HP Way Part 2

 Let's now review  some of the flip sides of the HP Way

1. Place HP sites  in small towns with a small engineering school.  This provides a steady flow of fresh out-of-school engineering graduates  who  will stay put for a while, as HP is a pretty much the only employer in town and there is nowhere else to go. 

When the business starts to decline, the engineers in a small town  will need to relocate. It is always painful and sometimes not even possible for many people. This will generate the 'culture of fear ' as the people will become afraid to be laid off. 

2. Pay slightly less than the average pay but provide more job security. 

The argument is lost with the loss of the job security. Then, the people are still paid less `and have no job security. Gradually, the pay as the motivator of a good performance, will disappear as a factor.

3. All the business/engineering decisions at HP are done   by consensus.

This eventually leads to wrong technical decisions, and wrong product lines. The consensus can be reached in an ugly, mediocre product that is   the least disliked by all the parties involved.

4. HP culture, compared to other US companies, is  based on teamwork rather than on the solo work of individuals. 

This eventually leads to the lack of technical leadership. As the result, the brightest minds (such as Steve Wozniak) get in trouble and eventually leave the company.