Volume 9,
#3___________________________________________________________________
March, 1990
"MGMT MEMO" was written by Richard Seltzer in
Corporate Employee Communication for the Office of the
President. It was written for Digital’s managers and
supervisors to help them understand and communicate business
information to their employees. You can reach Richard at seltzer@seltzerbooks.com
Business
Outlook In The U.S. by Dave Grainger, vice
president, U.S. Sales & Service
Opportunities
In
Eastern Europe - Joint Venture In Hungary
U.S. Finance
Realigns To Support Account Focus by Steve Behrens,
manager, U.S. Finance
Worldwide
Environmental,
Health & Safety Policy Adopted
New Geography
Focus For Environmental Health And Safety Team
The Importance
Of Cooperative Research by Jack McCredie, manager,
External Research Program
Sales &
Distribution
Systems - New Product Marketing Group
‘Headcount
Equivalency’
To Be Used For FY91 Budget Planning
‘Engineers
Into
Education’ Program
GIA Creates
New Program Offices
Changes In The
VIPS Organization
Don Hunt
Assumes New
EIS
Manufacturing Position
Steve Bergeron
To Serve On National Quality Board
Enhancements
Made To U.S. Customer Services Organization
Perhaps the best characterization of
doing business in the 1990s is planning for and managing
change:
o Our
business is changing from three distinct components -
Systems, Enterprise Integration Services, and Customer
Sendees - to one integrated set of offerings requiring
streamlined decision making for our Sales Account
Managers.
o Technology
has advanced so rapidly that the demand is now for desktop
systems with full application and network support.
o Much of
our opportunity is in project business - which means that
our required skill sets are weighted heavily in the area
of systems consulting, project planning, and project
management.
o Alliances
involving solutions providers and distribution channels
are more critical than ever.
The key to
success in this environment is responsiveness. To become
more responsive, we have made major changes in our
operating style and in the organization: o We developed
and implemented a new plan that makes the account the
primary focus of our
business.
This is how we plan, budget, and invest.
o We created
an International Accounts Program Office to ensure global
competitive positioning on opportunities which transcend
U.S. boundaries.
o Through
the first Career Opportunity Days, we moved 350 people
from internal, indirect jobs to new careers in Sales and
Sales Support. Through Career Opportunity Days II, we
expect another 400 indirect people to accept new, direct
field careers.
o We’ve
reduced overhead positions at headquarters by nearly 600,
and that effort is continuing.
o We
implemented the Opportunity Investment Plan through which
we developed integrated account and unit plans, identified
significant incremental business, and introduced the
concept of Return On Responsibility (ROR).
o At DECtech
(Digital Consulting Conference for Manufacturers) recently
held in Phoenix, Arizona, our sales people and customers
consistently responded with enthusiasm to Digital's
ability to provide total solutions to meet their
particular needs. We will continue to focus on integrated
solutions and the benefits of working together.
o Plans are
underway for DECworld ’90, to which we will invite
business and Information Systems executives to come
together to see "Information Technology at Work." This
event is scheduled in Boston, July 9-August 1, at the
World Trade Center.
o We
increased our U.S. training budget by some 60% to
strengthen our investment in building competency. Summer
Session and DU:IT are two examples of these training
initiatives.
o The
following additional 3-day training programs are being
offered for Sales and Sales Support people:
Discrete
Industry Manufacturing Enterprise (DIME), Irvine, CA,
February 27-March 1; Process Industry, Atlanta, GA — April
23-26 for Customer Package Goods, Oil & Gas, and
Metals & Glass, and April 30-May 3 for Chemical,
Pharmaceutical, and Forest; Discrete Industry Solution
Systems Training, May 7-10, Boston, MA, May 14-17, Los
Angeles, CA, and May 21-24, Detroit, MI.
The following are a few examples of
new key wins for the Company:
o Dow
Chemical recently chose Digital Equipment as a key
business partner for a global project that will involve
building a standard hardware platform and an applications
software system to serve as an intelligent front-end to
their proprietary process control system. This project is
critical to all of Dow's process manufacturing worldwide
and is the first time they have chosen to involve an
outside company in a project so central to their company.
To win this
project our strategy centered on showing Dow that we could
be an extension of their own organization and that Digital
had the right resources to combine hardware design,
applications development, and systems integration to
assure success. A team was built consisting of Sales,
Software, Computer Special Systems (CSS), and Customer
Services resources, along with senior Digital management,
to reinforce our position as a key provider of Enterprise
Integration Services.
o Digital’s
ALL-IN-1 proposal to Long Island Lighting Company (LILCO)
has been accepted, ending a long and hard-fought battle
with IBM and OfficeVision. This represents the first major
project for Digital at LILCO and opens the door to many
other application opportunities.
o A recent
sale to the marketing department of Quaker Oats represents
the first Digital win at Quaker outside of its
manufacturing plants. This follows the pattern
established at MARS, Tropicana, and other accounts in
which critical problems in sales and marketing have opened
the door for Digital to move in on IBM territory.
The sale was
skewed towards services and mirrors a trend in this market
of the customers desire for solutions vs "boxes and
tools."
These wins
represent new opportunities for Digital. We need to learn
from these experiences so that we can replicate these
solutions as new opportunities approach.
We are
making progress. It is often arduous. And the new
challenges spring up faster than we ever believed
possible. But there is no company better positioned for
success.
On Feb. 9,
Manufacturing began a series of meetings intended to
provide information about what is going on in the business
as a whole so people can make informed decisions in their
particular jobs.
"People need
to hear about business conditions," explains Bill Hanson,
vice president, Manufacturing Operations. "Give them
information, and they'll do the right things."
"Times are
changing and we need to know how well we are doing and
where we should put emphasis so we can be more supportive
of one another’s efforts and of the company’s overall
business objectives," adds Linda StClair, group Personnel
manager, Manufacturing. "If we are restricted to our own
little pieces of the business, we miss the opportunity to
work as part of a total integrated enterprise. We need the
sense of totality."
The first
part of each of these meetings deals with business data.
The rest will consist of "feature" presentations on timely
topics relating to how Digital is realizing its
manufacturing visions:
o developing the best people in the
industry,
o products that never fail,
o shortest cycle time in the
industry,
o lead in defining competitive
manufacturing, and
o competitiveness independent of
volume.
