1963 – Watts

01/63

  • From Our President’s Desk, Dave Packard, 2.
  • the year to come
  • 1962 Sales and Earnings at All-Time High, 3.
  • Modern Bonanza (NASA Deep Space Instrumentation Facility), 5.
  • Tenth Anniversary for Yewell Organization, 6.
  • H-P in the News (Business Week, 1/5/63 — H-P’s new marketing setup), 10.
  • Hewlett-Packard VmbH Featured in ’62 German Electronic Shows, 11.

02/63

  • From Our President’s Desk, Dave Packard, 2.
  • fiscal situation
  • temporary transfers
  • Three HP Executives Named to V.P. Posts, 3.
  • Edwin van Bronkhorst
  • Ray Wilbur
  • William Doolittle
  • Boonton Radio Receives New Jersey “New Good Neighbor” Award for ’62, 4.
  • Harris-Hanson of St. Louis (HP Sales Representative for three State Area), 6.
  • Neely Launches Unusual Craft–A Landlubbing Bus (mobile lab), 8.
  • Hewlett-Packard Limited Exhibition, 9.
  • “TIME” (1/25/63) Article Traces HP Growth, 10.
  • HP Participation Scheduled For Two International Industrial Design Exhibits, 10.

03/63

  • From Our President’s Desk, Dave Packard, 2.
  • personal development
  • continued education
  • ’63 IEEE Show–“Sneak Preview”, 3.
  • Sales Regroups Along Divisional Lines (HP’s Corporate Organization Takes Another Big Step in Setting Up Integrated Product Divisions), 4.
  • Five Key Promotions in Sales Reorganization…, 5.
  • Bill Terry
  • Bob Brunner
  • John Young
  • Tom Kelley
  • Dean Morton
  • New Synthesizer (HP Model 5100A/5110A) Represents Unique Addition To Product Line, 6.
  • Making Tracks In a Big Territory (Bivins & Caldwell, Inc.), 8.
  • Neely Sales Conference Gears to Era Ahead, 10.
  • HP Organizational Changes, 11.

04/63

  • Joint Venture in Japan (formation of Yokogawa-Hewlett-Packard, Ltd.), 2.
  • Ultramodern Scope Plant for Colorado Springs, 4.
  • IEEE Scores Hit at New York, 5.
  • A Small But Might Team (Stiles Sales Division, Florida), 6.
  • The People Who Make the Computer Work for HP, 8.
  • Drill Achieves Unheard-of Accuracy, 10.
  • Packard Receives National Award (“American Way of Life” award), 11.

05/63

  • LAST ISSUE IN MAGAZINE FORMAT–TO BE REPLACED BY MEASURE MAGAZINE–WATT’S CURRENT TO CONTINUE AS LOCAL PALO ALTO NEWSLETTER, FORMERLY CALLED LOCAL NEWS.
  • From Our President’s Desk, Dave Packard, 2.
  • expansion and the company’s long-range future
  • Measure is Coming! (new corporate-wide employee magazine), 3.
  • Dymec 2010’s Lead in Digital Systems, 4.
  • New Division Tackles New York State (Syracuse Sales Division), 6.
  • Electrical Erosion Put to Work, 8.
  • Race Car Timing Comes of Age With HP Equipment, 10.
  • 240-Acre Recreation Area For Loveland, 11.

08/63

  • FIRST ISSUE IN PALO ALTO NEWSLETTER FORMAT
  • Announcing Evening Development Programs, 1.

09/63

  • Give the United Way, L.A. Fulgham, 1.
  • WESCON’s Service Award To Stanford’s Terman, 1.
  • New Instruments Introduced By HP’s Measure-ama, 1.
  • HP Man Introduces Steel-Rule Die-Set To Latin-American Industry, 2.
  • Ingenuity Pays with Innovation of B-M Gage, 3.

10/63

  • Frank Cavier, Member Gubser Russian Tour (Three-Week Trip Behind Curtain), 1.
  • Give the United Way, L.A. Fulgham, 1.

11/63

  • Bruce Wholey Named Sanborn General Manager (Waltham Reorganized as Division), 1.
  • United Fund Mid-Drive Report, 1.
  • Soviet Tour Highlights, Frank Cavier, 2.
  • Help the College of Your Choice (Funds Matching Program), L.A. Fulgham, 3.
  • Overseas Supervisory Program Launched, 3.

12/63

  • New Quarters for HP Associates Dedicated, 1.
  • Don’t Drag Your Halo! (Christmas philanthropy), 1.

1963 – MEASURE Magazine

July 1963 First Edition of Measure Magazine

  • Packard welcomes first edition of Measure magazine; with growth of company, need for more sophisticated medium than informal, face-to-face communication to inform the 6,000 employees of the company’s plans, policies and important developments of operating groups. 2
  • Sanborn 350 8-channel recording system helps NASA monitor astronauts. 3
  • Hewlett interview focuses on international operations. 4 6
  • Noel Porter, vice president of operations, discusses corporate business outlook and progress. 7
  • Geneva technical seminar focuses on Mymec instruments. 7
  • Lahana Sales Division has new facility near Denver. 8 9
  • Robinson Sales mobile lecture lab brings instrument demonstrations to customers.10
  • Boonton contest winner measures Q of coil. 10
  • First-half earnings and sales up. 10
  • Harrison Laboratories Division to build in Berkeley Heights, N.J. 11
  • Organization chart. (insert)

August 1963 Fragile: Electronic Instrument

  • Packard discusses order policy and predicting customer orders. 2
  • RMC Sales Division profiles Robert Asen, founder, Milt Lichtenstein and Charles Sargent. 3 5
  • Packaging challenges for electronic instruments. 6 8
  • Noel Porter discusses third-quarter financial results, record high earnings. 8
  • HP’s Wescon trade show participation is most extensive in company’s history. 9
  • Loveland timing device used to time Soap Box Derby. 7
  • HP rated 408 in Fortune 500 list. 9
  • YHP department heads visit Stanford Plant; YHP joint venture up for final approval by Japanese government. 10
  • Sanborn treadmill debuts. 10
  • New Connecticut sales office opens in Middletown, Conn. 10
  • HP sailor exercises right-of-way over freighter in SF Bay. 12

September 1963 Wescon ’63: The Big Show

  • Packard discusses people as company’s most valuable asset. 2
  • HP at Wescon trade show is biggest and best ever. 3
  • HP opens new offices and plants Colorado Springs, Harrison Laboratories Division in N.J., Moseley Co., Paeco building in Palo Alto, YHP, Hachioji, Japan. 4 5
  • Air consolidation shipment program launched. 6
  • HP Germany featured on TV report in Frankfurt. 6
  • Robinson Sales Division has soap box winner. 6
  • Noel Porter reports on division activities. 7
  • HP Associates holds semiconductor lectures. 7
  • Crossley sales division covers a million square miles. 8 10
  • HP measures Chicago White Sox pitchers’ speeds using 522B electronic counter. 12

October 1963 Yokogawa and HP Join Hands

  • Packard explains the Yokogawa-HP formation as important milestone in company growth. 2
  • Founding of YHP from merger of Yokogawa Electric Works (YEW) and HP brings together most respected names in electronic measuring instruments. 3 7
  • HP instruments used in Naval Observatory project for new long-range clock synchronization technique. 7
  • Corporate travel desk takes worry out of travel planning. 8
  • HP finance holds seminar to discuss accounting practices. 8
  • Instrument Society of America (ISA) honors Hewlett and Packard for contributions to electronic measurement. 8
  • Noel Porter discusses operations outlook. 9
  • HP oscilloscope and generators donated to U. of Denver. 9
  • 20 HP mountain climbers celebrate 100th anniversary of Harvard professor’s survey expedition of Sierras. 10
  • HP female skydiver is member of Hi-Sky Club. (women) 12

November 1963

  • Packard discusses divisionalization of company to improve operating efficiency. 2
  • Sanborn equipment monitors surgery. 3 4
  • Horman open house in Rockville, Md., attracts most visitors in history. 5
  • Bedford, England, designs and builds first instrument, 5090A standard frequency receiver. 5
  • Decentralized order processing system is explained. 6 7
  • HP corporate vice president and secretary, Frank Cavier, visits USSR. 8
  • Seminar held in Geneva for leadership training. 8
  • Sales divisions participate in EER trade show. 8
  • Noel Porter presents preliminary year-end ’63 results. 9
  • HP booth at IEEE Toronto draws 3,000. 9
  • YHP get training in instruments to be produced in Japan. 10
  • Harrison labs is getting new plant. 10
  • HP Stockholm, Sweden, technical fair held. 10
  • Shotgun recoil measured. 12

December 1963

  • Packard reflects on year; Christmas message. 2
  • Machine shop lapping machines provide precision parts. 3
  • General-purpose test cart accepts any HP instrument. 4
  • Cost-reduction seminar held at Loveland, Colorado. 4
  • Yewell exhibits at NEREM show and receives most sales leads and inquiries ever. 5
  • Training the trainers sessions for managers held. 5
  • Month-by-month 1963 year-end review; year of significant progress. 6 7
  • New sales offices open in Lahana, Lipscomb, Neely. 8
  • W. Noel Eldred discusses marketing activities and takes stock of past year. 9
  • Loveland Junior Achievement learns business. 9
  • Dymec division has $1 million month. 10
  • HP package wins award. 10
  • HP equipment survives fire at Indianapolis airport. 10
  • HP summer employee does charity year round. 12

1963 – HP Journal Index

January/February 1963 v.14 n.5-6
A Versatile Wave Analyzer for the 1 kc to 1.5 Mc Range, by Stanley McCarthy. 310A.

A Quick, Convenient Method for Measuring Loop Gain, by Philip Spohn, pg 5. AC-21F.

March/April 1963 v.14 n.7-8
A New Microwave Modulator, by Nicholas J. Kuhn. 8714A.

A Convenient Probe for Sensing Magnetic Fields, by Arndt Bergh, pg 7. 3592A.

Using the Smith Chart with Negative Real-part Impedances or Admittances, by Harley L. Halverson, Luiz Peregrino, pg 8

New Submultiple Prefixes, pg 8

May/June 1963 v.14 n.9-10
A New Multi-Function Voltmeter for General Laboratory Use, by Paul G. Baird. 410C.

A Guarded Amplifier for Increasing Digital Voltmeter Sensitivity, by Donald H. Jenkins, pg 6. DY-2411A, DY-2401A.

July 1963 v.14 n.11
An 800-2400 MC Signal Generator with Automatically-Leveled Output Power, by James R. Ferrell. 8614A.

A Variable-Frequency AC Power Supply for General-Purpose Testing, by Duane P. Lingafelter, pg 6. 4301A.

August 1963 v.14 n.12
A Wide-Range RC Oscillator with Push-Button Frequency Selection, by Robert W. Colpitts. 241A.

Special Push-Button Audio Oscillator for Telephone Testing, by Robert W. Colpitts, pg 6. HO1-241A.

A Tunnel-Diode Pulse Generator with 0.1 Nanosecond Risetime, by Roderick Carlson, pg 7. 213B.

September 1963 v.15 n.1

A Basic New Wide-Band Oscilloscope with Planned Anti-Obsolescence, by Richard E. Monnier. 140A, 1415A.

The Time Domain Reflectometer, by Lee R. Moffitt, pg 6-7. 1415A.

The Radial Field Cathode-Ray Tube, pg 7

Amplifier Plug-ins, pg 8-9. 1401A, 1400A, 1403A, 1402A.

SweepGenerator Plug-Ins, pg 10-12. 1420A, 1421A.

October 1963 v.15 n.2
A General-Purpose Pulse Generator Producing High-Power, Fast-Rise Pulses, by Johan Blokker, George Kan. 214A.

A Clip-on Current Probe for Wide-band Oscilloscope Measurements, by John G. Tatum, pg 5. 1110A, 1111A.

NBS Inaugurates Higher Power VLF Standard Frequency Broadcasts, pg 8

November 1963 v.15 n.3
A New Multi-Purpose Digital Voltmeter, by Charles W. Near, David S. Cochran. 3440A.

Voltmeter Plug-ins, pg 3. 3441A, 3442A.

A New Coaxial Crystal Detector with Extremely Flat Frequency Response, by Russell B. Riley, pg 8. 423A.

December 1963 v.15 n.4
A New Series of Microwave Sweep Oscillators with Flexible Modulation and Leveling, by Robert L. Dudley. 691A, 691B.

Examination of the Atomic Spectral Lines of a Cesium Beam Tube with the -hp- Frequency Synthesizer, by Leonard S. Cutler, pg 8

1963 – Packard Speeches

Box 2, Folder 51 – General Speeches

 

April 19, 1963, Acceptance of  “The American Way of Life” award from the Sertoma Club, Pueblo, Colorado

 

4/19/63, Typewritten speech with handwritten notes by Packard.

 

Packard expresses appreciation for the honor of the award and to all the people who

came to the dinner and ceremony.

 

Looking back to his life in Pueblo 30 years prior Packard remembers several high school teachers, the various athletic teams, –  the hunting and fishing.

 

He remembers “something of the state of world affairs at that time. …the era of Calvin Coolidge and Herbert Hoover….the feeling that America was sell isolated…from the power diplomacy of Europe….The prevailing opinion of the late 1920s and the early 1930s, was that the Monroe Doctrine – combined with the vast expanses of the Atlantic and Pacific oceans were more than adequate to keep America from being seriously entangled in the affairs of Europe – of Asia, Africa, South America – and the rest of the world just didn’t seem to count for much.”

 

Packard  tells of the depression which he says was “out greatest nation concern…..GNP had dropped to 60 billion dollars. In that period, government expenditures — Federal, state and Local combined – were only about 10% of GHP [GNP?] and as I recall, the Federal expenditures alone were only 2% or 3%. This year…combined Government expenditures …are about equal to our total national production 30 years ago.

 

“The influence of Science was beginning to have its effect – an effect which was to be accelerated to a tremendous pace in the years that followed. I remember the first broadcast station in Pueblo…in about 1924. By 1930, broadcasting was well established throughout the country, but programs from Europe were not yet feasable [sic]. Television had been produced in the laboratory…the automobile was an important part of our economy…Air travel was just beginning.”

