I’m surprised at the honest dialogue about all the board and CEO scandals lately. There was always a gentleman’s agreement to pretend to the reality of Board of Directors didn’t exist and to use a lot of euphemisms that avoided that it’s very typical for large corporations to reach dysfunctions worse than the worst skateboard team management horror story could ever become.
The pleas for ethics always struck me as somewhat unrealistic. You can convince a gang member in the ghetto that violence is bad, but for people who have never experienced this environment, just surviving with your morality intact can be a daily challenge. There’s a lot of dirty, weird behavior and the spying, weird insinuations of criminal behavior in meetings and malicious gossip does happen.
However, that’s not to say that I don’t believe in having a Board of Directors at all. I’ve read and experienced and seen good guidance from experienced people who have been there and done that.
And believe it or not, a lot of people raised in the culture of engineering tend to get better people skills later on in life. It’s neat. It’s like seeing someone become superman very slowly in a nonobvious way.
The HP dramas are not that shocking the way hearing about teenaged fashion models being addicted to cocaine is not shocking at all (I’d actually be really surprised if any fashion models weren’t on some kind of crazy, illegal drug, especially the high fashion girls). It’s actually very typical.
What’s untypical is that Hewlett Packard was started by two really, really cool guys. Hewlett and Packward were entrepreneurs were the real thing before it became fashionable and poseurs flooded the scene and demanded ridiculous salaries.
I heard a podcast speech from Stanford about the minutes of the first HP meeting and it was like someone channeling the spirit of incredibly cool people forward into the future. Neat stuff!
For many years the company was run on the values of the HP Way, which unfortunately did not survive changes in management. The HP Way is the way I’d like the governement of any country I’d live in to be run.
Do We Want Corporate Values in the Government?
I’d be really frightened if successful corporate people today tried to run for office. That typical corporate mentality—one of cutting taxes of the rich (especially the estate tax!), relentlessly and shortsightedly slashing funding for projects of great long-term benefit financially and socially… whoa!
So many cases of bad management at corporations is about cutting costs in the wrong places in return for selfish, short-term career moves. Why do you think so many good ideas get shot down at big companies? Why does every new executive come in willing to slash jobs indiscriminately and ignore morale while pocketing tens upon millions of dollars in salary kickbacks and cutting the health insurance program? Etc.
Pollution is an Externality?
I was at an SDForum Greentech panel and a panelist said, “Well, until you make green $green$, it’s not going to work. Corporations are made to make money. Companies call pollution ‘externalities.’”
Do you want a governor or a President who calls pollution an “externality?”
And as I’ve said before, corporations are the least inefficient places I’ve been to. They like to squash innovation. I think it’s a structural issue. If you want to hire unimaginative, cookie cutter people because they are easy to control, then you’ll never get entrepreneuralism or any of the fruits of innovation.
The HP Way is so elegant and clear. It’s neat that a company could pull off values like this for so long. I hope more companies try to stick to the mission.
“The garage was left behind… So too were the audio oscillator and thousands of other products – all abandoned in the endless pursuit of something better. Only the people remained, and they were cherished and respected…”
– Michael Malone
Conscious Capitalism is Possible
I think it really is possible to build profitable companies, and as panelists at another event mentioned, “conscious capitalism” companies on the stock market really are more profitable than nonconscious companies.
That’s how the world today works, because there is no market share protection for cookie cutter people anymore. You really can’t coast by doing busywork but let your inquisitiveness be lazy. You really do have to be “liberal” and accept that the United States isn’t destined to control the entire world.
You don’t really need the most expensive, famous or brilliant people on your team, you just need a team in which people are willing to work hard, have critical thinking skills and believe in the mission.
You can do pretty much anything with a good team.
The HP Way
We have trust and respect for individuals.
We approach each situation with the belief that people want to do a good job and will do so, given the proper tools and support. We attract highly capable, diverse, innovative people and recognize their efforts and contributions to the company. HP people contribute enthusiastically and share in the success that they make possible.
We focus on a high level of achievement and contribution.
Our customers expect HP products and services to be of the highest quality and to provide lasting value. To achieve this, all HP people, especially managers, must be leaders who generate enthusiasm and respond with extra effort to meet customer needs. Techniques and management practices which are effective today may be outdated in the future. For us to remain at the forefront in all our activities, people should always be looking for new and better ways to do their work.
We conduct our business with uncompromising integrity.
We expect HP people to be open and honest in their dealings to earn the trust and loyalty of others. People at every level are expected to adhere to the highest standards of business ethics and must understand that anything less is unacceptable. As a practical matter, ethical conduct cannot be assured by written HP policies and codes; it must be an integral part of the organization, a deeply ingrained tradition that is passed from one generation of employees to another.
We achieve our common objectives through teamwork.
We recognize that it is only through effective cooperation within and among organizations that we can achieve our goals. Our commitment is to work as a worldwide team to fulfill the expectations of our customers, shareholders and others who depend upon us. The benefits and obligations of doing business are shared among all HP people.
We encourage flexibility and innovation.
We create an inclusive work environment which supports the diversity of our people and stimulates innovation. We strive for overall objectives which are clearly stated and agreed upon, and allow people flexibility in working toward goals in ways that they help determine are best for the organization. HP people should personally accept responsibility and be encouraged to upgrade their skills and capabilities through ongoing training and development. This is especially important in a technical business where the rate of progress is rapid and where people are expected to adapt to change.