Meetings
will be held the second and fourth Friday of each fiscal
month (March 9, 23, April 13, 27, etc.) at 8-9 A.M. in the
General Doriot Conference Room at the Mill in Maynard,
Mass. All employees are welcome. Plans include
broadcasting future meetings using the Digital Video
Network (DVN) once the appropriate links are in place.
"The
dramatic changes taking place in Eastern Europe have
created new opportunities and challenges for Digital,"
notes Cliff Clarke, manager, International Trade and
Policy. "On the one hand, the pent-up demand for computer
equipment to support the integration of these economies
into Western market economies has created a significant
opportunity for sales of Digital’s computer products. On
the other hand, major Digital customers and OEMs in Europe
and elsewhere are moving into these markets themselves,
and Digital needs to be able to support their needs on a
global basis, as they market their products and services
to Eastern European customers."
As a first
response to these complex issues, Digital has announced
the formation of a joint venture company to sell and
sendee computer systems and solutions in Hungary. Joining
Digital in the venture are KFKI (Central Research
Institute for Physics of the Hungarian Academy of
Sciences) and Szamalk (Computer Technology Applications
Enterprise), two of Hungary’s leading engineering
organizations.
The new
company, Digital Equipment (Hungary) Ltd., will begin
operations on April 2, 1990. It will market Digital’s
MicroVAX family of computers in accordance with all
applicable laws regarding the export of computer products
to Hungary. Initial users will be those in non-sensitive
commercial and infrastructure development areas. It will
also provide a range of customer services including
hardware maintenance, training, and software
support.Digital holds a 51 % share of ownership and KFKI
and Szamalk each hold 24.5%. Digital also has the option
of acquiring 100% of the joint venture company and forming
a wholly owned subsidiary in the future.
"History has shown that information
technology can often be a lubricant of change," said
Alberto Fresco, vice president and country group manager,
Digital Europe. "As Hungary moves forward with its plans
to restructure its economy, computers will play an
important role, facilitating and complementing the open
exchange of ideas and information. Digital is enthusiastic
about the opportunity to participate in this process and
to assist in the modernization of Hungary’s
infrastructures and industries."
"Our major customers, both OEMs and
end users, especially in Europe, are making aggressive
plans for participating in the emerging markets of Eastern
Europe," adds Cliff Clarke. "Digital is committed to
supporting the needs of its customers on a global basis,
even in Eastern Europe. We also intend to take advantage
of new business opportunities in the modernization of
Hungary’s various infrastructures. Hungary recognizes the
need for world-class information technology as it builds
modern banking, telecommunications, energy,
manufacturing, and public administration infrastructures."
"Digital's sales efforts prior to the
1980 Afghanistan embargo created a strong interest in our
products, which is still in evidence today," he notes. "We
are working with customers to qualify these opportunities
and move forward.
"Because of the size of the
population and its traditions and institutions, Eastern
Europe has the potential to become an enormous opportunity
and an important market for Digital. For now, we need to
assess the current reforms and their relevance to Digital,
and develop plans for supporting our existing customers as
they expand their business in those countries.
"A major challenge in meeting these
opportunities rests with the U.S. Government’s export
restrictions. Digital complies with regulations that
specify which products and applications can be exported.
Some of the restrictions still in place today were
developed during an era of hostility and mistrust in
East-West relations, and are not consistent with the
current political and economic climate. Currently, U.S.
export license approvals can be obtained for PDP-11 and
MicroVAX II systems for most commercial and non-strategic
industrial applications. We are working to extend the
range of licensable systems, and we have been encouraged
by recent statements and actions by the U.S. Government
and COCOM (Coordinating Committee on Multilateral Export
Controls) in support of a more open and liberalized set of
regulations."
Cliff concludes, "As a global
company, we want to continually test these boundaries and
establish precedents that lead toward change and broader
markets for us and our customers."
As part of
the company’s continued efforts to simplify and streamline
business operations, as well as enhancing productivity,
the U.S. Field Finance organization has redefined its
role, work and organizational structure.
Our goal is
to optimize the value of Finance resources more
efficiently and effectively. This will require clarifying
the work, realigning the organization, and eliminating
redundancies.
Since the
Fall, over 200 volunteers from Finance and other
organizations have assessed the work of Finance to
determine current and future work requirements. The work
of Finance now falls within these buckets: fiduciary,
business partnership/leadership, customer interface and
human resources; and is subdivided further into these
major categories: customer analysis; business analysis;
common financial planning; modeling and tools;
controllership; credit; and human resources.
We will
provide financial support to Account, Unit and District
Managers for both systems and service business throughout
the U.S. This work includes financial analysis, business
and financial reporting, forecast and budget support and
business controls.
To position
our resources closer to customers and clients, we have
created four U.S. Finance support centers, managed by Ted
Hopson, Dave Stevens, Dale Emerson and Gora Dutta. These
centers will be delivering the work when and where it is
needed. In conjunction with the line and finance people
within the geographies, these four managers will ensure
that all of the financial services get delivered in the
most logical way. For example, we may move some resources
very close to the customer or Sales Unit Manager; while
other work might logically be consolidated into one
location or vertical staffing may be appropriate in some
locations.
The work of
Finance is very much the same in almost any organizational
structure. We pay bills, issue invoices, close the books,
do business analysis, do credit checks, collect cash, and
do modeling, financial planning, investment analysis, etc.
There are benefits in organizing ourselves around that
work, rather than around the company’s organizational
structure. Our ability to organize around the work helps
us become transparent to those organizational changes
while also enabling us to improve our quality and ability
to deliver excellent service.
For example,
accounting and controllership work will be combined to
eliminate redundancies and improve effectiveness. This
work includes fiscal reporting, revenue and billing,
disbursements, internal controls and asset management.
Andy D'Agostino will be functionally responsible for this
work.
Credit and
collection activities will continue to be the functional
responsibility of Bob Martin, and Human Resource
activities will continue to be the functional
responsibility of Barcy Proctor.
The work of developing integrated
processes and systems for forecasting, budgeting, U.S.
Business Modeling, common management reporting, plus
integrated measurements and metrics, will be led by Bill
VanAtten.
Financial support to the customer
groupings of Volume, Government and End User includes
revenue and margin forecasting, investment analysis,
business models, value-added pricing and competitive
analysis. Joan Gray will have this responsibility for
Volume, Bill Gervais for Government and Rick Ryan for
End-User.
