Rules of the Garage: Reigniting Innovation at HP Innovation Story: How Carly Fiorina’s Manifesto Modernized the HP Way

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Silicon Valley Versus Route 128

In the late 1930s, HP’s founders built a culture rooted in creativity and collaboration. Decades later, facing new challenges, Carly Fiorina saw the need to rekindle that spirit. Her “Rules of the Garage” offered simple principles to cut through bureaucracy and inspire meaningful, people-centered innovation.

In the late 1930s, Bill Hewlett and David Packard embarked on a journey that would become the cornerstone of Silicon Valley’s innovation culture. Working out of a modest garage in Palo Alto, California, they founded Hewlett-Packard (HP), fostering a unique work ethos that emphasized creativity, collaboration, and a relentless pursuit of excellence. This philosophy, known as “The HP Way,” became a guiding light for the company’s growth and success.

Fast forward to 1999, when Carly Fiorina took the helm as HP’s CEO. Recognizing the need to reinvigorate the company’s pioneering spirit in a rapidly evolving tech landscape, Fiorina introduced the “Rules of the Garage.” This set of eleven principles was designed to encapsulate and modernize the original HP ethos, serving as a manifesto for innovation and a call to action for employees to embrace the dynamic challenges of the new millennium.

The “Rules of the Garage”

1. Believe you can change the world.
2. Work quickly, keep the tools unlocked, work whenever.
3. Know when to work alone and when to work together.
4. Share – tools, ideas. Trust your colleagues.
5. No politics. No bureaucracy. (These are ridiculous in a garage.)
6. The customer defines a job well done.
7. Radical ideas are not bad ideas.
8. Invent different ways of working.
9. Make a contribution every day. If it doesn’t contribute, it doesn’t leave the garage.
10. Believe that together we can do anything.
11. Invent.

These principles were more than just slogans; they were a strategic initiative to dismantle bureaucratic inertia and reignite the innovative fervor that had originally propelled HP to greatness. By advocating for a culture where radical ideas were welcomed and collaboration was paramount, Fiorina aimed to position HP at the forefront of technological advancement once again.

Innovation Through Storytelling

The “Rules of the Garage” also served as a narrative framework, illustrating how a return to foundational values could drive transformation. This approach aligns with insights from McKinsey & Company, which highlight the power of storytelling in corporate innovation. By framing change as a continuation of the company’s storied past, Fiorina effectively connected employees to a shared vision, fostering a collective commitment to innovation.

In essence, the “Rules of the Garage” were a clarion call to HP’s workforce to embody the pioneering spirit of Hewlett and Packard. By embracing these principles, employees were encouraged to break free from conventional constraints, collaborate openly, and contribute meaningfully to the company’s mission of technological excellence. This cultural reinvigoration was pivotal in reestablishing HP’s identity as a leader in innovation.

The Link to Conversational Leadership

At its core, the success of the “Rules of the Garage” was deeply tied to Conversational Leadership—the idea that leadership is not about command and control but about engaging in meaningful dialogue that inspires action. By articulating a set of shared beliefs and encouraging open collaboration, Fiorina fostered an environment where employees felt empowered to innovate. This mirrors the principles of Conversational Leadership, where authentic engagement, co-creation, and trust drive meaningful change.

Fiorina’s approach demonstrated that innovation is not just about technology—it’s about people. By shaping the right conversations, organizations can tap into collective intelligence, foster creativity, and sustain a culture of breakthrough thinking. The “Rules of the Garage” remain a powerful example of how leadership through conversation can redefine an organization’s future.

The “Rules of the Garage” remind us that innovation thrives in environments where ideas flow freely, collaboration is genuine, and bureaucracy is minimal. To create lasting impact, focus on meaningful work, trust your team, and stay open to new ways of thinking. Small shifts can spark big change.

Resources

• Wikipedia: Wikipedia: Rules of the garage
• Article: HP Alumni Association: Rules of the Garage

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1. Building 20 at MIT Innovation Story: A humble wartime lab that sparked a legacy of innovation and collaboration
2. Rules of the Garage: Reigniting Innovation at HP Innovation Story: How Carly Fiorina’s Manifesto Modernized the HP Way
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4. The Birth of Uber Innovation Story: How everyday frustrations and collaboration shaped Uber’s global transformation
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