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Volume 6, #4____________________________________________________________________
June, 1987
In Memoriams General
Georges F. Doriot
Digital Sponsors New
Science Series For Television
Business Protocol
— Being Sensitive To Customer Needs by Jack Shields,
senior vice president
Digital Awarded Two
Major U.S. Government Contracts
New Purchasing
Procedures In Effect
Medical Review
Expands To Cover All John Hancock Plan Members
General Georges Doriot, who, in 1957 as head of
American Research and Development Corp., provided the investment
capital to start Digital, died on June 2, at the age of 87. He had
served as a member of Digital's Board of Directors since 1972.
"His goal was to nurture, encourage and help
businesses," observes Ken Olsen, president. "This is quite
contrary to most risk capital organizÂations. The General was
patient with companies when they were not doing well, and when
they were doing well, not selling short to turn a quick prof i t.
"His influence on Digital was quiet, cautious,
often indirect, but very effective. He defined 'excellence' as 'a
degree of gratefulness, a compliÂment to somebody who is hard up
and needs help, another minute given to your work, another idea
applied to your product, a help to your superior. Excellence is
that tiny quantity which can do so much.'
"To the General, excellence included
sensitivity and graciousness to others. In the workplace it
included a sense of responsibility to the entire organ- i zation.
"His thinking and Digital's history and values
are intertwined."
General Doriot grew up in France and came to
the United States in 1921 to attend the Harvard Business School.
There he became assistant dean, assoÂciate professor and
eventually professor of Industrial Management. In World War II he
rose to the rank of brigadier general in the U.S. Army, serving as
director of military planning for the Quartermaster Corps and
deputy direcÂtor of research and development for the War
Department general staff. After the war, he returned to teaching
and also became head of American Research and Development Corp., a
venture capital firm that helped start some 150 companies,
including Digital.
For 35 years, up until his retirement in 1966,
he taught a course entitled "Manufacturing," that was intended to
imbue students with his ideals of how a business person should
behave. Almost 7,000 students took his course. "The top and middle
ranks of U.S. industrial leadership todav include many whom Doriot
helped get what he calls a 'running start,'" noted Fortune
Magazine in March 1979.
Digital and WQED, a public television station
in Pittsburgh, Penna., have joined in a multi-million-dollar
project to bring a high-quality scientific series -- "The Infinite
Voyage" — to both public and commercial television in the U.S.
The concept behind the series is discovery —
looking at how today's science is leading to new areas of
knowledge. "Perceptions," the first show, to be aired the last
week in October, will look at some of the tools that science is
using to make its discoveries.
The 12-part, three-year series will be produced
by WQED in association with the National Academy of Sciences. It
will capture the adventure of today's age of scientific discovery,
taking viewers on journeys to the limits of space, the depths of
the sea, and the interior of the human body.
"The Infinite Voyage" will be shot throughout
the world, using location footage, computer animation, and special
visual effects to tell the stories « behind new ideas and
technology, scientific revolutions and discoveries. A panel of
experts from the National Academy of Sciences will provide input
and ensure that the program is historically and scientifically
accurate. The producers previously did such shows as "Cosmos,"
"Planet Earth" and National Geographic specials.
"While our print advertising has been very
consistent, print is limited in the number of people in our target
audience we can reach," explains Henry Heisler, Corporate
Advertising manager. "To get more exposure to this audience,
Digital was looking for quality television programming, consistent
with its philosophy and style, that could serve as an appropriate
context for its messages. The Infinite Voyage should provide that
quality context."
This is the first time that a Public
Broadcasting Service station will create a major series for
release to both PBS stations and a select group of commercial
stations in major metropolitan areas. Involved in the project from
the very beginning, Digital is "underwriting the production" —
coverÂing the production costs so the programs can be created.
"This is an imaginative approach to television
programming and corporate sponsorship," said Win Hindle, senior
vice president. "This new series will result in an exciting run of
PBS-quality programming on commercial televiÂsion, and a uniquely
high-quality environment for Digital to reach its critical
audience. It creates an entirely new way for private organizations
to fund public television.
"Public television in the U.S. is well targeted
at a top management audiÂence, but only allows an "underwriting
credit," no commercials. Using commercial television as well, will
make it possible to run messages with the program in important
geographic areas. The commercial messages will focus on
networking, service and community involvement.
As a company we have made tremendous progress
over the past several years in presenting ourselves to the world
at large and to individual customers. Our image in the marketplace
has often been enhanced by the professionalism of our people who
deal freguently with customers. Now we need to apply a
consistently high standard on all occasions when we host business
visitors.
