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Volume 7, #1
February, 1988
Teamwork
Needed
To Meet Future Customer Satisfaction Goals
Digital
Forms
AI Technology Center
Patent Applications
Triple In First Year Of New Program
Changes
In
U.S. Sales, Sales Operations And Government Marketing
Digital’s work force has been changing rapidly
due to the company’s continuing growth and evolving business, and
shifts in society as a whole. These changes call for increased
emphasis on our traditional values, greater flexibility in the
ways we attract and retain employees, and more management focus on
international, cross-cultural and cross-organizaÂtional issues.
For the past two years Digital has been hiring
an average of 100 people per day. Last year alone, 25,000 new
people were hired - at all levels, including upper and middle
management. This means there are increasing numbers of people who
have been in the comÂpany for a very short time. We have a major
task of making sure that these new people have a clear
understanding of Digital’s values, as well as their individual
responsibilÂities.
To acquire the people we need, Digital must be
viewed as a company that values its people; a company that is
flexible and tries to accommodate the changing needs of its
employees. Just as we need the best possible product to compete in
the world market, we need the best possible work environment to
attract and retain the people we need to make the company
successful.
Digital’s business is becoming more
service-oriented. At one time a large segment of Digital’s
employee population consisted of hourly employees in
manufacturing. Now, the manufacturing business is much less
labor-intensive, and the service business is expandÂing.
At the same time, the business is becoming more
capital-intensive. So to maximize our asset utilization, we’re
running equipment and processes 24 hours a day, seven days a week.
To keep the equipment running constantly, many facilities are
adopting innovative work schedules, including compressed work
weeks. For instance, some employees work four 10-hour days, or
three 12-hour days a week, or varying work schedules each day.
This represents an opportunity to meet the changing needs and
expectations of employees, many of whom are asking for greater
flexibility in their work schedules.
Flexibility in work schedules is also important
because people with highly-specialized skills - such as software
engineering - are becoming scarce. One way to deal with the
scarcity of people is to recruit part-time professionals - people
who prefer a reduced work week for family reasons or because of
outside interests. There is a pool of excepÂtionally high-quality
people that we can attract for individual part-time employment. In
other words, variable schedules and other arrangements can and
should be considered when they make good business sense.
Digital’s business is also becoming more
international. Next year, revenues from outside the U.S. may
exceed U.S. revenues for the first time in the company’s history.
Within two or three years, it is expected that Digital will have
as many people working in Europe as in Massachusetts. Already
today, 37% of the company’s people live and work outside the U.S.
Within five years, that may exceed 50%.
Increasingly, the success of one part of the
business depends on other activities beyond organizational and
national boundaries. International concerns will be important not
just to senior managers, but to middle managers as well. They will
have to learn other languages, to be sensitive to differences in
culture and custom, and to manage people in dispersed work groups.
More people are going to have to understand how the whole
enterÂprise works.
Digital is largely a company of "baby boomers"
— people born between 1946 and 1964. The median age of employees
in the U.S. is now 36. Over the next 10 years there will be fewer
and fewer young people coming into the company, because there will
be fewer of them availÂable for hire; so the median age should
rise. We must keep in mind that the motivations, health concerns
and benefit needs of people in their 40s and 50s are very
different from those in their 20s and 30s.
At the same time, more employees are
approaching retirement. In the company’s first 30 years, only 1000
people retired. It may take less than five years to reach 2000
retirees, even though many people are now remaining at work far
beyond the previous age of retireÂment, or are returning to work
after having once retired.
So we see an increasingly diverse work force —
in terms of age, nationality, work schedÂules, etc. — and, at the
same time, a greater need for all parts of the company to work
together. To continue to be successful as a company, we need to
adhere to our traditional people-oriented values, and to adapt our
management styles to changing business and emploÂyee realities.
(The following article consists of excerpts
from a speech Jack Shields delivered to DECathlon winners and sent
to sales representatives worldwide.)
