Business success models for the 21st century.

We will discuss the following success models.Cashell Vanchu remarks:ezboard came into existence
-Geshe Roach's experiences in a Wall Street diamondduring the peak of the Internet boom, a glorious but
company as recounted in the Diamond Cutter.frivolous time. 18 months ago, we realized that we
-ezboard.com, a customizable Web-basedwere on the road to bankruptcy and we needed to
communities developed in 1998 by Vanchau Nguyen,change course. We did that. In a short year, we
Founder and Chief Executive Officer.shifted our revenue model from purely advertising to
-Hewlett-Packard Company.almost entirely subscription. We also doubled our
Two of these models were started by Buddhists.number of communities created to over 1 million and
Hewlett-Packard, the seed company of Silicon Valley,tripled our number of registered users, now over 8
even though it was not started by Buddhists, hasmillion.
been, in the past, noted for its generous andEzboard has a very strict Terms of Use but relies
benevolent treatment of employees, theupon its user community to report violators and to
"Hewlett-Packard Way." All these success modelsenforce the terms, thus freeing up its time and
reinforce the concept that the seed of success andresources for more valuable community-building
must be watered with more generosity along theactivities. As Vanchau notes:
way.We do not actively go out and look for content that
Success Models: Geshe Michael Roach and theviolates our TOS. We take a more passive stance,
Diamond Cutterbut if we are notified of violations, we then go and
Geshe Michael Roach is a Princeton graduate and atake a look. Usually, we'll send a warning to the
Buddhist monk. After graduation, he spent sevenadministrator. Now and then we have to remove a
years studying the wisdom of Tibetan Buddhism. Atpost, ban a user, or on very rare occasions (in fact, I
the suggestion of his teacher, he joined a fledglingbelieve only once so far), shut down the community.
diamond business in New York to test his ideals inUltimately, the key to ezboard.com's abiding success
real life. He stayed with the business as a member ofand exponential growth in a highly competitive field is
the core management team for seventeen years.its focus on community-building as its most important
The company grew from a start-up with twovalue above everything.
owners and two employees to $100 million in salesSuccess Model: Hewlett-Packard Co.
and five hundred employees in offices around theIn the beginning of the company's history, the
world. The Diamond Cutter. The Buddha onfounders did not focus on growth per se, but
Strategies for Managing Your Business and Your Lifefocused instead on manufacturing quality products.
tells the story of how Geshe Michael Roach built theAs HP grows, Bill Hewlett and Dave Packard create a
diamond division of this company, using principlesmanagement style that forms the basis of HP's
culled from ancient Tibetan Buddhism as the drivingfamously open corporate culture and influences how
force behind his decision making.scores of later technology companies will do business.
Some of the many insights in The Diamond CutterDave practices a management technique - eventually
are as follows:dubbed "management by walking around" -, which is
-A business should be successful; it should makemarked by personal involvement, good listening skills,
money. There is no conflict between spirituality andand the recognition that "everyone in an organization
success in business. Successful business people havewants to do a good job." As managers, Bill and Dave
the resources to do more good in the world thanrun the company according to the principle later called
those people without the same resources do. Inmanagement by objective - communicating overall
addition, the very people who are attracted toobjectives clearly and giving employees the flexibility
business are the same people who have the strengthto work toward those goals in ways that they
to grasp and carry out the deeper practices of thedetermine are best for their own areas of
spirit.responsibility.
-Money should be made honestly and with absoluteHP also establishes its open door policy - open
integrity. How we make money matters more thancubicles and executive offices without doors - to
anything else does. It determines our ability to keepcreate an atmosphere of trust and mutual
making money as nobody can indefinitely run aunderstanding. The open door policy encourages
business built on dishonesty or deception. It alsoemployees to discuss problems with a manager
significantly affects our ability to enjoy the moneywithout reprisals or adverse consequences.
we make.Bill and Dave make other important management
-Nothing is good or bad in and of itself; everythingdecisions: providing catastrophic medical insurance,
has a hidden potential. This is what the Buddhists callusing first names to address employees (including
emptiness. What is bad news for you may be goodthemselves), and throwing regular employee parties
news for someone else, and vice versa. We mustand picnics.
not leap to conclusions about events, but must stop.In 1957, these guidelines became encapsulated within
to consider what potential they really have for us.a vision statement known as the 'Hewlett Packard
Even competitors can be seen as fairy godmothersVision'. As part of the vision statement, the values
challenging us to find the correct path to greaterstatement the HP Way focused on a 'belief in our
accomplishment. It is a matter of perception. Withpeople', which incorporated
the right state of mind, we can turn our problemsConfidence in and respect for our people as opposed
into opportunities.to depending upon extensive rules, procedures and
-We should look ahead to the inevitable end of ourso on; which depends upon people to do their job
days in business, and put ourselves in a positionright (individual freedom) without constant directives.
where we can honestly say our years in business had('The HP Way')
some meaning. The idea here is to anticipate ourOver the years, the HP Way has taken on the image
future, and move in a direction that will allow us toof the Apostles' Creed: a shared statement of
look back on our past with total joy and satisfaction.beliefs, but one that can be interpreted in many
Success Model: San Francisco, Calif. -- August 1, 2002different ways in a broad, catholic sense. It is almost
-- ezboard, Inc., a subscriber-based online communityas though its shared symbolic image is more
based in San Mateo and founded in 1998 by Vanchauimportant than living it as a shared reality. One senior
Nguyen, announced that it recently surpassed the 10manager called it an 'an assumed culture'. This
million registered user level. At the present, has overperhaps is its strength: as a corporate ideology, it
400,000 active communities, covering everything andallows for different interpretations of its words.
40,000 communities are being added a month!On May 3, 2002, HP and Compaq officially merged,
In a 2000 interview about the start of the websitebeginning operations as one unified company. The
Vanchau describes planting the seeds of success andnew HP serves more than one billion customers
watching them grow.across 162 countries, and is a leading global provider
How did you go about promoting your web site?of products, technologies, solutions, and services to
Mostly by planting some seeds about ezboard inconsumers and businesses. The company's offerings
existing online gathering places and then watchingspan IT infrastructure, personal computing and
them grow by word-of-mouth. Most of our newaccess devices, global services and imaging and
users are referred by an existing user, which is theprinting.
best way to attract loyal customers and a greatIn this age where large corporations are coming
testimonial about the value and fun offered byunder increasing moral scrutiny, HP has come out
ezboard.relatively clean. The Packard Foundation is the world'
His vision, even in the beginning, was of thelargest corporate foundation with grant awards
expotential growth promised by the Korwa cycle.totalled approximately $230 million in 2002. Carly
In a 2001 interview with Judy Vorfield of Web BuilderFiorina, its CEO, is respected in the world of business,
ezine(, Vanchu noted thatit is respected abroad, and it has no antitrust suits
In the recession, had some rough times, but itsagainst it. As Ms. Fiorina remarked, "Our bodyguards
management was able to reverse the trend andcarry no Uzis.
continuing growing. In a 2002 interview with Jim