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Volume 8, #6___________________________________________________________________ August, 1989


Letter From Ken Olsen


Stimulating Employee Involvement: "You Make A Difference" by Alan Zimmerle, Senior Consultant, Employee Involvement


Digital Europe Realigns Operations To Meet Challenges Of The 1990s by Pier Carlo Falotti, President and CEO, Digital Europe


U.S. Field Prepares For Next Decade With Workforce Planning by Tom Colatosti, manager of Organization and Workforce Development for the U.S. Field


Globalization And The Need For Digital To Adjust To Changing World Trade Conditions by Cliff Clarke, manager, International Trade Policy


Managing The Introduction Of New Technology To The Workplace by Charles Abernethy, manager, Human Factors


Corporate Operations Committee Created


Dave Sager Promoted To Senior Consulting Engineer


Field Service Renamed Customer Services



Letter From Ken Olsen


Some economists are still predicting a continued downturn in the U.S. economy but our overseas business remains strong and, with our constant flow of new and improved products, I believe we are in a strong position in the marketplace.


Our investments in products are continuing to pay off. We recently announced a wide range of hardware and software products that give customers more powerful VAX and RISC systems at a lower price. With the new UNIX-based RISC systems, we can offer a complete product family using this operating system. Thus, we allow our VAX customers to combine UNIX-based machines with the robustness and richness of VAX/VMS systems. This, in addition to our expanded Network Application Support (NAS) puts us in a stronger competitive position, especially when it comes to integrating and networking different systems.


One of our problems over the past year has been that we really haven’t made our product message clear in some parts of the company. As a first step in eliminating this problem, we created Digital University. This summer, sales people from the U.S. and GIA are taking classes to learn more about our products and competitive position. This type of investment in our people should pay off, as well as our investments in technology. In the last year, we also have put over 2,400 more sales support people in the Field and increased our total involvement with the customer. We are simplifying our internal systems so that our sales people can spend more time with their customers.


However, we can’t get comfortable or try to convince ourselves that everything is better. The challenge ahead of us is to change with the technology —to change the way we work.


Stimulating Employee Involvement: "You Make A Difference" by Alan Zimmerle, Senior Consultant, Employee Involvement


The intense competitive environment in which we operate is forcing us to make changes in the way we work and, at the same time, to learn to manage change. It is becoming increas­ingly clear that we need to involve all employees in achieving our overall business goals, especially in the areas of quality, productivity, and expense reduction or avoidance.


Recently the Executive Committee asked for a framework for employee involvement at Digital. We intend to launch a company-wide effort in September which we’re calling "You Make a Difference." Simply put, we want to accomplish the following:


o Invite employee ideas and other forms of participation to help improve quality and productivity and to control costs.


o Demonstrate that constructive employee participation is valued.


o Convince employees that everyone manages valuable resources and has a responsibility to manage them carefully.


o Help all employees feel a sense of ownership in Digital.


This effort should be a catalyst and a valuable resource to those organizations that do not have a system for involving employees. We recognize that some organizations already practice employee involvement. That work should be reinforced — perhaps further stimu­lated — by the company-wide effort that kicks off in September.


Employee involvement systems have been in use for nearly a century. They range from relatively simple idea or suggestion systems, to problem-solving or quality circle groups, to high-performance or self-managed work teams. Each approach represents change and requires both an investment in time and energy for implementation. We have developed a few company-wide standards, but organizations will determine what type of system works best for them.


Obviously, some internal assessment is necessary before an employee involvement system can be implemented. For example, an idea or suggestion system is not likely to succeed in a group if a manager has not yet opened channels of communication with employees. It’s important to determine the readiness of an organization before an employee involvement system is implemented.


As managers, you have two roles in employee involvement systems. First* you are an em­ployee, and your ideas are valued. The first role you will play is as a participant. Secondly, for an employee involvement system to succeed, you need to encourage your em­ployees to participate, listen to and acknowledge ideas, and act on the good ones.


The involvement systems will allow all employees to grow and develop, and provide more creative solutions to issues and opportunities. If we all dedicate ourselves to making the systems work, they can make us better managers and better listeners, and cause us to recognize, understand, appreciate and value the differences among all of our employees.


