THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES By ENOCH BURTON GOWIN Assistant Professor of Commerce, New York University School of Commerce, Accounts and finance; Secretary, The Executives' Club of New York; Chairman, Committee on Executive Training, National Association of Corporation Schools; Author, "The Executive and His Control of Men," "The Selection and Training of the Business Executive," etc. (Second Printing) NEW YORK THE RONALD PRESS COMPANY 1919 Copyright, 1919, by THE RONALD PRESS COMPANY Bus. Lib. HP SSOO To MEMBERS OF THE EXECUTIVES' CLUB OF NEW YORK EARNEST WORKERS, SINCERE COMRADES, FORWARD- LOOKING LEADERS, THIS WORK IS DEDICATED IN APPRECIATION 12GO71G PREFACE "There are more jobs for forceful men than there are forceful men to fill them," says tr?e uhaTrman of the Bethlehem Steel Corporation, Charles M. Schwab. "Whenever the ques- tion comes up of buying new works we never consider whether we can make the works pay. That is a foregone conclusion if we can get the right man to manage them." "The average man is ambitious and wants to get ahead," says the General Manager of the Loose-Wiles Biscuit Com- pany, G. H. Willcockson, "but he does not know how\." The opportunity with which men in business are faced and the reason why it remains in large measure unutilized are here set forth. Though the need for their most skilled service continues very real, men possessed of the latent executive capacity too often are left to plod through the day's work as best they may, without vision and the definite methods which might so readily advance them. This vision and these definite methods, valuable because based on sound principles and concrete enough to apply to the day's work, are necessary if men in business are to forge ahead; and they ought to be so interwoven with the general qualities of mind and body that a coherent program of personal management results. The individual then utilizes to the full his resources because he wants to and knows how. That such full utilization shall take place in the reader's personality and career constitutes the purpose of this book. The form of presentation adopted is non-technical and in- formal to a degree perhaps unusual in a work of such serious purpose. The author admittedly has a preference for the vi PREFACE more strictly scientific, and the informal nature of the book is due to the fact that much of its material has been presented before various groups of business and college men, and that the interest and preferences of these audiences have been taken rather definitely as a guide in the task of writing. Theoretical discussions, which in the past proved least interesting, have been reduced to a minimum; and concrete instances, definite methods and opinions of leading executives, for which the hearers evinced a keen appreciation, have been presented with relative fulness. The result is not a work for scholars, much less an attempt to display erudition, but a series of chapters distinctly practical in their aim. It is a pleasure to acknowledge the aid received from busi- ness executives, who in considerable number considered with the author their problems ; students who have supplied various materials ; and the following books and magazines, quotations from which appear in the present volume on the pages specified : George P. Baker and Henry C. Huntington, "Prin- ciples of Argumentation," 239, 240; Harrington Emerson, "Twelve Principles of Efficiency," 135 ; B. C. Forbes, "Men Who Are Making America," 10, 371, 417; F. B. Gilbreth, "Motion Study," 172; W. H. Herndon and J. W. Wiek, "Abraham Lincoln," 220; Hearst's Magazine, 347, Engineer- ing Magazine, 284, 285, 286; William James, "Principles of Psychology," 84, 85, 87, 186, 325-326; Ibidem, "Talks to Teachers on Psychology," 344, 352; E. D. Jones, "Adminis- tration of Industrial Enterprises;" W. C. Mitchell, "Business Cycles," 261, 266; Angelo Mosso, "Fatigue," 339; F. W. McMurry, "How to Study," 16; Life Extension Institute, 296, 314, 358; J. D. Rockefeller, "Random Reminiscences of Men and Events;" C. E. Seashore, "Psychology in Everyday Life," 86; System, n, 54, 115, 129, 149, 151, 208, 429; Ida M. Tarbell, "History of the Standard Oil Company," 64, 199, 390, 449; F. W. Taussig, "Inventors and Money- PREFACE vii Makers," 216; World's Work, 226. These quotations were to have been cited in the footnotes, but owing to the author's entrance upon duties in the Ordnance Department before the manuscript was fully completed the plan contemplated was not carried out. For the same reason the author is indebted rather more than otherwise he would have been to members of The Ronald Press Company's editorial staff. Mr. Conyngton and Mr. Shidle very kindly prepared the legal portion of the chapter, "The Executive's Legal Problems," Mr. Shidle in connection with other chapters has also been very helpful, and Mr. Wade has done much of the work in expanding a single chapter on "Personal Finance" into the present Part VII. The author thanks all these co-workers for their interest in cultivating with him the science of personal management. E. B. GOWIN. Washington, D. C, Labor Day, 1918. CONTENTS Part I Today's Work and Beyond CHAPTER PAGE I THE OPPORTUNITY OF THE EXECUTIVE .... 3 The Big Idea in Business In Charge of a Billion-Dollar Enterprise The Twenty-Five Per Cent Man Opportunity The Increased Demand for Executives Noted Business Men Explain Their Advancement Personal Traits Which Brought Promotion II A DEFINITE PROGRAM 12 The Coherent Program Which Gets Results Standardization the Key Principle A Policy of Preparedness, Whatever the Present Position Exercises How to Study Part II The Basis of Personal System III HANDLING DETAILS 21 Victim or Master of Details How J. Pierpont Morgan Handled Details Business Knowledge Which Gets Down to Bed-Rock Systematic Care for Details A First Aid to the Memory the Memo The Defects of a Bound Note-Book The Loose-Leaf Memo System Ruled and Printed Memo Sheets How to Dispose of Memoranda The Tickler An Example of the Tickler's Use Simpler Forms of the Tickler Method The Newspaper Man's Assignment Book A Department Store Superintendent's Methods The Tickler as a Business Getter Incoming Material Systematic Filing a Matter of Course in Careful Business Apply the Lesson to Your Own Work The Idea File Mental Staleness and Its Antidotes The Retailer Keeps Up-to-Date ix x CONTENTS CHAPTER p AGE The Idea File in Operation An Increased Supply of Facts A Loose-Leaf Idea File An Index for Books and Articles Conclusion Exercises Methods You Are Using Not Too Much Apparatus A Final Warning IV OFFICE EQUIPMENT 43 The Executive's Workshop The Office Desk The "Built-to-Order" Desk The Desk Cleared for Action The Desk Kept Cleared for Action "One at a Time, Gentlemen !" The Day's Work File A General Manager Analyzes His Work A Hold-Over File The Deep Drawer Remodeled Into a File Results of Good Equipment and Layout The Disposal of Finished Work The Matter of Small Wastes A Place for Each Desk Tool The Glass Desk Top as an Extra File An Architect's Office System The Executive's Devices for Communication The Telephone, Its Use and Abuse Dictograph and Telautograph The Importance of Office Layout A Real Estate Dealer's Office Problem What an Investigation Revealed The Office as Rearranged Conclusion Exercises Simple Forms of the Day's Work File An Inventory of Your Desk Tools Other Aids- Lost Motion in Your Own Office V THE PRIVATE SECRETARY 64 John D. Rockefeller's Growth as an Executive The Standard Oil "Trust" The Headship of a Big Organization The Executive's Chief Business The Utilization of Assistants The Duties of a Private Secretary The Money Value of Secretarial Services The Secretary Promotes His Chief's Efficiency Selecting a Secretary The "Hire and Fire" Policy Where to Find Suitable Applicants CONTENTS xi CHAPTER PAGE The Secretary's Qualifications The Rating of the Various Applicants Standardized Conditions for the Secretary The Secretary's Desk with Respect to Office Layout Training as the Source of Competent Secretaries The Best Possible Results from a Given Cost A Special Training Course Handling Correspondence Without Dictation A Knowledge of the Company's Business Instructions by the Executive The Developing of Initiative and Responsibility The Complaint That Secretaries Do Not Think The Unsystematic Man Hard to Satisfy William A. Field Defines Executive Success A Training School for the Coming Executive Exercises The Waste of Petty Annoyances Important and Unimportant Tasks VI A SERVICEABLE MEMORY 84 The Tool Which Is Used Most of All The Memory that Gets Results Improving the Memory The Man Who Remembers Is He Who Knows How Why "Memory Systems" Have Long Flourished The Operation of a Typical Memory System Curious Attempts to Strengthen the Memory Thurlow Weed's Method A Wasteful Method RULES OF IMPRESSION 1. Become Thoroughly Interested 2. Be a Specialist, Ignorant of Many Things 3. Concentrate Upon the Essentials of Your Specialty 4. Master as You Go RULES OF ASSOCIATION 1. Analyze for Principles 2. Discover Relationships 3. Make Use of Associations 4. Bind Elements Into Large Units RULES OF RECALL 1. Recall With Accuracy 2. Concentrate on the Relevant 3. Repeat the Recall Frequently 4. Seek Out Clues Persistently RULES OF RECOGNITION 1. Recognize With Vividness 2. Express the Recognition Appropriately xii CONTENTS CHAPTER PAGE 3. Trust Your Memory 4. Forget the Useless Summary of Rules Exercises Conditions- of Memorizing Methods of Memorizing Not Just Plodding, But Planning Part III The Dispatch of a Day's Work VII PLANNING THE DAY'S WORK 107 The Economy of Well-Planned Activities On the Offensive Definite Accomplishment Colonel Roosevelt An Orderly Worker A Survey of the Day's Work The Elements of Planning The Waste of Unplanned Work The Assistance of Systematic Planning Illustrations of Systematic Planning Some Typical Daily Plans 1. Daily Program of Auditor for Street Railway Company 2. A Manufacturer's Schedule 3. A Sales Manager's Schedule 4. A Bank Cashier's Schedule 5. Daily Working Plan of Manager of Mail-Order Sales 6. Duties Recommended for Schedule By Carroll D. Murphy, in System Preparing Your Plan Classifying Your Work Applying the Analysis in a Definite Plan A Trouble Man's Daily Program Better Results from Planning How Much Time Is This Task Worth? Why Write Out the Plan? How Far Ahead to Plan Making the Plan Fit Your Needs- The Matter of Personality When to Prepare the Plan Wide Applicability of Planning Exercises Is Planning Practicable? Planning for Others Planning in Daily Life VIII DOING THE DAY'S WORK 135 Putting the Plan Through Marvelous System of Dispatching CONTENTS xiii CHAPTER PAGE Human Traits of the Long Ago Inefficiency Still With Us Opponents the Systematic Worker Must Overcome The Procrastinator The Big Dreamy Idea An Always Available Stock of Raw Materials Yesterday is Dead; Be Done With It The Waste-Basket as an Ally Dilatory Co-operation Interruptions By House Men A General Office Schedule The Problem of Handling Callers The Selection of Callers The Growing Aggressiveness of Callers How Shall the Executive Protect His Time? Shortening the Caller's Stay Closing the Interview The Distress Signal Who Else Is Waiting? President Roosevelt and His Callers Dominating the Interview Exercises Wasting Time Your Own Record Improvement IX SHORT-CUTS 159 Amateur Versus Expert A Lesson from Animal Psychology Short-Cuts Represent Perfected Methods Conservation of Time Business Time for Business Some Things Not to Do Supervising from the Office Words versus Check Marks Use of Both Hands Head versus Heels Starting and Stopping Day's Work Plan for the Secretary Filing Short-Cuts Use of Symbols Preparation for Dictation Speed in Dictating Elimination of Wasteful Details Dispatch in Handling Correspondence Color Schemes Carbon Copies Machines for Dictation The Automatic Correspondent 100 Per Cent Efficiency The Fire Department a Personal Incentive The Daily Use of Short-Cuts xiv CONTENTS CHAPTER p AGE Exercises Short-Cuts in Use A Test of Progress The Short-Cut Point of View X EFFICIENCY HABITS 177 Henry Ford and The Radiator Cap Justifiable Expenditure The Nervous System a Business Organization Habit is Standardized Nerve Action The Efficient versus the Inefficient Way Double Waste Productive Power Capitalized Habits Inevitable; Which Kind? Thought Followed by Action Keeping Fully "Sold" On a Subject The Road to Full Efficiency The Influence of Habit Upon Creative Work Exercises Standardizing Good Practice Benjamin Franklin's Method Applying the Principle Part IV The Thinker in Business XI INITIATIVE AND VISION 195 Routine and Constructive Thought The Perception of Opportunity 1. Exploitation of Natural Resources 2. Development of Inventions 3. Improvements in Production and Distribution 4. Fluctuations in Values 5. Supplying Known Wants Needs and the Law of Service The Many Roads Upward The Business Man's Task Alertness a Business Asset Pioneer versus Followers The Power of Initiative The Fresh Viewpoint The Raw Material of Ideas The Search for Business Ideas Imagination, a Quality of Empire Builders Development of New Ideas Thought as a Business Force Exercises Intelligent Observation Keeping the Mind Alert and Active XII THE FEASIBLE PROJECT 215 The Commercial Instinct CONTENTS xv CHAPTER PAGE Edison and Commercial Availability Reflection Performs an Essential Service Andrew Carnegie on Business Judgment The "Sure Thing" Delusion The Risks of Business The Problem-Solving Type of Mind The Mastery of a Business Getting at the Essentials Keeping the Right Road Lord Bacon's Warning The Danger of Deceiving Oneself Procedure at the General Electric Plant The Systematic Elimination of Risk Superior Reasoning Ability in Practice Exercises First Ideas The Sifting of Ideas XIII TESTS OF REASONING 231 Exact Knowledge Needed Sources of Information Testing the Evidence Systematic and Accurate Procedure Analysis for the Executive What Does the Idea Mean? Competence of the Witness The Idea Itself Correctness of the Process of Reasoning Correctness of Premises Incorrect Sequence Analogy Incorrect Sequence Evidence Not Sufficient Factors Overlooked Validity of These Tests Exercises Problems in Analysis Mill's Five Canons Part V Aids to Efficient Control of Business XIV CONTROL THROUGH STATISTICS 251 The Problem of Control The Securing of Statistical Data Adequate Control at Reduced Cost 1. Standardized Forms 2. Essential Data 3. Samples 4 Up-to-date Information 5. Summarized Reports 6. Statistical Analysis Outside Conditions : Business Barometers xvi CONTENTS CHAPTER PAGE The Cycles of Business The Study of Fundamentals A Preliminary Analysis . The Volume of Business Bank of Clearings Further Data on Volume of Business Other Fundamental Statistics The Choice of Barometers The Sources- of Statistics The Interpretation of Fundamental Statistics Significance of the Time Element Forecasting Made Possible by Statistical Knowledge Exercises Forecasting XV GRAPHIC PRESENTATION 272 Information in Usable Form The Mobilization of Business Speeding Up the Judgment Graphs in the Great War Why the Executive Uses Graphs Maps Increasing the Map's Usefulness "Boards" Which Present Facts Graphically Control-Boards Geometric Figures as Aids in Presentation Charts Which Confuse Curves, the Graphic Device Par Excellence Standards for Graphic Presentation Qualities Essential to the Executive Exercises Data You Need Graphic Presentation of this Material Part VI Personal Dynamics XVI PHYSICAL ENERGY 293 Pushing the Project Through The Victories of Physique The Wastes of Below-Par Condition Overlooked Resources What Shall Our Physical Ideals Be? Sources of Physical Energy Food and Normal Diet The Three Chief Classes of Foods Food Selection and the Appetite Restoring the Natural Appetite How Thorough Mastication Aids the Digestion Air as an Energizer Invigorating versus Devitalizing Air Making the Best Use of Air CHAPTER xvn PAGE CONTENTS Bodily Poisons Don't Increase the Handicap Mouth Sanitation Constipation, the Anti-efficiency Malady Exercise and Energy "Spectatoritis" a Serious American Disease Six Essentials- for a System of Exercise Maintaining Good Posture Lessons from Our Army Rules for Health Culture Exercises Walter Camp's Suggestion Exercises Health Culture Chart XVII POWER OF WILL 320 A Hard Drive Toward the Goal The Business of Mind Building Bizarre Schemes for Developing the Will What Will-power Really Is, and How Cultivated Fires Which Are Damped The Ruling Passion A Mind Made Up, and Moving Forward The Ruling Passion Supplemented Yourself on Record Cottingham's Campaign The Salesmen's Response Keeping One's Goal in Sight The Atmosphere of Achievement A Man's Opinion of Himself Faith in Self Attitudes of Power Self-Discipline Will Training Summarized Exercises XVIII MENTAL ECONOMY . . . .. . . . , 337 The Art of Mental Economy The Tired Person is Poisoned A Record From Life's Firing Line Fatigue and Inefficiency Definite Accomplishment Habits and Specialization Introspection versus Objectivity Worry, the Policy of a Spendthrift Zones of Low Fatigue The Means for Recreation "Vacations Daily" Sleeplessness and Its Cure The Gospel of Relaxation Conservation versus Waste Conservation versus Waste Results Repose as an Ideal XV111 CONTENTS CHAPTER PAGE The Elimination of Distractions Cases Decided Once for All A Little Humor Now and Then The Spirit of Youth Fads versus Common Sense Exercises "Planning" Mental Effort A Self-Grading Chart Part VII Personal Finance XIX THE POWER OF FINANCE Pushing a Business Project The "Help Yourself" Plan Growth of the Business In Business for Oneself Requisites of a Successful Enterprise Testing the Soundness of an Enterprise The Factor of Management Sufficient Capital 365 XX THRIFT AS A WORKING POLICY 371 Financial Preparedness Building Solidly American Habits of Waste Value of Thrift Plans Suggested for Saving The Family Standard of Living The Productive Use of Funds Exercises XXI THE ART OF INVESTING 382 The Business Man as an Investor Qualities of an Ideal Investment Sources of Information as to Investments I. Diversifying Investments II. Buying Periods and Selling Periods III. Do Not Speculate IV. Slow but Sure Investments V. Avoid All Get-Rich-Quick Schemes Exercises- Some Personal Questions as to Investing Money XXII THE FINANCING OF A BUSINESS Where the Real Profits Are Methods of Financing Rockefeller a Shrewd Borrower Why Borrow 389 CHAPTER CONTENTS Confidence a Business Asset Borrowing for Business Purposes Financing By Means of Partnership Selection of a Partner The Corporation Adequacy of Capital Exercises Amount of Capital Needed Borrowing Partnership Incorporation Building Up the Business XIX PAGE XXIII THE EXECUTIVE'S LEGAL PROBLEMS .... Help versus Hindrance The Law of the Land Relation of Law to Business The Law of Contracts The Law of Agency Business Organization The Law Relating to Your Own Line of Business Wherein the Law is Lacking Procedure Slow Complexity Variety of Sources How to Secure a Knowledge of Law How to Avoid Litigation The Lawyer and the Business Man Lawyer's Fees The Rules of Finance Elementary Rules of Financing Law Books for Business Men 400 Part VIII A Man Among Men XXIV TEAM-WORK 417 Business Today Beyond the One-Man Stage Reaching the Consumer Large-Scale Production Advantages of the Big Business The Organization Point of View The Business of Being an Executive Rules of the Business Game Principles of Scientific Management Charting the Manager's Responsibilities Outlines of Specific Duties Exercises Careful Adjustment of Functions A Test of Executive Capacity XX CONTENTS CHAPTER XXV CO-OPERATION PAGE 434 The Placing of First Things First The Best Index for Efficiency The Organization's First Essential Surety of Performance What the Name "G. Washington" Meant Winning the Good- Will of Others Enabling Men to Make Good Tact, a Quality Which Makes for Effectiveness Signs Which Indicate Co-operation The Iron Grip Surrendered, The Enterprise Greater Than Self Exercises Playing the Game How Do You Grade? XXVI THE NEW IDEALS OF BUSINESS 448 Thinking in Broader Terms "Business Is Business" The "Public be Damned" Policy The Public Revolt Against Misused Power The "Public be Served" Policy The Corporation Discovers its Soul The Executive's Service Ideals Development of Social Consciousness The Enduring Satisfaction of Business Exercises XXVII THE GOAL WHICH MOVES FORWARD . Yourself That is To Be Utilizing the Concrete Opportunities The Road to Mastery and Its Side Paths The Man Who Moves Forward 459 Part IX What to Read XXVIII INTELLECTUAL PREPAREDNESS . The Future Business Leader Self-Culture in Business Making the Most of Opportunity The Making of a Great Character XXIX BOOKS FOR THE BUSINESS MAN A Broad Effectiveness Business Management Marketing Finance Accounting 465 470 CONTENTS xxi CHAPTER PAGE Economics Business Law The Scientific Method Health and Mind Culture Natural and Social Sciences Biography Correspondence Courses- Current Publications FORMS AND ILLUSTRATIONS FIGURE PAGE 1. The Tickler 27 2. Memo Cards for Tickler 29 3. The Memo System Devised by a Busy Department Store Superintendent 30 4. Alphabetical Filing 32 5. An Index Card for Books and Magazines 38 6. A Desk Built to Order 45 7. The Day's Work File 47 8. An Extension of the Day's Work File 49 9. The Center Desk Drawer Partitioned 52 10. Schedule for Desk Glass 54 11. A Real Estate Dealer's Office (a) Poorly Arranged, (b) Well Arranged 58 12. A Matter of Organization 67 13. The Various Steps in Memory Culture are Here Summarized 101 14. Weekly Schedule of Work. (Used by W. F. Ingersoll) . . 114 15. Schedule for Daily Work 117 16. A General Manager's Daily Order of Business 130 17. Office Schedule 144 18. Interdepartmental Schedule 146 19. "Ammunition" for Breaking Through the Executive's Defense 148 20. Checking System 162 21. Card Used to Save Time of Dictating 170 22. Brain and Spinal Cord, with the Thirty-one Pairs of Spinal Nerves 180 23. The Elements of Costs 252 24. The Securing of Statistical Data 253 25. General Layout of a Unit Record 255 26 (a). Babson's "Compositplot" 267 26 (b). Brookmire's Graph 268 27. A Railroad's Operating Ratio 281 28. Detailed Time Study of Two Operators Labeling Packages 282 29. Factory Production of Shoes Shown "in Round Numbers" . 283 30. Control Curves Showing Gross Earnings of Three Factories 284 31. Curves Used as a Means of Executive Statistical Control . . 285 32. A Nerve Test 339 33. The Channels- of Distribution 419 34. Organization of a Factory 425 35. (a) and (b). The Executive's Position 430 36. "My Duties" Analyzed 431 xxiii TEST CHARTS CHART PAGE 1. How I Am Handling Details 40 2. Standardizing the Apparatus for Handling .Details 41 3. An Inventory of Desk Tools 62 4. Whose Work? 82 5. Securing Best Results from the Private Secretary 83 6. My Experience with 132 7. Planning My Work 133 8. My Record as a Dispatcher 158 9. The Results of Twenty-four Working Days Compiled from the Records of Five Specialty Salesmen 175 10. The Systematization of the Day's Work is Here Reviewed in Nine General Questions 189 11. Capitalizing Attainments as Habits 192 12. How Profits are Being Made in My Field 213 13. History of Ten Ventures 229 14. Six Forecasts 270 15. A Personal Forecast 271 16. Health Culture Chart 318 17. The Culture of Will 336 1 8. Mental Economy's Self-Grading Chart 360 19. Chart for Self-Grading on Saving Money 381 20. Sixteen Tests of Executive Capacity 433 21. Points of Co-operation 447 XXIV DEVELOPING EXECUTIVE ABILITY PART I TODAY'S WORK AND BEYOND Under scientific management the best man rises to the top more certainly and more rapidly than ever before. FREDERICK WINSLOW TAYLOR. CHAPTER I THE OPPORTUNITY OF THE EXECUTIVE There are more jobs for forceful men than there are forceful men to fill them. CHARLES M. SCHWAB. The Big Idea in Business The time has arrived in business when executives, con- vinced that rule-of-thumb cannot serve them, are developing with great rapidity the new science of management. It is not that these men prefer theories, or changes, or severe think- ing; the new methods get results and they are adopted solely for this reason. This development of better management, both in its aims and methods, is commendable ; but, since every man personally, as well as officially, has a business enterprise under way, is the process to stop short of the executives them- selves? The individual, no less than the corporation, has his problems of production, sales, accounts, and finance. In order to render his enterprise highly profitable, a first-rate > dividend-payer whose stock is always above par, every self- manager who is progressive and foresighted, will seek to con- duct these four operations in a manner that is thoroughly efficient. In his moments of strength a man sets for himself as per- sonal manager certain standards of achievement. These rep- resent his maximum, that high level of independence, respon- sibility, opportunity, and remuneration for which his best self longs and to which his capacity justifiably entitles him. He proposes to forge ahead until these worthy ends are attained his part meanwhile to be that of a skilled player enjoying 3 4 TODAY'S WORK AND BEYOND every move in the great game of business itself. This full utilization of every available resource, this getting of the best from oneself, constitutes to him the big idea. In Charge of a Billion-Dollar Enterprise In speaking of a man's personality as a business enter- prise, with its problems of production, sales, accounts, and finance, and its ideal of first-class management, have we a con- ception which is definite and which may be justified? Let us see. For more than fifteen years one man has been the chief master of the iron and steel industry, with 152,000 stock- holders above him expecting dividends and 270,000 workmen beneath him demanding wages. He is Elbert H. Gary, Chair- man of the Board of Directors of the United States Steel Corporation. He presides over an industrial empire owning more land than Massachusetts, New Hampshire, and Ver- mont combined; supporting more people than inhabit Ne- braska ; employing more men than fought at Gettysburg ; sail- ing a larger navy than that of Italy; gathering in a larger revenue than the United States Treasury; and representing more capital than all the banks in New York City. Judge Gary, while not a practical manufacturer, is over- lord of 146 plants and 1,700 industrial communities; though he is neither a railroad nor steamship authority, he directs a trackage of 3,380 miles and a fleet of 220 units; he is not a miner, yet his company excavates iron ore and coal with an army of 40,000 men; he is no expert steel-maker, but his furnaces and mills roll up .tremendous production records. His business cares do not seem to tax him. Yet while Judge Gary goes calmly on his way with his billion-dollar corporation in tow and other captains of indus- try, similar in their effectiveness, are crowding the business day with transactions of like magnitude, we meet men "hur- THE OPPORTUNITY OF THE EXECUTIVE 5 ried to death" managing corner groceries, "awfully busy" attending to tiny machine shops, worried into sleeplessness over the burden of $100 deals. Their business stature, in comparison with the captain of industry, appears dwarfed. Manifestly Judge Gary, and men like him, had certain in- born qualities and capacities of high grade upon which to build. Yet mere inherent ability, inborn capacity, floats no man to an easy success. Every one of these men utilized, de- veloped, made the most of the powers with which he was en- dowed by nature. His personal enterprise becomes stronger, better organized, more smoothly efficient year by year. The Twenty-Five Per Cent Man Inside every business organization there are men who, somehow, have stood still. They have been years perhaps with the same company, at their desk regularly from nine to five ; yet they have received little if any real promotion. Worse still, others have been advanced over their heads, and the orders issued by some of these erstwhile subordinates, now managers, under the circumstances contain a sting. The mental atmosphere in which such men live deadens and em- bitters; it serves to breed disloyalty, possibly anarchy, cer- tainly not efficiency. What men in business receive, however, whether they be rising executives or the routine-minded caught in stagnant coves, is, as a broad, general principle, proportioned strictly to the value of their services. The corporation which pays its president perhaps $100,000 annually believes that inasmuch as the net profits would be considerably less under a $50,000 man, the big man is cheap at the big salary, whereas acting under similar reasoning it at the same time discharges a $i5~a-week clerk because at that price he is found too expen- sive. It is a matter simply of services rated at a given value and purchased at a given cost. 6 TODAY'S WORK AND BEYOND The men who advance concentrate upon the essentials of their enterprise its production, sales, accounts, and finance activities because these things, not complaints and criticisms, will get them what they seek. The position on ahead is for the man who overflows the position now at hand. Is the average business man of this plus type, a smoothly running dynamo with reserve power in wait for some unusual job? Does he produce, sell, record, and finance at maximum capacity? While not a few persons in a vague way deceive themselves into thinking that their best is being done, an impartial analysis commonly reveals this average man acting thus: He squanders his energy unproductively, worrying more than he works and filling his body and brain with fatigue poisons. ^ He thinks superficially. He is the slave of rule-of -thumb, a sluggish fellow content to tread the winding cow-path of custom instead of striking through a short cut of his own. He procrastinates, dulls his will by "can'ts," "won'ts," and "don'ts," and merely dreams of new ventures. He forgets. He lacks control a victim of carelessness, bad temper, selfishness, laziness, and snap judgment. He swelters along under loads of details, a never-ending routine under which creative plans are crushed out, and fails above all to perceive that perched high upon this pack-horse burden which he carries rides his real master, the devil of in- efficiency. "I believe," says Melville W. Mix, President of the Dodge Manufacturing Company, "that the majority of executives in this country are not more than twenty-five per cent efficient measured by the standard of performance of the few really efficient ones." THE OPPORTUNITY OF THE EXECUTIVE 7 Opportunity But, someone suggests upon looking over the foregoing list, granted that these are deficiencies, is not the average man still larger than the average job? Could an additional 100 per cent man find an enterprise to swing? The United States is still a growing country. Its citizens, because their standard of life is high, with every indication of becoming higher, have many wants, and the growth of population which bids fair to continue for decades thus affords business men an unrivaled market. In addition to these domestic needs there are world needs of enormous proportions. Only progressive methods in production, selling, accounting, and financing can meet adequately such market demands. The managers who aim both to devise and operate these progressive methods have undertaken tasks which tax to the utmost their capacity. With industry led by giant corpora- tions, and trade relations established with all parts of the world, strong men are being sought to bear the burden of management. When within the organization an elaborate division of labor involving both men and machines must be planned, the intricacy of the task calls for thought power of a high order. Because each man's effort is dependent upon the activities of many others, the speed exacted in output, the promptness required in meeting every situation, render alert- ness and reliability qualities highly prized. Finally, with competition sharpening, our business centers becoming more and more crowded, and the markets of the world being sought, the man able most efficiently to produce quantity and quality at low cost, finds his services everywhere in demand regardless of the line of business he is in. Opportunity now as heretofore treads hard upon ability. The Increased Demand for Executives This observation receives general support in statements 8 TODAY'S WORK AND BEYOND recently made public by the heads of twenty-five large corpora- tions. It appeared from these reports that : 1. 