Because of our current image and strength in
the marketplace, business protocol is becoming increasingly
important. By protocol, I mean everything that has to do with
customer relations, including how we treat visitors and how we
handle people on the telephone. Protocol often means plain common
sense, good manners and deference to those we wish to serve.
Often, it refers to the careful planning and execution of a
customer visit.
Planning in detail for every customer visit to
a Digital event has to be done in advance. It must start with a
clear understanding of the visitors' specific objectives and
expectations. These expectations must be shared with other
appropriate Digital people who have a role in the visit. Once the
detailed agenda has been finalized, commitments must be kept. A
broken commitment for participation is a serious breach of
etiquette.
The correct handling of the logistics
surrounding a customer visit is critical to the success of the
overall event. This includes smooth handling of all arrangements,
such as transportation, accommodations, schedules, visitors'
badges and escorts for non-public areas, clear communications on
arrangements prior to the visit (including a clear list of the
people and titles) and arrangements for food (being sensitive to
customer preference). Poor handling of these issues is probably
the easiest way to create inconÂvenience and frustration that may
overwhelm the other positive activities that our guests
experience.
One topic deserves extra attention. When our
guests are introduced, you should always be very clear about their
name and title, and, likewise, the names and titles of the Digital
people involved. If introductions are fumbled, it creates the
impression that we are not very clear about what the person does;
and that is very unprofessional.
Planning the logistics of a customer visit
often involves several groups, dealing with transportation,
catering, etc. Responsibility must be clearly defined and
understood.
Detailed planning for a customer visit must be
done with the same sensiÂtivity and awareness that the visitor
will have during the visit. Put yourself in the role of the
visitor — before the visit. For instance, be sensitive to the use
of products made by the customer's competitor (e.g., the beverage
you serve when someone from a beverage company visits).
We should always respect our visitors' need for
privacy. For instance, it is unwise to host two competing
companies on the same day.
At the end of a visit, we want our customers
and guests to go away with the business information on our
products and solutions that they need and a very positive
impression of Digital. They should not be distracted by an issue
they perceive is a discourtesy while they are in our care.
Since our Sales and Account managers are the
primary contact with customers, it is their responsibility to make
sure that we exercise appropriate busiÂness protocol. But everyone
at Digital should be aware of and sensitive to these issues and
help to make customer visits and all other customer conÂtacts as
positive as possible.
To be held in Boston, Mass., September 8-18,
DECWORLD '87 is being designed as an educational experience for
the senior management of all of Digital's strategic accounts.
Worldwide in scope, DECWORLD '87 will be set up to accommodate a
large number of simultaneous customer visits. It is not a trade
show, and attendance will be by invitation only.
The DECWORLD ’87 message is: "Your competitive
advantage is 'the network at work,’ integrating your enterprise —
business organization, departments, people & work groups —
with the best service, best integrated applications, best systems
and best networks." Digital has it now, and here it is.
Each Marketing group is developing extensions
of this message for their theme material. The standard program
consists of sessions (9 AM to 4 PM), displays (10 AM to 6 PM) and
events for special audiences in the morning and evenings.
Attendees will plan their stays around
"industry tracks," roadmaps to assure they receive the messages
that are most important for them, and, also allow time to explore
peripheral interests. Each track covers two days and includes
special display tours for strategic accounts. There are defined
tracks for every industry for which Digital has an active
marketing group.
A CEO track, for chief executive officers and
presidents only, will include a special half-day session, a
special tour, and evening hospitality with dinner.
The two-day cycle will include about 100
sessions, all held in the World Trade Center and on two ships (the
Queen Elizabeth II and the Oceanic). About 20 sessions will run
consecutively in five hourly time slots.
The exhibit (about 350 displays) will be
divided into three functional areas:
o Field Office and Theatre — reception and
orientation point),
o Digital Difference Area — a display showing
Digital's technology and how Digital uses its own products, and
o Industry Areas — displays showing complete
solutions in simulated industry environments.
The exhibits will be integrated and networked
as though the floor were a worldwide conglomerate. The
headquarters will be in the Digital Difference Area, and each
industry area will represent an operating company of the
conglomerate.
A major program to prepare the Field for
DECWORLD is in development. The Sales tools will include video and
audio tapes, a program preview for use with clients, and a
how-to-call-on-executives sales guide.
The total capacity of DECWORLD '87 is limited
by hotel rooms to 36,000 clients. Plans call for sales
representatives to accompany their customers.
Digital was recently awarded a contract with a
potential value of $114 million to supply the U.S. Air Force with
computer systems for research and development of air defense
systems. This was just ten days after Digital won an $80 million
contract, to supply VAX computer systems to the Bureau of the
Census, U.S. Department of Commerce.
