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

Keith Starcher
DayStar Consulting

Bill Hewlett and Dave Packard built a great company and developed a unique culture within that company (The HP Way).  However, note the following statement they made regarding company culture:

A company’s culture is not a suicide pack.  There are times when senior executives must intervene, violating their own rules of engagement, to keep the company from spinning out of control.

Companies and the marketplace in which they operate are not static—they are dynamic.  Things are changing all the time.  The above statement reminds us of that fact.  Today’s success can lead to tomorrow’s failure.  Perhaps a bit of paranoia is good. 

That’s why managers must make their comments about the future within some sort of context:  “Assuming that we hit our numbers, if our new product is as successful as we hope it to be,” etc. etc.  Always leave room in the equation for the downturn, the failure, or the catastrophe. It’s so easy for a senior manager’s good intentions to be interpreted as a promise (for a raise, for lifetime employment, etc.).  When and if trouble occurs, be ready to make tough survival decisions.  Remember, company survival (ethically) trumps company culture.

When the accomplishment exceeds the agreement, pay the accomplishment.

I’m a big believer in creating win-win scenarios.  I worked for a manager many years ago that taught me that if a decision is “good for the company and good for the employee,” most likely it’s a good decision. 

However, it’s easy to get out of balance in either direction.  I know of several companies that provided lucrative agreements (usually sales incentives) when the company was doing extremely well.  Unfortunately, the employees who benefited from this sky-high income developed a standard of living that required that level of income.  Then, when the company was not doing as well (as happens to most companies), and the income levels dropped, the employees either bolted (if they could command the high salaries elsewhere) or stayed around and complained.  Pay the accomplishment, but teach your employees about base versus variable income.

At HP, “real management genius lies in the ability to hide shrewd business strategy inside of benevolent employee programs, and enlightened employee benefits within smart business programs.”  That’s win-win at its best.

Management by Walking Around

I first read about this management practice in Tom Peter’s book In Search of Excellence.  At HP, the job of a manager is to support his or her staff, not vice versa.  A great way to excel in this role is to be among your people.  Get out of your office and into their world.  As Christians in the marketplace, our motivation for doing this comes from our relationship with Christ.  To please Him, we are “to serve and not be served.”  It’s easier to serve when you are in the battle with the troops.

A true “open door” policy goes all the way to the top, but in return requires the employee to pass through every door in between.

If you are a “fixer” by nature, it can be very difficult to ask the employee who comes to you for a solution to his problem if he has first consulted with his immediate supervisor, etc.  In most instances, following the chain of command not only results in better solutions for the employee, but also provides training for your supervisors and managers.  Don’t short circuit the system.  Train your management team well and let them do their job.  You should be the “door of last resort.”

Corporate objectives are designed to empower employees and constrain management, not the reverse.  People naturally want to do a good job.  The true goal of corporate objectives is to let them.

I like the phrase “constrain management” above.  I believe it was Deming who stated that 85% of all problems that occur in the workplace are caused by management.  Management controls the resources.  Management creates the systems.  Management hires the personnel.  You get the picture.  Thus, if you are a member of management—congratulations—it’s your fault!

One HP corporate objective that constrained management dealt with their “Field of Interest.”  To concentrate our efforts, we will continually seek new opportunities for growth but limit our involvement to fields in which we have capability and can make a contribution.”  I wonder how many times the use of this constraint helped keep HP from diluting its efforts in areas beyond their core competencies? 

Think about your own management team and the corporate objectives you have in place.  Do your objectives help constrain management and release your people to do the best they can for your company? 

All in all, it takes great wisdom to be a successful manager no matter what level in the organization.  Staying close to Christ and asking Him for heavenly wisdom as you enter into each day’s challenges can help move you beyond the “HP way” – to the Kingdom Way. 

Keith

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