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Volume 6, #4____________________________________________________________________ June, 1987


In Memoriams General Georges F. Doriot


Digital Sponsors New Science Series For Television


Business Protocol — Being Sensitive To Customer Needs by Jack Shields, senior vice president


DECWORLD ’87 Update


Digital Awarded Two Major U.S. Government Contracts


New Purchasing Procedures In Effect




Medical Review Expands To Cover All John Hancock Plan Members

In Memoriams General Georges F. Doriot


General Georges Doriot, who, in 1957 as head of American Research and Development Corp., provided the investment capital to start Digital, died on June 2, at the age of 87. He had served as a member of Digital's Board of Directors since 1972.


"His goal was to nurture, encourage and help businesses," observes Ken Olsen, president. "This is quite contrary to most risk capital organiz­ations. The General was patient with companies when they were not doing well, and when they were doing well, not selling short to turn a quick prof i t.


"His influence on Digital was quiet, cautious, often indirect, but very effective. He defined 'excellence' as 'a degree of gratefulness, a compli­ment to somebody who is hard up and needs help, another minute given to your work, another idea applied to your product, a help to your superior. Excellence is that tiny quantity which can do so much.'


"To the General, excellence included sensitivity and graciousness to others. In the workplace it included a sense of responsibility to the entire organ- i zation.


"His thinking and Digital's history and values are intertwined."


General Doriot grew up in France and came to the United States in 1921 to attend the Harvard Business School. There he became assistant dean, asso­ciate professor and eventually professor of Industrial Management. In World War II he rose to the rank of brigadier general in the U.S. Army, serving as director of military planning for the Quartermaster Corps and deputy direc­tor of research and development for the War Department general staff. After the war, he returned to teaching and also became head of American Research and Development Corp., a venture capital firm that helped start some 150 companies, including Digital.


For 35 years, up until his retirement in 1966, he taught a course entitled "Manufacturing," that was intended to imbue students with his ideals of how a business person should behave. Almost 7,000 students took his course. "The top and middle ranks of U.S. industrial leadership todav include many whom Doriot helped get what he calls a 'running start,'" noted Fortune Magazine in March 1979.


Digital Sponsors New Science Series For Television


Digital and WQED, a public television station in Pittsburgh, Penna., have joined in a multi-million-dollar project to bring a high-quality scientific series -- "The Infinite Voyage" — to both public and commercial television in the U.S.


The concept behind the series is discovery — looking at how today's science is leading to new areas of knowledge. "Perceptions," the first show, to be aired the last week in October, will look at some of the tools that science is using to make its discoveries.


The 12-part, three-year series will be produced by WQED in association with the National Academy of Sciences. It will capture the adventure of today's age of scientific discovery, taking viewers on journeys to the limits of space, the depths of the sea, and the interior of the human body.


"The Infinite Voyage" will be shot throughout the world, using location footage, computer animation, and special visual effects to tell the stories « behind new ideas and technology, scientific revolutions and discoveries. A panel of experts from the National Academy of Sciences will provide input and ensure that the program is historically and scientifically accurate. The producers previously did such shows as "Cosmos," "Planet Earth" and National Geographic specials.


"While our print advertising has been very consistent, print is limited in the number of people in our target audience we can reach," explains Henry Heisler, Corporate Advertising manager. "To get more exposure to this audience, Digital was looking for quality television programming, consistent with its philosophy and style, that could serve as an appropriate context for its messages. The Infinite Voyage should provide that quality context."


This is the first time that a Public Broadcasting Service station will create a major series for release to both PBS stations and a select group of commercial stations in major metropolitan areas. Involved in the project from the very beginning, Digital is "underwriting the production" — cover­ing the production costs so the programs can be created.


"This is an imaginative approach to television programming and corporate sponsorship," said Win Hindle, senior vice president. "This new series will result in an exciting run of PBS-quality programming on commercial televi­sion, and a uniquely high-quality environment for Digital to reach its critical audience. It creates an entirely new way for private organizations to fund public television.


"Public television in the U.S. is well targeted at a top management audi­ence, but only allows an "underwriting credit," no commercials. Using commercial television as well, will make it possible to run messages with the program in important geographic areas. The commercial messages will focus on networking, service and community involvement.


Business Protocol — Being Sensitive To Customer Needs by Jack Shields, senior vice president


As a company we have made tremendous progress over the past several years in presenting ourselves to the world at large and to individual customers. Our image in the marketplace has often been enhanced by the professionalism of our people who deal freguently with customers. Now we need to apply a consistently high standard on all occasions when we host business visitors.


