Lessons from the HP Way  (adapted from Bill & Dave, Michael Malone, 2007)

Keith Starcher
DayStar Consulting, Inc.

Bill & Dave is an interesting look at the life of Bill Hewlett and Dave Packard, founders of HP.  The author has created an appendix that lists scores of management and leadership lessons garnered from his study of these two influential entrepreneurs.  Thinking about a few of these “Lessons from the HP Way” will be our purpose in this Insight.

The best possible company management is one that combines a sense of corporate greatness and destiny, with empathy for—and fidelity to—the average employee.

Have you ever participated in an organization that you felt had a larger destiny than just providing goods and services in the marketplace?  If you have, you understand how easy it is for managers to get caught up in the hoopla and forget about the employees who are actually creating the “greatness.”  HP cautions those managers to work hard at maintaining contact with the everyday employee—to never take the folks “in the trenches” for granted.  Some companies (Southwest comes to mind) require that their senior leaders spend a day each year on the front lines with the average employee.  Do whatever it takes to stay close to the dreams and frustrations of the troops in your organization.  Without them, you cannot execute your vision.

Those closest to the action, no matter what their title, typically understand a process (and its flaws) better than anyone else—and would be happy to share that knowledge with anyone who will take the time to ask.

This reminds me of the famous Hawthorne Experiment.  This experiment took place at The Hawthorne Works, just outside of Chicago, and its purpose was to find the optimum level of lighting for employee productivity.  The researchers were thrilled to see that when the lighting level increased, employee productivity increased.  But they were dumbfounded when employee productivity continued to increase even when the lighting levels were decreased.  It seems that the key variable driving the increase in productivity was the fact that managers were paying attention to and were interested in what the workers were doing.  If you’ve worked hard to create a culture of trust in your organization, don’t squander the rich data for continuous improvement that resides within the minds and hearts of your front-line employees.  They really want to help you.  Ask for their help. 

Core principles are only valid if they are maintained in times of stress. 

I’ve written about this before, but it bears repeating.  You don’t really have values that are core unless you have lost something to remain true to those values.  It would appear that the majority of organizations have values that are more sizzle than steak.  You know the ones I mean.  Mission statement—check.  Vision—check.  Core values—check.  But rarely, if ever, do the values drive the tough decisions.  Most senior managers in these organizations are oblivious to the sham.  Trust me; their employees are not.

The biggest competitive advantage is to do the right thing at the worst times. 

Empowered “families” of employees, under enlightened managers, can perpetually produce near-miracles of invention, quality, and adaptability.

I worked for an organization where the President said over and over again, “We are not a family.”  I’m not sure why he took this stance.  You and I spend more waking hours with our coworkers than we do with our actual family.  I think the family analogy can be very energizing at work—if you’ve developed a team of enlightened managers to plan, organize, lead and control what goes on within the family.

A company that focuses solely on profits ultimately betrays both itself and society.

Milton Friedman’s famous quote comes to mind: “The social responsibility of business is to increase its profits.”  I’m not smart enough to unpack what Friedman had in mind.  However, I do know that the Scripture is clear that we cannot serve two masters (God and money).  We have to choose.  As Christians in the marketplace, we must see money as a means to a much larger end—the will of God (for my life, for my company, etc.).   You probably have lived long enough to have seen at least one life shipwrecked because of a person’s sole focus on money.

Even the healthiest corporate culture will be incompatible to large numbers of talented people.  This is inevitable, and a company should not compromise that culture just to gain those individuals.

I can remember when I was President of Zion Industries, Inc.  I asked our hiring managers to screen potential employees (especially those looking to be supervisors or managers) based on three things: (1) Can they do the job?  (2) Will they do the job (i.e. motivation)?  (3) Will they “fit?”  That is, will they fit within our culture?  A “no” on #3 should always trump even the best of candidates.  We sometimes forget the power that lies within our corporate culture.  This power can be used for great good—good that extends well beyond our corporate walls.  What will you do this week to enhance the good that is “your corporate culture?”

Keith

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