a more friendly climate toward business in the community, I am unwilling to allow any more expansion in Palo alto than is absolutely necessary.”

 

In addition, Hewlett points to a recent survey among business executives where “…43% responded that the major disadvantage of doing business in the Bay Area had to do with the high cost of labor and of land, 32% cited high taxes and cost of government, and 27% unions and union dominance.”

 

Hewlett feels these factors, coupled with a rather negative attitude toward business, has had an very adverse effect on the local business attitude. He says many businesses have moved out of the area or are thinking of doing so.

 

Having pointed out some reasons why he is concerned about the climate for business in the Bay Area, Hewlett turns to some methods that, he feels, might possibly reverse some of the trends.

 

“First,” he says, “I believe that we need more effective and realistic planning – planning that can stand the test of time and provide stability to the region.”

 

Regional planning can allow “business and industry to make long range plans without the prospect that tomorrow, through some capricious whim of a single community, your plans, and indeed the returns from your investments can be negated.”

 

Hewlett feels business “should bend more than it has been willing to do in the past toward recognizing the wishes of the community. It needs to understand the community’s character, its aspirations, its needs and its goals. This is not an easy job as there are many diverse pressures in a community that are not always pointed in the same direction.”

 

Corporations should “encourage employees, regardless of position in the company or party affiliation, to take an active interest in the community and its political processes. The best antidote for radical thinking is reality. Anyone who makes his living in business – from the janitor to the president – is going to be better qualified to separate fact from fancy than someone who has only a theoretical base of this position.”

 

On the other hand, Hewlett says “…environmentalists must be willing to make some compromises. A ‘stop the world, I want to get off’ attitude is going to be self-defeating. The environmentalists will, in the long run, lose more than they can ever gain by such an approach, for society will simply brush them by as unrealistic dreamers.”

 

He gives an example of unrealistic thinking by some environmentalists, in this case from the Sierra Club. “…a recent Sierra Club report, addressing itself to the question of new power plants in California, stated that these plants ‘take up an inordinate amount of valuable open space.’ It went on to state that ‘should utility projections materialize, gigantic atomic generating pants would line the coast at five mile intervals by shortly after the year 2000.’

 

“Such statements are simply untrue. Moreover, they are particularly damaging in that they only contribute to the growing power shortage in our state.”

 

Hewlett gives another example, which involves HP’s planned facility in Santa Rosa. “This is a plant,” he says, “for which very careful planning has been devoted to have it complement the natural attractiveness of the region. Yet some conservationists have opposed any such development even though the unemployment rate in Santa Rosa is more than  9%, and many of its young people must go elsewhere if they are to find a meaningful job commensurate with their education.

 

“So the community, too, must be willing to change its attitude toward business.”

 

“An industrial plant is a living thing populated by human beings – it should not be relegated to the wastelands – to the most unattractive areas. Its employees spend one-third of their waking hours there, and they are entitled to pleasant and attractive surroundings. Too often industry is simply looked upon as an alternate source of revenue and no more – something for which the community has no real responsibility.”

 

Hewlett says a former City Manager in Palo Alto commented to him once that he could run the city without any property tax at all because the city got so much money form business and industry. “Yet,” Hewlett says, “industry in Palo Alto is made to feel like a second-class citizen.

 

“But when all is said and done, the ball is on the business side of the court. If there is to be meaningful regional planning, business must get behind it and push. Business must supply the jobs for our unemployed and underprivileged citizens. Business must be willing to try and ‘sell itself’ to the community and become an exemplary corporate citizen., and business, by its actions, must convince the public that the free enterprise system is able to adapt to changing times, and that it is a fundamentally better approach than that provided by socialism.”

Box 3, Folder 11 – General Speeches

 

June 1, 1973 – “Did I make the Right Decision,” Commencement Speech, Polytechnic Institute of New York, Brooklyn, NY

 

6/1/73, Copy of typewritten text of speech

 

This speech is essentially the same as that given at Brigham Young University on February 14, 1963, so it is not repeated here.

 

 

Box 3, Folder 12 – General Speeches

 

September 20, 1973 – “Current and Future Commercial Relations with Russia,” East-West Trade Panel, International Industrial Conference, San Francisco, CA

9/30/73, Copy of the typewritten text of Hewlett’s speech

 

Hewlett says he intends to discuss trade relations with the U.S.S.R. from the U.S. standpoint. He starts by reviewing the background of trade relations between the two countries, listing the turning points of  this relationship as it developed over the years. He mentions:

 

1811 – Russia was taking one-tenth of the total exports from the U.S., and was a major supplier of marine stores to the U.S.

1832 – A treaty on navigation and commerce between the two countries was signed granting Most Favored Nation status to each nation.

1911 – This MFN Agreement was abrogated by the United States because of Russia’s policy of restricting the immigration of Jews from Russia.

