Part I — The story
The story
David Packard, with Bill Hewlett, founded Hewlett-Packard in a Palo Alto garage in 1939 — the origin story that gave Silicon Valley its founding myth — and built it into a model technology company admired as much for how it was run as for what it made. HP began with electronic test instruments and grew into computing, defining the Valley's engineering culture along the way.
Packard's lasting contribution was the 'HP Way': a management philosophy built on trusting and respecting employees, decentralised decision-making, management by objectives, and a belief that profit was a result of doing good work, not the sole goal. It was a humane, high-trust culture that influenced generations of technology companies.
Packard, who also served as US Deputy Secretary of Defense, wrote The HP Way to capture his approach. He is a foundational figure in both Silicon Valley and modern management — proof that culture and trust can be a company's most durable asset.
Part II — The playbook
The playbook
Trust and respect people
The HP Way assumed employees were capable and motivated, and treated them so.
Decentralise decisions
Packard pushed authority down to those closest to the work.
Make profit a result, not the goal
He believed good work produced profit, not the reverse.
In their words
Profit is not the proper end of management — it makes the other ends possible.
More companies die of indigestion than starvation.
You should never take on a job for money alone.
What to read next
- The HP Way — David Packard
Why this matters
The thinking behind these decisions connects to models you can study directly:
Frequently asked questions
What is the 'HP Way'?
David Packard's management philosophy of trusting and respecting employees, decentralised decisions, management by objectives, and treating profit as a result of good work rather than the sole goal.
Why is Packard historically important?
He co-founded Hewlett-Packard — Silicon Valley's founding company — and shaped both the Valley's engineering culture and modern high-trust management.