Weekly news source for the Heartstream and CPD merger

April 27, 1998 Volume 1, Number 2

TRANSITION NEWSLETTER

(1) Heartstream and HP are in heady company

(2) Learning the lingo

(3) New marketing ads are ready to go

(4) Checkout Heartstream’s updated website

(5) Heads up in the field

(1) HEARTSTREAM AND HP ARE IN HEADY COMPANY

In Peter S. Cohan’s book, The Technology Leaders, HP and Heartstream are cited as two of the country’s 20 technology leaders. Microsoft, Parametric Technology, Intel, Johnson & Johnson, and 3M are among other technology leaders identified by Cohan. Heady company indeed.

The companies were selected based on three criteria: All compete in technology-intensive industries as measured by R&D expense as a percentage of sales; outperform their peers in terms of profitability, productivity, and shareholder-value creation; and have earned a reputation for innovative products and services that customers want to buy.

The most profitable and successful technology companies are run by CEOs who understand both technology and business. (Bill Gates of Microsoft fame is cited as the prime example.) Their leaders identify and recruit the best people — people who push the edge of the technological envelope — and create a winning culture that rewards innovation.

Technology leaders also recognize that internal complacency — created by resting on their laurels — is potentially their biggest enemy; so leaders create mechanisms that undermine complacency.

Though many of the technology leaders identified by Cohan are quite large, all have figured out how not to lose the entrepreneurial spirit. “Technology leaders ruthlessly uproot the weeds of bureaucracy and internal politics before they can choke the vigor out of the organization,” says Cohan.

Cohan outlines a framework for success based on “four sources of advantage” that drive these companies’ superior performance: entrepreneurial leadership, open technology, boundaryless product development, and disciplined resource allocation.

No wonder the leadership of HP and Heartstream determined that the two companies could merge together to the advantage of both. The companies’ cultures and attitudes were more alike than different and had the same measures of success. Watch what they’ll do together.

(2) LEARNING THE LINGO

Business writer Warren Bennis said, “The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment.” While we don’t think this is the vision HP employees have when they use the term “factory,” it does beg the question:

What do “factory” and “field” mean in HP lingo?

Generally speaking, the “field” is the sales organization, while “factory” denotes manufacturing and headquarters operations. Factory and field organizations have separate Human Resources and Communications organizations and operate like separate companies to a large extent.

Sound simple? It is. Except . . .

MPG is a relatively small (5,500 employees) operating unit and acts more like one operation. That is, the distinction between factory and field isn’t that clear. Part of the Heartstream Marketing and Sales team are located in Seattle, so Seattle is both a factory and field operation.

Glad we could help.

(3) NEW MARKETING ADS ARE READY TO GO

A new ad featuring the HP-Heartstream merger will debut at the Emergency Cardiac Care Update (ECCU) May 29-31. Headlined “A trusted partner in cardiac care when life is on the line,” and featuring the Heartstream and Hewlett-Packard logos, the copy reads as follows:

“You know Hewlett-Packard for quality and reliability. You know Heartstream, creator of the ForeRunner AED with SMART Biphasic technology, for innovation. Now it’s HP Heartstream, so you can count on HP defibrillation across the entire continuum of cardiac care, even at first response. All backed by service, support and industry leadership.

Known as a trusted partner in healthcare, HP Heartstream is assisting EMT’s police officers and flight attendants, as well as trained personnel in airports, stadiums and job sites — anywhere sudden cardiac arrest can strike. Anytime life is on the line.”

A second ad is a remake of Heartstream’s first. It now reflects Heartstream’s new association with Hewlett-Packard. The headline reads, “Think your company could be better prepared for a sudden cardiac arrest?

(4) CHECKOUT HEARTSTREAM’S UPDATED WEBSITE

Visit www.heartstream.com for Heartstream’s updated, issues-oriented website. It’s a quick, effective way to learn about ForeRunner and the issues surrounding sudden cardiac arrest.

(5) HEADS UP IN THE FIELD

Donna Aldrich wants all field personnel to know that she has assembled a packet of information that will be sent to you by May 1. The packet contains a myriad of knowledge that will help you more fully understand HP and the Medical Products Group.

Sales reps: if you are contacted by an HP Field Office regarding your time cards, ask the person who calls you to call Donna Aldrich at 303-649-5804. She’ll handle all the details for you.

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FOR INTERNAL USE ONLY

The Transition Team publishes the Transition Newsletter every week for Heartstream and CPD employees. Send your comments, suggestions or news items to:

Sandy Prater, Editor

sprater@halcyon.com

425-883-4725

fax: 425-867-5539

Note: Sandy Prater is a contractor based in Redmond, Washington.

Distribution:

Maura Renaud, CPD

978-659-4753

Lynne Davison, Heartstream

206-664-5176

MANAGERS AND SUPERVISORS: PLEASE PROVIDE HARD COPIES TO EMPLOYEES WHO DO NOT HAVE ACCESS TO ELECTRONIC MAIL.

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