1 00:00:00,280 --> 00:00:02,960 Speaker 1: Brought to you by the reinvented two thousand twelve Camray. 2 00:00:03,160 --> 00:00:08,880 Speaker 1: It's ready. Are you get in touch with technology? With 3 00:00:09,000 --> 00:00:17,800 Speaker 1: tech Stuff from how stuff dot com. Hello everyone, and 4 00:00:17,840 --> 00:00:20,239 Speaker 1: welcome to tech stuff. My name is Chris Poulette and 5 00:00:20,280 --> 00:00:22,119 Speaker 1: I am an editor at how stuff works dot com. 6 00:00:22,560 --> 00:00:24,239 Speaker 1: Sitting across from me as a guy who likes to 7 00:00:24,280 --> 00:00:28,840 Speaker 1: embed Easter eggs and all his articles, Senior writer Jonathan Strickland, 8 00:00:29,040 --> 00:00:36,000 Speaker 1: A screaming comes across the sky. Wow, thank you. That's significant. Yes, uh, 9 00:00:36,080 --> 00:00:38,320 Speaker 1: not for what we're talking about, really, but I like 10 00:00:38,400 --> 00:00:42,080 Speaker 1: the quote. Yes. Today we are doing part one of 11 00:00:42,120 --> 00:00:45,320 Speaker 1: a multi part series on a company that has had 12 00:00:45,920 --> 00:00:50,000 Speaker 1: a massive influence on the world of technology, Hewlett Packard, 13 00:00:50,200 --> 00:00:55,960 Speaker 1: and massive influence on American business as well. I mean, really, 14 00:00:56,160 --> 00:01:00,280 Speaker 1: there without HP, there's not really a silicon valley. No. 15 00:01:00,880 --> 00:01:03,880 Speaker 1: HP was kind of the the kernel that would grow 16 00:01:03,920 --> 00:01:07,480 Speaker 1: into the glorious crop that is silicon value. And my 17 00:01:07,600 --> 00:01:12,080 Speaker 1: metaphors are terrible today, thanks, but anyway, yeah, HP is 18 00:01:12,120 --> 00:01:14,160 Speaker 1: kind of it's one of those companies that really is 19 00:01:14,160 --> 00:01:16,800 Speaker 1: the foundation for what we think of a silicon valley, 20 00:01:16,840 --> 00:01:19,880 Speaker 1: even though you might not necessarily think of HP as 21 00:01:19,880 --> 00:01:23,680 Speaker 1: an innovator, like the people who created the integrated circuit 22 00:01:23,840 --> 00:01:26,000 Speaker 1: or you know, it's not like it's Bell Labs or 23 00:01:26,319 --> 00:01:30,160 Speaker 1: Texas Instruments even, but they were very good. It's a 24 00:01:30,200 --> 00:01:35,720 Speaker 1: company that's very good at creating technologies that were priced lower, 25 00:01:35,880 --> 00:01:39,600 Speaker 1: more efficient than other companies, and so really kind of 26 00:01:39,640 --> 00:01:44,640 Speaker 1: propelled the electronics industry into the mainstream. Yeah. And in 27 00:01:44,920 --> 00:01:49,840 Speaker 1: a lot of ways, their innovations came from UM products 28 00:01:49,880 --> 00:01:53,960 Speaker 1: that used those devices, transistors and a lot of the 29 00:01:54,000 --> 00:01:58,000 Speaker 1: other uh devices that we've talked about for other companies 30 00:01:58,000 --> 00:02:02,440 Speaker 1: that have have been innovators and technology. UM. But it's 31 00:02:02,440 --> 00:02:04,480 Speaker 1: funny because this is a this is a company where 32 00:02:04,720 --> 00:02:07,680 Speaker 1: two guys met on a camping trip and ended up 33 00:02:07,680 --> 00:02:11,480 Speaker 1: building a company based on negative feedback. Yeah, that's funny. 34 00:02:11,560 --> 00:02:13,799 Speaker 1: Funny you should say it that way. Yeah, So, um, 35 00:02:13,880 --> 00:02:15,960 Speaker 1: let's let's say that. Well, let's set the scene a 36 00:02:15,960 --> 00:02:19,799 Speaker 1: little bit. So, So in nineteen twenty nine, there was 37 00:02:19,840 --> 00:02:23,919 Speaker 1: a little event where some stocks took a little dip 38 00:02:25,360 --> 00:02:30,880 Speaker 1: and plunge the world into poverty and economic chaos. Yeah, 39 00:02:30,919 --> 00:02:34,320 Speaker 1: it was. It was a depression that was so incredible. 40 00:02:34,400 --> 00:02:38,600 Speaker 1: It was great, the Great Depression. I the people who 41 00:02:38,680 --> 00:02:41,720 Speaker 1: lived through it wasn't so great for them. But yeah, 42 00:02:41,760 --> 00:02:45,360 Speaker 1: the Great Depression hits nineteen nine, and really the world 43 00:02:45,440 --> 00:02:48,840 Speaker 1: is in recovery all through the nineteen thirties. You know, 44 00:02:48,880 --> 00:02:53,280 Speaker 1: it's it's not something that the world just bounces back from. 45 00:02:53,360 --> 00:02:59,960 Speaker 1: But in the mid thirties, two Stanford University students met, 46 00:03:00,120 --> 00:03:02,560 Speaker 1: as you said, on a camping trip, but which I 47 00:03:02,560 --> 00:03:06,480 Speaker 1: think it's fascinating. Yeah, but these guys were both attending 48 00:03:06,520 --> 00:03:10,520 Speaker 1: Stanford University and the pursuing degrees in electrical engineering, and 49 00:03:10,560 --> 00:03:15,680 Speaker 1: it was William Bill, Reddington Hewlett and Dave Packard. Yeah, 50 00:03:16,160 --> 00:03:18,560 Speaker 1: keeping in mind too, we're we're talking about the late 51 00:03:18,639 --> 00:03:22,600 Speaker 1: nineteen twenties and early nineteen thirties. UM. Regular listeners of 52 00:03:22,639 --> 00:03:26,480 Speaker 1: tech stuff will remember our conversations about a C versus 53 00:03:26,520 --> 00:03:30,520 Speaker 1: d C back UM in in you know, within that 54 00:03:30,560 --> 00:03:34,440 Speaker 1: we're talking within fifty years of places getting wired. So 55 00:03:34,480 --> 00:03:37,240 Speaker 1: these guys are really kind of still on the cutting 56 00:03:37,360 --> 00:03:41,080 Speaker 1: edge of electricity. This is the point where people are 57 00:03:41,080 --> 00:03:45,600 Speaker 1: studying electrical engineering. So they're you know, they're they're getting 58 00:03:45,600 --> 00:03:49,800 Speaker 1: in on the beginnings of UM a brand new type 59 00:03:49,800 --> 00:03:52,520 Speaker 1: of industry for the for the United States and in 60 00:03:52,560 --> 00:03:55,880 Speaker 1: the world. And so they both graduate in nine with 61 00:03:55,960 --> 00:04:01,080 Speaker 1: undergraduate degrees, but Hewlett was suing his work. He was 62 00:04:01,120 --> 00:04:05,640 Speaker 1: actually pursuing a master's degree in electrical engineering, and as 63 00:04:05,680 --> 00:04:08,520 Speaker 1: part of his thesis, he began to work on a 64 00:04:08,600 --> 00:04:11,760 Speaker 1: prototype of a device called an audio oscillator. And here's 65 00:04:11,760 --> 00:04:16,600 Speaker 1: where negative feedback comes in. Yeah, because one of one 66 00:04:16,640 --> 00:04:21,560 Speaker 1: of his mentors was very interested in this work and 67 00:04:21,720 --> 00:04:24,560 Speaker 1: was kind of taking a shine. Actually he kind of 68 00:04:24,560 --> 00:04:27,880 Speaker 1: took a shine to both of these lads back in 69 00:04:27,880 --> 00:04:31,720 Speaker 1: the day. But yeah, So the oscillator, in case you're 70 00:04:31,680 --> 00:04:34,080 Speaker 1: wondering what it's supposed to do, it actually creates a 71 00:04:34,160 --> 00:04:38,560 Speaker 1: steady specific tone and you can choose various tones depending 72 00:04:38,640 --> 00:04:40,359 Speaker 1: upon the oscillator. It's not like if it's not like 73 00:04:40,400 --> 00:04:43,000 Speaker 1: if it's not a machine that only goes deep. No, 74 00:04:44,000 --> 00:04:46,920 Speaker 1: but it allows you to create a steady specific tone. 75 00:04:46,960 --> 00:04:51,000 Speaker 1: And it's really used as a measurement devices to help 76 00:04:51,520 --> 00:04:55,400 Speaker 1: try and test other devices. And for a long time 77 00:04:55,640 --> 00:04:58,960 Speaker 1: that's what he Hewlett Packard the company was known for producing. 