358 vacancies in executive positions had developed within a very short time. 2. Men to fill 142 of these vacancies could be secured only from outside the organizations. The situation was being met in their own organizations, certain executives explained, by : "Promotion and added duties." Ralph Peters, President of Long Island Railroad Company. "The taking over of work by other executives." J. Franklin McElwain, W. H. McElwain Company. "The additional work has been largely absorbed by those remaining, made possible by reorganizing to some extent, and the elimination of unnecessary operations." J. N. Willys, Willys-Overland Company. "We consolidated positions and increased the work and responsibilities of remaining men." P. T. Wharton, Deere and Company. What do we read between these lines, and similar lines that could be penned of organizations everywhere? This is a time when as never before every man has his chance, and when it is his public duty to make the most of his chance. Under the imperative of war thousands of men in executive positions men in large positions and in small ones, young men and mature were called into government service. Those who were left in charge of business organi- zations were practically in the government service also. It was not only their opportunity, but their responsibility, to improve themselves, for they had to keep the fires under the boiler and navigate the ship in war time and must now continue to do so in the difficult time after the war. This is a time when every man should do his utmost, a THE OPPORTUNITY OF THE EXECUTIVE 9 time when the demand for our enlarged capacity to serve assumes somewhat the nature of a call to world service. What, then, should be our viewpoint concerning oppor- tunity and personal accomplishment? The highest salaried man in the world expressed it when, upon being asked how he had succeeded, quietly answered: "I haven't succeeded. No real man ever succeeds. There is always a larger goal ahead." Under the conditions of business as they are evolving today this is literally true ; there are always larger goals ahead, for every man who has the power to grow. Noted Business Men Explain Their Advancement The reader will agree, very likely, that he is not accom- plishing what in justice to himself he knows he ought to do. The question which naturally arises then is : How utilize to the full every resource at my command ? Let us put this question to several captains of industry; they have all displayed conspicuous ability as managers, having risen from the ranks, and their own views concerning the causes of their notable advancement ought to prove illumi- nating. Thomas E. Wilson, President of Wilson and Company: "I am no brainier nor wiser than any number of other people. My whole success is traceable to the fact that I have enjoyed my work and have given to it the best in me. No job was ever too big for me to tackle. That is the foundation of suc- cess nine times out of ten having confidence in yourself and applying yourself with all your might to your work." A. C. Bedford, President of the Standard Oil Company of New Jersey : "The first promotion I attribute to my will- ingness to do more than was expected of me and to the insight I then obtained into business methods. This gave me a grasp and a vision such as the average clerk in an office too often I0 TODAY'S WORK AND BEYOND fails to cultivate because of his machine-like performance of his allotted tasks." Theodore N. Vail, President of the American Telegraph and Telephone Company : "I was never unwilling when young, to do another man's work, and then, when older, never willing to do anything somebody else could do better for me. I was always fond enough of detail to thoroughly master what I was undertaking and then hated detail enough to not bother with it when I got to the treatment of the general subject." Samuel Insull, President Commonwealth Edison Com- pany : "Non-success is often due to inability to see things, to note intelligently what other people are doing, to learn what is what, and to grasp new opportunities. They don't seem to keep their eye on the ball." Henry Ford, President Ford Motor Company : "There is one principle which a man must follow if he wishes to succeed, and that is to understand human nature. I am convinced by my own experience, and by that of others, that if there is any secret of success it lies in the ability to get another person's point of view and see things from his angle as well as from your own." James B. Duke, Ex-President American Tobacco Com- pany: "I had confidence in myself. I said to myself: 'If John D. Rockefeller can do what he is doing in oil, why should I not do it in tobacco?' I resolved from the time I was a mere lad to do a big business. I loved business better than anything else. I worked from early morning to late at night I was sorry to have to leave off at night and glad when morn- ing came so that I could get at it again." Personal Traits Which Brought Promotion Let us supplement these statements of the captains of industry by the replies several executives gave to this ques- THE OPPORTUNITY OF THE EXECUTIVE 1 1 tion: Think of the three best men in your business what qualities brought them promotion ? The answers follow : "Desire for authority and responsibility, backed by suf- ficient will-power." "Resourcefulness in emergencies." "Pushed the work always, never let it push him. Was a live wire for others to look at." "A real diplomat liked by all the men. Enthusiastic took personal interest in the business, and got the best out of everything." "Constructive initiative coupled with the application of good common sense added to whatever natural abilities a man may have, achieve success and deserve it." "Kept studying our business, and training himself and every man under him all the time. We had to advance him or he'd have been stolen by some competitor. He is cheap at $15,000 anyway." "Stick-to-itiveness, when the work piled high and the clock struck the hour. Didn't 'go up in the air' at just criti- cism. Was amenable to suggestions and advice. Careful and accurate. Able to take the handling of some routine without being supervised every minute." "Ability to handle men. Initiative. Familiar with my system of records and my desires as regards correspondence. Congenial and as much interested in the work as I; well- balanced disposition; being able to handle everything with a view to the best results regardless of personalities or obstruc- tions." CHAPTER II A DEFINITE PROGRAM Only by a system that is, by something that will work automatically, precisely, accurately can one secure the full- est returns from his striving. WALTER H. COTTINGHAM, President, Sherwin-Williams Company. The Coherent Program Which Gets Results The statements explaining the success of individuals, cited in the preceding chapter, are all filled with human interest. Yet the man anxious to advance does not find in such state- ments the coherent program he seeks. They are isolated com- ments, while it is the well-laid campaign which yields victory in personal management as elsewhere. Systematic planning of such a campaign means long and careful study. It involves : i. Learning and comparing the views of notable business men concerning their own careers, their methods of work, the lessons experience has taught them. These statements may be gleaned from many sources : interviews, biographies and autobiographies, magazines and newspapers, legal testimony, conversations, correspondence. They should be supplemented and corrected by the comments of competent observers. 2. Observing men for oneself, analyzing with care every salient item about- them. Of supreme value are the truly great business executives, those pioneers in personal efficiency whose achievements and methods bring joy to the discriminating observer. Yet in this study the failures, and the mediocre, are not to be ignored, for, while their experience is negative, it has been costly to these persons and its charge should not be re-levied. In discovering what to do a knowledge of what not to do has its value. 12 A DEFINITE PROGRAM ! 3 The man who has made any progress whatever in busi- ness has of course been making such observations for him- self already. He is now to do it more systematically and to apply scientific principles. 3. Drawing freely upon a number of related sciences. Physiology, psychology, education, ethics, economics, and busi- ness administration particularly, contain material invaluable to the study of personal management. Organizing this mate- rial into a coherent system, that is to say, analyzing and classi- fying its details and deducing general principles. This part of the work a busy man can hardly find time to do for himself. Nor could he trust fully his own perspec- tive. He needs the help of a good book which will present essentials in compact and reliable form. 4. Finally, most important of all, making this system one's own, its superior effectiveness so woven into the personality as to appear a heritage from nature. This, of course, must be the contribution of the reader, the student, himself. The -fit of the book depends on how well it is shaped by the individual to his own needs. Standardization the Key Principle The development of first-class practice in the management of oneself, can be completed at a very great saving in time and effort provided we utilize consistently a certain key prin- ciple standardization. There is always a one best way of doing everything. In the yards of the Bethlehem Steel Company this one best way was introduced into shoveling. Without longer hours or harder work, output was increased from sixteen tons to fifty-nine, wages from $1.15 to $1.88, and ton cost to the company, all expenses included, was reduced from seven and one-fifth cents to three and one-third. In the stenographic department of a large office standardi- I 4 TODAY'S WORK AND BEYOND zation resulted in wage increases averaging twenty-two per cent, a cost reduction from $7.69 per thousand square inches of typed matter to $2.58, a lessened overhead and a marked gain in accuracy. In a sales organization rule-of-thumb was attaining an average business per salesman of $18,000; standardization with regard to personnel, territory, sales canvasses, and super- vision brought this average up to $39,000. Practically every forward-looking man in business is an adherent of this principle as regards the operation of ma- chinery and the direction of the labor of subordinates. As the head of a personal enterprise in which production, sales, accounts, and finance are necessary activities, the executive can gain as much from standardization as in the operation of his factory's machinery. The situation which confronts men in business, conse- quently, can be summarized in the form of two proportions : 1. Opportunity in the form of increased need for execu- tive ability is today general, with prospects for the future distinctly encouraging; and 2. Standardization affords the method by which to "cash in" on these opportunities because it means seeking out and putting into operation the one best way of doing things. A Policy of Preparedness, Whatever the Present Position A certain persistent error cuts short the career of many a junior executive and chains numberless clerks to their routine tasks, namely, the view that while the heads of big organizations must of course be highly skilled it does not matter a great deal how men lower in the ranks do their own work. Once we have been promoted to those positions, the lower rank person possibly adds to the observation, it will be time to train our powers. A DEFINITE PROGRAM 15 The man who puts off developing his capacity until high rank has been attained thereby locks the door against him- self and throws away the key. By his own act, he condemns himself to sweat under routine burdens like a stupid pack- horse, to spend his days as a mere drudge, and to let die un- realized his inherent impulse toward high achievement. The department head in a big corporation, the man at the head of a small organization, have in today's activities, no matter how limited their scope may seem, a complete training course in management, if they care to make it so. Rockefeller, Carnegie, Harriman, Marshall Field, and the other builders of American business had made their careers long before they were operating on a large scale, before they were in the world's eye, because they had already fashioned and matured the use of their methods'. The matters most important for executive training as they will be taken up in the chapters which follow, have been grouped under these headings: 1. The Basis of Personal System 2. The Dispatch of a Day's Work 3. The Thinker in Business 4. Personal Dynamics 5. Personal Finance 6. A Man Among Men Where can be discovered a position which does not require in some measure the exercise of the powers here analyzed and described, which leading executives possess in high degree? The proprietor of a tiny factory or the junior executive who feels himself still far from the centers of business power can so ground himself today in the principles of management that the present position, because the man who holds it has grown in capacity, becomes a stepping stone to better things. This, the correct point of view, transforms clerkships into training 16 TODAY'S WORK AND BEYOND places for managerships, managerships into training places for corporation headships. The business career itself becomes, or it should be, a continuous apprenticeship. The policy of preparedness is the policy of foresight and vision. Its goal is "The Beyond" but it sees in "Today's Work" the essential steps to take now. EXERCISES How to Study In order to become personally efficient in business, mere longings or even high ambitions will not suffice; you must move forward ac- cording to a definite program. "Usually when a man falls short of success," says C. D. Peacock, President of the C. D. Peacock Company, "the trouble lies in some specific direction. Whatever the fault, I believe that men could edu- cate themselves out of it, if they really resolved to do so and went about it intelligently." Let us take up here the problem of how to study. The right method will not only greatly increase your mental output in pursuing the subject now under consideration, but prove of much benefit in studying the annual reports of your company, articles in business magazines, lectures delivered before your club, and the like. Set up a Specific Purpose for Your Study. With a sheet of paper before you, jot down answers to these questions : What is my chief purpose in studying this subject? What minor purposes have I in studying it? What benefits am I to derive? Do not destroy this memo, but keep it at hand so that in passing from chapter to chap- ter you may see the gradual achievement of your purpose. Supplement the Author's Statements with Your Own Thoughts. What you seek is not knowledge, mere facts, but a science of achieve- ment which applies to your own work. In reading these chapters you must be an active partner. "When you come to a good book," says John Ruskin, "you must ask yourself, 'Am I inclined to work as an Australian miner would? Are my pickaxes and shovels in good order, and am I in good trim myself, my sleeves well up to the elbow, and my breath good, and my temper?' Your pickaxes are your own care, wit, and learning; your smelting furnace is your own thoughtful soul. Do not hope to get at any good author's meaning without these tools, and that fire." Turn to a page that you have just read, page 14, for example. Take a second sheet of paper (use paper, for this encourages more definite thinking), then running down this page, line by line, note the various ideas of your own which supplement the author's state- ments. Take for instance: "A policy of preparedness, whatever the present position." What ideas does this suggest to you? When you have reached the last line, survey the two, the printed page and your list. In working out a science of achievement adapted to your own problems, what is your opinion of yourself as an active partner ? Get at the Essential Ideas. Ideas are not all of equal value; they form no plain but a series of peaks and valleys. Skilled readers like Carlyle, who was able to master a dozen books in a day, mount these peaks of thought in mapping out their intellectual journeys. Obedi- ent to no false notions of thoroughness, they seek only essentials. When these are found they should be pondered over, memorized, woven into your mind, in short, made your own. On a third sheet of paper make a brief outline of this chapter, numbering in order what you regard as the main ideas advanced, and indenting under each of these some of the minor points made. In reading later chapters use some system of marking the page which will accomplish this same result. For example, a single vertical mark along the margin may indicate that this particular part is worth reviewing, a double line that it should be thoroughly mastered, a triple line that it ought to be memorized. Or sentences summarizing important ideas may be enclosed in parentheses, or underscored, or doubly underscored. The particular methods employed are open to choice, but the principle is clear; to get at the heart of a book you must cultivate the sense for relative values. What this plan really amounts to is the requirement that you apply the principles of organization, with which you are familiar in business, to the work done by your own mind. Apply the Test of Experience to What You Read. You will have laid before you the experience of many executives. Nevertheless, what you really desire is not their ideas or the author's ideas, but solely those ideas which will bring results for you. Your judgment, calm, unbiased, judicial, must here be the test. As you read sentence after sentence, ask yourself such questions as "Is this reasonable? What has been my experience upon this point? Is this experience of mine extensive enough to warrant me in accepting, or rejecting, this statement now?" In later chapters it will be well to use some marking scheme, as an "O K" for things you distinctly approve, a "?" for things doubtful, an "X" for disapproval. Supposing you do thus mark a chapter today, would you upon X 8 TODAY'S WORK AND BEYOND rereading this chapter a year hence agree fully with the judgments now made? Why not? Answering these two questions thoughtfully will guard you against dogmatic and arbitrary judgments, from idle fault-finding or mere quibbling. As Sir Francis Bacon advises so admirably, "Read not to contradict and confute, nor to believe and take for granted, nor to find talk and discourse, but to weigh and consider." When you do weigh and consider, when you apply to everything you read the test of your own experience, you are forever free from servility and slavish adherence to authority. Such study develops in you open-mindedness, initiative, self-reliance, self-control qualities emphatically worth while to every business man. Put the Ideas You Have Gained into Use. Of what value, finally, is any idea to you ? Does it not depend upon what it will do for you ? If it will not serve you, if, in short, it will not work, then it is like dead stock on a retailer's shelves or capital sunk in out-of-date ma- chines. But the result-getting idea is like a mill constantly grinding fine flour. Here we have the test an idea's value is what it will produce for you but the only way to apply this test is through actual practice. PART II THE BASIS OF PERSONAL SYSTEM / have never known of a great business success without a personality. I have never known of a great personality without a system. HENRY C. LYTTON, President, The Hub. One should supervise details, but not let them absorb him. FRANK W. WOOLWORTH. CHAPTER III HANDLING DETAILS Have a well-considered system of doing things, definite and businesslike, not an imitation of something else, but one designed for your own use. JOHN CALDER, President, Inter- national Motor Company. Victim or Master of Details A man does not advance far in business before its burden of detail commences to press upon him. The typewriter has simplified correspondence, but it brings more letters. The telephone is a wonderful device, but it means more calls. The mail and express services, the telegraph, railroads, and steam- ships and within his organization, advertising, division of labor, large-scale production are all indispensable in modern business, but by their weight of detail they all multiply the burden of the man who must carry the enterprise. The first step in personal efficiency for the executive consists in learn- ing how best to handle this burden of detail. The day's routine is alike omnipresent, necessary, and yet insidious in its ultimate influence. The standardization of the day's routine, accordingly, affords the true basis of personal system. How J. Pierpont Morgan Handled Details The following incident in the life of the late J. Pierpont Morgan has often been misinterpreted with reference to the great financier's way of handling details. One day in the Federal Building, Mr. Lamb as opposing lawyer was cross-examining Mr. Morgan about the purchase 21 22 THE BASIS OF PERSONAL SYSTEM of $15,000,000 of Northern Pacific stock in 1901. The finan- cier sat on one side of the table ; the lawyer on the other. "How much did that stock cost?" "Haven't any idea." "How much did your firm make out of it?" "I don't know." "Well, did you make one million or ten million?" "I tell you I don't know. I don't attend to the details. I said 'Buy it.' Steele knows about the details ; he'll tell you about that!" Now it is important not to miss the point here. There are those who quickly read into the attitude of the financier an easy solution for the problem of details. Ignore them, scorn them as nuisances to be brushed aside ! Such observers over- look the closing sentence of the significant little dialogue. Although Mr. Morgan did not know the details, Steele did! Mr. Morgan when he made those remarks was a battle- scarred veteran of finance, the ripened product of a career of masterly administration. Years before, as a young bank clerk, he dug relentlessly into the details of each task with which he was entrusted. Now he selected competent and capable men to watch those details with close care so that he no longer needed to give them his personal attention. Business Knowledge Which Gets Down to Bed-Rock The man who at no time in his career pays attention to detail builds his house upon the sand. The storms of adversity which some time or other test every business structure will detect certain weaknesses in his organization and it will fall. "Although everything is being done on a larger scale," observes James Logan of the United States Envelope Com- pany, "there never was a time when the smallest details of a business had to be watched so closely as at present." The organizations which forge ahead today in the race for HANDLING DETAILS 23 business supremacy tolerate less and less, on the part of those connected with them, rash undertakings, "I believe's," and (^( "Guess so's." Their executives find it increasingly true that in order to carry their responsibilities they must possess a business knowledge which gets down to bed-rock. Bed-rock in this particular sense means the stratum of fundamental, unavoidable details which lies at the bottom of every great business structure. In order to do his own work well, it is essential for the executive to know the various elements and processes which enter into the business. It is a symptom of wasteful nervousness and inefficiency for a department manager to sharpen pencils, fill fountain pens, or run errands. It is just as wasteful for him to spend his strength on the minute steps of production, distribution, etc. But in order to arrange work for subordinates it is neces- sary to comprehend their duties. The executive sees the duties of his subordinates, not as they see them, but in the bigger relation of all the different cogs and wheels to the vast business machine. The essential thing is not so much that the chief should be able to put him- self in the employee's place as that he should be able to place the employees, every one, in their proper place. Systematic Care for Details That is to say, if the executive engulfs himself in a sea of details, it is fatal to the business and to his career; if he ignores them, it is equally fatal. The solution of the problem must come through standardization, proper distribution of respon- sibility, system. Details must be watched, but plans must be devised for watching them with maximum accuracy and mini- mum effort. This subject, it should be noted, is of even greater impor- tance for the executive who is on his way up a department manager or the head of a small but growing concern than 24 THE BASIS OF PERSONAL SYSTEM for the man already at the top of a great organization. For such an ambitious, growing man the following maxims may serve as a guide in his work of organizing and standardizing his activities : 1. However deep an immersion in details a man's pres- ent duties require, the business career permits a consistent rise until like Morgan, apprenticeship served, he may eventu- ally hold easy mastery. 2. The rate of his progress, whatever the stage of advance- ment already reached, depends largely upon his handling so efficiently the details which fall within his care either per- sonally or through wisely directed subordinates as to have leisure to do the big thing just above. A First Aid to the Memory the Memo The first rule for economy of time and effort is this : Keep the big things in mind, the details on paper. The man who does not "make a note of it" is an intellectual prodigal. He wishes to give his time and attention to the big things the $50,000 contract, the proposed trade advance in South Amer- ica, the new branch in St. Louis but scarcely does he con- centrate upon these big things when a forgotten house con- ference, a broken luncheon engagement, or a misplaced letter brings him sharply back to routine again. He needs a first aid to the memory. Such is the memo system; "make a note of it." The method is very important in note-making. Henry Ward Beecher jotted down incessantly upon scraps of paper and the backs of old envelopes the various points he wanted to remember; but however brilliant Mr. Beecher's sermons were made by this plan, the medium he employed is open to criti- cism. Paper can be arranged in such convenient forms that no one is justified in using odds and ends. HANDLING DETAILS 25 The Defects of a Bound Note-Book The bound note-book is, as a usual thing, unsatisfactory. If printed or indexed according to dates, it may prove con- venient as an appointment memo, or, indexed alphabetically, it serves well enough for names and addresses. But it soon becomes filled with useless, out-of-date material, through which one must thumb in order to find what one wants. Worse still, only by chance does one make notes of things in the same order in which he prefers to take them up later on ; yet notes which are bound are continually seeking to dictate the order in which they shall receive attention. What you want is consecutive order in doing things, not in making notes of things to do. The Loose-Leaf Memo System Loose-leaf, ringed note-books avoid inflexibility, the chief defect of the bound form. They can be obtained in a variety of sizes and styles. If you carry the book in your inside coat pocket, as is commonly done, you should avoid the larger and more bulky styles. It would be advisable also in selecting the size to consider its relation to a filing system. The book can easily be fitted with an index, according to date, as for appoint- ments ; according to alphabet, as for names and addresses and telephone numbers ; or according to subject, as in the grocery salesman's price book. It is possible, of course, to use two, or possibly more, indexes in one book. A simple leather folder, in which loose sheets may be placed, forms about as practical a system as any. The 4x6 size is easy to carry in the inside coat pocket and as the supply of sheets can be replenished at will, it need not be made bulky. The used sheets are kept on top, the fresh sheets at the bottom, with a blotter, trimmed to the proper size, as a parti- tion between them. Still more simple is the vest-pocket note system, merely 26 THE BASIS OF PERSONAL SYSTEM loose sheets of 3 x 5 paper carried in one of the upper vest pockets and replenished at need. When a note has been made, the sheet is placed in another pocket, awaiting its final dis- posal. The elaborate note systems which we often see have all, no doubt, their uses; but to many men a brief trial may prove that a few 3x5 cards slipped into the vest pocket con- stitute the most convenient method. Ruled and Printed Memo Sheets But "system" can be pushed a little further with advan- tage. In looking over old memos, a man often discovers him- self recording the same sort of information. Perhaps he is a contractor reporting upon jobs, perhaps a salesman turning in credit information. In any case, the frequent occurrence of certain items to be jotted down should warn him that standardization is possible, and lead to the adoption of a ruled or printed form. The makers of ringed books are able to supply from stock the forms prepared for day-books, journals, ledgers, sales records, expense accounts, pay-rolls, mortgage loan records, real estate listings, and the like. Forms devised for special purposes can be run off by any printing establishment. How to Dispose of Memoranda The Tickler Less difficulty usually is experienced in making memo- randa than in caring for them after they are made. Not a few men keep a note-book always handy, religiously jotting down items which they thereupon proceed to forget a quite cor- rect procedure, of course. But they then go one step further and completely ignore the memo. The memo ignored is worse than unmade, because it is deceptive. Use the tickler! The tickler is a little filing device, indexed according to dates. It has usually two sets of guide cards, the tabs of one being printed with figures for the thirty-one days of the HANDLING DETAILS 27 month, and the other with letters for the twelve months of the year. (See Figure i.) As each day and month pass, the respective guide card is set to the back of the box, out of the way. In order that nothing be filed for Sundays, it is well at the beginning of each month to remove the Sunday dates from the index. When one looks at his tickler each morning, that day's tab, with its contents of things for today, stands at the front of the box. Figure i. The Tickler This tickler is a convenient type. Its index is arranged for the week, but one numbered consecutively from one to thirty-one could easily be substituted. An Example of the Tickler's Use On March 3, let us say, General Manager Smith of the Jones Construction Company is out among the trade work- ing up new business and late in the afternoon returns to the office with these notes, his memo system being 3x5 cards carried in the vest pocket. (See Figure 2.) The tickler is ready. Mr. Smith dictates to Mr. Crowell a confirmation of an appointment with the representative of the Kalamazoo Lighting Company arranged by Mr. Barnes, then drops the card behind the March 15 tab. He files the second memo relating to a bid from Hedges and Company under the March 4 date, since he must take up that item with his assistant, Mr. Brown, who has charge of bids. He has already had a promise from Mr. Carson that specifications 28 THE BASIS OF PERSONAL SYSTEM from Hastings and Son will reach him April 27, so he drops that memo behind the April guide, to remain there until April i, when it will be set behind the tab number 27. The fourth memo, relating to a meeting he wishes to attend, he slips behind the March 29 tab. The general manager's mind is free to deal with big things since the details have been com- mitted to paper. A calendar may be combined with the tickler, the type shown in Figure I being especially convenient in this respect. It may be noted that the index shown here is designed for the days of one week, not for a month. If the other sort of index proves of more service, as is likely to be the case, it can easily be substituted. Simpler Forms of the Tickler Method The tickler here described is too elaborate for the man who has only a few details to handle. The desk calendar pad is more convenient for his purposes. This pad has a separate sheet for each day of the year, which in addition to such items as the day of the month, the day of the week, the number of days of the year passed, has blank space for memoranda. By simply turning ahead to the proper date, entries can be made for any day of the year. Such a pad is less flexible than the tickler, of course, in that items not attended to on the date specified must be copied in transferring them to later dates. An even simpler system, which to the man with a minimum of detail is yet entirely adequate, is the weekly reminder pad. One sheet serves for a week, and blank space is provided for each day's items. The Newspaper Man's Assignment Book The essential feature of the tickler system is the fact that everything which must be attended to on a certain day is HANDLING DETAILS 29 a 315 SV-&^4JU- Figure 2. Memo Cards for Tickler 30 THE BASIS OF PERSONAL SYSTEM through its use automatically brought to the attention on that day, and at no other time. The assignment book used by newspaper editors may be mentioned in this connection, since it is really a form of tickler. This book at the beginning of the year is blank, save for dates. But from day to day as the city editor learns of political conventions, social events, lectures, public hearings, and the like, he proceeds to note them in his book for the day DZPTS. 