惠普之道：the hp way

The HP Way,Culture of HP: employee-oriented,Employees will do all they can for HPs goal as long as being provided with a proper environment.,HP believes that,1. Cooperative plan with Stanford,HP sends its qualified employees to Stanford for further training. “No employee being dismissed”.,2. Best conditions for employees,high salary and welfareThe salary is 10%15% higher than other companies in the same class. HP gives employees 12% of its pre-tax profit as cash bonus in July and December each year. This policy increases their salaries by 7%.,2. Best conditions for employees,holding cookouts HP possesses the entertainment areas in Palo Alto, Colorado, Massachusetts within the country and in Scotland, Germany and Malaysia.,According to the employee-oriented culture, when HP faced a dramatic decrease of sales revenue in the 1970s crisis, no employee was dismissed. To solve this crisis, HP reduced all its employees salaries by 20% including William Hewlett and David Packard and at the same time, reduced working hours by 20%.,Note：,The employee-oriented culture is a strategic plan which covers a long period and involves many parts of the organization. In this way, HP will keep a large reserve of talents which plays a big role in product innovation.,Type of operation and management,In order to gain competitive advantages under a new competitive competition, what we should do is to change the policy, culture and strategy as quickly as possible without losing the base line.,Founder（方正） doesnt identify a specific prospect and holds no core values. It has no strategy to deal with the change of market and competition situation. In consideration of the blurring property right and personnel system, Founder is hard to carry out reform.,Contradictory between exterior resources and intrinsic capacity.Technical superiority Wangxuans personal authority VS Founders own business strategy.Brand advantage The board of education(学校董事会) VS the trend of market.,Founders seemingly “wealth”,financial liquidity（资产变现）,the governmental support.,What is the source to lead a sustainable development?,In July, 1998, HP published some startling statistics: the annual rate of growth is only 3% while in the last 2 years the rate is about 30%. At the same time, HP announced that the salaries of the 2400 top and middle-level managers were to be reduced by 5% temporarily.,financial crisis in Asia the price war on PCthe contradictory between the intrinsic policies, organizational culture and competition situation.,The divisions(事业部) contributes a lot to HPs success. This kind of decentralization can give each division rights and resources which will immediately affect the demand of consumers and market. However, the enlargement of divisions gradually makes a “profit center” without strategies. So, when industrial environment changes and “profit center” no longer produces profit, the problem occurs，,What will HP do?,revise assessment pointer,outer-led(外部导向),inner-led(内部导向),Emphasize the importance of speed in adjusting to the changes.,In order to keep core competitiveness, in 1999, HP decided to launch an independent technology company Agilent covering its test and measurement, semiconductor products, chemical analysis and healthcare solutions businesses. In this way, HP is centralized in the computer related fields so as to deal with the fierce competition in PC.,Note：,The company should be flexible to the changes of the market, and makes a specific plan to de