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Volume 6, Number 2__________________________________________________ February/March 1987
Confidentiality And Competition
Policy Outlines Proper Use Of Computer Resources
Results Of Health Study In Semiconductor Fabrication At Hudson
Digital Establishes Company Identity Committee
Changes In Service Recognition Award Program
Nipon Telephone And Telegraph Becomes Corporate Account
'Security' Magazine Names Ray Humphrey 'Executive Of The Year'
Update On U.S. Job Evaluation/Classification Project
Recent press coverage has prompted the Executive Committee to emphasize the critical importance of confidentiality and information security.
"Competitors and the financial analysts and consultants they rely on are continuously monitoring Digital to learn of new products, sales and marketing strategies, and potential customer opportunities," notes Jim Osterhoff, vice president, Finance. "Competitors vigorously pursue this effort as they try to beat Digital in the marketplace and gain advantage where a weakness may exist. They obtain confidential and sensitive business information, sometimes unwittingly and other times by design, from Field offices, employees or sources close to the company."
"With the increasing level of competition for orders and marketshare in our industry, we all must be alert and vigilant in protecting confidential business information," observes Jack Shields, senior vice president. "Business conditions (measured by order rates), specific product and market strength or weakness, and information about shipments are important targets of such intelligence-gathering efforts. This type of information divulged carelessly at the branch or district level, or by a marketer or engineer or any other employee, is just as useful as if obtained from the corporate level."
Digital encourages the free and open exchange of ideas. However, substantial problems can arise from premature disclosure of information to people outside the company. For example:
o Confidential information can be used by outsiders to make decisions on buying or selling the company’s stock. This can lead to the direct liability of the employee who disclosed the information.
o Competitors who gain access to confidential information can use it to their own advantage.
o Careful plans intended to maximize market impact can be seriously disrupted by premature disclosure.
o The company may be forced to react to leaked information rather than benefiting from well-planned marketing strategies.
o Agreements with customers and vendors, which by their terms require keeping information in confidence, can be threatened by leaks, resulting in loss of confidence and breached agreements.
Managers should review Corporate Policy Memorandum 75-2 with their organizations. This policy deals with confidentiality and emphasizes two guidelines:
o Avoid loose discussion of company business in social settings or public locations, such as restaurants and airlines.
o Do not discuss company business with stockbrokers, financial analysts, news reporters or any other person in a position to influence the investing public.
They should also review Policy 6.28 in Personnel Policies and Procedures: "Requests for information about the company and its employees received from newspapers, television, radio, industry publications, magazines and local community officials must be directed to Corporate Public Relations."
"Implicit in this policy is the further requirement that no communication be initiated with the media by Digital employees except by the Public Relations staff responsible for doing so," adds Win Hindle, senior vice president, Corporate Operations. "Our Public Relations professionals are trained in dealing with the media and are responsible for keeping track of media calls and responding to them.
"There are appropriate channels for disclosing official corporate information, and specific individuals are authorized to speak on behalf of the company. It is important that we all work towards heightened awareness and avoid inadvertent disclosure of sensitive information," concludes Win.
A new systems policy, "Proper Use of Digital Computers, Systems and Networks," has been instituted to guide all employees in the appropriate use of Digital's computer resources. It emphasizes that the efficient, cost-effective use of these resources is vital to Digital's success, and explains that it is the responsibility of all employees to ensure that computers, systems, and networks are used properly.
This policy, which is effective immediately, encourages the use of systems to help employees work more effectively, to foster appropriate open and efficient communications, and to perpetuate the use of computers in day-to- day activities. However, systems may not be used to gain unauthorized access to internal or external computer systems or accounts, or to interfere with Digital's business activities. In addition, systems may not be used for personal purposes that are contrary to company philosophy or policy, or for individual financial gain.
John Murphy, Corporate Employee Relations Programs manager, says that improper systems use includes transmitting offensive, harassing and/or devaluing statements, developing and transmitting inappropriate graphics, or transmitting sexual or ethnic slurs or jokes. "In addition, systems cannot be used to solicit other employees, develop chain letters, communicate matters of private conviction or philosophy, permit unauthorized access, and so on," he says.
