Business Success 360

Examples

 

The Hewlett-Packard Way

Sustaining competitive advantage by managing critical opposites

Vadim Kotelnikov

Vadim Kotelnikov, founder of 1000ventures - personal logo  

Vadim Kotelnikov

  

  

 

Three Core Elements of the HP Way

 

Defining and Agreeing on the HP Values: providing the framework for setting corporate objectives and establishing standards for HP employees in dealing with their co-workers and customers.

Setting and Agreeing on the Objectives: getting everyone to agree on corporate objectives and to understand what the company is trying to achieve.

Employee Empowerment: turning everybody loose, so that people could move along in a common direction. 

  

 

 

Competitive Advantage

HP leaders have an advantage that enables them to learn and adjust faster and more effectively. HP top managers regularly discuss and assess the vitality of the HP Way, a process, that inevitably results in corrective actions to ensure its continued viability.

 

 

 

HP Values

HP values are the centerpiece of the Hewlett-Packard Way. "Hewlett-Packard's stated values are not uniquely different from most major companies. What makes the HP Way unique, though, is the seriousness with which values are treated as a management tool. They are not spread by sloganeering, but serve as criteria for daily decision-making and advancement. Brought to life as well as Hewlett-Packard does the HP Way, values based management lifts everyone above trivial concerns to focus on those that are truly important.

 

 

 

Integrating Critical Opposites

HP excelled in managing dualities and creating a delicate balance between individual creativity and teamwork.

To create an organization that could sustain its competitive advantage regardless of marketplace whims and what their competitors were building, HP founders based their corporate culture on the integration and reinforcement of critical opposites. This became known as the Hewlett-Packard Way. HP has  created an environment that both celebrates individualism and also wholly supportive of teamwork. Although HP people are taught to engage in cross-functional teams, they are also rated on the performance of decentralized business units and personal achievement.

HP corporate culture is based on respect for others, a sense of community, and hard work.

 

 

  

 

Developing Cross-functional Individuals

Hewlett-Packard (HP) breaks the walls between functions, creating a carrier network that begins with the recruitment of diverse people in terms of their skills and personality and then promotes horizontally, as well as vertically throughout the company. Typically, HP employees move through several functional areas in the course of their carriers. This creates broad knowledge of the company, expands corporate IQ, and fosters teamwork.

HP employees don't follow a pre-defined path to a particular post. When it comes time to promotion, managers don't look who is next down the carrier line, they look for the best people.