We will support your efforts by supplying materials to help kick off the effort, articles in employee publications, and training programs that support system implementation; and by organizing a network of experts to provide consultation as needed.


Employee involvement is critical to Digital’s success.


Digital Europe Realigns Operations To Meet Challenges Of The 1990s by Pier Carlo Falotti, President and CEO, Digital Europe


(Based on a presentation made to employees in Geneva on May 10.)


Changing technology is creating new challenges in the computer industry. Machines today have more power and at a lower cost, and this trend is going to continue for the next 10 years at least. This means that you sell more power in smaller and smaller units. The negative side of that is that a smaller unit costs less, so you have less revenue and therefore a smaller profit per unit, as well as smaller service revenues from that part of our business.


While the trend to smaller, more powerful units is great for customers, it is causing computer manufacturers and suppliers to dramatically change their strategies and to scale down their earning expectations. For Digital, the results of this trend are most apparent in the US. Digital Europe hasn’t been severely affected yet, but the trend is a worldwide phenomenon.


Given these circumstances and with 1992 around the comer, Digital Europe has to make changes now in order to continue to prosper. This involves rethinking the role of cen­tralized operations and headquarters, restructuring in order to get even closer to our customers and slowing the growth of expenses.


Think of two cars on a highway, the one in front being a "revenue generator," the one following being an "expense-related" car. One is essential to the other. The first car cannot run without the second one. They are both important.


If the first one slows down, the second one has to stay behind for support, not pass it and certainly not crash into it. To win, the first car has to go faster and faster. The problem today is that the definition of "faster" has changed.


Extending the analogy to growth in the computer industry, a few years ago, 30-40% annual growth was uncommon. Today, 10-20% is more the norm, and Digital must adjust. To gen­erate 20% growth today, you need to sell a mountain of machines. It takes a lot of pro­

grams, a lot of activity, and a lot of imagination to keep the car at a speed with which we feel comfortable.


With Digital’s innovative spirit, there is no reason we can’t continue to outpace the industry. But what happens in the second "expense car" is the crucial ingredient to future success. Revenue growth will slow no matter how many innovative programs we de­velop; and, if a balance isn’t struck, profits will not be sufficient for future needs. That’s why we must act now.


Last year, when we missed Q3 FY88 badly, it took us a year to reduce the speed of the second car to match the front car. It took us four quarters to get expenses down.


The problem is that nobody believed they needed to cut expenses themselves. It’s always the "other guy." So it takes a while to adjust the distance between the cars.


To make matters more difficult, there is the issue of pricing. Today almost every vendor claims to offer the same products at cheaper and cheaper prices. On top of that, a number of our competitors who are in financial trouble are dumping their products on the market at almost any price. Thus Digital’s price-competitive situation is becoming more diffi­cult.


The solution is to review why and what we do in both cars in order to simplify our work and reduce expenses in line with our growth.


First, we are going to create the necessary flexibility by creating smaller units. I believe some of the country operations have become too big with too many people who pro­vide support, and too few who do things related to the customer.


So we’ll decentralize to smaller units, with clear objectives, closer to the customers and with authority to make decisions. All of today’s hierarchy of power doesn’t make sense. So, we’re giving all the power to the people in front or near to the customer.


Over the next three years Digital Europe will optimize its structures at all levels to ensure that we have the right people in the right place, doing the right tasks. However, in order to accomplish this there will be no wholesale movement of staff out of central operations. Studies will be undertaken to determine which jobs are strategic and which are operational, and how work can be simplified at all levels of the company.


If we want Digital to continue to be healthy we have to achieve this result by reducing complexity and retraining our people in line with the new activities we will need, and in total, reducing expenses; that is, not running bumper to bumper in our two cars.


From a management point of view, work will be simplified, fewer people will be hired, and


the company will draw more on already-existing skills. Individual employees can contri­bute by cutting back on waste around their offices and plants, reducing the number of meetings they attend, and even analyzing whether their current job is really necessary. The sooner employees do this, the sooner we have a chance to retrain, re-skill or find another place where they can have fun again. The sooner we know, the sooner we can pro­vide an alternative.