According to the policy, Information Systems managers must ensure that the computers, systems and networks that they manage are clearly operating in support of company business activities. Information Systems managers are responsible for immediately investigating and reporting any incident of misuse by an employee to the employee's manager.
Mike Carter, manager of Corporate Data and Information Security, says, "Managers should periodically remind employees about the proper use of company computer resources. In cases where there is suspicion of improper use, managers should discuss the problem with the employee in question and, if appropriate, involve Corporate Security." Where improper use has been clearly established, Mike explains that the employee should be dealt with in accordance with the Corrective Action and Disciplinary Policy (6.21).
"Employees are expected to use company-sponsored computer resources in accordance with this policy and to support company business activities," says Mike. "All potential misuse of the network and the computers should be reported to the appropriate Information Systems manager and/or supervisor."
For more information, refer to the Personnel Policies and Procedures Manual: Policy 6.03, Harassment Policy; Policy 6.06, Conflict of Interest; Policy 6.21, Corrective Action and Discipline; Policy 6.24, Employee Responsibility; and Policy 6.18, Employee Privacy.
To focus its efforts and increase market share in the MIS, transaction processing, financial, and telecommunications environments, Digital recently announced the following organizational changes in Product Marketing.
Consultant and Information Systems Marketing
Rose Ann Giordano has joined the Field Marketing organization as vice president, Consultant and Information Systems Marketing, reporting to Bob Hughes, vice president, Service Industry Marketing. In this position, Rose Ann will manage Digital's worldwide marketing and sales activities to the "Big Eight" accounting consulting firms such as Coopers & Lybrand and Touche Ross, as well as to selected key consultants. She will continue to work with Sales and Industry Marketing to convert a large number of MIS customers and chief information officers to Digital's style of computing. In this capacity, Rose Ann will report to Chick Shue, vice president, U.S. Sales.
Rose Ann has been vice president, Information Systems Business Group (ISBG) for the past two-and-a-half years. Since joining Digital in 1979, she has served as Technical Group marketing manager and Large Computer Group manager. She was named a vice president in 1984.
Corporate Systems Group
Bill Steul is heading a new Product Marketing group, the Corporate Systems Group, reporting to Peter Smith, vice president, Product Marketing. The new group will focus on corporate computing strategies and develop the product application strategies, systems and programs for Financial Services Applications, MIS Production Systems, and Telecommunication Applications. The System Marketing and Marketing Programs groups from ISBG will report to Bill.
The activities of the new Corporate Systems group will be closely aligned and integrated with those of the Financial Services and Telecommunications Industry groups, as well as with the marketing activities of the On Line Transaction Processing Business group.
Bill was Product Marketing manager for the Engineering Systems Group for the past two-and-a-half years. His background also includes more than 20 years' experience in senior financial and MIS management positions. Bill has been with Digital for 14 years.
Engineering Systems Group (ESG)
Don McInnis has been named ESG Product Marketing manager, reporting to Peter Smith. Don comes to Product Marketing from the Advanced VAX Engineering Group in Littleton. He has managed the VAX 8800, 8700, 8550, and 8500 program for the past six years, which included responsibility for engineering, manufacturing, customer service and product marketing. Don also was the product manager for the VAX-11/750. He has been with Digital since 1977.
In addition to managing the ongoing work of ESG, Don will help to establish a strong emphasis on Systems Engineering within ESG as a model for Product Marketing and the corporation.
On Line Transaction Processing (OLTP)
Digital has also formalized the role of the On Line Transaction Processing Business group. The group, which reports to Bob Glorioso, who is also its acting manager, is responsible for the OLTP strategy and for developing systems development, marketing and service plans.
OLTP is one of the fastest-growing markets in the industry. In an OLTP system, a user enters the data, and the system updates the database and responds to the user immediately. Common applications include automatic teller machines and airline reservation systems.
