Conference 7.286::digital

819.0. "John Sims' speech: Digital's values in times of change" by SMOOT::ROTH (Green Acres is the place to be...) Fri May 19 1989 16:29

[This was widely distributed to data center staff throughout corporate.
 Posted without permission. Lee.]

                   I N T E R O F F I C E   M E M O R A N D U M

                                        Date:      17-May-1989 09:40 EDT
                                        From:       
                                                   IDCMF@XCUSME@MRGATE@SAMWIS@MKO 
                                        Dept:       
                                        Tel No:     

TO: See Below

Subject: John Sim's State-of-the-Company speech to share

From:	BEAUTY::RANDALL      "Ron, DTN: 273-5457" 12-MAY-1989 11:20
To:	VP,XCUSME::IDCMF,@DISDIR:SHARE
CC:	RANDALL
Subj:	John Sims' State-of-the-Company speech to share

From:	NAME: John Sims                     
	FUNC: Strategic Resources     
	TEL: 223-7243


                "DIGITAL'S VALUES IN TIMES OF CHANGE"

    
    Thanks, (Intoducer)
    
    I know it's been a long day for all of us, but it's almost 
    over.  I'll be brief so that we can get back to Ken for some 
    questions and his wrap-up.
    
    As we've heard this day, we are at a significant milestone in 
    the History of the Company.  We are facing more significant 
    challenges today then at any other time in our history from 
    the competitive marketplace, from the global marketplace, 
    from the technology race, from the economy, from our 
    customers, from the cynical press, the skeptical Wall 
    Streeters and our employees.  
    
    We understand and respect the degree to which we are being 
    challenged from the external environment.  These challenges 
    are the kinds we're used to.  We seem to do our best when the 
    going gets a little tough on the outside.  As long as we 
    don't get complacent or discouraged, I'm confident that if 
    any company can win that kind of game, we can and we will.  I know 
    it.
        
      SLIDE 30:  INGREDIENTS FOR SUCCESS

    We have all the ingredients for continued success:
    
    --The People
    --The Products
    --The Money
    --The Customer Following
    --The Reputation for Excellence
    --The History of Achievement
    
    And as you've seen and heard today, we also have the vision and 
    the leadership.  But...so do some of our competitors.  The real 
    question then is, does Digital have anything that gives it an 
    advantage over those other companies?  I think we have an 
    advantage and I think there are good reasons for us to feel good 
    about Digital and its future and their role in it.  And that's 
    what I'd like to talk to you about for the next few minutes.   
    
    Ken reminded me that because I was "A Personnel Guy", and as of 
    this morning "an Administrative Guy", I should be careful not to 
    talk about what he called "all that warm, fuzzy stuff", especially 
    this late in the day.  He specifically warned me to avoid using 
    words like "sub-optimize".
    
    Well, I wasn't going to anyway, but Ken's warning helped me 
    focus in on my message, which in short, is the answers to the 
    questions I just posed.
    
    The first question was:  Does Digital have anything, products 
    aside, that gives it an advantage over its competitors? 
    
      SLIDE 14:  DIGITAL'S COMPETITIVE EDGE

    The answer is, darn right we do. We've heard some of those things 
    at today's meeting.  We heard that the way to success is to 
    embrace change in order to meet customers real business needs.  
    You heard Peter Smith begin by discussing how Digital's 
    competitive edge comes from distributed systems and a well 
    integrated applications environment.  As Bill Strecker discussed, 
    this environment is a result of our single system architecture 
    that enables us to embrace industry standards.  It also comes from 
    our overall systems integrations capabilities, as Russ Gullotti 
    explained.  

      SLIDE 16:  SPEAK IN CUSTOMERS LANGUAGE

    The speakers worked as a team in a most powerful way.  They 
    integrated the information they presented, and they followed the 
    theme of what the sales person needs to know. . . what all of us 
    need to know.  As Dave Grainger and Jack Smith both emphasized, 
    the Sales people need straight talk from us.  They need to know 
    the products and how to explain them.  And they need to do this in 
    language customers understand.  

