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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

2891.0. "Bob Palmer Employee DVN text" by MEMIT::SILVERBERG_M (Mark Silverberg MLO1-5/B98) Wed Feb 09 1994 09:58

  Worldwide News                                                   LIVE WIRE
--------------------------------------------------------------------------------
  Text of Bob Palmer's Q3 Employee Forum ...                 Date: 07-Feb-1994
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            Text of Bob Palmer's Q3 Employee Forum address on DVN 
   
          (Following is the text of Bob Palmer's DVN address to 
   employees.  A transcript of the question and answer session will be 
   posted in LIVE WIRE later this week.)
   
          A couple of weeks ago, I sent a message to every employee that 
   put our quarterly earnings report in perspective.  I'm going to review 
   that information briefly because it will set the context for the key 
   messages I want to share with you today.
          For the second quarter of the 1994 fiscal year, we reported a 
   loss of $72 million on total sales of $3.25 billion -- or about two 
   cents per dollar of sales.
          I am not satisfied with any loss.
          However, this one was slightly less than what we reported in the 
   comparable quarter one year ago -- despite a revenue decline of 
   approximately $435 million.
          In fact, this marks five consecutive quarters of improving 
   year-over-year results, following 17 quarters of declining 
   year-over-year results.
          If we look at the first six months of the year, we managed to 
   cut our loss in half, despite a drop in revenue of $735 million.  Put 
   another way, if we had not successfully reduced our costs as we have 
   done, our loss for the six months would have been greater than three 
   quarters of a billion dollars.
          And, as I said, at a loss of about two cents on the dollar, we 
   are currently operating very near our financial break-even point -- a 
   critical point in our turnaround efforts.
          We have been extremely successful in cutting and curbing 
   expenses.  We will continue to do that, as we must.
          But our major emphasis now is -- and will continue to be -- to 
   support our worldwide sales and services professionals so that they can 
   increase our revenue so that we can become profitable again as quickly 
   as possible.
          An extensive study of companies in financial trouble similar to 
   ours in 1992 reveals that a successful turnaround of a company this 
   size is a multi-year task.  It is simply unrealistic to believe that we 
   can turn around a company of this size overnight -- but we are 
   definitely making progress by following a rational and systematic 
   approach to transforming our company.  
          We all know that it took us several years to get in significant 
   trouble, and it is going to take some time to recover fully.  That's 
   the reality.  It's not easy for any of us, but it is a fact.  
          We need to remind ourselves of this so that we don't become 
   discouraged and lose sight of our attainable goal of sustained growth 
   and profitability.  
          We also need to remind ourselves of the reality of our situation 
   so that we don't lose sight of the two things that are critical to our 
   success:
          One, we must remain focused on achieving total customer 
   satisfaction.  It must ultimately drive everything that we do.
          And two, we must all work together in the same direction.
          Think about this:  I cannot save your job.  Your manager cannot.
   Only our customers can ensure that you are successfully employed.
          We were very clear when we began engineering Digital's 
   turnaround that one of the areas in need of attention was sales and 
   marketing.  We knew that we had become in large part disconnected from 
   our customers, had not been listening to them, and had overlooked their 
   needs and requirements.  We had ignored the demand from our customers 
   for open systems.
          As part of our increased focus on the customer, we organized the 
   company around industry business units that would concentrate on 
   selling solutions to specific types of industries with specialized 
   needs.
          Understanding customer needs as the customer interprets them was 
   -- and is -- imperative to success in the marketplace. 
          But we realized soon after we began implementing our industry 
   business unit structure that we were creating too many duplications and 
   too much confusion in the field.
          We had built in unintentional complications that hindered doing 
   business and became roadblocks to growing product revenue for the 
   company.  We also succumbed to the temptation to revert to internal 
   focus rather than customer focus.
          And we began to get additional feedback -- from analysts and 
   others -- that we did not have enough sales and marketing focus on 
   products, on our bread and butter software and hardware that drive 
   revenue across industries.
          We continued losing market share.  Our revenue continued to drop 
   in our traditional core VAX/VMS-related business faster than growth in 
   our new businesses expanded.  Quite simply, we needed to correct that.
          In my November DVN with you, I showed you this slide to
   demonstrate how the industry business units would report into worldwide 
   sales and marketing to help us reduce complications --and to help me 
   track more easily how the business was doing.   
          The new System Business Unit, which we just renamed -- and which 
   one or two members of the business press have blown out of proportion 
   as some radical change in direction -- is not any different from the 
   core products slice of the company. 
          What we did was segment this six billion dollar piece of our  
   business so that we can understand how we are doing in all of our 
   various product dimensions.
          With respect to the media, it is helpful to keep in mind that 
   the media are in the business of tracking down and reporting news.  
   That's their job.  But I've found, unfortunately, that sometimes the 
   media do not develop an accurate understanding of the facts. 
          The press is making a correlation between our second quarter 
   results and the latest organizational refinement of the Systems 
   Business Unit.  They're simply not directly related, in terms of 
   quarterly results.  What is related is that over the past several 
   quarters, we've seen that our products business was not doing well.
          The issue became how to get more focus on the products business 
   to balance the industry business -- and that was the genesis of the 
   Systems Business Unit.
          The Systems Business Unit includes five product segments.  Those 
   five segments are:  

          o  client/server software
          o  OpenVMS client/server systems and software 
          o  UNIX/Windows NT client/server systems 
          o  memory and peripheral upgrades 
          o  and network products
   
          Our products have never been stronger across the entire spectrum 
   of client/server computing.  The Systems Business Unit has been put in 
   place to respond quickly and thoroughly to the marketplace with these 
   superior offerings.  It will provide focus on products which are 
   critical to Digital's ongoing business success.  Each product segment 
   will have a different business model, based on the objective for that 
   segment.
          Now, as a company, as a culture, we seem to have done two things 
   around this Systems Business Unit announcement which do not help any of 
   us at all. 
          First, we've taken it to mean that we have given up on 
   industries --  which we have not.  Approximately 55% of our sales 
   professionals and resources worldwide remain aligned by industry.
   And second, we seem to have turned it into a discussion of who's in 
   charge.
          The Board and I have discussed this in great detail.
          This refinement of our organization is definitely not a change 
   in direction.  It clarifies it, helps manage our business, and 
   continues to be customer focused.
          The creation of the Systems Business Unit does not signify a 
   change in strategy.  It is not about "who's in charge."  The senior 
   management of the company and I made all of these decisions together, 
   after careful analysis and spirited debate.  It is not about who has 
   more power than someone else.  It is an issue of focus on our 
   customers.
          The world in which we compete is complex, with more than one 
   dimension.  It became very clear that we could not simply treat our 
   broad array of products as a homogeneous block.
          The competition isn't doing that.  Our most successful 
   competitors are looking at different pieces of the market -- horizontal 
   slices as opposed to a vertical integration -- and we need to 
   understand our revenue and our costs against the competition.
          Many parts of our traditional product space now face focused 
   competition from companies that specialize in that relatively narrow 
   band.
          The Systems Business Unit will help us focus our product efforts 
   and understand better how to compete in all of the areas its various 
   pieces represent.
          We need to have different strategies to compete successfully in 
   different areas.  However, our industry organization will continue to 
   be a key part of our total marketing picture because they understand 
   specific customer needs.  They know how to pull together systems and 
   solutions that customers want and need in specific industries, with 
   specialized requirements.  And they are the ones who will work across 
   the Systems Business Unit in an integrated way.
          As the chief information officer of a major pharmaceutical 
   company in the U.K. told me when I visited him last week, one of the 
   biggest values Digital brings to him is an improved understanding of 
   his business -- and understanding how information technology can be 
   applied to make it successful.
          So this is not a matter of "one or the other" -- of product 
   versus industry.  It has nothing to do with industry focus going away, 
   or any one group or individual having more or less power. It has 
   everything to do with what we've committed to doing -- which is turning 
   this company around and making it profitable.
          Retuning, refining, adjusting -- whatever you want to call it -- 
   it all comes down to a matter of market realities; of competitive 
   challenges that must be met; of constantly re-examining our 
   understanding of what being competitive means; and of cohesion and the 
   successful balance of complementary capabilities within Digital.
   
    Responsibility

          We all have specific responsibilities in Digital.  Marketing 
   needs to understand the marketplace and interpret customer needs.
   Engineering needs to design the products and services that our 
   customers want.  Sales, marketing, engineering and services need to 
   have continuous communication and linkages to ensure that the customer 
   voice is heard and responded to by our infrastructure.  More than ever 
   before, this demands balance and teamwork.
          In a traditionally engineering-driven company, engineering may 
   perceive this as a loss of "power."  That would be a very mistaken 
   perception.  Engineering is still the technology expert.  But to be 
   successful, technology must be defined by customer and industry needs 
   through rational market research and knowledge.

          It is my job as CEO to pull these different talents and 
   responsibilities and marketplace dimensions together in a unified 
   direction and strategy.  That's what I am doing.
          As long as we speculate on changes for the sake of speculation 
   -- and as long as we obsess about who's in charge, about where the 
   power lies -- we are missing the focus on our customers, on our 
   competition, and on our work.
          There will undoubtedly be more changes coming -- more "tune- 
   ups" and adjustments -- as we learn more about operating in today's 
   marketplace, and as we refine our ability to meet customer needs.
          We've made many changes in the past 18 months.  With any change 
   of the magnitude experienced by Digital, mid-course corrections are 
   almost always inevitable.
          But we cannot divide ourselves in the process.  We must all work 
   together -- in the same direction -- to achieve our goals.
          That means all of us, the members of the strategy committee, the 
   territory management, the business unit leaders, middle management -- 
   and, for that matter, every single employee.
          Each and every one of the strategy committee members, each and 
   every one of the territory managers, has very clear goals.  And the 
   Board and I are holding each and every one responsible for meeting 
   their specific goals.  We are also holding everyone responsible for 
   teamwork, at every level and in every corner of the organization.

          We are within striking distance of returning to profitable 
   growth if all of us continue to focus on our work.
          We have bright spots from the first half of fiscal 1994 that 
   indicate efforts are paying off:
   
          o  We see a surging demand for our personal computers.
   
          o  There has been continued steady progress in Alpha AXP 
             workstations, networking components and peripherals.

          o  Our storage products, particularly StorageWorks, are 
             extremely well received, and we have won seven major video on 
             demand trials, although only two have been announced.
   
          o  We were successful in growing our business in the Asia 
             Pacific region.
   