In response to employee questions, Digital engaged the University of Massachusetts' School of Public Health to perform an independent health study at the Hudson semiconductor manufacturing facility. The researchers interviewed 744 employees and 121 spouses of employees regarding a wide range of health conditions, including lung disease, kidney disease, headaches, nausea, sore throat, miscarriages and birth defects. They also asked about non-occupa- tional risk factors that might affect health, such as age, educational level, smoking, alcohol and caffeine consumption, medication and prior reproductive history.
The study found that wafer manufacturing employees were about two times more likely to have a miscarriage than those employees who did not work in wafer manufacturing. Other findings included an elevated incidence of self-reported headaches, nausea, sore throat, rashes and arthritis, and a reduced incidence of back problems.
The study found that over the course of five years, there had been 12 miscarriages in a total of 34 pregnancies among women in the wafer manufacturing area. This represents a miscarriage rate of 35.3%. In the control group, which consisted of employees in non-manufacturing areas at Hudson, there had been 71 miscarriages in 398 pregnancies, for a rate of 18%. (In the general population, a rate of about 20% is expected).
There were no other significant differences between the fabrication employees and the control group for the wide range of other health conditions included in the study. And wives of male employees did not have any increase in the percentage of miscarriages.
The study suggests there is an association between persons who work in chip manufacturing and an increased incidence of miscarriage. Although the sample of pregnant wafer manufacturing workers was small, the results were statistically significant.
Further research, with larger numbers of wafer manufacturing workers than those available at Digital, is needed to evaluate these results; and, if confirmed, to identify a possible cause for the increased incidence of miscarriage. Based on these findings, and at Digital’s prompting, the Semiconductor Industry Association is considering conducting a broad health study across a number of companies in the industry. And Digital is initiating follow-on studies with universities to help identify any potential causes.
Digital strongly encourages that pregnant women do not work in the wafer fabrication areas in Digital semiconductor manufacturing for the duration of their pregnancy. And, in fact, all pregnant women have chosen to leave that area. Digital is finding alternate work for them while they are pregnant, after which they may return, if they wish. Women of childbearing age also have the opportunity to leave the area and work elsewhere in the company, with no effect on their employment status and career opportunities within the company.
For employee convenience and to help diagnose pregnancies as soon as possible, Digital Health Services will arrange for confidential outside pregnancy testing for semiconductor fabrication and semiconductor fabrication support employees at their request and at company expense.
Some people think that you should look at quality on an affordability basis. They think that quality is costly and wonder if you can afford it. My view is that quality improvements and cost savings go hand in hand.
"I also believe that the dedication to quality begins at the top, and that, to an important degree, it's a frame of mind. An organization will usually watch the actions of management very carefully. If they see management acting in a way they believe reflects strong drive toward quality improvement, that attitude permeates throughout the organization relatively quickly," adds Jim.
Frank McCabe, manager, Corporate Quality explains that, "Everyone in the company is responsible for quality -- for working collaboratively with colleagues throughout the company, for developing quality strategies in each function and for approaching business from the customer perspective.
"Prevention is a key focus of the quality/customer satisfaction program. We should look at problems, identify the root cause of these problems and put processes in place to ensure these problems do not occur again.
"Our goal is to achieve sustained industry leadership in all dimensions of our business -- in terms of the reliability of our products from the component to the system to the network level, in terms of our predictability in introducing new products to the market and meeting our delivery commitments to customers, in terms of our business practices and transactions so that it becomes easy for customers to do business with Digital.
"We want to build partnership relationships with customers and become their trusted consultants as well as the industry vendor of choice.
"With the Finance organization, we've identified a cost-savings opportunity of about $1 billion a year. The objective is to reduce the excess costs associated with factors such as scrap and rework, return authorizations, field change orders and warranty and to invest in education, process control, quality improvement programs and other preventive actions.
"Digital has always been a quality-oriented company. The difference now is we will become a quality-driven company. Customers tell us we're leaders in our products, our architecture, our operating systems and our networking. Our goal now is to gain and to hold the leadership position in all the dimensions of how we do business with customers.
