Saturday 4 May 2013

Leader Profile: Bill Hewlett and David Packard




Bill Hewlett and David Packard are, in my opinion, what every business leader ought to be. Both having experienced the Great Depression, they saw first hand the effects it had on people. This probably gave them insight on how to build a successful company based on solid values, one that respects employee rights above profits.


"Set out to build a company and make a contribution, not an empire and a fortune"

"The best possible company management is one that combines a sense of corporate greatness and destiny, with empathy for, and fidelity to, the average employee."

"A company has a responsibility beyond making a profit for stockholders; it has a responsibility to recognise the dignity of its employees as human beings, to the well-being of its customers, and to the community at large."

Their management philosophy emerged at a time when the concept was totally alien to the business world. David Packard himself said that he was almost laughed out of the room when he proposed this in a conference among business leaders in the 1940s. But they remained courageous in promoting their company culture. This concern for the employee, however, was counterbalanced by their demand for performance - they took care of their employees but they required their employees to do their best. This exemplifies the Level 5 Leadership proposed by Jim Collins in his book Good to Great - humility combined with professional will.

They were probably the humblest leaders the corporate world has ever seen. They were great innovators who started out with $500 in capital and eventually grew their company into one of the biggest technology firms today, yet for all of that, they remained astonishingly humble. David Packard continued to live in a modest house, made contributions to Stanford University and refused to have buildings named after him. Bill Hewlett, then CEO of HP, entertained a call from a twelve-year old Steve Jobs, who was asking for parts for a project he was working on. The next day, Steve picked up a package of parts prepared by Bill Hewlett himself.

The story of Bill Hewlett and David Packard remains a refreshing counterpoint to today's age of profits and corporate greed, and one that should be internalized and embodied by the business leaders of today.

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