Monday, May 16, 2005
The Ultimate Entrepreneur: The Story of Ken Olsen and Digital Equipment Corporation
The Ultimate Entrepreneur: The Story of Ken Olsen and Digital Equipment Corporation
© 1988 by Glenn Rifkin and George Harrar
In 1953, Olsen said in reference to IBM "I can beat these guys at their own game."
The most important thing was to design a product and get it built. Don't ask any employee to do anything that he or his managers would not do themselves.
Olsen purposely ignored military contracts. Government money corrupted a company that wanted to be a commercial success.
Badge numbers were assigned in order of hire so a low badge number became a status symbol within DEC.
He who proposes does.
At the end of the 5th fiscal year they had 6 million in sales and $800,000 in net profits.
In 1964, DEC spent 16% on R&D.
The executive would take ownership of each product line. The manager would have to develop it, market it, nurture it, and turn a profit. Profit and loss accountability was his.
Nobody tells anybody else what to do. Each of you has the responsibility for your part of the company.
We had a very clear idea that the customer must receive value for their investment in the company.
In 10 years, DEC was a $39 million dollar company.
DEC values 1974: We want to be not only technically honest, but also make sure that the implication of what we say and the impressions we leave are correct. Success is measured by profit. With success comes the opportunity to grow, the ability to hire good people, and the satisfaction that comes from meeting your goals. Plans are proposed by managers or teams. These plans may be rejected until they fit corporate goals or until the Operations Committee feels confidence in the plans. But when they are accepted, they are the responsibility of those who proposed them. We must be honest and straight-forward with our customers and be sure that they are not only told the facts, but that they understand the facts.
We want all aspects of DEC to be clear and simple, and we want simple products, proposals, organizations, literature that is easy to read and understand.
Marketing: It is okay to say, I don't know the answer as long as you get back to the customer in a prompt manner with the answer. It is not appropriate to disparage the competition. We should be careful to stress the advantages of our way of doing computing and never the negatives of our competitors. One of the cardinal rules of a successful sales organization is to never argue with the customer. The customer is always right. Nothing leads to the perception of complacency and arrogance more than arguing with the customer, particularly over trivial technical matters.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0809245590
© 1988 by Glenn Rifkin and George Harrar
In 1953, Olsen said in reference to IBM "I can beat these guys at their own game."
The most important thing was to design a product and get it built. Don't ask any employee to do anything that he or his managers would not do themselves.
Olsen purposely ignored military contracts. Government money corrupted a company that wanted to be a commercial success.
Badge numbers were assigned in order of hire so a low badge number became a status symbol within DEC.
He who proposes does.
At the end of the 5th fiscal year they had 6 million in sales and $800,000 in net profits.
In 1964, DEC spent 16% on R&D.
The executive would take ownership of each product line. The manager would have to develop it, market it, nurture it, and turn a profit. Profit and loss accountability was his.
Nobody tells anybody else what to do. Each of you has the responsibility for your part of the company.
We had a very clear idea that the customer must receive value for their investment in the company.
In 10 years, DEC was a $39 million dollar company.
DEC values 1974: We want to be not only technically honest, but also make sure that the implication of what we say and the impressions we leave are correct. Success is measured by profit. With success comes the opportunity to grow, the ability to hire good people, and the satisfaction that comes from meeting your goals. Plans are proposed by managers or teams. These plans may be rejected until they fit corporate goals or until the Operations Committee feels confidence in the plans. But when they are accepted, they are the responsibility of those who proposed them. We must be honest and straight-forward with our customers and be sure that they are not only told the facts, but that they understand the facts.
We want all aspects of DEC to be clear and simple, and we want simple products, proposals, organizations, literature that is easy to read and understand.
Marketing: It is okay to say, I don't know the answer as long as you get back to the customer in a prompt manner with the answer. It is not appropriate to disparage the competition. We should be careful to stress the advantages of our way of doing computing and never the negatives of our competitors. One of the cardinal rules of a successful sales organization is to never argue with the customer. The customer is always right. Nothing leads to the perception of complacency and arrogance more than arguing with the customer, particularly over trivial technical matters.
Amazon: http://www.amazon.com/exec/obidos/ASIN/0809245590
