00:00:02another edition of modeling the masters
00:00:04today we’re going to talk about two of
00:00:05the most successful tech entrepreneurs
00:00:07of all time bill Hewlett and Dave
00:00:10Packard founders of the Hewlett Packard
00:00:12company Bill Hewlett and Dave Packard
00:00:18were University friends who graduated in
00:00:20electrical engineering from Stanford in
00:00:221935 eager to become entrepreneurs
00:00:24Packard and Hewlett established Hewlett
00:00:27Packard in 1939 in packets garage with
00:00:29all the startup money they could put
00:00:31together a grand total of five hundred
00:00:33and thirty-eight dollars
00:00:34they then tossed a coin to decide
00:00:36whether the company would be called
00:00:37hewlett-packard or Packard Hewlett
00:00:39together Hewlett and Packard created an
00:00:41audio oscillator it was in fact the
00:00:43first practical low-cost method of
00:00:45generating high-quality audio
00:00:46frequencies that were needed in a wide
00:00:48range of industries including defense
00:00:50and medicine hoping to make it seem like
00:00:52the company had been around for a while
00:00:54they named their product the 200a
00:00:56according to Hewlett we really didn’t
00:00:59know if this oscillator was any good we
00:01:01simply put one together that worked
00:01:02pretty well sent a letter out to
00:01:04universities and others got three or
00:01:05four orders and then tried it again
00:01:07one of those first orders was from Walt
00:01:10Disney Studios who wanted a toss letters
00:01:12for their upcoming movie Fantasia
00:01:1460 years after its founding
00:01:16hewlett-packard has developed a
00:01:18reputation for innovative and reliable
00:01:20products and in 2009 had revenues of a
00:01:22hundred and fifteen billion dollars
00:01:24making it one of the largest companies
00:01:26so the next question becomes how can you
00:01:29model the success of Hewlett Packard
00:01:31here are three action items that you can
00:01:33put to use in your business action item
00:01:36number one think about more than money
00:01:38Hewlett and Packard believe that a
00:01:40business had a purpose beyond just
00:01:41making money businesses had
00:01:43responsibilities to employees customers
00:01:45and a community at large it was a
00:01:47controversial viewpoint in the 1940s but
00:01:50many of the management practices that
00:01:51are now standard in many work
00:01:52environments were pioneered by Bill
00:01:54Hewlett and Dave Packard some of the
00:01:56initiatives they launched included
00:01:58worker bonuses based on productivity
00:02:00profit sharing plans flex time schedules
00:02:03company-wide health insurance pay cuts
00:02:06and Fridays off instead of layoffs and
00:02:08hard times
00:02:08addressing everybody in the company by
00:02:10the first name having an open-door
00:02:12policy
00:02:13creating a wall for environment to
00:02:15encourage teamwork and the flow of ideas
00:02:17as an entrepreneur you have to worry
00:02:19about making money and making enough to
00:02:22survive and then build a lasting company
00:02:24but don’t make making money your only
00:02:26priority remember to think about the
00:02:28people who work for you the people who
00:02:30buy from you and the rest of your
00:02:31community to make your business a force
00:02:33for good strangely enough when you focus
00:02:35on helping these people the money comes
00:02:37in on its own
00:02:40action item number to adopt a survival
00:02:42mentality the early days of a new
00:02:44business can be challenging you may not
00:02:46be selling the right product at the
00:02:47right service and you really hit the
00:02:49targets that you set for yourself this
00:02:51is where it’s crucial to adopt a
00:02:52survival mentality listen to your
00:02:54customers until you find the product or
00:02:56service that will really solve their
00:02:57problems and in turn help you build a
00:03:00lasting business when Bill Hewlett
00:03:02talked about the early days of Hewlett
00:03:03Packard he said we were just
00:03:05opportunistic we made a bowling alley
00:03:08four line indicator a clock drive for a
00:03:10telescope a thing to make your urinal
00:03:12flush automatically and a shock machine
00:03:15to make people lose weight we did
00:03:17anything to bring in a nickel the best
00:03:19way to build a business is around
00:03:21customers with problems who will pay you
00:03:23to solve them adopt a survival mentality
00:03:25like Hewlett and Packard and look for
00:03:27opportunities to help your customers in
00:03:29the midst of solving their problems
00:03:31you’ll find a business idea that you can
00:03:33build into a successful and enduring
00:03:35company
00:03:37action item number three make innovation
00:03:40a part of everything you do for
00:03:42businesses succeed today it needs to
00:03:43always be thinking about what’s next and
00:03:45how it can innovate if you can offer
00:03:47more innovative solution that your
00:03:49competitors don’t have yet it can be
00:03:51your chance to win new business and grow
00:03:53your company in the company’s early days
00:03:56Hewlett and Packard had one rule above
00:03:59all others the golden rule to encourage
00:04:01innovation no part bins or storerooms
00:04:04should ever be locked to outsiders this
00:04:06was mind boggling visited to the
00:04:09company’s headquarters would be shocked
00:04:10that millions of dollars worth of parts
00:04:12and equipment were lying around free for
00:04:15anybody to use and nobody ever suspected
00:04:17anyone else’s theft
00:04:18are you innovated enough with your
00:04:20business do you take time every week to
00:04:22think about ways to make your product or
00:04:24service better follow Hewlett and
00:04:26Packard lead and stay on the cutting
00:04:28edge of technology and your customers
00:04:30and pocketbook will thank you for it so
00:04:33remember think about more than money
00:04:35adopt a survival strategy and make
00:04:38innovation a part of everything you do I
00:04:40wanted to end today’s video with one of
00:04:42my favorite true stories about eula
00:04:44Packard Hewlett and Packard management
00:04:47style was so unique at the time that it
00:04:49was given a name the HP way and Bill’s
00:04:52words the HP way is a core ideology
00:04:54which includes a deep respect for the
00:04:56individual a dedication to affordable
00:04:59quality and reliability a commitment to
00:05:01community responsibility and the view
00:05:03that the company exists to make a
00:05:05technical contribution for the
00:05:07advancement and welfare of humanity here
00:05:09are the core beliefs of the HP way we
00:05:12have trust and respect for individuals
00:05:14we focus on a high level of achievement
00:05:16and contribution we conduct our business
00:05:18with uncompromising integrity we achieve
00:05:21our common objectives through teamwork
00:05:22and we encourage flexibility and
00:05:25innovation thank you for joining me for
00:05:28another edition of modern masters I
00:05:29would love to hear your thoughts and
00:05:31comments if you want to post something
00:05:32below and stay tuned for the next
00:05:34edition
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