    Jack talked about changing the way we learn.  The old classroom 
    methods are too limited.  We need to use alternative approaches 
    that engage people in hands-on learning, and, most importantly, 
    we've got to get practical and, at least in the short term, we 
    need to roll up our sleeves and help close sales.  

    One of Dave Grainger's major messages screamed out at us.  That 
    message was: "We've got to simplify the process."  We must cut the 
    red tape that slows us down.  There are limited resources, and 
    they have to be better integrated.

    Dave also emphasized that programs like these will only work if 
    our people are committed to them, are well trained, and can work 
    in an atmosphere that continues to encourage creativity and 
    innovation.  

    Finally, what everyone has said in one way or another is that we 
    must never forget that it is people who buy from us and who work 
    for us.  We need to build strong relationships and the basis of 
    these relationships are our people.

      SLIDE 2:  PEOPLE--DIGITAL'S MOST VALUED ASSET

    People are our most valued, most envied, and most sought-after 
    resource.  They are what makes us go...and we had better take the 
    time to fully understand and appreciate the extent to which this 
    statement is true...or they could be what makes us stop.  

    It is their competence and hard work and loyalty that has brought 
    the company to this point and it will be their competence, hard 
    work and loyalty that will keep us growing into the future.  If we 
    have any passion for winning, it must be felt by them.  They must 
    be the fire in our corporate belly.

    The other thing that gives us an advantage over other companies is 
    the Digital value system...not the warm fuzzy stuff, but the real 
    hard core feelings and beliefs that are in our people that make 
    Digital the company it is and will continue to be.
    
      SLIDE 4:  SUCCESS DEPENDS ON QUALITY

    The Company's success to date is well documented by the 
    business journalists.  They have made us well known as a 
    great company based largely on what we do.  But, the real 
    source of our greatness as a company lies not only in what we 
    do, but in who we are and how we do things.  We are a 
    hard-working, high performing organization whose primary goals 
    continues to be quality, whose overriding priority continues to be 
    customer satisfaction, and whose hallmark continues to be 
    excellence.  That's not warm and fuzzy, that's real stuff...the 
    stuff of which true corporate greatness is made...we had it when 
    we started in 1957...we've had it through recessions and shakeouts 
    and reorganizations and down cycles...and we've got it and we must 
    not lose it!
    
    In today's fiercely competitive environment, it is important 
    to keep the faith as it is to keep the books....to remain 
    committed to the simple but powerful ideas on which this 
    company was founded.

      SLIDE 6:  VALUES

    Where do we find strength and courage to do this?  It comes from 
    Digital's bedrock values that must hold us together and keep us 
    centered.  These values provide our stability in an environment of 
    constant change.

    Ken has reminded us many times how these values must continue to 
    set us apart from the competition.  Values such as 
    honesty...commitment...quality...completeness...simplicity, and 
    receptiveness to people and their ideas.  

      SLIDE 7:  VALUES INTO PRACTICE

    How are these values translated into practices?

    -  By listening to our employees and by acting on what we have 
       heard

    -  By treating each other with respect.

    -  By creating and delivering quality products and services

    -  By reducing red tape--for our customers and for those within 
       the company
    
    -  By taking responsibility and being accountable for our actions

    -  By knowing our areas of expertise and developing ourselves 
       professionally

    -  And by giving our employees the tools they need to get their 
       work done.

      SLIDE 31:  CORPORATE PHILOSOPHIES

    Our values are based on Digital's corporate philosophies that were 
    developed 33 years ago.  They represent the body of beliefs that 
    go to make up Digital's value system, and with all the other 
    changes that have taken place over our first 33 years, these 
    beliefs have remained unchanged.  They are written in simple, 
    straightforward language and they require no intricate 
    interpretations.  

    They deal with the simple but powerful ideas I mentioned earlier.  
    
      SLIDE 32:  DO THE RIGHT THING
    
    One of those philosophies is called "The first rule."  It says 
    simply "when dealing with a customer, vendor, or an employee, do 
    what is right to do in each situation."

    Viewed in a slightly different contact, these philosophies are a 
    recipe for leadership.  Remember, managers motivate their people 
    to do things right, while true leaders inspire their people to do 
    the right thing.  Obviously, we want and need an organization full 
    of leaders who inspire.