Because of our current image and strength in the marketplace, business protocol is becoming increasingly important. By protocol, I mean everything that has to do with customer relations, including how we treat visitors and how we handle people on the telephone. Protocol often means plain common sense, good manners and deference to those we wish to serve. Often, it refers to the careful planning and execution of a customer visit.


Planning in detail for every customer visit to a Digital event has to be done in advance. It must start with a clear understanding of the visitors' specific objectives and expectations. These expectations must be shared with other appropriate Digital people who have a role in the visit. Once the detailed agenda has been finalized, commitments must be kept. A broken commitment for participation is a serious breach of etiquette.


The correct handling of the logistics surrounding a customer visit is critical to the success of the overall event. This includes smooth handling of all arrangements, such as transportation, accommodations, schedules, visitors' badges and escorts for non-public areas, clear communications on arrangements prior to the visit (including a clear list of the people and titles) and arrangements for food (being sensitive to customer preference). Poor handling of these issues is probably the easiest way to create incon­venience and frustration that may overwhelm the other positive activities that our guests experience.


One topic deserves extra attention. When our guests are introduced, you should always be very clear about their name and title, and, likewise, the names and titles of the Digital people involved. If introductions are fumbled, it creates the impression that we are not very clear about what the person does; and that is very unprofessional.


Planning the logistics of a customer visit often involves several groups, dealing with transportation, catering, etc. Responsibility must be clearly defined and understood.


Detailed planning for a customer visit must be done with the same sensi­tivity and awareness that the visitor will have during the visit. Put yourself in the role of the visitor — before the visit. For instance, be sensitive to the use of products made by the customer's competitor (e.g., the beverage you serve when someone from a beverage company visits).


We should always respect our visitors' need for privacy. For instance, it is unwise to host two competing companies on the same day.


At the end of a visit, we want our customers and guests to go away with the business information on our products and solutions that they need and a very positive impression of Digital. They should not be distracted by an issue they perceive is a discourtesy while they are in our care.


Since our Sales and Account managers are the primary contact with customers, it is their responsibility to make sure that we exercise appropriate busi­ness protocol. But everyone at Digital should be aware of and sensitive to these issues and help to make customer visits and all other customer con­tacts as positive as possible.


DECWORLD ’87 Update


To be held in Boston, Mass., September 8-18, DECWORLD '87 is being designed as an educational experience for the senior management of all of Digital's strategic accounts. Worldwide in scope, DECWORLD '87 will be set up to accommodate a large number of simultaneous customer visits. It is not a trade show, and attendance will be by invitation only.


The DECWORLD ’87 message is: "Your competitive advantage is 'the network at work,’ integrating your enterprise — business organization, departments, people & work groups — with the best service, best integrated applications, best systems and best networks." Digital has it now, and here it is.


Each Marketing group is developing extensions of this message for their theme material. The standard program consists of sessions (9 AM to 4 PM), displays (10 AM to 6 PM) and events for special audiences in the morning and evenings.


Attendees will plan their stays around "industry tracks," roadmaps to assure they receive the messages that are most important for them, and, also allow time to explore peripheral interests. Each track covers two days and includes special display tours for strategic accounts. There are defined tracks for every industry for which Digital has an active marketing group.


A CEO track, for chief executive officers and presidents only, will include a special half-day session, a special tour, and evening hospitality with dinner.


The two-day cycle will include about 100 sessions, all held in the World Trade Center and on two ships (the Queen Elizabeth II and the Oceanic). About 20 sessions will run consecutively in five hourly time slots.


The exhibit (about 350 displays) will be divided into three functional areas:

o Field Office and Theatre — reception and orientation point),

o Digital Difference Area — a display showing Digital's technology and how Digital uses its own products, and

o Industry Areas — displays showing complete solutions in simulated industry environments.


The exhibits will be integrated and networked as though the floor were a worldwide conglomerate. The headquarters will be in the Digital Difference Area, and each industry area will represent an operating company of the conglomerate.


A major program to prepare the Field for DECWORLD is in development. The Sales tools will include video and audio tapes, a program preview for use with clients, and a how-to-call-on-executives sales guide.


The total capacity of DECWORLD '87 is limited by hotel rooms to 36,000 clients. Plans call for sales representatives to accompany their customers.


