How to Encourage Innovation in Employees: The HP Open Store Rule

    How to encourage innovation in employees: HP's Bill Hewlett cut the lock off his own storeroom. Here is the Open Store Rule and how to apply it in your office.

    How to Encourage Innovation in Employees: The HP Open Store Rule

    How to Encourage Innovation in Employees: The HP Open Store Rule (Updated October 2026)

    To encourage innovation in employees, give them easy access to the tools and parts they need to try an idea, before you ask for the idea. That is what HP co-founder Bill Hewlett did when he found a locked storeroom and cut the padlock himself. McKinsey says Indian managers spend 21 hours a week in meetings, and a lot of that time is permission-seeking that a simple open-access rule could remove.

    TL;DR

    What did Bill Hewlett actually do at HP?

    The story is simple. The owner of the company walked into the lab and found the equipment locked away. He could have sent for the key. Instead he cut the lock and left a note saying the locker should not be closed again. That owner was Bill Hewlett, co-founder of HP, the company behind computers and printers we all use. He did not want employees waiting around for tools and parts. The rule was that supplies should be easy to get, so a new idea could be tried straight away.

    Why does asking for ideas fail when tools need permission?

    I have seen this in offices many times. The boss says, "Think of something new." An employee says, "Sir, I want to try one small idea." Then the tool needs permission. First a mail, then a reminder, and the idea sits there until it dies. In some offices you even need approval to change a mouse. When trying costs this much effort, people stop proposing. Asking for innovation while controlling access is a contradiction your team notices before you do. If you want to see how I help managers fix habits like this, look at my leadership training in Pune.

    Lock-everything officeOpen Store office
    Tools need a mail, then a reminderEveryday items are open to use
    Ideas wait for approvalSmall ideas are tried the same day
    Boss asks for ideas, staff stay quietStaff bring ideas because trying is easy
    Failure feels riskyA small failed trial is normal

    What is the Open Store Rule?

    The Open Store Rule is this: before you ask employees for new ideas, give them a practical way to try those ideas. Lock people out and they wait. Trust them and they experiment. It does not mean no controls on anything dangerous or expensive. It means the everyday small things, a sample, a part, a software licence for a trial, should be reachable without a chain of approvals. Decide which items are open, which need a quick sign-off, and which stay locked, and tell the team clearly.

    Why let employees use company parts for hobby projects?

    The second surprise in the HP story is that engineers could use company parts for personal projects in their own time. The thinking was that skills built through a hobby could also help their professional work. I find that sensible. Someone who builds something at home learns problems the job never taught them. You do not need to copy this exactly, but you can ask what small, safe version your company could allow, such as a learning budget or a monthly tinkering afternoon.

    How do you apply this in an Indian office?

    Pick one small experiment that is waiting on permission in your team. Ask who stops it and why, then remove one step. Give people a list of what they may use without asking. Tell them that a failed trial is not a mark against them. In manufacturing plants, IT teams and sales offices alike, the pattern is the same: access first, ideas next. If you want your managers to build this habit, see our signature programs or write to us through the contact page.

    What should you not conclude from this story?

    Be careful about claims. This is a historical HP story told in the company archive and employee memoirs. It does not say every HP office works this way today, and it is not proof of a measured jump in productivity. I use it as a lesson, not as a statistic. The lesson holds for your own office on its own merits: if you want ideas, make trying them easy. Which small experiment in your office is waiting for permission right now?

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    Avinash Chate

    TEDx Speaker · Founder, The Future Corporate · 11+ yrs experience

    Avinash has trained Indian Army, BRO, RBI, BARC, JSW Steel and 1000+ corporate leaders across India. His work focuses on leadership development, communication skills, and behavioural training rooted in Indian values and modern business needs.

    Frequently Asked Questions

    What is the Open Store Rule?

    It is my name for the lesson in the HP story: before asking employees for new ideas, give them a practical way to try those ideas. Trust and easy access come first.

    Did Bill Hewlett really cut the lock at HP?

    Yes, the story appears in HP's company archive and in employee memoirs. He cut the padlock off the storeroom and left a note asking that it not be locked again.

    How can a manager encourage innovation without a big budget?

    Remove one approval step for small everyday items, list what people may use without asking, and treat a small failed trial as normal. These cost almost nothing.

    Can you run a session on this for my team?

    Yes. I run sessions for company teams on leadership and workplace culture. Write to connect@avinashchate.com or use the contact page to bring this session to your team.

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