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# Lessons from David Packard
- URL: https://www.antoinebuteau.com/lessons-from-david-packard/
- Published: 2026-06-30T17:15:12.000Z
- Updated: 2026-09-05T03:04:44.000Z
- Description: David Packard co-founded Hewlett-Packard and helped define early Silicon Valley culture through The HP Way. His framework made employee autonomy, decentralized decisions, and corporate responsibility central to building organizations, leadership, and service to society.
- Author: Antoine Buteau
- Tags: Profile, Tech Entrepreneurs & Founders Profiles

David Packard co-founded Hewlett-Packard in a one-car garage in 1939, building it into an engineering giant and defining the early culture of Silicon Valley. He is best known for creating "The HP Way," a management framework focused on employee autonomy, decentralized decision-making, and corporate responsibility. This collection compiles his specific advice on building organizations, managing people, and contributing to society.

![Visual summary of operating lessons from David Packard.](https://www.antoinebuteau.com/content/images/2026/06/lessons-from-david-packard-profile-infographic.webp)

## Part 1: The Purpose of a Company

1. **On organizational existence:** "I want to discuss why a company exists in the first place. In other words, why are we here?" — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
2. **On profit versus purpose:** "I think many people assume, wrongly, that a company exists simply to make money." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
3. **On collective capability:** "A group of people get together and exist as an institution that we call a company so they are able to accomplish something collectively that they could not accomplish separately." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
4. **On societal contribution:** "They are able to do something worthwhile, meaning they make a contribution to society, a phrase which sounds trite but is fundamental." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
5. **On the underlying drive:** "While this is an important result of a company's existence, we have to go deeper and find the real reasons for our being. The underlying drive comes largely from a desire to do something." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
6. **On betrayal of purpose:** "A company that focuses solely on profits ultimately betrays both itself and society." — [*Source: \[Forbes Interview Archive*](https://www.forbes.com/?ref=antoinebuteau.com)*\]*
7. **On building an institution:** "Set out to build a company and make a contribution, avoiding the temptation to build an empire and a fortune." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
8. **On long-term perspective:** "The margin we have is the source of our capital for growth, but it is never the sole objective of our operations." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
9. **On maintaining character:** "Profitability determines whether we can continue to grow, keep an efficient organization, and maintain our company's character as we scale." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
10. **On human dignity in business:** "A company has a responsibility beyond making a profit for stockholders. It has a responsibility to recognize the dignity of its employees as human beings." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*

## Part 2: Management by Objectives and Trust

1. **On decentralization:** "If you provide people with the right goals, resources, and conditions, you can turn them loose and trust them to achieve those goals in a common direction." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
2. **On trusting employees:** "It has always been important to Bill and me to create an environment in which people have a chance to be their best." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
3. **On objective setting:** "Management by objective relies on giving individuals a clear understanding of the company's goals and the autonomy to figure out the details of execution." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
4. **On top-down control:** "Strict top-down control stifles the creativity and expertise that frontline workers bring to their daily tasks." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*
5. **On the manager's role:** "The job of a manager is to support his or her staff, and that begins by being among them." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
6. **On management by walking around:** "True insight into organizational health requires leaving the office, observing operations, and engaging with employees directly without relying solely on formal reports." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
7. **On humane management:** "The best business decisions are the most humane decisions. All other talents being even, the greatest managers are also the most human managers." — [*Source: \[Forbes Interview Archive*](https://www.forbes.com/?ref=antoinebuteau.com)*\]*
8. **On employee motivation:** "When people are treated with trust and respect, they naturally become more motivated, innovative, and deeply loyal to the organization." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
9. **On open communication:** "An environment where any employee can raise an issue without fear of retaliation is essential for identifying problems before they threaten the business." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*

