After reading the 10
most-hated companies in America in MarketWatch a couple days ago
another company totally entrenched in culture stood out – that being HP.
Way back in the olden days, I
worked in the marketing department of an HP competitor. At the time, Tektronix was the largest employer
in the state of Oregon. Like HP, Tek had a story of a couple founders, of which
legend – and cultural identity – was formed. The company grew and eventually
moved to a beautiful campus on 313 acres, a stone’s throw from what is now the
Nike World Headquarters.
Tek had a very strong and
friendly culture (the company of first names) that moved in a methodical,
deliberate fashion. As I was frequently told, ‘that’s the way we do things
here.’ My boss told me that we didn’t rush projects through – they had to go
into the ‘queue’ first. It seemed contrary to what marketing should be.
I was young then, saw areas I
wanted to improve upon, and wanted to make everything happen – fast. I learned quickly how a strong
culture defined process. And that it could effectively stifle improvements – no
matter how small they may be.
But at that time, profits were
great, Tek was global, and who needed change? But technology was evolving
quickly. Driven by the desire for growth, they started acquiring companies that
appeared promising, but in hind-sight, were at the end of their lifecycle. It
seemed to me that once they made an acquisition, something more revolutionary
replaced it – immediately.
Sound familiar?
Perhaps they forgot who they
were (unglamorous, but excellent products) and were fighting to stay relevant. But buying safety seemed…well,
safe. And maybe, culturally, they weren’t up to cutting-edge technology. The ‘Silicon
Forest’ is full of successful companies spun from ex-Tek employee’s talents.
Tek eventually got out of those
businesses and went back to their core – test and measurement equipment. Tek
was acquired by another company in 2007. Makes me sad because they made the Northwest a tech haven.
One area where Tek was
light-years ahead was benefits – for
women. Imagine that. In the ‘70’s they offered paid maternity benefits
– plus held the employee’s position open. We had our babies, had excellent
health plans, got paid during maternity leave, and got our jobs back.
Methodical company, and they took care of their employees. Forty years later
and we’re still fighting for this as a norm? Oy.
HP and Invent.
HP is big on re-Invent-ion.
They’ve made some huge misguided acquisitions. They buy ready-to-wear and hope
it makes them the hit of the prom. One has to wonder if it’s culture that keeps them looking outward
for innovation. Because certainly, they cannot change from within.
I’ll bet that if they asked
their thousands of engineers, there would be an ocean of ideas. The talent pool in HP could rival PARC (gasp or maybe
Apple?). It’s hard to innovate when you’ve been culturally driven to comply.
The founding families have a lot
to say about all things HP, and just don’t seem to get leading edge technology…That is the problem. Culturally,
leading edge is scary. But they want it.
So, to get cool stuff, they hire
someone, from outside the company
(telling isn’t it?) and send them out to innovate – grow the business – because
they are always on the Most Hated List.
New CEOs trying to be
innovative, stay in the safe-zone and instead buy stuff that has out-lived its lifecycle,
but may still have a little profit left, and then pay top dollar. Or are duped
into buying truly worthless crap. And then take and $8.8 billion hit. Who makes
that kind of mistake? If their books are showing a remarkable profit, then it
must be safe – right?
HP’s Invent campaign was powerful – they hired a woman (gasp) CEO – and
put her in front of the garage in an ad. A new company, a new way, a new bunch
of crap. Just because you say it doesn’t make it so. Ask your culturally
entrenched board.
At the end of the day, the CEO, Carly Fiorina, was fired (another hired/fired/so on) and they went about business the way the
culturally stagnant board dictated. The old way. The HP way.
It’s just plain sad. Because this involves people’s livelihoods. Stockholders don’t live on their dividends (if
there are any), if your stock goes down, or you are the Most Hated, they sell. But
your employees do depend on you and are relying on your execs to make good decisions.
I have worked in several large
corporations. Just a worker who actually cared about her job and the company
she worked for.
I have had the privilege to have
colleagues who soldered circuit boards, cleaned new cars at the end of the
assembly line, and spent hours sending ads out via FedEx – and they loved their jobs. They had pride in
their work and shook their heads daily when they heard about the latest hair-brained
things the C-suite was doing.
It isn’t what I believe to be
true, but the Absolute Truth when I tell
you to, ‘ask the people doing the work.’ They will tell you exactly what needs
to be done to make your company better. And much more profitably - they know your product really, really well.
And don’t give me any of that
crap about your awesome culture. It’s killing innovation.