          We are on track with our strategies and plans.  We are making 
   good progress in simplifying our product offerings, making it easier 
   for the sales organization to sell, the customer to buy, and the supply 
   and delivery channels to ensure customer satisfaction.
          We will be funding and measuring our global accounts on a global 
   basis.
          We have made good, positive strides in turning around our 
   relationships with our distributors, value-added remarketers and 
   independent software vendors.
          We've completed a transition from very undisciplined pricing to 
   a pricing policy that makes sense.
          And we are continuing to unite our focuses on industry solutions 
   and leadership products and services under the banner of open 
   client/server computing.  
          The very successful Oct. 12 open client/server announcement has 
   led to $1.2 billion in firm proposals for business.  And we have 
   already been able to close $266 million in business from that.
          On Feb. 8, we will announce the second wave of our open 
   client/server initiative, with more than 200 major new software 
   products that make it easier and more attractive for customers to move 
   to and implement client/server computing.  The announcement will 
   highlight integrated products that we and our partners can deliver now.
   
   Employee morale 

          Our efforts and our results in several areas provide further 
   evidence that we are on track and headed in the right direction.
          The turnaround is not as fast as we wish it could be, but our 
   direction and focus is clear -- and we are poised at this point in time 
   with many things working in our favor.
          Unfortunately, I know from talking to you and from the Notes 
   files that morale is not good.  We frequently are not pulling together 
   as a team.  Many of you are not happy, and in many cases, you're not 
   engaged.
          That doesn't surprise me.  Frankly, some days it's hard for me, 
   too.  And there is nothing our competition prefers more than for us to 
   be divided or weakened inside.
          I firmly believe that we can succeed.  We need to put all of our 
   energy on doing instead of speculating and worrying.  If we all work 
   together and hold to our commitments, together we can pull ourselves 
   out of our remaining difficulties.  
          I wish I could stand here and tell you that there will never be 
   another downsizing.  But we are still over-resourced nearly everywhere.  
   It comes down to a matter of what we can afford -- or what our 
   customers will pay to support our resources.  How do we size 
   appropriately to give the best value to the customer?  How do we size 
   appropriately for the margins we currently have?  It's a different 
   situation for different territories and locations, and management has 
   to wrestle with these things.
          Downsizings must be accompanied by some re-definition of the 
   work -- or simple elimination of work that isn't of importance to the 
   customer.  On the other hand, we must focus on every single one of us 
   being as productive as we can, so we can grow revenue and satisfy our 
   customers.  And we need to get past our nervousness and speculation as 
   a group if we are to grow the business.
          Some of you may be aware of the fact that Digital has begun 
   conducting focus groups throughout North America -- a preliminary step 
   in a planned company-wide survey -- to learn in depth how you're 
   feeling, and help identify how we can improve our relationships with 
   our employees.
          Your messages thus far are very clear.  This is a sampling of 
   what we've found -- and it's not always pleasant to hear:
   
          o  Some of you definitely feel the need to know more about 
             what's happening within Digital.  

          o  Some of you are losing faith in the credibility of the senior 
             management teams.
   
          o  Some of you are still feeling focused internally rather than 
             externally.
   
          o  Some of you are concerned about Digital losing credibility 
             with customers.
   
          You've used a wide variety of words and phrases to describe the 
   culture today at Digital -- among them stressful, paralysis, 
   bureaucratic, intellectually stimulating, smart people, high integrity,
   secretive, people covering their rear ends, very ethical, political.
          The focus groups also identified these trends, across the board:
   
          o  People in Digital want to make a difference.
   
          o  You believe in the excellence of our products and services.
   
          o  You truly enjoy your work -- and express a high degree of 
             responsibility to do your work well.
   
          o  And you care about our company and about each other.

          I know I have the privilege of working for some of the best 
   employees in any company, in any industry.  Our challenge is to make 
   sure that we capitalize on the pride and good feeling left in Digital 
   employees -- and make that work for you and for the company.
          People are very busy, and too often management thinks, "Well, 
   surely I'm too busy to spend any time talking about the company's 
   values."  That's complete nonsense.
          Our values, our morale, our confidence are absolutely important 
   to our success as an enterprise -- now and for the long term.
          I have to say that not everyone on my staff has an equal passion 
   for Digital's values, although they're loath to say so since it's quite 
   clear to them that I do.  But they're learning.
          Some of them even think I'm a nuisance when I want to talk about 
   the people of Digital along with our core competencies and business 
   strategies.  Too bad.
          I want you to know that morale and confidence in the company is 
   my top priority -- and we as leaders and managers are going to address 
   that issue.  That doesn't mean we're going to be feeding you all some 
   pap about how great it is.  That is inconsistent with my value system!
   We need open dialogues -- and honest sharing of information. 
         By July of this year, every employee will have had the 
   opportunity to participate in the Worldwide Employee Survey that we 
   have piloted.  We will be looking for views about a range of subjects 
   -- the company, management, your jobs, your contributions to customer 
   success.  The information will help us to identify the areas we need to 
   change -- and areas of strength we need to preserve as we renew our 
   company.
          Through local discussions of the survey results, managers and 
   employees will create action plans to improve the business and the 
   environment whenever and wherever possible.
          Your responses will also be mapped to our Core Values so that we 
   can understand better where we are as a company in actually living the 
   values.
          Values are aspirational.  Unfortunately, in some parts of the 
   organization, the reality does not necessarily reflect our value 
   system

          I know that some areas of the company have already started 
   having important conversations about Core Values.  I also know that 
   many of you feel that it is risky in today's environment to speak up 
   about things that are on your minds.
          But if open dialogue and ongoing discussions do not happen, we 
   will not be able to address important issues -- to fix what needs to be 
   changed and to preserve what is important.  I encourage all of you to 
   speak openly and constructively to help Digital succeed.  

T.RTitleUserPersonal
Name
DateLines
2891.1DissappointedRUTILE::AUNGIERWed Feb 09 1994 11:157
2891.3CVG::THOMPSONWho will rid me of this meddlesome priest?Wed Feb 09 1994 12:589
>    Re: Employee Morale - Does this mean Bob reads the files??

	Could be. Though most likely there are people on his staff who
	do and report summaries and perhaps notes of particular interest.
	One should never write things in notes that they don't want their
	boss and the management chain between them up to and including Bob
	Palmer to see.

			Alfred
2891.4CSC32::C_BENNETTWed Feb 09 1994 13:0512
        Re: Employee Morale - Does this mean Bob reads the files??
    
    Hopefully an CEO doesn't waste time with notes conferences.   I would
    imagine that he has more important issues.  Although  it sounds like he 
    is aware of morale issues.   I was with another company that went thru 
    hard times in the semiconductor industry and it does hurt morale.  You 
    have 2 choices - stew in the negative or take an active positive role in 
    the recovery of our company.  Hopefully you are in a position which
    allows you to do this.   
    
    I would reccomend that we not stew on what is bad with Digital but
    concentrate on helping our customers.
2891.5CSC32::C_BENNETTWed Feb 09 1994 13:4717
    .5 When the rewards at the end of a day for an employee for doing 
    .5 a good job are 0% 
    
    What Digital doesn't pay you a paycheck for your work?    Do you have 
    health insurance provided for you?   DONT take this for granted!    I
    get tired of people thinking that a job is where you go to get your ego
    petted.   
    
    .5 and a bad review despite customer feedback to the contrary, try 
    .5 and be positive then.
    
    Or what be negative and hate your job...  review.  
    
    or maybe we as a company need to buckle down and get a job done 
    despite everything.   I need to call a customer
    
    
2891.6SAHQ::LUBERI have a Bobby Cox dart boardWed Feb 09 1994 14:065
    re .4
    
    I wouldn't consider it a waste of time for Bob to read this conference. 
    It's probably the only place where he can really learn (a) what's going
    on, (b) what's wrong, and (c) how to fix it.  
2891.7BP mentions Notes in the DVNMUZICK::WARNERIt's only work if they make you do itWed Feb 09 1994 14:129
    
   >>    Unfortunately, I know from talking to you and from the Notes 
   >>files that morale is not good.  We frequently are not pulling together 
   >>as a team.  Many of you are not happy, and in many cases, you're not 
   >>engaged.
   
    (from .0)
    
    Either he's reading Notes, or someone is telling him about them!
2891.8"Boss , what makes you so intelligent .-)?"BONNET::WLODEKNetwork pathologist.Wed Feb 09 1994 14:326
    Why not invite more field people to the DVN ?
    Lots of questions in this particular DVN was from HQ folks. Which is 
    fine but maybe not next time again.

    				Wlodek 
2891.9NITGRANMA::MWANNEMACHERred neck, white sox & blue ribbonWed Feb 09 1994 14:432
    
    RE: .5  We have a portion of health insurance provided for us.
2891.10SPECXN::WITHERSBob WithersWed Feb 09 1994 15:0615
>================================================================================
>Note 2891.4               Bob Palmer Employee DVN text                    4 of 9
>CSC32::C_BENNETT                                     12 lines   9-FEB-1994 10:05
>--------------------------------------------------------------------------------
>
>        Re: Employee Morale - Does this mean Bob reads the files??
>    
>    Hopefully an CEO doesn't waste time with notes conferences.

Nope, hopefully Mr. Palmer gets useful information to guage employee morale and
issues from Notes Conferences, as well as technical and business problems.  I
would hope that he would follow Digital, Marketing, DCU, and a few other
strategic Notes Conferences.

BobW
2891.11SPECXN::WITHERSBob WithersWed Feb 09 1994 15:0813
(d) what the latest rumors are 8-)

>================================================================================
>Note 2891.6               Bob Palmer Employee DVN text                    6 of 9
>SAHQ::LUBER "I have a Bobby Cox dart board"           5 lines   9-FEB-1994 11:06
>--------------------------------------------------------------------------------
>
>    re .4
>    
>    I wouldn't consider it a waste of time for Bob to read this conference. 
>    It's probably the only place where he can really learn (a) what's going
>    on, (b) what's wrong, and (c) how to fix it.  
>
2891.12Some Do, Some Don't - I Would!FHOHUB::JAMBE::JAMBELemmings are Born Leaders!Wed Feb 09 1994 15:3713
Re: Some SLT members being sent NOTES comments -

It can be confirmed that Russ Gullotti has been forwarded entries from this 
NOTES conference.

I was tracked down by his office via the network police regarding note entry 
2609.29 - His office wanted to confirm the author of the entry and schedule 
a time when he could call.  I said I was flexible.  That was in September.

Russ should be given high marks for his DVN's - he communicates very well. 
We are pleased that he was able to reschedule DVN's outside "quite periods" 
and can only hope that his call was to thank us for the suggestion.  

2891.13channels...CSC32::C_BENNETTWed Feb 09 1994 16:008
    I guess I don't understand how engaging a CEO with everyones (85,000?)
    employees morale complaints would solve everyones problems.
    