## Part 3: Innovation and Engineering

1. **On technical originality:** "Make a technical contribution. Innovate, don't emulate." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
2. **On practical utility:** "To be useful an invention must fill a real need and serve as an economical, efficient solution to that need." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
3. **On taking risks:** "The greatest success goes to the person who is not afraid to fail in front of even the largest audience." — [*Source: \[Forbes Interview Archive*](https://www.forbes.com/?ref=antoinebuteau.com)*\]*
4. **On the six-to-one rule:** "Engineering projects should target an expected lifetime profit that is at least six times the initial development cost." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
5. **On the true value of research:** "The most fundamentally innovative products often exceed standard return metrics by the widest margins because they define entirely new markets." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*
6. **On rewarding defiance:** "Sometimes you must reward extraordinary contempt and defiance beyond the normal call of engineering duty when an employee pursues a technically brilliant idea despite management skepticism." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
7. **On product uniqueness:** "A company's success is rooted in designing and manufacturing products that are genuinely unique and provide superior value that customers cannot source elsewhere." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
8. **On process innovation:** "Companies must avoid being a one-trick pony. Sustained success requires looking beyond product innovation toward process improvements and new business models." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
9. **On engineering freedom:** "Bureaucracy is the enemy of innovation. You must minimize rigid structures to let engineers experiment freely." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*

## Part 4: Dealing with People and Leadership

1. **On prioritization in relationships:** "Think first of the other person." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
2. **On building confidence:** "Build up the other person's sense of importance." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
3. **On individual differences:** "Respect the other person's personality rights." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
4. **On recognizing good work:** "Give sincere appreciations." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
5. **On the danger of criticism:** "Eliminate the negative, as constant criticism rarely changes behavior and almost always causes deep resentment." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
6. **On accepting people:** "Avoid openly trying to reform people." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
7. **On empathy:** "Try to understand the other person." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
8. **On snap judgments:** "Check first impressions, because early evaluations of a person's character or capability are often incomplete or wrong." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
9. **On resolving dislike:** "Follow Abraham Lincoln’s advice. I do not like that man, therefore, I shall get to know him better." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*

## Part 5: Customers and Markets

1. **On the scope of marketing:** "Marketing is too important to be left to the marketing department." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
2. **On selling solutions:** "We are never selling hardware. We are selling solutions to customer problems." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
3. **On defining profit:** "Profit is simply a measure of the contribution we have made to our customers." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
4. **On cross-functional customer focus:** "Every single employee in the company must understand how their work impacts the end customer's experience." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
5. **On identifying real needs:** "Instead of pushing what you want to build, spend time observing customers to see the problems they do not even know they have." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*
6. **On maintaining quality:** "Growth should never come at the expense of product reliability, because a broken promise to a customer is harder to repair than a broken machine." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
7. **On honest dealings:** "Uncompromising integrity and open dealings are the only sustainable ways to earn the lasting trust of customers." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
8. **On value over price:** "If you deliver a genuinely superior and unique solution, customers will recognize the value and be willing to pay for it." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
9. **On staying close to the market:** "Managers cannot understand market shifts from inside a boardroom. They must go out and interact directly with the people using their products." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
10. **On customer service:** "The relationship with a customer begins, rather than ends, when the sale is made." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*

## Part 6: Business Growth and Financial Discipline

1. **On overexpansion:** "More businesses die from indigestion than starvation. I have observed the truth of that advice many times since then." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
2. **On self-funded growth:** "Sustainable growth should be self-funded rather than fueled by taking on excessive amounts of debt." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
3. **On managing scale:** "Taking on more opportunities than a company can effectively manage is a faster route to failure than lacking opportunities altogether." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
4. **On steady pacing:** "We must be willing to walk away from rapid, short-term expansion if it threatens our long-term stability and financial independence." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
5. **On investing in the future:** "Prioritize reinvesting profits into people, research, and development to ensure value creation decades into the future." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*
6. **On market share versus profitability:** "Seeking market share just for the sake of size is a mistake. Volume without healthy margins ultimately weakens the enterprise." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
7. **On structural efficiency:** "As an organization scales, you must fight ruthlessly to prevent administrative overhead from outpacing the productive output of the business." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*
8. **On economic downturns:** "A conservatively financed balance sheet is what allows a company to keep its workforce intact and continue innovating during inevitable economic recessions." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
9. **On capital allocation:** "The profit margin we generate is simply the internal cost of our future growth." — [*Source: \[1960 Speech to Managers*](https://www.hpalumni.org/Packard%5F1960.htm?ref=antoinebuteau.com)*\]*

