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