In the final analysis, the company has no choice. I want to continue to make Europe successful, and I think the way to succeed is to continuously adapt to these changes, to lead these changes.


In summary, Digital will have to adopt more prudent business plans, meaning planning to spend less, and doing a little more to increase our revenues. We have to be less naive about our future results. And we also have to continue to attract, motivate and keep the best employees.


U.S. Field Prepares For Next Decade With Workforce Planning by Tom Colatosti, manager of Organization and Workforce Development for the U.S. Field


We need to build new skills and rethink how we work to meet the competitive challenges of the 1990s. We’re trying to ensure that we have an organization and a workforce that strengthens our competitiveness by being adaptable and effective. We are positioning ourselves for the long term, which means having the right resources in the right place, organized in the right way to ensure our long-term competitiveness. Our overall program, "Digital: the Next Decade," is designed for the U.S. Field, but the implications extend to the whole company.


Simple hiring freezes, designed to reduce costs for the short term, limit our ability to make necessary replacements and to hire people needed to develop important new business. We need to systematically determine what parts of the Field organization need to grow and, at the same time, identify work that is no longer needed. This enables us to concentrate our resources appropriately and still meet our overall cost goals.


In other words, to invest in one part of the company — perhaps hiring UNIX engineers or networking experts — we may have to "disinvest" somewhere else. Otherwise we could miss important opportunities to meet new customer needs and win new business.


To determine our priorities, we need to rethink our business models on a country-wide basis to determine how many people we need where and what kind of work they should be doing. To help in this work, we’re setting up a committee with representatives from each of the U.S. Field businesses, including Sales, Marketing, Enterprise Integrated Services, Customer Services, Finance, Personnel, Administration and Manufacturing.


For instance. Customer Services needs to make huge investments in value-added networks and servicing competitors’ equipment. At the same time, in Sales and Software Services such technologies as UNIX, clusters, networks and enterprise integration are becoming increas­ingly important. In addition, we always need to identify opportunities to improve cus­tomer satisfaction and the quality of our products and services.


If, as is the case right now, we can’t afford to hire all the new of people to address all these opportunities, then we have to learn how to stop doing some things and shift our resources. So, while we’re trying to identify the new needs, we’re looking at changes such as organization and productivity improvements that might free up people who can deal with these new requirements. We then need to help match the right people to the right jobs, offering support and counseling for reassignment, retraining, reskilling and relo­cation. Tied to these efforts, we will need new policies and metrics that prioritize corporate objectives over those of individual functions, departments and cost centers.


Through this committee we plan to identify and publish all of the openings across all of the U.S. Field businesses. Already, we know of hundreds of job openings in Sales and Sales Support. We believe that we already have, the talent inside the company, and we want to fill those positions from within. One of our approaches will be the use of internal career fairs or opportunity days to enable groups with job openings to recruit.


The first "career opportunity" event was held in Marlboro from Aug. 8-10. Over 3800 employees from all organizations attended to learn about a wide variety of opportunities.


As a long-term effort, we are motivated by the fact that there are only a limited number of people in the world with the skills that Digital needs. We are facing a dwindling worldwide talent pool, which is in sharp contrast to the 1970s when it seemed that labor was an infinite resource. Then, all we had to do was run an ad in the newspaper and hundreds people would apply. Now, skilled people are becoming increasingly scarce and are ever more important assets to the company.


We want to keep the people we have, retrain them to meet new business needs and continue to benefit from their previous Digital experience. In many cases, it takes longer to acclimate a new person to the Digital working environment than it does to retrain a Digi­tal person for a new job.


In summary, this is a program of opportunity. We’re trying to organize ourselves to win and to be effective. We want to be leaders in our industry and in how we dynamically reallocate and reskill people.


Our employees are assets. We want to invest in them, enhance their skills and develop them; and we know that there will be a return for this effort.


This whole process will give employees more career choices. For instance, some people who started their careers in Finance, Personnel or Manufacturing may want to move into a business unit or become a sales or sales support person.