    If you have a morale problem maybe a good talk to your immediate manager 
    is the right thing to do.  If this doesn't give you peace of mind 
    then maybe you want to elevate to their immediate manager.    I would 
    expect that during this discussion that a positive method of addressing 
    the problem would be hashed out.  
2891.14But the emperor has EARS!NEMAIL::HANRONWed Feb 09 1994 16:3016
    re .13
    
    I don't think it's a waste of time for the CEO to listen to his/her
    employees' morale issues.  Whether there are 85,000 employees or 5
    employees, it is generally well understood that middle layers of
    management do not communicate the general condition of the playing
    field.  It is increasingly difficult to keep an eye on on these things
    as one goes up the corporate ladder, I would think.  When an
    organization is reduced to resolving issues strictly by corporate
    process, I would think that that is where the problems really begin.
    
    People buy from people, the old sales saying goes.  When people (i.e.,
    employees) don't mean much to a company's leaders anymore, then who
    might we assume that customers might turn to instead ?  Perhaps companies
    where people ARE valued enough to be listened to (if only rarely) at
    the top.
2891.15My .02GLDOA::DBOSAKThe Street PeddlerWed Feb 09 1994 16:3667
    I've tried to respond to this string twice already and each time I
    wasn't able to get to the point.
    
    Third time's the charm (Hopefully):
    
    Palmer and crew have a grip on what is happening.  They hold the view
    that it took a long time for the company to get sick and there aren't
    any instant miracle cures to make it feel better.  In order to heal the
    patient, they are trying different approaches.  That takes time. 
    Inherent in that approach are successes and failures.
    
    As to employees, Palmer holds the view that employees pretty much have
    ownership of continued employment (even though we are "over-resourced"
    for the market.)    
    
    He is aware of the pervasive negativism and in the fact that there are
    folks who won't "Engage."  He knows there is a morale issue.
    
    I think he understands and I think he and his crew are working towards
    solutions.  
    
    We had an executive breakfast briefing in my patch hosted by Colotosti
    -- He had some interesting views (Some things were new to me).
    
    Did U know that five years ago we had 2 Bil in pre-tax profit. 
    Since then, we grew by 4 Billion in revenue with profits at essentially
    break-even.  Our margins went from 75% (gross) to 35% (gross).  (That
    17 quarter reference)
    
    Hmmmm -- How do we maintain the status quo in that scenario?  My take
    is that you can't.
    
    Colotosti had some other observations:
    
    There was a paradigm shift from Bigger systems, Bigger margins to
    smaller lower margin commodity type products.  We missed the dymamics
    in that shift.
    
    We were staffed for "A" in a "B" world -- Sounds like a disconnect.
    
    He had another interesting point -- Things happen in cycles -- In the
    mid-80s, Digital was growing by 40% and had money to burn.  The
    competition was sucking wind.  Now, 10 years later, with the
    directional shift of the company AND the product suite, we are
    positioned to be on the front of the Curve -- As we were in the 80s.
    
    My take is that we have a window and we can run like hell through it or we
     can miss it.  It's up to us.
    
    Palmer can do whatever he wants but if worker-bees continue to only
    focus on the negative, continue to dis-engage, continue to look
    inward rather than outward  - The only thing Palmer
    will do is to suck wind -- He can't get this thing done on his own and
    I believe that's one of the messages he delivered.
    
    It's time.
    
    
    My .02
    
    Dennis
    
    
    
    In that time interval, we went from 35 plants to 12.
    
    
2891.16SPECXN::WITHERSBob WithersWed Feb 09 1994 16:3710
    The low morale of Digital employees is epidemic in proportion.  I don't
    think this conference is about individual morale problems; it reflects
    the general climate.  So, there's one morale problem with 85,00
    instances.
    
    Now, there's a touch of hyperbole in the previous statement -- I'm
    pretty sure the SLT doesn't have a morale problem.
    
    BobW
    
2891.17XLIB::SCHAFERMark Schafer, Development AssistanceWed Feb 09 1994 16:458
    I liked his candor, although not included in the livewire article.  One
    of his statements about running the business was "Don't run out of
    cash!  Anyone running a burger stand knows that."  And then he went on
    to show the good side of our financial situation.  What did I take from
    that?  I now understand that his day-to-day business decisions are alot
    like my personal decisions.
    
    Mark
2891.18Speaking of business decisionsQBUS::M_PARISESouthern, but no comfortWed Feb 09 1994 17:107
    
    Re: -1
    
    Like if I had a hamburger business that was losing customers and
    money, the first thing I would do is give myself a raise.
    
    
2891.19XLIB::SCHAFERMark Schafer, Development AssistanceWed Feb 09 1994 18:316
    > give myself a raise
    
    The board approves the raises (and all other compensation).  BP
    stated during the Q&A that no VP was given a bonus in Q2.
    
    Mark
2891.20STAR::ABBASIalways give a check,it might be mateWed Feb 09 1994 18:3212
    .12
    
   > It can be confirmed that Russ Gullotti has been forwarded entries from
   > this NOTES conference.
    
    OMIGOD !!
    
    do you have any idea if may be any of my notes saw their way to the SLT
    offices please?
    
    \nasser
    
2891.21CVG::THOMPSONWho will rid me of this meddlesome priest?Wed Feb 09 1994 18:409
    
>    do you have any idea if may be any of my notes saw their way to the SLT
>    offices please?
    
    I'll tell you what, I round up a few of your notes and send them off
    the the SLT members I can find Email addresses for. That way we'll
    know. Hope this helps.
    
    			Alfred
2891.22XLIB::SCHAFERMark Schafer, Development AssistanceWed Feb 09 1994 18:411
    maybe some turkey recipes.  :-)
2891.23RUSURE::MELVINTen Zero, Eleven Zero Zero by Zero 2Wed Feb 09 1994 20:0710
>    The board approves the raises (and all other compensation).  BP
>    stated during the Q&A that no VP was given a bonus in Q2.

BP seemed to be using 'officer of the corporation' VP definition... He mentioned
something like 23 or so?  ANyway, I felt the questioner meant VP as in the
100+ people that have the VP title, officer of the corp not being a criterion.

To me, it seemed like just about every question was evaded.  MY opinion only.

-Joe
2891.24DYOSW8::BROWNEWed Feb 09 1994 21:3025
    Let me be real frank with the following thoughts from the DVN:
    
    	1. Bob Palmer's stated "top priority is the morale and confidence
    in the company", and by any measure that morale and confidence is at an all
    time low! 
    
    	2. " We had $240 million in orders left after Q2 that we couldn't
    ship." ---- Yes, and whose responsible? ( Hint: Don't say sales because
    of poor forecasting. The problems with our forecasting process and
    and the associated admin systems have been repeatedly brought to the
    attention of the SLT over the past year.)
    
    	3. Over the past 14 months, we in Digital have spent 7 months
    planning and 7 additional months implementing a "Customer Business
    Unit" structure that created "too many duplications and too much
    confusion...We had built in unintentional complications that hindered
    doing business and became roadblocks to growing product revenue...We
    also succumbed to the temptation to revert to internal focus rather
    that customer focus."  Given the condition of this company in July of
    1992, that was 14 months that we could not afford to lose to confusion.
    
    	Our business is not very similar to baseball! This business is much
    TOUGHER..... BUT...Three strikes and you are out.	
    
                                                     
2891.25Only by making the PIE bigger will we truely succeedDPDMAI::WISNIEWSKIADEPT of the Virtual Space.Wed Feb 09 1994 22:2734
    All the audiance questions were internally focused on how Digital
    works (property, legal, IM&T) and Mr Palmer attempted to answer 
    the questions with redirection into the answers he wanted to give 
    in the first place.
    
    I took exception to the statement and repeated statment that 
    VAX/VMS declining sales are responsible for our poor performance
    and that OSF/1 and WNT haven't ramped up to take the place of 
    these lost revenues.
    
    We are shipping record levels of all our platforms (OpenVMS included)
    the real culprit is the decline of real cost for computer power and 
    the margins we no longer make on large boxes.
    
    Computer hardware and OSs are commodities and we are downsizing
    in the wake of these reduced costs.  OpenVMS customer demand 
    and Number of licences are up but the boxes are Workstations,
    PCs and small servers that aren't nearly as expensive as the 
    boxes we made just a couple of years ago while packing hundreds
    of times the power of our previous systems.
    
    The margins aren't coming back and we'd better get comfortable 
    living on commodity hardware or have some real added value 
    in software or consulting to make up the difference.... Some 
    real volumes of our systems wouldn't hurt either...
    
    OpenVMS isn't the cash cow it once was because smaller cows are 
    the order of the day.  We either sell more cows or live on less 
    cash...
    
    OpenVMS was 70%+ of the systems business last quarter, Let's build
    on that not compete against it with OSF/1 or WNT...Only by making 
    the pie bigger for Digital will we truely succeed.  There's no 
    margins in only changing the pie's contents...
2891.26warp speed scotty!HIBOB::KRANTZNext window please.Thu Feb 10 1994 04:342
	If morale is highest priority, why will it take 6 months just to
get the results of the survey?
2891.27Q3 Employee DVN Q & ATRACTR::SAPPRandom Kindness/Senseless Acts BeautyThu Feb 10 1994 12:31724
Worldwide News                               LIVE WIRE
 
                Q&A from Employee Forum DVN broadcast
 
          (Following is an edited transcript of the question-and-answer 
   session that followed President and CEO Bob Palmer's Q3 Employee Forum 
   address on DVN last Monday.  The first two questions were asked of Bob 
   when he was in the UK last month.
         (Videotapes of the Q3 Employee Forum can be ordered on-line via
   OPAL.  Type VTX OPAL at your system prompt.  Choose #10, AVCATALOG;
   then select #3, "New Titles."  Under that submenu, select #2, "DVN
   Q3 Employee Forum.")
 
   There's a perception that Bob Palmer is no longer running the 
   company and that Ed Lucente is actually taking over.  What's the reality? 
   
          That's not Ed's perception.  That's not my perception.  And 
          frankly, it does a disservice to all of the other direct reports 
          that run large pieces of our business.  The reason I think some 
          people think that is again because of a completely erroneous 
          article in "Business Week."  The reality is that each of the six 
          business units is more than a billion dollar business, and 
          everybody has a piece of what's necessary to turn the company 
          around.  I think Ed's is the largest, but services taken 
          together between Gresh Brebach and John Rando's a little large.  
          But in any event, everybody has taken on additional 
          responsibility and everybody's responsible.  In that regard, I 
          was quite pleased that Ed was willing to take on the additional 
          risk and the additional responsibility of running our Systems 
          Business Unit.  
   
   Major changes and substantial cuts are being made in Europe.  What, if 
   anything, is being done of a similar nature in the US, particularly at 
   corporate?
   
          Well, the reason that there is that perception is that we have 
          just announced a downsizing in the next months in Europe that's 
          quite substantial -- between 5,500 and 6,000 people, as I 
          recall.  But we have actually been downsizing during the time 
          that I was running Manufacturing, and since becoming CEO, across 
          the globe and relatively uniform.  We were a little slower to 
          get around to Europe because we didn't have permanent leadership 
          in Europe until very recently, and so it feels a little harder 
          in Europe right now.  But basically they're catching up with the 
          rest of the company.  
   