"It is a winning strategy. We gain in marketshare and in customer satisfaction. We also significantly reduce our business cost structure, allowing us the opportunity to make investments in areas important to our customers in the future — in products, in solutions and in the internal processes of the company. It is ultimately a win-win solution."
To learn more about how these managers view quality, the videotape "Digital's Commitment to Quality" can be ordered directly from Media Communications in Merrimack. A facilitator’s guide is included with each order. Send your request to HYSTER::LECLERC or LORI LECLERC @MKO (DECMAIL). Include your name, badge #, cost center, phone #, location, group name. Indicate order quantity and video standard (i.e. 3/4" Umatic, 1/2" VHS or 1/2" Beta. Outside the US, indicate PAL or SECAM).
A committee has been created to establish graphics standards in order to provide a more consistent and representative visual identity for the company. These standards are expected to maximize Digital's ability to sell products, particularly in new markets where Digital is relatively unknown.
"The mixed images people have of Digital are partially due to the fact that, to date, we have presented ourselves in an uncoordinated, fragmented manner. The work of this new Company Identity Committee (CIC) will help operating groups present a single visual image of Digital to all of our constituents, such as our employees, customers, arid stockholders," explains John Sims, vice president, Personnel and Administration, and chairman of the CIC, which is a sub-committee of the Executive Committee.
"We want people to see Digital as an excellent company; one whose products, people and services are all outstanding. We want people to associate excellence with every visual element related to the company. This includes our marketing and advertising campaigns, our customer publications, our packaging, our technical documentation, the signs on our buildings and our fleet identification.
"A coordinated company image and identity program can make us more productive. It will have a positive influence on the bottom line because it will open doors for our sales people, and it will focus the internal efforts designed to make us look as well as operate as 'one company'," concludes John.
All appearances of the company name, logo, products and literature will be affected by the identity program. In order to make certain that the appropriate Digital employees are involved in the design and support the implementation of specific graphics standards, various "work groups" have been formed. Each is chaired by a member of the Company Identity Committee.
Comments and concerns about the graphics standards should be referred to one of the following committee members:
o Pete Zotto and Ed Kamins from the MARCOM team, responsible for literature, fleet advertising, advertising, Public Relations, events and exhibits, audio visual standards, publications/periodicals, direct marketing, and sales communications;
o Paul Benigni from Product Design, responsible for fleet identification, product packaging and product recognition;
o Peter Phillips of Corporate Design, responsible for the use of the company logo, typography, and stationery system;
o Pat Cataldo from Educational Services, responsible for technical documentation (hardware and software), and Educational Services;
o Doug Hammond from RECO, responsible for facility signs;
o Jerry Witmore from Marketing, responsible for naming products;
o Marietta Ethier from Law, responsible for trademarks;
o Anne Kreidler from Personnel, responsible for employee/ internal communications; and
o Brian Coll from GIA, and David Cooper from Europe, representing these major geographies.
DECWORLD '87 will be held in Boston, Mass., September 8-18.
"We’ve lengthened the event to two weeks to accommodate more visitors, especially from targeted prospects," explains Dallas Kirk, DECWORLD '87 program manager. "We're planning to increase overall attendance by at least 50% and executive-level attendance by 100%.
"The primary objective of DECWORLD '87 is to educate and influence senior executives who make enterprise-level decisions. We will demonstrate that Digital can help executives integrate their enterprises in order to gain a competitive edge in their industries.
"We've designed DECWORLD '87 to support the total sales cycle -- from analysis of business needs to applications to corporate-wide computing solutions. Sales people will be able to select the sessions that provide the most educational impact for each customer.
Application solutions, products, and services—from both Digital and Complementary Solution Organizations—will be presented within an industrial business problem framework. Over the next few months, representatives from all groups will be working together to develop the marketing content for each targeted industry.
To increase local recognition of employees, a number of changes have been made in Digital's Service Recognition program, which honors employees for their length of service to the company. In particular, a framed, personalized service recognition certificate has been added, with the expectation that the employee's manager will give this certificate to the employee at a small local celebration on or about the employee's anniversary date. Such local presentations will not replace the luncheons and dinners that are held to recognize employees after every five years of continuous service.