 

“All in all”, Packard says, “the future looked bright to me in those days – despite the depression. But, looking back, the things which have come about in these past three decades, have been more expensive than any of us could have imagined in our wildest dreams.

 

“The rise of Hitler — and World War II, galvanized the latent strength and capability of our country — and we found ourselves in a position of undisputed world leadership….new forces have come to bear to make the world of 1963 totally different from the world of 1931. We understand some of these forces — but we do not yet know how to cope with them. We do not know in what way they will affect the future of our country, nor, for that matter, how they will affect the future of each of us as individuals.”

 

Packard calls to mind some of the forces “which have changed the face of our world in these three decades — …the revolution in communication, the revolution in transportation and the revolution in our knowledge of and…our ability to master nature and our physical environment….Radio, television, teletype, the vast array of publications of all types, bring to a majority of the people everywhere in the world – information in considerable detail, about what is going on everywhere else. Horizons are opened up, new aspirations aregenerated….They can transmit bad ideas as well as good and from all this arises a new concern, among millions of people as to whether their lot in life is what it should be. We see signs of this everywhere — conflict – as more people learn that their lot in life can be improved as the underprivileged see and hear what can be done, these pressures will continue to increase and become more widespread. This revolution in communication we have seen may turn out to be a boon for mankind – it may, on the other hand, be a Pandora’s box – and one already opened. In any case, it is a fact and must be dealt with.

 

“The advancement of our skill in transportation is having a similar effect. In 1930, the dimensions of the world was measured in weeks — now it is measured in minutes.

 

“In medicine – we have conquered some of the most serious diseases of man and increased life expectancy to over 79 years. But, again, we find this has raised serious problems; a population explosion which is going to make it extremely difficult to convert whatever gross gains we make into gains for the individual.

 

“In the last three decades, we have increased the generation of electrical energy so as to have six times as much available for our factories and for our homes as we had in 1930. Here, fortunately we have much more electrical energy available for each individual as well.

 

“I am sure you will agree that what has happened has been considerable in magnitude and scope. And these achievements have also generated some PROBLEMS for us which are considerable in magnitude and scope.”

 

“The continuing education of the scientists to carry these things forward in the future is…a matter if high priority,” Packard says. “But, of even greater importance for the future is the development of leadership which can better understand and guide these great social and human problems which we are generating with our science. Perhaps we will somehow find solutions through divine guidance — perhaps we can somehow turn the clock back to what many think of as the GOOD OLD DAYS. It is my view that we can and will find solutions for these problems in the future. It will require more knowledge and more wisdom than we now have – and this can come only from better education – at all levels…..”

 

“Our economy in America has changed from one dependent primarily on raw materials to one highly dependent on educated people. The future of Colorado may be enhanced by further mineral discoveries, and water will, of course, play an important role. but far and away the more important is the quality and extent of the educational opportunities you are able to provide for your men and women – old as will as young. New industries will be attracted by the number and quality of your college and university graduates. And they will find ways to establish new ventures as well as strengthen old ones.

 

“While I have touched on some of the things that have happened since I left Pueblo, I want to add a comment on why, in my opinion, our country has been at the forefront of this amazing progress. If one examines the progress in every area, communication, transportation – in education – in the discovery and application of new knowledge in every field — it has in a decisive way been motivated by the drive of our private enterprise system. The growth of radio from the old crystal set to the satellite communication system is the story of individual people working in private enterprise. America has more electric power capacity than the next five nations of the world combined — not because of our public power projects — but because of  the initiative and capability of the individuals working our privately owned utilities. Private enterprise firms developed the airplane from the beginning to modern jet. Private enterprise has built the finest air transportation system in the world. The American farmer with his eye on his crops, using machinery developed by private enterprise, has made our agriculture the most efficient in the world.

 

“And, not least of all, it has been our great privately supported and, therefore, independent universities which have provided most of the leadership for all of higher education in America.

 

“This amazing progress in America has been built on the strength of individual people applying their talent, directing their energies and capabilities in an environment of freedom  to shape their lives as they see fit. Nowhere in history has any other social order been so effective in advancing the welfare of its people.”

 

“But, as each of you well know, this American way of life of ours has been challenged and is under attack. Khrushchev and his communists have threatened to “bury us.” Socialists in our government – and among our people – would place the importance of the state above the importance of the individual. They would direct our lives from Washington! They would take our wealth and distribute it as they see fit!

 

“Colorado was built by resourceful individuals working against many handicaps — individuals who wrested minerals from the rocks of the mountains — individuals who turned arid plains by irrigation into fertile gardens. This is a tradition which we must all work to preserve. And I believe it is being preserved here in Colorado more effectively than in many other parts of America. This fact had a large influence in the choice by the Hewlett-Packard Company to locate two major facilities here. One in Loveland where we have already found that the tradition of Colorado for the American Way still runs strong. And one in Colorado Springs where we are counting on the devotion of the people to the American Way to continue to run strong in the years ahead.

 

“The future prosperity of Colorado, indeed of the entire Western World, will not be generated at the State House in Denver nor in the White House in Washington, but, rather, by resourceful individuals throughout our society — applying their talent and their ability to the myriad of problems which always stand in the way of progress This is the tradition we honor here tonight.

 

“I am profoundly grateful for this opportunity to be here with you tonight to join in this honor of American Freedom. I assure you, such success as has come my way is in no small measure a direct result of the influence of the Pueblo – and of THE COLORADO OF THREE DECADES AGO.”

 

4/19/63, Printed program for the Sertoma International “The American Way of Life award. Awarded for Exemplary Leadership and Achievement under America’s

Freedoms.

1/9/63, Letter to Packard from Ralph C. Taylor, News Director, Star-Journal Publishing Corporation. Mr. Taylor explains that he was a long-time friend of Packard’s father and he would like to interview Packard for story about his life. He would also like to discuss the possibility of Packard’s coming to Colorado to receive the American Way of Life Award.

1/14/63, Copy of letter to Ralph C. Taylor from Packard saying he would be honored to receive the award. Suggests some time to get together to discuss the story.

1/17/63, Letter to Packard from Ralph C. Taylor, News Director Star-Journal Publishing Corporation. Says the Sertoma officers are in full accord on presenting the award on a date acceptable to Packard. Suggest meeting Packard in Palo Alto around Feb. 17 for story discussion.

3/6/63, Letter from Ralph Taylor to Packard saying they enjoyed visiting with Packard at his home, and suggesting April 19 or 20 for award dinner.

Letter to Packard from F. E. Colescott Sertoma Club President saying the dinner is now scheduled for April 20 and asking for confirmation. Handwritten notes on the letter say Colescott called to ask if April 19 would be OK and he was told it would be OK.

3/20/63, Copy of letter to Ralph Taylor from Packard saying he would send along the list of possible attendees in a day or so.

3/25/63, Copy of letter to Ralph Taylor from Margaret Paull (Packard’s secretary) sending the list of  invitees Packard is suggesting.

4/8/63, Letter from F. E. Colescott, Sertoma Club, to Packard talking about arrangements for the award dinner.

4/2/63, Letter to WRH from Gene Colescott, Sertoma Club President inviting WRH to the award dinner for Packard.

4/9/63, Copy of letter from WRH to Gene Colescott saying he would be out of town and cannot attend. 4/11/63, Letter to Packard from Gene Colescott enclosing a draft of the program schedule and advising that dress would be formal.

4/11/63, Inter-Office memo to Packard from Dave Kirby suggesting possible topics for his award dinner speech.

4/11/63, Letter to Packard from Charles L. Thomson , General Manager Pueblo Chamber of Commerce, suggesting the possibility of meeting with Packard during his visit to discuss how Pueblo might become more attractive to industry.

4/11/63, Page from Pueblo Star-Journal discussing Ralph Taylor’s retirement from the newspaper.

4/11/63, Page from the Pueblo Chieftain describing to Sertoma award to be given to Packard by Major James W. Wood.

4/11/63, Letter to Packard from Louis T. Benezet, The Colorado College, saying he will have to miss the luncheon on Saturday April 20th and asking if they could have breakfast on the 21st for a brief tour of the science building.

4/15/63, Copy of letter from Packard to Louis T. Benezet saying he would be glad to join him for  a visit to the campus of Sunday April 20th.

4/16/63, Copy of letter from Packard to Louis T. Benezet saying he now finds he must return to Palo Alto the evening of April 20 and so cannot make the tour on Sunday AM. Hopes to do it later.

4/20/63, Clipping from The Pueblo Chieftain describing the award dinner with picture of Maj. Wood making the presentation to Packard.

4/22/63, Letter from Gov. John A. Love to Packard congratulating him on receiving the Sertoma award and expressing the hope Packard will call him for any service he can give in the future.

4/25/63, Handwritten letter to Packard from high school teacher Mary Melcher congratulating him on the award and enclosing a clipping from a newspaper.

4/29/63, Copy of letter from Packard to Mary Melcher saying he was pleased to get her note and telling her he had mentioned her name at the award dinner.

5/2/63, Copy of letter to F. E. Colescott from Packard thanking all for the honor of the Sertoma award.

5/2/63, Copy of a letter to Ralph Taylor from Packard thanking him for the hospitality he had given Packard and wife Lu, during their visit for the award.

5/2/63, Copy of letter from Packard to “Red: LeMasters, LeMasters Janitorial Supplies, saying it was good to see him during his visit to Pueblo and thanking him for getting all the boys together while he was there. He confirms his invitation for Red to visit California and promises “ buck or two within range.”

 

 

 

Box 2, Folder 52 – General Speeches

 

April 21, 1963, Speech at Colorado Springs

Packard appears to be speaking to primarily a group of Colorado Springs citizens, telling them about HP’s plans to build a new permanent building and become a corporate citizen of their community.      It is an informal, chatty approach, rather than a prepared text.

 

4/21/63, Copy of a typewritten transcription of Packard’s remarks

 

Packard starts by telling his audience why they decided to build facilities in Colorado in the first place. He makes it clear that their decision had nothing to do with the fact that he was born and raised in Pueblo – and is, as he says “very fond of Colorado….I want to assure you,” he says, “that the selection of Colorado Springs was not made for any sentimental reason but only after a very careful analysis by some pretty smart people in our organization as to where a good location might be for the future development of an important activity of our company….We do indeed try and make an objective analysis of many factors that are important to the success of the business, but …it is not only the impersonal things, in many ways it is the attitude and the personal environment that may be decisive as to whether the choice of location is right or not.

 

Packard stresses that the decision to establish a new plant location is a very important one – to the company, to the community, and to the people who will be asked to pull up stakes and move. “…if for any reason our choice of location has been wrong, this is a disastrous thing both of the company and for the community, and I want you to realize that we recognize this fact and that we have put a good deal of consideration into this matter.”

 

To test the waters Packard tells how they started out in a modest way, renting a small facility so :…”if it did not work out as well as we anticipated it would, we could move back from this decision and do so without any serious damage either to the future of our company nor to the community of which we made a choice.

 

“But I am delighted to be here today to tell you the experience we have had since the decision was made a year and a half ago to come to [here] that the choice has been fully verified by the expansion we have had in the little over a year that our people have been in your community.”

 

“So we are here today to tell you folks that after having given this matter of whether we should or should not be located in Colorado Springs very careful consideration, we have decided that this is indeed a very desirable place for us to commit a substantial portion of our future success of our company and we are here to announce that we are going to go ahead with our plans to carry on and make Colorado Springs a permanent location for one of the important activities of the Hewlett-Packard Company.”

 

Packard talks about the site chosen for the plant. “…I think everyone in the organization who has seen the site feel that this…is a wonderful location and …we hope to develop what you will come to think upon as the finest plant in your community.”

 

“The building,” Packard says, “is going to be designed in a two-level construction to hopefully fit into the contours of the area—it will be designed in the context of the surroundings and it is going to be devoted to both manufacturing engineering and development….

 

“The building has been designed in accordance with a long range plan because we have found from experience that it is desirable to think ahead again on these matters, although I want to assure you that our ability to think ahead with any position is not as good as it should be. But, at least we like to do some planning in terms of what might happen in relation to the ultimate development of the site and we have done that, and this particular building will fit into a master plan which would allow expansion to some 400,000 square feet – whether this will come about or not only time will tell, but we are of the mind that it is important when you make a major move like this to be sure that it is made in context with what you might hopefully have to do later.

 

“This first year will cost approximately $2,000,000 and so it is going to be an important investment for our company and we can not commit this amount of money to a facility unless we have a great deal of confidence that it is going to be productive and it is going to be permanent.”

 

“Now I think this gets into one of the very important aspects of our business….in our business we’re not dependent on the things which were traditionally important in industry—raw materials, transportation, labor costs, and all of these things. These factors have to be reasonably favorable, but they are by no means decisive. The decisive element in our business is people and unless we are able to locate a facility where we can attract the kind of people who are going to be able to keep   ahead of everything that is going on in the country, we have no hope of keeping up in this business and making this particular venture successful. And that one of the decisive reasons that we considered Colorado Springs as a location for an important activity of our company had to do with the question of people.

 

“[The people] in this plant are going to have decide what the trends of this business require and they are going to have to find ways to invent and develop and put into manufacture devices that are going to be better than somebody else’s. To the extent that [they] are able to do that this plant is going to be a great success. To the extent to which they fail, the plant is going to be a failure. It is just as simple as that. So we have to consider the question of whether a particular location is one to which we can attract some of our most capable people, whether they are going to be satisfied with the community environment, whether the educational opportunities are to be such that they will be able to keep up with the rapidly advancing trends in the technical phases of this business.”

 

Packard describes the severe competition among companies for new graduates – “graduates who ask ‘Where am I gong to be? Am I going to have a place to carry on my intellectual development, educational activities for myself, and am I going to have the opportunity to bring up my youngsters in the kind of environment I would like to see for them? And so, in this aspect Colorado Springs is a very important choice and this had a good influence in our decision here.

