Conference 7.286::digital

An excerpt from a locally generated memo on the DVN broadcast...

         
         THE U.S. TEAM IS HOSTING A VERY IMPORTANT STATE OF THE 
         COMPANY DVN ON TUESDAY, AUGUST 11, 1992.  THE PURPOSE OF THE 
         BROADCAST IS FOR DON ZERESKI AND MEMBERS OF THE TEAM TO 
         DISCUSS THE COMPANY'S FY'92 RESULTS, OUR PLANS AND STRATEGIES 
         FOR FY'93 AND THE ORGANIZATIONAL STRUCTURE TO SUPPORT THESE. 
         SPECIFIC TOPICS PLANNED FOR DISCUSSION INCLUDE DESKTOP, 
         SERVICES, S.I., SALES PILOTS, ALPHA, SME, COMPONENTS AND 
         TRAINING, ETC.
         
         IT IS VERY IMPORTANT THAT EVERY DIGITAL EMPLOYEE BE MADE 
         AWARE OF THIS DVN AND HAVE ACCESS TO VIEWING THE BROADCAST 
         LOCALLY, TRAVELING TO THE CLOSEST DVN SITE OR BY VIEWING A 
         VIDEOTAPED COPY OF THE BROADCAST.  
         
         THE AGENDA IS AS FOLLOWS:
         
         12:00 - 2:00 p.m. EDT.        DON ZERESKI PRESENTATION
          2:00 - 2:15 	     	       BREAK
          2:20 - 4:00 	     	       QUESTIONS AND ANSWERS
         

    
    	If anyone gets the text of Bob Palmer's speech today, please
    	post it here.  Very impressive.
    
    	Thanks in advance,
    	Tom
    

    Bob Palmer' speech was impressive.  All else, I almost fell asleep. 
    Notice I am back to my desk back to work.
    
    bob
    

    was there a date on the car plan implementation?
    
    tim

    I believe Zereski said December, but may slip into January.

    I left early, so I musta missed it. What's this about the car plan?

    Please take the car plan discussion to the car plan note.
    
    I'll update the title when I track down the appropriate topic.
    
    Thanks,
    
    Bob - CO-moderator DIGITAL

    re: .8
    
    I'm sorry if I was unclear about this.  The car plans are discussed in
    several notes (topics) in this conference.  Note(Topic) 1664 has the
    best title, so please continue discussion of the car plans there.
    
    Thanks,
    
    Bob - CO-moderator DIGITAL

    
    The question is: will the person running the projector for Z. get
    the package?  ;-)
    
    Seriously, I almost died laughing...
    
    -Ed
    

    could we, at the end of the universe, have a summary?
    
    Thanks,
    Heinrich 

           <<< HUMANE::DISK$DIGITAL:[NOTES$LIBRARY]DIGITAL.NOTE;1 >>>
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Note 2046.0          enough with the cars...what did he Say!          No replies
NEACS::KEEFE                                          8 lines  12-AUG-1992 09:28
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        "WILL SOMEONE PLEASE SUMMARIZE THE CONTENT OF THE DVN!"
    
          There were a few of us working with customers yesterday
          and could not make the broadcast.  What was said and
          what were the highlights and decisions that were/are 
          being made concerning the state of the company...Was 
          anyone there who took notes?  
    

I didn't take notes, but here are  the highlights, in no particular
order.

1.  Car Plans A & B will be changing in the Dec.-Jan timeframe.  I assume
the details are already posted in another note, I'm still catching up.

2.  Compensation plans for Sales, and eventually Sales Support, Services,
and others, will be more incentive based.  Bonuses of $50K and more will
be possible.

3.  Performance review plan will change.  No details, but subordinate
review of managers will most likely be included.

4.  Internal stovepipes, bickering, competition, will not be tolerated.

5.  More focus on customer needs and a simplification of product lines.

6.  Increasing revenue is more important than cutting expenses.  Goal for
FY93 is to gain market share.

7.  New product lines coming out includes a new line of faster, cheaper PCs.

8.  Many internal business practices are being/will be re-engineered and
the systems that support them will be fully integrated.  Some changes to
Contracts already in the works.