Gift selections have changed, and employees will soon order their gifts from the vendor, who will mail the selections directly to employees' homes so they will receive them on or about their anniversary. Because of this change, employees who will celebrate a service anniversary this year should make sure their correct name and current address are on file in Personnel.
To avoid overlapping the new program with the old one, employees whose anniversaries fall in January, February and March of this year will receive their gifts after their anniversary date. From April on, employees will
Nipon Telephone and Telegraph (NTT) has been approved as a Corporate Account -- the first Corporate Account headquartered in Japan, signaling the beginning of new expansion of the Corporate Account program into strategic multi-national corporations based in the GIA Regions.
NTT is the largest telecommunications carrier in the world, and has been a Digital customer for over 15 years. It already has offices in 9 different countries including the United States, and it has created a new company called NTT International, which will be seeking opportunities to market communications systems and services on a worldwide basis.
The company provides a wide variety of telecommunications services throughout Japan including telephone, telegraph, telex, facsimile, videotex, data communication, and data processing. With nine laboratories of its own, NTT is heavily involved in telecommunications research and development. In particular, it has state-of the-art electronics technology in VLSI optical fiber cable, digital switching systems and satellite communications.
Previously government owned, NTT became a private company on April 1, 1985.
Ray Humphrey, director of Corporate Security, has been named "Executive of the Year" by Security magazine, honoring him for his leadership in the security field.
Ray is co-founder and president of the International Security Management Association (ISMA), which, according to the magazine, "has become the premier roundtable for security managers of the nation's largest corporations. His programs... at Digital and previously at Xerox, have been praised as industry models."
The magazine also cited Ray for emphasizing the "partnership" between security and other corporate functions. "If security is viewed as something separate and distinct from the corporate environment, then security may not be doing an effective job," Ray says.
Ray joined Digital in 1984. He previously served as director of industrial defense for the United States, and had consulted for corporations in 67 countries around the world.
Henry Crouse, vice president and group manager, has returned to the U.S. from his assignment as vice president, Manufacturing--Europe. In a new position, Henry will develop strategic relationships with organizations outside of Digital, adding technology and products to the company's capabilities. He will report to Jack Smith, senior vice president, Engineering, Manufacturing, and Product Marketing. Henry joined Digital in 1959 as assistant to the president. Since then, he has held a wide range of management and purchasing management positions within the company.
Gary Eichhorn has been named group manager for the Laboratory Data Products (LDP) and Artificial Intelligence (Al) Marketing groups, reporting to Peter Smith, vice president, Product Marketing. Gary joined Digital 12 years ago as an LDP Sales specialist. He has worked in technical sales, sales management, and corporate marketing. Most recently he served as Marketing Programs manager for Product Marketing.
Jeff Lane has joined Digital as a member of the technical staff, managing the software effort for the Workstation Systems Engineering group in Palo Alto, Calif. He reports to Steve Bourne, manager of the group, and is responsible for graphics software development. Before joining Digital, Jeff was manager of Advanced Product Development, Electro-Mechanical Division, Daisy Systems Corp., and was responsible for the specification and implementation of high-performance graphics and vector processing. Prior to that, he served as chief scientist at Vulcan Software, and was responsible for the specification and implementation of an advanced solid modeling system.
Jeff also served as senior engineer for the Boeing Co., where as project leader, he was responsible for developing graphics and solid modeling algorithms. While at Boeing, he developed a generalized modeling procedure for the interactive design of surfaces and solids. These techniques were subsequently used by Boeing, the University of Utah, Evans & Sutherland, and Structural Dynamics Research Corp, for various graphics projects. His article, "Scanline Methods for Displaying Parametrically Defined Surfaces" (1980), is now recognized as the definitive model for scanline surface display techniques.
Steve Wentzell has been named Human Resource manager for Channels Marketing, reporting to Dick Walsh, Personnel manager, Field Operations, and Jack MacKeen, vice president, Channels Marketing. Steve joined Digital in 1973 as the Compensation and Benefits manager for Manufacturing. He has served as group Personnel manager for the Corporate Materials, Corporate Distribution and Corporate Purchasing, and also as Personnel manager for Large Scale Integration (LSI) and the Hudson, Mass., site. Most recently he was a consultant in the Organization Consulting Group.