4 AND 6. MR. JONES 6/1 Provide 6 girls Dept. 4 Sale 6/5. V 6/1 Trans. 3 girls Dept. 3 to Dept. 4. 6/2 Investigate complaint silk Mrs. Harris on my desk. V 6/2 Get rating of Farmer No. 1 06 for advance 6/5. V 6/2 Cost of Parcels Post to Lamelton, L. I.? V 6/3 See why so many errors in Dept. 4. 6/3 See why so many returns in Dept. 4. V 6/5 See amount of sales made in Dept. 6 today. V 6/9 Why wasn't call made for wash goods last Thurs. at Mrs. James Brown's, 107 W. E. Ave.? V 6/9 Tele. Mrs. Brown and give reason, apologize. V 6/10 Why is Supply Dept. short on blotters? V 6/13 Mr. Jones wants entire Dept. b sales for 6/15. V 6/13 Arrange for one more cash girl Dept. 4, 6/13. V 6/15 Lights in Depts. 4 and 6 need cleaning. V 6/15 Better porter service for Depts. 4 and 6. V 6/16 Have windows repaired hard to raise. V 6/1 6 Mr. Jones wants fan in his office. V 6/17 Mr. Jones will give 3 girls for Receiving Room. V 6/17 Mr. Jones 10 girls for Mon- day sale on tables. V (a) JUNE 9, 1918 Get 5 girls for sale dresses next Sat. Dept. 29. Dept. 30 wants 3 extra stock girls today only. Dept. 36 needs 3 or 4 more sales- people Sat. See why paper chute BO dusty. See if Engineer repaired dumb-waiter 2nd floor. Tell carpenter to repair packing desk 2nd floor. Have all lights cleaned on 3rd fl. dirty. Ask Mr. Trinks about towel supply. Broken glass on table 2nd fl. repair. Miss Smith complains slow delivery Bronx. Are girls in Dept. 14 on time morn- ings? Advance salary tomorrow Miss Neil No. 1817. Trans, next Mon. Miss Ahl, 2149, to Dept. 36. Why wasn't call made last Thurs. for wash goods Mrs. James Brown, :o7 W. E. Ave.? Tele. Mrs. Brown and give reason, apologize. (b) Figure 3. The Memo System Devised by a Busy Department Store Superintendent HANDLING DETAILS 31 scheduled. Later on as these dates are reached, such items serve as assignments for reporters. This simple device, if used methodically, insures well-filled columns to the readers and frequently a valuable "scoop" to the paper. A Department Store Superintendent's Methods The system devised by E. A. Colby, who as superintendent of Lord and Taylor's large department store necessarily han- dles much detail, merits attention as another special form of the tickler. On his rounds through the store Superintendent Colby carries a small loose-leaf memo book, with a page re- served for each department; the number and the name of the department head appear at the top. ( See Figure 33. ) When a department head makes a request, the superintendent turns to the page designated, enters the date, the request, and the date when action is desired. Upon Mr. Colby's return to the office his secretary tran- scribes the various items upon sheets of the same size but dated consecutively, entering each item upon the second sheet accord- ing to the time when action upon it is desired. For example, Mr. Jones, called upon June I, makes two requests, one of them for immediate action, which the secretary enters upon the sheet for that day, the other for four days later, which is entered upon the June 5 page. Every morning, therefore, Superintendent Colby has before him the list of items which, accumulating upon this page for some time past, demand action today. (See Figure 3b.) By glancing at the sheets of later date he can tell at any time what items have been sched- uled for these days and make his plans accordingly. "My assistant uses the same system," adds Mr. Colby. 'Tn this way I am constantly aware of what he is doing, and should he or I or both of us be absent for any reason, anyone could pick up the sheet for that day and proceed with our work in good order." 32 THE BASIS OF PERSONAL SYSTEM The Tickler as a Business Getter The tickler method may be used in many other ways. Re- sourceful salesmen, for instance, utilize it in some such form as shown in Figure 4, to "establish a point of contact" with their prospects. Such a list, slightly modified in form, is per- haps even more useful to the assistant sales manager. Figure 4. Alphabetical Filing Information concerning various customers filed alphabetically in this way furnishes the sales manager a point of contact. Incoming Material Memoranda by no means exhaust the list of details to be handled by the executive. Letters, circulars, catalogues, books, and trade papers flow into his office incessantly. What is to be done with them? The one best way here, of course, is to use a filing system. Systematic filing, by means of which orderly storage and swift and accurate reference are secured for the daily accumu- lations of letters and records of all sorts, has been an indis- pensable part of the growth of modern business. The im- provement in filing methods has been almost incredible. HANDLING DETAILS 33 Systematic Filing a Matter of Course in Careful Business Our grandfathers jabbed the firm's letters upon hooks or stowed them away in some pigeonhole or drawer. It is scarcely more than a generation ago that the box file was intro- duced, with its cover opening like a book and a set of manila sheets tabbed alphabetically; and the flat file, much the same in style but more substantial and elaborate. Today the ver- tical file, papers arranged on edge in filing cases of wood or of steel built in standardized size and form, is practically uni- versal in all well-managed business houses, large or small. Progressive concerns regard it as an essential part of their work to devise a system fitted to their particular organization and to provide for its competent administration. All this should have a lesson for the executive in the man- agement of his personal memoranda. If system is good for the general organization, it is equally good for the work of the man who administers the organization or a division of it. Apply the Lesson to Your Own Work Yet many executives have failed to learn this lesson. Even when the correspondence, records, memoranda of the organi- zation, are handled with the utmost care and efficiency, their personal offices often exhibit astonishing lack of system. In not a few offices most of the material referred to above is simply piled up anywhere. The plan seems easy enough, but, judged by results, it is grinding hard. No one can afford to dig through dust-covered heaps every time he needs some- thing, and yet he cannot run the risk of forgetting that the information is available, or of ignoring it entirely because he is too lazy to hunt for it. The executive should have his own filing system planned according to a simple but complete scheme of classification he will probably find the alphabetic method most convenient and kept in a properly arranged vertical cabinet. A single 34 THE BASIS OF PERSONAL SYSTEM unit file, fitted with twenty-six guides, lettered alphabetically, will care very satisfactorily for the average man's personal correspondence, and perhaps leave space which is available for other purposes. The vertical filing cabinet itself may be had in either wood or metal, in colors to match the regular office furniture, in cap size or letter size, and in varying numbers of sections, such as single units, two sections vertical, or three sections horizontal. With this variety of patterns available, one need not encounter serious difficulty in fitting the vertical cabinet into his office equipment. The more bulky catalogues, together with books and such trade papers as are preserved, are preferably stored upon shelves. Bookcase units to match the files can be used if the additional expense is not too great. When shelves cannot otherwise be arranged conveniently, a small revolving bookcase often will solve the problem. The equipment here described enables the executive to keep the incoming material under strict control as it moves across his desk to its final destination a file, a shelf, or the waste- paper basket. The Idea File Mental Staleness and Its Antidotes The executive at the head of a progressive enterprise gives of himself freely. He scatters enthusiasm, bright sayings, point-driving stories, and big ideas here and there as he goes along. After a time the disquieting thought is apt to present itself that he is becoming stale; he has given but has not grown; he is in danger of mental bankruptcy. Since to continue effective he must be fertile in new ideas, it is well to inquire what system, if any, will aid him in meet- ing the demand. What shall he do, for instance, with the choice bits of information which come along daily? An advertising man finds in his mail an unusually pulling form HANDLING DETAILS 35 letter. An engineer sees in his technical paper an article on better results from coal. A works superintendent learns how a manager in Pittsburgh,by opening up a dead-end job, secures a higher grade of applicants. Shall such items, the results of much thought and costly experiment on the part of other men, escape him? With his own puzzling questions to settle, shall he merely say helplessly: "If I could only lay my hands on that article I was reading somewhere last month ." Digging through piles of trade papers in search of what he knows is in there somewhere, or vaguely trying to remem- ber its location, is poor business. Such material should be filed. The scrap-book has been discarded as inefficient, partly because it commonly has no scheme of indexing. The envelope system, in which each subject or topic has its particular envel- ope, is so time-consuming and laborious that few persons keep it going consistently. The vertical file, however, offers a device both easy and rapid. The Retailer Keeps Up to Date In one of the smaller cities retailer Norling, let us say, owns a department store which he wants to make the up-to- date store of that region. In thinking over the matter, he decides that the vital problems of his business center around the following topics : 1. Buying methods 2. Care of stock 3. Store equipment 4. Newspaper advertising 5. Direct advertising 6. Window displays 7. Salesmanship 8. Special sales 9. Handling employees 10. Mail-order competition 36 THE BASIS OF PERSONAL SYSTEM 11. Charge accounts 12. Delivery problems 13. Store leaks 14. Accounting Accordingly, he secures a single unit vertical file and with some pressboard guides indexes it by writing on the respective tabs the foregoing titles. When he next reads in his trade paper the details of how a Mr. Cowley in Nebraska is winning mail-order trade from a city competitor, he files the sheet under "Mail-order competition." In the same paper he finds repro- duced the prize-winning display window of a recent contest, and he slips this picture into "Window displays." His mind becomes more and more alert, because he is now an active seeker of ideas; and his business becomes more and more profitable, because he puts into service the most productive ideas of many merchants. The Idea File in Operation When the idea file is used extensively, the best way is merely to mark with a number only the articles desired, leav- ing to a secretary the clipping and filing. In case these items are found in a book from which it is not convenient to remove the leaves, the executive places the file number on a blank page which, for the time being, serves as a book-mark, and indicates by pencil on the margin the paragraphs or sentences to be copied. When the material preserved consists of miscellaneous clippings and quotations, a vertical letter file is appropriate. But suppose the ideas one wishes to save are his own, jotted down here and there on memo? The letter size file is then cumbersome, and a card index, 3x5, 4x6, or 5x8, corre- sponding to the size of his memo paper, is more satisfactory. This index, of course, will also serve for clippings, provided these are folded. Such a "brain box" is capable of aiding a HANDLING DETAILS 37 busy man considerably, and in order to make a start in its use he need only draw up a list of his problems which there- upon serves as the index. An Increased Supply of Facts A real estate operator, for instance, in trying to interest prospects in his surburban houses, encounters such objections as "can't afford to buy," "neighborhood undesirable," "too far from the city," "climate unhealthful," and the like. Worse still, he finds his regular sales canvass becoming stale. Accord- ingly, he takes a dozen guide cards, 4x6 size, let us say, to correspond with his memo paper, writes these stock objections on the tabs, puts aside another set of cards for "liveners," and places them all in a twenty-five cent card index. In reading the evening paper soon afterwards, he learns through the social columns that Mrs. De Style has just given a garden party to the smart set, whose names are mentioned. This item quickly finds its way behind the "Neighborhood undesirable" tab; it will prove itself good ammunition later. In a health report which comes to his attention soon after- wards appears a column of unusually favorable statistics; into the "Climate unhealthful" place this goes. One dull after- noon he digs into the tax records and the material there unearthed, a broadside in its strength of conviction, he slips behind the "Can't afford to buy" tab. A clever little story emphasizing the distinction between house and home, he files away as a "Freshener." What the real estate operator really does here is to build up an auxiliary brain. His index fur- nishes him definite and copious information which results in more houses sold. A Loose-Leaf Idea File An idea file can very readily be made of a loose-leaf note- book, properly indexed. Although as a usual thing this will 38 THE BASIS OF PERSONAL SYSTEM not prove so convenient as the regular filing case, it possesses certain advantages and is mentioned here chiefly to emphasize the fact that in form the idea file admits of considerable varia- tion. "It's almost impossible for me to remember the hundred and one plans I have ahead of me and to file a thing often means to lose sight of it," says D. B. Otzen, a progressive Chi- cago executive. "An every-day loose-leaf binder solved my problem. "The plans I want to use are condensed and rewritten on loose-leaf sheets, and filed. I use a separate page for each subject, containing both my own and the other man's new ideas. When a particular method has been worked out and adapted, I tear out the corresponding page so that only 'live' material stays in the book. "Thumbing through my 'brain partner' three or four times a month jogs up the memory. Here are the very plans I Subject Subhead Title Author Source . ... Date . Remarks : Figure 5. An Index Card for Books and This card when filed serves to introduce system into a man's reading. The filling out of the "Remarks" tends to impress the information upon the mind and the index is useful for locating articles when desired later. HANDLING DETAILS 39 want, when I want them. The binder saves my time, sug- gests new ideas, or shows where I have neglected opportunities that might make hundreds of dollars for us." An Index for Books and Articles A reader who wishes to preserve his trade papers in bound form instead of removing certain pages from each issue and filing them, or who consults books from which it is imprac- ticable to remove pages, may utilize a card index in keeping track of particular articles. A classification according to sub- jects, with whatever subheads may be desired under each, is drawn up in the same way as for the idea file. Here, however, instead of the material itself being filed, a 3 x 5 card is filled out by which the material can be located. (See Figure 5.) Conclusion The method of recording items for reference does not much matter the letter file, the card index, the ringed note- book, the loose-leaf scrap-book, the desk drawer, or even the vest pocket. But does he let valuable ideas slip away from him, or does he catch them and have them at hand when needed? That is the real crux of the problem faced by all men in business. The executive, whether the head of a house or a department manager and whatever his line of business, is in a stream of business-getting ideas. Beyond question he can use some form of brain-box with profit. While we have been setting into operation the various methods discussed thus far, what has happened to the detail which pours in upon our desks? In large measure it has already been cared for. EXERCISES Methods You Are Using It is well, first of all, to know what methods you are actually fol- lowing. Suppose you take stock, using Test Chart i for this purpose. THE BASIS OF PERSONAL SYSTEM FOR THE PURPOSE OF Making memoranda Caring for memoranda Disposing of incoming material Keeping tab on good ideas I Now USE Test Chart I. How I Am Handling Details In view of what this chart shows, do you succeed in keeping the big things in mind, the details on paper? Or do you find yourself trying to remember everything? Do you make embarrassing mistakes, such as forgetting social engagements? Do you have casual lapses of memory, such as letting slip the special order promised ? Are you nervous, haunted with vague feelings that something is being for- gotten? Most important of all, is your output limited because the handling of details is left unstandardized? Not Too Much Apparatus The array of apparatus found on display at the stationery store and described in the catalogues, circulars, and books issued by the manufacturers is apt to prove somewhat confusing. A man can easily overload himself even with pieces of apparatus individually good. Suppose then that we subject this assortment offered us for purchase to these tests : Simplicity: Can I easily get into the habit of using this particu- lar device? Is it simple to operate afterwards? Can it be readily carried or stored in my office? HANDLING DETAILS Accuracy: Can it be depended upon when used properly? What are the chances for making errors? Low Cost: What is its initial cost? Its durability? The cost for its required supplies? Adequacy: Does it meet my present needs? Can its capacity be expanded as I grow? Appropriateness: Does it dovetail with my other pieces of ap- paratus so that altogether my methods of handling details represent a coherent program? When it appears that as a result of these tests certain pieces of apparatus have been decided upon, let us list all these items in the second column of Test Chart 2. You may have selected two or more pieces of apparatus for filing purposes, or for the recording of memo- randa, etc., but for the purpose of grading, these will be considered in each case as a unit. Does what you have selected for the making Q w hH a W ITEM APPARATUS H fe H SELECTED H a W PU x a H W a M in u H I I w Q O Q NOTE-BOOKS TICKLER FILES (regular) IDEA FILE TOTAL CREDITS Test Chart 2. Standardizing the Apparatus for Handling Details 42 THE BASIS OF PERSONAL SYSTEM of memoranda represent simplicity to the 100 per cent degree? If so, place a figure 5 opposite "Note-books" in the column desig- nated "Simple." Continue in the same way with the other four tests, crediting each a 5, a 3, or whatever your selections really deserve; and then do likewise with the other three classes. A perfect score equals 100 points. How many credits have you? Should this grade not satisfy you, remember that it is subject to improvement at any and all times. In the school of efficiency the final marks are never entered once for all upon the books. A Final Warning! A fad is a good idea pressed too far. The recording and filing systems described above may become merely fads in the hand of a zealot who, without discrimination, makes a note of everything which falls under his observation and religiously files it away. One must keep perspective, and not forget the waste-basket. The things most worth filing concern themselves with standards. Last year as a result of several months' experimenting in your machine shop, you standardized the making of brass valves. Are these standards now your permanent possession, recorded and filed? In your office for six weeks this spring a high-priced systematizer was replacing rule-of-thumb with standard practice. Do you have this standard practice, or has most of it disappeared with the expert ? Do you work out with toil and patience a practical method of get- ting more from your time and effort, the one best way to hire a stenographer, equip your summer camp, mix dye stuff, or write letters ? Record it and file it! CHAPTER IV OFFICE EQUIPMENT The whole aim in standardising conditions is to arrange means to eliminate duplication of effort to make things easier to kill off waste to facilitate, in every possible way, C. E. KNOEPPEL Industrial Engineer. The Executive's Workshop The preceding chapter was concerned with certain me- chanical aids which have proved useful in the handling of details. The present chapter carries the matter of personal system a step further. The office of an executive should be a well-arranged work- shop, where, with minimum time and effort, a maximum men- tal output is attained. While it is true that this output, owing to its intangible nature, cannot be ticketed in the storage bins, it is none the less real. Its cost, like that of foundry castings or machine parts, varies according to the completeness with which the conditions incident to its production have been standardized. The recognition of this fact more or less clearly has been responsible for the marked changes in the various types of office equipment which have taken place during the last decade. The executives of the present day are introducing scientific management into their personal affairs, and surrounding them- selves with result-getting equipment which was unknown twenty years ago. Let us commence with the leading article of equipment in an office, its desk. 43 44 THE BASIS OF PERSONAL SYSTEM The Office Desk Several decades ago, as Harry A. Hoff tells us, it was the fashion to have an office desk of walnut or bird's-eye maple that stood five feet high, opened up like a safe, and had neat little boxes fitted in tiers of pigeonholes, not only in the desk itself but in either door. Filing cabinets were unknown and the worker at the desk had to keep within his immediate reach all the numerous letters, papers, and records relating to his work. After the invention of filing cabinets, the roll-top desk came into vogue. It was an improvement on its archaic prede- cessor, but even the roll-top desk was an unwieldy piece of furniture which afforded too many opportunities for the stor- age of papers and records in its cavernous drawers. Later came smaller desks with superstructures low enough to permit a clear view of other desks in the office. In the meantime as filing cabinets were perfected, less need existed for utilizing the desk as a storage cabinet. This consideration led finally to the modern flat-top desk, a type which is widely used in the business world today. The "Built-to-Order" Desk The desk is now regarded very properly as a business work-bench. Two different tendencies may be noticed as follows : First, there is the wish to utilize every possibility of the desk, every inch of its top, every corner of its drawers, for quick, first-aid reference. To secure such complete adapta- tion of desk to user it is often desirable to have the desk built to order. This does not necessarily imply blue-printed speci- fications for some skilled cabinetmaker. Various filing equip- ment manufacturers have saved us from such necessity by de- signing "desk units." (See Figure 6.) With dozens of com- binations available in fact, one company professes to offer OFFICE EQUIPMENT 45 8,000 possible combinations the desk-worker selects the units which most fully satisfy his requirements, in this way build- ing his own serviceable work-bench. Figure 6. A Desk Built to Order This represents one of many possible combinations, units being available for a variety of purposes. The Desk Cleared for Action The second tendency is the wish to have the desk clear, free from any accumulation or litter. To clear out the rubbish and start afresh with a clean desk constitutes a first step toward office system. Our favorite adjective for expressing neatness, complete- ness, and efficiency generally is "shipshape." On a ship every- thing must be stowed away in its place because the space is limited there is just room enough. When Rear-Admiral McGowan, "the business manager" of our navy, was trans- ferred from a battleship to the office in Washington, he applied the same principles of practical efficiency he had known on shipboard. "Why not," thought McGowan, "have an office as ship- shape as a ship? If there is wisdom in having a warship 46 THE BASIS OF PERSONAL SYSTEM stripped for action, why not a business office? Why not be just as efficient, just as free from lost motion, on land as on water ? "Roll-top desks and pigeonholes are the foes of the do-it- now impulse," said McGowan. When he became paymaster- general the offices were full of roll-top desks and he made a request for a new equipment of desks. When it was refused he sent for a carpenter and had him saw off the tops and pigeonholes. The result well, that may be described in the words of the private secretary of Judge Gary of the United States Steel Corporation, who has the same idea : "That table," said Judge Gary's secretary, "reflects the state of mind of my chief as he begins his day's work cleared for action." Its polished top bore pen, ink, and scratch pad, nothing more. The Desk Kept Cleared for Action Now that the desk itself has been rid of every junk-heap characteristic, the time is at hand to install a system under which accumulations will not accumulate. Material will come receive the proper attention then go! This system will increase the day's output and prove conducive to better sleep at night. "One at a Time, Gentlemen!" A litter of papers tends to create confusion, since atten- tion is divided among a number of problems, at the expense of all. Each paper in sight is a problem awaiting solution and it automatically prods the mind to solve it. But since the attention can be focused effectively upon only one thing at a time, every paper, every task to be done, should be dealt with as callers are dealt with one at a time and each in his turn. This requires system, which in this particular in- OFFICE EQUIPMENT 47 Figure 7. The Day's Work File stance is well represented by the day's work file. (See Fig- ure 7.) The Day's Work File The form of the day's work file requires no special con- sideration, but its function is vital in desk efficiency. A place is provided for every paper, where it cannot distract the atten- tion from other work nor fall under the gaze of curious eyes, yet where it is instantly accessible when wanted. Each problem in hand, every piece of work requiring time should be assigned a place in the day's work file and be put there to await its turn. Practically an appointment is made with each task. In this way a simple yet effective sys- tem may be evolved from the day's work file by anyone who is willing to make the preliminary survey. The basis of any system is analysis and classification. In planning for a day's work file, the executive must analyze his day's work. What sort of items day after day come to him for attention ? In what classes can they be grouped con- veniently? The answers to the latter question will serve as labels for the pockets of the file. 48 THE BASIS OF PERSONAL SYSTEM A General Manager Analyzes His Work The following classification, worked