I'm sure there's more.  I did not stay through all the Q&A.


I believe that if Bob Palmer is true to his word, and can carry out his 
plans, Digital will once again become an industry leader, and a good
place to work.  He really impressed me; I just hope it was not all smoke
and mirrors.

Frank

    
    	The DVN broadcast is supposed to be made available by videotape
    	to those who were not able to attend.  (ie you should be able
    	to check out a VHS tape and watch it at your leisure in the
    	comfort of your own home).  I think that's a better solution
    	than trying to transcribe Bob's comments into written form.
    
    	I think it would lose a lot if you didn't see it visually.
    	A lot of the impact was in his style of delivery as much as
    	what he said.  It was impressive!  I'm convinced after I
    	saw it that Bob is exactly the kind of leader we need to
    	turn this company around.
    
    	Chuck
    

    
    	re -1.  I'd really like it in text form and hope that it's in
    	the works.  Anyone know?  Yes, seeing it would be better -
    	that's obvious.  But several folks want to read it soon.
    
    	Tom
    

    Any mention of layoffs or hint as to what the reorganizations may look
    like?
    
    
    

    re: .18, layoffs and re-org's:
    
    Didn't stay for the Q&A, but Bob repeated his message about "Supply
    Chain Re-engineering". They are looking at all aspects of our business
    from how a customer hears about us, requesting a quote, placing an
    order, getting it delivered, getting it up, running and useful. This
    process looks at all steps of the process and defines the work
    necessary to add value *for the customer*. Then, when that's defined,
    they put people in the jobs that fit and, unfortunately, let the rest
    go. The process is proceeding "expeditiously" and will continue to do
    so, says Bob. Happily, the neo-word "planfully" was absent.
    
    So, no specifics but an assurance that it's going to happen.
    
    I have to echo the remarks of other noters that Bob really stole the
    show. I'd highly recommend that you sign out the tape; I find Bob's
    vision and drive downright energizing. I'm more optimistic about
    Digital's viability than I have been for, well, years.

	... but Don Z. did not come off too well with his "Frick and Frack" display
operation.  Not a way to impress the new boss, is it?  He actually has more on the
ball than that demonstrated.

Well, nobody said "planfully", but someone did speak of improving the 
"effectivity" of our R&D.

AAAAAAAGGGGGGGGGGGHHHHHHHHHHHH!!!!!!!!!!!!!!!11

\dave

    Right.  It should have been "affectivity."

         Here's .20 reformatted for 80 columns, monospaced font.
                                                         
           <<< HUMANE::DISK$DIGITAL:[NOTES$LIBRARY]DIGITAL.NOTE;1 >>>
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Note 2043.20             US Team DVN 11-Aug-92 12:00 EDT                20 of 22
YUPPIE::COLE "Is this a rut we're in, or a LOOONG gr" 3 lines  12-AUG-1992 11:59
       -< Palmer was again very impressive and inspires confidence, ... >-
--------------------------------------------------------------------------------
    
    	... but Don Z. did not come off too well with his "Frick and Frack"
    display operation.  Not a way to impress the new boss, is it?  He
    actually has more on the ball than that demonstrated.
    

     
    Can anyone give me the poop on the "new positions" being created 
    in the field for "Customer Support Consultants"?  
    
    Seems this is overlap for both Customer Engineering and Sales Support.
    
    What is this all about?
    
    -Ed
    

    Ed,
    
    Customer Support Consultants will be part of the Logistics
    Organization.  Administration now falls under Logistics as part of the
    supply chain.  With Logistics consolidating 63 Admin offices into 7
    Transaction Centers (now known as Logistics Service Support Ctrs -
    LSSC's), it is felt that District ADMINISTRATIVE specialists still need
    to be in the field.  They will be the District Admin guru, helping
    sales and account support and customers through admin issues and they
    will also ensure that all orders sent to the Transaction Centers are
    100% clean.  They will report into the admin arm of Logistic Services.
    
