The hand that shakes Digital up

Article Abstract:

DEC founder and Pres Kenneth H. Olsen weathers a storm of controversy as his management style and judgement are questioned by top executives. Olsen, who founded the company in 1957, has often encouraged competing activities and priorities within DEC in order create innovation. This strategy has worked for years, but in the face of $400 million of losses in less than one year, DEC's top managers question Olsen's judgement. By Jul 1, 1992, a total of 25,000 jobs will have been cut due to lagging profitability. Additionally, several executives have left the company in frustration. William D. Strecker, former vice president of engineering lost his job over a bitter disagreement with Olsen that resulted in the signing of a cooperative agreement between DEC and Microsoft Corp. Strecker was reappointed in another capacity. While Olsen maintains that he has a direct and simple management philosophy, critics charge that DEC's multi-layered decision-making process is inefficient. Despite the criticism, Olsen has no intention of resigning.

Officials and employees, Management Style, Executive, Strategic Planning, Competition, Losses, Resignation, Work Force Reduction

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Digital Equipment expected to take new view on debt

Article Abstract:

Digital Equipment Corp (DEC) files for a shelf registration with the Securities and Exchange Commission (SEC) to offer $1 billion in debt securities. Industry observers note that this marks an apparent shift in policy for DEC. Kenneth H. Olsen, who founded DEC and led the company for 35 years, avoided debt. Now, Olsen has resigned, and he will turn leadership of the company to Robert B. Palmer on Oct 1, 1992. A spokesman for DEC says the company's shelf registration has nothing to do with Olsen's departure. The spokesman points out that interest rates are low, and it is therefore a good time for the company to borrow. DEC will use the money from the sale of its securities for restructuring, capital expenditures and working capital.

Appointments, resignations and dismissals, Securities, Bonds (Securities), Computer Industry, Financing, Bonds, Public Offerings, Palmer, Robert B.

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