Bill Hewlett, co-founder with David Packard of Hewlett-Packard, died January 12, 2001. As one of the preeminent entrepreneurs of the past century, it seems fitting to add his story to our "Entrepreneurs of Note" in honor of his accomplishments.
William Redington Hewlett was born May 20, 1913, in Ann Arbor, Mich. He moved to California at age 3, when his father, a physician, joined the faculty at Stanford Medical School. As a boy, Hewlett showed a keen interest in science, conducting many physics and chemistry experiments and demonstrations. In 1930, he enrolled at Stanford University.
Hewlett became friends with David Packard during their undergraduate days at Stanford. While at Stanford, both Hewlett and Packard were influenced strongly by the teaching of one of their professors, Frederick E. Terman, a pioneer in the field of radio engineering. At Terman's urging, the two young men explored starting an electronics company. On Jan. 1, 1939, they founded Hewlett-Packard Company. The company's first "plant" was a small garage in Palo Alto, and the initial capital amounted to $538. The legendary garage -- designated the birthplace of Silicon Valley -- is a California state historical landmark.
The graduate thesis Hewlett wrote while at Stanford -- which focused on practical applications for the new electrical-engineering technology of negative feedback -- became the basis for HP's first product, the audio oscillator. One of the young company's first orders was from Walt Disney Studios, which used eight of the products to develop the state-of-the-art soundtrack for the movie "Fantasia." Despite their lack of business experience, the two entrepreneurs realized a modest profit in their first year in business -- starting an unbroken string of 61 consecutive years in the black.
Hewlett-Packard Advertisement --
"Rules of the Garage: Believe you can change the world. Work quickly, keep the tools unlocked, work whenever. Know when to work alone and when to work together. Share - tools, ideas. Trust your colleagues. No politics. No bureaucracy. (These are ridiculous in a garage.) The customer defines a job well done. Radical ideas are not bad ideas. Invent different ways of working. Make a contribution every day. If it doesn't contribute, it doesn't leave the garage. Believe that together we can do anything."
Early on, Hewlett envisioned HP as a global company. In 1957, when the Treaty of Rome established the European common market, Hewlett saw opportunities for HP and led the company to expand its base of operations beyond the United States. In 1959, HP opened a plant in Boeblingen, Germany, the company's first manufacturing site outside of Palo Alto. That same year, the company established its European headquarters in Geneva.
HP made its initial stock offering to the public in 1957. Both Hewlett and Packard held sizable portions of HP common stock from then on. Subsequently, an employee stock-purchase plan was created that enabled HP workers to purchase shares in the company at a discount, keeping in line with the founders' desire to have employees share in the company's success.
While Hewlett is perhaps best remembered for his scientific expertise and Packard for his business acumen, either could have stepped into the other's shoes at HP, and often did. Their lifelong partnership was remarkable as much for the personal friendship they shared for more than 60 years as it was for their business success and their innovative approach to running a company.
The HP Way
Largely through Hewlett and Packard's shared personal vision, HP has come to be recognized worldwide for its excellence in personnel practices, business management, product quality and service. Its innovative employment and management techniques -- known as the "HP Way" -- are widely emulated in the business world today. HP also ranks among the world's most generous corporate philanthropists, reflecting the founders' enduring commitment to good corporate citizenship.
Hewlett believed that one of his greatest accomplishments was the people-oriented approach to management that he developed with Packard. Catastrophic medical coverage, flexible work hours, open offices, decentralized decision-making, management by objective and employee "coffee talks" are among the many policies and practices they instituted at HP. The HP Way has been adopted by many companies and serves as a legacy of the founders' influence.
"We did not want to run a hire-and-fire operation, but rather a company based on a loyal and dedicated work force," Hewlett once said. "We felt this work force should be able to share to some extent in the progress of the company." HP has had a cash profit-sharing plan for all employees since the company's start.
The HP Way: Organizational Values --
"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."
Hewlett resigned as president in 1977 and retired as chief executive officer in 1978. He then served as chairman of HP's executive committee until 1983, when he became vice chairman of the HP board of directors. In 1987, he was named director emeritus.
Throughout his HP career, Hewlett was a constant presence at HP Laboratories, often working side by side with the engineers at the company's research center. He was known for his uncanny ability to understand how new technologies could become successful products in the marketplace.
His contributions have made a difference in each of our lives, not only technologically, but in style of management. In his "Random Thoughts on Creativity" he shares his vision of what nourishes creativity, the spark of entrepreneurism. His leadership has opened the doors for entrepreneurs everywhere.