 

“Now this gets into the question of education and education is important. We looked at Colorado pretty carefully in this aspect and I think I want to be frank with you. I would say that the educational system in Colorado is good but it has a long way to go to be as good as it should be, so we think there is some concern about the matter here. We think it is our duty to build strength in the educational foundation which you have and we hope that this can be done because this is going to be decisive, not only for our particular business here in Colorado Springs, but it is going to be decisive in terms of the entire state to attract the kind of industries which I think are going to be important in the future and I think the kind of industries which will be attractive to your community and to your state.

 

“You have made a good deal of progress here at Colorado college. You have made a good deal of progress at Colorado University, but it might interest you to know that some of the bright young boys who are working in Palo Alto whom we would like to ask to come out to Colorado Springs would like to get some more education and they are asking ‘Can I go on and work toward my Masters degree when I come out here?’ The answer is ‘We hope so, but we are not sure.’ This is a question that I think we are going to get together with all of you people and see if we an develop opportunities to do some of these things and I assure you they are going to be important to you, perhaps even more important to you and the community than they are to us and to the industries that are moving in.”

 

“The attitude of the community,” Packard says, “is an important element in a decision of this nature. I think we want to try to move into a community where the government of the community people doesn’t expect industry to support everybody in their jobs plus the government and everything else to boot. On the other hand I assure you that when we come into a community of this characteristics we hope that we can carry our weight and do our part of the job and we will ask for no more than a fair shake in these matters.

 

“Now one thing about this I wanted to comment [on] and I wanted to comment from experience. I think there is a happy medium in how far you can go in attracting industry into a community and at the same time keep the community environment  where it should be and I think it is important not to go overboard in this matter because if all the emphasis is put on the importance to industry to attract a great many people, you generate a tremendous number of corollary problems, so I would hope here in Colorado Springs that you don’t come to the conclusion that having industry is the end and aim of the community in any sense of the word. We would hope that this matter can be kept in context and we think that this is important for those of you in the industry as well as those of you in the community who are anxious to continue to see Colorado Springs one of the attractive residential communities in the country. And so in this matter there are many aspects which need to be considered on both sides of the coin and I assure you that we intend and hope to be able to cooperate and help in this matter.

 

“So this decision as I think you an see has been made in terms of some fairly careful considerations of the factors that are important to us and I think it has been made in terms of the considerations that are important to your community to keep it one of the attractive communities of the country. We are delighted that we are able to go ahead with this program and I assure you that we are going to do everything we can to prove to you and to prove to ourselves that this was the right decision for the long run.

 

“Thanks very much.”

 

 

 

Box 2, Folder 53 – General Speeches

 

May 7, 1963, National Conference on Peaceful Uses of Space, The University/Industry Partnership in space Programs, Chicago

 

5/7/63, Printed pages from undetermined publication giving full quotations from panel member presentations at the above conference. Below is a summary of Packard’s presentation along with some exerpts from his participation in the panel discussion that followed after each member gave their individual presentations.

 

Packard opens his comments by reviewing “a little of the history of the university-industry relationship in the specific area around Stanford University. “. He says that the part of this relationship which he wishes to discuss “was not influenced in any way by the Space Age…but it should be remembered that the industry and the activity which have developed from this particular relationship with Stanford have, in fact, had a great influence on the space accomplishments to date.”

 

Packard says that “When Hewlett-Packard first established its firm in the Palo Alto area, there were about five electronics firms around the San Francisco peninsula.” And having “somewhere between 200 and 300 “ employees. Packard says that at time “we looked to Chicago as the center of the electronics industry…” Packard  gives “A few statistics on the situation today, some 20 to 23 years later…. At the present time in the bay area there are well over 100 electronics firms, including the large effort of Lockheed in their Polaris program, employing approximately 30,000 people.” Aside from Lockheed Packard says “there are approximately 70 firms employing approximately 12,000 people, and the annual volume of production of electronic devices almost three quarters of a billion dollars annually.”

 

Packard says that the population of the city of Palo Alto increased from 25,000 to 52,000 over the preceding 10 years; and that the assessed valuation of the community increased from $42 million to $170 million during the same period. “This is one of the direct and important results for the community. There has been a threefold increase in retail sales as compared with a 2 to 1 increase in population.”

 

“Thus”, Packard continues, “the electronics industry [in this area] has had a very important and beneficial effect on the community as well as made an important contribution to the whole area of technology. The interesting thing about this development is that a majority of these firms were started by young people coming out of the university. In many cases they were started with very little capital and well over half of all the firms in this area are new ventures that were started as private enterprises by young people with some knowledge, with some help from the university relationship, and with a desire to get into the private enterprise segment of our economy.”

 

Packard draws  “Several conclusions …from this university-industry relationship that has developed over the last 2 decades or so the Stanford area. In the first place, almost all the new businesses in this area are based upon new products which were generated in the laboratories at Stanford University.” He gives some examples from HP’s experience: a counter “developed by a young man doing his graduate work at Stanford University on a fellowship which we sponsored,…many devices in the microwave field …were first conceived in the Physics Department at Stanford…More recently some of the work in what we call backward-wave oscillator tubes and traveling-wave amplifier tubes was the foundation of some additional instrument which have added to the product line and the capability of our organization.”

 

Packard tells how the Varian brothers, having invented the Klystron tube in the physics lab at Stanford a little before 1940, founded Varian Associates shortly after World War II and  built “one of the most important industries in the country in the field of microwave tubes.”

 

Packard tells how, in fields other than electronics, physics, and electrical engineering, activities at Stanford have contributed to the development of industry.

“For instance, a program at Stanford Research Institute involves investigation of explosives. Dr. Poulter, in the laboratory that was established in his name, did some important research in the use of shape charges and various kinds of explosive devices, and a program was developed which is the basis of the United Technology Corporation program of solid fuel propellants.”

 

“Packard points out that “While these programs have contributed to “big” science, they have also made a very important contribution to the free enterprise segment of our economy; this is an especially important characteristic of the development around Stanford University.

 

“In addition to specific products, the university has contributed a very important resource of trained manpower–engineers, and scientists and business leaders–and trained manpower has, in many ways, been developed around some areas of specific technology not unrelated to these particular product areas already mentioned–microwave tubes and solid-state electronics, for example. The University has attracted a very strong group of faculty and from this has come the Fairchild semiconductor program; William Shockley was attracted back to the area from Bell Laboratories and he, too, has established a commercial venture in the electronics field.

 

“Underlying all this there has developed over the years an important relationship between the university and industry. A number of times during these 2 decades, university administrators have come to us in industry and pointed out that they had a faculty appointment open, but did not have the resources to attract the person they wanted; they have asked if we would be interested in providing either a consulting job or in some other way supporting this appointment financially. Our firm has provided this support in a number of cases and it has enabled Stanford to attract some important people.”

 

Packard gives another example of Stanford/industry cooperation, this time in the field of aeronautical engineering. Lockheed wanted a particular man who was interested in the university association – which worked out well. So well that the enrollment in Stanford’s aeronautical engineering program grew from two graduate students before the program was worked out to more than 100  graduate students 2 years later.

 

“This consulting service is effective, not just in terms of having a conference now and then to talk about a program, but in bringing a university professor into a close association on a continuing basis with a particular program that is of mutual interest; this has been done in the field of microwave tubes and in many areas by a number of firms….

 

“Particularly effective has been a university-industry program in which industry hires graduates from various colleges and universities around the country and, in an arrangement with Stanford, allows these baccalaureate-degree holders to obtain advances degrees by spending about half time working and half time going to school. This was worked out by Dr. Terman, who was then Dean of the School of Engineering.”

 

“In summary, it might be reemphasized that this astounding growth in the technologically based industries in the San Francisco Bay area has been due in large part to the contributions from Stanford University….There is no question that one of the important responsibilities of universities is to generate new knowledge; it seems, as well, that one of the responsibilities of universities and industry is to find ways in which this new knowledge can be converted into useful purposes as efficiently and as effectively as possible. The programs in the bay area, particularly those around Stanford University, have been especially effective in this way.”

 

This ended Packard’s prepared comments. After the other panelists finished their talks there followed a round table discussion among. One commented on the greatly increased level of government support since World War II, Packard replied that “The situation at Stanford has been very much the same way. The amount of government support for research has gone up at a tremendous rate. Stanford has never had a very large amount of industry-supported research, in any case. Stanford Research Institute was set up to handle this problem, and they are involved in the more specific jobs for industry. The university has followed a policy of not taking on any specific job for a specific firm; only with rare exceptions does Stanford do this. the university tries to limit its research program to areas that are of interest to a particular professor and can be continued over a period of time. The figures of Stanford Research Institute are very interesting because an attempt has been made to keep a large proportion of research for private concerns there. The trustees would like to have not more than half of the entire Research Institute program supported by government funds, but it keeps increasing every year until it is almost 80 percent this year.”

 

5/7/63,  Five pages of handwritten notes by Packard containing various facts and figures that he had gathered for the above presentation.

2/1/63, Typed fact sheet on Stanford Industrial Park giving the names of companies who lease land including number of acres, number of employees etc.

3/24/63, Program for “The Second Northern California Junior Science and Humanities Symposium” apparently reference material for Packard.

4/63,  Copy of printed article by Professor Frederick E. Terman on the subject of Federal grants.

3/19/63, Letter to Packard from Lyle H. Lanier Executive Vice President and Provost, University of Illinois, asking if Packard would be willing to participate in the May 7 conference and panel discussion on the topic of “The Role of Universities in Space Research”

3/22/63, Copy of letter from Margaret Paull (Packard’s secretary) to Lyle Lanier replying to his letter of 3/19/63 and saying that Packard is away until the second week of April.

4/18/63, Copy of a letter to Lyle Lanier from Packard saying that he would be “most pleased to participate in the panel discussion …on May 7th”

4/17/63, Letter to Packard from William L. Everitt, Dean, College of Engineering University of Illinois, saying they were delighted that Packard would participate in the panel, and giving more details of the program.

4/19/63, Letter to Packard from Hale Nelson, General Chairman, expressing appreciation for Packard’s willingness to serve on the panel, and giving details on the program.

4/23/63, Copy of letter to Hale Nelson from Packard saying he would meet at noon luncheon on May 7.

4/29/63, Letter to Packard from Hale Nelson giving more program arrangements.

5/2/63, Telegram to Packard from Sidney Jones of the conference staff asking that Packard discuss “Broad concepts of university – university relationships”  and not limit discussion to research parks.

 

5/6/63, ID badge sent to Packard for conference.

5/6/63, Printed copy of conference program.

5/14/63, Letter to Packard from Hale Nelson and Sidney Jones thanking him for participating in the conference.

5/16/63,  Letter to Packard from Bill Everitt thanking him for participating in the conference and also suggest HP consider the Champaign-Urbana area for a future facility.

Undated, Bound booklet titled Interstate Research Park.

 

 

Box 2, Folder 54 – General Speeches

 

June 6, 1963, Address before New York Society of Security Analysts, NYC

 

6/6/63, Typewritten copy of above speech.

 

Not having talked to this group for over four years Packard says he wants to bring them up to date on the many changes that have taken place at HP in the interim. But first, he gives some statistics on operations for the first six months of FY 63. A few of these were:

Total income $55,690,000, compared to $54,530,000 for year ago period.

Earnings were $3,522,000 compared to $3,446,000 year ago.

EPS 29.7 cents vs. 29.5 year ago.

 

Packard mentions that during the first half of 1963 they have been integrating the sales groups into the HP organization.

Long term debt $437,000 vs. $339,000 year ago.

Overall Packard says “I think we can feel reasonably satisfied about the balance sheet position of the company, and we have no financial problems of consequence.”

 

Turning to organizational changes over the past four years Packard describes the HP organization in 1959 as “…a highly centralized organization in which the management was on a functional basis with a vice president for Manufacturing, one for Marketing, one for R & D, and one for Finance, and there were very few activities outside Palo Alto.” He recalls that at their previous meeting he had said that  “our policy was to specialize in the field of electronic instrumentation, to develop products which would make a contribution to the field, and to develop products which were general-purpose in their nature, thereby having a broad market rather than being designed for specific, individual applications, I also stated our policy was to finance our growth from earnings.”

 

“Since that time we have moved from a highly centralized organization into one which is largely divisionalized — and geographically disbursed.” He describes some of the specific changes:

 

“We have in Palo Alto several divisions. The Frequency & Time Division has a very important area of product responsibility having to do with frequency standards, frequency counters and other devices used in the measurement of time and frequency, as the name indicates.

 

“The Microwave Division, which is one of our very strong areas of involvement, makes microwave signal generators and all sorts of measurement devices concerned with radar communication equipment, microwave links, etc.

 

“The Oscilloscope Division is still headquarted in Palo Alto, but it is scheduled to be moved to Colorado Springs with the next two years.

 

“The Dymec Division in Palo Alto handles the job of developing and selling instrument systems — that is, combinations of instruments which go together to do a complete job for the customer.

 

“Palo Alto Engineering Company was set up to manufacture magnetic devices such as transformers. It is being phased out, and its work will be integrated into other divisions.

 

“We have established a new and important activity called HP Associates. This group was set up to concentrate on the development of advanced solid sate electronics. Over the years we have done a good deal of solid state work in our own laboratories — the intent to provide better components and better technology with which to manufacture instrumentation. This new group is set up to broaden the area of solid state R & D and is already beginning to develop some outside sales. The only opportunity for us in this field of semiconductors is if we happen to be able to make some important contributions. There’s a very good chance that we might be able to do this, but HP Associates is still oriented primarily to give us some lead in technology for use in our own shop.

 

“Outside of Palo Alto we have a division in Loveland, Colorado, manufacturing what we call the audio-video class of instruments.

 

“We have acquired the F. L. Moseley Company in Pasadena, California; the Boonton Radio Corporation in New Jersey; the Harrison Laboratories in New Jersey; and the Sanborn Company in Waltham, Massachusetts. In addition to that, we have rather extensive activities overseas with a sales organization in Geneva, a manufacturing plant just out of Stuttgart, another manufacturing operation outside of London, and a joint venture planned for Japan. The acquisition of our sales organizations has brought in a number of additional discrete corporate entities and has encouraged us to set up some of our own. So from all of this you can see we have moved from a highly centralized company into one that is involved in the management of a widely dispersed group of activities.”