    Hope this makes sense.

           Bob Palmer discusses computer industry trends, investment 
            strategy, management principles and pay for performance 

  Addressing the U.S. Field, President- and CEO-Elect Bob Palmer talked about 
  computer industry trends, changes to expect inside Digital, and his 
  management philosophy, including the importance of pay for performance and 
  metrics that motivate teamwork and customer satisfaction.  The following 
  article summarizes his remarks in that August 11 Digital Video Network (DVN)
  broadcast. 

             ------------------------------------------------------

  Industry in Transition
    
  "The computer industry is driven by semiconductor technology and the 
  establishment of standards that lead to open systems.  More and more 
  technology resides in the silicon chip, obviating many of our investments 
  that were made in a different era of technology.  At the same time, 
  standards and open systems reduce profit margins and completely change the 
  business model.  

  "We have to look for new profit and growth opportunities, building on our 
  good foundation in solutions and services.  While we continue to invest 
  aggressively in the appropriate technologies, you'll see a re-allocation of 
  investment dollars away from redundant hardware engineering projects and 
  toward broadening our portfolio of applications and solutions.  We're 
  changing our company from one that was focused almost exclusively on 
  technology to one that is driven by customer needs."  

  Investment/Disinvestment Strategy
    
  "We will be focusing our investments around our core competencies in 
  services, software, and silicon.  We will be disinvesting in many other 
  activities that may have been interesting in the past, but are no longer 
  affordable.  

  "For example, in Manufacturing and Logistics, we have disinvested in a 
  number of facilities and downsized the population by thousands of people.  
  We have also spun out some of our operations -- finding other productive 
  uses for facilities and people.  Today, for instance, we are announcing the 
  sale of our Greenville, SC, printed wiring board facility.  That will 
  preserve several hundred jobs and also preserve our access to the 
  technology.  

  "As this kind of restructuring continues throughout the company, you can 
  expect tremendous emphasis on Supply Chain re-engineering -- an effort 
  through which we hope to become substantially more competitive.  This effort
  involves everything we do between making a quote to our customer and getting
  paid for our services and products.  Teams scattered across the world are 
  reviewing our activities in product creation, supplier management, 
  manufacturing, distribution, marketing, sales, etc.  From that work, we are 
  finding new, more efficient and productive ways to operate.  We are looking 
  at keeping work activities that add real value to the customer.

  "By redesigning work, based on this kind of assessment, we will be able to 
  eliminate redundant and non-value-added activities.  We have to do it.  It 
  is the least attractive part of any senior management job, but it is 
  unavoidable.  To the extent that we postpone it, the pain is greater:  lack 
  of competitiveness will not go away, and the consequences will increase in 
  their severity.  We are going to deal with this, and we're going to deal 
  with it expeditiously."

  Pay for Performance
    
  "I would like to be able to identify the real contributors and ensure that 
  there are adequate reward and compensation systems to recognize those people
  who are really carrying the enterprise.  That means we have to revise our 
  performance review system to ensure that all employees -- of whatever 
  background or diversity -- have an equal opportunity to demonstrate their 
  skills and be compensated for those skills.  At the same time, we need to 
  keep investing in those skills, which is how we'll maintain the vitality of 
  this enterprise.

  "Incentive compensation will begin with the U.S. sales force and gradually 
  spread to other groups as we become sufficiently knowledgeable about how to 
  implement it.  We expect to be able to introduce this program starting in 
  January.  We have not yet worked out all of the details, but the objective 
  is to have metrics and rewards that encourage the delight of our customers.  