The dictionary defines "arrogance" as a feeling
of superiority manifested in an overbearÂing manner or
presumptuous claims. "Complacency" is defined as self-satisfaction
accompanÂied by unawareness of actual dangers or deficiencies.
Some of our customers and consultants have been
quoted in the press as perceiving us to be arrogant and
complacent. We must change this perception quickly.
Before suggesting some ideas on how to change
these perceptions, let me acknowledge some of the conditions that
might lead customers to these conclusions. The world’s best
authÂorities (our customers) give us extremely high marks for
customer satisfaction, service quality, and the enthusiasm and
knowledge of our support team. We have listened well to our
customers over the years, which has resulted in an integrated
product set that meets their needs. Marketing programs designed to
leverage your sales activities have gained in stature and
professionalism over the years, allowing consultants to compare us
most favorÂably to IBM when they are with prospects.
But, let us also admit that it is exactly these
strengths, resulting in the great number of enthusiastic new hires
that we brought into our organization over the last several years,
coupled with the great many new customers that we have been able
to win over the past years, that increase the opportunity for
arrogance and complacency to set in.
Let us talk about some of the factors that can
lead customers to the perception that we are becoming complacent
and arrogant and how to avoid them.
o During this period of industry-leading
growth, it is clear that we have not spent as much time training
our many new sales reps and managers on the "Digital Style" of
dealing with customers as we should have. It is okay to say "I do
not know the ansÂwer," as long as you get back to the customer in
a prompt manner with the answer.
o It is not appropriate to disparage
competition. Frequently overheard comments about the inadequacy or
irrelevance of our larger competitors’ product set often offends
many customers and users of those products. We should be careful
to stress the advantages of our way of doing computing and never
the negatives of our competitors.
o We should remember that one of the cardinal
rules of a successful sales organization is to never argue with
the customer. The customer is always right. That is one of the
first rules for success. The second rule is: if you are in doubt
about whether the customer is right, assume they are.
o Pay attention to the experience factor of the
personnel you are calling on. For the first time ever, you are
calling on some people who have made nothing but IBM decisions for
decades. Be cautious that no matter how conservative and eloquent
your presenta tion, you are indeed challenging the prior decisions
of this management team. AcknowÂledge that they made the right
decision at the time. Propose Digital solutions that complement
their original decision. We are the only vendor that has
consistently, for many years, offered solutions that do not
require the obsoleting of existing investÂments either in our
equipment or our competition’s.
o Understanding the roles and measurements of
your teammates will allow you to become a much more effective
account manager and team leader. This is the kind of leadership
customers are looking for. They do not want to deal with eighteen
different Digital people to get a problem solved. When they have
to, it usually leaves them dissatisfied and feeling that we do not
care about solving their problem as much as our competitors do.
o Each of us continually needs improving. Just
because you are organized around an account within an industry
does not mean you should not have a firm grasp on the DigiÂtal
style of computing and what makes us unique. Lack of depth about
our product strengths can be perceived as glibness or complacency.
In addition to taking advantage of formal training programs, each
of you should develop your own personal plan for understanding
more about our products and services.
o Understand where your support resources are
and brief them thoroughly about what is going on in your account.
Remember that we are shifting the support resources from the
Headquarters area out to the Field in order to improve the access
to our customers. You will not find many more technical support
people in Headquarters than you did five years ago, yet the Sales
and Service organization has more than doubled over that time. It
is important that you begin using and growing a competent support
organization closer to your customers and exposing your customers
to the breadth and depth of local support.
In conclusion, continue your winning effort,
but be careful to steer clear of arrogance and complacency. These
factors, rather than our competition, are all that stand between
us and our goals. Each of you individually can make the difference
by increasing your sensitivity to these factors and by letting our
customers know through actions, not words, that they are the true
force behind our success.
To meet the challenge of delivering the
complex, tightly integrated, networked systems of the future,
Digital must do more to value and reward inter-organizational
collaboration. Product complexity demands more focus on the total
process — on total systems rather than point products. And product
success metrics must include all the costs of doing business -
from Engineering, Manufacturing and Services, concluded the
Corporate Process Task Force. These representatives from
Engineering, Manufacturing and the Field recently met to discuss
issues and strategies concerned with the process of moving from
concepts to products to customers.