Digital Awarded Two Major U.S. Government Contracts


Digital was recently awarded a contract with a potential value of $114 million to supply the U.S. Air Force with computer systems for research and development of air defense systems. This was just ten days after Digital won an $80 million contract, to supply VAX computer systems to the Bureau of the Census, U.S. Department of Commerce.


Under terms of the Scientific and Engineering Worksystems (SEWS) program award, Digital will supply the Air Force with VAX 8650, MicroVAX II and MicroVAX II/GPX computer systems, field service, software service and training. These systems will be used to generate three-dimensional graphics for research, design and simulation of sophisticated air defense systems, and will be deployed at U.S. Air Force installations throughout the world.


The systems sold to the Bureau of the Census will be used in the 1990 Census and also for the 1987 Economic and Agricultural Census, statistical analy­sis, and development of a geographic data base. Under terms of the six-year contract, Digital will provide VAX 8000 series and MicroVAX II computer systems; training, field service and software, including data bases, lang­uages and applications software. When installation is complete, the Census Bureau will have VAX 8000 computer systems in its headquarters in Suitland, Maryland, and in its field offices, and will deploy 450 MicroVAX Ils in district offices across the country.


New Purchasing Procedures In Effect


Over the last few years, Purchasing at Digital has grown to almost $3 billion per year, and the old methods for managing and controlling this business required major updating. A completely revised Purchasing Policy and Procedures Manual, released to Purchasing professionals in February, provides the foundation necessary for effective internal controls and will be the basis for internal audits.


People who often deal with the Purchasing organization should take the time to read the sections applicable to their activities. To obtain a copy, contact: Alan Keiran at at DTN 234-4881, (617) 351-4881, by VAXMAIL at NRPUR::KEIRAN, or by DECMAIL @NRO.




Alan Fink has joined the Basic Industries Marketing group as Automotive Industry Marketing manager, reporting to Jerry Paxton, vice president, Discrete Industry Marketing. Al joins Digital from the Allen-Bradley Co. in Detroit, where he was account manager for General Motors, Chevrolet-Pontiac- GM of Canada Division. He holds a bachelor's degree in computer science from Ohio State University in Columbus, and an M.B.A. from Case Western Reserve University, Cleveland.


Jim Isaak has joined Digital as POSIX* Strategy Director in the Systems Software Group in Merrimack, NH, reporting to Paul Metz, acting Ultrix Base Product Marketing manager. He will be primarily responsible for POSIX standards issues. POSIX (Portable Operating System Interface) is an IEEE standard intended to provide for the portability of applications between multiple vendor systems. Jim is the chairperson of the IEEE working group which developed the 1003.1 POSIX standard for an operating system environ­ment based on UNIX** Operating System. He is also the proposed convenor for the ISO working group dealing with a POSIX-based operating system standard. Prior to joining Digital, Jim was Director of Strategic Marketing at Charles River Data. He holds an MSEE Computer Engineering degree from Stanford.


Francis Mecler has been named Corporate Toxicologist, reporting to Jim Stewart, Corporate manager of Industrial Hygiene and Toxicology. Frank will provide support worldwide to Health and Safety personnel, managers, medical personnel and Product Safety Groups. He joins Digital from American Cyana­mide Co., where he was the Occupational Toxicologist for the Medical Group at the Pearl River site. Previously, he worked in contract toxicology laboratories as a study director, designing and conducting studies for a wide variety of clients. He received his Master of Science and Doctor of Science degrees in Toxicology from the Harvard School of Public Health, Boston, Mass.


Linda Moore has joined the Product Marketing Staff as manager for the Product Marketing Strategic Programs Group, reporting to Peter Smith, vice president, Product Marketing. She replaces Gary Eichhorn, who became LDP Group manager in February, and Barry Nay, who has returned to Geneva after temporarily assuming this role for the past three months.


Linda joined Digital in 1977. She has held positions in operations manage­ment and strategic planning, and has spent the last four years as the manager of the Earth Resources Engineering Marketing Group. She has bache­lor's and master's degrees from the University of Vermont.


Bob Nealon has been named manager of U.S. Geographic Operations to Harvey Weiss, vice president, U.S. Sales Operations and Systems Group. In this position, Bob will be responsible for sales operations for Digital's end-user, government and volume (OEM) customers, working in concert with the area sales teams. Bob joined Digital in 1977 with the Laboratory Data Products group, where he was F&A manager and marketing manager. Most recently, he managed U.S. End-User Operations. Prior to joining Digital, Bob held positions at Sanders and General Electric. He holds a bachelor's degree and an M.B.A. from Boston College.


