Hp Way

The rise and fall of the HP Way

Merger may spell the end of company's guiding philosophy

by Jocelyn Dong

For some workers, the HP Way bordered on religion. They considered it inviolable.

A management philosophy emphasizing integrity, respect for individuals, teamwork, innovation, and contribution to customers and the community, it earned the abiding loyalty of thousands upon thousands of employees since the company was founded 63 years ago in an Addison Avenue garage. Bill Hewlett and Dave Packard's legendary management style has been the subject of case studies by ivory-tower and Wall Street professionals alike. When Packard and Hewlett passed away in 1996 and 2001, respectively, obituary writers noted their enduring legacy was not the multi-billion dollar tech giant -- it was the HP Way. Or so it seemed. But times have changed. The high-tech industry that grew up with the company also grew more cutthroat, showing no mercy to man or management philosophy. Even before the founders' passing, some industry watchers contend, the HP Way showed signs of wear in the increasingly competitive business environment. The possible merger of Hewlett-Packard Company and Compaq brings to some minds the probable end to the HP Way as it's been known and practiced. (At press time, results of the proxy vote had not been announced.) Pragmatists say even if the HP Way is altered in the battle for market leadership, the basic intent of the philosophy will remain. Others argue that HP's distinctive culture has been forsaken, that "new practices" have been nothing short of a trampling of company's heart and soul. Events of the past year, including the proxy fight, have left followers of the "original" HP Way shaking their heads -- and fists. "The HP Way was a way of life. We ate, slept and breathed HP for much of our careers," said Carl Cottrell, former head of HP's European division. Fairly or unfairly, Carly Fiorina, HP's chairman and CEO, has gotten the heat for the HP Way's...