Conference 7.286::digital

1623.0. "Ken on NMS. Also denies rumors, DIGITAL mentioned" by SWAM2::MCCARTHY_LA (Martians are stealing my underwear) Thu Oct 03 1991 16:21

  Worldwide News                      LIVE WIRE                  03-Oct-1991

            Ken Olsen's remarks at the quarterly officers luncheon

  Ken Olsen yesterday told an audience of senior managers that they must 
  follow through on changes already under way that are intended to make Digital 
  an opportunity-driven company once again.

  Speaking at the quarterly officers luncheon in Maynard, MA, Ken reinforced 
  the basic concepts of the New Management System, and he said he is impatient 
  because some of the concepts are not being put into practice quickly enough. 

  "The system itself doesn't do anything.  It allows you to do something. The 
  goal was to break the company down into business units which have control 
  and responsibility and the freedom to be entrepreneurial," Ken said.  "But we 
  have yet to instill in people the fact that we trust them to be 
  entrepreneurial."  

  As an example, he said that when business units are not given responsibilty 
  to propose a budget and to make it work, we have lost a primary feature of 
  the New Management System.  "The system is based on the belief that we trust 
  the people who are running our accounts in the Field and the people who are 
  running the business units.  When we trust people, we give them freedom and 
  the responsibility."

  Ken stressed the importance of being an opportunity-driven company, as 
  opposed to being resource-driven.  "When you are resource-driven, you say, 
  'We have this much money to spend; now how do we get the most out of it.'  
  But an entrepreneurial group with a vision sees an opportunity, and all 
  their orientation is toward that opportunity.  Those small companies we're 
  competing with are opportunity-driven."

  He said it was equally important for us to be more customer-oriented.  He 
  said we need to "take off our suit" and communicate better with customers 
  and also be more customer-oriented toward our own sales people "who are 
  beaten up every day by customers."

  "People keep asking me to come up with a theme," Ken said.  "There has to be 
  a basis for it.  If we come up with two things, real customer orientation 
  and opportunity orientation, where everything we propose is to fill an 
  opportunity, we will have a theme that will change the company."

  In response to a question, Ken dismissed the rumors regarding the purchase 
  of Digital and his retirement.  He said he did not know what might have 
  fueled either.  He joked that since he does not read the notes files, he 
  can't keep up with every rumor.  

  Ken said that company will make a "truly significant" product annoucement at 
  the end of the month introducing new VAX family computers, new software and 
  a new NAS package.  He called the new products, particularly the new VAX 
  machines, "absolutely wonderful."  Bill Demmer, vice president, VAX VMS 
  Systems and Servers, said the new products offer industry leadership 
  price/performance and could provide the basis of a major turnaround for 
  growth.