 

Packard says that these changes  “have brought about a good many management problems, but I am very much encouraged by the fact that we have been able to accomplish the transition without serious difficulty.”  And he adds that “We have been able to meet this new management challenge with people from within our own organization.”

 

Packard assures the group that “Despite the major change in the structure of our organization, our policies have not changed in any essential way. We are still in the business of general-purpose electronic instrumentation. We are trying to do those things where we think we can make an important contribution to the field, and are not taking on new projects just to get into a bigger area of activity. Our policy is to continue to finance our growth from earnings, and we have been able to do so. Government business is important to us, but we make no products that are designed specifically for military or other government applications.”

 

Packard explains that “One of the very important things about our company is that our growth has come almost entirely from new products….and the overall sales growth that we have been able to achieve is the result of the superimposition of new products on [the] steady level [of the more mature products].”

 

Packard then goes projects several charts: [Which are also included with the typed text]

Chart No. 1 – “Shows our consolidated shipments for the past five             years….we shall probably wind up in the range of $120 million for fiscal ‘63    total income”

 

Chart  No. 2 – Presents a breakdown of HP markets in different categories, military, non-military, government subcontracts, commercial.

 

Char No. 3 – Shows the relative proportion of  HP’s business subject to renegotiation adjustment.

 

Chart No. 4 – indicates international market activity.

 

Chart No. 5 – “Presents an analysis of our European business. It points out a very interesting situation. The lower bar represents the products of U. S. origin, the products that are manufactured in the United States and sold in Europe. We started manufacturing in Europe about the beginning of 1960, and the bar on the top represents sales in Europe from our European factories. As you can see, the portion represented by our European manufacturing operations is growing rapidly. But despite this growth, we have been able throughout this period to consistently increase the export of our products from the United States. I think this pattern is going to continue for some time.”

 

Chart No. 6 – Pacific area markets. “This market is not significant because of its size, or of its past importance, but because an analysis of the area indicates why we have decided to make a major move in Japan. You will see from this chart that our Japanese business was moving ahead in a rather satisfactory way up until 1961. At that time, restrictions on imports into Japan reduced our business there. As a result of studying this situation, we have decided to set up a joint venture with a firm in Japan. The agreements are completed To do this with the Yokogawa Electric Words, one of the most respected firms in the instrument field in Japan.”

 

Chart No. 7 – “is the most significant of all in evaluating the real nature of our company and the nature of its growth potential. This chart shows the additions, year by year, which our new products have made to our annual sales volume….This chart also indicates that if we had not maintained a steady output of new instruments, our present volume would be only slightly larger than it was in 1955. Furthermore, if our new product effort were to stop completely, the general trend in our business would be either level or slightly up and down from year to year, and certainly after any reasonable period, would go downward. This pattern is one that we study carefully, We try to analyze our new product effort to see that we continue to do the things which will continue to generate substantial new product growth. As a result of studying this pattern over the past few years, we decided a couple of years ago to increase our total R & D expenditure, and the last chart will show you how this has gone.”

 

Chart No. 8 – As a general overview Packard says that “In total we have spent something like $23 million of company generated funds [over the past four years] as compared to about a quarter of a million of government sponsored effort. Our business is one which is highly dependent upon our new product effort, and we are supporting this effort almost entirely with our own funds.”

 

Packard gives some specific examples from the current new product program. “We have just introduced what we call a Frequency Synthesizer. I mentioned this in our first quarter report. This device has now been finished, and we are beginning to get some orders. We don’t have it in full production yet, and I don’t think it is going to have any significant effect on this year’s volume, but it will have a significant effect on next year’s business. This is one of the largest and most expensive new product developments we have ever undertaken. We have spent over a million dollars of direct R & D on this project, but it is significant that we already have negotiations in progress for many millions of dollars worth of business.”

Packard mentions the medical instrumentation as an area “which is growing very rapidly and which has a great deal of potential.”

 

Packard talks of HP Associates and says that “One of the very important areas they are working on is related to the field of optics. As perhaps you know, there are methods of generating electromagnetic radiation in the range of light — infra red, visible by some of the new solid state techniques. We are already using some of these techniques in our instrumentation, and this work should open up important new fields of measurement.”

 

“Of Dymec [working in the area of measurement systems] Packard says “I am happy to say that as a result of what they have already done, their orders this year are at a new high and moving up rapidly.”

 

Regarding facilities Packard says “We are expanding the facilities for HP Associates for reasons that I think should be obvious. Harrison Laboratories, an acquisition last year in the field of power supplies, has completely outgrown its facilities, and we have a plant under construction for them in Berkeley Heights, New Jersey. We are going to let contracts within the next month or so for a $2 million facility in Colorado Springs to move our Oscilloscope Division, and set it up on a completely integrated basis there. Our manufacturing program in Germany has come along so well that we have authorized plans to triple our facility there within a year or so.”

 

“In Japan, the agreements between Yokogawa and ourselves are completed, and are awaiting approval by the Japanese government. We hope the approval may be obtained within a month or two, but we don’t have any experience with the Japanese, so it may not be as soon as we think. In any case, this joint venture organization will manufacture our products for the Japanese market. We will have the responsibility for international sales of their products. This program may have some supplementary benefits in providing low cost manufacture of certain items in case that should be necessary to meet world-wide competition.”

 

“In summary, our business has changed in its character as it has expanded. We are now operating a world-wide corporation compared to one that was centralized in Palo Alto some four or five years ago. Our policies have continued to be much along the same we have followed for years. We believe there is still a big job to be done in the field of electronic instrumentation. As we look to the future, we come to the conclusion that there is ample opportunity ahead, and there is really no limitation except our own ability to get this job done.”

 

 

8/28/62, Letter to Packard from John S. Wilson, Investment Analyst, asking if Packard would be willing to address a meeting of the New York Society of Security Analysts.

10/8/62,  Copy of letter to John S. Wilson from Packard saying he would be willing to address the security analysts and giving a couple of dates.

10/23/62, Letter to Packard from John S. Wilson confirming the June 6, 1963 date and enclosing a n outline of meeting procedures.

5/28/63, Copy of letter from Margaret Paull (Packard’s secretary) to John S. Wilson giving him information he requested.

5/29/63, Letter to Packard from John S. Wilson, giving details on meeting times.

5/29/63, Copy of letter from Margaret Paull to John S. Wilson, giving information on slide projector needed.

6/3/63, Inter-office memo from Austin Marx to Packard giving financial data.

Group of letters and cards asking for copies of Packard’s presentation

Two newspaper clippings commenting on Packard’s talk.

 

 

 

Box 2, Folder 55 – General Speeches

 

September 16, 1963,  Speech at Yokogawa Ceremony, Tokyo, Japan

 

This speech hs been moved to box 1, folder 22A

 

 

Box 2, Folder 56 – General Speeches

 

September 19, 1963, Making Maximum Utilization of Corporate Resources, International Management Congress, NYC

 

9/19/63, Typewritten copy of  the above address by Packard.

Packard sets the scene describing  “the impact of science and the advancement of knowledge” – nuclear energy, travel at thousands of miles per hour, computations in minutes that previously took years. Social changes too. “They stem from greatly expanded communication, the radio, television, the press – they are nurtured by a rapid increase in literacy and understanding. These social changes are the inevitable result of, and at the same time catalog, a rising level of education of all people,”

 

“We see on every side a ferment of dissatisfaction with things the way they are….We see it most strikingly in the underdeveloped countries, but we find it here too in the United States among our minority and underprivileged groups of people.

 

…“The frontiers are advancing very rapidly and many people are being educated right up to these frontiers. He, then, is a resource growing in magnitude and in value and it must not be overlooked….the rising aspirations of people in the underdeveloped countries are generating tremendous markets for the essentials – food, housing, clothing and transportation. And these expanding markets which are part and parcel of today’s social flux are by no means unimportant to those of us in management.”

 

Packard refers to the “great scientific developments of the past few decades” and says that “management  now has “unlimited energy for our factories…, automation to control our machines,…communications facilities to transmit any amount of information we require,… and sophisticated instruments and procedures to collect our data…and computers to process it for us. “But,” he says, “the all important question remains – how do we effectively utilize these resources we have at our command?”

 

Packard says that with all these resources at our command we might be tempted to try and automate the entire process. “But this fantasy is soon dismissed when one remembers that machines cannot yet think or innovate, and probably never will.” And he concludes, therefore, “that the ability to think, to innovate, is now vastly more important than it ever was, simply because these vast impersonal resources must be effectively utilized.”

 

“Now the traditional resources which the corporate manager had to utilize were money, raw materials, energy and human labor — the latter largely as a source of energy, Much of the theory of management was about how to utilize these traditional resources efficiently.”

 

Packard says that while methods were developed to help managers utilize such resources as money and raw materials, “the beginnings of scientific management came from how to utilize human labor more effectively. Many of the things we still talk about in management are how to get a bit more work out of our people. Time and motion studies were designed to show the worker how he could use his physical capability more effectively. Piece work recognized the proposition that if you gave the worker an incentive, he might be able to figure out how to do his job better than you as a manager could tell him or show him. this was an important recognition of the fact that an employee might contribute something more than physical labor if you gave him a chance.

 

“The trend of management thinking, particularly over the past decade or two, has been directed more and more toward the management of the human resources of an organization. The fact that we have a rapidly expanding impersonal scientific base for our affairs places more importance on people rather than less. And fortunately we have the kind of people we need in increasing number to do this job well.

 

“I would propose then that the efficient utilization of people, as our most important corporate resource, is the sum and substance of management today. The value of people is primarily in their ability to think, to innovate, to bring imagination rather than their physical energy to their jobs. There are many ways in which people can be encouraged to apply their intelligence to their jobs and this can and should be done in every area of a business” – and he discusses two of these: – “the utilization of the resource generally described as “know-how” in a day-to-day manufacturing operation, and the capability of an organization to develop new products considered as an important corporate resource. Both depend on the effective utilization of people rather than money or physical assets.”

 

Looking at all of the books and specialized technical papers that are written on many subjects, Packard says “one might think that all the “know-how” necessary for efficient corporate operation would be available for the asking. But our experience tells us there is a decisive difference between reading how to do something and being able to do it. Experience — the ability to make the idea actually work — is the priceless ingredient the expert person brings to the job. The more complicated the problem, the more necessary the expert person becomes.”

 

Packard says he sees many examples of innovation as he walks around HP, “But at the same time I have never seen an organization which would not benefit from more special know-how. There are always innumerable problems to be solved. There are always jobs which should be done better.

 

“What, then, is the method of developing and utilizing this important resource? Unique and valuable know-how comes from people who are able to innovate. Such people can be identified by trial and error — perhaps in other ways too, although I do not know of any. They operate best in an environment of freedom. They are professionals in the true sense , not managers or organization men. Management has not always recognized the importance of this ability to innovate, and when present, it is often stifled by restraints and controls. With the growing complexity, particularly of a technologically oriented business, people who have the ability and opportunity to innovate are a great resource which must be effectively utilized.

 

Saying that people who are the most effective innovators “are not usually good executives or administrators”, Packard suggests “One way they can be utilized is as specialists in a given functional area. Give this type of person a special problem area to work on and then let him have the freedom to do it his way….His motivation and satisfaction come largely from his being able to see his know-how put to practical use.”

 

Packard sees three steps by which this innovative resource can be utilized: “The first step is to recognize that people can contribute by innovation. They must be given some general guidance which should restrict them as little as possible.

 

…“The second step is to give the people who can do this kind of work some operating freedom. You have to tell them or give them guidance as to what you want done. Then you have to let them do it their way.

 

“The third step is to make sure the people who make contributions by innovation in your organization receive credit for what they do. They are much more likely to do a good job the next time if they receive some recognition for the last one.”

 

Packard says “We have in our company a number of such specialists. They provide a great deal of invaluable know-how in all areas of the company….We consider one of our most important management challenges that of expanding their influence and developing their opportunities to innovate.”

 

“A second and most important resource of our company has been our capability to develop and market new products. This capability also comes, of course, from individuals who are able to innovate. But there must also be guidance and direction if this effort is to be efficient. Innovation in the field of day-to-day know-how is well directed because there is a specific job to be done, or a problem to be solved, and the expert is readily directed to the problem There is almost no limit to the variety of new products which might be developed. With limited resources in money and people, the all important question is which project is most significant? What is the priority among all possible projects.?

 

Packard says “Studies have indicated that of all the new product projects initiated by industry, only a very small percentage is ultimately successful. Thus…there appears to be considerable room for improvement in the results which can be achieved with the present level of effort.”

 

Saying he believes that the growth and profitable of HP is a result of their new product program, he presents a picture of  HP’s program for developing new products. “Our sales in 1962 were $109,000,000, over half of which came from new products developed since 1957. On a corporate -wide basis for every dollar spent on new product development, five dollars in profits before taxes have been generated, and in addition, the dollar spent on research and development has been recovered.”

 

Packard says, “Without question the most important step in a new product program is the initial selection of the project to be undertaken. …it is necessary that the resources available be applied to the products most likely to be successful”, and “…toward this end certain guiding policies have been adopted, and a specific procedure has been followed.”

 

Packard describes HP’s new product guidelines as requiring the project selected “must be in the field of electronic instrumentation, and must, if possible, bring some new contribution to the field — not be just a copy of something someone else has already done. But in addition to these general objectives, we need to provide specific guidance for the project.

 

“First, the marketing and the technical people, working together, prepare a tentative specification  for the proposed product. Usually the proposed product is discussed with potential customers for their reaction. the marketing people then prepare a five-year forecast of sales volume. From this an estimate of five years’ profit is made. The research and development people prepare a time schedule for the development and estimate the cost — including production engineering and tooling. The ration between estimated five-year profit and estimated development cost then becomes a figure of merit for that project. With a figure of merit thus calculated for each proposed project, we have a fair method of comparing projects and selecting the most attractive for development. The detailed specifications of the proposed project and the figure of merit calculations provide a very specific objective for the project. These provide guidance toward what the product will be, what it will cost, what will be the volume, and what will be the resulting profit. These specific objectives are kept before the development team throughout the course of development.”

