From about 1977 to just before Carly Fiorina, I was fortunate to consult with Hewlett-Packard, across divisions and around the world. It was at some points during that time, under CEO Lou Platt, the finest managed company I had seen. There was wall-to-wall talent and great intellect.
How could this outstanding company, operating under the "HP Way" and with demonstrable respect for ethics and integrity, fall upon such hard times? Under Hewlett and Packard (always affectionately called Dave and Bill) there was zero tolerance for ethical lapse.
I believe that HP lost sight of its basic values. Carly began to "star" in ads for the company, appearing in one spot in front of the founders´ legendary garage, where it all started. It was unheard of for an HP executive to take center stage in front of the company and its customers. There was the hubris of the Compaq purchase, and Carly´s alienation of board members and refusal to listen or compromise. (If you´d like to hear her side, her inevitable book will be out shortly.)
The chair of the board, Patricia Dunn, instrumental in Carly´s ouster, became outraged at what were actually insignificant board leaks-though unethical in themselves-and ordered or condoned unethical (and probably illegal) measures to find the transgressor.
It´s not an accident that HP´s "chief ethics officer" was aware of the practices, and has had to resign, or that the general counsel, who has also resigned, knew of the intent and even recommended the investigation firm that engaged in the "pretexting."
At Merck, a company once named "America´s Most Admired" and unprecedented five years in a row by the Fortune Magazine poll, which has also fallen on tough ethical times, George Merck once said, "Do good and good will follow." When CEO Roy Vagelos retired and Ray Gilmarten replaced him, business aggression overcame ethical guidance.
At neither HP nor Merck were ethical standards, once high, able to persevere in the face of hubris, quarterly results, and woeful leadership. Ethics don´t reassert themselves unilaterally. Their permanence relies upon a great many people reinforcing them daily.
You don´t take a risk by enforcing ethics, because if the company is uninterested or your leadership threatens retribution or your colleagues don´t support you, why would you want to work there anyway?
Alan Weiss, Ph.D. is the author of 25 books, including Million Dollar Consulting (McGraw-Hill), which appear in 7 languages. He runs the unique Million Dollar ConsultingTM Colleges three times a year. You can reach him at http://www.summitconsulting.com, where you can also download hundreds of free articles. He was recently inducted into the Professional Speakers Hall of Fame. ®
© Alan Weiss 2006 All rights reserved.