    Within this framework, we need to maintain an environment in the 
    company in which every employee at every level feels respect for 
    our past, involvement in our present, and responsibility for our 
    future.  

    As we are members of Digital's management corps -- make the 
    leadership corps-- each of us has he responsibility to ensure that 
    our people are invested in Digital's substantive values, which 
    support the success of the company.  These values must be 
    institutionalized in our organization, and they must be passed on 
    and perpetuated in our culture throughout the world.  

    Quality, not growth, must continue to be our goal.  Customer 
    service must continue to be our overriding priority.  Real 
    progress and durability, not mere survival, must be our 
    measurement.  And excellence, not mediocrity, must continue to be 
    our hallmark.  

      SLIDE 33:  WORKING ENVIRONMENT

    If we say that our employees are our most valued asset, they 
    must be treated that way and be made to feel it.  We must 
    continue to provide a working environment in which 
    creativity, innovation, collegiality and risk-taking are 
    valued and rewarded, and we must show the same loyalty and 
    support we expect.
    
    We must also recognize that because of its traditions of 
    success and its reputation for quality, Digital continues to 
    be the object of very high expectations by the outside world 
    as a standard of excellence in industrial leadership, 
    commercial success, social responsibility and good corporate 
    citizenship.  Sometimes these expectations are unreasonably 
    high, particularly on Wall Street, but we can't let them 
    distract us from our real mission which, simply put, is to 
    satisfy our customer, employees and shareholders, and to stay 
    in business forever.
    
    There are three key challenges that I want all of us to take from 
    today's meeting.

      SLIDE 19: THREE CHALLENGES--MANAGE CHANGE

    The first challenge is to manage change.

    For Digital, change is a way of life.  If we don't change, we 
    won't survive.  It's that simple.  

    Everything talked about today touches on change.  Our job is to 
    manage change.  Our people are bombarded with change.  They know 
    this and generally have embraced it as part of their working 
    lives.  But change can still represent a threat to them and us.  

    We are the gatekeepers of change.  We must see it in a positive 
    way and prepare our people to embrace it.  As our competition 
    intensifies, however, we will continue to make changes ranging 
    from reorganization to redeployment of resources.  Our job is to 
    make sure the effects of these changes don't weaken the morale or 
    destroy the spirit of our people.

      SLIDE 20: THREE CHALLENGES--BREATHE LIFE INTO VALUES

    The second challenge is to keep values alive and breathe life into 
    them where they have been weakened.  

    Make sure what we say we believe...and what we do..are the same.

    Values offer us strength.  But they are fragile.  When times get 
    rough, we are tempted to regard them as unnecessary.  This is not 
    acceptable.  Our core values helped to make this company what it 
    is today.  And we must protect them and make sure they stay part 
    of how we do our business.  

    Ken might be the originator and custodian of our values, but all 
    of us must work with him in keeping them alive.  We therefore need 
    to be vigilant.  If we are not, our values will slip away.  
    Honesty, quality, creativity, risk taking, and respect for the 
    individual are not up for grabs.  

      SLIDE 21:  THREE CHALLENGES--ENVIRONMENT OF CREATIVITY

    Our third challenge is to create an environment for creativity and 
    innovation.  

    People are our most important resource.  They need the best 
    working conditions to maximize their contributions to the company.  
    They need to work in an environment that fosters free thinking and 
    empowerment, an environment of creativity and innovation.  

    If for any reason, creativity or the energy that supports it is 
    stifled, the company is at great risk.  Unnecessary layers of 
    bureaucracy, red tape, lack of trust and risk taking can and will 
    suffocate us.  

    We are responsible for fighting off any such tendencies.  We must 
    maintain a creative environment where two-way communications and 
    trust prevail.   

    To do this, we must lead.  We must work with our people in setting 
    clear goals and removing obstacles in their path.  Then we get out 
    of their way and let them do their jobs.  This is the way we 
    empower them.  And by empowering them we create a value based 
    environment that will assure Digital strong and continued growth.

    Thank you.


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