The HP Way: How Bill Hewlett and I Built Our Company
Hewlett-Packard (HP), co-founded by David Packard and Bill Hewlett in 1939, is one of the most iconic companies in Silicon Valley’s history. Starting in a humble garage in Palo Alto, HP grew into a global technology leader and set the gold standard for corporate culture and management practices. In The HP Way, David Packard shares the story of the company's founding, growth, and guiding principles that shaped its success. Written from the perspective of one of the most admired business leaders, the book offers rare insights into the philosophy and practices that helped HP thrive for decades.
The Founding of HP
- Packard recounts how he and Hewlett started HP with just $538 in capital, driven by a passion for engineering and problem-solving.
- The "HP garage" became a symbol of innovation and entrepreneurship, often referred to as the birthplace of Silicon Valley.
- Packard discusses early challenges, including developing their first product—a resistance-capacitance audio oscillator—which found success when Walt Disney Studios used it for the movie Fantasia.
The "HP Way" Philosophy
At the heart of the book is the "HP Way," a management philosophy that emphasizes:
- Decentralization: Packard advocates for empowering employees at all levels by delegating decision-making authority and responsibility.
- Management by Objectives (MBO): This system encourages employees to set clear goals and align their efforts with the company’s mission.
- Respect for Individuals: HP prioritized creating a supportive workplace where employees felt valued, fostering loyalty and innovation.
- Focus on Long-Term Success: Instead of prioritizing short-term gains, HP invested in research, development, and employee growth to ensure sustainable success.
Innovation and Growth
Packard describes HP’s relentless focus on innovation and customer-centricity. Some key strategies that fueled HP’s growth include:
- Customer Collaboration: HP worked closely with customers to understand their needs and tailor solutions accordingly.
- Employee Engagement: The company’s open-door policies, flexible work environments, and profit-sharing plans helped attract top talent and build a strong, motivated workforce.
- Global Expansion: Packard discusses HP’s calculated moves into international markets and its efforts to maintain its corporate culture across diverse regions.
Ethical Leadership and Social Responsibility
- Packard emphasizes the importance of integrity, honesty, and fairness in business practices.
- He also highlights HP’s commitment to giving back to society, investing in community projects, and advancing education and technology.
Conclusion
Packard’s storytelling offers valuable lessons not just for founders but for anyone seeking to build enduring organizations rooted in strong values. His emphasis on fostering innovation, empowering people, and maintaining ethical standards provides a timeless blueprint for success.
For readers inspired by The HP Way, other classics worth exploring include Built to Last by Jim Collins and Jerry I. Porras, which delves into the habits of visionary companies; Only the Paranoid Survive by Andrew S. Grove, offering strategies for navigating business challenges; and Creative Capital by Spencer E. Ante, a biography of George Doriot, the father of venture capital.