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Extracted from Digital's VTX Livewire (should be complete):
[7m Jack Smith continues broadcast campaign with Nov. 19 DQR [m
Senior vice president Jack Smith continued his broadcast campaign to reach
employees in the Nov. 19 Digital Quarterly Report (DQR). He talked about the
revised Open Door Policy, a management evaluation process and new ways for
the company to generate more revenue.
"Employees should feel free to walk into any door in their organization
where they feel they will find a person who is willing to help them resolve
whatever issue they have or to help them with any suggestion," said Jack.
"Retaliation won't be tolerated.
"Retaliation halts any free flow of ideas, thoughtful suggestions or
complaints," continued Jack, adding that sometimes it is important to
hear complaints as well as suggestions.
He noted that after the last DQR, DELTA IDEAS Central experienced a surge
of three times as many ideas as the previous month.
Regarding revenue generation, Jack emphasized that Digital is still a growth
company. He said the company will focus its energies on growth areas for
Digital such as mainframes, software, PC integration and systems integration.
He noted that fears of a U.S. and global recession were of concern but the
challenge is to remain focused on revenue growth.
"There have been many companies in our industry that have had dramatic upward
turnarounds in their profitability, only to disappear shortly thereafter,"
said Jack. "The reason is that cost containment became the sole momentum of
the company. They changed the cost structure so dramatically and didn't
concentrate on the revenue piece of it. They lost market share.
"Our future depends on growing market share and that's how we are going to
win," said Jack, emphasizing the importance of balancing cost reduction
efforts with revenue growth undertakings.
"Only 10 of the 1,000 suggestions were anonymous," said Jack. "I think just
the idea that retaliation won't be tolerated has opened up people's ability
to suggest how we may go about improving this company."
In another area of employee concern, Jack announced the relaunch of a
process for employees to evaluate their manager's performance.
"We had a management evaluation system in the past, but it went away," said
Jack. "We need to go back to it. By understanding where someone needs
improvement you can work with that person to help them become more proficient
at what they are doing. This isn't a witchhunt. Nobody is perfect.
"Managers are no different than anyone else. They need that kind of feedback.
I believe our managers have taken their eye off the ball because there is so
much pressure on the mechanics of running their business."
Regarding revenue generation, Jack emphasized that Digital is still a growth
company. He said the company will focus its energies on growth areas for
Digital such as mainframes, software, PC integration and systems integration.
He noted that fears of a U.S. and global recession were of concern but the
challenge is to remain focused on revenue growth.
"There have been many companies in our industry that have had dramatic upward
turnarounds in their profitability, only to disappear shortly thereafter,"
said Jack. "The reason is that cost containment became the sole momentum of
the company. They changed the cost structure so dramatically and didn't
concentrate on the revenue piece of it. They lost market share.
"Our future depends on growing market share and that's how we are going to
win," said Jack, emphasizing the importance of balancing cost reduction
efforts with revenue growth undertakings.
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Jack said in this recent DVN to send him feedback and ideas. Have YOU
sent YOUR memo yet? If not, GET INVOLVED - the hour is late.
Below is mine, long as usual. Delete, read, copy, whatever you want.
I N T E R O F F I C E M E M O R A N D U M
Date: 28-Nov-1990 10:56am EST
From: David Carnell @ALF
CARNELL.DAVID
Dept: PROPOSAL DESIGN RESOURCE CTR
Tel No: DTN 385-2901
TO: Remote Addressee ( JACK SMITH @CORE )
CC: Remote Addressee ( IDEAS CENTRAL @OGO )
Subject: Demonstrable leadership accountability and your recent DVN
Dear Jack,
In your recent DVN, you indicated you had conversations with some
managers about employee involvement in contributing to effective
change. You said that the managers all talked the right things.
But when they were pressed by you as to what they were actually
"doing" regarding those things, the answer was nothing.
Accepting your invitation to provide direct feedback to you, I
would like to expand on this plus make a suggestion.
I suspect if you asked your questions of all 15,000 (?) Digital
managers, 99% would give you the same response.
Too busy getting "results." And, of course, no attention to
improving methodically THE PROCESSES, the cornerstone of Dr.