With the help of 2000 U.S. Digital employees and their managers, the Job Evaluation/Classification (JEC) Project recently completed a major part of its evaluation phase.
Chartered by the U.S. Compensation/Benefits Committee (USCBC) and the Personnel Management Committee (PMC), JEC's objective is to ensure that Digital maintains a consistent, credible and responsive method of evaluating jobs based on content and responsibilities.
Through internal and market comparisons of jobs, JEC will create a system of evaluating Wage Class 4 jobs in the U.S. The project will provide a job framework that will make it easier for managers to appropriately classify and compensate employees. Also, by helping employees and managers understand the similarities of work content among organizations, JEC will facilitate the movement of employees across Digital functions.
The first phase of JEC began this past fall when 2000 employees from 300 "benchmark" jobs completed a preliminary job evaluation questionnaire. With the assistance of Personnel organizations, these employees were selected because their jobs typified the work for a particular job code and they had been in the position for at least one year, which ensures job familiarity. These benchmark jobs represented a cross section of Digital positions that can be matched with similar jobs externally. With the support of their managers, employees provided detailed information about their jobs.
According to JEC Project Leader, Rick Carwile, "We are extremely pleased by the quality participation from employees and managers. We received more than a 90% return rate on the questionnaires; and our employees did an excellent job in providing us with a thorough picture of their job functions. The • questionnaires were lengthy, but necessary to ensure that we captured all the required details."
Compiled and processed by Personnel, the data was distributed to teams of senior line managers, representing all Digital functions. Participating in 19 evaluation committees, these managers compared jobs within the same job family for each of their functions. They based their comparisons on the following five job-related factors: participation in decision-making, effect on financial results, management or influence of people, problem-solving complexity, and qualifications required.
"The process of evaluating the jobs was extensive," notes Ilene Jacobs, vice president/treasurer and chairperson of the Finance Evaluation Committee. "Prior to our two-day meeting we reviewed the questionnaires at length. We then spent considerable time together discussing the jobs to make sure that all committee members understood every job. JEC is a complex and time consuming project, but we can already see that it is a necessary undertaking for Digital. Most importantly, it has required the commitment of all line organizations. It simply couldn't be done any other way."
"The JEC project has given us a unique opportunity to closely examine current job functions as well as significant work differences and similarities," adds Bill Ferry, U.S. Software Services manager and chairperson of the SWS Evaluation Committee. "We are very pleased with the results so far.
The process was thorough and well documented, and we look forward to the next step of the project -- integrating our data with that from other Digital organizations."
During the rest of Q3, the 19 evaluation committees will merge their results to build consistent job-related standards across the U.S. The process will include a series of meetings between chairpersons and their committees to reach a consensus across all functions. This work will lead to the establishment of job hierarchies and salary ranges, and a new way of evaluating work and classifying individuals into jobs.
Then the implementation process begins. First, based on this evaluation methodology, a new multiple-choice, job-profile questionnaire will be administered to a large number of the remaining U.S. Wage Class 4 employees in QI of FY88. In late spring/early summer, Personnel and managers will be trained to administer the survey. Personnel will provide their functional organizations with technical support, guidelines and tools for communicating with employees.
"Managers will remain the key source of information for their employees. We urge them to keep their people well informed before and during implementation of the survey," states John Sims, vice president, Personnel and Administration. "We are reviewing job titles, job codes, job families and salary structures. At this point we do not know all the final results of the project; however, we want to set expectations today that there will be some changes in these areas. By staying informed about JEC's purpose and process, we expect that U.S. employees and managers will find it easier to understand and assimilate changes as they occur."
John continues, "Since managers and supervisors will be responsible for administering the program on an ongoing basis, they are extensively involved in the development process. They will also be furnished with newly created tools to assure correct classification of employees into appropriate jobs. With management's participation, we can be sure that Digital's pay program continues to be competitive and equitable."