While we implement plans to respond effectively to market demands, our number-one priority is to develop and deliver all programs in a manner that is consistent with Digital's values and traditions. We encourage all employees and managers to look to new challenges, and take this opportunity to learn the skills that will benefit both themselves and the company’s long-term competitiveness.


The Expanding And Changing Role Of Manufacturing by Lou Gaviglia, vice president, U.S. Manufacturing


Since the creation of the U.S. Manufacturing organization last year, the "job of manufac­turing" has been expanding in four directions. We are working much more closely with Engineering and the Field, and with vendors and customers.


The roles and responsibilities of the plants have been increasing. We focus on their ability to be profitable, to improve quality, to improve customer satisfaction, to have more flexibility, and to improve cycle times. The plants now have long-term product alignments and are building long-term relationships with specific Engineering groups.


For example, Albuquerque, N.M,, has built an excellent relationship with the Workstation Group, which has led to timely product announcements, rapid product ramp-ups and high quality. Similarly, Burlington, Vt., works closely with the engineers in High-End Per­formance Systems and also with the Manufacturing people in Cupertino, Calif.


The main advantage that has come from the creation of the U.S. Manufacturing organization is that we now have one focus across the country. The country team, the districts and the industry groups have one manufacturing focus to satisfy the customer.


The main part of our work with the U.S. Field has to do with planning. We want to make sure that our Manufacturing plan is synchronized with the rest of the country plan. Close communication is important so we can ensure that we are making what Digital needs when it is needed. That means we can satisfy more customers more promptly. Today, because we’re able to track customer demand closely, we build to order rather than to schedule, which leads to lower inventories and other efficiencies.


Working with Mike Kalagher’s people in U.S. Administration, we’ve made great progress in the area of customer distribution. We now have only one Customer Distribution Group that includes our Fast Ship Program in Nashua. N.H., along with Phoenix, Ariz.; Colorado Springs, Colo.; Contoocook, N.H.; and Westminster, Mass. That has lowered cost, improved delivery, and has reduced scheduling slips throughout the U.S. At the same time, working with John Alexanderson’s Installed Systems Group, we have significantly increased the menu of products that we can ship quickly to customers.


We are also working more closely with our suppliers, getting more involved with their schedule and quality and specifications, so they can help us improve in the areas of inventory and quality. In particular, our Augusta, Maine, plant has been working with General Electric, a supplier of important components in the communications gear they make.


Using an Electronic Data Information (EDI) application that they developed themselves, Augusta’s Manufacturing people can allow managers at General Electric to look at relevant parts of their data base. When Augusta sees a change in demand from a Digital customer, General Electric immediately sees a change in the demand for the parts they supply Augus­ta. As a result, the General Electric plant is becoming a natural extension of our busi­ness in Augusta. Digital is now considering making this EDI application a corporate product.


Meanwhile, we’re building strategic alliances and collaborating with the Manufacturing people of our major customers. For example, I’m the Executive Partner for five accounts as well as for Pennsylvania. I’m also the USMC Employee Communications Partner for the Northeast Area. This allows me, representing the Manufacturing function, to bring a different perspective to the Field, and it allows the Field to help Manufacturing under­stand their issues, problems and concerns.


We have a variety of related programs whereby people from Digital Manufacturing help sell Digital products because of their manufacturing experience and knowledge. At the same time, we learn from customers and bring that information back to our organization so we can continue to improve.


While the Field is organizing around industries, Manufacturing increasingly needs that kind of industry expertise as well, so we can talk to customers in their own language about pertinent applications and solutions. We’re going to have to develop and train some of our people in that direction.


Another new area of customer contact is opening up as Digital takes on major projects. For instance, our manufacturing people are working closely in collaboration with Russ Gullotti’s Enterprise Integration Services Group on a major project for Boeing. Digital is the prime contractor for building and setting up a new Boeing manufacturing plant fqr sheet metal; and Mike Dolan, from U.S. Manufacturing, is the overall project manager.


We are now planning for future business of that kind. We’re working with the Phoenix, Ariz., plant to train and develop people and to get software tools and systems in place. Already, we have people in Manufacturing in Phoenix who develop software — Manufacturing applications tailored to the specific needs of customers. And soon we’ll need more soft­ware people, project people and program managers. We’re gearing up to make sure we will have trained people available who are ready and willing to move to a customer site to work on large projects.