The work of business analysis, which
encompasses revenue, expense and asset analysis, as well
as investment analysis and appropriate business models,
will be done by Frank Paglia for Customer Services, Jay
Zager for Sales/Systems, on an acting basis, Mike Bilbao
for Enterprise Integration Services (EIS), and on an
acting basis, Jeff Brasor for Administration Services.
We know that there is some duplication
of effort in our Finance function today. When we complete
our evaluation of the work, there will be some jobs that
may not be necessary. Fortunately, there are
opportunities/options within Digital in the sales support
environment, in other administrative functions and in
sales.
We have taken the initiative early to
prepare ourselves for expected changes in the business.
We have made great strides, and our new organizational
model is helping us to position ourselves and Digital to
meet the ever-changing challenges of our business.
(To promote two-way communication
within the Finance organization, Steve Behrens recently
hosted the first of a series of quarterly live Digital
Video Network (DVN) broadcasts for Field Finance
employees. The next broadcast is scheduled for May 2.)
In support of Digital’s commitment to
doing the "right thing" in the realms of health, the
environment and safety, MGMT MEMO will regularly report on
these matters. For example, the following four articles
deal with the company’s new worldwide environmental,
health and safety (EH&S) policy, the new geographic
focus for the EH&S team. Earth Day 1990. and research
on health effects of office equipment.
Digital recently adopted a policy
which defines its environmental, health and safety
(EH&S) commitment. The scope of the policy is
worldwide. It applies to all Digital operations and
interests, including subsidiaries. Its purpose is to
provide management direction, strengthen EH&S programs
and position Digital as a model.
"Although embodied in our core
values, our corporate EH&S commitment needs to be
formalized," noted Ken Olsen, president, in a cover memo
to the policy. "Today, as the world faces growing
environmental problems, we have a unique opportunity to
provide stronger leadership in achieving national and
world progress in this area. Business managers are
responsible for adhering to these policies. In addition,
each Digital employee has responsibility for helping to
maintain a safe and healthful work environment. Finally,
as a corporation, we will seek solutions to global
environmental problems through our products and
information technology."
The policy simply states that
"Digital will conduct its business in a manner that
conserves the environment and protects the safety and
health of its employees, customers and the community." It
spells out the seven core principles on which this is
based, and outlines programs and actions that Digital
undertakes to support them.
The principles are:
o Provide our employees with a safe
and healthful workplace.
o Protect the environment and the
community.
o Conserve natural resources.
o Design, produce and distribute
products in a safe and environmentally-protective manner.
o Communicate known hazards, along
with necessary safety precautions, to our employees,
customers and the community.
o Evaluate potential hazards
associated with our products and operations.
o And consider full compliance with
the law as being the minimum acceptable standard.
"Being world-class today requires
companies such as Digital to be proactive and exemplary in
all aspects of EHS," explains Dave Barrett, Corporate
Manager of EHS. "We can't meet our business goals unless
we protect employees, produce the safest products possible
and eliminate most pollution. In addition, customers and
world governments are looking to us for leadership as they
grapple with similar issues."
Digital’s environmental policy is
based on a few key tenets:
o to provide state-of-the-art safety
and health programs to our employees;
o to meet and, where appropriate, to
exceed government regulations related to the environment
(in locations where there are no regulations. Digital sets
its own stringent standards);
o wherever possible, to use
non-polluting and energy-efficient processes in designing
and manufacturing products;
o to use our
technological expertise to aid governments and other
industries in finding solutions to environmental problems;
and
o to
conserve natural resources and protect the environment and
the communities in which we do business.
"Our
strategy for addressing EHS issues is to reinforce
business ownership," says Dave. "Business managers must
fully understand their EHS responsibilities and
aggressively manage them, including incorporating EHS
considerations into business plans. We don’t need an army
of inspectors. We need a high awareness level, clear lines
of business accountability and a support system.
Policy-related training is presently being planned for key
business managers.
"Our EHS
strategy is also attempting to involve employees," Dave
continues. "For example, consider the European Services
and Supplies Center in Nijmegen and Oudenrijn, Holland. In
the fall of 1988 the Center kicked off a business-wide
employee environmental campaign to reduce the use of
polluting materials. The program, which has been commended
by Holland's Minister of the Environment, resulted in a
series of employee efforts that impact the environment in
which they work. Specifically, efforts are under way to
implement using only recycled paper, using batteries
without mercury and better reuse of packaging material.
"Digital’s
worldwide Waste Management Program offers exciting
opportunities for employee involvement both to protect the
environment and to reduce waste."
Corporate
goals and policies are set by Digital's Environmental,
Health and Safety Board (EHSB), which includes
representatives of the company’s major business units and
senior EH&S staff. ESHB played a key role in
developing the new worldwide policy. The Corporate
EH&S organization provides strategic and global focus,
and geographic EH&S teams provide operational support.
(See the related story which follows this one).
(Each employee will receive, at work,
a copy of the full worldwide EH&S Policy.)
New
geography-based organizations for Environmental. Health
and Safety (EH&S) are being formed for the U.S.,
Europe and GIA. These new groups will provide EH&S
operational support to all businesses in their areas. The
Corporate EH&S organization will become strategic and
global in focus.
Joe Permatteo has been named manager,
U.S. Environmental. Health and Safety, reporting to Lou
Gaviglia. vice president of U.S. Area Manufacturing. Joe
joined Digital in 1980 as part of the Corporate Property
Development Group and most recently was group manager of
EH&S for the Storage and Information Management Group.
Jerry Gaudet has been named
Environmental. Health and Safety program manager for GIA
Manufacturing & Engineering, reporting to Jim Melvin,
Technology Manager, GIA M&E. Jerry has returned from a
two-year assignment in Bangalore, India, where he
successfully established a Digital manufacturing entity.
Previous to joining Digital, he had numerous overseas
manufacturing management assignments.
Jeff Sutton is Environmental, Health
and Safety manager for Europe, reporting to Dick Esten and
Hans Dirkmann. Jeff has extensive experience in EH&S
and has worked for both the United Kingdom Health and
Safety Executive and the United Kingdom Waste Disposal
Agency. Immediately prior to joining Digital in August
1989, Jeff was co-founder and Technical Director of
American Medical International Occupational Health Ltd.,
where he headed a team of occupational health and safety
consultants.
Dave Barrett, corporate manager of
Environmental, Health and Safety, will provide functional
guidance for the geography managers.