Deming's and Japan's philosophy to relentless, methodical
improvement, and doing it VIA total employee involvement.
The approach to Total Quality Management and total employee
involvement is proven. One best example is Toyota, where one
million employee suggestions for change are generated EVERY YEAR.
And most ARE implemented. And all are tracked. And managers ARE
measured on nurturing original thinking from ALL their direct
reports. With focus, NOT just on results, but rather PRIMARILY
on relentless improvement in all processes and activities of the
company, with quality relating both to customers' wants, and the
next group "down the line" internally, with then the end "higher"
results being by default via improving said processes thereby
leading to higher achievement.
Toyota now "owns" the auto marketplace perception AND met desired
quality expectations to such a degree that Toyota gets LOTS
customers, loyalty, revenue, premium margins, marketshare and
PROFIT. Toyota now has 18 BILLION dollars in excess profit
sitting in the bank.
(Cont'd)
Page Two
Digital's own quality organization knows that this philosophy and
these approaches work, and already has courses and books on "how
to do it" within Digital, and even has "confirmed" this IS the
better approach via two teams sent to Japan.
But what good are all these good ideas and proven methods if "the
system" in Digital nurtures more a feudal system rather than a
cooperative, interdependent harmonious system?
The system and culture of Digital now focuses the attention of
managers ONLY on results. "Did you make your numbers?" "Did you
get the units produced?" "Delivered?" "Fixed" "Processed?"
"Did you get the WORK done?"
Little attention on methodical "change" leading to IMPROVEMENTS
in all activities, accomplished via nurturing "original thinking"
from ALL employees via making them "partners" in "thinking" and
subsequently in driving change TO BUILD A GREATER ENTERPRISE, all
working together in REAL teamwork, cooperatively, harmoniously.
What good is all the effort to PROVE the validity of new
approaches and original thinking, and promoting down from
Digital's executive levels said proven programs and ideas, if
LITERALLY EVERY MANAGER, operating his or her own fiefdom, has
the capability of saying, "That's nice. But NOT for "MY"
business, MY group. I'll do it MY way, thank you very much."
A feudal system of 15,000 fiefdom chiefs "doing their own thing"
IS anarchy, especially when the focus of a good many groups has
NOTHING to do with improvement ultimately leading to increased
efficiency AND effectiveness, cutting waste, and to getting and
keeping more customers, and at the same time generating desired
levels of revenue and margin and profit.
Is not the missing component top down "demonstrable LEADERSHIP
accountability" to LEAD in constructive, continuous CHANGE to
"improve" all processes, all activities and efforts, which THEN
leads to increased results?
Think about this:
With all the attention on CUTTING EXPENSE, why is it NOT A FACT
that every group in Digital is NOW holding a weekly "quality
circle" type meeting with his or her direct reports where the
manager is leading the discussion to nurture and uncover original
thinking that will accomplish this?
(Cont'd)
Page Three
If you asked all 15,000 managers your questions and the above, do
not these very revealing questions really lay bare the problem
with DEC's management since such meetings and the "doing" of
leadership of change and employee involvement and original
thinking is NOT happening.
Where are the simple acts by all 15,000 managers? Where indeed
are the meetings entitled "let's talk about improving things" on
a regular WEEKLY schedule? Where's the leadership to accomplish
what Ken Olsen and Jack Smith WANTS DONE NOW?
I once was given a ride in a small airplane. The pilot asked if
I wanted to fly the plane. With two minutes of instruction, I
could "drive" the plane. I could manage flying straight, turning
left or right, moving upward or downward. But while I could
"manage" FLYING a plane, I was NOT a pilot who could LAUNCH a
plane, land it safely, or handle ANY crisis of the airplane.
In good times, with market demand up, and good products and
services engineered, MANAGING is easy and in fact requires
minimally training. But "commanding" others to do the work, get
the numbers, making sure they do the job and generating all
required reports, is NOT leadership.
And it is leadership that is critically important when one either
wants to BUILD SOMETHING GREATER or has to act when there is a
crisis.
The Digital "airplane" is NOW in crisis, with our corporation's
four year decline leaving us at near zero profitability.
And will downsizing lead us to success?