out by a general manager, may prove suggestive and adaptable to individual needs. Dictate Today. In this pocket he places every letter which is ready for dictation and which should be sent off promptly. Dictate When Convenient. In this pocket he slips all let- ters which can wait. When there is a canceled appointment or some delay, he reaches into this folder and dictates possibly a half-dozen letters meanwhile. Mr. Sheldon. Mr. Sheldon is the sales manager, so into this pocket go items pertaining to the selling department, including advertising. Mr. Reece. This pocket is set aside for the works man- ager, and it receives things pertaining to the production end of the business. Mr. Amster. This pocket is reserved for the office man- ager. Mr. Sheldon, Mr. Reece, and Mr. Amster have appoint- ments with the general manager every morning, and each of them keeps a similar file in preparing for his appointment. Mr. Olin. Mr. Olin is the systematizer. The general manager arranges special appointments with him from time to time, filing meanwhile in this pocket items which are to come up at the next conference. Directors. The directors meet once a month on the first Monday. This date is entered in the tickler two business days beforehand, which allows the general manager ample time to get the material here filed into shape for the meeting. Kick Meeting. The junior officials of the firm are in the habit of meeting the general manager every other week on Wednesdays, at conferences to which the name "kick meet- ing" has been facetiously applied. As the meetings are really constructive, this pocket receives various items other than objections. OFFICE EQUIPMENT 49 Pending. Matters temporarily held up are filed here. Sometimes it is a quotation which is awaited, sometimes the reply to a house communication or a letter. Specials. The additional pockets are reserved for what- ever miscellaneous matters may come up. Perhaps it is an after-dinner address, or the annual business show, or a mutual Figure 8. An Extension of the Day's Work File benefit association organized among his workmen ; in any case his secretary types a new label and pastes it upon some unused flap. When the matter has been disposed of, the pocket be- comes available for a new label. The foregoing headings prove adequate for this general manager and his position is important enough to draw a sal- ary running well into five figures. The point to be noted, 50 THE BASIS OF PERSONAL SYSTEM however, is the fact that the day's work when analyzed can be classified. Some men may prefer a more complete classification, with such a corresponding increase in pockets that a single file cannot well contain them all. In this case, a second file can be planned as a continuation of the first and kept in a lower drawer of the desk. (See Figure 8.) A Hold-Over File If the list of items held up for attention becomes too bulky for the day's work file, some sort of hold-over must be devised. If you have the well-arranged vertical letter-file described in Chapter III, the problem takes care of itself; but if that is not available, there are substitutes. The expansion envelope, large-sized and made of tough stock, is one substitute. Expansion envelopes in certain pat- terns have a complete index, pockets being provided for each letter of the alphabet, day of the month, month of the year, etc. The Deep Drawer Remodeled into a File A better solution consists in remodeling that big, deep drawer found in most desks. At present it is likely to be sys- tem's arch-enemy filled with business relics of every sort but by removing the two wooden partitions and fitting it out with folders, it can be made over into a handy vertical file. This drawer file can be indexed, of course, in whatever way one sees fit. With the various subjects in which we are interested written on the tabs, it serves as an idea file. In- dexed according to days and months, it becomes a follow-up. Fitted with twenty-six folders alphabetized, it makes a good letter-file. Labeled with the subjects upon which we work daily, it supplements the day's work file. OFFICE EQUIPMENT -j Results of Good Equipment and Layout With these appliances, simple though they are, as his aids, a man is able to hold the whip-hand over his work. He no longer goes through batches of papers in the old haphazard manner, but attacks them methodically. The various tasks on hand are there in the day's work file, each in its own compart- ment, some of them accumulating gradually the supplement- ary information required for their solution. The thing to do is thus made definite, specific. As each task is taken up it receives undivided attention. The Disposal of Finished Work Finished and unfinished work should not be allowed to intermix. If the finished work is left lying about one is tempted to putter at it, thereby losing that stimulus to the will which comes from dispatching a thing with finality. A system for outgoing material must be devised. Where the messenger service is good, one basket or tray may suffice ; each piece of matter dropped into the basket has its destina- tion indicated on a sheet attached and the office boy does the rest. In other cases, a series of compartments perhaps will be arranged, each labeled 'Tor Mr. Morris," "For Mr. Jones," "Outgoing Mail," etc. Sometimes wire baskets, the three-decker sort, are used for this purpose. The Matter of Small Wastes Many executives, anxious to get directly at their tasks, pay slight attention to their desk tools. In many private offices high-salaried men are tearing open letters with their fingers, sharpening pencils with a jack knife, writing with old, scratchy, steel pens their desks littered with miscellaneous supplies, and paraphernalia in the main unused because un- usable. 52 THE BASIS OF PERSONAL SYSTEM Take a lesson from the machine shop. Standardize the working tools. What articles do I find absolutely essential? A rigorous answer to this question insures the worker his full kit of tools, but rids him of a number of articles which now clutter his desk drawers and desk top. What size and quality of these articles are best? Do not leave to chance the kind of letter paper or ink or pencils that Miscellaneous Ruler and Scissors Extra Rubber Bands Pins Clips Stamps (Front of Drawer.) Figure 9. The Center Desk Drawer Partitioned When compartments have been installed, the contents are not thrown into confusion with every opening and shutting of this drawer, and the reaching for articles needed becomes a matter of second nature. you use, or keep changing the size of your memo paper. Their proper selection in the first place, by which is meant their standardization, solves the matter. OFFICE EQUIPMENT 53 A Place for Each Desk Tool Where shall these articles be kept? "A place for every- thing and everything in its place," the old motto taught us by our grandmothers, applies forcibly here for this reason: Not only can tools be secured more conveniently if stored according to some definite plan but, when they are kept regu- larly in their respective places, the process of reaching them when desired is rendered automatic. This results in a decided saving of the mental forces and business time of the execu- tive. The wide, shallow middle drawer affords a convenient location for the majority of desk tools. Special compart- ments in this drawer should be arranged for the things most frequently used, the partitions being made either of wood or cardboard. (See Figure 9.) It is also possible to secure from office supply houses a separate wooden tray, with nu- merous cups hollowed out like a money till, which slips into the shallow drawer. Until the location assigned to the various tools becomes second nature, it is well to label each com- partment. The Glass Desk Top as an Extra File The filing system puts papers out of sight, where they will not distract the attention from the work at hand. Certain data, however, are so frequently consulted that they ought, if possible, to be kept in full view. The glass desk top affords a solution. Or a small glass plate can be inserted in the arm rest of a chair, or the slide on a desk, and thus a place, perhaps even more convenient than the glass desk top and possessing some privacy, may be arranged for price schedules, cost figures, today's plans, or other data to which frequent reference is made. 54 THE BASIS OF PERSONAL SYSTEM An Architect's Office System An architect uses the large sheet kept under this glass top as the basis of his entire system. Each job as undertaken is entered in order on the schedule* sheet, receiving automatically as its number the number of the line it occupies thereon. (See Figure 10.) This number then becomes the key to every- thing pertaining to the particular job. Sketches and draw- ings, specifications, records of every kind are filed by this number, filling as many folders as may be needed, 3-1, 3-2, 3-3, etc. The schedule sheet as used in this office deserves its prominent place under the glass desk top. Figure 10. Schedule for Desk Glass This is the schedule sheet on which an architect keeps track of jobs ahead. (Reproduced through courtesy of System.) No doubt in every office certain material can be filed with profit under the glass top production graphs for works managers, season schedules for sporting page editors, tables of stocks on hand for merchandise men, and fundamental statistics for purchasing agents. But this space is too limited and too prominent a flag to the attention to permit its indis- criminate assignment. OFFICE EQUIPMENT 55 The Executive's Devices for Communication The executive requires some appropriate system for com- munication, and his desk to serve him well must bring this system close at hand. Five devices are worth mentioning in this connection: the buzzer, the telephone, the interphone or house phone, the dictograph, and the telautograph. The simplest to install is the buzzer; practically all electrical supply houses carry it and any person who understands the most simple electric wiring can install it. The location of the button should be within easy reach. If it is desired a signal code can be adopted. The Telephone, Its Use and Abuse The telephone is widely used and abused too, although the quality of telephone habits is steadily rising. In managing calls in the private office, there still exists room for improve- ment; too much time is lost in the maneuvers of secretaries who try to get the outside executive on the wire before their own employers are called. The telephone proves so convenient a means of communi- cation for house men that after a time its use for outside busi- ness is seriously interfered with. The interphone overcomes this difficulty since it is independent of the public telephone system. There are several types of these interphones on the market; with practically all of these the necessary connec- tions may be made without requiring the services of an operator. Dictograph and Telautograph The dictograph affords some distinct advantages in bring- ing business men into communication. Through its use an executive located at a central station may call several depart- ment heads into a conference over the wire. 56 THE BASIS OF PERSONAL SYSTEM The telautograph is a mechanical device by means of which a message written on one instrument is duplicated upon the receiving board of a second instrument located elsewhere within the organization but connected with the first instrument by electricity. Since the messages are recorded at both ends of the line, it furnishes a check upon the accuracy of inter- communications. Still other means of communication are the pneumatic tubes, the overhead carrier, and the dumb-waiter. Informa- tion concerning all these devices may be secured from their respective manufacturers whose advertisements appear in office equipment journals. It may be well in passing to em- phasize the value of a well-planned office memo blank and a smoothly working messenger service. The Importance of Office Layout It may seem now that the business man has his private office fully equipped. This is not yet true, for all equipment is merely a means to an end does it get results easily and quickly ? Much depends upon the way the equipment has been arranged within the office. Are the filing cabinets over near the door, requiring several steps to reach them? Does the telephone placed by the window necessitate more walking? Does one in consulting the dictionary or the trade catalogue step around the desk? Is the most frequently used desk tool kept at the rear, not the front, of the middle desk drawer? A Real Estate Dealer's Office Problem This problem was met and solved ingeniously by a real estate dealer. This dealer's office was conveniently connected with that of an insurance company with which he co-operated, and which permitted him at slight expense to make use of its reception room for his callers. He had one assistant, a young OFFICE EQUIPMENT 57 man just out of high school, who handled the stenographic and clerical work besides interesting himself in the business. The office layout as it then existed is shown in Figure na. The business fell into two distinct divisions : ( i ) the man- aging of buildings for their owners, the list of properties being kept in a 4 x 6 unit and all correspondence and other records in vertical letter file units of the same filing cabinet; and (2) personal ventures, the data for which consisted of papers kept in the pigeonholes and drawers of his desk or piled on the table, and of maps which when rolled stood in the corner but otherwise were lying on the table. In these personal ventures, the dealer would usually buy a plot, subdivide it, sell the lots at a profitable advance, and perhaps build houses on them according to the purchaser's specifications. Unless the specifications were intricate, the dealer served as his own architect, working out the plans while seated at the table. The real estate man received notice, however, that since the manufacturer, his other neighbor, must have more space, his present office upon the expiration of the year's lease would be cut down in width by eight feet. He was about to move, when he was persuaded to study his office layout problem. What an Investigation Revealed Investigation revealed that during two two-hour periods selected for study he turned to his bookcase zero times; he consulted his filing cabinets five times, in each instance the 4x6 card index unit ; he walked to the table and back eight- een times, several of these trips being for tools needed at the table but kept at the desk. He made four trips to the maps, plus a few others from file to maps or from maps to table or from desk, etc., to door. In two instances he averaged five minutes in hunting through a pile of house pictures for a certain set he wanted to show his visitor. In one instance he THE BASIS OF PERSONAL SYSTEM 1 J @) r |g o >/ / t s x r^ 5 O .b / /3\ x x / "* *c$ O O / vi/ N .C / x / 'I \ : a is a ~j c a I. / i^/^~\\ 1 / C>I O / / x x X / X M n IQ a / _ /^\ ' / ^ cj ^ <0 / ]!l / .; * ? z /' <-._/ Q ,i feS Q- | / / ^ / o \ 15 / . O _} M .C-3 S ^' c ^ (0 "J H o *j ^^^ Ul - (-1 ^H \ J" >. 1 O^ JT~ I- a s < A m oa * 6 \V ^ oil O o 1 t/l bi ^ J X~ N ^ v i C W 'C^ J I O \ \ ^ 4J " 2 \ ** \ / \ / x' ,' "^ fc"S \ f u ,'^ 1 \ / 1 J O 4 ^ 1 i-< rt S \ /' V s- -C x x X \*3 ' 1 1 T3 i i u K* H " "O " M nj u ' \ V x X ^ C ki -= S / \ x' \ 1 \, to *^ / ,x \ L L J ^"^ / X \ \ rr'o o E"^ / X S / ' S / ^ \ ^ a-c | 00 , ( 'aS " 3 C I o .?= / X \ \ 5 / x^ \ \ < 2 x-s S 1 3 S O f r" ^ \ I *x I JC > I ll to N Vx ' ^ u o *3 cc o tf W D _i a -- _j~ s \___ S c fl 4 u tl ll o 5 oca B z CD .2 ci u .c 2 Q 5 J^ e> In C n < AAOONI/A MOQNIAA HI OFFICE EQUIPMENT 59 took a drawer full of papers out upon his lap and spent eleven minutes hunting before he was ready to dictate. In four instances he thumbed somewhat thoughtlessly material pro- truding from the pigeonholes but did not carry the search further. The assistant during the same hours walked to the table three times, to confer with his chief; to the files six times, usually with reference to correspondence; and to take dictation, three times. The Office as Rearranged When these various trips had been plotted on a diagram and this compared with a second diagram showing how the office could be arranged, the real estate man was speedily con- vinced of the value of motion study and its importance to him. The new office, as rearranged after the partition was moved over eight feet, is shown in Figure lib. The table was moved into the corner near the desk, the bookcase was taken out and a small rack, sufficient to hold all the volumes, substituted. The filing cabinet was brought near the assistant, but the 4x6 card index so frequently con- sulted by the dealer was installed as a desk unit. The maps were taken from the corner and fitted into one of the regula- tion wall cabinets; any of them can now be pulled down at will and when not in use it is rolled up out of the way. The pictures once piled on a low box under the table now are attractively mounted on large display leaves, hinged so as to swing back against the wall. The architect's papers and drawings formerly kept on top of the table have been placed inside the large shallow drawer which a carpenter fitted into this table. A double desk replaces the old roll top affair, the typewriter desk has been turned half-way about and both workers use swivel chairs. "My rent has been cut down $350," comments the real estate man, "but that doesn't begin to represent what I've 60 THE BASIS OF PERSONAL SYSTEM gained. I can turn in my chair here and lay my hands on about everything I want. This deep drawer," pulling open the lower drawer of his desk, "has every lot and house I've got on sale filed there in order. This makes it easy to follow things up. The maps and pictures over there help me to get my sales talk across. And as for being crowded, we actually seem to have more room than ever." There is nothing particularly unusual about the real estate man's problem, nor does he claim in his present office arrange- ment to have reached perfection. He simply applied the principles of motion study to the conditions of his daily work. This everyone may do. Conclusion Standardization of office conditions by facilitating and expediting necessary operations makes increase of output possible. The business man who takes hold of the matter systematically can transform his office, whatever his line of business, into an efficiently productive workshop. EXERCISES Simple Forms of the Day's Work File In considering the day's work file possibly you may have been led to think it feasible only to men, like the general manager above men- tioned, with many things on their hands. Such would be an incor- rect view. The day's work file to be helpful need not have an elabo- rate index. One successful business man depends constantly upon a file whose index has only eight tabs and five of these are specials ! The three regulars are "Today's," "When convenient," and "Pending." The other tabs are labeled from time to time as special problems are undertaken. If you want to try out the day's work file before purchasing, take a discarded letter file of the old-fashioned book type, remove the leaf covers at both side and back, substitute for the alphabetized paper OFFICE EQUIPMENT 61 sheets an index of seven or eight stiff pressboard sheets, arranging these in such a way that the tabs will not overlap so as to hide each other, and provide yourself with a few plain gummed labels. An analysis of your work is next to be made. What sort of work are you doing? Can you classify it under some such heads as the general manager did, or more simply, as in the case just cited? These headings you now write on the gummed labels, sticking them upon the tabs in order. If the file does not work smoothly the chances are you have not correctly analyzed your work, although this, it may be added, need cause no particular concern since the classification admits of modification until the ar- rangement proved most practical has been secured. An Inventory of Your Desk Tools Suppose we now take an inventory of the desk tools, using for this purpose Test Chart 3. Complete the list of articles by writing in the names of whatever additional items the search through your desk reveals. Indicate by check marks your answers in the next three columns. Consider the matter with some care before checking the replies of the last two columns, since questions such as the following have to be answered: When reordering supplies, paper for instance, do you depend upon guesswork or upon exact information, recorded? Are you found wasting ten minutes'time trying to tie some package with a piece of string it required five cents of your time to save, or using for scratch paper an old envelope carefully preserved at a cost in time of four sheets of the regulation pad? Does the shallow center drawer contain all the small tools in con- stant use, or do these occupy various locations ? Are these tools kept in the most convenient order, or are the frequently used clips well to the back of the drawer, with the rarely used sealing wax occupy- ing a prominent place at the front? Every motion ought to count; and while the sealing wax no doubt is handy the clips ought to be more handy. Other Aids How about a dictionary and some reference books? In a certain publishing house, I found the editorial staff without a dictionary ! The business man unless his tastes are scholarly need not invest in Webster's International, The Century, or The New Standard, but at any rate some abridged edition of these deserves a place in his office. Each business also has its own special reference works, some of which at least ought to be accessible. 62 THE BASIS OF PERSONAL SYSTEM These are Stand- ARTICLES These I Have These I Require ardized Size, Quality, Loca- tion Pencils Pens Ink Blotters Ruler Erasers Clips Pins Rubber bands Twine Letter opener Scissors Paper-weight Colored pencils Pencil sharpener Penknife Screw-driver Library paste Drawing instruments Sealing-wax Stationery Sponge Scratch-paper Memo paper Cross-ruled paper Paper-punch Test Chart 3. An Inventory of Desk Tools A dictionary holder adjusted to the corner of the desk keeps th book ready for consultation and a revolving bookcase near the desk makes it easy to get at a number of books. However, much depends here upon special needs. Lack of space usually prevents our having within reach everything we might need, so we must give first plact OFFICE EQUIPMENT 63 to those we use most. To the business man this* means as a usual thing that the revolving bookcase must give way to an extra chair for callers. Lost Motion in Your Own Office How much lost motion can you eliminate from your office? Pos- sibly you say none at all, that everything runs smoothly as a clock. That was the way the real estate dealer felt about his office, until he found out. On a sheet of paper draw a diagram of your present layout. Use cross-ruled paper if you have it at hand, or rule a sheet lightly with pencil on the scale of one or two feet to the half-inch. Block in with heavy lines the various pieces of furniture, each in its relative loca- tion. Have someone record your chief movements about the office during several of what may be taken as sample hours. On the diagram represent these by dotted lines. What does this motion study tell you about yourself? When this question has had its answer, take a second sheet of paper ruled like the first. Block in with heavy lines the outside limits of your office, indicating the walls, door, and windows. On the same scale, cut out small paper squares to represent its chief articles of furniture. Now maneuver these paper squares around like pieces on a chess-board, until the best possible layout is discov- ered. An ideal solution may not be attainable, the lighting in one otherwise perfect plan being poor, while the arrangement which secures 100 per cent lighting entails two extra steps in getting at the files. Under careful manipulation, however, such difficulties can be minimized, though scarcely avoided in their entirety. Standard- ized conditions in this case mean simply the one best combination, not the ideal location for every unit in that combination. Very few offices are able to score 100 per cent in this layout test. CHAPTER V THE PRIVATE SECRETARY It is hard to get a man to let go of detail to grow up into control to think for subordinates who do not think. EDWARD B. BUTLER, President of Butler Brothers. John D. Rockefeller's Growth as an Executive The business man needs not merely an expanded capacity for handling detail personally but, as he advances, the sense of proportion as to the relative value of his own effort. The career of John D. Rockefeller, since it well illustrates this significant, though gradual change with respect to details, merits the close consideration of any business man who, like Mr. Rockefeller, would advance to high position. The refinery in which he first began the oil business was a small affair. The pushing of the business, the buying and the selling, fell to Mr. Rockefeller, and not a single detail believed to affect either profit or loss escaped his hawklike scrutiny. "He had the frugal man's hatred of waste and disorder, of middleman and unnecessary manipulation, ' Miss Tarbell in her admirable "History of the Standard Oil Com- pany" points out, "and he began a vigorous elimination of these from his business. The residuum that other refineries let run into the ground he sold. Old iron found its way to the junk shop. He bought his oil directly from the wells. He made his own barrels. He watched and saved and con- trived." The Standard Oil "Trust" The business under such watchful management expanded, and here egain Mr. Rockefeller showed his business acumen 64 THE PRIVATE SECRETARY 65 he expanded with it. "The entire business was placed in 1882 in the hands of nine trustees, of whom Mr. Rockefeller was president. These trustees have always acted as if they were nine partners in a business, and the only persons con- cerned in it. ... Below them, and sifting things for their eyes, were committees which dealt with the various depart- ments of the business." It has always been a tenet of Mr. Rockefeller's business faith to select as his associates the "big" men, the ones who had shown that they could succeed. The evolution of his vast business has been parallel with the devolution of much responsibility upon subordinates. Although the methods of organization changed often, this rule remained a law of the Medes and Persians, unalterable and unanswerable. The Headship of a Big Organization How did this new policy, gradually introduced as the business expanded, affect Mr. Rockefeller personally? Rocke- feller, himself, explains his policy as follows: "My methods of attending to business matters differed from those of most well-conducted merchants of my time," says Mr. Rockefeller, in his "Random Reminiscences," "and allowed me more freedom. Even after the chief affairs of the Standard Oil Company were moved to New York, I spent most of my summers at our home in Cleveland, and I do still. I would come to New York when my presence seemed neces- sary, but for the most part I kept in touch with the business through our own telegraph wires, and was left free to attend to many things which interested me among others, the making of paths, the planting of trees, and the setting out of little forests of seedlings." At first, Mr. Rockefeller handled details by attending to them personally; afterwards he handled details by delegating them. 66 THE BASIS OF PERSONAL SYSTEM The Executive's Chief Business If men are to advance, they must learn to share tasks, for advancement in business means assuming control of ac- tivities too large for the individual to swing unaided. The man at the head of a business, or at the head of a department, becomes necessarily an organizer. He learns to shift the burden of detail upon subordinates and to systematize routine so that everyday results are made automatic. Organization is one of the best ways to discipline de- tails. The executive in his desire for maximum accomplishment is thus called outside his private office to study his organiza- tion as a whole. If his desk is overcrowded, if he finds that in spite of system and speeding up, the day's routine leaves him no time for constructive effort, his organization is im- perfect. (See Figure I2a.) The same personnel, when dif- ferently organized, he may handle with effectiveness and find a little time perhaps in consequence, to cultivate an ac- quaintance with his golf club. (See Figure i2b.) This is quite as it should be. "The executive's chief business," says President Ripley of the Santa Fe, "is to organize, deputize, and supervise." The Utilization of Assistants Of special importance among the subordinates who free the executive from detail is the private secretary. His posi- tion is comparatively new, an outgrowth of large-scale busi- ness. Executives found after a time that a variety of minor matters could be delegated to confidential and properly quali- fied assistants. So excellent upon the whole have been the results attained that it is very common among progressive concerns to find private secretaries whose day's activities are approximately as follows : THE PRIVATE SECRETARY 68 THE BASIS OF PERSONAL SYSTEM The Duties of a Private Secretary The secretary finds awaiting him upon his arrival all mail for the executive office. This he opens and sorts, redi- recting part of it to other departments, filing away tempo- rarily such letters as require the securing of information before reply, answering all the minor communications, and placing upon the chief's desk those he deems sufficiently important or personal. Even with the latter he assists by preparing digests of their contents or securing from the files the record of whatever previous correspondence may be needed. The reply itself he very commonly writes out in full from the briefest directions given by his employer. This method of handling correspondence, the executive learns, is a great time- saver. Often the secretary prepares the materials for a banquet address or the annual report of the corporation; sometimes he even writes the address or report in full. He does the editing and proof-reading for sundry articles; or works up from such sources of information as trade papers, govern- ment reports, current magazines, or reference books in the library the answers to all sorts of questions. The average executive has reason to appreciate a secretary who is able to do such literary and research work, since otherwise much of it would be left undone. The secretary meets the callers, ushers in some of them to his chief's presence without delay, wards off tactfully those who are unwelcome, refers others to the proper departments, attends to many inquiries himself, and makes appointments for others with his chief. The secretary takes care of telephone calls, records ap- pointments and sees that they are kept, installs and keeps in condition the proper filing systems, follows up orders, and maps out the day's work. The secretary of a well-known insurance president remarked, "There is practically no business of Mr. McCall's that does