Senior business managers are
responsible for managing EH&S risks and insuring
compliance with corporate policies and applicable laws.
The geography EH&S groups will provide overall
program management for EH&S and Waste Minimization
Programs and provide technical support to the business
units. They will lead the company’s effort in these areas
and will develop cross-functional teams including design
engineering, quality, finance, personnel, distribution,
materials and purchasing.
The new U.S. organization is located
at 5 Carlisle Road (WJO2-1/C11) in Westford.
Massachusetts 01886-0669. A list of staff members, phone
numbers and nodes is available in the Corporate VTX
Library under keyword "EHS".
Earth Day 1990, a worldwide,
non-centralized celebration, will be held on April 22,
1990, the 20th anniversary of the first Earth Day. Earth
Day is intended to mark the beginning of a long-term
commitment to building a safe and sustainable planet.
Governments, environmental groups, broadcast and print
media, community groups and corporations will be planning
activities that will encourage individual participation
and commitment to improving and protecting the
environment.
Digital will use the occasion of Earth
Day to reaffirm its commitment to excellence in the areas
of environment, health and safety. In conjunction with
Earth Day, "Earth Vision" posters detailing the seven
tenets of environmental, health and safety excellence will
be sent to each site. In addition, each employee will
receive, at work, a copy of the full worldwide EH&S
Policy.
Many sites are sponsoring appropriate
Earth Day activities. Managers are asked to encourage and
support their employees' participation in these
activities.
Digital is committed to developing and
manufacturing products that provide the best level of
safety to our employees and customers. To this end,
Digital carefully and continually monitors worldwide
research to assess possible risks, and conducts in-house
research to understand users, new technologies and product
designs. We are committed to communicating known risks
along with the necessary safety precautions to our
employees and customers.
Over the past several years, questions
have been raised as to whether there are harmful effects
associated with the use of video display terminals (VDTs).
We formed a task force to monitor this research six years
ago. To date, the preponderance of research does not
indicate medical harm to users. There are discomforts,
however, which proper work-area design will relieve or
eliminate. We will inform our employees and customers in
the event further research indicates health risks related
to VDTs, and also will take appropriate steps to ensure
safety.
Several epidemiological studies have
been conducted to determine if there might be a
relationship between VDT use and reproductive health.
Researchers have tried to see if there is an increased
incidence of birth defects or miscarriages (spontaneous
abortion) among women who work with VDTs compared to women
who do not. No causal relationship has been found between
VDT use and adverse pregnancy outcome, but some questions
that have been raised are now being examined in further
studies.
A 1988 report known as the "Kaiser
Permanente Study" found an increased incidence of
miscarriage among women in clerical/administrative support
positions who worked more than 20 hours per week with
VDTs. However, other women who reported working more than
20 hours per week with VDTs in other jobs
(managerial/professional. blue collar/service. and
technical/sales) did not experience more miscarriages. In
interpreting these disparate results, the researchers
speculated that the miscarriages may be related to other
factors associated with clerical jobs, for example,
job-related stress.
While these studies have not shown a
causal relationship between VDT use and miscarriage, they
have suggested the need for studies involving large
numbers of women working fulltime with VDTs. The National
Institute of Occupational Safety and Health (NIOSH), a
U.S. government research agency, is currently concluding
such a study. Results are expected to be available in
March.
Last summer, the National Institute
of Health (NIH) funded a "prospective" epidemiological
study. In other words, researchers will directly monitor a
group of women over a fixed period of time, rather than
using questionnaires to ask women about their experiences
over the last few years. This design will control for the
possibility of a bias in people’s recall of VDT usage
following a traumatic experience. Preliminary results of
this study, conducted by the Mt. Sinai School of Medicine
of the City University of New York, are expected in about
two years.
A few animal studies have raised
questions regarding possible health effects from
electromagnetic emissions; in particular, very low
frequency emissions, (ranging from 60 Hz to about 20 kHz
and above), which are common to fluorescent lights,
televisions and household appliances as well as computer
equipment.
In September 1989 and November 1989,
the University of Toronto presented preliminary results of
a well-controlled, large-scale rodent study that was
sponsored, in part, by IBM. Rodents were continuously
exposed to VDT-like 20 kHz pulsed magnetic fields at
several exposure levels: four times VDT emission levels,
17 times, 200 times and a sham condition. The results
reported to date demonstrate no relationship between
reproductive outcome and exposure to pulsed magnetic
fields in this experimental study. Formal publication of
these results is expected this spring.
Digital routinely designs and tests
all of its products in accordance with recognized
procedures to ensure that they meet all applicable
national and international standards, regulations, and
guidelines in the area of electromagnetic emissions. These
emissions cover the x-ray, ultraviolet, infrared,
microwave and radio frequency bands. However, there are
very low frequencies (such as those mentioned above) for
which no scientific standards have yet been established.
Research is just beginning to develop the knowledge base
which would allow scientists to interpret the biologic
significance of very low frequency emissions and
determine what an appropriate standard would be. Should
such limits be established through national or
international standards bodies, Digital will, of course,
comply with whatever limits they determine are
appropriate.
Although VDTs do not appear to pose a
health risk, users can take steps to minimize any
workplace discomfort and concerns about health effects by
adopting several common-sense work habits. In particular,
Digital recommends that VDTs be used in environments that
have good lighting; comfortable work stations with correct
neck, arm and wrist position; and a minimum of
distractions (including, for example, excessive noise and
cigarette smoke). Digital also recommends that VDT users
relax their eyes by periodically looking at distant
objects and by taking occasional breaks from VDT use.
Individuals who customarily wear reading glasses may find
slightly weaker lenses more comfortable for prolonged VDT
operation. Pregnant women, in particular, should be sure
that their work areas are set up to minimize undue
physiological stress that can be caused by working in a
somewhat constrained and uncomfortable position for long
periods of time.
Our Human Factors Group continually
tests and evaluates systems and components from the user
point of view, and has done so since 1980. They also visit
customer sites to better understand user needs,
requirements and productivity issues. This information
helps us to identify future needs and to influence the
company’s design and development efforts.
Other engineering groups within
Digital are current with all the engineering and
scientific aspects involved in the specification and
design of VDTs. Newly developing technologies are
constantly being studied and evaluated for applicability
to Digital products.