78 00:04:59,000 --> 00:05:02,600 Speaker 1: It wasn't known for produce saying devices that the average 79 00:05:02,880 --> 00:05:06,800 Speaker 1: person would find useful. It was producing devices that industries 80 00:05:06,800 --> 00:05:10,320 Speaker 1: were using to test their own equipment so that their 81 00:05:10,440 --> 00:05:14,800 Speaker 1: equipment was you know, properly running. Yeah, HP, I would 82 00:05:14,880 --> 00:05:18,920 Speaker 1: I would argue that HP was a business to business company, 83 00:05:18,960 --> 00:05:22,920 Speaker 1: not completely, but for the most part up until the 84 00:05:23,200 --> 00:05:27,680 Speaker 1: late twentieth century. Yeah. Yeah, So this oscillator, Uh, this 85 00:05:27,720 --> 00:05:32,080 Speaker 1: prototype that that Hewlett creates ends up being a pretty 86 00:05:32,160 --> 00:05:36,359 Speaker 1: useful design, and it forms the basis of what would 87 00:05:36,360 --> 00:05:40,919 Speaker 1: become HP's first product. Now it didn't HP did not 88 00:05:41,000 --> 00:05:44,960 Speaker 1: exist as a company yet, but when Hewlett had created 89 00:05:44,960 --> 00:05:48,960 Speaker 1: this prototype, which later would become the Model two hundred A. 90 00:05:50,200 --> 00:05:52,160 Speaker 1: And by the way, the reason why it was called 91 00:05:52,160 --> 00:05:55,880 Speaker 1: the Model two A was to sort of give companies 92 00:05:55,960 --> 00:05:59,760 Speaker 1: the idea that Hewlett Packard had been around as its 93 00:05:59,800 --> 00:06:01,800 Speaker 1: own entity for a while, sort of like when you 94 00:06:01,800 --> 00:06:03,520 Speaker 1: start a new checking account and they ask you if 95 00:06:03,520 --> 00:06:05,359 Speaker 1: you want your checks to be numbered at a different 96 00:06:05,440 --> 00:06:07,160 Speaker 1: number so it looks like your accounts older than it 97 00:06:07,200 --> 00:06:09,560 Speaker 1: actually is. Or when you form a band and your 98 00:06:09,560 --> 00:06:12,960 Speaker 1: first album is called Greatest Hits. Yes, yes, that would 99 00:06:13,000 --> 00:06:15,960 Speaker 1: be the idea. Uh, don't you know, I know that 100 00:06:16,040 --> 00:06:17,920 Speaker 1: there are bands who have done that. I was gonna say, 101 00:06:17,920 --> 00:06:20,000 Speaker 1: don't steal that, but technically I guess I stole it. 102 00:06:20,040 --> 00:06:24,480 Speaker 1: So anyway, so Hewlett creates this prototype and during this 103 00:06:24,560 --> 00:06:28,640 Speaker 1: process before there's actually a company, Um, a Disney engineer 104 00:06:28,960 --> 00:06:32,440 Speaker 1: saw the prototype the two what what would become the 105 00:06:32,440 --> 00:06:36,000 Speaker 1: two hundred day and the Disney engineer was working on 106 00:06:36,200 --> 00:06:39,960 Speaker 1: a little movie called Fantasia. Yes, we've talked about that too, 107 00:06:40,000 --> 00:06:43,120 Speaker 1: about the cents around system. Yeah, it was definitely a 108 00:06:43,120 --> 00:06:48,159 Speaker 1: big player in changing the way movie theaters are designed. Really, 109 00:06:48,200 --> 00:06:51,520 Speaker 1: I mean, to to truly show Fantasia in the way 110 00:06:51,560 --> 00:06:54,120 Speaker 1: that it was meant to be shown, theaters were going 111 00:06:54,160 --> 00:06:57,640 Speaker 1: to have to spend thousands of dollars renovating and changing 112 00:06:57,640 --> 00:07:01,599 Speaker 1: out their systems. In fact, very few theaters in the 113 00:07:01,640 --> 00:07:05,040 Speaker 1: grand scheme of things actually followed through on this, but 114 00:07:05,160 --> 00:07:09,479 Speaker 1: it did help push through the whole surround sound era. Anyway, 115 00:07:10,680 --> 00:07:15,080 Speaker 1: the engineer saw potential uses for this oscillator, but not 116 00:07:15,280 --> 00:07:18,640 Speaker 1: exactly in the form factor that it was in uh 117 00:07:18,840 --> 00:07:24,280 Speaker 1: in eight, So he made some suggestions to to Hewlett 118 00:07:24,320 --> 00:07:27,440 Speaker 1: about how to change that, and so Hewlett then went 119 00:07:27,480 --> 00:07:30,800 Speaker 1: to work on that and would sell in nineteen nine 120 00:07:31,040 --> 00:07:36,560 Speaker 1: eight model two hundred B oscillators for the princely sum 121 00:07:36,720 --> 00:07:39,960 Speaker 1: of seventy one dollar and fifty cents each. There was 122 00:07:39,960 --> 00:07:41,920 Speaker 1: a lot of money back down. Yeah, that that totaled 123 00:07:42,040 --> 00:07:44,680 Speaker 1: out to be five and seventy two dollars. Well, that's 124 00:07:44,680 --> 00:07:50,280 Speaker 1: important because in nineteen nine, did you have something else? Well, 125 00:07:50,320 --> 00:07:52,360 Speaker 1: I I have a couple of bits that actually go 126 00:07:52,440 --> 00:07:56,280 Speaker 1: back before that. Oh well, then we're gonna have to backtrack. 127 00:07:56,520 --> 00:08:00,160 Speaker 1: Well just just just a tad um to nine ten 128 00:08:00,200 --> 00:08:03,760 Speaker 1: o five actually, because this is sort of relevant, but 129 00:08:03,840 --> 00:08:05,920 Speaker 1: it's not. I think this is one of the fascinating 130 00:08:05,920 --> 00:08:08,200 Speaker 1: things about HP because the thing I'm going to talk 131 00:08:08,240 --> 00:08:12,120 Speaker 1: about is sort of legendary and HP lore. It's a 132 00:08:12,160 --> 00:08:17,200 Speaker 1: house built at three sixties seven Addison Avenue in Palo Alto, California. 133 00:08:18,000 --> 00:08:21,360 Speaker 1: Um The residents there are Dr John Spencer and his 134 00:08:21,440 --> 00:08:23,920 Speaker 1: wife and two adult daughters. As a matter of fact, 135 00:08:23,920 --> 00:08:27,040 Speaker 1: he was the first mayor of Palo Alto. But um 136 00:08:27,360 --> 00:08:30,840 Speaker 1: actually divided the house in eighteen into two apartments. And uh, 137 00:08:30,960 --> 00:08:33,840 Speaker 1: if you look at the Sandborn Insurance maps in nineteen 138 00:08:33,880 --> 00:08:38,440 Speaker 1: twenty four, there's a twelve by eighteen foot garage that 139 00:08:38,480 --> 00:08:41,880 Speaker 1: appears on the property. The garage is what I would 140 00:08:41,920 --> 00:08:45,559 Speaker 1: call a shock Ye look at a picture of it. 141 00:08:45,559 --> 00:08:48,080 Speaker 1: It looks like a little bitty shack. Yes, yes, so 142 00:08:48,200 --> 00:08:53,880 Speaker 1: in ms love shack in thirty five, Dave Packard moved 143 00:08:53,920 --> 00:08:58,400 Speaker 1: to Schenectady, New York to work at ge UM see 144 00:08:58,440 --> 00:09:01,600 Speaker 1: again one of the early electrical aniers UM. And Bill 145 00:09:01,640 --> 00:09:05,199 Speaker 1: finished his graduate work at at Stanford UM and then 146 00:09:05,240 --> 00:09:07,560 Speaker 1: went to m I T returned to Palo Alto, and 147 00:09:07,559 --> 00:09:10,920 Speaker 1: then that's where they you know that, that's where they 148 00:09:11,040 --> 00:09:14,080 Speaker 1: ended up living, was