1968 – Hewlett Speeches

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.



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




  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




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