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
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
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,
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 10th. 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
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:
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
He lists the next topic as The Management Structure, the Office of the Chief Executive, and the Management Council
Management by Objective
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