in that house because they had 149 00:09:14,080 --> 00:09:18,440 Speaker 1: their first business meeting uh in seven he uh Dave 150 00:09:18,559 --> 00:09:21,920 Speaker 1: was still working at ge at the time, and uh 151 00:09:22,120 --> 00:09:24,480 Speaker 1: Bill convinced him, hey, let's make a go for this. 152 00:09:24,760 --> 00:09:27,680 Speaker 1: And Fred Turman, who was the professor at Stanford, who 153 00:09:27,720 --> 00:09:29,959 Speaker 1: had sort of taken a shine to them, was the 154 00:09:30,000 --> 00:09:34,360 Speaker 1: one who made a suggestion that maybe just maybe they 155 00:09:34,360 --> 00:09:37,400 Speaker 1: should uh use this create this device, the oscillatory you 156 00:09:37,440 --> 00:09:42,360 Speaker 1: were talking about to detect negative feedback. UM. So yeah, 157 00:09:42,400 --> 00:09:44,760 Speaker 1: in thirty nine, that's when on January one, as a 158 00:09:44,800 --> 00:09:49,040 Speaker 1: matter of fact, that's when they formalized their partnership. They 159 00:09:49,080 --> 00:09:51,960 Speaker 1: decided they were going to go and make a company. 160 00:09:52,280 --> 00:09:55,240 Speaker 1: And I love the way they decided to choose a name, 161 00:09:55,559 --> 00:09:59,000 Speaker 1: Heads or Tails. Now we're not kidding, that's really how 162 00:09:59,000 --> 00:10:01,120 Speaker 1: they decided who's aime was going to be first. It 163 00:10:01,160 --> 00:10:04,320 Speaker 1: was a coin Flip and Packard one, and yet he 164 00:10:04,400 --> 00:10:07,680 Speaker 1: chose Hewlett Packard as the name. Well I'm glad he 165 00:10:07,720 --> 00:10:10,600 Speaker 1: did because HP we know of as HP. But if 166 00:10:10,600 --> 00:10:13,280 Speaker 1: it had ended up being pH wonder which one of 167 00:10:13,320 --> 00:10:17,280 Speaker 1: them was more acidic, or that's a very base company, 168 00:10:18,520 --> 00:10:21,160 Speaker 1: or maybe people would talk about their stock and say, yeah, 169 00:10:21,160 --> 00:10:24,000 Speaker 1: it's neutral. Yeah, there's a lot of jokes that we 170 00:10:24,040 --> 00:10:28,480 Speaker 1: could make. Yeah, HP is an iconic now, yes, and 171 00:10:28,480 --> 00:10:33,680 Speaker 1: then I think they accidentally chose wisely. So they formed 172 00:10:33,679 --> 00:10:38,439 Speaker 1: this company January one, nine and they the company is 173 00:10:38,440 --> 00:10:41,720 Speaker 1: is essentially operating out of that little garage. Well that's 174 00:10:41,760 --> 00:10:44,760 Speaker 1: actually where Bill had been living, except in nine he 175 00:10:44,800 --> 00:10:49,880 Speaker 1: married Flora, his wife, and then moved out. Yeah, which 176 00:10:50,040 --> 00:10:52,040 Speaker 1: which was good because they needed a business office. Now 177 00:10:52,080 --> 00:10:55,319 Speaker 1: do you know how much money they spent to form 178 00:10:55,400 --> 00:10:57,760 Speaker 1: this company? Well, I know, I know how much money 179 00:10:57,800 --> 00:11:00,920 Speaker 1: they had. Well I know the asset, Yes, the assets 180 00:11:00,960 --> 00:11:05,959 Speaker 1: to the company that was in cash, five hundred thirty 181 00:11:06,000 --> 00:11:09,240 Speaker 1: eight dollars in cash and a used drill press, used 182 00:11:09,320 --> 00:11:12,840 Speaker 1: Craftsman drill press, by the way, interesting that somebody had 183 00:11:13,080 --> 00:11:16,480 Speaker 1: documented if you're wondering what that is in today's dollars, 184 00:11:17,240 --> 00:11:21,080 Speaker 1: eight thousand three hundred fifty four dollars, not exactly princely 185 00:11:21,200 --> 00:11:27,679 Speaker 1: Some to found what would become a multinational, multibillion dollar company. 186 00:11:27,920 --> 00:11:30,040 Speaker 1: You know, for those of you keeping score on the 187 00:11:30,720 --> 00:11:32,880 Speaker 1: Tech Stuff scorecard. That is the second time he's used 188 00:11:32,880 --> 00:11:36,040 Speaker 1: the term Princely Some in this podcast. Yeah. Well, the 189 00:11:36,600 --> 00:11:38,800 Speaker 1: five hundred and seventy two dollars that they had made 190 00:11:38,840 --> 00:11:43,240 Speaker 1: from Disney was more than what their starting capital was. 191 00:11:43,760 --> 00:11:46,199 Speaker 1: So they're doing pretty well. Yeah, they're they were profitable 192 00:11:46,360 --> 00:11:50,800 Speaker 1: early on anyway. Um so, yeah, so nine thirty nine 193 00:11:50,840 --> 00:11:53,000 Speaker 1: they formed this company. They've flipped the kay and they 194 00:11:53,040 --> 00:11:56,559 Speaker 1: figured out what they're calling themselves, and they officially start 195 00:11:56,640 --> 00:11:59,800 Speaker 1: to market the Model two hundred a oscillator, which was 196 00:12:00,040 --> 00:12:02,800 Speaker 1: based on that prototype that Hewlett had built in his 197 00:12:03,080 --> 00:12:08,360 Speaker 1: master's thesis. They had. They did pretty well pretty quickly 198 00:12:08,400 --> 00:12:11,360 Speaker 1: because they were able to move out of the garage. Yeah. Yeah, 199 00:12:11,440 --> 00:12:14,679 Speaker 1: by the by the time nine ends, their revenue is 200 00:12:14,720 --> 00:12:17,160 Speaker 1: five thousand, three d sixty nine dollars and they have 201 00:12:17,280 --> 00:12:21,760 Speaker 1: two employees. Hey, but then in nineteen forty they move 202 00:12:21,840 --> 00:12:24,840 Speaker 1: into a least building. They don't own the building, they're 203 00:12:24,840 --> 00:12:29,679 Speaker 1: still leasing space, but they're able to expand outside of 204 00:12:29,720 --> 00:12:34,920 Speaker 1: the garage, and in nineteen forty they do something spectacular. 205 00:12:35,960 --> 00:12:38,240 Speaker 1: Are you talking about the the this is the business 206 00:12:38,320 --> 00:12:44,480 Speaker 1: leadership party bonuses Christmas bonus to their employees, which that 207 00:12:44,480 --> 00:12:50,440 Speaker 1: that was the princely sum drink of five dollars. But 208 00:12:50,840 --> 00:12:55,560 Speaker 1: again five dollars wasn't that wasn't small at that point. 209 00:12:56,200 --> 00:12:58,840 Speaker 1: And they also adopted production bonuses too. They didn't have 210 00:12:58,880 --> 00:13:02,160 Speaker 1: too many employees. It wasn't it wasn't a huge investment, 211 00:13:02,200 --> 00:13:05,920 Speaker 1: but it was. It does show an early example of 212 00:13:05,960 --> 00:13:08,720 Speaker 1: what the founders thought was important when they were forming 213 00:13:08,720 --> 00:13:11,600 Speaker 1: a company. They really this was an era. It's it's 214 00:13:11,640 --> 00:13:13,880 Speaker 1: easy to forget today, right, but this was an era 215 00:13:13,960 --> 00:13:17,840 Speaker 1: where the idea of company loyalty was a big deal, 216 00:13:18,559 --> 00:13:21,319 Speaker 1: especially because you're talking about after the Great Depression, where 217 00:13:21,440 --> 00:13:24,040 Speaker 1: things were so uncertain for so long. It was very 218 00:13:24,040 --> 00:13:28,000 Speaker 1: important for companies to establish themselves as being reliable, as 219 00:13:28,000 --> 00:13:33,079 Speaker 1: being stable, and as being it was a two way street. 