  "We have to make it in everybody's best interest for the customer to be 
  satisfied -- for the equipment and the solution to be installed and operated
  as the customer intended and on time.  By changing our metrics, we can cause
  the right behavior -- teamwork and customer satisfaction.

  "As we make these changes, we will undoubtedly make mistakes.  Physicists 
  talk about the 'law of unintended consequences.'  You introduce a change, 
  and it leads to behavior that you hadn't anticipated.  As we move ahead, if 
  you see behavior that is not consistent with the value systems of this 
  company, make sure your management listens to your examples of how the 
  metrics are not in sync with our intentions; and we will change them.  With 
  your help, we will eventually craft a system and an environment that 
  everyone feels is optimum."  

  Management Responsibility and Accountability
    
  "We're going to clarify the roles and responsibilities of the senior 
  management team.  We have far too many overlaps.  It becomes almost an art 
  form to avoid accountability.  Those days are going to rapidly be put 
  behind us.

  "You will see clarity, discipline, and much more focus on teamwork.  We have
  not spent enough time talking about our real competitors, the external 
  ones -- what they are doing, what their strategies are, and what our 
  strategies are to intercept those and dislodge them.   Now there will be 
  more focus on internal teamwork, on working together; and much more external
  focus on customers (so we know what their needs are) and on competitors 
  (so we know what they are doing).

  "My management philosophy is focused on teamwork -- including all of the 
  resources in our diverse population to help us be successful.  To make that 
  possible, you have to have a foundation of integrity, which means that 
  politics have got to go away, and the key determinant has to be what's best 
  for Digital. 

  "I believe in organizational balance among geographies, business units, and 
  functions.  Everybody working for what's best for Digital should be able to 
  candidly bring forth his or her opinions around those subjects, and it's up 
  to the senior management team to make the right decisions -- sometimes 
  favoring one proposal, sometimes another; but always data-driven, impartial,
  not political.  

  "Employees, shareholders and customers have a right to expect crispness in 
  our management decision-making process.  We have been legendary in our 
  indecisiveness.  That will cease.  We will debate everything openly and 
  honestly.  Then we will make decisions.  And, in the absence of new 
  compelling data, we will not revisit those decisions."  

  Digital's Strength
    
  "Not long ago, I was asked, 'How would you characterize your challenge to 
  that of IBM?'  My answer was, 'It's not as hard.'  Our employees were raised
  in a culture of empowerment, entrepreneurship, moving outside of narrowly 
  defined jobs and doing whatever it takes to energize the enterprise, to be 
  successful.  

  "We are not entitled to success.  We are entitled to the opportunity to 
  compete for our customers' business, according to the laws of whatever 
  country we happen to do business in, and consistent with the ethics of this 
  great company.  It doesn't get any better than that.  That's great.  That's 
  all you need.  We have all of the other resources we need to win with just 
  that opportunity.  We can win by delivering superior products, services, on 
  time, as promised.  We can win."  


    These days, with the layoffs and all, I often get the feeling that
    things are never going to get better. This feeling is exacerbated when
    I read many of the notes in this notes file.
    
    But this note detailing Bob Palmers speech "Fires me Up". I really
    feel like he "understands" and that he knows there are many of us out here
    who continue to work hard toward the success of Digital, often times
    fighting back a feeling of resentment and insecurity.
    
    
    I'm think the tide is turning and that Digital is on
    it's way back to greatness. I can now go out to our customers with a
    genuine positive attitude, stemming from the belief that the new 
    captian is going to lead us to a better place. 
    
    
    Dick Brooks
    

    Who presented the Company financials?
    Any idea how to get/borrow a copy of the DVN videotape?

    Tony Wallace presented the financials.
    
    The DVN coordinator at your site (names available on VTX I believe)
    should have a copy.

    To acquire the DVN tape, access
    
    
    			$ VTX AVCATALOG

Tapes of the broadcast have also been sent to most Location Managers at 
non-DVN sites to be made available for local viewing.

Norma Frye
DVN Operations
297-2682