"Doing" downsizing does not require much training to do, nor much
effort, nor much leadership.
Nor will it "ensure" our future prosperity AND GROWTH. A company
cannot "just" cost cut its way to success and higher levels of
achievement in revenue, margin and profit from its assets.
The answer to solve the crisis is demonstrable leadership in
driving CHANGE to relentlessly and methodically IMPROVE the
efficiency and effectiveness of ALL Digital functions, processes
and activities performed by virtually every single employee.
None of us (who have just the remotest clue) are surprised at the
answers to your questions by those managers, or at the state of
affairs in Digital. But it appears to be a revelation to you.
(Cont'd)
Page Four
You have realized that there is a BIG difference from "talking" a
good story, saying "the right things" regarding leadership and
employee involvement and quality and change, and in actually
"doing" those right things.
You have mandated the closing of the Phoenix plant. Don't you
also agree that it is now of equal, if not greater importance,
for you also to "mandate" demonstrable leadership accountability
within all 15,000 Digital managers?
Toyota mandates, and has in place, the policies, checks and
balances, rewards and PINK SLIPS, to "ensure" that all managers
TRULY "lead" their direct reports, not only in "doing the work
well" but even more critically, nurturing and developing within
EVERY employee a true sense of being a partner in building the
enterprise, where each employee brings to the table his or her
intelligence, intuition, knowledge, wisdom, and experience to
DEVELOP ORIGINAL THINKING that will lead to improvement in ANY
process or function, from one's own work, to the group's, to the
next person or group "affected" up the line, and indeed to ANY
group or activity anywhere in the company, with all ideas for
change leading to greater efficiency and effectiveness,
ultimately enabling the total organization TO WIN AND KEEP MORE
CUSTOMERS, the source of all revenue, premium margin and profit,
and future prosperity where all are in a WIN-WIN situation --
customers, employees, managers, stockholders.
If the Digital executive committee is not yet ready to endear
itself to the concept of REAL employee empowerment and ownership
of constant improving change via decentralized authority as
implemented by General Motors Saturn Division President within
the entire Saturn Division, and by Kodak's CEO within now 30-40%
of Kodak, then must it not be recognized by the Digital executive
committee that the focus of leadership and change is owned ONLY
by managers since they retain exclusive ownership of all
authority, and it is the "system of management" that must
therefore be improved or evolved (or reformed as you will) by the
"top" of Digital.
All employees I know liked the words YOU were talking at your
last DVN. But the question asked by some is, So what is Jack
actually "doing" then to correct the problem? He doesn't say, he
doesn't give us the plan and details. All we officially "hear"
and see is "downsizing" efforts and the constant rumour of real
layoffs. Nothing else changes!
(Cont'd)
Page Five
With our current dismal profitability picture, just starting
direct report appraisals of their managers (which, of course, has
yet to be seen, let alone witnessed in universal implementation)
may not be enough or fast enough.
In conclusion, considering the state of affairs, my employee
involvement suggestion is that YOU immediately mandate that ALL
managers begin immediately to have WEEKLY meetings with all
direct reports. Every manager is now charged with LEADING their
people in developing new, original thinking -- with all employees
participating, getting involved and contributing -- to affect
changes leading to CONTINUOUS, RELENTLESS IMPROVEMENT in all
activities, processes, and functions "controlled" by the group's
members.
And mandate that this leadership and change by managers will be
measured of said managers, and each manager WILL be held to
"demonstrable" accountability in this leadership, and in growing
real employee involvement AND original thinking that IS
IMPLEMENTED, that DOES lead to relentless CHANGE TO IMPROVE all
activities within the group, WITH PARTICULAR emphasis on leading
to "higher levels of measurable improvement" of all the processes
and activities within the group PLUS as work affects the "NEXT
group or work up the line", and including original thinking for
improvement "BACK down the line" to groups' whose work affects
THAT group, with all ultimately BY DEFAULT, leading to massive
amounts of "swifter" effective changes subsequently manifesting
IMPROVED RESULTS showing greater cutting of waste and needless
expense, increasing efficiency and effectiveness, and getting and
keeping more customers, and generating HIGHER LEVELS of customer
revenue, margin and net profit.
Regards,
David
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