220 00:13:33,160 --> 00:13:36,840 Speaker 1: You know, employees would contribute their work and their efforts 221 00:13:37,640 --> 00:13:39,440 Speaker 1: for the success of the company, and the company in 222 00:13:39,600 --> 00:13:43,160 Speaker 1: turn would look after the employees and so not to 223 00:13:43,280 --> 00:13:46,319 Speaker 1: make to say that everything every company did back then 224 00:13:46,480 --> 00:13:49,240 Speaker 1: was good, but it was a different world. Than it 225 00:13:49,320 --> 00:13:53,359 Speaker 1: is today. Today, you might see someone with an engineering 226 00:13:53,400 --> 00:13:56,640 Speaker 1: degree hop around quite a bit from company to company 227 00:13:56,880 --> 00:14:01,000 Speaker 1: as they find the best the best deal for themselves personally. Well, 228 00:14:01,040 --> 00:14:04,479 Speaker 1: this was a different era where you know, you you 229 00:14:04,480 --> 00:14:06,600 Speaker 1: you got hired by a company and you tended to 230 00:14:06,640 --> 00:14:09,160 Speaker 1: stay there. Yeah, well you were kind of expected to 231 00:14:09,200 --> 00:14:12,200 Speaker 1: stay there, you know. Well, Plus, you know, thinking again 232 00:14:12,240 --> 00:14:15,000 Speaker 1: about the times economic times, this was fresh after the 233 00:14:15,000 --> 00:14:18,000 Speaker 1: Great Depression. The company was still uh it was hot 234 00:14:18,000 --> 00:14:20,120 Speaker 1: on the heels of the recovery period or in the 235 00:14:20,160 --> 00:14:23,280 Speaker 1: recovery period really, so you were kind of lucky to 236 00:14:23,400 --> 00:14:25,640 Speaker 1: have a job. So they didn't have to do this, 237 00:14:25,760 --> 00:14:29,760 Speaker 1: but they did anyway. And they also offered the company's 238 00:14:29,800 --> 00:14:33,840 Speaker 1: first charitable donation, which was again the princely sum of 239 00:14:33,920 --> 00:14:38,480 Speaker 1: five dollars four times uh so. Yeah, And and the 240 00:14:38,520 --> 00:14:40,720 Speaker 1: way that they were able to be so successful so 241 00:14:40,760 --> 00:14:46,080 Speaker 1: early on lay in Hewlett's design of these oscillators. Now, 242 00:14:46,920 --> 00:14:50,160 Speaker 1: the oscillators that were on the market already before HP 243 00:14:50,280 --> 00:14:53,720 Speaker 1: had formed were often sold for between two hundred and 244 00:14:53,760 --> 00:14:58,240 Speaker 1: six hundred dollars uh, and Hewlett was able to create 245 00:14:58,440 --> 00:15:01,920 Speaker 1: more efficient ways of of building these devices using cheaper 246 00:15:01,960 --> 00:15:05,080 Speaker 1: materials and uh and even make them more reliable. So 247 00:15:05,120 --> 00:15:08,960 Speaker 1: they weren't just less expensive to create, but they were 248 00:15:09,360 --> 00:15:11,680 Speaker 1: better oscillators than a lot of the ones that were 249 00:15:11,720 --> 00:15:15,920 Speaker 1: on the market already. His two a oscillator was sold 250 00:15:15,920 --> 00:15:19,960 Speaker 1: for fifty four dollars and forty cents, which was a 251 00:15:20,000 --> 00:15:23,480 Speaker 1: price apparently chosen because they liked the slogan fifty four 252 00:15:23,600 --> 00:15:28,120 Speaker 1: forty or fight that's true, which is you know, this 253 00:15:28,160 --> 00:15:31,280 Speaker 1: tells you something about the founders of HP, where they 254 00:15:31,360 --> 00:15:34,880 Speaker 1: settle on the price for their for their products based 255 00:15:34,960 --> 00:15:39,360 Speaker 1: upon popular slogans from the nineteenth century. That's okay with me. 256 00:15:39,440 --> 00:15:42,080 Speaker 1: I always like the quirky companies. Yeah, you know, I 257 00:15:42,120 --> 00:15:44,680 Speaker 1: gotta say that this whole oscillator thing I keep going 258 00:15:44,680 --> 00:15:49,400 Speaker 1: back and forth on. So let's analyze some waves, shall we. 259 00:15:49,400 --> 00:15:52,960 Speaker 1: Well there was an interesting wave um. Of course. One 260 00:15:53,000 --> 00:15:56,200 Speaker 1: was the year that the United States entered World War 261 00:15:56,240 --> 00:16:00,440 Speaker 1: Two after the bombing of Pearl Harbor um and as 262 00:16:00,440 --> 00:16:02,760 Speaker 1: a matter of fact, Bill decided to leave the company 263 00:16:02,840 --> 00:16:05,240 Speaker 1: for a while. He served as an army officer until 264 00:16:05,320 --> 00:16:09,640 Speaker 1: nineteen seven. So Dave took over and said, all right, well, 265 00:16:09,640 --> 00:16:11,720 Speaker 1: I'll leave the company until you come back, right, And 266 00:16:11,720 --> 00:16:14,880 Speaker 1: he did, and that in ninety one was also when 267 00:16:15,040 --> 00:16:19,000 Speaker 1: HP began the production of the three hundred A, which 268 00:16:19,080 --> 00:16:24,560 Speaker 1: was a wave analyzer sound it's was made for UM 269 00:16:24,680 --> 00:16:29,680 Speaker 1: measuring amplifiers. And then there was also a a volt 270 00:16:29,760 --> 00:16:34,120 Speaker 1: meter that Packard designed in nineteen forty one. In ninety 271 00:16:34,160 --> 00:16:36,120 Speaker 1: two that would start that would be sold as the 272 00:16:36,240 --> 00:16:41,920 Speaker 1: four hundred A. So again these one thing I would 273 00:16:42,040 --> 00:16:46,800 Speaker 1: I would uh scream out to to the the time 274 00:16:47,200 --> 00:16:51,640 Speaker 1: Vortex would be for Hewlett and Packard to name their 275 00:16:51,680 --> 00:16:55,240 Speaker 1: products something other than numbers and then a letter because 276 00:16:55,240 --> 00:16:58,160 Speaker 1: it's very confusing to me. But yes, the three d 277 00:16:58,320 --> 00:17:00,480 Speaker 1: A is a wave analyzer, the four hunt A is 278 00:17:00,520 --> 00:17:07,760 Speaker 1: a voultmeter. And then in n HP does another jump 279 00:17:08,160 --> 00:17:12,720 Speaker 1: in in the way of a company looking after its employees. Yes, 280 00:17:12,960 --> 00:17:17,200 Speaker 1: it introduces health insurance for employees. It's not the only 281 00:17:17,200 --> 00:17:21,160 Speaker 1: company to do this, but it's one of the earliest ones. Yeah. Yeah. 282 00:17:21,400 --> 00:17:23,919 Speaker 1: As a matter of fact, they started building the first 283 00:17:24,480 --> 00:17:28,680 Speaker 1: HP owned building. So we're looking now at just a 284 00:17:28,680 --> 00:17:32,640 Speaker 1: couple of years after the company got on its feet. Um, 285 00:17:32,680 --> 00:17:35,480 Speaker 1: it's able to construct its own building, and they decided 286 00:17:35,480 --> 00:17:40,480 Speaker 1: they wanted the floor pant plan to be wide open. Um. 287 00:17:40,520 --> 00:17:42,760 Speaker 1: You know, it was supposed to be versatile. That's that's 288 00:17:42,800 --> 00:17:44,879 Speaker 1: kind of a practicality part of it. But as it 289 00:17:44,880 --> 00:17:47,600 Speaker 1: turns out, it was also and also made it easier 290 00:17:47,680 --> 00:17:51,600 Speaker 1: for the company employees to share ideas and come up 291 00:17:51,640 --> 00:17:56,080 Speaker 1: with with new new kinds of concepts and new new products. Yea, 292 00:17:56,160 --> 00:17:58,600 Speaker 1: so this is a moving away from the old. Everyone 293 00:17:58,680 --> 00:18:01,920 Speaker 1: has their own office model and at this point everyone 294 00:18:02,280 --> 00:18:06,760 Speaker 1: is eight employees. Well, you know, it's still kind of tiny. 295 00:18:06,840 --> 00:18:11,240 Speaker 1: It is kind of tiny. Okay. So in three h 296 00:18:11,640 --> 00:18:14,399 Speaker 1: HP got into microwaves, and we're not talking about cooking, 297 00:18:14,400 --> 00:18:17,480 Speaker 1: we're talking about again making products for other businesses that 298 00:18:17,680 --> 00:18:22,720 Speaker 1: use microwaves. So they were getting into signal generators. So, 299 00:18:22,800 --> 00:18:24,800 Speaker 1: which is not something that you are I typically use 300 00:18:24,920 --> 00:18:27,480 Speaker 1: as part of our day to day stuff, but not 301 00:18:27,600 --> 00:18:30,000 Speaker 1: typically No once you know, once in a blue moon, 302 00:18:30,480 --> 00:18:34,000 Speaker 1: Well only when you need to generate signals. I'm pretty 303 00:18:34,000 --> 00:18:36,960 Speaker 1: good at generating signals. Yeah, we can't stop the signal. 