not pass through my hands." THE PRIVATE SECRETARY 69 The Money Value of Secretarial Services The modern executive recognizes such services as indis- pensable. It is said that Vice-President Tarbell of the Equi- table pays his secretary a salary of $12,000 per year, and that the late H. H. Rogers valued his secretary's services at $30,000 per year. No doubt these two secretaries, and others who draw similar salaries, are well worth such amounts to their employers. But the point to be emphasized is that it is sound economy whatever the scale of the business to shift routine duties from the more expensive man at the top to a subordinate whose time is less costly. Each minute of the working day of an executive drawing $5,000 a year costs 4.6 cents. If he spends fifteen minutes in the routine of opening the morning mail, it means 69 cents a day, $4.14 a week, $207 during the business year. If this man wastes thirty minutes hunting for some cor- respondence which should have been filed and promptly pro- duced by a clerk; another thirty minutes on unimportant material which could readily have been attended to by some- one else; a third thirty minutes answering correspondence of a merely routine nature; a fourth thirty minutes hunting for telephone numbers, waiting for calls, or answering un- important calls; a fifth thirty minutes in ridding himself of certain visitors who should have been diplomatically side- tracked at the start, his concern loses thereby $6.90 daily, $2,070 annually. The Secretary Promotes His Chief's Efficiency This loss as computed by no means represents fully the injury sustained. The various annoyances to which an execu- tive under the above conditions is subjected break up the day, distract the attention until it becomes difficult to concentrate, in short, put a damper upon creative work. Worse still, the executive thus annoyed and yet feeling, as he should, that the 70 THE BASIS OF PERSONAL SYSTEM firm pays him for constructive work, is apt after a time to develop as a sort of shield a caustic tone toward callers, a curtness over the telephone, a slowness in answering com- munications which costs his firm dear in terms of lost good- will. As a means of eliminating losses of money or good-will and at the same time enlarging the executive's output of crea- tive work and increasing his ability to co-operate, the private secretary is invaluable. The degree to which the executive is able to utilize the services of the secretary often measures his own advancement or undoing. Selecting a Secretary The "Hire and Fire" Policy The importance of the secretary's place in the scheme of things demands that care be exercised in his selection. If the "hire and fire" policy works out badly in factories, as all progressive employers agree, it is even worse when practiced in the private office, for the secretary brought in thus on impulse may be little able to perform the valuable services required, and on the other hand, owing to the confidential nature of his duties, his summary ejectment may prove very unwise. It is a particularly reckless form of the "hire and fire" policy to leave the matter to some friend or employment bureau or secretarial school. Temperament in the executive as well as in the applicant is too important to permit the opinion of a third person to be final. The best way is to make the selection according to a systematized procedure. The executive who sets out to stand- ardize the methods of hiring used by his concern, including his own methods in the selection of a secretary, thereby treats applicants fairly since such methods place employees where they are best fitted to work. He promotes the interests of the firm because in the long run such an employment plan THE PRIVATE SECRETARY 7 ! secures the best possible services for a given cost. And he advances his own interests since, as John Wanamaker so well puts it, "the degree and height of his mastery and success accord absolutely with the number and efficiency of the staff which rises, in decreasing numerical strata, to support him- self at the top." Where to Find Suitable Applicants In securing applicants such possible sources may be em- ployed as want advertisements, particularly those placed in the best mediums, employment bureaus of high rank which specialize in commercial positions, and commercial depart- ments in the public high schools, business colleges, secretarial schools, colleges and universities, especially those offering commercial training. The promotion of some present em- ployee, one of the best of all methods, will be mentioned later in another connection. The Secretary's Qualifications The qualifications to be sought in the applicant vary somewhat with the position, the salary to be paid, etc., but the following may be mentioned as important : Education: What has been the applicant's schooling? What can be said of his general knowledge? Professional attainments: Is he an efficient stenographer? a neat, rapid, and accurate typist? Does he understand filing systems, and the use of such office equipment as adding machines, duplicators, and addressing machines? Has he a thorough knowledge of business correspondence ? Does he know something of bookkeeping, advertising, business man- agement, and of subjects or sciences particularly connected with our own line of business? What has been his experi- ence? Dependability: Is he a person whom we could take into our full confidence ? Would he be discreet, incorruptible, loyal? Could his memory and methods of recording be 72 THE BASIS OF PERSONAL SYSTEM depended upon for such everyday details as appointments, the keeping of promises, producing papers when wanted? Initiative: Is he able to think for himself? Has he energy plus imagination, or would he wait to be told what to do and stop at that? Can he look ahead? Is he able to stimulate others and direct them as well? Tact: Does this applicant possess sympathy, courtesy, politeness, patience, diplomacy? In handling our corre- spondence and our callers what sort of an impression would he make ? Would he be able to get along with our own people? Personal traits: How about his voice, his facial expres- sion, his manner of standing or sitting, his way of speak- ing? Is he personally neat and cleanly and of some refine- ment? Has he good health? Teachableness: Would this applicant be willing and eager to learn or does he think he knows it allr Would it be effort wasted to try to get him to improve or has he the power of growth? Interest in our business: Has he real interest in this line of business, in our firm in particular, and in his prospective employer's personal needs and requirements? Would he study this position and make our interest his own, or does he look upon it merely as a means of filling in time, a pos- sible livelihood? The Rating of the Various Applicants The answers to some of these questions can be secured very readily from the preliminary letter of application, others from the references submitted, many from the personal in- terview, while for certain others written examinations should be devised. The tests devised by the United States Civil Service Commission for the selection of stenographers will prove helpful in this connection. The decision as to which applicant is to be preferred de- pends finally upon his rating as a whole. One applicant will have shown himself unusually proficient in taking dictation, another has been found exceptionally qualified in filing sys- THE PRIVATE SECRETARY 73 terns, or handling callers, or thorough knowledge of the busi- ness, etc. The employer should not expect an applicant to grade 100 per cent in all respects such a prodigy is not to be found but should tender the position to the one whose abilities most nearly meet the requirements. Standardized Conditions for the Secretary Upon taking up his new work the private secretary should be provided with the equipment which renders good work possible. The same rule applies to the secretary's position as applies we have seen to the office conditions of the execu- tive, namely: to secure superior output, provide standardized conditions. A typewriter desk into which the machine drops when not in use, a holder for the stenographer's note-book, a comfort- able chair, good light, a supply of stationery, carbons, clips, scissors, and the like indicate the more common requirements. In addition there are certain supplies which, while they may not be termed essentials, yet make for increased effectiveness. Should the letterheads be stored in one drawer, the envelopes in another, the carbon paper in a third, and the carbon sheets in their original box or, what would amount to much the same in the end, all piled into the same drawer, the assem- bling of these materials in the typewriter entails much waste effort. A desk drawer fitted with partitions, inclined toward the rear, keeps the sheets separate and speeds up the process of assembling. Owing to the mass of details which comes to the private secretary for attention, he can very well use much of the equipment, such as the day's work file and the tickler, dis- cussed in previous chapters. In fact, not a few private secre- taries are really executives, with stenographers to take their dictation and filing clerks under their direction. Needless to 74 THE BASIS OF PERSONAL SYSTEM say, such secretaries can profitably be supplied with the neces- sary equipment which aids in systematizing an executive's work. The Secretary's Desk with Respect to Office Layout In arranging the office layout, the secretary's desk should be carefully fitted into the scheme of things. Executives often prefer that the secretary have a separate room, con- nected by buzzer, telephone, and door, in order that the annoy- ance of the typewriter may be removed and visitors may be received in privacy. For those who do not follow this plan, the arrangement of the real estate office shown on page 58 is worth noting. With the office arranged in this way, the secretary on his revolving chair is able to turn easily to- the typewriter or the double desk. This plan provides consid- erable working space and a convenient arrangement in hand- ling telephone calls or dictation. Training as the Source of Competent Secretaries It was a far-sighted corporation head who not long since remarked, "We can't hire executives ; we have to grow them." His remark applies with considerable force to the private secretary. The secretary perfectly trained and competent to perform at once his most valuable services is simply not to be hired. Frequently it will be found that the qualifications men- tioned on a preceding page are possessed in the main by some above-average stenographer already in the firm's employ. She is, let us say, an excellent typist, rapid and accurate in taking dictation, absolutely dependable, ambitious, has grad- uated from the local high school and during her four years' tenure has shown herself most loyal to the interests of our firm. Would it not be more feasible to promote her to this secretaryship than to seek elsewhere? THE PRIVATE SECRETARY 75 The Best Possible Results from a Given Cost "Impossible," some will claim. "We invariably employ graduates of secretarial schools at salaries of $35 to $40 per week and they certainly make poor enough secretaries, as our experience goes to prove." Very true, no doubt. In some executive offices even $90 per week would be far too little to pay for secretarial services. Nevertheless, the man whose duties and whose importance in the organization justifies an appropriation not exceeding $20 a week for secretarial assist- ance often insists upon a $/5-a-week secretary. No others, he claims, are competent! The point here insisted upon is not that secretaries be poorly paid, far from that. But every executive is justified, according to his position, in making a certain expenditure for secretarial services and no more. It is his duty to secure maximum results within that sum. Very frequently this implies that the above-average stenog- rapher should be promoted and afforded some little training for her new position. A Special Training Course There are a few excellent books devoted to secretarial work, and the study of their specific directions and sugges- tions simplifies the problem of training. There is such a thing as the professional spirit which, once we have it, leads us on, makes us grow. In the present instance such a spirit once stirred into being by the study of these secretarial books* may after a time transform the promising beginner into a com- petent secretary. Books on secretarial training may very well be followed by works on filing and indexing. The student of such works does not need to be told that accuracy in filing is important, and is able within a comparatively short time to develop a competency with filing systems considerably beyond that which the employer alone would be able to insure. With y6 THE BASIS OF PERSONAL SYSTEM such knowledge the secretary can aid materially in working out the form and arrangement of the employer's personal files. Handling Correspondence Without Dictation The goal commonly set for the secretary by his employer is the ability to handle correspondence without dictation. Too often the employer discovers, however, that such correspond- ence is so error-laden as to be unsafe or trite and exasperating with its customary "Your letter of the I3th received and contents noted," and "Hoping to be favored with your reply." While the word for word dictation by the executive may at first seem the easiest solution it is really no solution at all ; the problem is to fit the secretary to take hold for himself. The principles upon which effective correspondence depends have been presented in several excellent texts and the study of these, even the reading of one of them, cannot fail to secure improvement. The articles devoted to sales correspondence in the current magazines will be found helpful. This part of his training provides the secretary with standards for corres- pondence, numerous directions as to how these standards are to be applied, and stimulus to make such applications daily. A Knowledge of the Company's Business The business letter, however, depends not alone on the secretary's knowing how to write but also on his knowing what to write about, in other words, his knowledge of this particular business and its daily operation. An employer complained of a certain private secretary because "She doesn't somehow get into the swing of things." It was discovered later that during her two years' employment she never went further into the plant than the first floor of the office building in the front yard. The purchasing, the advertising, and the accounting departments on the second floor, the twenty-acre plant with its belching furnaces and tall chimneys, were to THE PRIVATE SECRETARY 77 her a closed book. She was unable to get into the swing of things because she was never in touch with the business. It may seem far-fetched to include a trip through the establishment, with an explanation of its details of operation in the training of the private secretary. Yet this is a good beginning. This training can be excellently supplemented by a book which treats of the particular industry; by the cata- logues, booklets, and other material prepared by the firm's advertising department; and by the executive's instruction as he works through the day's routine Instructions by the Executive The last is by far the most important in illuminating the business and its particular requirements, and it need not be at all formal and time-consuming. For much of it the executive need only do his thinking aloud. Since the secre- tary's most important duty concerns correspondence, the chief purpose of the instruction will be to teach the secretary to handle the bulk of the correspondence himself. "Here's a customer who sets up one of our No. 2 Oil Kings," declares the executive, showing the secretary a letter he has just received, "only to find the fly-wheel broken to pieces. He'll be pretty anxious, don't you suppose, to get a new wheel, the same number R 3249, so he can get right to work? We'll express him one, at once." Executive dictates letter to customer. "Now this order ought to go over to the shipping depart- ment this morning," he continues, "so they can get started on it." Dictates order. "But what's going to become of our profits, Mr. Smith," he inquires, "if we let the railroad companies break up our machines like that? I guess you'd better make a copy of this letter for Mr. Jones, our claims man." A day or two later the executive says, "Here's another 7 8 THE BASIS OF PERSONAL SYSTEM one of those complaints about an Oil King damaged in transit ; this time it's this gear-wheel," pointing to a diagram of the engine in which its parts are numbered, K 3056. "Let's see, how'd we settle that other case?" he inquires in perplexity. The secretary volunteers most of the information, the execu- tive supplying a detail here and there. "Yes, yes," the manager says, "that's what we did. I guess you can handle this in the same way, yourself." The secretary with a new sense of responsibility, consults certain carbons in the files and after a time has an excellent letter waiting to be signed. "This letter to Thompson is all right," comments the executive when he comes to sign it. "That's the way to talk to our customers." Then he adds, "How about shipping and claims?" The secretary is much confused. In his enthusiasm over the letter he has overlooked these entirely. "Thompson out there on his farm wouldn't care much for your good letter unless he got that wheel, would he, Mr. Smith?" The executive laughs heartily; then he adds with seriousness "and as for the claims, if the company lost its profits it couldn't pay our salaries." Thus the training goes on. The Developing of Initiative and Responsibility "But," someone objects, "such a nuisance! I could dic- tate the letters myself with far less time and trouble." True, but shortsighted. The real issue here is not this one letter but tomorrow's letters, next week's letters, that interminable procession of letters which the secretary once trained can handle but which otherwise will tie the executive to his desk. From this, the correct point of view, training is as capital invested at compound interest. Accordingly, the executive for a time keeps the secretary's THE PRIVATE SECRETARY 79 work under scrutiny, looking for errors and making sugges- tions particularly at the time of signing the letters. Mistakes will appear, and some letters, even under the reasonable lee- way allowed every subordinate, will have to be retyped. Yet the scrutiny can gradually be relaxed. Before long his secre- tary is answering letters on which he has jotted, "Xpress K 3128," "O K," "Refer to Childs," or "Same terms as usual," and after a time even these brief directions are ren- dered unnecessary. It is the sense of responsibility placed upon the secretary, the knowledge that within reasonable limits his discretion has full sway but that the employer has confidence in his judgment, which stirs his initiative and makes him feel competent to render most valuable service. The Complaint that Secretaries Do Not Think "But," the objector interposes once more, "all this is as- suming that the secretary is unusually brilliant. Now in my experience, while I would not go so far as to say they are without brains, the average secretary does not think. Think ! think!' I have had to tell one secretary after another." Let us analyze this complaint which has been voiced in one form or another by many executives the detailed and reiterated directions these secretaries require, their lack of in- sight into the day's work. It is granted that no brief could be maintained for all private secretaries; their ranks have been invaded by the incompetent and all are human. But as a rule the failure to get things done as the executive wants them is because he does not know himself what he wants, consistently. It is the lack of system, of standards, which is really to blame for the tangle, since the whim of the moment, and not a clear-cut standard, determines whether the typing or the choice of letterhead is to please him. In order to satisfy the unsystematic man the secretary must be a mind reader. 80 THE BASIS OF PERSONAL SYSTEM The Unsystematic Man Hard to Satisfy Many secretaries, it is true, are adept in this art. When the look of boredom on the employer's face has darkened into just the proper shade, they deftly interrupt the caller and maneuver him towards the door. When the employer comes in full of "pep," they bring out loads of work, but in sizable lots; when he is on "fag ends," they side-track the irritating complaint. To get the most benefit from a secretary's services the wise executive will himself lead the way in co-operation. By utilizing various short-cut methods and standardizing his own part of the team's procedure he can save the secretary's time and strength; this means economical operation. William A. Field Defines Executive Success Some business men, it is true, do not wish to standardize *heir own operations, just as some others do not know how to delegate work. Yet it is precisely the exercise of these two arts, delegating and standardizing, which is the execu- tive's business. "Analyze the career of the successful business manager," says William A. Field of the Illinois Steel Company, "and you will find that he has done two things : by elimination and selection he has fitted competent men to the places at which the work focuses; by system he has so shifted detail to the shoulders of subordinates as still to keep the essential facts under his own hand." A Training School for the Coming Executive There are few positions, indeed, which do not afford some opportunity to practice the two activities specified by Super- intendent Field as the essentials of executive success. Even the young manager whose force is but a corporal's guard, even the beeinner in business who dictates a few letters to a THE PRIVATE SECRETARY 8l stenographer, has the opportunity of fitting people to places where the work focuses and of shifting detail to the shoulders of subordinates so as still to keep the essential facts under his own hand. The man who trains himself to work effectively with but a single subordinate is at the same time developing his power as an executive. The vast bulk of tasks, termed collectively the firm's business, he later will become able to subdivide and delegate as he now does the work heaped upon his office desk. The principle is simple, yet its influence is most far reaching upon the executive's daily accomplishment and his ultimate achievement. EXERCISES The Waste of Petty Annoyances A drizzle of petty annoyances always irritated the late Cyrus H. McCormick, although he could stand undaunted under a cloudburst of adversity. Superfluous words in a telegram, a bill a few cents too large, the loss of a carpet slipper, were things which made him storm. "He made more fuss over a pin-prick," declared one of his valets, "than he did over a surgical operation." Do the petty odds and ends of business get on your nerves? Is all the energy with which you come down to the office used up on trifling matters, leaving you irritated with yourself and all your co-workers ? Are important initiatives and decisions side-tracked and lost sight of while the devil of routine rules you with his iron fork? Delegate to subordinates these routine tasks, and hold the sub- ordinates responsible for their stewardship. Important and Unimportant Tasks In carrying out this plan the executive is called upon to distin- guish between important and unimportant tasks. As William James points out, what makes a thing important or unimportant to a man is something which no rules can teach in advance. Still, a pretty safe guide is to keep your chief purpose in mind for use as a stand- THE BASIS OF PERSONAL SYSTEM ard in testing all these possible tasks. The more vital the connec- tion between your chief purpose and a certain task, the closer you should grip that task as something to which you must personally attend. The more remote tasks are delegated to subordinates, the far remote perhaps to the waste-basket. On a sheet of paper draw up Test Chart 4. Selecting some typical day's work as a sample, fill out the first column in chronological order; and then the other columns to correspond. THINGS I DID PERSONALLY FROM 9 A.M. TO 5 P.M. OF THESE, THE FOLLOWING SHOULD HAVE BEEN DONE BY (Indicate by check mark V) MYSELF CO-OFFICER PRIVATE SECRETARY OTHER SUBORDI- NATE Test Chart 4. Whose Work? In looking over the last column but one of this diagram, in view of the check marks there shown and your own value to the company as represented by your salary, how much per week are private secre- tarial services worth? Add to this the indirect losses specified on a preceding page, and what is the sum total ? This amount represents with fair accuracy the expenditure justi- fied in your case for secretarial services. The problem next to be THE PRIVATE SECRETARY 83 solved is how the secretarial services purchased by this sum can be employed most productively. For this purpose Test Chart 5 has been devised. It contains ten questions, to each of which a possible credit of ten points attaches. Consider your methods critically as you answer these questions one by one, and credit yourself in the column at the right a 10, a 5, a 2, or whatever your actual practice in the light of standard practice will justify. A perfect score is 100 points What do your credits total? QUESTIONS 1. Do I know how to delegate work ? 2. Have I organized thoroughly the duties of my pres- ent position ? 3. Is my work such that the quality of secretarial ser- vices makes an important difference in results? 4. Do the means which I employ secure desirable appli- cants ? 5. Are my various selection tests reasonably certain to secure the applicant best qualified ? 6. Does my secretary work under standardized condi- tions with respect to equipment ? 7. Do I know consistently what I want in secretarial results ? 8. Is my secretary assuming the responsibilities he should ? 9. Am I cultivating the secretary's initiative? 10. Were I my secretary would I hold my employer's habits and methods of work in high respect?. . . TOTAL CREDITS Test Chart 5. Securing Best Results from the Private Secretary CHAPTER VI A SERVICEABLE MEMORY The test of a good memory is that it shall be serviceable; that the mind shall be furnished and ready with just the sort of facts which may be needed, and free from the encum- brances of useless, irrelevant, or distracting material. CARL EMIL SEASHORE, Professor of Psychology. The Tool Which Is Used Most of All The executive may lighten the burden of details by means of ingenious mechanical aids; he may standardize to a high degree his working conditions; he may surround himself with able co-workers; yet there will remain, after all, certain things which must be entrusted to memory. It is safe to say that the business man's most immediate need is a serviceable memory which means a store of useful knowledge always at hand. Such a memory, whether material or acquired, is an invaluable aid to success. "In the practical as in the theoretic life," declares William James with much truth, "the man whose acquisitions stick is the man who is always achieving and advancing, whilst his neighbors, spending most of their time in relearning what they once knew, but have forgotten, simply hold their own." The Memory that Gets Results The great importance and obvious utility of a "good" memory have led many otherwise sensible men to foolish extremes in their pursuit of the kind of memory that they most admire. To the man who fails to remember names and faces, a remarkable facility in greeting mere acquaintances of a dozen years ago by name and station seems the summum 84 A SERVICEABLE MEMORY 85 bonum of recollection. Many politicians have gained popu- larity and fame because of such readiness; William Jennings Bryan, whose memory is both colossal and exact, is a shining example of this type. Henry Clay had the same sort of memory. The men who can learn things by heart are another source of envy to the average executive. He reads with wistful attention how Macaulay could repeat the "Lady of the Lake" after hearing it read once and how other literary geniuses Knew the great uncles of Moses, And the dates of the Wars of the Roses. The vital question in such cases is not: "How did these men do it," but "What good would such a memory do me?" The lesson to be learned is that what these men knew and remembered related to their life-work and interest and was relevant in a natural way to their respective jobs. Their memories were good because they were serviceable. If knowing that Mr. Brown's first name is George and that his family has moved to a charming suburb will help to do that important piece of business with him, it is worth remem- bering. If a bit from Gray's "Elegy" will aid you to put over that big contract, memorize the potent verse. If not, why clutter up the orderly array of your mental files with rubbish ? Improving the Memory In setting out in a very practical way to improve the mem- ory, that is, to make it more serviceable, we shall save both time and effort by distinguishing at the outset between general retentiveness and methods of using the memory. It is the conviction of William James, the most eminent psychologist that America has produced, that, "No amount of culture would seem capable of modifying a man's general re- tentiveness. This is a physiological quality, given once for all 86 THE BASIS OF PERSONAL SYSTEM with his organization, and which he can never hope to change. It differs no doubt in disease and health; and it is a fact of observation that it is better in fresh and vigorous hours than when we are fagged or ill. We may say, then, that a man's native tenacity will fluctuate somewhat with his hygiene, and that whatever is good for his tone of health will also be good for his memory. We may even say that whatever amount of intellectual exercise is bracing to the general tone and nutri- tion of the brain will also be profitable to the general retentive- ness. But more than this we cannot say; and this, it is ob- vious, is far less than most people believe." This does not mean that the memory cannot be improved. What is to be emphasized, however, is the means by which im- provement can be brought about. Abandon attempts to strengthen a general power of memory. Accept without mur- mur whatever native capacity for retention you have, but make the most of it by a proper system. The Man Who Remembers Is He Who Knows How This solution need discourage no one. As Professor Sea- shore points out, "All normal persons have sufficient capacity, if only they will use it. To be concrete, the average man does not use above 10 per cent of his actual inherited capacity for memory. He wastes the 90 per cent by violating natural laws of remembering." Through his superior method of recording facts, one of limited native retentiveness, in conse- quence, may outstrip by far his well-endowed but planless neighbor. System does it. The man who remembers is the man who knows how. Why "Memory Systems" Have Long Flourished Not a few so-called memory systems have been at one time or another enthusiastically exploited, sometimes with most extravagant claims. The Loisette system, perhaps the A SERVICEABLE MEMORY 87 most famous of these, once enjoyed a tremendous vogue. Peo- ple willingly paid fifty dollars for its set of lessons, which now, though published in book form at the modest price of one dollar, are utterly neglected. These memory devices usually depend upon some frame- work, which is mechanically but thoroughly drilled into the mind. Then the fact to be remembered is associated through some fanciful connection with the framework, which connec- tion is supposed to recall it. The Operation of a Typical Memory System The figure alphabet, as an example, will indicate how such a scheme operates. Each digit is represented by one or more letters, as: i> 2, 3, 4, 5, 6, 7, 8, 9, o. t, n, m, r, 1, sh, g, f, b, s, d, j, k, v, p, c, ch, c, z, S, qu- "To briefly show its use," explains Mr. Pick as quoted by Professor James, "suppose it is desired to fix 1,142 feet in a second as the velocity of sound; t, t, r, n, are the letters and order required. Fill up with vowels forming a phrase, like 'tight run' and connect it by some such flight of the imagina- tion as, that if a man tried to keep up with the velocity of sound, he would have a tight run. When you recall this a few days later great care must be taken not to get confused with the velocity of light, nor to think he had a hard run which would be 3,000 feet too fast." The reader may object to this, saying that he could much more easily learn the number 1,142 outright. But the advo- cate comes right back at him. "This plan will develop your memory. What would you not give to recall" and he names a list of things dear to our ambitions. Many business men yield to the argument, and go naively about their lessons. 