  In the Property organization, we have been aggressively decreasing our 
   portfolio in relationship to the downsizing of employees.  With new 
   senior management on board, their expectations are for higher space 
   standards, including far more space square footage for their individual 
   offices, which may be appropriate for them, but it is setting a 
   precedent for the rest of the company.  Can you give us some guidance 
   on how we should deal with this issue?  
   
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Worldwide News                            LIVE WIRE
          We don't need big-shot offices for me or for my staff.  Our 
          company is one that has striven over the years, sometimes 
          successfully, sometimes not, to maintain a minimum of social 
          distance between the different levels of management and the 
          company, and that's the way we need to keep it here at Digital.  
          You know, we are all on the same team and we are all valuable 
          employees of this team.  We don't want to create unnecessary 
          accoutrements, you might say, to the different job levels.  It 
          is important, in some of our sales and marketing areas in 
          particular, that we have a reasonably nice office to invite our 
          customers into.  But on the whole, we don't need any palatial 
          estates in our company or any special privileges.  
   
   I'm also from the Property organization.  But I have a question about 
   how we as headquarters staff can help in the customer outreach program. 
   For example, we ourselves become customers, whether we're buying 
   products for our home use or whether we're using it here in the office.  
   And there are often times when we have a hard time dealing with the 
   purchasing process, calling the right places, getting the right 
   information about what it is we need to get. And it creates frustration 
   for us, but then when you extrapolate that out to the customer base at 
   large, you wonder how we can continue being successful. 
   
          I think that's a very good observation. We can't continue being 
          successful with that kind of a structure.  And as you know, one 
          of the largest activities we have going on in the company today 
          is what we call the customer value chain re-engineering effort.  
          We have customers out  there that want somebody to show up from 
          Digital and take an order.  Having taken the order, they want 
          somehow the stuff to be shipped.  It seems like a very 
          reasonable expectation.  I've had customers tell me that they 
          were unable to successfully complete that transaction because we 
          were so complex.  So we're redesigning the whole thing, and this 
          is among the most urgent problems we have in the company.  As a 
          matter of fact, in the second quarter, I was disappointed at the 
          results.  We had about $240 million dollars of orders left that 
          we didn't ship.  So we've had supply problems, we've had order 
          admin problems, we've had follow-up problems.  We've got to fix 
          this stuff.  This is not a hobby, this is a business.  We need 
          to connect with our customers so we can make an exchange of our 
          products and services for their money.  It's pretty simple, and 
          we've made it very hard, so we're trying to fix that problem.  
   
          By the way, while I'm rattling on here, that Property Management 
          group has done an excellent job of continuing to dispose of 
          excess facilities that we have over the globe.  Sometimes they 
          don't get a lot of credit publicly, but since two people asked a 
          question, it kind of stirred in my mind to say thank you, it's 
          good work.  We've been able to sell facilities in a very 
          difficult market on a worldwide basis, and for the most part 
          we've actually netted a slight gain in the facilities that we've 
          sold.  
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Worldwide News                              LIVE WIRE
 
   I am representing the Law Department.  My question for you is, are you 
   concerned about the effect the press Digital has received through 
   print, radio, and recently from our business analysts.  Are you 
   concerned about the effect this has on the company and our customers, 
   and do you feel that we may work towards softening our image through 
   this medium?  
   
          Well, I do get concerned about it.  Usually, I'm concerned about 
          inaccuracies.  I don't care for these articles where our  
          Communications Department has provided the author with the  
          facts, and the person just chooses to ignore the facts because  
          they don't support the story that they've already written.  I 
          don't like that much.  And to be honest, I haven't had much of  
          that.  I've been in the job now 16 months and I'd say with the  
          exception of one or two articles just recently, I've been very  
          well treated by the media.  It's been very fair.  I mean, they  
          don't always print great stuff because we're obviously slogging 
          through some difficult times, and I don't mind that.  I do mind 
          when there are distortions, inaccuracies, complete 
          misrepresentations, because it does cause concern in the 
          marketplace and it causes me to waste a lot of my cycles putting 
          that kind of nonsense down.  But again, the best thing we can do 
          in the near term is get some profitability in the company.  
          Relative to where we were, we have had a remarkable progress.   
          You know, if you think about before I took on this job, we'd 
          lost $3.9 billion dollars.  In the five quarters, I think we've 
          lost about $410 million, or about 11% of the previous.  I'm  not 
          happy about losses, you know.  But from where we were and the 
          path we were on, this has been a remarkable turnaround as a 
          result of all the hard work you've done.  That's what's 
          happened.  We had one quarter where we didn't do that much 
          better than the previous quarter, although on an 
          earnings-per-share basis, it was a 7% improvement.  On a profit 
          after tax, about a 2% improvement.  It was primarily because the 
          revenue and our traditional VAX/VMS-based products and services 
          is declining faster than the revenue from our new Alpha stuff 
          can fill it in.  Actually, Alpha's growing fast, but from a 
          small base.  That is a transition that we have to go through.  
          We're going from VAX/VMS, that 32-bit architecture, to a new 
          Alpha AXP 64-bit architecture. That transition is about a 
          four-year transition anytime anybody makes a transition of that 
          type; that's historical data.  So this isn't any surprise, and 
          in point of fact, we did a little better.  Five quarters in a 
          row better after 17 every quarter worse.  
   
          So fundamentally, I do not have a problem with my board of 
          directors, I do not have a problem with my conscience. I do have 
          a problem in terms of feeling positive every day because I know 
          there's a lot of pain out there as we restructure this company, 
          but there is no alternative.  There is no alternative.  We've 
          got to get competitive and we've got to grow our business, and 
          that's what we're doing.  
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Worldwide News                              LIVE WIRE
 
   [Elin Lee]
 
   I'm with the M&L IM&T organization.  My question is two-fold regarding 
   Q2 spending. And how it is going -- if it is going to be continued in 
   Q3.  We're seeing more layoffs.  I've survived a layoff.  It's 
   disintegrating employee morale, like you mentioned, and there were 
   even requests to take time off without pay during Q2.  And a lot of us 
   heard a lot of rumors which I'm hoping you will refute.  One is that 
   there were 17% bonuses given to vice presidents in Q2. 
   
          In the second quarter? 
   
   In the second quarter.  That's what I heard. 
   
          They must have given them to each other.  (Laughter)  This person 
          didn't approve any bonuses for anybody during the second quarter.  
          You have to earn your bonus by the end of the year, which is the 
          way it should be.  Just right now our management team isn't earning 
          any bonus.  If we don't improve our performance between now and the 
          end of the year, there won't be any bonus for the executives, 
          including the speaker here.  Nor should there be.  On the other 
          hand, we do have sales professionals whose part of their salary is 
          a commission.  Obviously we're paying that, and there might be some 
          confusion about that.
   
   OK.  We're hearing other things of other perks for our high-level 
   executives, and I was just wondering if you can help us understand how 
   compensation guidelines are derived for senior-level management versus 
   other employees.  
   
          Sure.  Actually, I can absolutely answer that question. 
          Compensation for all employees is derived by external survey.  
          We go to external companies that are in the salary compensation 
          business and we look at what is reasonable for different levels 
          in our company versus our competitors.  That's the same as for 
          the officers.  The difference in the case of the officers is 
          that the board of directors specifically has to approve any kind 
          of perks, salary increase, benefit or whatever for the officers 
          and for those that are in the top five, you have to publish it 
          as well, all of which I think is healthy.  I mean, it should be 
          that way.  
   
          This is not our money.  It's determined by the shareholders.  
          And fundamentally, the board of directors has that 
          responsibility.  I have the direct responsibility below that 
          level to make sure that these compensation is fair, and we're 
          trying to move from a system that kind of paid everybody whether 
          you contributed or not to a system that pays for contribution, a 
          meritocracy.  And we're going to take multiple years to do that 
          because we haven't had that in our company.  My view is people 
          should be paid on the basis of their contribution, on their 
          accomplishment, on the skills that they bring to satisfying our 
          customers' needs.  Not on how long they've been here, not on 
          their gender, not on their race, not on their sexual preference 
 
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Worldwide News                               LIVE WIRE
 
          or religion. Those things are interesting but they're not 
          important in terms of performance.  What counts is what is your 
          ability, what is my ability to contribute to the success of the 
          enterprise.  And every one of these salaries and benefits should 
          stand up to public scrutiny vis-a-vis our competitors, and I can 
          assure you that they do.  The numbers are large for senior 
          levels in a company of this size, no question about that.  The 
          numbers are large.  And throughout the company they're 
          reasonable.  At the top, they're large and reasonable when 
          compared to the competition.  I can't defend the whole system, 
          you know, I can't do that.  But I can assure you that the way 
          it's done is professional and relies on external data. 
   
   I work in the US Benefits organization.  Our group has responsibility 
   for managing the benefit programs offered to the US employees, and I 
   would say that, at least from this employee's opinion, that we're 
   giving 150% towards the company, and I think, at least from my opinion, 
   what would make me feel really good as an employee with regard to some 
   of the things that you've spoken about is if somehow we could see the 
   stock price reversing the trend that we've seen.  To me, that would 
   seem to be an indication that the things that you spoke about are 
   really taking effect and that we are satisfying the customers. 
   
          I think that's a very good observation. 
   
   So I was wondering if you could comment on that
   
          You're exactly right.  At one level that is kind of your report 
          card as a company -- what is the market value of your company?  
          And right now our stock is at a 52-week low, or very near it.  
          That reflects the fact that the analysts are concerned that this 
          decline in the VAX/VMS systems business is going to continue 
          faster than we can bring up the Alpha AXP revenues. And analysts 
          that trade this stuff, write about it, are very short-term.  
          They look out three months, six months.  This is not an 
          investing kind of thing for the most part.  We have some people 
          that own our stock that hang on for the long term.  There's an 
          inertia in either direction.  Things tend to overshoot on the 
          upside or overshoot on the downside.  Right now they're 
          overshooting on the down side because analysts are concerned 
          that we are not going to be able to stop this revenue decline.  
          They have a reason to be concerned. I'm concerned, and the 
          senior management of the company needs to be concerned.  That  
          was largely why we created that Systems Products Business Unit 
          so that we could focus on slowing that decline, and we 
          recognized that our VAX/VMS business is somewhat different from 
          our Windows NT or UNIX businesses.  And so we wanted to make 
          those strategies different.  We need to slow that decline.  But 
          you're right.  You could look at the stock price and say, gee, 
          relative to where we've been, how is that doing?  Right now 
          we're bumping along the bottom there.  It also reflects a 
          concern on the part of the analysts that if the revenue doesn't 
 
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Worldwide News                                LIVE WIRE
 
          recover, it means that we will have to take a large 
          restructuring reserve, which reduces the book value of the 
          company. That's what many of them are speculating about.  I 
          think it's too early to say on something like that, and I'm not 
          making any forecasts.  But I'm pretty cognizant of why they're 
          concerned.  So we all have the same concern here.  
   