Managers should remain flexible,
sensitive and open to change. They should keep in mind
that workplace discomfort appears to be generated by a
number of factors. Studies have indicated that people who
are required to perform highly-repetitive tasks involving
little independent judgment may experience adverse
physical reactions. To guard against this concern, users
should be given varied tasks, including some that require
the exercise of independent judgment; and should be
accorded reasonable breaks.
A brochure entitled "Introduction to
Video Display Terminals for Managers and Operators"
provides guidelines on how to organize the work
environment to minimize job-related stress. For copies of
this brochure, contact Charles Abemethy, DTN 223-5641,
@MLO.
Digital employees with questions
regarding their work environment should contact their
local Environmental Health and Safety (EHS) department or
Health Services for assistance.
The role of mid-range computers is
changing dramatically as we move into the 1990s. For years
minicomputers have been and will continue to be the
primary vehicle for delivering distributed/decentralized,
timesharing applications.
Today, evolutions in technology and
revolutions in the industry are stratifying the delivery
of applications into two primary computing areas - "the
desktop" and "beyond the desktop." Corporate Information
Systems are being designed for peer networks. In other
words, we’re looking at "no more tiers." The trend is
toward viewing the network as the system.
In this environment, the role of
mid-range computers will evolve toward managing and
implementing the networks that tie together corporate
resources. Clearly, minicomputers will assume a dual
server role — server to the desktop and server to the data
center. Some projections indicate that by 1994, 60% of all
mid-range MIPS will be consumed as server functions. We
envision that virtually all minicomputers will become
servers (although not all servers will be minis).
The Mid-Range Systems Business (MSB)
Group plans to be at the forefront of this evolution.
Because of our excellence in distributed networks and
desktop integration. Digital is very well positioned to be
a market leader in networked servers. Our vision for the
1990s is to become the world’s leading vendor of
"Networked Servers" and system resources for distributed,
multivendor system networks. Our strategy is to launch a
cross-corporate marketing campaign to demonstrate
Digital’s existing leadership capabilities in the
marketplace. From an Engineering standpoint, we will
provide both the platforms and the focus for other
engineering efforts to increase Digital’s superior
position.
Refocusing our business toward this
goal, within Digital’s overall NAS strategy, will drive
MSB’s future growth. We have already established a new
marketing group within MSB—Networked Servers Marketing,
with Lynn Berg as manager, reporting to Ken Swanton
[title]. In her new role, Lynn is responsible for an
extensive marketing campaign that positions Digital at the
leading edge of networked servers and systems technology.
She is the marketing focal point for developing and
marketing a family of Networked Servers-in- cluding
hardware, software and NAS support for special
environments, and a set of network services for systems
and support integration. To accomplish this goal, Lynn
will work with MSB engineering to garner expertise from
Product Marketing Groups, other engineering groups, and
services, to build the world's best networked servers.
MSB's new focus on client/server
computing, combined with our traditional strengths in
distributed timesharing systems, demonstrates our
continuing commitment to provide Digital’s customers with
the best computing solutions for their changing needs.
(On February 2, President Bush
traveled to North Carolina State University to learn about
university research projects and how corporations are
cooperating in such activities to improve industrial
competitiveness. During the visit, Jack McCredie was
invited to participate in a panel discussion that also
included representatives from DuPont, Harris, IBM, and the
Semiconductor Research Corporation. Each participant had
just three minutes to describe his or her organization,
discuss issues of research and competitiveness, and make
recommendations. The following article is based on Jack’s
remarks.)
University, industry, and government
cooperative research plays a key role in keeping the U.S.
in a winning position in the global economy.
Digital is the second largest
manufacturer of computing systems in the world. To sustain
technological leadership, we must have access to
scientific advances in all areas important to future
products, no matter where they happen or who makes the
invention. To sustain leadership in highly competitive
world trade, we need access to newly emerging markets such
as those in Eastern Europe.
Innovation carries no passport,
respects no boundaries, and follows no timetable. An
effective research and development program has to be
universal. It has to build on new ideas regardless of
where they originate. Openness is key to Digital’s
research and development program. Our goal is to gather
the broadest possible range of inputs from within the
corporation, from the academic community, from industrial
research consortia, and from customers and suppliers.
Last year we invested $1.5 billion
(about 12% of revenues) in product development and
research projects. Because of the highly competitive
nature of the computer business, most of these funds go
directly to product development. That is why partnerships
with research universities such as North Carolina State
are so important to us.
To provide Digital with the
longer-term applied research that we need to be
competitive in the future, we have three Digital research
labs in the United States and one in Europe. We
participate in industrial research consortia such as MCC
and Sematech in Texas. And to give us broad access to
research in many directions, we depend heavily on research
partnerships with universities.
Our External Research Program has more
than 300 active projects at more than 120 universities.
The National Science Foundation is also a major sponsor of
many programs we support, such as the Advanced Electronic
Materials Processing Center here at North Carolina State.
Other examples of strategic projects in North Carolina
that are important to us include the Semiconductor
Research Corporation, the Microelectronics Center of North
Carolina, and several individual projects at universities
such as Duke and the University of North Carolina.
There are four important ways in which
the federal government can help these partnerships and the
competitiveness of United States firms in high technology:
o Support programs that benefit
university research — for example, the recently submitted
Federal budget continues toward the goal of doubling the
budget of the National Science Foundation by 1993,
o Make the
provisions of the Research and Development Tax Credit
permanent, o Help U.S. firms open new high-technology
markets throughout the world,
o Develop
programs that will provide a good basic education to all
citizens.
The cooperative university research
model is elegant, extensible, economic, and effective.
Major winning applications and products for the mid 1990s
are running as prototypes in university laboratories
today. New breakthroughs for the beginning of the 21st
century are just being invented on university campuses
today.
The process is a win-win situation for
all participants. Better education, better research, and
better products are the direct results of university,
industry, and government research collaborations.
A product marketing group has been
formed to focus on providing software applications for
sales and distribution systems and for the retail industry
— a growing market currently estimated at $40 billion. The
group is managed by Eli Lipcon, vice president. Sales and
Distribution Systems, who reports to Peter Smith, vice
president, Product Marketing.
The applications will be from Digital
and third-party software suppliers in the Cooperative
Marketing Program. In addition, the group will market and
sell Digital’s VAX and RISC computers; networking
solutions; peripherals; and planning, design,
implementation and management services to sales and
distribution functions in companies across all
industries.