 

Packard emphasizes that “…every new product project is a total company responsibility. Marketing people, manufacturing people, financial people, as well as the development engineers, are continually involved from the beginning and work together. This procedure provides not only a useful method of evaluation and decision making at the beginning but also continual communication between interested people during the entire development process. It  provides strong motivation for the innovation.

 

“The people who are responsible for innovation — the development people — are in continual contact with the manufacturing and marketing people. The project engineer thus receives company-wide recognition of his  product is successful. He is encouraged to help introduce his new product in the field as well. He thereby receives much more satisfaction and motivation from accomplishment than if he were involved only in the laboratory technical development.

 

“These two illustrations of contributions by people working as individuals, or as part of a team, are only examples of the many ways in which human resources can be effectively utilized. The requirements for effective encouragement of individual resourcefulness are actually very simple, The first is to provide for a common objective. This objective may be a level of profit performance, it may be a target for cost reduction, or it may be a new product with a carefully defined and extensive set of objectives.”

 

“In simple form then, one very useful approach to the better utilization of human resources in management is: Provide a well-defined objective, give the person as much freedom as possible in working toward that objective, and finally, provide motivation by seeing that the contribution of the individual is recognized throughout the organization. This is an attitude that can be applied in many ways, but when applied will help assure the maximum utilization of the most important corporate resource of all — the individual capability of all of our people.”

 

9/19/63, Printed copy of above address

9/18/63, HP News release on above address.

10/21/63, Letter to Packard from Harold A. Wolff, McKinsey & Company, Inc., asking for a copy of this address.

Undated, Brochure describing the Council for International Progress in Management.

7/1/64, Letter from Philip Garey , Vice President of the CIPM, asking for a French translation of Packard’s address.

7/31/64, Copy of a letter from Margaret Paul , (Packard’s secretary) to Philip Garey send the French translation.

8/3/64,  Letter to Packard from Philip Garey, thanking him for the French translation.

 

 

Box 2, Folder 57 – General Speeches

 

November 4, 1963, A Businessman’s View of the New Technological Revolution, Proceedings of the University/Industry Liaison Conference

 

11/4/63, Typewritten copy of Packard’s address to the conference.

Packard says “We are here today to discuss ways in which we can help the economy of Colorado grow and help improve its social climate. This so-called new technological revolution is going to have an important influence in this matter. But I would like to take a few minutes to look at the broader aspects of economic growth, because I think it’s a mistake to expect new technology to be the only factor which will contribute to the things we are trying to achieve.”

 

He names some of the other factors which “are going to have a bearing on how well we will be able to take advantage of such technological advancement as is made…growth of population…changing pattern of spending…sources of capital…the nature of our economic system.”

 

Looking at each of these, starting with population growth, he recalls that when he was in college it was thought that the population of the United States would level off. “Things have turned out differently as they often do….this population growth will affect our economic growth in several specific ways….there will be more economic units, more people to buy things. There will be new families and there will be expanded markets for old and new products as a result.”

 

“The changing spending patterns of our people are going to continue to be an important factor in economic growth. …the majority of our people are now able to earn above a subsistence level….A larger number of people now have money to spend in discretionary ways….There will be money to spend on education,…They will have time to travel, and they will have money to travel.

 

So it is in the total environment of these various factors that we should consider our economic growth and the effect of this so-called new technological revolution.”

 

Packard points out that the technological revolution is actually not new. “It is really just a continuation of the old industrial revolution that began in the eighteenth century in England with the application of steam power to the work of men. It has the same characteristics which it has had since the beginning, but for some reason we don’t always seem to appreciate that these characteristics are present,. One of the important characteristics is that new technology destroys established jobs, established industries and established interests while it is creating new ones. In doing so, it creates economic stress and social stress often of considerable magnitude.”

 

“I am confident [the technological revolution] is going to create growth in such a way as to continue to generate social and economic problems. These problems must be solved, in my view, by private business, private institutions as well as by government action.”

 

Packard gives the example of the technological revolution’s effect on agriculture saying that “Prior to World Wear II a relatively large proportion of our total research and development effort was directed in fields related to agriculture, and a substantial amount of effort is continuing. From chemistry we have been able to develop new and better fertilizers, insecticides and chemicals for weed control. From our knowledge of biology we are able to develop new breeds of animals, new strains of plants, obtain better productivity from these. Engineering provided new labor saving devices which were applied throughout agriculture. And other technology added for us new methods of food preservation, transportation and processing.”

 

“But, as we all know, this technology has generated by virtue of its very success some serious social problems. Today we have less than half as many farmers and farm workers as we had in 1920. These farm workers have gone to the city to seek jobs in industry. This migration is continuing and it is going to continue for some time in the future.”

 

“This provides an example of the kinds of problems that are generated by new technology. When we look at technology as a simple means to advance our economy, we would do well to give serious attention to some of the problems which are likely to result”

 

“There are examples in industry as well, as you all know. In railroads the diesel engine replaced the steam engine in something like ten years. This and other developments reduced the number of jobs in the railroad industry from 1,300,000 in 1948 to less than 830,000 in 1958….Aluminum has reduced the demand for steel and plastics has reduced the demand for both….It is a changing pattern. It is important for business people to become aware of the fact that it is a continually changing pattern which results from technological progress and that there are social and economic by-products which must be dealt with.

 

Packard asks what, then, is new about the new technological revolution. “In the first place, it is getting bigger all the time. It is the nature of growth that each new increment tends to increase in proportion to the level of activity already in existence. Growth tends to be at a constant percentage rate….We are in fact spending a great deal more money on technology, on  research and development than we were a few years ago….We were spending something like four billion dollars in 1953 and the spending rate has gone up to 15 billion dollars per year in a space of ten years. This is an annual increase of about 15% per year.

 

“This can be compared with the growth of our gross national product which has come to be the most convenient, if not necessarily the best measure, of the health and growth of our economy. The growth of our gross national product has been at the rate of between three and four per cent per year. There is some evidence that an increased research and development effort will generate increased growth for a company or an industry. It may do so for an entire economy. We are not sure but many people believe that because we are in fact spending proportionally much more on research and development we will accelerate the growth of our economy as a direct result.

 

There are, however, some reasons why this is not likely to be so. In the first place, there are other factors which affect economic growth. economists have placed more emphasis on other influencing factors. For example, there are many economists who hold to the theory that if you can simply increase the purchasing power of the people, you thereby are able to increase the growth of your economy. This has been attempted, not always with the predicted results. Then there is another school of economists which holds to the theory that id you simply invest more dollars in your productive establishment, this will necessarily generate more growth for the future….There is some correlation but whether cause or result has not been established,. Then there are those who hold that the increase in the research and development effort is a prime factor. I think the truth probably is in between, but it is very easy to over-simplify this matter.

 

Now I want to say a word or two about why I think this present high level of research and development is not very well directed to bolster the growth of our economy and why the results may not be quite as good as we might hope. In the first place, we have today too much money being spent on sophisticated military problems and space applications. These things are very important in themselves and very glamorous. The story is given us that the “fall-out” from this work is going to generate a lot of future economic growth, but I think if this is examined in detail, the question is doubtful at least.”

 

“But despite these problems research and development is going to be a very major factor in our growth in these coming years….Certainly Nuclear energy is going to be a major source of generation of electrical power within a decade or two. …There is one very significant field that is bound to become more important in the future because of past and present technological effort. This is the field of computers and data processing. Computers have become a billion dollar industry in this country in only about a decade, and we seem to be only at the beginning of their potential. And related to this is communications, how do we get this information from where it is generated to where it can be utilized or processed in some way.

 

“We have seen the extension of direct dialing in our telephone system in the last few years and now it seems almost commonplace to pick up the hone and dial a couple of numbers and have someone answer from across the country as though he were next door.”

 

“Biochemistry is an area of very important research and development which holds as much promise as any field for important advances in the future….technology will be a tremendous stimulus to growth in the future as it has been in the past….The population growth, improving income levels, the availability of capital and the motivation and drives which come from the free enterprise system are also going to be equally important. In considering economic growth we should pay attention to all of these factors.

 

Packard continues looking at past trends and says that “I think that we come to the conclusion that our society…has changed from an economy which is dependent upon raw materials, power, and transportation and money to an economy that is much more dependent upon human intelligence and human wisdom. And it is going to require the highest level of human intelligence to develop and understand and apply this new technology. And it is going to take the highest level of wisdom to be sure that we apply it for the benefit of our society as a whole.

 

Packard poses the question “What then do all these trends mean to the State of Colorado?”  He goes on to describe some conclusions that can be drawn: “Some of your old and established industries will continue to have difficult going in the future. Minerals will continue to be under pressure, and even steel is going to be replaced in more places in the future by aluminum and plastics. There will be further adjustment in agriculture. But I think in balance the present problems of agriculture will eventually be solved, and agriculture will be a very strong segment of our economy, not only in the nation as a whole but I think here in Colorado too.

 

“The tourist trade should improve as technology improves transportation, and as people everywhere have more money to spend and more time to spend it….supersonic transport of Mach II speed for our airlines might by of more relative value to Colorado than to Illinois, New York or Massachusetts.

 

“But most important of all”, he says, “your state is now in a position to attract many important industries which it could not attract before. What will this require? In the first place, it will require some of the elements that industry has always required. It requires good transportation to other centers of industry and to other markets. Air transportation for people and other light-weight products is most important. Bit it is also important that your trucking and railroad industry be nurtured and encouraged because these will be important factors in your future economic development. It requires desirable living environment so that you can attract to your state the capable scientific people and their families. The people who can contribute to this growth.

 

“It requires, also, attention to the development of a climate which is favorable to the free enterprise system, because it is the initiative and drive from this system which can perhaps provide as much for your growth as any other single factor.

 

“Most important of all the opportunities for you to participate in these things in the future require that you develop the best educational system that you can possibly afford. Your future will be improved as you are able to encourage your universities to develop in substantial ways to the advancement of new knowledge. Help them generate the environment which will provide the cooperation between business and industry so that business and industry can take advantage of the things that your university people do. In turn your universities will be supported substantially by business and industry.

 

…”It’s important that your educational system be excellent because you must attract capable scholars from other parts of the country. It is just not possible for you to educate your own professors and faculty at a rate which is adequate for the job. You’re in competition with the most important and the greatest universities in the country, and the success in strengthening your universities will, in part, depend on how well you can meet this competition. It is important for you also to raise the level of all your educational institutions, your schools and colleges. Not only because this new technology and the environment in which it will operate will require more education and more training on all levels of employment, but also because it’s going to involve a [more] rapid change in the future than it has in the past. Life-long learning is going to be very important.

 

“This is a Herculean task. It will take money. But it will also take understanding and cooperation of business and industry and the community at large. You have here in your state several good universities. They should become great universities. To do this they will need more money. But they also must be kept independent and protected from the cross-fire of politics, of selfish local interests, including selfish local interests of business. Your universities are the pillars of excellence on which the quality of your entire educational system depends and they will by a very large degree determine how well Colorado fares in this competition with the rest of the country for the benefits of this new technological revolution.

 

“I think it can be safely said that your universities are worth more to your state than all of the gold you have ever mined. Treat them accordingly.

 

…”Ladies and gentlemen I think this conference is ample evidence that many of you here in the state are aware of this opportunity which is offered. I am pleased that it is recognized as a joint responsibility. A joint responsibility of people in business, of people in universities, and of people in the government. And I am very pleased too, that our company has been in a position to participate in this opportunity here in Colorado. We are very delighted from the specific progress of our program here, and I have every confidence that our trust in the future of Colorado is going to be well justified.

 

“And finally, I am greatly honored to have the privilege of talking with you here today. Thank you.”

 

5/1/63, Letter to Packard from William H. Miernyk, Conference Director, inviting him to speak at the conference.

6/26/63, Copy of letter to William H. Miernyk from Packard accepting his invitation to speak at the above conference.

7/1/63, Letter to Packard from William H. Miernyk, expressing  pleasure that Packard will be able to attend the conference and discussing a title for Packard’s speech.

7/9/63, Copy of letter from Packard to William H. Miernyk agreeing to title for speech.

7/10/63, Letter to Packard from Janet R. Ryan asking for a biographical sketch for the conference program.

11/6/63, Letter to Packard from Dan McMahon, Chairman of the Governor’s Advisory Committee to the State Division of Commerce and Development expressing gratification that both Packard and Dr. Terman will be billing to provide guidance to their committee.

11/27/63, Letter to Packard from William H. Miernyk enclosing manuscript to Packard’s address for editing..

1/9/64, Copy of letter from Packard to William H. Miernyk returning the edited manuscript.

1/14/64, Letter to Packard from William H. Miernyk, acknowledging receipt of the manuscript.

 

11/4&5/63, Bound paperback book titled Colorado and the New Technological Revolution, Proceedings of The University-Industry Liaison Conference, 1963. This booklet contains a copy of Packard’s speech which is briefed above.

 

11/4/63, Two typewritten pages of speech introducing Packard for the above speech. Introduction speaker is unnamed.

 

11/4/63, Typewritten list of conference participants.

 

 

 

Box 2, Folder 58 – General Speeches

 

November 8,1963 – Taxation Panel, California Industrial Development Conference, San Francisco

 

11/8/63, Handwritten outline notes by Packard for his address at this conference, titled Taxation and the Future of California.

 

1. We are here because we are interested in discussing California’s economy and what might be done to improve it in the future.

 

2. State taxes are not ordinarily a dominant factor in considering industrial location.

 

A. Markets, labor costs, transportation, raw materials – and for technologically based industries – excellence of universities and education in general may be dominant factors. This latter factor has been dominant factor in the Bay Area.

 

B. Taxes can be significant factor in some cases.

1. Where an industry must be competitive and other factors are equal.(Not             often much chance.)

2. Taxes and State Fiscal policy are indicators of political climate and political climate is always a dominant factor influencing industrial location.

C. Any consideration of taxes in respect to industrial location must be more concerned with trends than with current levels.

1. A decision to locate in a particular area influences the business for a long time in the future.

Let’s look at trends – last 10 years.