They noted that customer expectations must be
clearly articulated in order to allow the
Engineering/Manufacturing/Field Service product development teams
to meet customer needs. Managers and integrators who deal with
cross-functional issues and who help diverse organÂizations work
together as a team must be developed and valued.
The task force proposed a number of technical
programs including:
o development of a Digital Process
Architecture, founded on a solidly formulated and maintained
Corporate Process Strategy, which supports hierarchical design
methodologies and technology independence;
o investment in an information management
system enabling the smooth seamless access of information about
our most complex products to Engineering, Manufacturing, and
Customer Services over the entire life cycle of those products;
o development of a "design for" program which
quantifies the tradeoffs on Digital’s total cost of doing business
(including design for testability, manufacturability/assembly,
quality, reliability, serviceability, cost competitiveness,
customer satisfaction and time to market);
o improvement of the discovery and resolution
of product problems with increased simulaÂtion, more effective
product testing and qualification processes, and definition of a
quick turnaround Engineering Change Order/Field Change Order
(ECO/FCO1 nrocess
"Each of Digital’s organizational components
has a different primary focus," the Task Force said in its report.
"Engineering focuses on product; Manufacturing focuses on process;
and Field Service focuses on problem solutions. We must all focus
on satisfying customer expectations to converge into one company
with one strategy.
"Digital must develop a measurement and reward
system that causes convergence, not diverÂgence among its many
organizations. Bridges must be built across autonomous
organizationÂal components." The task force recommended that
Engineering, Manufacturing and Service be involved in tradeoff
decisions in the early stages of product development.
For further information on the work of the
Corporate Process Task Force, contact Cathy Ward at DTN 223-9791
or (617) 493-9791.
An Artificial Intelligence (Al) Technology
Center has been formed to bring together a variety of Al efforts
from across the company. While working together and co-locating to
a new facility in Marlboro, Mass., these groups will continue to
be the Al focus for Manufacturing, Customer Service, Engineering
and Software Consulting, as well as ApplicaÂtion and Industry
Marketing groups. Over 400 people are now relocating to the new
facilÂity.
Scott Flaig, the manager of the new technology
center, reports to Bill (BJ) Johnson, vice president, Distributed
Systems. He was most recently Group Manufacturing manager for
Distributed Systems.
The center includes five main groups. The
Intelligent Systems Technologies Group, managed by Dennis
O’Connor, develops Al applications primarily for Digital’s
internal use in ManuÂfacturing. They are responsible for such
applications as XCON and XSEL. The Artificial Intelligence
Applications Group, managed by Neil Pundit, develops tools and
applications for Field Service. The Artificial Intelligence
Technology Group, managed by Norma Abel, develops products for
sale to customers. Her
group includes AI professionals located in Valbonne, France, as well
as in Massachusetts. Al Software Consulting, managed by Jim Fong,
provides Al support directly to customers and links up with AI
specialists in the Sales organization. In addition to those moving
to the new facility, the AI Software Consulting group includes software engineers located in
Palo Alto, California. The AI Marketing group, managed by Jack
Rahaim, has the worldwide responsibility for marketing strategy
and related programs, third-party relationships and serving as a
shared resource for the various product and industry marketing
groups.
A small Al research group that is part of
Corporate Research also will be moving to the new facility. That
group maintains close ties with university-based research projects
throughout the world.
In addition, the new technology center will
stay in close touch with related Al activities elsewhere in
Digital, including Europe and Japan.
"Digital is a leader in Al — with good
products, relationships with the major universiÂties involved in
research in Al, and relationships with key third parties involved
in Al software development," explains Scott. "We’ve made good use
of internal Al applications to keep our competitive edge in
Manufacturing and Service, and elsewhere across the comÂpany.
"At Digital, Al is not just a simple product or
set of products. Rather, our strategy has been to integrate Al
efforts with the company’s overall VAX-based networking strategy.