According to Eli, "The use of
information technology in sales and distribution
departments and the retail industry has been focused
largely on basic office applications such as word
processing and electronic mail, and applications such as
order processing, sales transaction management,
purchasing, and invoicing. But worldwide competitive
pressures are rapidly changing this picture. Companies are
now looking for other ways to help their sales and
distribution organizations become more strategic partners
in their dealings with customers. They are positioning
sales offices, warehouses, and stores across wide
geographies in order to serve their customers better.
"Digital’s solutions for sales and
distribution functions and the retail industry are built
on strengths in distributed computing across global
networks of systems from various vendors."
Digital now provides volume credit to
all accounts with Digital Business Agreements regardless
of the channel providing the hardware. This new approach,
known as "dual aggregation," has two objectives:
o to ensure that our end-user
customers can make the best possible purchasing decisions
when looking at a total hardware and software solution,
regardless of the channel selected; and
o to recognize the role our
Complementary Solutions Organizations (CSOs) play in
providing total solutions to our customers.
In this way we can better support the
business goals of both our resellers and customers.
This channels strategy allows maximum
account coverage and penetration with minimal channel
conflict. It also ensures that end-user customers see
Digital and its CSOs as having the most competitive and
comprehensive solutions portfolio in the industry.
Our approach is aggressive and
comprehensive. While some vendors don't offer credit for
such sales activity, those that do, award credit for only
a portion of their product set.
In addition, we recently revised our
S.T.A.R. (Sales Through Accredited Resellers) Credit
Policy, which also creates new sales opportunities for
authorized Digital resellers. This policy change awards
full credit to end-user sales reps for systems sold by
OEMs (Original Equipment Manufacturers) into their
accounts. Both these changes help neutralize sales issues
that could affect the customer’s purchasing decision.
For FY91, beginning with the budgeting
process, Digital worldwide will change its management
measurement for employee population — the way it counts
people — to "headcount equivalency." An individual will be
counted for the number of hours scheduled to work,
expressed as a percentage of the standard work period. For
example, a Digital employee who is scheduled to work 20
hours of a standard 40-hour work week will be counted as
.50. Current reporting systems will be enhanced to report
numbers of employees in total (gross) and by
"equivalency."
The program, which gives managers
greater flexibility in meeting their needs for people, has
been approved by the Finance Committee and the Personnel
Management Committee. For more information, contactCris
Day, SSM1 Finance, DTN276-8294; Ragi Mehta, SRCOF Finance,
DTN 244-6160; or Mhairi Paget, MEM Finance, DTN 223-5663.
"Workers are changing, so that means
work models must change as well." explains Laurie
Marolies, manager, Corporate Employee Relations Programs.
"When employees aren't worried about their life outside of
work, they can perform at their best, and the company can
as well. So social trends are forcing businesses to make
work more flexible."
To help meet this business challenge,
Digital has developed a "Life Balance Strategy" to meet
the company’s worldwide business objectives and employees'
personal needs through more flexible planning and use of
human resources. Life Balance is the foundation for the
Dependent Care Strategy (covering child care, elder care,
and care for ill dependents) and the Alternative Work
Strategy (encompassing work schedules, work locations, and
work models).
"With an increasingly competitive
labor market, we have to attract and retain top people.
This includes people who choose to work less than the
standard number of hours a week," notes Laurie. "Many men
are becoming increasingly involved in parenting and taking
care of elderly parents. Also, the number of single-parent
households, women in the work force and women over 30
giving birth to their first child are on the rise.
"We have to be able to accommodate
capable professionals who choose to work less than a
standard work week. The old work model of ’everyone works
in the office from 8:15 till 5 and has a 45-minute lunch
break’ that is common in some parts of the world is not
meeting the needs of individuals nor of businesses. The
Alternative Work Strategy has been devised to increase our
ability to offer flexible work options around the world."
Flexible staffing means more than
retaining valuable employees who wish to work part-time.
As people retire, for example, they may choose to phase
out gradually from a full 40-hour work week. Also, if a
manager has a reduced workload and needs to reduce
headcount and spending, some of the remaining work could
potentially be divided into part-time jobs. This could
provide opportunities for more employees, some with
shorter schedules, rather than fewer employees who all
have full-time schedules. In many cases, new and existing
tools and procedures make it possible for managers to
provide employees with the flexibility they need and at
the same time meet pressing business needs. What’s needed
is a change in perspective to see the full range of
opportunities and options. For instance, a new approach to
counting the employee population known as ‘headcount
equivalency,' gives managers more flexibility in their
staffing, because, for headcount purposes, one employee no
longer necessarily equals one ‘head.’ For example, in the
U.S. an employee who works 40 hours of a standard 40-hour
work week counts as 1.0; while one who works 30 hours of
that same standard week counts as .75. This tool has
already been successfully phased in in the Central Area
and Customer Services Logistics in Andover, Mass. It will
be required company-wide beginning July 1. This change in
population reporting increases a manager’s options. In
other words, work hours can be organized in a way that
best gets the job done and meets a group’s needs.
"Headcount equivalency also more accurately reflects what
our human resources are and what we spend on them," adds
Laurie.
According to Richard Rogers, project
leader for the Central Area pilot, headcount equivalency
helped address a number of common business problems. "For
example, in one of our organizations, customers were
looking for support people, but only on a part-time basis.
With the old system, we would either have had to turn down
the work or hire a full-time employee who was not needed.
Through headcount equivalency, we are able to hire the
right resources for the job that has to be done."
The need for affordable, available,
quality day care is also worldwide, notes Erica Fox, Child
Care Program manager. "There are multiple solutions to
employees’ child care problems. The solution that may be
right for one location may not be right at all for
another. The key is to ensure that local responses are
driven by both business needs and employee child care
needs.
"Digital Guidelines for Child Care
Initiatives" is the basis from which the company can
expand its response to child care problems. Organizations
across the company can collaborate with the Child Care
Program Office to determine which response makes sense,
given their specific business needs, the employees’ child
care needs and the local community picture regarding child
care.
"Local organizations might fund five
emergency ‘places’ at a local day care center that parents
could use when their own care provider is sick or their
center is closed. Or they may decide to support a child
care center start-up." Erica adds. "The point is. groups
can choose to fund the option that solves their particular
child care problem."