1920 – Although World War I and the Bolshevik Revolution isolated Russia from the West, Herbert Hoover’s American Relief Administration spent $20 million dollars of Congressional appropriations sending grain to famine-stricken Russian peasants.

1931 – The Soviet market was taking two-thirds of all U.S. exports of agricultural equipment and power-driven metal-working machinery.

1934- The Soviet Regime, under Stalin, was recognized by the U.S. In 1933, and in 1934 the Export-Import Bank was established  expressly to finance trade with the U.S.S.R.

1936 – The U.S.S.R. granted MFN status

Following World War II, the advent of the Cold War brought a sharp decline in commercial relations between the two countries. The U.S. judged the Soviet Union to be in default because of transactions resulting from the wind-up of the Lend-Lease program.

1951 – Increasingly restrictive measures by the U.S. had limited trade with communist countries, and in 1951 MFN status for all was revoked.

1959 – Earlier, President Eisenhower had decontrolled 700 commodity items for export to the U.S.S.R. and Krushchev visited the U.S.

1964 – Senate hearings on East-West trade revealed considerable interest within the U.S. to loosen restrictions. The Johnson Administration removed a large number of nonstrategic items from the controlled list. $110 million wheat sale to the Soviet Union by the U.S.

1966 – East-West Trade Relations Act was an effort to extend MFN status to communist countries, failed due to Vietnam War climate. The Nixon Administration continued to try and liberalize trade restrictions.

1969 – U.S. exports to the U.S.S.R. had doubled over preceding years, surpassing $100 million for the first time since the 1964 wheat sale. Soviet Five-Year Plan stresses their need for the development of its electronics, chemical and consumer industries.

1971/1972 -Secretary  of Commerce Stans and Soviet Union Minister of Foreign Trade Patolichev exchange visits.

1972, President Nixon visits Secretary General Brezhnev in Moscow, resulting in agreement on trade relations between the two countries. One principle included stated “The United States and the Soviet Union regard commercial and economic ties as an important and necessary element in the strengthening of their bilateral relations, and thus will actively promote the growth of such ties. They will facilitate cooperation between the relevant organizations and enterprises of the two countries and the conclusions of appropriate agreements and contracts, including long-term ones.” This was followed by several agreements concerning grain, settlement of debts, and scientific cooperation and so forth.

 

In reviewing the status of current trade relations Hewlett says “…it is evident that each country has strong reasons for wanting to expand both trade and technical cooperation with each other. The U.S. sees the Soviet Union as a major trade partner….On the other side of the ledger, the U.S.S.R. has real need for more East-West trade.”

 

Hewlett gives some production figures to illustrate the gap  between the Soviet productivity and that of the U.S. “It was apparent by 1972,” he says, “that the Soviet economy was lagging badly behind plan. The GNP had only risen about two percent….Crops, ferrous metals, and chemical products had slid badly, and natural gas production was down for the first time in 20 years. It should have come as no surprise, therefore, that the Soviets were so receptive to U.S. proposals for improvement in trade relations.

 

However, MFN status remains a problem Hewlett says, and adds that Congress wants to place a condition on MFN status pending a “more reasonable approach by the Soviets to the [Jewish] exit visa problem. It would be a mistake to assume that these [proposed conditions] spring solely from the Jewish community. I think that the average American with a tradition of freedom of movement has a very hard time understanding the Soviet position on this point. I do not feel that this problem will go away easily.”

 

Hewlett discusses the problems U.S. exporters have dealing with the Soviet Union where most trade is carried on through foreign trade organizations, who speak for the total demands of the country. “The American businessman,” Hewlett says, “ is used to talking directly with the customer and ascertaining firsthand the customer’s problems. It can at times become extremely difficult to have to work through these FTOs although they are a basic part of the system.”

 

Hewlett says he feels this lack of “direct, personal contact between the American businessman and his Soviet counterpart” is one of the “greatest obstacles” to increased trade with the Soviet Union.

 

“It seems obvious to us,” Hewlett says, “that any long-term trading relationships must depend upon some form of quid pro quo. If the Soviets are going to purchase any reasonable quantity of goods with their limited foreign exchange, they must get something in return—either technical know-how, the right to manufacture certain products, or some method of earning foreign exchange. These are not easy problems to solve and we are currently wrestling with them.”

 

Hewlett says he thinks it an be said that “political considerations are often more important to trade relations with a socialist state than would be the case with trade between free market countries.

 

“As I pointed out at the beginning of my presentation, the relations between the U.S. and the Soviet Union has had a long background of being up and down. I have no reason to believe that history will not repeat itself, and there will be occasions when the current détente may be set aside for political reasons. But in the long-run, I feel that economic pressures will prevail and that the United States and the Soviet Union, whether they like it or not, will find themselves as important trading partners.”