## Part 7: Corporate Social Responsibility and Philanthropy

1. **On community obligation:** "A company has a responsibility to the well-being of the community at large, separate from its obligations to immediate stakeholders." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
2. **On shared responsibility:** "The betterment of society is a job that cannot be left to a few. It is a responsibility to be shared by all." — [*Source: \[David and Lucile Packard Foundation*](https://www.packard.org/?ref=antoinebuteau.com)*\]*
3. **On the role of philanthropy:** "Private philanthropy must serve as a powerful and necessary complement to government, civil society, and the private sector." — [*Source: \[David and Lucile Packard Foundation*](https://www.packard.org/?ref=antoinebuteau.com)*\]*
4. **On civic action:** "Business leaders have a moral obligation to engage in public service and civic action to improve the environments in which they operate." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
5. **On inclusive progress:** "A healthy society requires that everyone has the opportunity to flourish, which means investing heavily in education and community support." — [*Source: \[David and Lucile Packard Foundation*](https://www.packard.org/?ref=antoinebuteau.com)*\]*
6. **On the limits of government:** "Corporations and foundations must step in to solve local problems because centralized government cannot efficiently address every community need." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*
7. **On environmental stewardship:** "Long-term prosperity is impossible if we deplete the natural resources and environmental health of the communities we live in." — [*Source: \[David and Lucile Packard Foundation*](https://www.packard.org/?ref=antoinebuteau.com)*\]*
8. **On investing in youth:** "The most effective philanthropic investments a society can make are those focused on the well-being and education of children and families." — [*Source: \[David and Lucile Packard Foundation*](https://www.packard.org/?ref=antoinebuteau.com)*\]*
9. **On ethical operations:** "The health of a business is inextricably linked to the health and trust of the society in which it operates. You cannot have one without the other." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*

## Part 8: Personal Character and Rules for Life

1. **On small gestures:** "Take care of little details. A tone of voice, a smile, or remembering names often matters more than grand statements." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
2. **On genuine interest:** "Develop genuine interest in people as the foundational bedrock for any successful relationship." — [*Source: \[11 Simple Rules*](https://www.hpmemoryproject.org/timeline/david%5Fpackard/dp%5Frules.htm?ref=antoinebuteau.com)*\]*
3. **On maintaining integrity:** "Uncompromising personal integrity is the one asset that, once lost, can almost never be bought back." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
4. **On humility:** "The most effective leaders do not need to be the loudest voice in the room. They let the results of their teams speak for them." — [*Source: \[Stanford Engineering Legacy*](https://engineering.stanford.edu/?ref=antoinebuteau.com)*\]*
5. **On hard work:** "There is absolutely no substitute for showing up early, staying late, and sweating the details alongside your team." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
6. **On continuous learning:** "Never assume you have all the answers. The moment you stop asking questions is the moment your competence begins to decline." — [*Source: \[Forbes Interview Archive*](https://www.forbes.com/?ref=antoinebuteau.com)*\]*
7. **On facing failure:** "When you make a mistake, admit it openly, learn the lesson quickly, and move forward without shifting the blame to others." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
8. **On fairness:** "Treat the person sweeping the floor with the exact same level of respect and attention as the person sitting in the executive suite." — [*Source: \[HP Corporate Archives*](https://www.hp.com/?ref=antoinebuteau.com)*\]*
9. **On simplicity:** "Complex management theories are often useless in practice. Rely instead on simple, honest communication and common sense." — [*Source: \[The HP Way*](https://www.goodreads.com/book/show/1041924.The%5FHP%5FWay?ref=antoinebuteau.com)*\]*
10. **On leaving a legacy:** "At the end of your life, you will not be measured by the wealth you accumulated, but by the institutions you built and the people you helped succeed." — [*Source: \[David and Lucile Packard Foundation*](https://www.packard.org/?ref=antoinebuteau.com)*\]*