In other words, the "job of manufacturing" is evolving and growing in directions that would have been difficult to foresee ten years ago. People often lose sight of the fact that while the old traditional kinds of manufacturing roles are dwindling, the overall job of manufacturing is really expanding.


Ten years ago. Manufacturing viewed itself in terms of direct labor (the people on the line who built and shipped products) and indirect labor (the people who supported them). Back then, it was a sign of efficiency to manage the business with as few indirect labor people as possible. We don’t have those kinds of conversations anymore. As a matter of fact, we have probably gone from a 70-30 ratio (DL to IL) ten years ago to a current 30-70 ratio. Today we see greater value in communicating, consulting, dealing with new techno­logies, talking to customers and building relationships.


The work of Manufacturing now has a much broader definition. In fact, we have about 2000 "consultants" in the Manufacturing organization worldwide. They are consultants to us both internally on how to do things better and more efficiently and also to our customers — sharing knowledge and technologies.


While the need for traditional manufacturing jobs continues to shrink, new, challenging jobs are being created. We aren’t retraining people to fill old existing jobs in other plants, but rather to move into new and growing areas of our business.


Overall, we will end up needing different skilled people in different locations. People in Manufacturing have to realize that there are tremendous opportunities on the horizon. But, to take advantage of these opportunities, they will need these new skills and a willingness to be flexible and adapt. Some people may want to move in the direction of process-intensive Manufacturing work in clean-room environments. Some may develop engin­eering skills. Others may want to work more closely with customers.


While we deal with our current affordability problems, We are also introducing new, excit­ing work within Manufacturing.


Globalization And The Need For Digital To Adjust To Changing World Trade Conditions by Cliff Clarke, manager, International Trade Policy


In recent years, the economy of the U.S. has changed significantly, and other economic powerhouses have emerged in Japan and Europe. The U.S., which had provided much of the world’s political, social and economic momentum, now no longer has a dominant position in technology, capacity, productivity and natural resources. Business and trade have become global, rather than centered on the U.S.


We see this "globalization" manifested in:


o the migration of technology from the U.S. to Japan and Europe,


o the emergence of a tri-polar trading model, as opposed to a model based on the economic dominance of the U.S., and


o the emergence of "vertically integrated competitor/suppliers" (VICs).


To be competitive and to continue to grow in this new global environment, Digital must make adjustments to its business models.


For years, the U.S. was the source of technology and the only large, unified growth market in the world. Digital, like many other companies that called themselves "multinational," largely exported products from the U.S. to other countries. This was natural because of the relative economic strength of the U.S.; and since technology flowed from the U.S., it was the logical place to concentrate investments.


Today, much technology is coming from Japan, and more is likely to come from Europe. Of course, investments must continue in the U.S. But to meet our goals, we need to increase our investments in Japan and Europe because, to sell solutions, you have to be part of the business infrastructure of the neonle whose problems vou are trvine to solve.


Japan is now the second largest data processing market in the world. In order to gain share in that market, we need to make investments to tailor our products to Japanese needs. For instance, we need to master applications like banking and telecommunications, which are closely tied to differences in language, culture and local practice. Applica­tions such as these can’t simply be generated in the U.S. and then exported to Japan. We also need to get close to key technologies in which Japanese companies excel, such as manufacturing and semiconductor technology.


As a corollary, we can see the increasing importance of human resources and knowledge­based industries. Japan has been able to ascend to a powerful position in the absence of any real natural resources. Their success is largely attributable to the fact that Japan has a literacy rate of over 99% and a culture that supports a very strong work ethic. The Japanese have shown the world the value of a highly-educated workforce in an economic global model that puts technology as the most highly-prized commodity. As Europe and the U.S. seek to become more competitive and productive, the need to improve the quality of education will become a crucial question of public policy. And for Digital, the recruit­ing, development and retention of well-educated and highly-skilled employees throughout the world will continue to be of the highest importance.