304 00:18:38,520 --> 00:18:43,800 Speaker 1: So anyway, so in the the owner of the house, 305 00:18:44,280 --> 00:18:50,000 Speaker 1: um was who which with bead dead. Let's turn this over. 306 00:18:50,880 --> 00:18:54,600 Speaker 1: The owner of the house with the garage left Palo 307 00:18:54,640 --> 00:18:59,280 Speaker 1: Alto um and when when she did, uh, the subsequent 308 00:18:59,320 --> 00:19:01,639 Speaker 1: owners of the house continue to lease it out as 309 00:19:01,680 --> 00:19:05,280 Speaker 1: apartments and even the garage to um. But we'll come 310 00:19:05,280 --> 00:19:07,880 Speaker 1: back to this, believe it or not, because the uh, 311 00:19:07,960 --> 00:19:12,000 Speaker 1: the house in the garage will factor into the history 312 00:19:12,040 --> 00:19:16,520 Speaker 1: of Palo Alto pretty significantly. Yeah. So August eighteen, n 313 00:19:18,359 --> 00:19:23,080 Speaker 1: HP incorporates and Packard becomes the president of the company 314 00:19:23,200 --> 00:19:25,560 Speaker 1: and Hewlett is the vice president of the company. And 315 00:19:25,600 --> 00:19:29,480 Speaker 1: in that year the company generates eight hundred fifty one thousand, 316 00:19:29,560 --> 00:19:32,800 Speaker 1: two hundred seven dollars in revenue and has one hundred 317 00:19:32,880 --> 00:19:35,560 Speaker 1: eleven employees. So that's a pretty big jump. You know, 318 00:19:35,640 --> 00:19:38,200 Speaker 1: this is still it's not even a decade old yet 319 00:19:38,960 --> 00:19:43,480 Speaker 1: and uh, and it's doing quite well. Um. The the 320 00:19:43,640 --> 00:19:48,119 Speaker 1: electronics industry is blossoming right now. This is still early 321 00:19:48,200 --> 00:19:51,639 Speaker 1: days for electronics, keep in mind. Yeah, and so Hewlett 322 00:19:51,680 --> 00:19:54,240 Speaker 1: Packards really on the cutting edge when it comes to 323 00:19:54,520 --> 00:19:59,120 Speaker 1: creating electronic devices, specifically for other companies to help test 324 00:19:59,160 --> 00:20:02,080 Speaker 1: their own equipment. Yep, yep, it's funny. I have a 325 00:20:02,960 --> 00:20:05,359 Speaker 1: quote from Bill Hewlett that I got from the Hewlett 326 00:20:05,400 --> 00:20:10,399 Speaker 1: Packard UH company timeline. Um. He said, quote, we just 327 00:20:10,480 --> 00:20:12,200 Speaker 1: happened to be on the top of the rocket when 328 00:20:12,200 --> 00:20:14,520 Speaker 1: it took off. We were here with electronic products. When 329 00:20:14,520 --> 00:20:17,199 Speaker 1: electronics became a big thing, we went up with it. 330 00:20:17,600 --> 00:20:19,720 Speaker 1: We don't deserve one damn bit of credit for the 331 00:20:19,760 --> 00:20:23,240 Speaker 1: success of Hewlett Packard and quote right, um So, his 332 00:20:23,320 --> 00:20:25,639 Speaker 1: point being that it was the right place at the 333 00:20:25,720 --> 00:20:28,000 Speaker 1: right time, and anyone who had done that would have 334 00:20:28,040 --> 00:20:31,679 Speaker 1: been successful. Although I think that's definitely a lot of 335 00:20:31,720 --> 00:20:34,800 Speaker 1: modesty on his part. I think so too. Um. I 336 00:20:35,119 --> 00:20:37,800 Speaker 1: think both of these guys obviously show a lot of 337 00:20:38,359 --> 00:20:41,000 Speaker 1: um courage and willing to take a risk on a 338 00:20:41,200 --> 00:20:45,560 Speaker 1: fairly new uh market. I think they also show a 339 00:20:45,600 --> 00:20:49,560 Speaker 1: lot of creativity and leadership. Yeah. The fact that you know, 340 00:20:49,560 --> 00:20:52,960 Speaker 1: you've got to remember both of them were both of 341 00:20:52,960 --> 00:20:56,560 Speaker 1: them were engineers. Yes, so they came at this, they 342 00:20:56,600 --> 00:20:59,680 Speaker 1: created this company from the perspective of engineers. They were 343 00:20:59,720 --> 00:21:03,720 Speaker 1: not like business you know, students who let's come up 344 00:21:03,720 --> 00:21:06,240 Speaker 1: with a company, what will it be about? Right exactly. 345 00:21:06,280 --> 00:21:09,040 Speaker 1: These were guys who were problem solvers and then they 346 00:21:09,080 --> 00:21:11,919 Speaker 1: built a company around that. And not that doesn't always 347 00:21:11,920 --> 00:21:15,199 Speaker 1: work because the skill set to run a company and 348 00:21:15,200 --> 00:21:19,439 Speaker 1: the skill set to be an engineer don't always overlap completely. 349 00:21:20,000 --> 00:21:22,679 Speaker 1: Uh So, the fact that they were able to create 350 00:21:22,720 --> 00:21:25,000 Speaker 1: this and make it work. That says a lot to 351 00:21:25,040 --> 00:21:27,159 Speaker 1: their abilities. I think I think again that he was 352 00:21:27,200 --> 00:21:31,120 Speaker 1: being quite modest with that that quote. I agree, So 353 00:21:31,160 --> 00:21:33,800 Speaker 1: I just think it's funny that it shows this that 354 00:21:33,880 --> 00:21:36,960 Speaker 1: you know their pluck and their their attitude behind the 355 00:21:37,040 --> 00:21:39,919 Speaker 1: company right right, And you know what is important for 356 00:21:40,000 --> 00:21:43,720 Speaker 1: us to focus on what their philosophy, you know, how 357 00:21:43,800 --> 00:21:47,479 Speaker 1: how they felt about things, because that's gonna play an 358 00:21:47,480 --> 00:21:49,959 Speaker 1: important role when we talk about HP the company as 359 00:21:50,000 --> 00:21:52,480 Speaker 1: it is today, because there are a lot of things 360 00:21:52,480 --> 00:21:55,199 Speaker 1: that you can point to where you know, you're like, 361 00:21:55,840 --> 00:21:58,399 Speaker 1: how did the company that was this become the company 362 00:21:58,440 --> 00:22:01,800 Speaker 1: that is this? It's not always positive or negative, but 363 00:22:02,040 --> 00:22:06,720 Speaker 1: there are some significant differences. So in ninety HP produced 364 00:22:06,720 --> 00:22:13,680 Speaker 1: the four B voltmeter. So still not anything that consumers 365 00:22:13,680 --> 00:22:17,800 Speaker 1: would necessarily ever see. But um, the next thing I 366 00:22:17,840 --> 00:22:21,879 Speaker 1: have is in nineteen fifty one, do you have anything before? Um? No, 367 00:22:22,119 --> 00:22:25,880 Speaker 1: but just a general note from again from HPS. Overall 368 00:22:25,960 --> 00:22:29,159 Speaker 1: timeline that uh, Palo Alto and and the time that 369 00:22:29,240 --> 00:22:32,600 Speaker 1: they started this company was still fairly small. Of course, 