John 0'Keefe has been appointed Indirect Channels Group (ICG) manager, reporting to Jack MacKeen, vice president, Channels Marketing. John re­places Jim Willis, who has moved to Applications Marketing with responsi­bility for sales, marketing and distribution systems, reporting to Henry Ancona. John has spent the past two years managing the implementation of the Area Marketing function, first established when the Channels Marketing Group was created.


Gerry Olsen has been named Corporate Purchasing controller, reporting to Ron Payne, Corporate Purchasing manager, and Harry McKnight, Corporate Opera­tions controller. Gerry joined Digital in 1980. Most recently, he had been Finance manager for Corporate Litigation issues. His background also includes senior financial management positions with Raytheon and General Electric. Gerry is a graduate of Boston College and holds an M.B.A. from Boston University.


John Perry has been appointed European VLSI manager, reporting to Dick Esten, European Group Manufacturing manager, and Bill Robinette, Semi­conductor Manufacturing and Technology Group manager. John will be respon­sible for establishing a VLSI organization in Europe which integrates European requirements in all aspects of semiconductor operations. His initial project is to establish Digital's Edinburgh site as a state-of-the- art wafer fabrication facility. He will also integrate other semiconductor activities within Europe to ensure an overall cost effective organization. John has most recently served as Semiconductor Manufacturing Operations manager in Hudson, Mass.


Kathy Robbins has been named JEC Implementation manager, reporting to Harvey Jones, manager, Corporate Compensation and Benefits. She is responsible for working with Personnel and line organizations to implement the Job Evalua­tion and Classification (JEC) system which is currently under development. Kathy joined Digital in 1974 and has held Personnel and line positions in Manufacturing, the Field, Marketing and Engineering. She holds a bachelor's degree in political science and a master's degree in public administration from the University of Iowa and has attended the Program for Management Development at Harvard Business School.


* POSIX is a trademark of IEEE


** UNIX is a trademark of AT&T


Medical Review Expands To Cover All John Hancock Plan Members


As of July 1, 1987, Digital's John Hancock Medical Plan members across the U.S. will be covered by the Medical Review program, which has been phased in over a period of three years. Nearly 76% of the plan members have been subject to Medical Review since the program began in 1984.


In June, a brochure about Medical Review was sent to each plan member at home. It introduces the program to those not now covered and reminds those who are covered. The brochure also announces recent changes that make it easier than ever to initiate Medical Review and to get a referral for a second surgical opinion.


How Managers Can Help


It's the responsibility of each employee to ensure that he or she initiates Medical Review when necessary. But, in some cases, managers could play a helpful role.


One opportunity is when an employee informs the manager that he or she must go into the hospital or has been admitted in an emergency. The manager should ask if the employee is a John Hancock Medical Plan member and, if so, whether he or she has initiated Medical Review. A manager also can help if an employee mentions surgery. The manager might remind the employee that John Hancock's referral service can help find an independent doctor who will provide a second surgical opinion.


Primarily, managers can help by understanding the Medical Review program well enough to answer employees' guestions not only about the procedures, but also about the reasons the company uses Medical Review.


Advantages of Medical Review


When employees use Medical Review, they are enlisting an objective medical agency to help them ask the hard questions when their doctors advise a hospital stay or surgery. Questions like, "Do I have to go into the hospi­tal?" "If I do, when can I go home?" and "Is the operation really neces­sary?"


Getting answers to these questions is what Medical Review is all about. No one wants to be hospitalized if he or she does not need to be. Most people would rather rest at home than stay in the hospital longer than necessary. And all employees are entitled to receive the maximum benefit that their medical plan offers.


When employees follow Medical Review procedures to certify their hospital stays, they will spend only the required time in the hospital. When they get a second surgical opinion, they may avoid unnecessary surgery or, if they have the surgery, they'll have peace of mind knowing that there were no better alternatives. In either case, they will also receive their maximum medical benefit.


If employees do not follow Medical Review procedures, they will owe 20% of the hospital room and board charges for any days they spend in the hospital that are not certified by the review agency as medically necessary. And if employees do not get a second opinion for certain surgical procedures, they will owe 30% of the surgical expenses.


Digital is making it easier for employees or their family members to initi­ate Medical Review. They now need only call the regular John Hancock Claims Office number: DTN 223-3300 from inside or 1 800 DEC-2060 from outside Digital. They no longer need to complete any forms to initiate their Medical Review. John Hancock will contact the proper review agency to get the review moving.  privacy statement