Population – up 46%

Personal Income – up 96%

Combined State and Local Taxes up – 160%

Property Taxes – up 189%

Spending – up 10%

                                                                                      General Fund Revenue – up 7.6%

 

If we look at trends we need a fix on where we are – it wouldn’t be so bad if we were catching up.

 

School costs per pupil among highest in nation.

Cost of Living among the highest.

Skilled labor among highest

We don’t need to catch up with anyone.

 

Must look at trends in State.

Economy – To see if we can afford this.

 

1. Large part of growth in California economy over past 10 years based on Federal Government support. Largely because of the growth in early 1950s   – 4% per year growth in employment.

“Changing emphasis military and space – slower operating rate, fewer new jobs – more unemployment. Defense and space based industry has grown rapidly in past decade – is now slowing down. It is not in the slightest influenced by State tax – or local political environment. Its costs are passed on the Federal government. This situation is bound to change:

“We have the problem here in California – How do we change the environment from on attractive to pie in the sky philosophy to one attractive to those industries who must compete in rough and tumble competition with the world.

 

“Tend to appoint non employer representatives on Unemployment Compensation – State Disability  and Workmen’s Compensation Boards. These programs are supported by do-gooders in state government [and] are scaring away industry.

 

“We are generating unemployment in the State of California by our tax policy and by the political philosophy behind it. The trends indicate we are on a collision course which will be very serious. It is manifestly absorb that a state with the potential of California could have such a poorly administered tax and fiscal policy as we have had in the past years.”

11/8/63, Three pages of Packard handwritten notes with reference data for speech.

11/8/63, Copy of typewritten conference program.

8/2/63, Letter to Packard from Stanley E. McCaffrey, President, The San Francisco Bay Area Council, Inc. inviting Packard to participate in this conference.

8/23/63, Letter from Stanley E. McCaffrey to Packard asking that he attend a meeting on 8/27 to discuss outline of conference. Handwritten note on letter says “Didn’t attend”

9/26/63, Letter to Packard from Neil Jacoby, Dean Graduate School of Business Administration, University of California, Los Angeles, and Chairman of the Taxation Panel for the conference giving Packard some logistical data for the conference discussion.

9/30/63, Copy of letter from Packard to Dean Neil H. Jacoby in reply to his letter of  9/26 saying the plan looked OK.

10/1/63, Letter to Packard from Clark Galloway, California State Chamber of Commerce sending Packard several reports and tabulations on taxes all in response to Packard’s request relayed by his secretary.

10/7/63, Letter to Packard from Stanley E. McCaffrey, President, The San Francisco Bay Area Council sending announcements of conference for Packard to distribute to Hprs.

10/13/63, Letter from Carl F. Stover of SRI sending an outline of a talk by a fellow speaker at the forthcoming conference, Dr. Weldon B. Gibson, asking for any comments Packard may have on the draft.

In addition, this folder contains many booklets and tabulations on taxes gathered by Packard as reference material for his address.

 

 

Box 2, Folder 59 – General Speeches

 

November 12, 1963, Luncheon Talk, Peninsula Manufacturing Association, San Mateo

11/12/63, Handwritten notes by Packard for this speech [No typed text]

 

General subjects of interest:

National scene

State

Local

 

National – General business situation

Business good – Will be good through 1964 election

Tax cut bill

 

a. Determine whether business encouraged through private enterprise or through  more deficit spending.

 

b. Tax bill very important.

 

1. Could give boost to business which could carry us to a new plateau –                              1965 and beyond.

 

2. Features of bill.

[None written]

 

3. Present Status

Write to your Senators and Representatives to urge passage.

State Scene

Population growth – 3.9%/year

Employment growth – 2.5%/year, last three years.

Unemployment at 6%

 

Defense – Space employment high

Likely to drop off

1. National reduction

2. Other states

 

Economic environment for business not good in California.

Taxes higher – labor costs higher.

Trends – 10 years

Population up 46%

Personal income up 96%

Combined state and local taxes up 160%

Property taxes up 189%

 

State spending +10% per year

General fund income 7.6% per year

 

Highest indebtedness generated by taxes

2.3 Billion

1.5 Billion for New York

 

Taxes spent

Education –  40%

Highways – 12%

Welfare – 8.5%

 

This year tax problem – 100 million gap in General Fund. Governor             proposed to close gap with advance of State Tax Payments. Nothing to reduce spending to keep within means. Clearly action is needed – support.

 

California economic climate is less attractive to business than most other                            states. No business would [invest?] money in California except for:

1. Markets

2. Raw materials

3. Transportation

4. Advantage of university associations

 

Unless something constructive is done about state government spending

1. Unemployment will increase

 

Civil Rights Problem

1. It has been a problem for a long time and getting worse so eventually                                                      something had to happen

2. There is no quick solution – it will take years – better education is best                                                    hope.

 

3. It is important enough that everyone should take it seriously and                                                                        everyone who can should do something.

 

4. What can business and industry do?

 

A. Avoid discrimination in jobs stretch the point where measurable.

 

B. Give attention to training and upgrading.

 

C. Encourage some of your people to participate in community programs.

 

D. The most serious problem is education – integration per se will not necessarily result in better education for young people. They must be encouraged to appreciate education as the way for them to get ahead.

 

A good project for Peninsula Manufacturers Association would be to sponsor programs to help young people take advantage of education opportunities and to appreciate what it can mean to them.

 

A. Part time jobs with guidance

 

B. Scholarships and awards for achievement.

 

C. Plant tours and programs for student groups.

 

D. Sponsorship of young people activities.

We have a problem in Civil Rights here on the Peninsula – it can                                          easily be solved if all groups put their shoulder to the wheel. Solutions by local groups with right leadership is much preferable to:

 

1. Radical action groups

2. State intervention

3. Federal laws

Community Environment

1. Peninsula is a residential community

 

11/12/63, Three handwritten pages by Packard with supporting data for the above talk.

2/14/63, Letter to Packard from Jon B. Riffel, president of the Peninsula Manufacturers Association, inviting Packard to speak to their group.

3/19/63, Copy of a letter from Packard to John B. Riffel saying he would be pleased to address the group later in the year.

3/20/63, Letter to Packard from Jon Riffel expressing the hope Packard will be able to address their          group in the year.

7/11/63, Letter to Packard from Jon Riffel confirming the Packard will address the group November 12th. Attached are publications about the PMA.

8/8/63, Letter to Packard from Dick Kluzek of PMA giving details of the luncheon meeting Nov. 12.

8/9/63, Letter to Packard from Roy Brandenburger, VP, Monsanto Chemical Company, enclosing an article from Chemical Week on taxation. [article not in folder]

9/17/63. Letter to Packard from Jon Riffel enclosing a copy of the PMA publication, Manu-         Facts.

11/8/63, Letter to Packard from Jon Riffel giving details on luncheon meeting.

11/13/63, Letter to Packard from Harry Goodfriend, VP and Manager, Crocker-Anglo       National Bank, enclosing an ad from the Wall Street Journal describing the impact of high taxes on small business in California.

11/15/63, Letter to Packard from Joe Fessio, President Palo Alto Transfer and Storage       Company, saying he enjoyed seeing Packard again at the PMA luncheon.

12/9/63, Letter to Packard from Jon Riffel thanking him for speaking to the PMA group.

1/22/64, Letter to Packard from Karl Bizjak requesting a copy of Packard’s talk to the PMA. Handwritten note by Packard’s secretary says she called Mr. Bizjak to say there was no text.

The folder also contains some more PMA publications.

 

 

 

Box 2, Folder 60 – General Speeches

 

November 22,1963, Remarks on the occasion of the assassination of President John F. Kennedy

 

This speech has been moved to Box 1, folder 22B

Box 1, Folder 21 – HP Management

 

January 11, 1963, Management Conference, Monterey

No longer referred to conference by number. This is the only document in the folder. There were several comments from attendees along the line that there should be a published agenda ahead of time, and there should be more small discussion groups at conference. [It is interesting that there is no mention of Packard.]

 

 

Box 1, Folder 22 – HP Management
 
January 21-26, 1963, Sales Seminar, Field sales people, Palo Alto

 

1/24/63 Handwritten notes in Dave Packard’s handwriting, apparently for comments he    intended to make at the seminar. Some of the items he noted were:

1962 operations, shipments, orders

Balance between orders and shipments

Finished goods and work in progress

Better deliveries, more instruments in stock

Improved order processing

Need to improve R&D

General notes about GNP, space flight, taxes

1/21/63 Agenda for seminar

 

 

Box 1, Folder 22A – General Speeches

 

September 16, 1963,  Speech at Yokogawa Ceremony, Tokyo, Japan

 

9/16/63, Copy of typewritten text of Packard’s remarks announcing “the official beginning of our joint venture, Yokogawa-Hewlett-Packard Ltd.”

 

After giving the names of the directors of the new company, Packard says “I speak for all of the directors and officers of the Hewlett-Packard Company when I tell you we believe it is a great honor and a great privilege to be associated with Mr. Yokogawa, Mr. Yamasaki, and all of their fine and capable people in the Yokogawa Electric Works.” He says they “have known…of the magnificent contribution the Yokogawa Electric Works has made…to the scientific and industrial progress of Japan.

 

And Packard expresses the hope that “this new partnership between Yokogawa and Hewlett-Packard will be able to carry forward and expand this fine reputation which you have established.

 

“It is our aim that this new company will combine the most advanced technology of the United States with the most advanced technology of Japan, and thereby be able to develop and manufacture the finest instruments that are made anywhere in the world.”

 

“We in the United States are proud of the strong ties of friendship which have developed with the people of Japan over the past decade. It is my special hope that this new partnership which we are celebrating today will serve to strengthen those ties of friendship between our countries. Japan and the United States are joined in the common objective to support the freedom of  mankind against the tyranny of communism. This partnership between our nations will grow and become stronger as we are able to form sound and lasting bonds between the business concern of our respective countries.

 

“It is my firm hope that our new company will make an important contribution to the future of Japan by developing a useful measure of economic strength, and also a useful measure of friendship and understanding between us.

 

“Again, my appreciation and best wishes to each of you for being here with us this afternoon.”

 

 

Box 1, Folder 22B – General Speeches

 

November 22,1963, Remarks on the occasion of the assassination of President John F. Kennedy

 

11/22/63, Copy of typewritten text of Packard’s remarks

 

“There is little we an do to alleviate the nation-wide sorrow for the assassination of President Kennedy but to offer our prayers for him and his family – each in our individual way. In this hour of tragedy for our country we should remember that the affairs of the world will and must go on. Since much of the work we do contributes directly to the strength and stature of our country we will carry on with our work today, but we urge any employee who wishes to attend a memorial service to take time off during the day to do so.”

Box 1, Folder 35D – HP Management

7/16/63, Sales Seminar Luncheon

Packard’s handwritten notes for this talk give a mid year report of orders.

He says their job is not only to sell, but to help control expenses

Of the overall economy he say business is good – but not good enough.

He says new products will be the key to company success

He includes many statistics on company operations.

1963 – Hewlett Speeches

Box 1, Folder 37 – General Speeches

 

February 14, 1963 – “The Importance of Being Wrong,” Brigham Young University, Provo, UT

 

2/14/63, Draft of speech handwritten by Hewlett

 

Speaking to his audience of students, Hewlett says “the three most difficult statements for people to make are: I don’t know, I don’t understand, and I was wrong.” Saying that while any one of these would be worth considerable discussion, he wants to talk about the subject of being wrong while in the pursuit of truth, first in the context of scientific and engineering endeavors, and, secondly,  as it might apply in the field of management.

 

Looking at the matter of being wrong as it might apply in field of science, Hewlett goes back to the Greek era – and to Aristotle in particular. “Aristotle,…the pupil of Plato, the teacher of Alexander the Great,” he says, “is important because of his profound influence on the scientific thought of the Western world.”

 

In explaining Aristotle’s approach to science, Hewlett says “…he believed in the natural path of investigation, starting with that which is observed and readily observable and evident, and proceeds to the more self-evident and intrinsically more intelligible. From these intelligible principles observable facts can be predicted and verified by experiment. From such experiments come confirmation or refutation of the applicable intelligible principle, i.e., success or failure – right or wrong. Some conclusion would be reached and action taken. Progress was made by some correct decision, some action.

 

“Aristotle,” Hewlett says, “is alledged [sic] to have stated that in his work he learned more through a study of his failures than from a review of his successes.” Hewlett notes that while this is a “truism,” it is “more often observed in the breach than in its observance.” But he emphasizes the point that after action comes observation and then analyses.

 

“Aristotle’s approach, as important as it was scientifically, had certain weaknesses,” Hewlett tells his audience. “…it presupposed a theory and set about to prove it rather than the more wide open theory of investigation that studied general principles, rather than seeking to prove a theory.”

 

“A second failure of the Aristotelian approach was the acceptance of the ‘self-evident’ or ‘generally accepted’ basis for subsequent theory,” Hewlett says. He tells how Copernicus, in 1530, completed his treatise saying the sun was the center of the solar system. This was a challenge to the commonsense feeling that the solid and immovable earth was at the center, with the sun and other planets rotating around it. And, for the first time, it was a challenge to the authority of Aristotle himself.

 

“The reaction to Copernicus,” Hewlett says, “was typified by the comment of Francis Bacon who said of Copernicus that he was a man who ‘thinks nothing of introducing fiction of any kind into nature, provided his calculations turn out well.’”

 

And  Hewlett tells how, three-fourths of a century later, Isaac Newton “knocked out theory and created new fiction – gravity. It was only a matter of time before his fiction was accepted as theory and, in turn, was to be modified by the 20th century fiction of Einstein’s relativity.”

 

“Therefore,” Hewlett tells the students, “you have a responsibility to question – not that you will all be Newtons or Einsteins – but in the day to day world that surrounds you, you will find many things that ‘always have been done’ – but that does not make them correct. All of this [is] to say that in science man’s progress has been made by the questioning of ‘authority’ by more advanced theory, the proving out of the new theory…with resultant advancements – and in time the now old authority [becomes] challenged by new ‘fiction.’ ”

 

Hewlett moves on to show how all this has application to the world of management – or, more specifically, decision making.