World trade has changed to a tri-polar model including Japan, Europe and the U.S. Digital is in the process of developing an integrated response to these changes that signals increased competition and more aggressive behavior on the part of the trading countries of Europe and Asia.


Globalization is also fueling consolidation in our industry and other industries. As economies of scale become critical and the cost of keeping pace with technology grows, companies must have worldwide markets in order to generate sufficient sales and profits to afford the investments necessary to stay competitive. Many of Digital’s competitors are turning to global manufacturing strategies and are becoming increasingly vertically inte­grated - making rather than buying critical components. In other words, globalization affects many aspects of our business - not just trade, marketing and sales, but also engineering and manufacturing.


For instance, ten years ago the semiconductor market was dominated by dozens of suppliers, nearly all of which were U.S. companies. Today there are only about 10 suppliers, and only two of them are U.S.-based. This means we face the risk that vertically-integrated, global competitors could become our only source of supply for critical technologies. That’s one reason why we need to reevaluate our strategies and business models in the face of the changing worldwide business environment.


Managing The Introduction Of New Technology To The Workplace by Charles Abernethy, manager, Human Factors


The transitions from pens and pencils to typewriters, and from typewriters to terminals, were stressful. The stress really started when the use of terminals spread from technical users to the general public. Suddenly, the general public was doing word processing and electronic mail, and computers were used widely.


Now technology has taken another leap forward with the new generation of desktop computer devices. Workstations, windowing, and the ability to handle many different tasks at the same time are changing the style of computing and the way people work.


Today, with the advent of a new generation of desktop computing — including windowing and the ability to perform several tasks simultaneously — managers should be sensitive to the stress that employees may undergo with first-time use of new technology, and should be alert to occasions when a change in the work area or in job design might be appropriate.


Soon we’re going to have voice as well as keyboard input, and voice output as well as windowing screens. Power comes from the increased flexibility of being able to pay atten­tion to and deal with more than one kind of input and output at a time. The new tech­niques for interacting with computers are not just for engineers. They are for the general public. That will add a new level of complexity and another level of stress. This new technological wave is just beginning now.


Typically, the first people to use new systems are the ones who really want them and, therefore, understand how to use them. Then comes the stage when managers realize that these capabilities can increase the productivity of the other employees. As a result, they start introducing them widely, and that’s when employees feel stress, as they did with the introduction of terminals and personal computers. At that time, around 1980-83, some people reported health problems such as headache, neck and shoulder pain, back pain, eye strain, etc. On investigation, it turned out that these effects were due mainly to job-related stress, work-place design and the surrounding work environment.


In those days, personal computers tended to be inflexible. They typically had no tilt, swivel or anti-glare features. They were heavy units with fixed keyboards. It took a while for manufacturers to modify their equipment designs and for users to learn how to adjust lighting, furniture and job design so this new technology could be used comfortably and productively for an eight-hour day in the office.


If managers are sensitive when introducing new technology, much of the stress and anxiety can be forestalled. For instance, in our department, people continue to use their current terminals while bringing in the new equipment. For an indeterminate time, they will have both setups. I’m telling them they now have a complete VAX computer on their desks, and that this represents a whole new level of complexity. 1 expect some will have difficul­ties and frustrations initially. During the transition to the new equipment, they should


be able to use what they had before, as one way to reduce the stress of change. At some point 1 expect them to dump their old terminals in my office and say they don't need them anymore. That will tell me the process is done.


Managers have to 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 suffer adverse physical reactions. To guard against this con­cern, users should be given varied tasks, including some that require the exercise of independent judgment. They should be accorded reasonable breaks and, more generally, be fully integrated into the department’s and company’s operations. 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 an uncomfortable position for long periods of time.


Questions have been raised about the possibility of adverse health effects from exposure to electromagnetic fields produced by video display terminals and many other electrical and electronic devices. While such effects have not been scientifically demonstrated, this continues to be an area of controversy and further studies are being conducted.