In the U.S., the company has already
taken steps to support employees’ child care needs,
including the Child Care Resource and Referral Program and
the Dependent Care Reimbursement Account. In addition,
Digital has supported the start-up of a near-site child
care facility in Reading, England, and participates in a
child care tuition subsidy program in the Netherlands.
(The company doesn't provide such tuition subsidies
outside of the Netherlands at present. Any decision to do
so would be made on a country-by-country basis.)
"Regardless of where they live or the
life choices they make, employees are seeking to balance
their life at work with their life outside of work,"
concludes Laurie. "The Life Balance Strategy, the
Alternative Work Strategy, and the Digital Guidelines for
Child Care Initiatives are major steps toward fulfilling
our needs. We’re working on additional initiatives as
well. It makes good business sense for the 1990s and
beyond."
Digital is offering a small number of
employees in the U.S. the opportunity to change careers
and go into teaching. The MEM pilot program, "Engineers
into Education." will provide some employees who are
re-evaluating their career directions with an additional
option. At the same time, it will help some communities
deal with the growing shortage of qualified mathematics,
chemistry, physics and computer science teachers.
The program is primarily intended for
those individuals, who in mid-career feel motivated to
give their time and effort to the community through
teaching; and who, with financial and other support to
help them through a period of change, could manage with
the lower levels of income common to the teaching
profession.
Support available from Digital (the
"Education Bridge Package") includes counseling, the
opportunity to maintain certain benefits coverage for a
fixed period of time, a lump-sum financial package based
on the number of years worked for Digital and help with
tuition for teacher preparation and certification courses.
In April, the first phase of the
program, "Explore Education," will help eligible
employees decide if a career as a math or science teacher
is appropriate for them. This phase will be conducted by a
local education consortium of public schools over a
ten-week period. The first two weeks will be held in a
local school district. Employees can participate in this
part of the program without obligation.
During the ten weeks of Explore
Education, those who decide they actually wish to leave
Digital for a career in teaching may do so by electing the
second phase of the program, the Education Bridge Package.
March 9,
1990 was the deadline for applying for the pilot program.
Applicants must meet the following eligibility criteria: o
apply and submit all necessary materials;
o have at
least a bachelor’s degree in engineering, mathematics,
physics, chemistry or computer science from an accredited
college or university;
o work in
MEM (Manufacturing, Engineering and Marketing);
o work in
Massachusetts or New Hampshire; and
o have a 1,
2 or 3 rating in their last performance review.
Following
completion of the pilot, the program will be extended to
other organizations and geographies within the company.
Whenever
there are more eligible applicants than opportunities,
applicants will be selected in the following order:
o first,
those who have been designated as "available" under a
formal transition program; o then, those with the most
company seniority, defined by total length of service with
Digital.
Additional
information is available on videotex (to access, type VTX
EEP at the system prompt), or contact Burt Goodrich, DTN
223-3603, VAXMAIL RDVAX::EDUCATION.
In
recognition of the growing importance of GIA sales
opportunities, five Program Managers have been named.
Located in Acton, Mass., as part of
the Major Accounts organization, they will serve the Far
East Region (FER), the South Pacific Region (SPR), Japan,
India, Canada, and Latin America/Caribbean (LA/CR).
Heading the program offices are Steve To (FER), Axel
Dougan (SPR), Norio Murakami (Japan), Nari Bawa (India),
and Ray Lindsay (Canada and Latin America/Caribbean).
The program office managers are
senior-level sales professionals who serve as advocates
for their regions. Their job is to make sure we close
business. "These program office managers understand, from
their own experience, what the sales processes and
problems are in their regions — and how best to optimize
sales activities," explains John.
Each program office manager functions
as the host account manager for regional customers
visiting Digital and performs a leadership role in
regional Large Account sales activities. As inside
salespeople, the managers serve as consultants and
advocates for their regions, identifying strategic
requirements, acting as a conduit for business information
between the regiona! and area staffs, and acting as
liaisons to various interna! groups, such as International
Account Marketing Program, Large Projects and GIA
Channels. Simply by having adjacent offices, these
managers can easily discuss issues spanning several
countries, languages and time zones and relay approaches
and contact names back to the field.
To further prepare and strengthen the
Video Image and Printer Systems (VIPS) Group's position in
the marketplace in the 1990s, Larry Cabrinety, group
manager, has announced the following organizational
changes:
George Wright has assumed the newly-created
position of program manager, OEM Program Office. In this
role, George will develop the OEM business for printers
and video products. He has overall responsibility for all
facets of that business, including development of a
customer base, product management, engineering support,
marketing support, manufacturing, and post sales support.
Rich Lewan has joined VIPS as the new program
manager of the Video Program Office. Rich has 15 years’
experience with Digital in a diversity of roles, Including
marketing management, product management and sales
management. Most recently. Rich was manager of Product
Marketing Development and Support in the Engineering
Systems Group (ESG). He has also held management positions
in Digital’s Microprocessor Product Group. Corporate
Engineering TOEM (Technical Original Equipment
Manufacturing) Group and ESG’s Workstation Marketing.
David Sweeney has assumed the newly-created
position of program manager, Hardcopy I/O Program Office.
He will manage all facets of the Hardcopy I/O business,
including Hardcopy I/O Engineering, Software and
Aftermarket Product Management. Desktop Printer/Scanner
Product Management, and PrintServer/Production Printer
Product Management. This business is expected to double in
the next three years.
Joseph Cannizzaro has joined VIPS in the newly-created
role of program manager. Strategic Ventures/Alliances
Program Office. Joe will expand VIPS’s NOR (Net Operating
Revenue) and PBT (Profit Before Tax) businesses by
identifying and creating Strategic Ventures and Alliances.
He will manage expansion into South America and Eastern
Europe, and will develop North American alliances to
strengthen manufacturing and engineering capabilities in
critical technologies. He has been with Digital more than
15 years, most recently as group manager of Technology and
Process in Low End Systems Engineering. Prior roles
include group Engineering manager for the Printed Wiring
Board (PWB) Business, Project and Manufacturing manager
for the design, build and startup of the Greenville PWB
facility, and Engineering manager for PWB.
Peter Conklin has assumed the newly-created
position of VIPS technical director. He will be
responsible for VIPS technical integration and for support
of products and technical direction of other Digital
systems and software groups. In addition, he will be the
liaison for VIPS ISV (Independent Software Vendors)
application support in marketing- and
engineering-sponsored programs.
