When I graduated from Rutgers University with my bachelor’s degree in engineering, most of my classmates joined major East Coast industrial companies. I, however, did something many of them did not consider. Drawn to the unbridled energy driving Silicon Valley and the revolutionary innovation happening in the area’s pioneering companies and research labs, I decided to move west to work for Hewlett-Packard.
The company had just been named among Fortune’s first-ever “Most Admired Companies” in the inaugural annual issue celebrating the top-performing and most-respected companies in the U.S. But more importantly, they were one of the most sought-after companies for top engineering graduates.
Having since served as a strategy consultant and CMO, in addition to teaching courses in leadership, it has become abundantly clear that great leadership is the single biggest source of competitive advantage a company has. I have observed some spectacular failures in leadership that undermined great teams and great products. Typically, this was the result of an autocratic leadership style and a belief by the leader that they had all the answers — and had nothing to learn from anyone on their teams.
Great leaders operate at the other end of the spectrum — they don’t separate themselves from their teams; they are very much a part of those teams and believe that each and every team member has a relative contribution to make and needs to be heard.
A Clear Management Philosophy
When I joined HP, its legendary founders Bill Hewlett and Dave Packard were still active within the company. Their management philosophy known as the “HP Way” was, in many ways, the blueprint that countless tech companies adopted to create a meritocratic culture and to flatten hierarchy.
It was not lip service. They lived and breathed it, even after reaching incredible success.
One key tenet of the HP Way was to spin off a new “division” once a group reached approximately 100 people. They knew that this was an inflection point where bureaucracy and politics started to raise their ugly heads. These new divisions were essentially internal startups, each with a high degree of autonomy to address computing problems for its target customer. During my time at HP, I saw many new divisions created, even joining a few myself.
Management By Wandering Around
Another key tenet was “management by wandering around.” Bill and Dave walked the talk. Engineers at heart, they were always excited about the countless innovations being developed in their many business units and divisions. They didn’t have an entourage or handlers. They simply showed up, rolled up their sleeves and, in a very collegial manner, asked questions and offered helpful input. They also worked to connect the dots with other divisions and projects at what had become a large and diversified company.
We’re All In This Together
As they grew the company and left the famous HP garage, they did away with executive dining rooms and washrooms, reserved parking spots and oversized corner offices. They had traditional cubes, just like everyone else. The only difference was, in their cubes, they hung original artwork rather than posters.
Inevitably, the computer industry went through its traditional economic cycle and hit a low point in the mid-1980s. Demand slowed down as the economy contracted. Every one of HP’s major competitors seemed to follow the same script and, while spouting platitudes that their employees were their “most valuable asset,” many began laying off their employees.
Bill and Dave took a decidedly different approach. I distinctly remember when they announced that all employees would work nine of every 10 days, and take a temporary 10% pay cut until the recession ended. However, they and the senior executive team would take a 30% pay cut. This symbolic act by the co-founders was yet another in a long series of actions that demonstrated the compassionate and inspired leadership they inherently understood.
The Makings Of A Great Leader
Once a leadership team takes an “us versus them” stance, it is very difficult to regain trust.
Research and consulting firm Great Place to Work recently surveyed 500,000 U.S. employees of 800 public and privately owned companies. It found that companies that welcome ideas from all employees have better growth prospects. Their employees are 14% more likely to stay long-term and are also 32% more likely to say they are willing to put in extra effort in their work.
This is also what author and researcher Daniel Pink describes as “employee engagement” in his book, Drive, which is a critical ingredient for innovation to occur. This holds true from young startups to large multinationals.
Throughout my career, I have consistently experienced the positive effects of giving employees a voice to drive deeper levels of engagement. Great leaders are authentic, humble, accessible, respectful and deeply engaged in the business. They go out of their way to convey a connection with their employees. These skills are increasingly important in the fast-paced digital era, where the speed of change is relentless.
CEOs must learn to trust the insights and experiences of their front-line team members. It is the only way that companies can remain agile — and prevent the CEO from becoming a bottleneck.
The four years that I spent with HP were some of the most satisfying of my career. I cannot imagine a better environment to start my tech industry journey. The culture of meritocracy, mutual respect and inspired leadership, combined with a relentless commitment to innovation excellence, has stayed with me throughout my career and influenced my own leadership style. These insights can also influence yours.