Quotes From Bill Hewlett and David Packard

http://philmckinney.com/archives/2011/09/10-quotes-from-bill-hewlett-and-david-packard-that-every-executive-should-read.html

by mikecane • 15 years ago

61 12 15 years ago

philmckinney.com

j_col• 15 years ago

From the article:

>...and my favorite one is...

> 10. Investing in new product development and expanding the product catalog are the most difficult things to do in hard times, and also among the most important.

Wow. I'd love to know what Phil is thinking re: the recent cancellation of webOS devices, given that he singled out this point (which I think is an excellent point by the way).

bradfa• 15 years ago

You could look at it another way, HP is expanding into more software services / enterprise tech. They're probably going to spend a lot more money in this sector than they used to, thus expanding the product catalog.

Granted, killing WebOS means somewhat shrinking the product catalog, but there weren't that many WebOS devices out there anyway, nor much prospect of selling them for the original asking price. If HP sees a much larger market in enterprise tech, going into that while killing the tiny market of WebOS devices is worthwhile and doesn't violate point number 10.

maheshs• 15 years ago

> The job of a manager is to support his or her staff, not visa verse and that begins by being among them.

My take away...

amcintyre• 15 years ago

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

But, but, but...we have to just slap something--anything--together to beat the other guy to market! Or to meet our arbitrary deadline!

We can always make it correct later, right? :)

staunch• 15 years ago

Is this HP lore or is there evidence that they said these things?

drcube• 15 years ago

>5. A company the focuses solely on profits ultimately betrays both itself and society.

I think if you focus on long term profits, you don't fall into this trap. The problem is short term thinking, not profits per se, or else what is a business even for? I can buy a house if I want a money pit.

shoham2• 15 years ago

I think that these phrases and especially number 5 point to a different paradigm in business than we have today, unfortunately. Profits should really be there largely to help a company expand service, do R&D into new technologies, and keep the business afloat in hard times, not as the prime mover it all too often is.

To your question: "What is a business for", I like this answer:

#2: Set out to build a company and make a contribution, not an empire and a fortune.

Even the meanest Robber Barren on the Gilded Age got this, I think.

ansy• 15 years ago

The key word there is "solely."

If your company only exists to make money, it will tend toward a state that doesn't create real value. It will be a company of charlatans.

The quote needs to be taken in context with the other quotes. The message is that companies need to aim for a higher purpose. This isn't just philanthropic white-washing, but this grounds the company and forces it to understand people and society. From that understanding the company can serve its customers better which is the true path to profitability.

cpeterso• 15 years ago

> The problem is short term thinking, not profits per se, or else what is a business even for?

That is a good question: when is a business/company no longer necessary? As short term thinking approaches zero, when does a business simply devolve into just a value transaction?

If investors or management want immediate revenue, they could liquidate the company's assets. If they want longer term profits, then they must define the expected duration for a return on investment. One quarter? One year? Or a sustainable, self-sufficient entity (cf. Built To Last: Successful Habits Of Visionary Companies)?

hammock• 15 years ago

Actually the idea is that if you focus on creating products that people want and are able to buy, the magic of capitalist trade is that the profits will come naturally.

Focusing solely on profits (regardless of long/short term) and not putting the product first is what leads to bad decisions. It is the thinking behind why Jack Welch once said, "Strictly speaking, shareholder value is the dumbest idea in the world."

shoham2• 15 years ago

Thanks for sharing this, whether or not either of them actually said these things verbatim (which has been questioned elsewhere in this thread). These guys got what capitalism is all about: providing goods, services, and jobs that make people's lives better.

acangiano• 15 years ago

One of my favorite quotes by David Packard is: "Marketing is too important to be left to the marketing department."

I like it so much that I placed it at the beginning of the chapter on promotion in my upcoming book.

Quotes From Bill Hewlett and David Packard

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