Don Hunt has been appointed EIS
(Enterprise Integration Services) Manufacturing manager,
reporting to both Russ Gullotti, vice president of EIS,
and Bill Hanson, vice president, Manufacturing Operations.
In this role, Don will be a member of both the Enterprise
Integration Services Management Committee and the
Manufacturing Forum. His responsibilities will include
the functional management of CSS (Computer Special
Systems) and SWS (Software Services) Manufacturing.
As the EIS Manufacturing manager, Don
will be responsible for the development and integration
of the Manufacturing strategies in support of the EIS
business strategies. In addition, Don will continue in his
Corporate Manufacturing role as functional manager of the
Customer Integration group and the Manufacturing
Transition Management group. Bill Hanson will assume
responsibility for the Demand/Supply group.
Don’s 20 years in Manufacturing at
Digital have included the following positions: New
Products Manager; Manufacturing Business Manager/Product
Lines; Corporate Purchasing Manager; and Group
Manufacturing Manager of General Manufacturing. PWB
(Printed Wiring Board), Northeast Area Manufacturing and
Strategic Planning.
Steve Bergeron, manager of Digital’s
Semiconductor University, has been chosen to serve as a
member of the Board of Examiners for the Malcolm Baldrige
National Quality Award.
The Malcolm Baldrige National Quality
Award is part of a national quality improvement campaign
by industry and government to recognize excellence and
promote greater awareness of quality. The Board of
Examiners evaluates applications submitted by U.S.
companies for the prestigious award. Its activities
include making site visits and evaluating submitted
material to determine which companies excel in modem
quality management.
Steve joined Digital in 1984 to
implement statistically based problem solving techniques
in Semiconductor Operations Manufacturing. In January
1989, he took on the task of starting up and managing
Semiconductor University, a corporately funded program
that provides a two-year state-of-the-art work/study
program for individual contributors seeking career change
opportunities in the Semiconductor and Interconnect
Technology (SCIT) organization
Rich Nortz, Customer Services vice
president, recently announced the following enhancements
to the U.S. Customer Services organization:
Customer Services is transitioning the
Southwest Area and Western Area into the Western States
Region, and the Central Area and East Central Area into
the North Central States Region. These Regions now report
to Bob Brooks and Mike Jackson,
respectively.
Frank Branca has been named Northeast Region
manager; and Tony Farkas has been named New York
Region manager.
Larry Pape has been named manager of the
newly-formed Service Delivery Operations group. This
organization will consist of the Service Delivery group,
which includes the Customer Support Centers, the Logistics
group, and the Service Delivery Training interface. Dick
Sellers manages the Service Delivery group and Charlie
Tharp remains as Service Delivery Training manager.
Don Leighton has been named manager of the
newly-created Digital Product Services group, made up of
Hardware Product Services (HPS) and Software Product
Sendees (SPS). Don also manages the Account Support
organization and the marketing support for HPS, SPS and
Industry Marketing.
John Fischer has been named manager of the New
Business Services group, consisting of Digital Customized
Support Sendees (DCSS), Network Site Services (NWSS), and
Value Added Network Services (VANS). John is also
responsible for managing the marketing support for this
group.
George Newton has been named manager of the New
Vendor Product Services group, consisting of the Vendor
Equipment Sendees (VES), Vendor Application Services
(VAS), Digital Assisted Services (DAS), and Desktop
Sendees groups.
Lynn Berg has accepted the position of manager
for the newly created Networked Servers Marketing group,
reporting to Ken Swanton, Marketing manager for the
Mid-Range Systems Business Group. In this role, she is
responsible for an extensive marketing campaign that
positions Digital at the forefront of networked servers
and systems technology. Lynn began her career with Digital
in 1977 in Sales, and has held a number of positions in
Sales management and Marketing management. Recently Lynn
chaired the Marketing Advisory Board in the Product
Marketing Strategic Programs Group.
Cy Gaydos has been named U.S. Customer Services
Account Support manager, reporting to Don Leighton, vice
president, Digital Product Services. In his new position,
Cy will be responsible for the marketing, account support
and corporate account activities for U.S. Customer
Services. Since joining Digital in 1971, Cy has held
numerous positions in Sales, including Sales
representative. Sales Unit manager, Subsidiary Sales
manager. National Account manager, National Account Group
manager. Corporate Account Cluster manager and Industry
Sales manager.
Dennis O'Connor has been appointed director of the
Corporate Artificial Intelligence Technology Center,
reporting to Dan Infante, vice president, Corporate
Information, Management & Technology. In this role,
Dennis will be responsible for the development,
integration and transfer of AI technology and
applications worldwide. He will continue to manage the
STEPS (Systems and Tools to Enhance the Productivity of
Selling) Program. During his 28 years with Digital, Dennis
has been Engineering Systems Design manager. Worldwide
Systems Technology manager, Intelligent Systems Technology
manager and most recently Corporate Manufacturing
Technology manager.
Bob Roller has assumed management responsibility
for the MCG (Media Communications Croup) Design and
Development function. He reports to Don Elias, MCG Group
Manager, and replaces Susan Moloney, who now manages
ESD&P/MCGin the UK. With Digital for 15 years, Bob’s
most recent post was Group Communications Manager for
Professional Services, where he led cross-services
communications activities.
Willow Shire has been appointed Group Marketing
manager for the Laboratory Data Products (LDP) Marketing
Group, reporting to Peter Smith, vice president, Product
and Industry Marketing. Willow joined Digital in 1976 as
part of the start-up team for the Semiconductor
organization. She worked with both Manufacturing and
Engineering before joining the Marketing organization in
1983. Most recently, Willow worked on the start-up of the
Corporate Operations Committee. During this assignment,
she worked closely with the senior operating managers to
build a cross-organizational committee focused on leading
the company.
Dave Weil has been named Business Planning
Manager reporting to John Caulfield, Corporate Manager,
Waste Management. Dave will be responsible for
establishing business plans for waste minimization, for
developing strategic business programs, and for systems
that will drive waste disposal strategies. Working with
project managers throughout the world, he will assist in
establishing ways to reduce waste at its source, to
improve reuse and recycling of material, and to establish
more effective disposition of scrap. Dave joined Digital
in 1980 as a Group Material manager in Manufacturing. In
1984, joining Customer Services Logistics, he was manager
of the Low End Logistics Business Unit, and manager of
Strategic Planning.
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