          Your number-one job, though, is not, surprisingly, shareholder 
          value.  Your number-one job is customer satisfaction.  If you 
          satisfy your customers the earnings and the sales growth will 
          follow and the shareholder value will follow that.  And so my 
          focus really is on how do we satisfy our customers with superior 
          products and service, how do we get the revenue and the earnings 
          returned?  Then the share price will follow.  That's the 
          objective.  
   
   There's been a lot of speculation about divisionalizing the company or 
   spinning off pieces into wholly-owned subsidiaries. Could you comment 
   on that, please? 
   
          The idea was if you remember that stack I had on the chart that 
          talked about a vertically integrated computer company, which 
          Digital has been for all of its career, really, and the 
          de-layering, if you will, of pieces of that.  That is, the 
          electronics is largely now replaced by microchips, and there are 
          a few companies in the microchip business at the very bottom of 
          that stack.  Up a notch is the operating systems, companies like 
          Microsoft and Novell.  Those companies are in that horizontal 
          piece.  You go up another piece, there might be data bases like 
          Oracle and SyBase, and so on through the entire stack.  The 
          important thing is if you look in those horizontal slices, what 
          you find is that even though our total investment's very large, 
          our investment within any particular slice is not as large as 
          the leading competitors in that slice.  That means for the most 
          part that you have a failing organizational strategy.  
   
          We're a smart bunch of people here, smart engineering, smart 
          everywhere, but so are our competitors.  And if they're more 
          focused and spending more money, the probability is they will be 
          successful and we will not.  So we have to organize our business 
          and de-layer it a little bit, not totally. A good example would 
          be, say, our personal computer business.  Pull the personal 
          computer business out, set it up as essentially a stand-alone 
          division.  That business is growing at double-digit rates, 
          nearly 100% per year.  It's astounding, really, the market after 
          our three or four previous miserable attempts to penetrate the 
          PC market.  New leadership and Enrico Pesatori being very 
          successful.  You may have seen that our new Digital XL series 
          was the first PC that was upgradable by just changing a little 
          daughter card inside the PC from a 486-based machine to a faster 
          486 to a Pentium chip or to an Alpha chip.  So the customer buys 
          the box and all they have to do to upgrade it and keep it 
 
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Worldwide News                               LIVE WIRE
 
          powerful and current is change this one little card in there.  
          That was best of show at several of the PC shows.  And we 
          basically could have shipped more product in Q2.  We were 
          essentially sold out, you know, in terms of our product.  
   
          Storage is another good example I mentioned in my speech.  You 
          know, three or four years ago, we were headed right out of 
          business building only big disks and ignoring the realities of 
          the marketplace.  Charlie Christ came in, turned that completely 
          around.  Our business is growing like crazy.  We're a run rate 
          now of something like a million disks a year.  Can you imagine a 
          million disks?  That's the run rate and [it's] increasing.  
   
          Again, we cannot meet the demand for those products.  And the 
          video on demand wins that we've had, four in the United States, 
          three outside the United States.  Major big telecommunications 
          companies choosing Digital to partner with for their video on 
          demand platform that was designed and developed within Charlie 
          Christ's organization.  So storage is a separate division -- got 
          a separate business model, like PCs.  
   
          You look at Digital Consulting.  The consulting business, to go 
          in and help customers with solutions is a different business 
          than the systems business, so you need a different business 
          model.  So that's why we're setting these things up.  
   
          Now the other part of your question, though, how about spinning 
          them out and having them sold or something.  There's no current 
          plan to do that, but you have that opportunity if you set them 
          up so that they're essentially independent.  Also, if you're  
          the chief executive, you have a much better chance of measuring 
          each vice president's performance if they have a well-contained 
          unit.  The way it was when I took on the job, there was one 
          thing that all came together as a big mush ball, and if you 
          tried to figure out who's making money or losing money, there's 
          nobody inside the company that could agree on that because it 
          really depended on how much did you allocate to this person or 
          that person of some kind of corporate load on the business.  
          Today we can absolutely understand which of our business units 
          is making money and growing, how much cash is it using, how many 
          assets are employed, how many people are employed in the thing?  
          All of the things you need to know in a business.  Then you can 
          decide, is that a business I want to be in or is that a business 
          that Digital should let somebody else be in, or whatever. So 
          we're making tremendous progress on getting this in a way that 
          you can analyze it and manage it and run it.  At the same  time, 
          that's largely driving a lot of the downsizing, because when you 
          get into a business that has gross profit margins at 20%, say, 
          like the PC business, you know right away you can't carry a lot 
          of overhead.  It just will not carry it.  And so as we keep 
          looking at those different business models, we have the 
          opportunity to improve our overall performance.  
 
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          By the way, in that quarter just ended of the six business 
          units, four business units were doing better than their 
          operating plan on profit.  Four business units.  Now when I 
          talked to the board of directors at Q2, I wasn't feeling all 
          that good because I really had expected we had a chance to break 
          even in Q2, and we did if we'd shipped what we had orders for. 
          That's not all Manufacturing's fault, by the way.  A lot of 
          times the orders came in too late to ship, and in most cases 
          the forecast of the demand was not that close in terms of mix to 
          what actually was ordered.  So it's a generally shared problem.  
   
          But anyway, I wasn't feeling that great about it and I was 
          talking to the board about, well, but we did have four business 
          units that made their profit goal.  The board was ecstatic.  
          They said four is more than they've ever seen in the company 
          before actually make their achievements since our halcyon days 
          in 1988.  And so it's progress.  Now the other two, they're not 
          quite making their profit at this point.  One expects to by the 
          end of the year.  The other one doesn't have a chance, and so 
          the issue there is how can you minimize the losses in that one?  
          But four are making it, and by the way, only one of those four 
          is making the revenue plan.  So the others are saying, gee, my 
          revenue's not coming in as planned, I can manage this business 
          to get the profit. And that is what management's about.  So I 
          want to be positive about it.  
   
   I'm with the US Acquisition IM&T.  Over the past year or so we've seen 
   quite a few people transitioned out of the company, and at the same 
   time a number of VPs have been hired. Do you see that streamlining 
   upper-level management would help not only to eliminate some overhead 
   but also help cut the bureaucracy in the company today? 
   
          Actually, that may be a perception.  It's not an accurate 
          perception.  The company had at one time since I've been in the 
          company, some 45 officers.  Today we have less than 26.  Out of 
          the 26 we have, more than 50% are new people.  Either people 
          promoted from within or hired from the outside.  So the reason 
          people might have that perception is we have these announcements 
          and they say, gee, they hired somebody, they hired somebody, they 
          hired somebody.  It looks like a lot of vice presidents.  This 
          is a huge company, today at about 93,000 people, and you need some 
          management structure.  But as I say, it's 25 or 26 as opposed to 
          44.
  
          The other thing I look at, although you didn't ask it, is as we 
          do the downsizings, I asked Dick Farrahar, who's head of 
          Personnel, to get the data by job level. And I want to avoid 
          this thing where what happens is all of the workers in the field 
          get laid off and all of the management stays, you know, which 
          is the traditional thing that happens in downsizings.  And we 
          have the data by job level, and Dick assures me that it's 
          relatively uniform.  The largest number in percentage terms are 
 
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          exactly the vice presidents.  It turns out that we have had a 
          departure from our company of more vice presidents on a 
          percentage level than any other category, and it was necessary 
          in my view.  
   
   [I'm in] Computer Network Services. There's a lot of necessary focus on 
   our income statement, but shifting for a moment, with the downgrading 
   of our debt and the debt registration, can you talk about your feelings 
   on the trend in our balance sheet? 
   
          Yes.  I'm glad you asked that question.  Digital continues to 
          have one of the stronger balance sheets in the industry.  That 
          is to say, the amount of debt we have is approximately a billion 
          dollars long-term debt.  We have $1.1 billion dollars of cash on 
          hand at the end of the quarter just ended, so it's very strong.  
          In terms of the quarter, by the way, we had positive cash flow 
          in operations. Just barely, but it was positive.  It's very 
          important that you maintain enough cash, and so what we did was 
          had this registration of preferred stock which would enable us 
          to raise several hundred million dollars, up to a billion if we 
          need it, as working capital to run the business.  But it's our 
          intent to continue to maintain the balance sheet quite strong, 
          and that is the chief focus of the chief financial officer and 
          myself, and of course the comptroller of the company. So Bill 
          Steul and [Vin] Mullarkey and I primarily focused on that.  
   
          Now the group that's been spending all of their attention to it 
          is our Treasury group under Ilene Jacobs, and she's done, and  
          her team has done, just an outstanding job.  You know, it was 
          remarkable that we were able to get shareholder approval for 
          that preferred stock offering.  They managed that.  They've 
          managed all of our debt requirements very effectively, so we've 
          got a quite competent Treasury function in this company, and 
          that's very important.  So the company is strong on the balance 
          sheet, has plenty of cash to run the business, but on the other 
          hand, our margins are continuing to decline.  
   
          Let's talk about the business in kind of an overview.  During 
          the last year margins continued to decline rather dramatically. 
          In fact, in the quarter just ended, the gross profit margin was 
          down 23%.  So that means you had 23% less dollars as a function 
          of sales to pay for all of the stuff we needed.  In addition to 
          that, the mix of the products are such that it's moving away 
          from the high profit margin, big machines and big systems to the 
          desktop and deskside products.  So this isn't going to reverse 
          itself, in my view.  We have to learn to live on less profit 
          margin in order to maintain the strength of our balance sheet.  
          And all of these things play together.  
   
          Now it happens that, as I said in my speech, if we had not 
          reduced research and engineering by some 18%, if we had not 
          reduced our selling general and administrative overhead expenses 
 
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          by 23%, then instead of having this $150 million dollars or so 
          loss in the first two quarters, we would have had a loss of $750 
          million or more.  That will destroy your balance sheet and so we 
          can't allow that to happen.  
   
          We've got to maintain two things here.  Don't run out of cash.  
          If you're running a hamburger stand, don't run out of cash.  
          So if you're running a company this size, that's your number-one 
          requirement -- do not run out of cash. And, you want to preserve 
          a strong balance sheet. These are not that complicated, really.  
          It's surprising, though, how many companies lose sight of that.  
   
   I'm from IM&T.  I wanted to ask you about an opportunity.  We've heard 
   a lot about the Internet and how it's turning into the international 
   information infrastructure. I wonder if you could give us some of your 
   thinking about how we might increase our already large current 
   participation in that movement, not only internally but externally 
   through consulting services, marketing, engineering, and sales?  
   