370 00:22:32,640 --> 00:22:35,800 Speaker 1: you know, Stanford is a very big university at least now, 371 00:22:35,840 --> 00:22:40,919 Speaker 1: but I mean physically, um, but Palo Alto was was 372 00:22:41,000 --> 00:22:43,879 Speaker 1: kind of a small ish town. And uh, this is 373 00:22:44,119 --> 00:22:47,160 Speaker 1: right about the time in the nineteen fifties that Hewlett Packard, 374 00:22:47,359 --> 00:22:51,959 Speaker 1: the company says that the city really started to boom 375 00:22:52,000 --> 00:22:54,439 Speaker 1: in size. A lot of people started moving there, and 376 00:22:54,480 --> 00:22:59,040 Speaker 1: a lot of people became interested in these fields electronics 377 00:22:59,240 --> 00:23:04,480 Speaker 1: and well early computing technology, business machines. I would say 378 00:23:04,520 --> 00:23:07,200 Speaker 1: at this point, um, and so it became a place 379 00:23:07,280 --> 00:23:09,240 Speaker 1: to be. And I would argue again that this is 380 00:23:09,280 --> 00:23:11,679 Speaker 1: partly due to the success of Hewlett Packard, because I'm 381 00:23:11,720 --> 00:23:16,040 Speaker 1: sure people were watching. Yeah, and uh, I went in 382 00:23:16,040 --> 00:23:18,320 Speaker 1: on that how do I get to be a famous engineer? 383 00:23:18,320 --> 00:23:19,840 Speaker 1: Will you need to be in one of these companies 384 00:23:19,880 --> 00:23:23,440 Speaker 1: like Hewlett Packard, because these guys are cutting edge? Yeah, 385 00:23:23,600 --> 00:23:27,280 Speaker 1: and uh. In nineteen fifty one, they invent the company 386 00:23:27,280 --> 00:23:33,120 Speaker 1: invents the high speed frequency counter, which counts frequencies. It's 387 00:23:33,240 --> 00:23:34,960 Speaker 1: you say that like it's a bad thing. The model 388 00:23:35,080 --> 00:23:38,080 Speaker 1: is five to four A. Yeah, and actually it reduced 389 00:23:38,400 --> 00:23:41,360 Speaker 1: the amount of time needed to measure very high frequencies. 390 00:23:41,720 --> 00:23:45,960 Speaker 1: So it was again a useful device for other companies. UM. 391 00:23:46,040 --> 00:23:49,240 Speaker 1: And two, it introduced the two hundred A B and 392 00:23:49,280 --> 00:23:54,119 Speaker 1: two hundred C D audio oscillators. Now, these oscillators replaced 393 00:23:54,240 --> 00:23:58,119 Speaker 1: older oscillators in the the HP line, like the two 394 00:23:58,640 --> 00:24:00,240 Speaker 1: and the two hundred B that we talked about, the 395 00:24:00,240 --> 00:24:04,240 Speaker 1: ones that were introduced back in nineteen nine and nineteen Uh, 396 00:24:04,800 --> 00:24:08,560 Speaker 1: those have been discontinued. They were they were outdated, and 397 00:24:08,600 --> 00:24:11,240 Speaker 1: so the two and two c D were meant to 398 00:24:12,200 --> 00:24:16,600 Speaker 1: too solve the same problems as the two, but they 399 00:24:16,640 --> 00:24:21,080 Speaker 1: were both more versatile than the earlier models and more sophisticated. 400 00:24:21,680 --> 00:24:23,760 Speaker 1: So it kind of shows that HP was sticking with 401 00:24:23,840 --> 00:24:26,920 Speaker 1: its its roots. It hadn't really started to branch out 402 00:24:26,960 --> 00:24:30,920 Speaker 1: into other kinds of electronics yet. Now the next thing 403 00:24:30,960 --> 00:24:36,840 Speaker 1: I have is nineteen fifty six, are talking about the acilloscopes. Uh, 404 00:24:36,880 --> 00:24:40,440 Speaker 1: well we have them. HP produced its first the selloscopes 405 00:24:40,440 --> 00:24:43,280 Speaker 1: in But I was talking about a spinoff company that 406 00:24:43,440 --> 00:24:49,240 Speaker 1: HP created, Yes, Yes, originally called Dinak and then later 407 00:24:49,400 --> 00:24:53,119 Speaker 1: it was changed to Di mak U. Now in nineteen 408 00:24:53,160 --> 00:24:57,840 Speaker 1: fifty six, HP created the spinoff company called Dinak originally, 409 00:24:57,920 --> 00:25:02,800 Speaker 1: and it was um meant to create special purpose systems 410 00:25:02,800 --> 00:25:07,600 Speaker 1: that used building blocks that HP created, so almost like 411 00:25:07,760 --> 00:25:10,600 Speaker 1: modular systems in a way. You would think like a 412 00:25:10,640 --> 00:25:13,800 Speaker 1: company would need a particular company would need a very 413 00:25:13,840 --> 00:25:19,320 Speaker 1: specific set of hardware in order to accomplish particular tasks. Well, 414 00:25:19,440 --> 00:25:23,960 Speaker 1: the purpose of Dinak later Dimack was to build these 415 00:25:24,000 --> 00:25:28,480 Speaker 1: systems using mainly components designed by HP. So HP built 416 00:25:28,520 --> 00:25:32,280 Speaker 1: the basic building blocks in DIMEK would assemble the systems. Now, 417 00:25:32,359 --> 00:25:34,439 Speaker 1: do you know where they got how they came up 418 00:25:34,480 --> 00:25:38,640 Speaker 1: with the name Dinak, or at least the the first 419 00:25:38,680 --> 00:25:41,040 Speaker 1: two letters. I was gonna say, I'm sure it has 420 00:25:41,080 --> 00:25:44,439 Speaker 1: to go with dynamic. Well it might be, but but 421 00:25:45,119 --> 00:25:48,919 Speaker 1: really the right way they selled on d Y Okay, 422 00:25:48,920 --> 00:25:52,960 Speaker 1: So hps logo lower lower case H, lower case P. 423 00:25:54,320 --> 00:25:57,760 Speaker 1: You turn that upside down, it looks like a D 424 00:25:58,080 --> 00:26:03,639 Speaker 1: and a Y. The H turns H turns into a LI, 425 00:26:03,800 --> 00:26:05,159 Speaker 1: and the P turns into a D. So you turn 426 00:26:05,200 --> 00:26:07,960 Speaker 1: it upside down, you got d Y. That's where I'm serious. 427 00:26:08,000 --> 00:26:11,720 Speaker 1: That's really coin flips and turning logos upside down. That's 428 00:26:11,720 --> 00:26:14,320 Speaker 1: how That's how HP roll rolled back in the day. 429 00:26:15,200 --> 00:26:18,840 Speaker 1: It reminds me of that soda that seven Up created 430 00:26:18,880 --> 00:26:20,800 Speaker 1: and flipped the letters upside down so it would be 431 00:26:20,880 --> 00:26:24,199 Speaker 1: dn L. Yeah, so that's true though, that's so it 432 00:26:24,280 --> 00:26:27,080 Speaker 1: was a spinoff company. Now later on we'll and we'll 433 00:26:27,080 --> 00:26:29,560 Speaker 1: get to it. But later on the company will merge 434 00:26:29,600 --> 00:26:32,040 Speaker 1: back with HP and become a division within HP. But 435 00:26:32,240 --> 00:26:34,480 Speaker 1: I'll talk about that when it happens, but it weren't 436 00:26:34,480 --> 00:26:40,960 Speaker 1: division yet. In ninetift there was also a monumental creation 437 00:26:41,080 --> 00:26:46,119 Speaker 1: within the company h the Documentation of the HP Way, 438 00:26:46,920 --> 00:26:51,919 Speaker 1: which had UH six and then later seven UH parts 439 00:26:51,960 --> 00:26:54,280 Speaker 1: to it, and I actually have them written down, do 440 00:26:54,320 --> 00:26:57,960 Speaker 1: you yes? I do so. Number one recognize that profit 441 00:26:58,080 --> 00:27:01,000 Speaker 1: is the best measure of a company's country abution to society, 442 00:27:01,160 --> 00:27:05,680 Speaker 1: and the ultimate source of corporate strength. Number two. Continually 443 00:27:05,760 --> 00:27:09,280 Speaker 1: improve the value of the products and services offered to customers. 