 

He says, “In a group your reputation is built by a series of good decisions, large and small. Some mistakes will be tolerated particularly if it is noted that you learn from them. A long series of decisions that have stood up gain you leadership among your associates. Your own success can be judged when more and more people both at your organizational level and above seek advice. When people no longer question why a decision is made but merely accept your views, you are on the road to being an expert (ugh) and have achieved leadership in that field.

 

“All of which is a long way of saying that personal progress is made in management by your skill in successful decision making and not by not making decisions.”

 

Dealing with Failure.

“Failure can be a shattering experience. What to do about it.” Hewlett advises maintaining equilibrium, “don’t panic – ask yourself how big was the failure, who thinks it is a failure. Is it indeed a failure – not to be defensive, but self analytic – to learn from experience. One of the hardest things about failure is to recognize it as an opertunity [sic]. One of the hardest questions is ‘Was it me or was it bad luck.’ A time for self-analysis, often an inflated ego, toughest when [failure] comes after a long series of good decisions. A sense of infallibility has been established – all the more reason to get back on beam….Sometimes failure comes from being too much of a perfectionist with a resultant inability to make a key decision, for not making a decision is often as much a decision as making one.”

 

Hewlett tells the students that as they start out in the world as junior employees they “have a right and a responsibility in your mind to challenge the status quo of your new environment – to ask questions, to listen and to learn. In due course I’m sure you will want to make constructive suggestions. Not all organizations, – not all supervisors, are the same. In a good organization, with a good supervisor, consideration will …be given to thoughtful suggestions and their source noted.” He tells them they may be rebuffed, and he councils moderation in such circumstances; “but above all,” he says, “remember your reaction to this disinterest and vow to be more responsive when you are in an equivalent position.”

 

Conclusions

Hewlett concludes with a quote from a book ‘The Art of Decisions Making,’ by Joseph D. Cooper:

 

‘The aftermath of decision is action and the aftermath of action often brings some measure of failure. In a sense, anything short of perfection constitutes a fraction of failure. However failure is to be avoided, when it comes you must learn from it.’

 

Hewlett continues, saying, “I know of many people who have great ability and good ideas – but who are afraid to act for fear of being wrong. I know of others who are such perfectionists that unless every eye is dotted and T crossed they will make no decision – take no action.”

 

“In a measure, my being here today is proof of what I say for this is but an imperfect presentation of a very important phylosophical [sic] point. I am willing to be called wrong, but even here I have a hedge, for to those of you who do not agree, who believe I am wrong, at least I am practicing what I am preaching. But to those of you who agree I may have made some small contribution.”

 

 

 

Box 1, Folder 38 – General Speeches

 

April. 1963 – “The Changing Scene of Engineering,” Tokyo Section of  IEEE

 

4/63, Outline of speech handwritten by Hewlett

 

Hewlett says he has not been active in the IEEE for the last 8-9 years, although one of the HP Vice Presidents is a VP of IEEE.

 

Therefore, he says he would like to talk about long term trends in science, particularly engineering trends —  the recent merger of IEEE and AIEE being one example.

II Background

 

  1. [Science] is growing exponentially – 90% of scientists are now alive, double every 10-15 years.

Problems of education

Uses and control

  1. Overall growth [of science] consists of whole series of lesser growths – some arrested and now static – some declining like steam locomotives.

 

  1. As science becomes more complex there are some significant changes taking place that I believe are worthy of noting. One of these is the tendency of all sciences to spread out and overlap related areas.

 

III Engineering

 

  1. Military engineering – civil engineering
  2. New fields – specialists, ME, EE
  3. IRE, AIEE,
  4. Educational process follows – how to do courses
  5. Professional consultants
  6. Changing pattern

1.   Professional to employee

  1. Some fields peter out – mining engineer
  2. New societies spring up, like IRE – some short lived
  3. Professional group section in IRE
  4. Technical committee  AIEE

 

  1. Significant of new phenomenon
  2. Areas of related interest spreading out
  3. Other areas finding commonality
  4. Concept of team approach
  5. The broader base of science has encouraged companies to speak out on new areas, thus the phenomenon of everyone speaking out on new areas, getting into each others fields. – rubber into petrochemical, petrochemical into plastic, chemical into drugs…

 

III What to do about it.

 

  1. Recognize it as it happens
  2. Education as it happens
  3. Develop management skill to cope with it.
  4. Be prepared to adapt marketing, strategize to exploit own ideas and to react to others.
  5. Be as flexible and mobile as possible – both in technical and management sense. A fixed position is just as obsolete as the Maginot Line.
  6. As to the merger of IRE and AIEE, it was the recognition of facts and a symbol of the changing times. It was a wise and courageous move, and one from which we may learn something about the problems of overlapping disciplines.

 

 

Box 1, Folder 39 – General Speeches

 

May, 1963 – “An Executive View of Industrial Planning,” Before the Conference on Planning for Industrial Growth, sponsored by the Stanford Research Institute, Stockholm Sweden

 

5/63, Typewritten, double-spaced draft of Hewlett’s speech with several notations in his handwritting.

 

Hewlett says he “looks forward to the opportunity to visit with many of you and to learn of the similarity of problems on both sides of the Atlantic. I hope that later in the day I may have the opportunity to discuss subjects of mutual interest with members of the conference.” For those who come to the western U.S. he extends an invitation to visit HP’s headquarters in Palo Alto, California. He says HP has employed several young men from Scandinavian countries,  and, “without exception these young men have been highly regarded by their American colleagues and a number of long lasting friendships have been established.”

 

In considering what he might say about the subject of industrial planning he wondered what light “an executive from a relatively small electronics firm” might “cast on this subject when there are representatives from so many world famous companies participating in  these discussions” He says he concluded that there was one important field of planning “where the experiences of my own company might be of value – the field of planning in a growth company.”

 

Hewlett says he has seen HP grow ten-fold over the last ten years, growing from “500 employees in a single plant to more than 6000 employees spread through ten plants in the U.S. and two in Europe.”

 

He says he has had the opportunity to observe “the transition from the highly informal planning which is characteristic of a small company, to the clear recognition of the requirements and advantages to be derived from a more precise corporate planning program.” Saying that the advantages of such a program are “abundantly clear,” he gives one example: “Ten years ago,” he says, “if we wished to expand our production by a ten percent increment, it was relatively easy to find a thousand square meters or so of additional space to house this increment. Now, a ten-percent increment requires more than ten thousand square meters of plant space, and our experience has indicated that to locate, plan, construct and equip such a facility takes almost two years. This single fact alone has forced planning out by at least that length of time. In addition, there must be parallel planning to insure that there will be production workers, supervisors and managers…to staff this addition.”

 

Hewlett says he would like to continue the discussion on the subject of planning in a growth company, particularly with “the transitional  phase that starts with the individual personal planning of the chief executive, [which is] so characteristic of a small company, and carry it through some of the steps that ultimately produce the more formal planning associated with a large corporation.”

 

He says he would like to do this “by means of a hypothetical company – a company that is a composite of all that I have observed. In discussing this hypothetical company, I would like to postulate that it has certain characteristics – one of the most important of these would be that it has had good management. This good management has been adequate to provide it with the type of product planning necessary for small company growth and further has provided it with financial planning sufficient to solve the fiscal problems associated with growth. The company has been able to establish a marketing organization that is reasonably efficient in the distribution of its products; and finally, and most important, the company has reached a size that taxes the span of control of the chief executive as yet unaided by strong staff support.”

 

“It is at this point,” Hewlett says, “that the prior skill and foresight of the chief executive in his alter ego as corporate-planner will show up. Does he have the executive material [available inside the company], trained and ready to help him share the increasing administrative load – or must he go outside the company to find such help? To have been ready for this need, he must long ago have anticipated such a requirement and have committed the company to the added expense of hiring junior personnel with less experience than required for the job but with promise of great potential for executive development.”

 

Hewlett admits that such preparation “takes courage to do, for the horizon of the small growth company is never very far ahead. It is truly difficult without the elaborate planning staff of a large company to predict future growth. All the chief executive can conclude is that the company is doing as well today as yesterday, – that he sees no worse storm clouds ahead than in years past, and that having experienced a certain average growth rate for the past few years he must be prepared for the problems that will arise if such growth continues in the future. In a gross sense, these are the bases on which the additional overhead of executive training must rest.”

 

Following the further development of this hypothetical company, Hewlett says, “It must have a second echelon of management capable of sharing the responsibilities of administration with the chief executive. This staff was either developed from within the organization in which case the transition can often be made smoothly or it was obtained from outside the company and the transition may be considerably more difficult. Regardless of the source of such personnel, the delegation of responsibility to the staff creates new problems within the organization. One such problem is the need for a clear set of broad corporate objectives – of corporate goals to guide top management. Often these corporate objectives have been locked in the mind of the chief executive and were never clearly expressed or even fully thought out. The formalization of goals and the acceptance of them by all is an important step in …corporate planning. Time may change them in detail or even in some major aspect but these goals, these objectives will ultimately become the backbone of the more formal corporate planning to follow.”

 

Increasing size brings many problems which, Hewlett says “in a small company may be solved almost on a day-by-day [basis], but which in a large company require much longer lead times and therefore, better long-range planning….Another example of the need for increased lead time with [increasing] size, is related to the necessity to have an adequate supply of trained personnel, [not only] at the management level, [but] at the foreman and supervisory level, to meet the demands of growth. As a small company, such needs are not hard to fill. A large company may find it desirable to establish in-plant training programs to assure the availability of such people as needed.”

 

The area of “plans and procedures” is another field where Hewlett says, increased planning is required as the company grows larger. “In the small company,” he says, “ where communication is less of a problem, greater flexibility exists with respect to adapting procedures to meet changing requirements. As a company grows, much of this flexibility is lost and much more planning is required in the development of new procedures to insure that they are in themselves flexible enough to adapt to the changing environments without disrupting the normal operation of the company.

 

“Closely related to this problem is that of internal accounting procedures…to revamp this important phase of accounting to accommodate the greater volume and complexity of the firm. Changes in such procedures are highly critical for they are the standards by which performance is measured. It is important, therefore that when such changes are made that they be made only after the most careful study and planning. Planning to insure that the new accounting procedures will be viable despite the changing patterns of growth.

 

“A final step towards formal corporate planning must be taken if size and geographical disbursement indicates a move toward management decentralization. Without corporate planning such decentralization can lead to corporate anarchy. The objectives, the goals, the inter-operation of all elements of the decentralized company must be carefully planned if full advantage is to be taken of the inherent assets of a large corporation, yet at the same time capitalize on the flexibility that lies in the smaller operating unit. If I may return to our own company for a moment – our entry into the European market added much to our understanding of  the need for better planning, for it forcibly took us out of  our domestic environment where many functions and operations had been taken for granted and forced us to look objectively at them for the first time. This look gave us a better insight into such areas as flow of funds, transfer of know-how, market strategy, management rotation and the like. As a result of such planning, we have been able to adapt ourselves to our new environment and, indeed, benefit greatly from our new associations, not only in a technical sense but in the broad area of mutual understanding.”

 

Hewlett says people in Europe are more accustomed to a multi-country environment and “may fail to realize the truly stimulating effect of moving out of your home country environment,  which inevitably tends to be restricted in view, and into other countries of the world where one has the opportunity to observe the many and varied approaches both to the day to day and long term problems that face an industrial concern. For us, the planning that led to our markets in Europe has proved to be an indirect but important key to better international understanding by our entire top staff.”

 

In closing, Hewlett says he has “just touched on a few highlights of the step-by-step growth of planning that leads to a more mature company. “I have dealt,” he says, “with the structural aspects of this development rather than with the more obvious and more widely recognized need for product planning, for market planning, or for financial planning. Indeed, each of these is a major subject in  itself. One of these, product planning, is a subject for discussion during the afternoon session.

 

“As I look back on our own experiences, I am convinced of the fact that, almost without exception, we have not initiated a given planning program until appreciably after the need was first evident. If I had the ability to relive this phase of our development, one of the aspects on which I would lay the greatest stress would be an earlier recognition of the need for planning. We have lived through this phase but we could have done better.”

 

5/63,  Typewritten, single spaced, copy of Hewlett’s speech. Has no notations added and does not incorporate the handwritten notations he had added on the copy noted above.

 

 

Box 1, Folder 40 – General Speeches

 

May 23, 1963 – Testimony at a hearing of the Senate Committee on Commerce, San Francisco, CA

 

5/23/63, Copy of typewritten text of Hewlett’s remarks

 

Hewlett says that he hopes, as a representative of the Western Electronic Manufacturers Association [WEMA], “to give some indication to this Committee about the steps being taken by the electronics industry in the West to increase its share of trade in the Pacific area.”

 

He says the electronics industry is so diffuse that a detailed analysis of the overall export program could not be given without “a tremendous amount of research. Lacking the time to undertake such a survey he says “I will therefore be forced to deal in either broad generalizations about the industry or by means of specific references to the experience of my own company.”

 

“Electronics” he says, “ in California is the seventh ranking industry in this State in terms of export.” Behind aircraft, food products, and petroleum, “it is still an important and significant phase of the State economy.” Based on data that he has been able to gather, including various governmental reports, Hewlett reports that “as far back as 1957 (the most current data available), California was the third ranking state in the export of electronic equipment in the U.S. Although it may be very difficult to obtain an exact estimate of the distribution of U.S. electronic products, it is possible to make a reasonable estimate based on the very close correlation that exists between the sale of precision electronic test and measuring equipment and the total electronic market. This is exactly the field in which my company, the Hewlett-Packard Company, is engaged – and thus a study of the U.S. Department of Commerce classifications covering this category of products,  as well as our own experience, gives a reasonable clue to the relative importance of various world trade areas for U.S. electronic products. Using the most currently available…that of 1961, one finds the following approximate breakdown of the market areas of the world:

 

Europe – 50%

Canada – 20%

The Pacific area including India and Pakistan – 15%

The rest of the world – 15%

 

“A more careful scrutiny of the 15% of the exports that go to the Pacific area reveals that 75% of the product goes to 3 countries – Japan, Australia and India, and the remaining 25% to the 15 other countries listed in the Department of Commerce survey.”