          This is a very big area of opportunity for Digital.  As I 
          mentioned, right now Digital is far and away the leading vendor 
          in terms of video on demand server wins.  I wish I could 
          announce some of these things, but the customers are quite clear 
          that they want not to announce it until they're ready.  So I'm 
          told that one of them, a major one, is going to be announced 
          this month in New York.  We're going to have several others. 
          This is where we have provided the storage platform, the 
          networking, some software, some computing in the case of Alpha 
          AXP, various architecture to enable a provider of video on 
          demand to have an efficient way to do it.  Some of them are 
          trials, some of them are full-blown roll-outs that go on for  
          multiple years and represent tens of millions of dollars in the 
          first phase for Digital.  This is an example of good selling, 
          good marketing, understanding the market, good engineering, and 
          Digital participating in that phase. But there are many other 
          phases we could participate in.  You know, on the user end in 
          the home, you're going to need some kind of relatively serious 
          computing in order to provide the full attributes that people 
          envision for the national information infrastructure.  The Alpha 
          architecture would be ideal for that if we could drive the costs 
          down.  
   
          So there's many opportunities there.  There are opportunities in 
          wireless and mobile communications related - or computing 
          related to this national information infrastructure.  Now what 
          we have is we have several people within the Senior Leadership 
          Team working on a strategy, has been going on for a long time, 
          both in my direct reports as well as with our strategy group, 
          that ad hoc group that works for Lucia Quinn, looking at where 
          are the opportunities for our technology in this unfolding 
          national information infrastructure.  And there are many of 
          them. And as a matter of absolute fact, we're reviewing that 
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          next week.  It's kind of a check-in on the next phase of the  
          work, and we're going to be looking at some proposals from the  
          Communication, Education, and Media group, Paul Kozlowski's  
          group. I think this is going to be a good opportunity for 
          Digital. It's not the only opportunity, but it's one that we 
          have so much talent and technology on we definitely should get 
          some growth out of that part of the market. Thank you.  
   
   I'm from the Designer Facilities organization. I have a product 
   strategy question. Recently IBM, Motorola, and I believe Apple 
   announced an alliance whereby they're producing this PowerPC [chip].  
   What does that mean for us in terms of our overall Alpha strategy? 
  
   
          It means that the PowerPC is a viable competitor against the 
          Alpha architecture.  Now it happens that in most of these things 
          there's a good deal more hype than reality.  In this particular 
          case, the PowerPC doesn't have any applications today.  It will 
          be running, though, the Macintosh 7 operating system for Apple, 
          which is a big deal.  The reason that they're getting so much 
          play is because of that relationship.  The IBM volumes are very 
          low.  They've only got one product that's even announced on it 
          yet, and they don't have an operating system for it.  But 
          because the volumes for Apple are so high, people say, gee, that 
          should be a successful operating environment.  That should work. 
          PowerPCs should have some volume.  Now they're worried about 
          Alpha.  Will we have some volume in order for our costs to be 
          competitive?  Next week if not in fact this week I hope to 
          announce a solution to some of that question.  The question 
          really is how can you afford the semiconductor investment 
          necessary to stay on the absolute leading edge.  If you compare 
          the two products, Alpha today runs multiple operating systems, 
          has been shipping for two years, and it has twice the 
          performance at the same cost.  So that's kind of the short form 
          of the comparison.  All we need now are some larger customer 
          wins or some other way to reduce our costs in semis. 
   
   [I'm] in Finance. Part of my work is employee communications in 
   Finance, and we had a bunch of questions prepared for Bill Steul and 
   Vin Mullarkey in an employee communications session last week.  I'll 
   share a couple of those with you having to do with marketing and 
   customer satisfaction.  Where is our advertising strategy?  Customer 
   satisfaction appears to be declining.  Where is our marketing -- we 
   need some public image-building for both customers and employees.  Why 
   not put Bob Palmer on TV?  
   
          Well, right now I am on TV, I think.  But fundamentally around  
          some of those questions, the Bob Palmer on TV thing is very 
          unlikely to happen because I'm not that much of an egoist.  You 
          know, I don't want to be up in front.  The reality is the CEO 
          can't do anything by himself.  Just zero.  All you can actually 
          do is try to create an environment where everybody else can do 
 
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          something.  And so I'm always a little cautious about pictures 
          on the front of magazines or TV or stuff like that for me 
          personally.  It doesn't fit my personality.  On the other issue, 
          though, as far as outselling is concerned, I just got back from 
          an eight or nine-day trip in Europe. Three or four customer visits 
          a day, working on into the evening with customers.  I do enjoy that.  
          I mean, it's very tiring but you do get an idea of what customers 
          want, where you're doing well, where you're not doing so well, and 
          you occasionally help spur a sale along while you're at it.  So we 
          need to do some of that.  Around the advertising question, we ran 
          into a problem there, actually, because we didn't very cleverly set 
          that up.  We said, here is an advertising budget, some total number, 
          and we left it to the advertising department to figure out how to 
          allocate it.  That's obviously not a good strategy.  We recognized 
          that last, oh, October, November, and we changed that.  It was unfair 
          to Charlie Holleran running all the media, it was unfair to our 
          advertising people, and it was not effective anyway.  The issue 
          was I think our brand campaign, which is a very different issue. 
          The brand campaign is working quite well.  We're getting the 
          Digital brand out there and we're identifying some of the things 
          we can do.  But we want the advertising to be in the product 
          business units.  
   
          I've only time, they tell me, for one more question.
 
   [Ed Mansfield] 
 
   I got it.  (Laughter) Hi Bob, I'm with the Corporate EEO group.  
   Historically, we've been known for our strength in our diversity, and 
   during the last three years of transitions there's a widespread 
   perception that we have depleted greatly our representation of people 
   of color.  I understand all the other things that you've said, but to 
   those of us who view that as a critical asset to the company and the 
   company's future, what is senior management doing about that or intend 
   to do about it?
   
          That's a very good question.  I'm glad you asked it, because I'm 
          quite dedicated, as was my predecessor and the whole history of 
          Digital, to maintaining an environment that values all 
          employees, people of color, and all other labels that you can 
          talk about.  Quite concerned about it, and it's, as you notice, 
          one of our value statements.  We've got seven value statements 
          -- talking about respect for the individual, and in a sub-bullet 
          in that explanation of that, we talk about valuing the diversity 
          of our employees on a worldwide basis.  We have discussion at 
          the Senior Leadership Team that I personally lead that they are 
          supposed to lead with their direct reports.  We're moving that 
          throughout all of Digital to make sure that all employees feel 
          that they have opportunity that has nothing to do with these 
          various labels that society puts on us but has to do with your 
          ability to contribute, which is as it should be.  That's one of 
          the things where some people wonder, why do I take important 
          time from talking about operations and technology and strategy 
          to talk about that issue?  And I do that because I think it's 
 
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          critically important, and I think it's my responsibility to 
          maintain Digital's value system intact as we go forward making 
          these various trade-offs that we have to make in running the 
          business.  [I'm] quite dedicated to it.  
   
          As you probably know, I hold quarterly forums with people of 
          color and with senior women.  There's only me and the people 
          that are selected to be participants in that panel, so I get 
          direct feedback from representation of the various communities 
          of diversity as to how do they perceive what we're doing or not 
          doing.  And you're right, we're not doing as well as we'd like 
          to be doing.  In the environment that we're in, downsizing as we 
          have been and as we'll continue to have to be, it would be easy 
          to find an excuse not to work on this problem.  We are not going 
          to take the available opportunity.  We're going to continue to 
          focus on it, we're going to continue to ensure that we have an 
          environment where everybody feels valued in whatever his or her 
          ability to contribute is.  I'm holding each of my direct 
          reports, to give you some concrete example, for a sheet of goals 
          as to how I measure them, how I determine their performance, 
          their salaries, their bonuses.  And one of the various criteria 
          has to do with what plan do they have, each one of them, for 
          their organizations around the subject of diversity?  And you 
          know that we have a focus on that carried on in Dick Farrahar's 
          group under the direction of Ron Glover.  So that's how we're 
          doing it.  We don't want to lose sight of that and we're very 
          careful about that.  
   
          They tell me that's all the time I've got for questions.  I 
          enjoyed talking with you.  I want to thank you for coming.  I 
          want to encourage you to think positively, work together in 
          teamwork.  Remember, it's our customers that count.  Think about 
          it.  One more time, I cannot save your job.  Your manager cannot 
          save your job. Only our customers can save our jobs if we 
          delight them with our products and services so this business 
          continues to grow.  We've got to stay customer-focused. We've 
          got to work together as a team to be successful. Thank you very 
          much.  (Applause) 
 
2891.28In Due CourseTRACTR::SAPPRandom Kindness/Senseless Acts BeautyThu Feb 10 1994 12:3615
    RE:.8
    > Why not invite more field people to the DVN ?
    > Lots of questions in this particular DVN was from HQ folks. Which is 
    > fine but maybe not next time again.

    
    I participated in one of the first Employee DVNs and about half of that
    audience were from the Field. The Q2 one was from Europe and had Field
    and HQ people in it. Bob Palmer is always looking for other locations
    to hold these. I'd recommend one from Canada as this is a large
    territory.
    
    Hope this helps!
    
    Edwin 
2891.29NACAD::SHERMANSteve NETCAD::Sherman DTN 226-6992, LKG2-A/R05 pole AA2Thu Feb 10 1994 13:5515
    I expect that "top priority" is similar to "most favored nation."  At
    first glance, you would think it means just what it says.  But, upon
    closer inspection things change.  China has "most favored nation"
    status (currently).  It doesn't mean that we'd rather trade with China
    than with anyone else because there are (as I recall) literally
    hundreds of nations that have been granted "most favored nation"
    status.  Similarly, I expect that there are a fair number of "top
    priorities."
    
    Drawing another parallel, just as some people can be "more equal" than
    others, I expect some "top priorities" are more "more top" than others.
    Thus, declaring that something is "top priority" may or may not mean
    anything.
    
    Steve
2891.30please do more than read: write!BOOKS::HAMILTONAll models are false; some are useful - Dr. G. BoxFri Feb 11 1994 12:5034
One of the things that's always fascinated me about this company
are the notes files.  Yes, I know that the internet is rapidly
superseding some of them, but in terms of the "general" Digital
interest files (like this one and Marketing, for example), I think
we tend to underestimate their effect on our work lives.

There are times when I am devastated by the discussions here;  
other times I'm uplifted, still other times disgusted.  The fact
that Palmer and Gullotti have publicly acknowledged the conferences'
importance to morale is a welcome validation, for me at least,
of what I had been thinking for quite some time -- that electronic
fora are enablers for the rapid development of both positive and
negative synergies.  I think that fora like the conferences will serve 
as a model of what to expect as Internet connnectivity grows. That is, 
the rapidly increasing ability of each of us to surface ideas, outside 
the chain of command, can have both intensely positive and negative 
effects.  It's a minefield out here -- not a place for the faint of
heart.