In the summer of 1988, a report known as the "Kaiser Permanente Study" showed a statis­tically significant increased incidence of miscarriages among women clerical/administra- tive support workers using video display terminals more than 20 hours per week. Three other job classifications of women who also regularly worked with terminals showed no such increase. The researchers suggested several possible explanations for the increase in­cluding: electromagnetic radiation, increased job-related stress in clerical jobs, or ergonomic factors such as poor lighting, little opportunity for movement, or seating discomfort. Stressful conditions may be associated with problem pregnancies.


The National Institute for Occupational Safety and Health also is conducting a large-scale human epidemiological study of Bell South telephone operators in order to address the question of reproductive problems in modem office environments. Results of this study will become available early next year.


Our Human Factors Group continually tests and evaluates systems and components from the user point of view, and has done so since 1980. We 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. It is also important in our on going participation in international standards activities.


With the introduction of today’s new technology, we might once again see stress-related health complaints. However, stress is a factor that the individual can control or elimi­


nate. And. if managers take the time to learn the capabilities of the new technology and introduce it appropriately, there will be an enormous increase in productivity.


We must remember, too, that we need new ways to measure productivity. Industrial age productivity was measured in tangible units, for instance, how many "widgets" per day came off the production line. People were viewed as an extension of machines. But how do you measure "cognitive productivity," which includes creativity and flexibility? We’re still at an early stage of the post-industrial age. There are many changes to come in the interaction of people with machines and people with each other. There are many tools yet to come to help us better manage and filter the vast quantities of information now made available through communications and computer networks.


(A brochure entitled "Introduction to Video Display Terminals for Managers and Operator" provides guidelines on how to organize the work environment to minimize job-related stress. For copies of this brochure, contact Charles Abernethy, 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.)


Corporate Operations Committee Created


A Corporate Operations Committee has been formed with the goal of improving the company’s business outlook. Because Digital needs to organize resources more effectively on a global basis to better serve the account managers, the committee will have an international perspective.


The responsibilities of the committee are to:


o meet quarterly earnings projections,


o provide a forum for resolving mid-course corrections to annual segment plans,


o integrate actions of the segments and resolve inter-segment issues,


o allow for critical peer-review of segment plans,


o create a way to help segments achieve plans and goals in a supportive, problem-solving environment,


o be passionate about meeting the needs of the customer; and o provide clear recommendations to the Executive Committee,


"Committees, in general, play an important role in Digital, but they don’t replace the responsibilities managers have to do their own jobs," notes Abbott Weiss, secretary to the Executive Committee. "At Digital, committees don’t make decisions. They are viewed as forums for gathering knowledge.


"Segment managers and functional managers are accountable for the choices they make. But through the work of committees, such as the Operations Committee, these managers are able to make more informed decisions.


"Because committees are usually comprised of peers, they force managers to do their home­work, provide a means to gamer internal support for their plans and assess each others work constructively for the benefit of the entire corporation. As Digital's business needs change, committees will adapt and evolve to meet the challenges."


The members are:


Chairman, Ken Olsen, president


Vice-Chairmen, Jack Shields, senior vice president and Jack Smith, senior vice president


Secretary, Willow Shire


Product/Segment managers

- Bill Demmer, vice president, Mid-Range Systems

- Bob Glorioso, vice president, High Performance Systems

- Dom LaCava, vice president, Low End Systems


Geography managers

- Pier Carlo Falotti, president and CEO, Digital Europe

- Dave Grainger, vice president, U.S. Sales and Service

- Dick Poulsen, vice president, GIA Service/Segment managers

- Don Busiek, vice president, Professional Services

- Don Zereski, vice president, Customer Services


Manufacturing, Bill Hanson, vice president, Manufacturing Operations


Software/Architecture, Bill Strecker, vice president, Product Strategy and Archi­tecture


Applications, Pete Smith, vice president, Product/Applications


Networks/Communications, Bill Johnson, vice president, Distributed Systems


Corporate Controller,  Bruce Ryan, vice president, Finance


Chairperson of PMC, Dick Farrahar, vice president, Personnel, for Engineering, Manufacturing and Product Marketing


Other members of the Executive Committee may attend as they deem necessary.