This optimizes the impact of Al on the company’s overall business,
but it also makes it difficult to measure that impact. The new Al
Technology Center should give Digital’s Al efforts greater
visibility, both inside and outside the company.
"We will continue to provide the services that
each of the individual groups were set up for, serving the needs
for Al applications in Manufacturing, Engineering and Services.
We’ll also work together as a single business and develop product
strategies to improve Digital’s position in the marketplace, and
we’ll influence the use of Al by Digital’s various design groups
so that we can optimize Digital’s business advantage in this
technoÂlogy.
"In terms of products, we want to sell tools
that third-party vendors can use to create turnkey applications.
These are tools that have been developed from our experience in
building and using internal applications. We will also provide
services and develop customized solutions for individual
customers."
A dramatic increase in the number of Digital’s
patent applications has resulted from a program initiated a year
ago to ensure that inventions and innovative ideas are recognized
and adequately protected.
In the past, a single committee reviewed all
technical innovations to determine patent priorities for the
entire company. As Digital grew and the competitive environment
changÂed, it became clear that more attention must be focused on
building and strengthening the company’s total portfolio of
patents. As a result, the Patent Program was decentralized, each
of the engineering groups established its own review committee,
and some groups have hired "patent engineers," who, among other
duties, serve as liaisons to the Law DepartÂment.
The new Patent Program provides support to
design engineers to assist them in identifying the inventions and
in drafting disclosures. The Program also provides incentives.
The patent disclosure is presented to the
respective organization’s review committee for approval to file
for a patent. Once approved, the information is forwarded to the
Law Department for submission to the U.S. Patent Office and other
patent offices, as approÂpriate. Typically, it takes two to three
years for a patent to be issued, but the act of application
provides protection for the innovation in the interim. In
addition, the application is held in secrecy by the Patent Office
until it issues as a patent.
The
Patent Program also includes an incentive program as part of the
effort to give high recognition to individuals who create
patentable innovations, and to encourage them to go through
the effort involved in the application process. The engineers
responsible for an innovation receive cash awards when Digital
applies for a patent and also when the patent is actually awarded.
Engineers with 10 and 20 applications and 5, 10, 15 and 20 issued
patents receive additional awards.
In the first year of the program, Digital filed
more than three times as many patents in the U.S. as the year
before. And plans call for filing twice as many as that this year.
In just two years, the company will have filed for more patents
than it did in its first 30 years of existence. The result will be
a powerful portfolio of patents that protects Digital’s
investments in technical development and discourages infringement
from competiÂtors.
This patent program is now in effect in the
U.S., and the company is studying how to implement it elsewhere in
the world.
The U.S. Federal Government market has been
growing rapidly in both dollar volume and complexity. To ensure
Digital’s continued success in this area, Harvey Weiss, vice
presiÂdent, U.S. Sales Operations and Government Systems Group,
will place increased focus on the special requirements and needs
of this market. At the same time, the U.S. Sales organization is
realigning to take on expanded responsibilities.
In the past, Sales was responsible for "certs"
(approved or certified orders) and Sales Operations was
responsible for "revenue" (the money actually received from
customers, which reflects discounts, allowances and contracts) and
"margin" (the revenue minus the costs). Over the next six months,
Sales will take on responsibility for both revenue and margin. In
the interim, Harvey will continue to have these responsibilities
and will work closely with Chick Shue, vice president, U.S. Sales,
to assure a smooth transition.
Harvey continues to manage the Peripherals and
Supplies Group, under John Alexanderson, and the worldwide Product
Operations Group under Mark Roberts. He will also chair the
Worldwide Field Manufacturing Management Committee (WWFMMC), as
the worldwide linkage to Manufacturing Operations.
Bob Nealon, manager, Geographic Sales
Operations, who had reported to Harvey, now reports to Chick. In
this role, he will continue to provide direct support to the Sales
organizaÂtion regarding discounts, allowances and contracts. Bob
will also chair the U.S. Field Manufacturing Management Committee
(USFMMC) as the U.S. link into Manufacturing OperaÂtions.