My challenge to the SLT, or staff, is to *use* the conferences actively,
not just be passive readers.  We've got millions and millions invested
in this infrastructure.  Please get involved in the give and take; test
the logic of your ideas and directions against the crucible of employee
opinion.  I applaud Messrs. Palmer and Gullotti for their curiosity and
open mindedness -- at least they aren't taking the stance that some
of my immediate managers over the years have taken -- that the notes
files are simply employee complaint sessions.  David Stone was a good
example of an executive that was willing to *participate* in the
technical and strategic debates; he did not shirk the responsibility
of absorbing the slings and arrows found in conferences.  I am heartened that
other senior executives might also be willing to take the plunge.

Glenn                                                  
2891.31SAHQ::LUBERI have a Bobby Cox dart boardFri Feb 11 1994 13:529
    I couldn't agree more.  Just once, I'd like to see a reply from Bob
    Palmer in this conference.  In fact, it wouldn't take more than ten
    minutes of his time each day to review NEXT UNSEEN and enter a few
    replies.  That in itself would be one hell of morale booster -- knowing
    that the CEO uses the same vehicle that employees use to communicate.
    
    Maybe he's afraid that people would be inhibited in their responses if
    he started to actively participate.  Or maybe he is participating under
    a pseudonym.
2891.32participationHIBOB::KRANTZNext window please.Fri Feb 11 1994 13:5910
In order for the SLT to affect morale via this (and other) conferences,
they would have to change their communication style.  They would have
to stop the spin control and start communicating, they would need to
be willing to debate issues rather than presenting prepared statements
with lots of words and little content.

If they could do that, I'd feel a lot better about the company I work
for, because we would have leadership, not just management.

	Joe
2891.33.8% of company writesDBSALF::QUINNCrying? There's no crying in baseball!Fri Feb 11 1994 14:0019
<<< Note 2891.30 by BOOKS::HAMILTON "All models are false; some are useful - Dr. G. Box" >>>
                     -< please do more than read: write! >-
Out of curiosity a couple of days ago, I created a directory file of
all the notes and replys for the past year. Sorting this on node::name
I came up with a total of about 744 respsondents. This included of course 
people who were TFSO's or left the company last year. 

Bob Palmer said in the last DVN there were about 93,000 employees. So,
the number of people who respond in here is :

    745/93000 = .0080107   so .8% of DEC population write in here, I
can't believe the number of read only would even move the number up to 1%.

My point is how important really is this notes file. If just one senior
level manager reads this file, top management is as well represented here
as any group.

- John
2891.34.32 and .33BOOKS::HAMILTONAll models are false; some are useful - Dr. G. BoxFri Feb 11 1994 14:1120
    
    re: .32.
    
    Precisely.  That change in communication style is precisely
    what we need on the internet as well.  Read for awhile,
    acclimate to the community, learn the netiquette.  Then
    add ideas to the fray. Anyone who has been following the
    "internet advertising" discussions will realize that managers
    and executives of companies will need to jump in respond
    to comments about their products/strategies.  And to do
    it intelligently, you need to internalize the dominant
    communication style and use it.  What better place to get
    used to it than notes conferences?
    
    re: .33  
    
    Wow. Is that true?  I'm surprised, and I don't quite know
    how to respond to that datum.
    
    Glenn
2891.35De-Lurk, PLEASE!THEBAY::CHABANEDSpasticus DyslexicusFri Feb 11 1994 14:1814
    
    
    I wonder how many of us feel the SLT is "lurking" in the notesfiles and
    whether the more vocal participants fear retribution for our frank
    expressions of opinion? 
    
    Bob Palmer's style on DVNs has become more relaxed lately.  I commented
    on how stiff he looked in the beginning.  Whether this is due to
    experience of my comments here, I don't have a clue.  I know a *LOT* of
    fear would go away if someone from the SLT noted here and let their guard 
    down a bit.  Seeing  a note full of "smileys" from BP would make him seem
    less like the "talking head" we saw in his early DVNs.
    
    -Ed 
2891.36Ah ha!!!STAR::DIPIRROFri Feb 11 1994 14:248
Re: .31

>    Maybe he's afraid that people would be inhibited in their responses if
>    he started to actively participate.  Or maybe he is participating under
>    a pseudonym.

That's it! It's Nasser! I knew it! All that stuff about turkeys was just a
smoke screen!
2891.37more datumCVG::THOMPSONWho will rid me of this meddlesome priest?Fri Feb 11 1994 14:256
	Read/write ratios for conferences I've checked run from 5 to
	10 times as many readers as writers. I suspect that this conference
	runs to a lot of readers to writers. Perhaps more then 10 to 1
	but I don't have hard data.

			Alfred
2891.38don't you think they already know this?SMURF::WALTERSFri Feb 11 1994 15:148
    
    >> Wow. Is that true?  I'm surprised, and I don't quite know
    >> how to respond to that datum.
    
    Maybe that's why the SLT chose to use the more objective
    employee survey discussed in 2831?
    
    Colin
2891.39my views and feeling and related issuesSTAR::ABBASIalways give a check,it might be mateFri Feb 11 1994 15:3427
     <<< Note 2891.33 by DBSALF::QUINN "Crying? There's no crying in baseball!" >>>
>I came up with a total of about 744 respsondents. This included of course 


    i'd like to share with you my views on this subject .

    i think is that many more DECeeees are read only and not write only like 
    the 744 DECeees mentioned in the earlier note.

    i know many DECeees who just read but dont write, writing is not
    as easy for many and it dont come as natural as the flow of wind in
    spring summer day as it does come to the 744 of us DECeees who write 
    so fluently in here and in dedication about all sort of topics
    of importance to the DEC way of life.

    so, my bottom point is, even though only 744 DECeees write in here,
    many more do read, so please, KEEP  ON WRITING !!, we need it !!
    please dont stop !!

    i'd also like to take this opportunity in behave of myself and
    everyone else to thank those who write and to ask those read
    only noters not to be afraid and to jump in and hop'a'board.

    thank you,
    \nasser


2891.404 * writers = 3%DBSALF::QUINNCrying? There's no crying in baseball!Fri Feb 11 1994 15:509
   <<< Note 2891.39 by STAR::ABBASI "always give a check,it might be mate" >>>
                  -< my views and feeling and related issues >-

Yes, I agree don't stop writing. But read only, even if 4 times users are read 
only, that gives 2976, or 3% of employees use the conference. Not really a
good medium to effect change.

- John

2891.41no guerilla noting from the top, please!HDLITE::SCHNEIDERPerception is deceptionFri Feb 11 1994 15:5922
    I'm a "lurker" (hrrmph!) myself, but I'm compelled to respond to the
    notion that BP could enter "a few" notes in 10 minutes. (After also doing
    some reading, yet!)
    
    If he did, the quality of his entries (how well the ideas are thought out
    and articulated) would surely be no better than that of the average BB
    entry. I think it's a profound understatement to say that the average 
    light-to-heat ratio is poor.
    
    But worse, because of BP's position, people would latch onto his toss-off
    notes like they were stone tablets, absorb them with reading comprehension
    that's also astonishingly poor on average, and then ACT on what they 
    perceive the edicts to be. I'll admit that the direction of the corporate
    mind is pretty random already, but it's a pretty long shot that this would
    be an improvement.
    
    I haven't seen that much of David Stone's notes output, but I'm pretty
    sure the examples I have seen weren't 10-minute jobs.
    
    Chuck
    (who doesn't write much because it takes me more than 10 minutes even for
    a simple flame like this)
2891.42need to look at the indirect effect of this note fileSTAR::ABBASIalways give a check,it might be mateFri Feb 11 1994 16:1029
        .40

    \John,

>But read only, even if 4 times users are read 
>only, that gives 2976, or 3% of employees use the conference. Not really a
>good medium to effect change.    

    but \John, you are missing a subtle underlining point here, is that
    many of read only will communicate via verbal methods and in otherwise what
    they read in locations as such the cafeteria and walking in the halls 
    and over the coffee stations to other DECeees who are not read only or 
    write only what they read in this note file .

    so, even though only 2976 DECeees are read only, if you consider
    the resulting  widespread effect of this, it is much much more.

    i also heard that some DECeees tell their spouses when they get home
    something about what they read in here, and the spouses will tell
    the neighbors and the neighbors might tell their relatives
    and their relative might tell their neighbors and so on, this way the 
    word will spread out and beyond.

    so, again, to the writers, please dont let these numbers discourage
    any one you from stopping to write and to tell us what is going on in
    DEC !

    thank you
    \nasser
2891.43NACAD::SHERMANSteve NETCAD::Sherman DTN 226-6992, LKG2-A/R05 pole AA2Fri Feb 11 1994 16:5410
    I would be concerned about Lurker-Becket Syndrome.  Herewith, an 
    Empowered Individual could make an off-hand comment in notes, perhaps 
    indicating that (s)he wished this or that about A Certain Noter's 
    response.  Perhaps something like, "Who will rid me of this meddlesome 
    noter?"  This, read by an Empowered and Well-Meaning Lurker could lead 
    to a Most Unfortunate Circumstance for A Certain Noter.  
    
    Just my opinion, of course.  ;^)
    
    Steve
2891.44New Levels of Information TechnologyDYOSW8::BROWNEFri Feb 11 1994 17:1120
    RE: .30   Absolutely Right!!!  What you say has considerable merit.
                            
    	Taking full advantage of the information infrastructure will soon
    be a hallmark of the successful business organization, and hence the
    successful business executive! 
    
    	We at Digital have the opportunity to take the initiative and lead 
    the movement, or we can hunker down and attempt to recoup our position 
    by staying with the business practices and modes of operation of the 
    "nearly-expired" 20th century. For those who choose the later, a word of 
    warning:
    
    	"The problems that we face today cannot be solved at the level of
    thinking that we used when we created them!" 
    					- A quotation from Albert Einstein 
    
    	This quote is often referred to by Stephen Covey, the author of 
    the books, The Seven Habits of Highly Successful People and 
    Principled-Centered Leadership. ( I hope that in remembering the quotation
    I have not butchered it badly!)
2891.45He can't do it aloneHANNAH::SICHELAll things are connected.Fri Feb 11 1994 18:5512
I can't help feeling some of the responses in here are very hard
on Bob Palmer and the SLT.

I thought it was a good insightful talk about the state of Digital.
As far as I can tell, Bob Palmer is doing and saying a lot of the
right things.

Those who have ears will hear.

He's only one person.  He can't do it alone.