444 00:27:09,760 --> 00:27:13,680 Speaker 1: Number three seek new opportunities for growth, but focus efforts 445 00:27:13,680 --> 00:27:17,240 Speaker 1: on fields in which the company can make contribution. Number 446 00:27:17,240 --> 00:27:21,000 Speaker 1: four provide employment opportunities that include the chance to share 447 00:27:21,000 --> 00:27:26,080 Speaker 1: in the company's success. Number five. Maintain an organizational environment 448 00:27:26,119 --> 00:27:31,359 Speaker 1: that fosters individual motivation, initiative, and creativity. Number six. Demonstrate 449 00:27:31,400 --> 00:27:35,320 Speaker 1: good citizenship by making contributions to the community. Number seven 450 00:27:35,359 --> 00:27:39,199 Speaker 1: emphasize growth as a requirement for survival. So this was 451 00:27:39,240 --> 00:27:44,120 Speaker 1: sort of the foundation for HPS philosophy. And you can 452 00:27:44,160 --> 00:27:48,080 Speaker 1: see in that a lot of a lot of interesting points. 453 00:27:48,119 --> 00:27:53,000 Speaker 1: I mean obviously the emphasizing profitability, as say, this shows 454 00:27:53,080 --> 00:27:56,520 Speaker 1: whether a corporation is doing is good or not, which 455 00:27:56,760 --> 00:28:00,560 Speaker 1: you know, you can argue sometimes the most profitable is 456 00:28:00,600 --> 00:28:04,760 Speaker 1: not always the best thing. But there are other elements 457 00:28:04,800 --> 00:28:07,919 Speaker 1: within the HP way talking about contributing to the community 458 00:28:08,000 --> 00:28:11,720 Speaker 1: and being a good corporate citizen that sort of helps 459 00:28:11,800 --> 00:28:15,400 Speaker 1: balance out that first point so that you don't, you know, obviously, 460 00:28:15,680 --> 00:28:18,320 Speaker 1: if it would come into conflict with being a good 461 00:28:18,359 --> 00:28:20,680 Speaker 1: corporate citis and you would really have to question whether 462 00:28:20,760 --> 00:28:25,479 Speaker 1: or not that's the best course of action. Uh. And 463 00:28:25,560 --> 00:28:28,159 Speaker 1: this was a big deal the HP way, and in 464 00:28:28,200 --> 00:28:30,960 Speaker 1: fact would become the title of a of a novel 465 00:28:31,119 --> 00:28:33,880 Speaker 1: later on, or book really not a novel, it's not novel, 466 00:28:33,920 --> 00:28:37,440 Speaker 1: it's a book. Uh yeah, but becomes the title of 467 00:28:37,440 --> 00:28:39,840 Speaker 1: a book later on. It was, however, a novel idea 468 00:28:40,000 --> 00:28:44,280 Speaker 1: it was, in fact, so that was a very important 469 00:28:44,440 --> 00:28:48,680 Speaker 1: part of HP sort of corporate identity laying that out. Yes, 470 00:28:49,600 --> 00:28:52,440 Speaker 1: and so I have n seven and I want to 471 00:28:52,520 --> 00:28:55,200 Speaker 1: recommend to all of our listeners, if you have a 472 00:28:55,240 --> 00:29:01,200 Speaker 1: time machine, go back to seven and get in, you know, 473 00:29:01,320 --> 00:29:04,760 Speaker 1: maybe around November five or so, because on November six, 474 00:29:05,440 --> 00:29:10,120 Speaker 1: Hewlett Packard had its first initial public offering of stock 475 00:29:10,840 --> 00:29:15,200 Speaker 1: with and and each share was selling for the princely 476 00:29:15,320 --> 00:29:20,080 Speaker 1: sum of sixteen dollars um. But there were two reasons 477 00:29:20,080 --> 00:29:22,320 Speaker 1: behind it, what you're kind of funny. One of them 478 00:29:22,440 --> 00:29:25,640 Speaker 1: was again a HP way. They wanted to help their 479 00:29:25,840 --> 00:29:29,440 Speaker 1: UH employees to share, to have a share of the company, 480 00:29:29,480 --> 00:29:31,840 Speaker 1: to have a share of its success. And they also 481 00:29:31,880 --> 00:29:34,720 Speaker 1: wanted to plan out the estates for the founders. And well, 482 00:29:34,800 --> 00:29:36,920 Speaker 1: I can't blame them. And by the way, if you 483 00:29:37,000 --> 00:29:38,840 Speaker 1: do have that time machine and you go back to 484 00:29:38,920 --> 00:29:42,360 Speaker 1: nineteen fifty seven to buy HP stocks at sixteen dollars, 485 00:29:42,880 --> 00:29:47,120 Speaker 1: I highly recommend that you your second stop B and 486 00:29:47,200 --> 00:29:50,440 Speaker 1: you sell that stock. And we'll explain why when we 487 00:29:50,480 --> 00:29:54,080 Speaker 1: get into the later episodes of the HP story, because 488 00:29:54,960 --> 00:29:58,080 Speaker 1: well we'll get there. Well, heck, I wish that I 489 00:29:58,120 --> 00:29:59,960 Speaker 1: had the time machine so that I could go back 490 00:30:00,120 --> 00:30:02,120 Speaker 1: to when I was going should I buy Apple stock 491 00:30:02,200 --> 00:30:06,000 Speaker 1: for fifteen dollars? Yeah, I wish I could go dummy. 492 00:30:06,080 --> 00:30:08,000 Speaker 1: I wish I could go back to when I was 493 00:30:08,120 --> 00:30:11,960 Speaker 1: deciding whether or not to have the breakfast muffin or 494 00:30:12,000 --> 00:30:14,120 Speaker 1: the breakfast quests on this morning, because I made the 495 00:30:14,160 --> 00:30:20,200 Speaker 1: wrong choice. Okay, So anyway. So oh, also, um it 496 00:30:20,480 --> 00:30:24,280 Speaker 1: UH started work in the Stanford Industrial Park in Palo Alto. 497 00:30:25,240 --> 00:30:27,640 Speaker 1: Um and again they were build a new building yep, 498 00:30:27,680 --> 00:30:31,360 Speaker 1: and they were working toward making it comfortable for their 499 00:30:31,360 --> 00:30:34,960 Speaker 1: employees and more productive and run around. This time is 500 00:30:34,960 --> 00:30:37,920 Speaker 1: when Palo Alto is actually becoming what we call Silicon 501 00:30:38,040 --> 00:30:42,080 Speaker 1: Valley today. Yes, so yeah, that little tiny sleepy town 502 00:30:42,240 --> 00:30:45,840 Speaker 1: is starting to become the center of an entire industry, 503 00:30:46,280 --> 00:30:50,480 Speaker 1: one that's probably one of the most influential industries in 504 00:30:50,520 --> 00:30:54,720 Speaker 1: the twenty centuries so far anyway. But they it's also 505 00:30:54,800 --> 00:30:58,240 Speaker 1: because these guys were influential in convincing other people that 506 00:30:58,280 --> 00:31:00,640 Speaker 1: they could start their own tech come and ease and 507 00:31:00,680 --> 00:31:06,320 Speaker 1: make it big. So then in u n HP begins 508 00:31:06,360 --> 00:31:09,719 Speaker 1: to create a division structure within the company. So in 509 00:31:09,760 --> 00:31:13,600 Speaker 1: this case, HPS again trying to define its corporate structure. 510 00:31:13,920 --> 00:31:17,080 Speaker 1: And they're bigger now and they have different kinds of 511 00:31:17,120 --> 00:31:20,400 Speaker 1: stuff that they're doing and not just making measuring instruments anymore. 