Under terms of the Scientific and Engineering
Worksystems (SEWS) program award, Digital will supply the Air
Force with VAX 8650, MicroVAX II and MicroVAX II/GPX computer
systems, field service, software service and training. These
systems will be used to generate three-dimensional graphics for
research, design and simulation of sophisticated air defense
systems, and will be deployed at U.S. Air Force installations
throughout the world.
The systems sold to the Bureau of the Census
will be used in the 1990 Census and also for the 1987 Economic and
Agricultural Census, statistical analyÂsis, and development of a
geographic data base. Under terms of the six-year contract,
Digital will provide VAX 8000 series and MicroVAX II computer
systems; training, field service and software, including data
bases, langÂuages and applications software. When installation is
complete, the Census Bureau will have VAX 8000 computer systems in
its headquarters in Suitland, Maryland, and in its field offices,
and will deploy 450 MicroVAX Ils in district offices across the
country.
Over the last few years, Purchasing at Digital
has grown to almost $3 billion per year, and the old methods for
managing and controlling this business required major updating. A
completely revised Purchasing Policy and Procedures Manual,
released to Purchasing professionals in February, provides the
foundation necessary for effective internal controls and will be
the basis for internal audits.
People who often deal with the Purchasing
organization should take the time to read the sections applicable
to their activities. To obtain a copy, contact: Alan Keiran at at
DTN 234-4881, (617) 351-4881, by VAXMAIL at NRPUR::KEIRAN, or by
DECMAIL @NRO.
Alan Fink has joined the Basic
Industries Marketing group as Automotive Industry Marketing
manager, reporting to Jerry Paxton, vice president, Discrete
Industry Marketing. Al joins Digital from the Allen-Bradley Co. in
Detroit, where he was account manager for General Motors,
Chevrolet-Pontiac- GM of Canada Division. He holds a bachelor's
degree in computer science from Ohio State University in Columbus,
and an M.B.A. from Case Western Reserve University, Cleveland.
Jim Isaak has joined Digital as POSIX*
Strategy Director in the Systems Software Group in Merrimack, NH,
reporting to Paul Metz, acting Ultrix Base Product Marketing
manager. He will be primarily responsible for POSIX standards
issues. POSIX (Portable Operating System Interface) is an IEEE
standard intended to provide for the portability of applications
between multiple vendor systems. Jim is the chairperson of the
IEEE working group which developed the 1003.1 POSIX standard for
an operating system environÂment based on UNIX** Operating System.
He is also the proposed convenor for the ISO working group dealing
with a POSIX-based operating system standard. Prior to joining
Digital, Jim was Director of Strategic Marketing at Charles River
Data. He holds an MSEE Computer Engineering degree from Stanford.
Francis Mecler has been named Corporate
Toxicologist, reporting to Jim Stewart, Corporate manager of
Industrial Hygiene and Toxicology. Frank will provide support
worldwide to Health and Safety personnel, managers, medical
personnel and Product Safety Groups. He joins Digital from
American CyanaÂmide Co., where he was the Occupational
Toxicologist for the Medical Group at the Pearl River site.
Previously, he worked in contract toxicology laboratories as a
study director, designing and conducting studies for a wide
variety of clients. He received his Master of Science and Doctor
of Science degrees in Toxicology from the Harvard School of Public
Health, Boston, Mass.
Linda Moore has joined the Product
Marketing Staff as manager for the Product Marketing Strategic
Programs Group, reporting to Peter Smith, vice president, Product
Marketing. She replaces Gary Eichhorn, who became LDP Group
manager in February, and Barry Nay, who has returned to Geneva
after temporarily assuming this role for the past three months.
Linda joined Digital in 1977. She has held
positions in operations manageÂment and strategic planning, and
has spent the last four years as the manager of the Earth
Resources Engineering Marketing Group. She has bacheÂlor's and
master's degrees from the University of Vermont.
Bob Nealon has been named manager of
U.S. Geographic Operations to Harvey Weiss, vice president, U.S.
Sales Operations and Systems Group. In this position, Bob will be
responsible for sales operations for Digital's end-user,
government and volume (OEM) customers, working in concert with the
area sales teams. Bob joined Digital in 1977 with the Laboratory
Data Products group, where he was F&A manager and marketing
manager. Most recently, he managed U.S. End-User Operations. Prior
to joining Digital, Bob held positions at Sanders and General
Electric. He holds a bachelor's degree and an M.B.A. from Boston
College.