In addition, Ray Wood, formerly vice president,
Mid-Atlantic Area, has been named vice president, U.S. Sales
Areas, reporting to Chick. In this position, he will manage the
nine U.S. Area Sales vice presidents and co-manage (with Bill
Ferry) the U.S. Sales SuppÂort Manager, Dave Salmi.
Business Operations, managed by John Buckley,
now reports to Mike Kalagher, manager, U.S. Administration.
An AIDS Program Office has been formed in
Corporate Employee Relations to coordinate Digital’s multi-faceted
responses to AIDS (Acquired Immune Deficiency Syndrome), including
an extensive education effort. Over time, this office will serve
as a model for approaÂches to other important Employee Relations
issues.
Paul Ross, the new manager of the AIDS Program
Office, was formerly Personnel Service Delivery manager for the
Northeast Area in the U.S. He has been with Digital for nine
years, serving in a variety of roles, including line management,
training and development, and project management. He is located in
West Concord (CFO2), and can be reached at DTN 251-1418 or (617)
264-1418.
The second episode of Digital’s Infinite Voyage
series aired January 6 and 11 on public and commercial television
stations in the U.S. Entitled "To the Edge of the Earth", it takes
viewers to volcanoes erupting on the ocean floor, jungles where
exotic life forms thrive, and oases in the cold arctic desert
where animals seek refuge. The three-year, 12-episode series looks
at how today’s science is leading to new areas of knowledge. The
third episode will air April 6 and 11. (Consult local television
listings for channel and time).
Response to the series has been very positive.
The National Education Association recomÂmends it to all member
teachers, and related lectures are scheduled for major U.S.
univerÂsities in the coming months.
Dallas Kirk has been named manager of
the Public Relations function, reporting to Win Hindle, senior
vice president. Dallas began his career with Digital in 1970 as a
Sales representative in Pittsburgh. From 1972 to 1976, he was
employed in Sales management in Indianapolis and in Dayton. From
1976 through 1987, he worked in various Marketing groups,
including Industrial Products, the Telecommunications Industry
Group and Electronics Industry Marketing. In his latest
assignment, Dallas managed the most successful public relations
event in Digital’s history - DECWORLD ’87.
Jim Myers has been appointed Southern
Area Administration manager, reporting to Mike Kalagher, U.S.
Administration manager. His responsibilities will include
information systems, mail/voice communication, purchasing,
security, facilities planning, and acquisiÂtion and management of
cross-functional customer and internal administrative services.
Jim will be a member of the U.S. Administration and Southern Area
Teams. Jim joined Digital in 1979 as the Operations manager in the
Boston Plant. He progressed through various management positions
in Manufacturing, CSSE (Customer Service Systems EngineerÂing),
and Field Service Logistics. His last two assignments were as
Plant manager for the Wilmington Plant and as Operations manager
for Customer Administrative Services HeadquarÂters.
Tony Picardi has accepted the position
of Human Resources Planning (HRP) manager for MEM, reporting to
Dick Farrahar, manager, MEM Personnel. Tony will also be the
Personnel manager for members of the Product Central Staff,
specifically, Henry Crouse, Jim Cudmore and Bill Strecker. As HRP
Manager, he will also be responsible for the Strategic EmployÂment
Group under Russ Johnson and the Executive Recruiting and College
Relations staffs. Most recently he was group Personnel manager,
Mid-Range Systems Engineering, and until there is a replacement
for him there, he will continue those responsibilities as well as
begin work in his new assignment.
Art Williams has accepted the position
of group manager for VAX Workstations, reporting to Dom LaCava,
group manager, Low End Systems. Art has been the group’s acting
manager. He has been with Digital for over 15 years. During this
time, he managed the Hardcopy Group; was the Hardware Development
manager for the PC350 and PC380 Professional Personal ComputÂers;
and most recently managed the Product Management, Continuation
Engineering and SysÂtems Evaluation for the Workstations Group.
Prior to joining Digital, he was the director of Engineering for
the Printer Division of Mohawk Data Sciences.