 

Noting the higher percentage of exports to Europe, Hewlett says “U.S. industry in general has not been particularly export minded. It is really only in the past decade that the full importance and potentialities of the export market are being appreciated by American industry,”

 

Hewlett inserts a related thought: “In passing, I might comment that the 1962 changes to the Revenue Act as they affect taxation of foreign income were in my opinion most unfortunate. At a time when every effort should be made to encourage trade, these revisions I am afraid, will have exactly the opposite effect. There certainly were certain abuses of the existing law but why try to carve a chicken with a meat cleaver.”

 

Returning to his primary subject, and referring back to the rather recent recognition of the importance of exports by American industry, he says “It is quite natural that the industry world tend to look first at the most important market areas – Europe and Canada, and only after these markets were reasonably in hand to such secondary markets as the Pacific area.

 

“From this fact, it an be concluded that reasonable opportunities may exist for expansion of electronic exports to the Pacific area.”

 

Hewlett says customers for electronic equipment are “generally found  in those countries [with] a reasonable degree of sophistication in their industries, or have a large internal military demand. It is for this reason, I believe, that one finds the heavy predominance of electronic exports to such countries as Japan and Australia. Let me discuss …some of the problems of expanding exports to these countries as well as some of the steps that are being taken to overcome them.”

 

JAPAN

 

Hewlett says Japan is greatly concerned with its balance of payments and “husbands her reserve of dollars with great care. Thus, U. S. exporters to Japan

face serious limitations on import licenses and dollar exchange available for [imported] products. Unless Japan can export more of its manufactured products, it is unable to increase its imports.” Hewlett feels U. S. policy towards Japan has been “liberal and enlightened.” But Europe, on the other hand, he says,  has “…by one means or another managed to restrict seriously the import of Japanese products. He recommends that the U.S., therefore, “continue to push, in the most vigorous fashion possible, for a more enlightened policy by our European allies in this respect.”

 

Hewlett says “Many American electronic manufacturers are establishing manufacturing operations in Japan in an attempt to increase the sale of products  [there.]” He says these operations are usually established in conjunction with a Japanese partner. Hewlett feels these operations will inevitably lead to an increase in exports [from] the U. S.  “Part of this increase in exports will come in the form of components whose specialized nature precludes their manufacture in Japan -part [will come] in the form of fabricated items which can be more economically manufactured in the U. S.,  and part through improving the reputation of American made products, thus increasing the share of import dollars made available for their purchase. Part [of the increased exports from the U.S will come] from the export of U.S. production machinery which may be necessary to support local manufacturing.  Our own experience with the establishment of manufacturing operations in Europe has borne out these factors. We have found that our total export of manufactured items to Europe has increased at a rate substantially larger than our domestic market, and further, that it is necessary to import almost 70% of our components and materials from the U.S. to support these foreign manufacturing plants.”

 

“Up until recently it was not possible for products of foreign manufacturers to be displayed at…trade shows in Japan,” Hewlett says. On the other hand, he points out that Japanese products are regularly displayed at trade shows in the U.S.

 

He says some progress is being made for U. S. products to be shown in Japan, saying that “two booths may be assigned to the Scientific Apparatus Makers Association at a show later in the year.”

 

And Hewlett adds that at HP they “have found that some of the steps taken by the U.S. government to promote the sale of U.S. manufactured products in Japan have been most successful. In 1961,” he says, “we had an exhibit at the U.S. Department of Commerce exhibit at the Tokyo trade fair and found this to be a most valuable means to make known to the Japanese on a broad base the character of our products.”

 

AUSTRALIA

 

“Australia, like Japan, has a serious shortage of dollar exchange,” Hewlett says. And he adds that the discovery of oil in Australia may help alleviate this problem.

 

Australia has a high import duty regulations on electronic products, Hewlett says. He suggests that it would be helpful if the U. S. government urged Australia to ease this problem, although he doubts they would be receptive to any such requests “as long as there are equivalent clauses in the ‘Buy America’ act.”

 

INDIA

 

Hewlett feels that India, with its large population, should be a prime target for U.S. products, although he says they, too, have a difficult currency exchange problem. He says, “The long range policy of lending every assistance to India to facilitate a limited degree of industrialization will do much to hasten the day when India’s balance of payments problems will be lessened, and it will be in a position to import, on a freer base, manufactured products from the U.S.”

 

Hewlett says other countries such as Taiwan, Indonesia, Malaysia may become important export markets for U.S. electronics, but the “primitive state” of their industry limits imports now.

 

“In conclusion,” Hewlett says, “it can be said that to date the Pacific area has represented only a small fraction of the world export market for U.S. electronic products, and that only most recently has increased attention been focused on this market area.

 

“Sales penetration of the market will undoubtedly take the form of local manufacturing coupled with more aggressive sales effort. U.S. help to date through the media of trade fairs and trade centers at least in the more developed countries has been of value.

 

“Finally, any factors which improve the balance of payments position of customer nations will have a direct and beneficial effect on U.S. exports of electronic equipment.”

 

8/28-29/62, Booklet titled “Pacific Trade Patterns”  containing the hearings before the Senate Committee on Commerce in August 1962, which Hewlett no doubt obtained as background for his remarks.

5/31/63, Copy of a letter from Hewlett to Senator Clair Engle in which he requests a copy of the proceedings of the Senate Committee on Commerce in San Francisco in May, 1963

5/23/63, Copy of a statement by George L. Mehren on the subject of agricultural exports given at the Senate hearing in 1963

 

 

Box 1, Folder 41 – General Speeches

 

July 15, 1963, Talk to HP Senior Sales Seminar

 

For years, HP had sold its products through independent sales representatives. In late 1962, HP completed negotiations with all sales representatives to acquire them, most through the exchange of stock. These remarks by Hewlett appear to be given at the first meeting of all of the senior sales people, including those overseas, as HP people rather than as independent representatives.

 

7/15/63, Handwritten speech written by Hewlett on notebook lined paper

Hewlett says this is the first “Full Sales Group” meeting and the 1962 meeting was the last sales representative seminar. He says he knows there is much apprehension among those attending as to the details of the new organization and how it all will work – apprehension about “change.” He says “I would like to single out this question of “change” and look at it carefully – pick it up by its heels, turn it around, examine it top and bottom.

 

 “There are going to be changes,” he says, underlining it twice in his notes.

And saying that there will be many types of change, he starts with “Changes in Conformity.”

 

Using the analogy of gears, he says not all gears of their new organization are yet meshing. “And,” he says, “usually [where gears don’t mesh] it isn’t the ‘bull’ gear that does the changing – specifically, there will be some areas where conformity is both necessary and desirable. He enumerates these

 

  1. One obvious field is accounting and accountants
  2. Not all changes to conform to parent sales organization. Different than manufacturing – desirable that there be some similarity between sales organization in different parts of the country.
  3. Why conformity when in the next breath we will talk about the advantages of decentralization….Effective management is a complex mixture of likeness and differences. From differences spring new ideas, new techniques. From likeness can come true comparison of results, flexibility that will allow transfer of a man from one job to a more promising and challenging one in another area – the ability of the whole organization to work together as an effective unit.
  4. Change, because now we can do some things in an integrated fashion which were not possible when our organizations were separate. Changes that will allow us to more effectively present our wares to the customer – more effectively give him the service and backing that spells future sales.

 

  1. Order processing
  2. Area stocking
  3. More effective transportation

 

Change because we must adapt to changing environments

 

  1. Competition
  2. Government regulation
  3. New technologies

 

Change is not necessarily bad

 

A.   Tendency to resist change – no one likes it

  1.  Good changes bad changes, no changes
  2. We do not want change for change’s sake – we do want no change for no change’s sake
  3. Deep responsibility for those who cause change – results not always evident

 

Living with Change

 

  1. Do not want to give the impression that we are going to change the     hell out of everything – far from it. You were all successful in your [business] – why change more than absolutely necessary. Will not be capricious, worked out with principle.
  2. No point in looking back at the ‘good old days’…
  3. We are all part of one organization. Let’s all get our shoulders to the wheel and push.”

 

Conclusion

 

“There may be change in form and detail, but not in basic principle.

 

  1. HP is in the business of developing, manufacturing and selling quality measuring equipment – when possible, of making a contribution to the art, at the lowest possible cost consistent with long range picture.

 

  1. We are in business for the long haul and not for the quick buck. This means that in field of selling we must know as much as possible about the equipment we are selling so that we can intelligently recommend the proper equipment for the proper job. This is a relentless and unending job – to the extent that you are successful at this task you will be welcomed back – next week, or next year.

 

  1. It is our continuing desire to make it as easy as possible for the customer to procure maintenance and receive the finest possible follow up service for his HP products you people are selling and have the unique responsibility to see that these objectives are met. You stand between the customer and the plants. You are a spokesman from the company to the customer is obvious – that you are a spokesman for the customer to the plant is, however, equally important. If you overlook this aspect of your job your long range effectiveness will be greatly impaired and never forget it.”

 

“So let’s get in and make this the best senior sales seminar ever – let’s quit worrying about the past and think about the future.”

 

 

Box 1, Folder 42 – General Speeches

 

August 12, 1963 – Talk at Scope Plant Ground Breaking Ceremony, Colorado Springs, CO

 

8/12/63, Handwritten notes by Hewlett for his remarks at this ceremony.

8/12/63,  Typewritten copy of same, somewhat expanded.

 

Hewlett says that when he and Packard first started thinking about starting up a company in 1934,  they had tentatively planned on doing so in Denver, Colorado. But by 1939 they “were well established in Palo Alto.”

 

“[This new plant] is a good deal – one in which both parties feel that they attain value received from the transaction.

 

“HP wanted :

 

(1)  A stable, intelligent, hard working labor force, because of the type of  products we make

(2)  A community that was intellectually interesting and stimulating

(3)   A community that was attractive and an interesting place to live.”

(4)   A stable and responsible community that could understand our problems and work with us in resolving them – [we] do not expect special treatment, just a willingness to work out problems;

(5)   And most important, a community that wanted us.”

 

He says these points are important because “…we need to bring in certain technical and managerial people into the community and these conditions make it more acceptable.”

 

“I need not tell you people of Colorado Springs that one would find these conditions here. I can tell you that we have indeed found these characteristics here

 

He says he cannot speak for the city of Colorado Springs, but he can do a little selling on behalf of HP –

 

“Colorado Springs will be getting:

 

(1)  A company that is dedicated to a responsible labor policy – stable employment, even sometimes at the expense of short term dollars

(2)  HP will bring technical and managerial personnel into the community that will complement and fit in well with the quality of the community

(3)  [The technical nature of HP’s products] will encourage technical training in the area,  as well as a general endeavor to continue to improve education at all levels

(4)  Tax income and general benefits to the area to be derived from a 10 to 15 million dollar business

(5)  A company that really wants to make a permanent establishment in your community”

 

 

Box 1, Folder 43 – General Speeches

 

September 10, 1963 – Acceptance of Honorary Lifetime Membership in the Instrument Society of America, Chicago, IL

 

9/10/63, Handwritten notes for his speech, written by Hewlett

 

With some interpretation of his notes:

 

Hewlett says he has been interested in ISA activities and their important leadership – he is sorry he has not been able to participate more fully.

 

ISA is like other organizations – “you have to sing for your supper,” and they “tell you what to talk about – technical contributions Dave and I have made – damn few.”

 

“Our contributions are really a product of the whole staff. All Dave and I can do is get the best people and provide a good environment.”

 

As for the environment, he says this includes physical, educational, intellectual, administrative

Problem getting people to move to Palo Alto

Stanford is a source of students, higher education, consultants, intellectual     stimuli, interplay with good technical staff in shops

 

Company environment most important:

Top management deeply convinced that the future of the company depends on the quality and contribution of the technical effort.

 

Encourage people’s ideas that may lead to technical breakthroughs and support work

 

Pays off

 

Importance of forward effort leads to balanced program

 

Breakthrough that work contribute to measurement  science

 

Opportunity of people to develop to fullest

 

Same horizons we had when we started – reserve for our people

 

It is the effort of all the people who make the people in the front office look good

 

9/10/63, Copy of the program for the ISA Honors and Awards Ceremony

 

 

Box 1, Folder 44, General Speeches

 

October 2, 1963 – Indoctrination Seminar for New Field Engineers, Palo Alto, CA

 

10/2/63,  Handwritten notes by Hewlett for his talk

 

Most of you will be concerned about selling HP products: what policies, what background, what precedents of the company influence our products, our policies

 

To understand us you must know about our background and how it affects the company and its people.

 

Did better on general purpose than on special purpose instruments

 

Thought when we made a truly basic contribution we were repaid

 

As a young company we could not afford frills

 

The Company Today

Appearance of confusion (maybe there is)

Acquisition of sales organization

Some divisions, some subsidiaries, sales new territories

 

In foreign field same patterns – some are our offices, some are independent representatives

As far as you people are concerned a great confusion of products

Birth pains of a new company – an important new company in the making

You are in part also seeing the working of free enterprise system – the willingness to tolerate some degree of confusion and overlap so that the spark of creativity and innovation may have a chance to be exercised.

 

What this means to you

A company in motion is a company where excellent advancement of the able is possible, vis-a-vis the stable company

 

Finally, the idea of the sales engineers as the front door of the company

 

Corporate Objectives

 

9/27/63, Memo from Ed Winn to Hewlett confirming arrangements for the seminar and attaching list of field attendees

 

9/30/64, Memo from Ed Winn to Madelen Schneider, Hewlett’s Secretary, listing other attendees at the seminar

 

 

Box 1, Folder 45 – General Speeches

 

December 2, 1963 – Fred Jones Dinner, Mills College, Oklahoma City OK

 

12/2/63, Outline of remarks handwritten by Hewlett in pencil on notebook paper

 

Hewlett discusses the “Case for  Private Colleges, ”and Private education as a national asset. His conclusions are:

 

1)    U. S. education has developed and prospered because of the important balance between private and public education

2)    Private education is a national asset for students and a source of future faculty

3)    Face a crisis

4)    Mills College