88 THE BASIS OF PERSONAL SYSTEM Curious Attempts to Strengthen the Memory The purchasing agent cons the dictionary, believing that when he has doubled the number of new words he can learn in thirty minutes, his ability to remember price quotations will be increased. The accountant in his attempt to recall tables of figures practices on odd combinations of the alphabet, rxy, rtz, cycyz. Who does not, in fact every day, catch him- self pigeonholing some useless scrap of information just to strengthen his memory? Thurlow Weed's Method A classic example of such practice is the experience of Thurlow Weed, the famous journalist and politician of re- construction days. Before we inquire whether or not he was right, let us see what he did. His account of it reads thus: "I could remember nothing. Dates, names, appointments, faces everything escaped me. I said to my wife, 'Cather- ine, I shall never make a successful politician, for I cannot remember, and that is a prime necessity of politicians.' My wife told me I must train my memory. So when I came home that night, I sat down alone and spent fifteen minutes trying silently to recall with accuracy the principal events of the day. I could remember but little at first; now I remem- ber that I could not then recall what I had for breakfast. After a few days' practice I found I could recall more. Events came back to me more minutely, more accurately, and more vividly than at first. After a fortnight or so of this Catherine said, 'Why don't you relate to me the events of the day, instead of recalling them to yourself? It would be interesting, and my interest in it would be a stimulus to you.' Having great respect for my wife's opinion, I began a habit of oral confession, as it were, which was continued for almost fifty years. Every night, the last thing before retiring, I told her everything I could remember that had happened to me or about me during the day. I generally recalled the dishes I had had for breakfast, dinner, and tea; the people I had seen and what they had said ; the editorials I had written for my paper, giving her a brief abstract of them. I mentioned all the letters I had sent and received, A SERVICEABLE MEMORY 89 and the very language used, as nearly as possible; when I had walked or ridden I told her everything that had come within my observation. I found I could say my lessons bet- ter and better every year, and instead of the practice grow- ing irksome, it became a pleasure to go over again the events of the day. I am indebted to this discipline for a memory of somewhat unusual tenacity, and I recommend the practice to all who wish to store up facts, or expect to have much to do with influencing men." A Wasteful Method This experience of Mr. Weed's suggests one or two queries. In the first place, was this tenacious memory which Mr. Weed developed due to an improvement in his native capacity to remember, or to his paying more careful attention to things during the day, knowing that he was to be held responsible for them that evening? William James says the latter explanation is true, that Mr. Weed's physiological reten- tiveness was in no way changed by his mental exercise. In the second place, was there not an enormous amount of waste effort involved? Think of the time needed, every evening, for such exhaustive resurrection of the day's experi- ences! Not every man, besides, can count upon a "Mrs. Weed" with complaisancy, sympathy, and time to bear her part in the process. As a rule, we should avoid the waste involved in methods such as Mr. Weed employed and seek the quickest and easiest ways for making the memory serviceable. Since the man who remembers is the man who knows how, it is the problem of finding the best method of knowing how that presents itself here for analysis and solution. An idea, reaching the brain through the organs of sight, hearing, taste, etc., makes an impression. It then comes into contact with ideas already present, but after a period of association with them, it loses its character of a newcomer and becomes pigeonholed in the mental equipment. It should remain, how- 9 o THE BASIS OF PERSONAL SYSTEM ever, responsive to recall, and be able to gain recognition when it answers the summons. The process of remembering thus consists of four steps impression, association, recall, and recognition which will be discussed in turn. RULES OF IMPRESSION 1. Become Thoroughly Interested The school boy who, parrot-like, repeats his tables while thinking of that swimming hole under the old elm, cannot somehow make those tables stick. He has been cheated of results by mental laziness, the same enemy which years later still pursues him as a business man. Superficiality, dilettant- ism, and lack of interest, are bogs in which forgetfulness has rank growth. Attention and interest are the handmaidens of memory. In the front rank of men with a genius for acquiring information stood Roosevelt. He had an infinite passion for facts, an insatiable thirst for information; he laid violent hands on details, and he promptly pumped a visitor dry. The readiness of his memory, in turn, was something to wonder at; whether it concerned his rough-riders, or a patrolman appointed during police commissioner days, or some strange bird from the upper Amazon, his mind had it ever ready at hand. But consider the man his energy, his enthusiasm, his dynamic interest in things! The man who remembers well is alert, interested, mentally alive. The first rule of impression, accordingly, deals with just this thing ; do you have the aim, the live purpose, the incentive which prepares the mind as a seed bed for impressions ? 2. Be a Specialist, Ignorant of Many Things The world is so broad, its demands so numerous, that the man interested in everything spreads himself out too thin. He A SERVICEABLE MEMORY 9 ! lacks effectiveness, and in pronounced cases becomes merely a distracted incompetent. General interest must be sharpened down to specific in- terest. What shall these specific interests be? One's vocational choice largely determines this. It is presumed he has decided upon some phase of merchandising, banking, manufacturing, or any other of his thousand possibilities, as a particular ca- reer, and he now tests out every claimant for attention by the standard of his major purpose. Does it bear a vital connection to this purpose? If not, it is excluded, even though whole segments of his possible sphere are shorn away. 3. Concentrate Upon the Essentials of Your Specialty Even within his specialty, one does not memorize every- thing. Part of the information he needs is in book form, part is filed away in his cabinet, while part is jotted down on his tickler. The mind is then free for high grade work, because the burden of detail has been turned over to mechanical aids. Keep the big things in mind the little things on paper. This requires that ideas be ranked according to their im- portance; that thinking be organized; in other words, that, with his main purpose as a guide, one sHall determine whatis significant and what is trivial. "The only a priori advice," says James, "that can be given to a man embarking on life with a certain purpose, is the somewhat barren counsel: 'Be sure that in the circumstances that meet you, you attend to the right ones for your purpose.' To pick out the right ones is the measure, of the man. The genius is simply he to whom, when he opens his eyes upon the world, the 'right' characters are the prominent ones. The fool is he who, with the same purpose as the genius, infallibly gets his attention tangled amid the accidents." 9 2 THE BASIS OF PERSONAL SYSTEM 4. Master as You Go Retentiveness of memory is somewhat dependent upon the particular channel through which the consciousness is reached. One man remembers best a name when he reads it, another when he hear^it, another when he writes it down. With most persons, a combination of impressions is best. Listen to the newcomer's name and the sound of his voice, feel the quality of his hand-shake, notice his appearance, write his name down at the first opportunity. Impress the mind through all possible channels. The result sought is a clear-cut, definite impression, far different from the blurred image with which lazy, superficial learning-by-rote provides the mind. Observe sharply, concentrate, grasp the idea in a single firm impression. RULES OF ASSOCIATION i. Analyze for Principles After impression, conies association. Tc the efficient memorizer, the process here is strikingly like the keeping of a stores room. The incoming shipments are not dumped pell- mell into the stores room at least this method is barred among our leading business houses but are arranged system- atically. Classifications, often of an elaborate sort with ap- propriate symbols, are prepared, with bins labeled to correspond and a perpetual inventory for the stores clerk. This gets re- sults. So it is in the mind, when it comes to dealing with mental materials. There is nothing occult about this, no mysterious "faculty" of memory. The brain cells under the impulse of ideas sim- ply arrange themselves in a new order, or, as it is commonly stated, form a path. "Retention," says William James, "is not a fact of the mental order at all. It is a purely physical phenomenon, a morphological feature, the presence of these A SERVICEABLE MEMORY 93 'paths' in the finest recesses of the brain's tissue." The more prominent paths are in general those over which the trains of thought more frequently move. Principles are trunk lines running through mental terri- tory. A principle does not become a principle until it is found to serve as a center around which details may be grouped, a sort of trunk line to which the details are feeders. Just as the chief stores clerk in deciding what to do with a package of screws or bolt of cloth works according to some general system of classification, so in arranging the mental material we proceed according to a certain rule. 2. Discover Relationships The reader who at the time of commencing this book, let us say, owns a Ford, but later buys a car of a different make, is not thereby obliged to relearn the automobile. The two cars in many respects are similar, and he soon becomes familiar with the differences. By noting similarities and differences the new idea is readily assimilated to the old. In noting similarities and differences, one proceeds ac- cording to the principle of relationship. Such relationship may be illustrated very briefly as follows : ( automobile Whole and part -j . , . , ( Timkin bearings /- 1 cc ( banana peel Cause and effect < , ( we fell on Broadway Abstract and concrete \ ( pig iron ~ . ( accountant Genus and species-^ T ( John Smith, C.P.A. 94 THE BASIS OF PERSONAL SYSTEM In remembering a series of freight bills, we think of them as expenses; in making several purchases at the corner gro- cery store, we think of them perhaps as parts of a picnic dinner. 3. Make Use of Associations These associations may be obvious, as when Miss Smith is mentally tabbed "stenographer" ; or far-fetched as was the connection between "umbrella" and "door-way" which a certain man accustomed to forgetting his umbrella, drilled into his mind with successful effect. The so-called memory systems are usually nothing beyond more or less artificial methods of connecting things. In re- membering numbers, Loisette, for instance, gives such illus- trations as these: the height of Pike's Peak is 14,147 feet; observe that the number consists of two fourteens and a half of fourteen. Fusiyama, the noted volcano of Japan, is 12,365 feet high ; observe that this number is made up of the number of months and days in the year 12 and 365. Things are retained more easily and more tenaciously when bound together in a net-work. "The 'secret of a good memory'/' says William James, "is thus the secret of forming diverse and multiple associa- tions with every fact we care to retain. But this forming of associations with a fact, what is it but thinking about the fact as much as possible? Briefly, then, of two men with the same outward experiences and the same amount of mere na- tive capacity, the one who thinks over his experiences the most, and weaves them into systematic relations with each other, will be the one with the best memory. The merchant remembers prices, the politician other politician's speeches and votes ; and both remember with a copiousness which amazes outsiders, but which the amount of thinking they bestow upon these subjects easily explains." A SERVICEABLE MEMORY 95 4. Bind Elements Into Large Units These principles of memorizing were applied quite con- sistently by the late Edward H. Harriman, and they go far to explain his amazing memory. But Mr. Harriman's ability well illustrates the fourth principle, which we may state as the final rule of association. "When you jump from one thing to another," Mr. Har- riman was asked, "do you have to stop and think and adjust yourself to the new mental condition created by the considera- tion of a totally different subject?" "No," he answered. "You are not conscious of any change in the speed of the mental machinery, as it were? No break of any kind when you decide what to do in this case and immediately what to do in the next jumping from a matter in New York City to some engineering problem in Utah or California?" "No." "How do you do it?" I asked. "I don't know. I think," he went on meditatively, "that the mind is like these what d'ye call 'em on this desk? these pigeonholes. A man comes to me. I listen and decide on what to do ; and then it goes into a pigeonhole." "And it's always there? No trouble in finding it again at any time?" "It's always there." He was thinking, obviously looking for an explanation. "It's always there. Whenever I need it again I find it there." "And you don't know how you do it?" "I don't know how I do it," he repeated after me, almost hypnotically. Evidently he was trying to find out. But after a moment he shook his head and said : "But there are fewer pigeonholes, I think." The secret, if one prefer to call it such, is revealed in the 96 THE BASIS OF PERSONAL SYSTEM words, "There are fewer pigeonholes." He bound elements into larger units. To Mr. Harriman, an earth embankment was not an earth embankment but a straight track between two stations. This straight track between two stations was no isolated detail, but a part of the Union Pacific Railroad. And this in turn was but a link in that world-wide transportation system which was Mr. Harriman's goal. Spikes, rails, and ties he bound into construction units; construction units in turn he bound into railway units; and these finally he thought of as parts of a vast system an orderly yet progressive sequence in thought. RULES OF RECALL 1. Recall With Accuracy Ideas impressed upon the brain and woven into its fiber, are retained; in other words, they stick. It is not, however, for that purpose that one remembers. His aim in memorizing ideas is to have them when he wants them. Retention is valuable only as it insures recall. The problem now becomes how to employ methods which will insure this. The stock keeper of the mental stores, like any subordi- nate under lax discipline, is apt to fall into slothful habits. When called upon to produce a certain idea with which he has been intrusted, he perhaps returns a hazy, blurred copy of the original. Should this be accepted, he degenerates into still more negligent ways, until finally the requisitions drawn upon him are filled with whatever causes least exertion. Such easy-going and slovenly recall must be resolutely prohibited from the first ; "rule thy servant or he shall rule thee." 2. Concentrate on the Relevant Scarce has inaccuracy been avoided before another and yet more serious difficulty arises. The mental stores are re- A SERVICEABLE MEMORY 97 turned accurately enough, but without discrimination. As Mr. Business Man recalls the directors' meeting, the scene as a whole comes clearly before him, then some certain inci- dent connected with the chairman, next the chairman's fishing party followed by his own thrilling capture of a black bass, until finally, Mr. Business Man finds himself mind-wander- ing far from his original starting point. To recall completely all one has ever experienced would require as many years as this experience originally occupied. Abbreviation and condensation are absolutely necessary; the four hours directors' meeting can with profit be boiled down possibly to four minutes, and as for the black bass none of it for the business day ! The essentials only are wanted, and all else which presents itself should be repressed as irrelevant. 3. Repeat the Recall Frequently The rather common way of memorizing is to repeat again and again the impression. Drill, drill, drill! It is felt that memorizing should precede thinking, for logically ought we not store the mind with the necessary raw materials before trying to reflect upon them? "The most important part of every Musselman's training," says Ratzel, "is to learn the Koran, by which must be understood learning it by heart, for it would be wrong to wish to understand the Koran till one knew it by heart." This process is extremely wasteful. It emphasizes im- pressions, whereas what is desired is ability to recall. One recall is worth a dozen impressions. The correct procedure is first to stamp the mind with a clear impression, then to repeat not the impression but the recall. In this way one develops a wonderful set of grappling hooks, prompt and accurate in bringing to the surface what is wanted. 98 THE BASIS OF PERSONAL SYSTEM 4. Seek Out Clues Persistently In not a few cases, however, when one seeks to recall a memory image, no response is secured; the image apparently is lost. Again, it trembles on the threshold, but does not come forth. What can be done in such cases? Mere blind persistence has a value, just as the man of the house, in looking for a pack of cards may go from room to room turning things up-side-down, and perhaps after a time, come upon said pack in a table drawer. But all this means hard work, hence, as Seashore points out, if the memory image is not at command so soon as sought we all too readily conclude that we cannot reach it. The old injunction of try, try again has much merit here. But not planless trying, no mere stolid turning over of stones. The object sought is not lost in some isolated crevice of the mind, but has connected itself with some other object, which in turn becomes available as a clue. Seek connections system- atically. Go through the mind in the manner of Sherlock Holmes. RULES OF RECOGNITION i. Recognize with Vividness After recall comes recognition. The image desired has risen from the mental recesses, and is now at command. Shall one think, "Yes, this is right," in a dry sort of way, and then think no more ? Scarcely! Our friend comes to mind not as two mere words, "John Smith," a colorless image, but as some one with brown eyes, wavy hair, cheviot suit, walking stick, and so on, not forgetting the cheery smile. He is a real flesh and blood person. The image, abundant in detail and intense in its recall, enables its possessor to relive the scene as in the original; it makes recognition realistic and tangible. A SERVICEABLE MEMORY 99 2. Express the Recognition Appropriately In the most subtle way, mind and body are Knit together. Every thought tends to express itself in action, every action tends to influence thought. The staid executive who in telling football stories some Sunday afternoon for the benefit of his boys, crouches on the rug as he illustrates the fierceness of his tackling just in front of Old Eli's goal, does more than carry his listeners with him. He makes the story real to himself. He is reliv- ing the scene, with all its appropriate actions. Most of our mental furnishings, in fact, were gained through action of some sort, be it even so prosaic as walking or smiling; and the recognition of these ideas stored in mem- ory gains in vividness as these same actions accompany the recall. 3. Trust Your Memory But perhaps after all the idea recognized is the wrong one; are we not possibly being tricked? Questions such as this once raised are so hard to down that not a few persons are always uneasy with the lurking suspicion that their memory is playing them false. What stores clerk bent on filling his requisitions with accuracy and dispatch would improve, if continually suspected, questioned, and accused? Would not this miasma of doubt finally break down his moral fiber, make him in reality the in- accurate, hopeless, incompetent he was suspected of being? Just so with the memory. Doubt clogs its action, confi- dence inspires it to better service. Do not therefore be anx- ious, for your memory under good treatment will serve you well. 4. Forget the Useless The memory, however trustworthy it may be, deals with the past. But the efficient man lives in the present, and 100 THE BASIS OF PERSONAL SYSTEM looks forward to the future. Let the dead past bury its dead. What cares he for it save as it aids him now and serves as a guide to the future. The memory, accordingly, must be selective. While hold- ing tenaciously those items which are worth holding, it must nevertheless refuse to thumb over in the files day after day the transactions long since closed. Such useless accumulations, dead timber, should be allowed to float gently out upon the stream of thought into oblivion. A good memory and a good "forgettery" are firm allies. Few persons have the resolution to do this. Like the hermit of the story books, always collecting but never throwing anything away, the majority run the risk of guarding with jealous care a junk heap. Yet such watchful guarding, be- sides being wasteful, is unnecessary because the idea forgotten still serves us. We are the sum total of all our yesterdays, and even the idea lost beyond recall has had its influence in making us what we are. "Although the ready memory is a great blessing to its possessor," says William James, "the vaguer memory of a subject, of having had to do with it, of its neighborhood, and of where we may go to recover it again, constitutes in most men and women the chief fruit of their education." This chief fruit is not lost through the admonition, "keep the mental decks cleared for action." But the, mind in parting with its useless material does ex- perience a feeling of relief, and its energy freed from the task of watchful waiting can deal with the needs of today. In getting through the day's work and the year's work, forgetting is as important as remembering. Summary of Rides The rules of memory culture will now be summarized, that the leader more readily may make them his own. (See Fig- ure 13.) A SERVICEABLE MEMORY 101 in m +- o> ^^ s_ ^ - <^) _G: +- >x u nl D u D O >, (O >^ ;= c Q) -2-fe -4- .2 (0 'C ^ (0 cr - o 2 u a )=; Q. ft) X l_ O- ii_j ro ' (0 (0 ft) ^ .tf -g >.;> o '> ^ ft) RccooMinon o (I cc u 3 F 1- c u 3 CO Q_ ' >s f u bJ oc D 5eek out clues persistently fcf *> r (O s A) CL C^ "S Dncentrate or the relevant c > o (O o D o u ^ c cd o s: u z: ^ 42 g 'c g^ 3 (D C ft) ' cr -O L. C iO CD lake use of associations Discover relationships o <*- tn o (S) Q. N 'o X C /O *i- c o- < ASSOCIATION tn C. V c/5 3 .2 *u o > V hJ f-H O u fO PC O) JX m 3 A In bo O O^ i_ ft) D ^Z 10 ^ 51 tn (0 Concentrate jpon the esser "ials of your specialty ir: (O .5 -6 ? It? CL ID W ^ o g-g 0) " Become thoroughly interested IMPRESSION E CD 102 THE BASIS OF PERSONAL SYSTEM The steps in memory culture are direct, certain, perfectly practical, and the goal itself is worthy of attainment. But the only way to reach this goal is through practice, practice, practice. EXERCISES Conditions of Memorizing Some evening when you are "dead tired" memorize the following, or some other verse if you are familiar with this, noting the time required before, with the book closed, you can repeat it with con- fidence : The boast of heraldry, the pomp of pow'r, And all that beauty, all that wealth e'er gave, Await alike the inevitable hour. The paths of glory lead but to the grave. The next morning after such a good night's sleep that you feel thoroughly refreshed, memorize in a similar way this or some other verse, of about the same difficulty as the first : Full many a gem of purest ray serene The dark unfathom'd caves of ocean bear; Full many a flower is born to blush unseen, And waste its sweetness on the desert air. Compare the amount of time required. After two weeks have elapsed, see which verse you can recall more completely. What do you conclude as to fatigue versus freshness, ill-health versus vitality, in making things stick in the mind? Methods of Memorizing Here are three columns of words which you are to study in each case three minutes, exactly as directed: porosity recreant reagent plebeian matadore anachronism hawser diurnal harbinger platoon posteria postulate thesaurus stereoptical erysipelas Study Column I by sound. Listen carefully as someone spells the words aloud to you, trying to remember each sound; have him con- A SERVICEABLE MEMORY 103 tinue the spelling, you meanwhile trying to impress the ear, until the three minutes have elapsed. How many words do you remember? How many do you spell correctly? Study Column 2 visually. Look sharply at the letters, the number of them in each word, their appearance and order, trying hard for three minutes to impress the eye. How many can you remember? Write correctly? Study Column 3 by a combined method. Spell them aloud to your- self, scrutinize the letters sharply, write them down. Appeal this time to ear, eye, and muscle. How many can you remember? Spell correctly? Compare the results. In impressing your mind which approach seems the best ? Should you wish to recall names more readily, what suggestions do you draw from this exercise? As a further test we have here four columns of ten words each: I II III IV long short good no sweet sour tall old hot cold up night early late lost little wet dry day sea thin thick yes found in out now short top bottom big bad buy sell true own more less land false Study intently Columns I and II, then cover this second column with a sheet of paper. How long a time is required before, by looking at Column I meanwhile, you can repeat correctly in order each word in Column II? Study now with equal care and for the same length of time Columns III and IV, then covering the latter with a paper and look- ing at Column III, how many words of Column IV can you repeat correctly in order? Why is the second test so much more difficult than the first ? What principles of memorizing are here illustrated? Not Just Plodding, But Planning When you deliberately sit down and consciously exercise your memory, "keep your eye on the ball." Do not think about indefinite or incongruous things. Take one definite starting point and group other details around it. Narrow your field of recognition and recol- 104 THE BASIS OF PERSONAL SYSTEM lection, and multiply all the associations which bear upon the topic you wish to master. When our government began making frames of airplanes for the Liberty Motor Samuel Blythe tells us in the Saturday Evening Post they needed spruce, and more spruce and needed it "sea- soned." The wet, sappy wood was no good for the purpose and the only known seasoning process was nature's own which took from twelve to eighteen months. Some experts went to work on the problem and found a way to shorten the time to four months, but even that was too long. Then "the best brains in the country tackled the job and a process was devised by which spruce can be seasoned and made ready for use in fourteen days. It is a process of seasoning by saturation, too tech- nical to be detailed here; but it works." The efficient man can do something of the kind with his memory. Saturate your mind with impressions and associations connected with the sort of facts you wish to remember, and then concentrate your attention ; you can make more speedy and more sure the process of getting command of your mental stores. PART III THE DISPATCH OF A DAY'S WORK The leaders in action or thought are not magicians but steady, persistent workers. THEODORE N. VAIL, President American Telephone and Telegraph Company. CHAPTER VII PLANNING THE DAY'S WORK He who every morning plans the transactions of the day, and follows out that plan holds a thread that will carry him through the labyrinth of the most busy life. VICTOR HUGO. The Economy of Well-Planned Activities The mechanical aids, standardized office, competent sub- ordinates and dependable memory so far discussed, afford a reliable basis for personal system, but they are only the basis. Each of these factors must be skilfully applied to specific tasks before a full mastery over routine is attained. In large measure, this skilful application to specific tasks depends upon planning. The items which comprise the day's work must be surveyed, analyzed, ranked in relative impor- tance, and attacked in a carefully organized way. Such sys- tematic procedure, while of importance to every business man, is of especial importance to the executive, since in his capacity as business general, superior results or lack of results, as the case may be, are multiplied manifold in the activities of subordinates. On the Offensive The plan as an instrument for the attainment of results exalts imagination and foresight, instead of "hindsight" and vain regrets. Precision is impossible without prevision. "The marksman who had no