John 0'Keefe has been appointed Indirect
Channels Group (ICG) manager, reporting to Jack MacKeen, vice
president, Channels Marketing. John reÂplaces Jim Willis, who has
moved to Applications Marketing with responsiÂbility for sales,
marketing and distribution systems, reporting to Henry Ancona.
John has spent the past two years managing the implementation of
the Area Marketing function, first established when the Channels
Marketing Group was created.
Gerry Olsen has been named Corporate
Purchasing controller, reporting to Ron Payne, Corporate
Purchasing manager, and Harry McKnight, Corporate OperaÂtions
controller. Gerry joined Digital in 1980. Most recently, he had
been Finance manager for Corporate Litigation issues. His
background also includes senior financial management positions
with Raytheon and General Electric. Gerry is a graduate of Boston
College and holds an M.B.A. from Boston University.
John Perry has been appointed European
VLSI manager, reporting to Dick Esten, European Group
Manufacturing manager, and Bill Robinette, SemiÂconductor
Manufacturing and Technology Group manager. John will be
responÂsible for establishing a VLSI organization in Europe which
integrates European requirements in all aspects of semiconductor
operations. His initial project is to establish Digital's
Edinburgh site as a state-of-the- art wafer fabrication facility.
He will also integrate other semiconductor activities within
Europe to ensure an overall cost effective organization. John has
most recently served as Semiconductor Manufacturing Operations
manager in Hudson, Mass.
Kathy Robbins has been named JEC
Implementation manager, reporting to Harvey Jones, manager,
Corporate Compensation and Benefits. She is responsible for
working with Personnel and line organizations to implement the Job
EvaluaÂtion and Classification (JEC) system which is currently
under development. Kathy joined Digital in 1974 and has held
Personnel and line positions in Manufacturing, the Field,
Marketing and Engineering. She holds a bachelor's degree in
political science and a master's degree in public administration
from the University of Iowa and has attended the Program for
Management Development at Harvard Business School.
* POSIX is a trademark of IEEE
** UNIX is a trademark of AT&T
As of July 1, 1987, Digital's John Hancock
Medical Plan members across the U.S. will be covered by the
Medical Review program, which has been phased in over a period of
three years. Nearly 76% of the plan members have been subject to
Medical Review since the program began in 1984.
In June, a brochure about Medical Review was
sent to each plan member at home. It introduces the program to
those not now covered and reminds those who are covered. The
brochure also announces recent changes that make it easier than
ever to initiate Medical Review and to get a referral for a second
surgical opinion.
How
Managers Can Help
It's the responsibility of each employee to
ensure that he or she initiates Medical Review when necessary.
But, in some cases, managers could play a helpful role.
One opportunity is when an employee informs the
manager that he or she must go into the hospital or has been
admitted in an emergency. The manager should ask if the employee
is a John Hancock Medical Plan member and, if so, whether he or
she has initiated Medical Review. A manager also can help if an
employee mentions surgery. The manager might remind the employee
that John Hancock's referral service can help find an independent
doctor who will provide a second surgical opinion.
Primarily, managers can help by understanding
the Medical Review program well enough to answer employees'
guestions not only about the procedures, but also about the
reasons the company uses Medical Review.
Advantages
of Medical Review
When employees use Medical Review, they are
enlisting an objective medical agency to help them ask the hard
questions when their doctors advise a hospital stay or surgery.
Questions like, "Do I have to go into the hospiÂtal?" "If I do,
when can I go home?" and "Is the operation really necesÂsary?"
Getting answers to these questions is what
Medical Review is all about. No one wants to be hospitalized if he
or she does not need to be. Most people would rather rest at home
than stay in the hospital longer than necessary. And all employees
are entitled to receive the maximum benefit that their medical
plan offers.
When employees follow Medical Review procedures
to certify their hospital stays, they will spend only the required
time in the hospital. When they get a second surgical opinion,
they may avoid unnecessary surgery or, if they have the surgery,
they'll have peace of mind knowing that there were no better
alternatives. In either case, they will also receive their maximum
medical benefit.
If employees do not follow Medical Review
procedures, they will owe 20% of the hospital room and board
charges for any days they spend in the hospital that are not
certified by the review agency as medically necessary. And if
employees do not get a second opinion for certain surgical
procedures, they will owe 30% of the surgical expenses.
Digital is making it easier for employees or
their family members to initiÂate Medical Review. They now need
only call the regular John Hancock Claims Office number: DTN
223-3300 from inside or 1 800 DEC-2060 from outside Digital. They
no longer need to complete any forms to initiate their Medical
Review. John Hancock will contact the proper review agency to get
the review moving.