512 00:31:20,520 --> 00:31:24,360 Speaker 1: But then again, you know, Packard and Hewlett were both engineers, 513 00:31:24,640 --> 00:31:28,920 Speaker 1: and so they felt that a collaborative working environment was 514 00:31:29,000 --> 00:31:33,000 Speaker 1: much more important than some sort of hierarchical, top down 515 00:31:33,080 --> 00:31:38,920 Speaker 1: management system. So each division within HP was responsible for developing, producing, 516 00:31:39,000 --> 00:31:43,120 Speaker 1: and marketing its own products. So you had all these 517 00:31:43,120 --> 00:31:46,360 Speaker 1: different divisions within the company, but each one was almost 518 00:31:46,360 --> 00:31:49,960 Speaker 1: its own autonomous unit, and it was under the umbrella 519 00:31:50,040 --> 00:31:52,400 Speaker 1: of HP. But you know, the idea was that they 520 00:31:52,400 --> 00:31:58,200 Speaker 1: didn't want to interfere or muddle with one division's work 521 00:31:58,600 --> 00:32:03,320 Speaker 1: based upon you know, so arbitrary decision. Now, both Packard 522 00:32:03,320 --> 00:32:08,840 Speaker 1: and Hewlett like to walk around and visit various employees 523 00:32:08,880 --> 00:32:11,520 Speaker 1: and talk with them about their work and discuss what's 524 00:32:11,520 --> 00:32:14,880 Speaker 1: going on and kind of share ideas, which was their 525 00:32:15,000 --> 00:32:19,160 Speaker 1: walking around management style. Yeah, that that actually became its name. 526 00:32:19,960 --> 00:32:22,880 Speaker 1: But they were famous for doing that and uh, which 527 00:32:22,920 --> 00:32:25,640 Speaker 1: is probably also the genesis of the term the bosses 528 00:32:25,640 --> 00:32:29,320 Speaker 1: coming look busy. But it actually they from what I've read, 529 00:32:29,600 --> 00:32:32,080 Speaker 1: UH and in doing my research for the podcast, they 530 00:32:32,080 --> 00:32:36,960 Speaker 1: didn't really have that problem because HP inspired, um, those 531 00:32:37,040 --> 00:32:40,040 Speaker 1: early employees to work very hard because they felt their 532 00:32:40,040 --> 00:32:45,120 Speaker 1: work was valued. Yep. And in nineteen HP acquired the F. L. 533 00:32:45,280 --> 00:32:50,640 Speaker 1: Moseley Company, which produced graphic recorders, that being they would 534 00:32:50,680 --> 00:32:53,880 Speaker 1: record things graphically. Not that you know that the recordings 535 00:32:53,880 --> 00:32:57,520 Speaker 1: were graphic. Yes, I'm thinking that the description on the 536 00:32:57,640 --> 00:33:00,800 Speaker 1: HP website. Probably uh, it would be better just to 537 00:33:00,800 --> 00:33:03,840 Speaker 1: say this is where they started getting into printing. Yes, 538 00:33:04,000 --> 00:33:07,000 Speaker 1: very early printing, and this was graphic recording the very 539 00:33:07,040 --> 00:33:13,640 Speaker 1: first HP acquisition and finally for ninet for me anyway, 540 00:33:13,680 --> 00:33:17,000 Speaker 1: you might have extra stuff. But Dave, Dave Packard typed 541 00:33:17,080 --> 00:33:22,760 Speaker 1: up eleven simple rules, so this was part uh, he 542 00:33:22,840 --> 00:33:24,960 Speaker 1: was doing this as part of the company had a 543 00:33:25,360 --> 00:33:29,360 Speaker 1: management convention they would hold every year and and it 544 00:33:29,440 --> 00:33:34,040 Speaker 1: was discovered later on in his correspondence file. But these 545 00:33:34,080 --> 00:33:37,840 Speaker 1: were the eleven simple rules that Packard believed one should follow. 546 00:33:38,920 --> 00:33:42,760 Speaker 1: Number one, think first of the other fellow. Number two. 547 00:33:43,000 --> 00:33:46,880 Speaker 1: Build up the other person's sense of importance. Number three, 548 00:33:47,160 --> 00:33:54,840 Speaker 1: Respect the other man's personality rights. Number four, give sincere appreciation, appreciation, appreciation, 549 00:33:55,600 --> 00:33:59,240 Speaker 1: I'm having my little British moment again. Appreciate number five. 550 00:33:59,360 --> 00:34:03,760 Speaker 1: Eliminate the negative number six. Avoid openly trying to reform 551 00:34:03,920 --> 00:34:07,800 Speaker 1: people number seven. Try to understand the other person number eight, 552 00:34:08,000 --> 00:34:11,600 Speaker 1: check first impressions number nine, take care of the little 553 00:34:11,640 --> 00:34:15,800 Speaker 1: details number ten, develop genuine interest in people. Number eleven. 554 00:34:16,040 --> 00:34:18,480 Speaker 1: Keep it up. So this was sort of his rules 555 00:34:18,520 --> 00:34:22,360 Speaker 1: about just interacting with other people. And it's interesting again 556 00:34:22,400 --> 00:34:25,239 Speaker 1: you know, kind of an engineer's way of looking at 557 00:34:25,320 --> 00:34:29,480 Speaker 1: how do I interact with this person who is not me? Uh? 558 00:34:29,520 --> 00:34:33,160 Speaker 1: And uh. I like that. It really puts a lot 559 00:34:33,200 --> 00:34:36,719 Speaker 1: of emphasis on respecting the other person then getting to 560 00:34:36,719 --> 00:34:39,800 Speaker 1: know that other person. And also you know, yes, you 561 00:34:39,800 --> 00:34:41,640 Speaker 1: will get a first impression when you when you first 562 00:34:41,680 --> 00:34:43,920 Speaker 1: meet someone, but keep in mind that a first impression 563 00:34:44,320 --> 00:34:47,279 Speaker 1: may not be an accurate representation of who that person is. 564 00:34:48,040 --> 00:34:49,839 Speaker 1: I mean, most people when they meet me think I'm 565 00:34:49,880 --> 00:34:52,480 Speaker 1: really awesome, but you know, spend five minutes with me, 566 00:34:52,719 --> 00:34:56,040 Speaker 1: and the whole whole jerk thing comes around. It's really 567 00:34:56,360 --> 00:35:03,239 Speaker 1: not generally. Um, Okay, some first impression are accurate. But anyway, Yeah, 568 00:35:03,280 --> 00:35:06,279 Speaker 1: this was this was sort of his um his philosophy 569 00:35:06,320 --> 00:35:08,920 Speaker 1: on dealing with other people, and this became sort of 570 00:35:08,920 --> 00:35:12,920 Speaker 1: a kind of a again, a philosophy of management style 571 00:35:12,960 --> 00:35:18,879 Speaker 1: within HP. Yes, now I say that we conclude this 572 00:35:18,960 --> 00:35:22,280 Speaker 1: podcast in nineteen fifty eight and we pick up again 573 00:35:22,680 --> 00:35:26,080 Speaker 1: for part two in nineteen fifty nine. Okay, we can 574 00:35:26,080 --> 00:35:29,360 Speaker 1: do that. Excellent. So this is part one of the 575 00:35:29,560 --> 00:35:32,560 Speaker 1: HP story. We will continue with at least one more 576 00:35:32,640 --> 00:35:35,359 Speaker 1: and probably two more parts because this is a very 577 00:35:35,400 --> 00:35:37,879 Speaker 1: complex company that's done a lot of things, and it's 578 00:35:37,960 --> 00:35:42,359 Speaker 1: in it's his storied history. So let's conclude here. If 579 00:35:42,400 --> 00:35:45,440 Speaker 1: you guys have any suggestions that you would like us 580 00:35:45,480 --> 00:35:48,280 Speaker 1: to cover in future episodes, let us know on Facebook 581 00:35:48,360 --> 00:35:51,320 Speaker 1: or Twitter. Are handled. There is tech stuff h SW 582 00:35:51,360 --> 00:35:54,080 Speaker 1: and Chris and I will talk to you again really soon. 583 00:35:56,280 --> 00:35:58,840 Speaker 1: Be sure to check out our new video podcast, Stuff 584 00:35:58,880 --> 00:36:01,480 Speaker 1: from the Future. Join House staff Work Staff as we 585 00:36:01,560 --> 00:36:06,360 Speaker 1: explore the most promising and perplexing possibilities of tomorrow. The 586 00:36:06,400 --> 00:36:09,400 Speaker 1: House staff Works iPhone app has arrived. Download it today 587 00:36:09,640 --> 00:36:16,800 Speaker 1: on iTunes, brought to you by the reinvented two thousand 588 00:36:16,800 --> 00:36:18,920 Speaker 1: twelve camera. It's ready, are you