bull's-eye to aim at," very truly observed President Cottingham of the Sherwin-Wil- liams Company, "never made the top record. I believe in knowing just what I am doing, and where I hope to land." 107 108 THE DISPATCH OF A DAY'S WORK The plan keeps a man on the offensive; "push the work, don't let it push you," is the ideal it makes realizable. The man who does not plan is crowded by unexpected tasks and is haunted by yesterday's loose ends. He is always on the defensive, while others with more foresight wage wars of aggression. "I have found it most satisfactory," observed the late President Easton, of the Columbia Graphophone Company, "to so systematize my work that the weak spot is evident long before the leak appears. This leaves me the strength that some men put into the losing fight, to devote instead to the initiative." Definite Accomplishment The mental health which comes from planning one's work is not the least of its benefits. Dr. Adolph Meyer, one of the most distinguished alienists of the present day, made the dis- covery that among the untransmitted causes of insanity none counts more prominently than the big idea; the idea that never can be fully made over into concrete reality for the very reason that it is so big. The far-reaching scheme, the still unsubstantiated venture, the revolutionary theory, the momentous but unperfected invention all have it in them to take possession of a man; they hold him day and night; he cannot get away. The road back to healthy-mindedness is to be learned from the man who works at smaller tasks. He attacks these jobs directly and successfully. They are finishable; and as one after another is put out of his way, he enjoys the satisfaction and the sense of freedom which come from a definite accom- plishment. The big idea broken into parts becomes similarly get-at-able. Neither its magnitude nor its compelling lure dissipate the confidence as the parts, according to pre-arranged plan, are attacked in turn. Thus planning does more for the PLANNING THE DAY'S WORK distracted worker than clear away the day's work, it insures for him a healthy mind and a positive attitude toward life which keeps him mentally on the offensive. A well-considered plan of procedure may appear slow to some readers, who with a fine disdain for system, are ac- customed to push directly into the day's work. "Strenuosity," "hustling," the attitude of "pushing things through," are indeed traits which as a people the Americans have long ad- mired. But all traits, however long admired, must be judged by results. Can planless strenuosity meet successfully this test? Colonel Roosevelt An Orderly Worker The name of Colonel Roosevelt is synonymous with "strenuosity" in popular thought. But Colonel Roosevelt represented the very incarnation of order and regularity in his work. "Every morning," wrote "K" in the American Maga- zine, during the Colonel's term as president, "Secretary Loeb places a typewritten list of his engagements for the day on his desk, sometimes reduced to five minute intervals. And no railroad engineer runs more sharply upon his schedule than he. His watch comes out of his pocket, he cuts off an inter- view, or signs a paper, and turns instantly, according to his time-table, to the next engagement. If there is an interval anywhere left over he chinks in the time by reading a para- graph of history from the book that lies always ready at his elbow or by writing two or three sentences in an article on Irish folk-lore, or bear-hunting. "Thus he never stops running, even while he stokes and fires; the throttle is always open; the engine is always under a full head of steam. I have seen schedules of his engage- ments which showed that he was constantly occupied from nine o'clock in the morning, when he takes his regular walk in the White House grounds with Mrs. Roosevelt, until mid- 1 10 THE DISPATCH OF A DAY'S WORK night, with guests at both luncheon and dinner. And when he goes to bed he is able to disabuse his mind instantly of every care and worry and go straight to sleep; and he sleeps with perfect normality and on schedule time." Such careful planning as this stands the test of results. The man who neglects to plan, but is merely "pushing," tears his way through great heaps of correspondence, sends hurry- up calls, answers the telephone, rushes away to conference in whatever sequence these tasks force themselves upon him. This poor man is, as he puts it, literally "worked to death." For all that, because of his defective system, he gets little done; concentration is lost, perspective is lost, output cannot be secured. A Survey of the Day's Work The executive convinced that planning can secure for him an increased capacity next considers how to put such plan- ning into practical operation. Here he faces a problem, whose solution has not yet been worked out with completeness. Fac- tory processes, office furniture, the work of subordinate of- ficials and clerks and the like have become highly standard- ized, but just what is the executive's routine and just what methods should he employ? Any authoritative answer to these questions depends upon recerds, analyses, and classi- fications as yet incomplete. It is safe to say, however, that everyone finds awaiting him when he reaches his desk in the morning material of four kinds : 1. Unfinished tasks which are on file in the "pending" pocket of the day's work file, or in the folders of the vertical letter file, or in a desk drawer reserved for such material. 2. The morning mail plus telegrams, telephone calls, or other special messages that have arrived. PLANNING THE DAY'S WORK m 3. The tickler or its substitute, such as a calendar pad, a diary, or note-book, which contains memoranda. 4. Various regular items whose recurrence is too com- mon a matter for recording specially. The basis for scientific planning in factory management was obtained from a great many experiments taken with stop- watch, slide-rule, etc. Out of the multitude of individual records, generalizations and averages emerged at last, and reliable, convenient rules for general use were formulated. The man in an executive position can do somewhat the same thing with regard to his own work. The Elements of Planning In surveying these various items with the object of weav- ing them into some systematic arrangement of his time, the executive raises certain questions which are basic in all planning : 1. Object. What is my aim or purpose? 2. Methods. Which of the various methods available best affect this object? 3. Equipment. Under what standardized conditions as to equipment are the above methods most effective ? 4. Materials. What working materials do I require? 5. Sequence. In what order shall the various items or operations be attended to or performed? 6. Time. What is the standard time, if any, for com- pleting each step or operation required? 7. Inspection. By what standards will the results be tested ? An intelligent plan based upon the information called for by these seven questions represents a most important step toward the attainment of results. 112 THE DISPATCH OF A DAY'S WORK The Waste of Unplanned Work The executive who pays little or no heed to the foregoing elements of planning usually will be found wasting time and energy in ways such as these : 1. Needless shifting of employment stopping and start- ing. 2. Poor sequence of operations, involving often doing of less important things first and the massing of im- portant tasks together regardless of the rhythm of effort and thus wasting energy. 3. Wrong perspective proportioning time unwisely. 4. Wrong methods of approach or wrong strategy in dealing with the various tasks. 5. Packing the working day too full no free time for emergency tasks. Careful analysis reveals relationships among different ex- periences, and enables a man to establish a few controlling accounts for his expenditure and investment of effort and time. By working out a standardized procedure for the regu- lar case he can save time and strength for the exceptions. The Assistance of Systematic Planning Standardized procedure cuts off the waste characteristic of unplanned work. More than that, by its deliberate and" systematic arrangement of the work, it leads to positive re- sults : i. It shows the nature, relation, and order of importance, among a series of seemingly individual items. It classifies them into "constants," those which recur regularly in much the same form, and 'Variables/' PLANNING THE DAY'S WORK H 3 which are not thus regular; and into matters of greater and of less importance. (a) Constants may be handled in the mass with a minimum of effort and thus more time is left for variables. (b) Minor matters can be subordinated and priority be given to those of larger importance. 2. By enabling the worker to foresee his various tasks it enables him: (a) To determine in advance the method he will use for each task or each group of tasks. (b) To get ready for special efforts, to meet special needs. 3. It gives the worker confidence. He knows that he is not wasting his strength and is in no danger of blocks on the line; therefore he does not worry. Illustrations of Systematic Planning The whole matter of planning the day's work is sim- plified by a study of the programs worked out by executives of known ability. Some of these are given below: William H. Ingersoll, whose mercantile genius is largely responsible for "the Watch that Made the Dollar Famous," arranges his work according to a most systematic plan, using both a weekly and a daily program. The weekly program is shown in Figure 14. With this goes a daily program, shown in Figure 15. This form, which is filled out at the beginning of each day, gives a complete outline of the day's work, noting engage- ments with outside people and any deviation from the set weekly program. THE DISPATCH OF A DAY'S WORK I a u - - o M s o 55 fe O tt g - a u 5 H JM M G "S y '3 ^ 2 3 M 5 .3 i jfl In '3.y 3 THURSDAY Mail Dictating I h Secretary y 9 3 Executive Conference Controller IX CO INESDAY I X tr d P o a 3J * H CO CJ c^ c J PQ V 5 M a a) y _> a +J s a 5 'S.y O 1 3 3 u o ^ X O g SQ CO H-l WU PQ M b 1 a J _ * 31 So Q i y s a J s PQ 00 r*5 O rO 8c j 3 ? 9. 000 O <3 O o o o o c f3 O ^O O <" 5 5 TO O ON O O >-> H >N w N IN O CO ^ ' J-IO ID ^ ^ i ^ > i | ooi &> ^ 3 i Ov 0\0 H < w M M M M CN N CO CO ^ i"* 1C to PLANNING THE DAY'S WORK 115 In the schedule shown in Figure 14 the following letters represent C Staff of Home Office Bureau Chiefs S Bureau of Sales Promotion (salesmen and other) X Bureau of Experimental and Special Duties G General Service Bureau DM Bureau of Domestic Branches (Co- and supervision) FM Bureau of Foreign Branches P Bureau of Publicity and Advertising R Bureau of Export (direct markets) BM Bureau of Organization Maintenance and Standard Practice T Bureau of Scheme and Special Sales The blank spaces represent time in which the executive works by himself and the following are the duties which he aims to cover in that time : 1. Plans, schemes, producing 2. Study of reports 3. Get ready for conferences (i. e., assemble material, etc.) 4. Reading materials submitted to him and minutes of previous con- ference meetings 5. Reading clippings and articles of special interest 6. Problems in general management constant subjects Some Typical Daily Plans* i. DAILY PROGRAM OF AUDITOR FOR STREET RAILWAY COMPANY 8:30- 9:ooA.M. Read mail and give orders to chief clerk and any others 9:00- 9:30 " Dictate letters 9:30-10:00 " Countersign any checks and approve vouchers and bills 10:00-11:30 " Open to callers (including any clerks) and personal inspection of work of the general office 11:30-12:00 " Business with other officers 12 :oo- 1 130 P.M. Lunch *These sample schedules were secured by Carroll D. Murphy of System, who also presents in the sixth his suggestions as to what duties should appear in the day's work schedule. !l6 THE DISPATCH OF A DAY'S WORK i .-30- 2 :oo P.M. Dictate letters 2:00- 3:00 " Approve vouchers, bills, and other docu- ments 3:00- 4:30 " Open to calls (including any clerks) and work on any special matters 4:30- 5:15 " Sign letters and statements 5:i5-5:30 " Open 2. A MANUFACTURER'S SCHEDULE 8:30 Reading, sorting, and distributing mail 9 :oo Correspondence 10 :oo Conferences 11:00 Planning 12 :oo Luncheon 1 130 General office, sales, and advertising proposi- tions 3 :oo Correspondence 3:30104:30 Invariably held open for consideration of mat- ters not possible to dispose of during the day 3. A SALES MANAGER'S SCHEDULE Reading and answering telegrams; study of day's schedule 8:20 Talk to city salesmen 8 :3O Confer with heads of departments ; study re- ports and charts previous day's business 9 :oo Mail and correspondence 11:30 Luncheon. Usually with some out-of-town cus- tomer or at some business club 1 :oo Reading afternoon mail. Write out-of-town salesmen and branches 2 :oo Appointments with solicitors 4:00 Correspondence' 5 :oo Signing correspondence 5 :3O to 6 :oo Usually stroll around office and plant and talk with employees, picking up information as to how things are going. PLANNING THE DAY'S WORK 117 Dal, PROGRAM OF THE DAY DUTIES APPOINTMENTS V 9 V .15 JO .45 10 .15 JO .45 11 .15 JO .45 12 .is .30 .45 1 .15 JO .45 2 .15 JO .45 3 .15 JO .45 4 .15 JO .45 s .15 .30 EVENING: Figure 15. Schedule for Daily Work This is the schedule sheet upon which W. H. Ingersoll makes out his day's work. 4. A BANK CASHIER'S SCHEDULE 6:30 Rise 7 130 Breakfast 8 :oo Newspapers 8:30 Brisk walk for thirty minutes 9:00 Look over mail 9 130 Take care of correspondence 10:00 Attend to business as it comes 12:30 Luncheon i :3o Regular business 3:00 Check the day's work THE DISPATCH OF A DAY'S WORK 4:00 Personal letters 4 :3O to 5 :oo A casual walk 6 :oo Dinner Till 10:30 Current news and other reading. Two even- ings of the week along banking lines and two other evenings along advertising lines. 5. DAILY WORKING PLAN OF MANAGER OF MAIL-ORDER SALES MORNING o to 10:30 o'clock Study sales received in morning mail, and sources thereof. Study the sales total for month so far, and its relation to the monthly sales quota established. Make definite notes for further research, planning, and sales effort, depending upon tendencies indicated by status of sales to date. 10:30 to ii o'clock Correspondence. // to 12 o'clock Conferences and discussions with members of advertising, copy-writing, and sales staff. 12 tO 12:30 O'clock Arrange actual copy-writing and plan work for the after- noon. 12:30 to 1:15 o'clock Lunch. AFTERNOON 1:15 to 4:30 o'clock Actual mail sales planning. Close study of various chan- nels of outlet, and particular copy appeal required on each list for each unit to be sold. Assigning of copy-writing work to members of staff. Personal copy-writing by mail-order manager. 4 .-30 to 5 o'clock Follow up the regularly scheduled mail-order work going through. Check up with members of staff as to actual mail- ings and their routing through, according to schedule. PLANNING THE DAY'S WORK up 6. DUTIES RECOMMENDED FOR SCHEDULE BY CARROLL D. MURPHY, IN "SYSTEM" (a) Correspondence (b) Conferences for: (1) Coaching men (2) Getting facts (3) Giving orders (c) Customers (d) Interruptions (e) "Mixing" (f) Studying reports, planning, and individual work block- ing out the next move and the proper policy (g) Reading and keeping in touch with the trend of busi- ness Preparing Your Plan Though valuable as suggestions, the foregoing plans should not be adopted unchanged, as the plan which works most effectively for a specific executive depends primarily upon an analysis of his particular duties. Such an analysis involves the keeping of a record for a period of several days, possibly weeks, of everything that is done during the working day. It may be well also to include in this record the things which suggest themselves but which somehow are crowded out; they oftentimes represent choice opportunities which have been neglected. A study of these records will soon reveal certain group- ings, which means that the outlines of a day's work plan, are beginning to emerge. Needless to say there will be wide variety in the results obtained by different men. Some ex- ecutives have merely an ordinary round of activities; with others it may seem at first that the only regular feature of their work is its irregularity. But in any case it will be profitable to raise a few definite questions in regard to the day's work to run a few "levels" as a surveyor does in lay- ing out a street. 120 THE DISPATCH OF A DAY'S WORK Classifying Your Work The first and most important question to apply is that of the kind of activity involved in each kind of task which enters your regular day whether it appears as a constant item or merely comes once in a while. That activity may consist of : 1. Personal study, or formation of opinion. This may be done either: (a) Through thinking things out for oneself. (b) Through examination of data which have been collected for the executive. 2. Inspecting work of others. This may include: (a) Routine O K'ing of pieces of work presented by subordinates. (b) Supervising subordinates, examining equip- ment, etc. (c) Remedying trouble. (d) Inspection work outside the office. 3. Consultation. This may include : (a) Reporting to superiors. (b) Explaining "the law" to subordinates. (c) General discussion of points of policy or methods. (d) Argument regarding the adoption of a par- ticular plan. A second question is that of an executive's relation to a given piece of work or to any part of it. His function may be that of: 1. Originating the idea; visualizing it and explaining or "selling" it to his associates. 2. Developing or promoting an idea by someone else; what is required on his part is loyal and sympathetic elaboration of people's plans. PLANNING THE DAY'S WORK I2 i 3. Reviewing, checking, testing; what is required of him is to see that specifications have been properly com- plied with. Thinking over the various groups of tasks which the record shows enter his working day will enable a person to decide pretty definitely regarding each group: 1. Whether it should be given a regular place in his daily schedule or may be disposed of in one of his "free" periods. 2. Whether it must be taken up according to the con- venience of other persons. 3. Whether it requires fresh energy, or may be handled on "exhaust steam." 4. What is required in the way of office conditions and conveniences? Is it seriously affected by noise, by a crowded office, etc.? The effort to apply the above questions, or similar ques- tions devised for yourself, will reveal to you perhaps things you have not realized regarding the character and relation- ships of the tasks which make up your regular working day. Applying the Analysis in a Definite Plan The next thing, which at first thought may appear much more difficult, is to rearrange the working time so far as possible to fit more perfectly with the tasks to be done. Very likely the reader will say at once: "This is impossible. Defi- nite plans do very well for the president or general manager, but not for the subordinate. My own position involves con- tinual adaptation to the calls of other persons superiors subordinates outsiders. My duty is to be ready for any duty. I could not hold to a plan through a single day. I may plan, in a sense, for a month or a week that is, outline the work 122 THE DISPATCH OF A DAY'S WORK to be covered and in general the order to be followed, but no more!" To those who know the history of planning as applied to the factory these remarks have a strangely familiar sound. In reply it may be said that even if your time is wholly "at call" you can determine to a considerable extent to which calls you will give priority, both in order of attention and in the amount of time allowed. The difference in effective- ness, in the amount of accomplishment by different execu- tives, turns largely on this. The junior executive may be swept on by the current, but even he can to a large degree lessen or increase the expenditure of time and effort it in- volves. Moreover, one can plan how to meet different sorts of calls. The "trouble man" of the telephone company, for in- stance, cannot plan in advance where he will be needed, but he can prepare definite means for dealing with the various types of emergencies which occur. And after all the "trouble men" in any business which is really well organized are few. Every executive has at his own disposal a much larger pro- portion of his working day than he is apt to think providing he has learned to utilize the odd minutes. Study of time is as illuminating and useful as study of pnysical layout. Nearly every man will find, on making such an analysis as has been suggested above, that he is wasting some of his free hours, or half-hours, upon duties which could be perfectly well disposed of at odd times. Few of us utilize the ten-minute or five-minute intervals which come to even the busiest "trouble man." Yet there are only 42 ten-minute intervals in the seven hours of the working day. Mr. Vanderlip, so The American Magazine for January, 1918, relates, makes much use of two-minute interviews. It is decidedly worth while to make an analysis and draw up a plan even if the plan must be scrapped the first day. The PLANNING THE DAY'S WORK 123 attempt at a more orderly distribution of his time is an ad- venture in which a man cannot lose; he is certain to gain in what is most important, namely in clarifying his own mind as to the nature, relationship, and comparative importance of the tasks with which he has to deal. Once having taken such a trial balance of his individual duties and resources he knows better what to do with almost every task which presents itself. Then, when exceptional new items appear, he has the time to spare if they seem to require it. A Trouble Man's Daily Program To indicate the reasonableness of the planning which has been described, we may cite here the manner in which the industrial engineer connected with a large manufacturing plant has organized his day. This man is the trouble man for the entire organization. Any department head who has difficulty in his relations with any other department in regard to securing data, reports, or co-operation, calls upon him to devise schemes for over- coming such trouble. He has assisting him a staff of experts who are given assignments from time to time working up the details of these schemes. Thus this man's time is never his own and he must always be and is available to such demands as are made of him. He has discovered, however, that his daily schedule can be laid out much more regularly than might be supposed. The time of the various executives of the organization, whose convenience he must meet, is itself arranged in a varying order of routine and extra work. Through careful study of their time-tables he has made one for himself which is sur- prisingly regular. Arriving at eight o'clock in the morning, he spends fifteen minutes in setting-up exercises under the directions of an in- structor. All the office executives take this practice as a means 124 THE DISPATCH OF A DAY'S WORK of invigorating themselves for the day's work. The next fifteen minutes are spent looking over any mail which has come in the first morning's delivery and dictating answers to letters, etc., which require attention. The majority of calls which are planned in advance are received by phone, and on the whole, the work of the day can be scheduled at this time. At 8 130 the various superintendents bring in their troubles for a routine conference and adjustment, the industrial en- gineer acting as the referee. At nine o'clock is held the daily staff conference of his subordinates. Each of these makes daily reports of what he proposes to do in laying out the schemes of adjustment. 10:30 to ii is set aside for appointments in which the factory executives or department heads are given the prefer- ence. The last forty-five minutes of the morning are given to appointments, looking over the correspondence waiting for signature, or incoming mail. Lunch takes the time until 1:15. The next fifteen minutes is spent in looking over any calls which may have come in and scheduling the afternoon's work and preparing for the daily half -hour conference with the general manager, which is from 1 130 to 2 o'clock. At this time, all matters which will have any effect upon the company's policies are discussed with the engineer's superior with an idea of getting final rulings. From 2 to 3 is set aside for conference with subordinates covering their assignments. The rest of the afternoon is open for handling all special matters requiring attention. For instance, the first fifteen minutes are spent in field inspection of the new stores system. Next, the machine layout in the new foundry building is in- spected for the output of a new line of goods. Half an hour is taken for discussion of the plans for production of new lines of hardware. The last hour and a half, or until 5 130, is open for ap- pointments, conferences, other inspections, signing the after- PLANNING THE DAY'S WORK 125 noon's mail, and handling any other routine matters. When he goes home for the evening he sorts uncompleted work for the attention of his subordinates in the morning, if it can be handled by them, or for delay until a still later period. After that, all this executive's time is taken up for these spe- cial calls and requirements. Certain periods are set aside for the calls of the specific kinds of executives such as super- intendents, department heads, managers, and so on, and the important engagements come first in the morning so that the detail work on them may be completed during the rest of the day. If this man's work can be planned, who shall say that his own case is hopeless? Better Results from Planning The user of daily plans soon comes to recognize in them the antidote to efficiency's great enemy, aimlessness. "Our energies may be wasted and our genius misdirected," says John V. Farwell, founder of the John V. Farwell Com- pany, "unless we can guide them to definite ends; unless we can use our forces to get specific results." The man who plans the day's work does not aimlessly wonder what to do next. He knows, and knows with definite- ness, and his efforts are directed incessantly toward specific attainment. Nevertheless, in common with most things really worth while, plans require a certain discrimination both in their pre- paration and in their use. The following plan prepared by a manufacturer shows a curious lack of such discrimination. The factory hours here were from 8 to 12 and 12 145 to 5, and the president's personal schedule was found to read as follows: 8:00- 9:00 Looking over mail 9:00-10:00 Dictation of correspondence 126 THE DISPATCH OF A DAY'S WORK 10:00-11:00 Conference with sales -manager 11:00-12:00 Conference with foremen 12 :oo- i :oo Luncheon 1 :oo- 2 :oo Correspondence 2 :oo- 3 :oo Planning 3:00- 4:00 Conferences and miscellaneous 4:00- 5:00 Plant inspection This manufacturer had in his employ as sales manager an unusually competent man, but acted as his own works man- ager. Yet he spent the first two hours of the morning over his mail and correspondence, much of which pertained to the sales department and could profitably have been referred there directly, and a third hour with a man who needed little atten- tion, while affairs in the shops were scheduled to wait for attention until eleven o'clock. Again in the afternoon when he might well have been inspecting the shops or conferring with foremen, he scheduled another hour for correspondence. His tasks, no doubt, were all worth doing, but he did not put first things first. "To every thing there is a season and a time to every pur- pose under the heaven." How Much Time Is This Task Worth? In planning, give each task the time it is worth. If trifles have been eating up one's time the plan will show it. The odds and ends left hanging over when the time limits are reached prove not that a more generous allowance should be made the tasks are not worth it but that routine work must be speeded up. In delegating certain items and compressing others through short-cuts, the executive exercises constantly his sense of relative values. It is here that the ability of men such as Hugh Chalmers shows itself. Mr. Chalmers when he reaches his desk each morning has before him a list of the "Ten Most Important Things To Do Today." This list means that its PLANNING THE DAY'S WORK 127 maker is a man of discrimination, that he possesses perspec- tive. It may be worth while adding that Mr. Chalmers, the founder of the Chalmers Motor Car Company, once entered the National Cash Register Company in a very minor position, but was advanced by President Patterson until he drew an- nually a salary of $72,000. It is worthy of note here that this habit of concentrating upon the more vital matters is characteristic of most of our successful executives. It largely accounts for the fact that they are successful executives. It is important to keep a proper prospective, to recognize the essentials. Why Write Out the Plan? The plan is the product of hard thinking, and hard think- ing should not be done twice. Its first results must be pre- served and utilized and this becomes feasible only when they are recorded. "Five years of planned, attained, and recorded progress," says Harrington Emerson, "will accomplish more than twenty years of rule-of-thumb tucked away under the hats of shifting employees." The record, Mr. Emerson points out, is a ratchet, which holds on to every gain made and allows no slips back- ward. Time-tables, blue-prints, office manuals, rule books, purchasing specifications, chemical formulae, geodetic maps, legal codes, what are all these but rachets for past thoughts and guides to present effort? Moreover, the writing down of the plan increases the like- lihood that it will be carried out successfully. If his routine plan is always at hand in the form, say, of a printed memo, a man has a regular time-table to which he will keep try- ing more or less consciously to accommodate the tasks of the individual day. In Chapter IV the day's work file was 128 THE DISPATCH OF A DAY'S WORK described. The arrangement of this file, the headings of the folders, cards, etc., should be those of the routine plan. How Far Ahead to Plan While the schedules which have been shown refer in the main to one day's activities only, it is equally certain that written instructions with time limits may cover months and years. The question accordingly is pertinent, How far ahead shall the business man plan his tasks? It is evident from a study of his schedule shown on page 115, that William H. Ingersoll believes daily, weekly, and monthly planning to be practicable. It is well to note, however, from a study of this schedule sheet, Mr. Ingersoll's recognition of the fact that the more remote the task the less detailed and rigid may be its written directions and time limits. Today's schedule may be specific in its statement of tasks and allotments of time, but who can now be perfectly definite about a plan for next month, or next year ? "Unhappy the general," declared Napoleon, "who comes on the field of battle with a system." "When I have tried to plan out ahead, some duty pre- viously unforeseen has upset