- Peter
2891.46The numbersICS::DONNELLANFri Feb 11 1994 20:0913
    re:  the magical numbers - 744 or 2976
    
    Where else can you have a "conversation" about matters of importance
    and involve this many people?
    
    That the notesfiles are the topic of conversation in so many different
    arenas in this company illustrates how seriously they are taken.  These
    represent an opportunity for people to speak their minds and that mere
    fact is more reflective of the "state of the company" than perhaps any
    other source of information.
    
    And I think Bob Palmer, Russ Gullotti, and others now recognize the
    significance of what is written here.
2891.47Information is sent to Bob Palmer24108::ROBERTFri Feb 11 1994 23:4528
    For everyone's information, I have been taking what I think are the
    best out of the marketing and digital notes files and have been sending
    them to Bob Palmer. I only put the text of the note, and send this to
    Bob. Everyone that I have sent to him, for the past year or so, he has
    responded very positively. Bob is listening and is acting on the
    information that I send to him. I recently sent him a note about a
    company, ( KODAK ) and how it turned around one particular division in
    18 months. I was shocked at the number of people that had read the note
    and the names of those who had read it. A friend of mine from the past
    got the note and forwarded it back to me with all the headers included.
    To show me where it had been and who had read the note, and the people
    they had forwarded it to.
    
    Like other people in this notes file and others have said, Bob Palmer
    "CANNOT DO IT ALONE", he needs our help. If some people up the
    structure do not want to help, then shame on them. We need some means
    of letting Bob Palmer know who these people are. I do not consider this
    ratting, I consider this a means of survival. I do not intend on
    letting anyone get in my way from helping this company survive. I am
    going to be in Maynard next week, and I am going to try and get a few
    minutes with Bob if possible.
    
    I have some more information to pass on to him in person, and an idea
    to really jump start this corporation. I hope that he will have time to
    listen to what I have to say.
    
    Dave
    
2891.48TAMRC::LAURENTHal Laurent @ COPFri Feb 11 1994 23:5912
re: .33

>    745/93000 = .0080107   so .8% of DEC population write in here, I
>can't believe the number of read only would even move the number up to 1%.

I suspect the number of read-onlys is rather high in this notes conference.
Of all the conferences on our network, this is probably the one that one's
boss is most likely to read (or at least hear about).  I personally have
a very good boss, and I'm not worried about such recriminations, but I'd
be willing to bet that that's not a universal feeling.

-Hal
2891.49Any Electronic Message system is about 99% readers/1% writersDPDMAI::WISNIEWSKIADEPT of the Virtual Space.Sat Feb 12 1994 09:3240
>Bob Palmer said in the last DVN there were about 93,000 employees. So,
>the number of people who respond in here is :

>    745/93000 = .0080107   so .8% of DEC population write in here, I
>can't believe the number of read only would even move the number up to 1%.

>My point is how important really is this notes file. If just one senior
>level manager reads this file, top management is as well represented here
>as any group.

	I run a DECUS LUG sponsored BBS in Dallas for our membership
    and the read/write ratio is about 99% readers/lurkers to 1%posters
    and that's in an open environment.  The standard BBS stats for 
    most notes/news systems is about the same.  
    
    Why do people post here?  That's a better question.
    
    I participate because I believe that some one may be listening and
    trying to decide what to do on the issues I comment about.
    
    If I'm wrong about someone listening, this notefile is only thearpy 
    for an overworked, balding sales support consultant who's tired of 
    seeing Digital throw away opportunities that make other companies 
    and individuals rich.
    
    If I'm right, some one is reading this and understanding what's 
    going on in my corner of our customer driven world...
    
    
    If it's only theapy it's still valuable to have this notesfile for
    folks.
    
    And if Management is'nt interested in my and the other 744's 
    opinion on how we're doing.... That's their loss...
    
    Other companies without this type of electronic access would poll
    and repoll to get a sense of what's going on.
    
    John Wisniewski
2891.50PASTIS::MONAHANhumanity is a trojan horseSun Feb 13 1994 07:5625
    	Other Easynet notes files have shown a ration of 10/1 between
    readers and writers. I could easily believe that up to 20% of DEC
    employees *read* this notes file. I follow several conferences in which
    I have never entered a single note.
    
    	Why would the other 80% not be reading it?
    Poor telecommunications from place of work (Moscow, Morocco, ...)
    Job never requires use of a terminal (van drivers, factory workers,...)
    Never heard of the file.
    Too busy.
    Not interested in the company - it's just a job.
    ?
    
    	Why would a reader not write?
    Shy of poor quality of English.
    Nervous of expressing an opinion against status quo.
    Not worth repeating an opinion expressed by someone else.
    Just "interested" without information or opinions to add (is this Bob?).
    Only manages to read occasionaly, by which time arguments are stale.
    ?
    
    	While not all factors work this way, many of the above factors
    would tend to concentrate the most valuable suggestions for
    improvements, and the most relevant criticisms of what is currently
    wrong in this file.
2891.52lots more out thereAKOCOA::TLAV01::SAMDECblahMon Feb 14 1994 05:1515
    
    add to .50 - why would a reader not write : 
    
    Many issues in this conference are centered around US - issues
    in other places are very different, such users may not contribute.
    
    The network's pretty slow outside I guess - I spend 30-40 mins
    of spare time to catch up with latest notes every time. Not every
    person can afford that.
    
    The cynics (and their numbers are growing very fast) who feel
    that writing anything will have no effect anyway - so why bother.
    
     But believe it - lots more people read this than write.
                           
2891.51I think .8% is very HIGHNCBOOT::PEREZTrust, but ALWAYS verify!Mon Feb 14 1994 12:4933
    re .32:
    
    >They would have to stop the spin control and start communicating, they
    >would need to be willing to debate issues rather than presenting
    >prepared statements with lots of words and little content.
    
    >If they could do that, I'd feel a lot better about the company I work
    >for, because we would have leadership, not just management.

    It appears that there is some confusion between "can" and "will", or in
    this case, "could" and "would"...  I know of nothing PREVENTING the
    above from occurring.  I am not sure of the "willingness" to MAKE it
    occur.
    
    re .33:
    
    >745/93000 = .0080107   so .8% of DEC population write in here, I can't
    >believe the number of read only would even move the number up to 1%.
    
    At least here in MPO the read/only ratio is MUCH higher than 10:1, at
    least in the software unit.  Close to everyone reads this conference,
    but other than Mr. Haag (and of course the new departed Greg Scott),
    generally noone is willing to stick their head out of the foxhole long
    enough to risk writing...
    
    But more importantly - so what?  There are supposedly valid polls that
    come out weekly which presume to predict the attitude of the entire
    country from a sample of 1000 people.  This is a WHOLE lot smaller
    percentage than .8. I also believe the cross-section of population in
    here is at least as representative  as that reflected in the polls.  I
    believe the VAST majority of people in this company can identify with
    many of the topics here, and would echo the sentiments and statements
    made in this notesfile.  
2891.5311 read / 0 writeSWAM1::BASURA_BRPoliticians Prefer Unarmed PeasantsMon Feb 14 1994 16:115
    re: .33 .37 .etc

    I asked 11 people and NONE of them ever post in this conference even
    though they are regular readers (including me).

2891.54Inconsistency... :-)BSS::CODE3::BANKSNot in SYNC -&gt; SUNKMon Feb 14 1994 16:288
Re:<<< Note 2891.53 by SWAM1::BASURA_BR "Politicians Prefer Unarmed Peasants" >>>

>    I asked 11 people and NONE of them ever post in this conference even
>    though they are regular readers (including me).

Then how did your note get in if you never post in this conference?   :-)

-  David
2891.55i agree with these staticsticsSTAR::ABBASIone of the 744Mon Feb 14 1994 16:2818
        ref: statistics of read/only vs. write DECeees.

    this only goes to show my point that there are many more who read than 
    write in here.

    i hope this will convince every one not to give up on expressing there
    thought and hopes for DEC in here, and to let us know the true and
    nothing but the true so help you so.

    speaking of talk and reading and such , i think this note file needs more 
    RUMORS!! this note file has been kind'a lacking in rumors lately, why 
    are there no more rumors in here? last year there was much more rumors 
    talk in here compared to this year i think and it was much more 
    interesting to listen to it.

    thank you,
    \nasser

2891.56ROWLET::AINSLEYLess than 150 kts. is TOO slow!Mon Feb 14 1994 16:437
    Remember, there is a copy of this conference on MORTAL that is
    exclusively read-only.  There are also many people who use various
    forms of batch-notes-extractors.  Let's also not forget all the folks
    who mail stuff from this and other conferences to various internal
    distribution lists.
    
    Bob
2891.57:-)THETOY::LANEC code. C code run. Run code, run.Mon Feb 14 1994 17:052
>....from this and other conferences to various internal distribution lists.
and newspapers.
2891.58The downside...ROWLET::AINSLEYLess than 150 kts. is TOO slow!Mon Feb 14 1994 17:249
    re: .57
    
>and newspapers.
    
    Yeah.  This conference probably has the largest readership of the rest
    of the company's conferences combined:-(
    
    Bob
    
2891.59look much but don't touchKERNEL::WEBSTERCTue Feb 15 1994 22:0413
    
    	re .53
    
    	yep,  I read-only this one, I'd be *much* too nervous
    	to enter a note.
    
    
    
    	
    	rats, blew it.
    
    	Colin
    
2891.60Will the real non-BP please stand up...54291::VUURBOOM_RRoelof Vuurboom @ APD, DTN 829 4066Thu Feb 17 1994 16:419
    I'm intrigued by a suggestion somebody made a while back that BP
    may be participating under a pseudonym (and somebody opted for
    Nasser!
    
    Suppose - just suppose - that BP had a massive multiple personality
    syndrome then all 744 of you out there may be BP in disguise...and
    then there's me :-)
    
    What a mind blower...
2891.61whoopsGVA05::SELBYThu Feb 17 1994 16:496
    re .60
    
    In normal circumstances one might say "keep taking the pills" but in
    this case perhaps you'd better stop the medication now.
    
    Mark ;-)
2891.62please stop rumorsBONNET::WLODEKNetwork pathologist.Thu Feb 17 1994 20:194
    
    Wrong, I don't write in this conference. 
    
    
2891.63DCU ?EVOAI2::FARISLife is a lethal VDFri Feb 18 1994 11:597
    >
    > to .10
    
    What is DCU and the DCU conference ?
    
    never heard about it in Paris (France...)
    
2891.64CVG::THOMPSONAn other snowy day in paradiseFri Feb 18 1994 12:049
    
    >    What is DCU and the DCU conference ?

    DCU is the Digital Employees Federal Credit Union. It's sort of like
    a cooperative bank in the US. Unless Bob Palmer is a member of the
    DCU I don't know why he'd want to track the DCU conference. But as 
    acting moderator I'd welcome him anyway.

    			Alfred