Dave Sager Promoted To Senior Consulting Engineer


Dave Sager has been promoted to Senior Consulting Engineer, reporting to Steve Jenkins, group manager, Large Mid-Range Systems. Dave has been with Digital for more than 12 years. He is well-regarded for his expertise in advanced high performance processor design and for his broad-based skills that range from electrical design (electrons and physics) to system architecture. He has made major contributions to the development of the VAX 8700 and VAX 8800 family of products and to several follow-on ECL processor de­signs.


Patents have been issued to Dave that relate to the design of cache memory systems and high speed data transmission and clocking schemes. More patents in these areas are pen­ding. His ideas around parallel processing and very fast cycle time techniques have led to innovative high performance system designs for Digital.


Field Service Renamed Customer Services


In recognition of its expanded definition and role within Digital, Field Service has been renamed Customer Services. The change affects all corporate, geography, area, region, district, and unit names and titles.


In announcing the new name, Don Zereski, vice president, Corporate Customer Services, noted the evolving scope of the Customer Services organization. "Our concept of service has undergone tremendous and exciting change, especially during the past few years. Today, we define service in multiple dimensions and levels."




Dave Berry has been named Executive Education manager reporting to Pat Cataldo, vice president, Educational Services. In this role, he will be responsible for extending Digital’s ability to educate senior-level customers and prospects on our strategies, architecture, and products. Dave will assume the management of the Corporate Leaders Forum and look for additional ways to extend educational offerings to other senior-level customer staffs. Dave has 18 years of sales, sales management, sales training and mar­keting management experience in Digital. Previously, he managed the Mid-America District.


John Doyle, M.D., has joined Corporate Health Services as assistant medical director, reporting to Richard Porter, M.D., medical director. Jack will develop, implement and supervise health protection and medical monitoring programs for employees working with potentially hazardous materials and provide consultation on problems in general and occu­pational medicine and clinical toxicology. Jack was an attending physician in the Depart­ment of Emergency Medicine of the Milford-Whitinsville Regional Hospital. He also served in the U.S. Public Health Service, working in the Emergency department of Silver Cross Hospital in Joliet, Ill.


Jack Geissert has been named corporate manager of Industrial Hygiene, Safety and Toxi­cology, reporting to Dave Barrett, corporate manager, Environmental, Health and Safety. Jack will be responsible for working with Digital’s worldwide businesses in strengthening safety and industrial hygiene programs, coordinating employee health studies and develo­ping compliance programs and policies. He joins Digital from Harris Semiconductor, where he was director of Health and Safety.


Rose Ann Giordano has been appointed vice president of Public Sector Industry Marketing for the U.S., reporting to Bob Hughes, vice president, Industry Sales/Marketing. Public Sector includes the health care, state and local government, and education markets. Reporting to Rose Ann will be the Health Care Industry Marketing manager, Dick Corley; and State/Local and Education Industry Marketing manager, Bob Trocchi. In this position, Rose Ann will integrate Public Sector marketing efforts with Industry Sales (headed by Bob Long), to be more responsive to customer needs and grow our business into the 1990s. She retains her responsibility for Consultant & Information Systems Marketing and DECUS. Rose Ann joined Digital in January 1979. In 1984, she was appointed vice president, Large Systems Marketing. She assumed her current position in 1987.


Max Mayer has been appointed to the position of Customer Services Marketing and Business Development manager, reporting to Don Zereski, Corporate Customer Services vice president. In this new role, Max will be responsible for the marketing of customer services world-wide. In addition, he will be responsible for managing the new Customer Services lines of business, including the planning, designing, source funding, development, and execution of new business opportunities. A Digital employee since 1980, Max began his career at Digi­tal as the Microsystems Business Manager for Customer Services in the U.S. Most recently, he was the U.S. Customer Services Marketing and Sales Support manager.


Dave Person has been appointed Human Resource manager for the Corporate Personnel organi­zation, reporting to Rob Ayres, senior group Personnel manager for Strategic Resources, Corporate Operations, Finance and Law (SRCOF), and Dick Walsh, vice president, Personnel for Sales, Services, Marketing and International. Dave has been with Digital for 17 years in a variety of Personnel staff and line positions. In his most recent assignment, he was the Field Personnel Staff manager.  privacy statement