everything," observed William T. Stead, late editor of the English Review of Reviews. "Speaking only for myself and on the strength of my own personal experiences, I should say that I have come to believe that the best way to get the best results out of yourself for the benefit of the world is to frame your schemes as wisely and as carefully as you can with all the information and counsel you can command today, but never to cling to them tomorrow if you should be confronted by some plain, un- avoidable duty which speaks to you with the imperious au- thority of a divine call." PLANNING THE DAY'S WORK 129 What Mr. Stead rightly insists upon here is sufficient flexibility in plans so that first things may be put first. Making the Plan Fit Your Needs When it comes to putting into practice this principle of first things first, much will depend upon the nature of the posi- tion held. As a rule, the executive owing to the way he func- tions within the organization must to a certain extent always hold himself in readiness, perhaps to initiate a policy required by certain changed conditions or to sweep down upon some spot where a tangle has developed. "I handle things as they come," says W. A. Field of the Illinois Steel Company; "I am simply one cog in a big ma- chine. If I am the cog that should finish a particular piece of work, I finish it at once. If I am expected simply to give it a turn and pass it on to some one else, perhaps higher up, I do that just as promptly." In positions which involve unexpected and emergency du- ties in large proportion, the day's plan must be kept flexible. The hard and fast time-table sort, with its numerous and nar- row time limits, would be apt to hinder more than help. In order to work best here perhaps the plan ought to be shorn of its time limits entirely and become merely an order of busi- ness. (See Figure 16.) The Matter of Personality The personality of the man as well as the nature of his duties calls for consideration when the plans are prepared. Some men are like sturdy machines, able to attack any task at any time, but more of us have our fluctuations in working power moods, "off days," tired hours, and best parts of the day. Everyone is freshest in the early morning, but some men are slow starters, and do their best work toward the middle of the day. The plan should take such things Into 130 THE DISPATCH OF A DAY'S WORK 1. Attend to mail 2. Dictate 3. Decide Thompson contract 4. Decide Van North extension 5. Take up belting contracts 6. Conferences 7. Plant inspection 8. Office routine q. Tomorrow's work Figure 16. A General Manager's Daily Order of Business A general manager draws up daily what he calls his order of business. This is written on a small card and kept on his desk. consideration. Those who must work for a time before get- ting "warmed up" may begin on the morning mail, perhaps, and schedule no important things before ten or immediately after luncheon. The halves of the half-day periods, more- over, affect men differently. Some work better just after eating, others do not. The man who tires quickly should do his creative work in his fresh hours, whenever they may be, and use his fatigue hours for "hack work." When to Prepare the Plan With respect to the most feasible time for preparing the day's plan, Carroll D. Murphy submitted a questionnaire to two hundred and fifty business men and found that thirty-eight per cent preferred to prepare it in the morning, usually before opening the mail. Thirty per cent chose to plan their work the night before, so as to have clearly in mind what they must deal with the next day. On the whole, perhaps, the best re- PLANNING THE DAY'S WORK 131 suits come through getting a general idea of tomorrow's work before quitting the office but leaving all definite plans to be drawn tin the next morning. drawn up the next morning Wide Applicability of Planning. The foregoing discussion of the means for securing greater effectiveness from planning should not obscure in any way the simple main principle, that plans are of wide applica- bility and will secure for a man greatly increased results. The planner in business sets for himself a central purpose; analyzes this general purpose into its various ramifica- tions, such as methods, equipment and materials; prepares definite plans, with written instructions; and devises standard tests with which to check his progress. Under such systematic treatment, the most troublesome day's work is handled with comparative ease. EXERCISES Is Planning Practicable? You may be one of those men hard to convince that planning is practicable. "Of course," you admit, "it is perhaps all right for theorists, but it will not apply to my case." Let us see. Not long since you carried out some special project built a house, managed a picnic, handled a sales convention, ordered some ma- chinery, bought some merchandise, or what not. Use Test Chart 6 for the purpose of investigation in the case of this particular project. "If only I could do that over again !" is something we hear fre- quently reiterated; it is the wail of Hindsight. Its real antidote is Foresight. Note especially those last two columns. Of the various reduc- tions in money and time which you now see might have been made, how much would have been made had you taken the trouble to draw up an intelligent plan in advance? Write your estimate in the proper place. Look at the figures. Is planning practical? 132 THE DISPATCH OF A DAY'S WORK Planning for Others As an executive, your success is measured not by what you do but by what you get done, which is merely another way of saying that you should plan work for your subordinates. Shops working under scientific management do not rest content with designing and THINGS I DID IN THE ORDER THEY WERE DONE WASTES ENCOUN- TERED THESE WASTES MIGHT HAVE BEEN REDUCED BY MONEY TIME DOLLARS HOURS AND MINUTES TOTAL VALUE OF PLANNING (ESTI- MATE) Test Chart 6. My Experience with (Fill in name of project) drafting departments, which show what is to be done; they install planning departments, which direct how it is to be done and when it is to be done. Fruitful opportunities to plan work face every executive every day. Are shop conferences and salesmen's conferences in your organ- ization mere rambling discussions, the consensus of opinion being "We don't get anywhere"? Do your assistants waste time after they have finished one task, awaiting your directions as to what to do next? If you are obliged to be gone for a few days, do things prac- tically come to a stand-still ? Planning will remedy these evils. Planning in Daily Life Planning will also bring order and system into the details of life. In getting ready for a motor car trip, do you wear a path between PLANNING THE DAY'S WORK 133 house and car, repeatedly peering about here and there to see that everything is in readiness, only to discover later on that you are with- out the tire repair kit, the rain curtain, and the carbide? The next time you make a trip, draw a sheet of note paper from your pocket, jot down a list of the things to do, check this list before you start. When your wife asks you to make four purchases for her in the city, do you lose dollars in valuable time in walking back and forth from store to store, finally coming home elated with two supposedly satisfactory articles and the other two entirely forgotten? QUESTIONS Do I push my work or does it push me?. . . When is the most fea- sible time for me to plan ? Do I get the benefits which come from the writing of plans?. . . Are my various tasks taken up in their proper sequence ?. . . Is each task allowed the full time, but no more, of its worth?. How far ahead should I plan? Are my daily plans suited to the volume of my business?. . . . Are these plans suited to my own person- ality? MY PRESENT PRACTICE Is MY SUGGESTIONS FOR IMPROVEMENTS ARE Test Chart 7. Planning My Work 134 THE DISPATCH OF A DAY'S WORK It would be much easier and quicker to obtain specific directions to start with, and call upon the stores in order, checking each article as purchased. Carrying the analysis a step farther, it may be that your wife should have planned for all these purchases weeks ago herself. In short, opportunities for planning are practically identical with things to do; they face you at every turn. Are you in earnest ? Seize this very minute : What you can do, or dream you can, begin it. This very excellent sentiment you will put into specific terms by filling out Test Chart 7 now; theory and practice go hand in hand. CHAPTER VIII DOING THE DAY'S WORK Every one of us is conscious of a satisfaction in doing his work handily and well, in seeing the product grow under his own hands. FRANK W. TAUSSIG, Harvard University. Putting the Plan Through A genius for dispatching work, for getting through it in the shortest time possible, is essential in any great execu- tive. It does not suffice that he plan ; he must also carry out his plans. The plan stands behind the power of dispatch as its indispensable foundation, but from the pyramid builders of Egypt to the corporation officials of today, the doers of the world's work are measured by the amount accomplished; re- sults constitute their real test. The executive, his plans matured, must put them through. Concentration, decision, dispatch! These are the watch- words of modern business. Marvelous System of Dispatching The highest order of dispatching has been attained by the railroads, whose methods are thus described by Harrington Emerson : In railroad operation marvelous dispatching has been at- tained, more accurate than the seasons, more reliable than the tides, almost equal to the star time on which it is based. Lines of track nearly a thousand miles long stretch between New York and Chicago. Every switch, every grade, every curve, is known ; the line is studded with signal towers and punctuated with stations. In the round house is a locomotive with a boiler capable of 135 136 THE DISPATCH OF A DAY'S WORK carrying 225-pounds steam pressure, which through the cylinders and pistons pushes on the wheels with rims polished like glass. The rims transmit 400 horse power through a quarter-inch square of contact with a glass-smooth rail. With one load of coal, drinking from tanks as it runs, the locomotive is able to speed 140 miles at the rate of 60 miles an hour. The seventy-two to eighty-four wheel axles under the train must each run true in its box, everything in track and equipment, in men, and above all in spirit, must be in perfect order all the time. On the basis of these conditions a schedule is made out, a schedule of running time, with due allowance for grades and curves and stations, an i8-hour schedule from New York to Chicago. The train is then dispatched. The dispatchers issue orders to the conductor and to the block-signal men, thus controlling the train from both ends. While under the orders of the conductor, while physically under the control of the engineer, it is the dispatcher who from start to finish holds it in the hollow of his hand. The task here is one of accomplishment, carrying out the official plan, getting the train through on schedule whatever happens, every day in the year. It is not enough that sched- ule and arrangements have been made out with minutest care; the dispatchers must see that the thousands of pieces of their huge machine function exactly every day cars, en- gines, and track, and men. Human Traits of the Long Ago Nevertheless, the dispatching efficiency even of railroads, according to Mr. Emerson's estimate, is not over forty per cent and most organizations in this respect fall far short of the railroads. The prompt and accurate co-operation which an organization seeks from the members of its staff is not always forthcoming. The average executive fails oftener than he likes to think of to get his own daily program through on schedule time especially if he makes the needed stops for "passengers." Why is this? A traveler in Australia once engaged three natives to DOING THE DAY'S WORK 137 serve as guides into the interior, the time set for departure being early the following morning. Not a native appeared at the appointed time, nor during the entire day. The traveler, unable to account for this, began to suspect foul play, espe- cially when the second day wore along to noon with no sight of a native. About three o'clock, however, the Bushmen appeared, friendly as ever and ready to begin the journey. The amusing fact was that they failed entirely to comprehend the traveler's displeasure at their previous non-appearance. "Why," they said, "this is only the second day!" Inefficiency Still With Us Irresponsible ways, neglect of the necessary steps in carry- ing through the things we mean to do, are deep rooted in us all. In the long ages during which the ground patterns of human interests were fixed our ancestors led the simple life with responsibilities scarcely more exacting than the animals they hunted. Today a man is chosen and retained in an execu- tive position largely because his associates above, around, and below have confidence in his power of carrying respon- sibilities, of getting his train through. But he himself knows only too well how exacting is this test. Opponents the Systematic Worker Must Overcome When the business man seats himself at the desk with today's plan facing him and the hour has come for concentra- tion, decision, and dispatch, his progress is persistently threat- ened by hindrances the seven devils of obstruction we might call them : Procrastination The big dreamy idea Things forgotten Yesterday ' loose ends 138 THE DISPATCH OF A DAY'S WORK Dilatory co-operatiort Interruptions by associates and callers Round about methods Beset by these insidious foes, the expectations of the morning dwindle gradually as the day wears on until the realization becomes painfully clear that he is again falling far short of his maximum. How best clear the way of these seven devils of obstruction so that a man may dispatch his tasks with zest? The Procrastinator "Getting things done," says George Matthew Adam, "is a matter of first getting things started." The procrastinator and there are traces of him in nearly every one of us is loath to start. He surveys his problem, touches it timidly here and there, then leaning back in his office chair gazes absently out of the window and soon is lost in antibusiness reveries. Upon returning from these mind wanderings, he continually salves his conscience with such enervating excuses as : "I don't feel very good this morning," "I'm not paid to do this," or "I couldn't more than get started until someone would interrupt me anyway." After a time the procrastinator may get started, but in a half-hearted way. With everything going smoothly, he may dispatch a fair day's work, but the first hard decision, the first tangle, is his mental Waterloo. With neither definite goal nor strong motive force, he spends the hours in partially solving many problems, at the end postponing their full accomplishment till tomorrow. Tomorrow he repeats the dilatory tactics of today. The man in an executive position who procrastinates habitually will not advance far, nor in companies of any size and progressiveness will he last long. If a subordinate he DOING THE DAY'S WORK 139 will be dropped; if himself in charge, the business will go to pieces under him. But trouble comes with the occasional procrastinator, the man who has an off-day now and then. Neither he nor anyone else can figure his time loss. The difficulty here results from failure to use will-power. It requires motive force, resolution, decision of character, to begin a task promptly and push it right through to comple- tion. Such power of will can be developed for every one of us, and it can be supported also by right habits of work, as will be seen in later chapters. The Biff Dreamy Idea The big dreamy idea is perhaps the most productive of all the obstructors. It holds the attention rapt with its vision of things to be, at the same time deftly substituting wishbone for backbone. Its victims we meet in the market place. We all know the day-dreamer in the market place. Inven- tors exhibit momentous discoveries, contrivances which will extract gold from sea water or produce gasoline at one cent a gallon or prevent forever railroad wrecks. Experts glow- ingly unfold schemes for binding capital and labor together as one, or of speculating on the "sure thing" basis, or of living in some Eden bower without toil and without price. Yet the possessors of such gorgeous plans are themselves commonly of seedy appearance, wearers of threadbare coats, patronizers of the lunch counter, and not averse to borrowing a "five." It may seem a far cry from such seedy persons to any man actually managing his own business, or in a responsible posi- tion with any large concern. But the distance is often less than we think. Especially in a great organization where motion has to be passed along through many steps, where it takes time to get a thing done even to get it rightly planned the bureau heads, that is, the executives concerned, often fail to "get down to 140 THE DISPATCH OF A DAY'S WORK brass tacKs." When a large part of a project must be carried through by others to whom a certain leeway must be left, it is harder for the executive to visualize the task than when he has to carry it through with his own hands. For example, a member of Congress will make an inquiry of a government department which involves weeks of work by the clerks. In a big organization with big resources and elaborate methods, almost always a certain large, extravagant, indefinite way of looking at facts is bred in certain of the executive officials. The vision which flits into the mind may be priceless; yet its pricelessness is due to its realization, not to its concep- tion. Every idea, or scheme, however far-reaching, must precipitate itself in some definite tangible action. Otherwise it has no place in the day's schedule. The business train is not to be stopped in order that the executives may gaze dreamily at the scenery. An Always Available Stock of Raw Materials He who would concentrate, decide, and dispatch must have the raw materials with which to work. Things forgot- ten indicate that certain raw materials are lacking, and like an engine minus connecting rod the mental processes are halted. As an example of poor dispatching the forgetful man takes high rank. He wastes time and effort in wondering what to do next, still more time in trying to recall the raw materials necessary, and to the end he fears to decide because the evidence flitting elusively here and there within the mind renders decision uncertain and unsafe. What would happen to an express train run according to such methods? What would happen to an ocean liner whose sole guidance was a captain thus tossed about by a treacherous memory? Neither railroad company nor steamship line accept such risks, nor should the man at the desk. DOING THE DAY'S WORK ! 4I The suggestions given in previous chapters, while they cannot be called infallible, do nevertheless enable the execu- tive to keep always at hand in files and memory, stores of raw materials, and thus overcome in great measure the ob- struction of things forgotten. Yesterday Is Dead; Be Done With It Yesterday's loose ends, if left over for today, are time- consumers. They drag on: they clutter up the desk; they confuse the mind; they multiply until clear-cut thinking is aborted and the energy which might have brought about defi- nite accomplishment expends itself in half-hearted attempts. The only way to deal with yesterday's loose ends is to do things to a finish, today. Some practical aids for carrying out this policy of doing things to a finish have already been discussed. The flat-top desk encourages a definite, clean-cut dispatch of the tasks one has to do. The day's work file removes from view masses of miscellaneous, confused material sorts them, too, and holds them in readiness. The hold-over file and the tickler remove the uncertainty and vagueness from even uncompleted work; they show specifically what comes next. The plan, with its time limits, still further focuses effort upon certain definite accomplishments. The Waste-Basket as an Ally A further effective aid in having done with things now is the waste-basket. Its yawning cavern may call forth exe- crations from advertisers and letter writers in quest of orders, but it stands for wholesome thinking. The man who, on the vague supposition that "some day I might want to do some- thing with these things," hides away papers here and there until his desk is a junk heap, gets choked up mentally. His practice encourages the habit of indecision. If, instead, each 142 THE DISPATCH OF A DAY'S WORK paper or item as it appears at the desk is judged according to its actual value, the mind as well as the desk receives a good house cleaning. Use the waste-basket more! With these mechanical aids as allies, attack the work at the desk. Proceed calmly, systematically, forcefully. Carry every piece of business through to a definite conclusion. Dilatory Co-operation The business man works not as an individual merely, but as a cog in his industrial machine. His personal efforts are dependent upon what others do, and these others are often dilatory co-operators. Practically everyone, especially after he has undergone a series of committee meetings or confer- ences, appreciates the jest that "co-operation is the thief of time!" The chief remedy for dilatory co-operation is care in planning. The average business man escapes if he can the task of sys- tematically planning a job, and passes his ill-assorted directions along to others, who as a rule are similarly delinquent. There- by he initiates a series of difficulties, which in spite of heroic efforts here and there, are almost certain to delay the final results. Consider the printer as a typical victim. What tales he can unfold of rush orders, of missing parts of the copy, of last-minute changes, of telegrams to the engraver, and mes- senger boys to the foundry, of threats and pleadings for what would have been delivered days since had it only been planned properly ! Getting things done through co-operation necessarily re- quires time. But this time can be materially shortened if the initiator of the task plans for its accomplishment all the way through, takes into account the individuality and spe- cial conditions of the other persons concerned, assigns its various parts in due season, makes tickler records of the dates DOING THE DAY'S WORK I43 when results are due, and notifies promptly any delinquent. If system is worth while to the individual in general, it even more truly serves the man who works with others. Interruptions By House Men The executive, industrious though he may be in pushing his own tasks, may see his program hopelessly delayed unless he can defend his time from unwarranted interruptions. Some of the interruptions come from within the organiza- tion, from his associates, subordinates, and superiors. It is pretty well recognized in the factory that continuous oper- ation is necessary for maximum output, hence shut-downs are guarded against. It is by no means, however, so generally recognized in the executive office that steady work means larger mental output and that interruption here is quite as serious as shut-downs in the machine shop. As a result, house men are constant offenders. Much of this promiscuous visiting will be avoided if each official follows the plan outlined in Chapter IV, of assigning pockets in the day's work file to his various co-workers and, by placing in these pockets all items having to do with a cer- tain co-operator, makes one conference with him take the place of many. A General Office Schedule This plan if carried a step further involves the drawing up of a general office schedule, with which the various indi- vidual schedules are correlated. An example is here given of such a schedule as it has been worked out in a New York office and, it may be added, used with salutary effect. (See Figure 17.) The same idea has been applied witn even greater elabo- rateness and entire success by a large manufacturing com- pany. (See Figure 18.) 144 THE DISPATCH OF A DAY'S WORK OFFICE SCHEDULE In order to reduce the number of interruptions to a mini- mum, all members are requested to adhere as strictly as pos- sible to the following schedule : 8:45-9:30 Preparation Reading mail, memos, interphone calls, interviews with- out appointment, and other preparatory steps required. 9:30-12:30 Business All work requiring concentration. Interviews during this time only by appointment. No interphone calls or memos unless absolutely necessary. 12:30-2:15 Preparation Luncheon and informal conferences, memos, interphone calls, interviews without appointment. 2:15-4:00 Business Same as from 9:30-12:30. Concentrate upon your own work and permit others to do the same by reducing in- terruptions to a minimum. 4 :oo~5 :oo Miscellaneous Sign mail, interview without appointment, informal con- ferences, planning work for tomorrow, and the like. Outside callers, in so far as this is practicable, should be handled according to the above schedule. No member is expected to break these rules without valid excuse, which is to be given at time of interruption to the person disturbed. Figure 17. Office Schedule In order to secure more effective co-operation among the members of its office force, a New York concern devised this office schedule. DOING THE DAY'S WORK 145 In adopting such a schedule, particularly in deciding upon the classes of work and their respective hours, full considera- tion must be given to the office involved. In general, minute subdivision and close scheduling should be avoided. While it doubtless may be that a schedule common to all its desk-workers cannot be introduced with profit into every office, the idea behind the schedule is neither its classifications nor time limits nor printed form, but an attempt to attain more orderly procedure. This idea, once it is grasped, may possibly be sufficient in itself to reduce house interruptions to a permissible quantity. Co-workers taught that concentration is the ideal and interruption a sin to be avoided, will become apologetic and brief when they do interrupt. The Problem of Handling Callers The interruptions of members of the force are commonly less troublesome to the executive than his outside callers. No business man can absolutely refuse to receive callers; still, their visits have only a certain value to him and the problem is how to secure this value within the proper time limits. The problem is as serious for the man in charge of a depart- ment as for the president of the company, more serious in- deed, in a great many cases, because he has fewer de- fenses. The policy of keeping the door always open and then getting rid of unwelcome callers by sheer brusqueness may have served very well heretofore, but has been discarded today. Under the growth of organized enterprise, the time of the executive, whether president or bureau head, has become too valuable for promiscuous visitors; at the same time the increased appreciation of the value of business courtesy pro- hibits the use of brusqueness or incivility as a defense. Callers must be admitted with discrimination and their stay terminated with courtesy. 146 THE DISPATCH OF A DAY'S WORK STTERDEPAIiTMENTAL SCHEDULE REQUESTED TO CO-OPERATE BY MAKING APPOINTMENTS IN ADVANCE 1! 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Commi W. . . . Develo PB. . . Purch GFV-EKFV GXF EKXF GXV-EKXV 8B 400 19-1 Symbol DOING THE DAY'S WORK 147 The Selection of Callers In the selection of callers, sometimes it is a diplomatic young man bearing some impressive title such as "Assistant to the President/' or ''Executive Assistant," who learns the nature of the visitor's errand and proceeds to make the neces- sary adjustments. Sometimes the private secretary or the switchboard operator performs these same functions. Some- times the office boy meets the caller with a card and the polite request that he will write his name and a message. The card is then duly passed upon behind the scenes. The executive by some such methods as these closes the door against unimportant callers. Yet there are shrewd pickers of locks on the outside. The Growing Aggressiveness of Callers In books on salesmanship these lock-pickers have their courage whetted by such statements as, "There are a few men a very few who are mighty hard to see. A salesman must try everlastingly to find a way to get in instead of sitting back and proving to himself that it is impossible. When he has finally decided that it cannot be done, he will be obliged to watch some fellow in the same line come along, get in, and make the sale. It should be remembered, always, that there are some men who are getting in; there are some men from whom the prospect is buying. Be one of them." In sales magazines and at every gathering of salesmen, stories on "How I got by those secretaries," are related with pride. "A clerk at the information desk," so runs one of these stories, "asked me, 'Whom do you wish to see?' "'I don't wish anything I came to see Mr. Jennings,' I replied. Tell him I have arrived the name is McClure.' "The girl, impelled by the assurance I put into my com- 148 THE DISPATCH OF A DAY'S WORK kx_- m w z tn u < -- - c o E -= b E _ c O 1 o a S- c 0.0 < (O S.E ~ >- "c c w -p " bo . , 3 ES> .5 i| ^ ca s ^^ "^ I l : S Eg I 1 3 . bO o i .2 ^ 3 DOING THE DAY'S WORK ! 49 mand, hesitated, then telephoned to Mr. Jennings that 'Mr. McClure had arrived.' Mr. Jennings came out." The particular "obstacles between you and your prospect" are analyzed by alert sales managers, remedies appropriate for each are devised, and the whole scheme charted for the edification of their men. (See Figure 19.) The view current today that all men are salesmen, en- gaged in the marketing either of commodities or their own services, in itself exalts aggressiveness and shrewdness in reaching the person with whom an interview is sought. How Shall the Executive Protect His Time? What does all this mean to the man in the office, who has his tasks to get through on schedule time? Simply that the forces of attack are growing stronger; to protect himself, he must necessarily strengthen his forces of defense. Judge Gary, Chairman of the Board of Directors of the United States Steel Corporation, meets callers by appoint- ment, a plan which he adheres to rather strictly. It is said that an executive from a prominent Chicago manufacturing house, armed with a letter of introduction from the Presi- dent of the American Bridge Company, one day walked unannounced into Judge Gary's anteroom. He had made a special trip to New York to see the Chairman. After a three days' wait he returned to Chicago with his errand unfulfilled. A few weeks later he returned, this time by appointment, interviewed Judge Gary without delay, and closed an impor- tant deal. "Judge Gary's time is sometimes filled for a few weeks ahead," explained his private secretary. "However important the unexpected visitor, the Chairman cannot always drop his work or break engagements to see him. Unless the visitor can transact his business with other officers of the company, THE DISPATCH OF A DAY'S WORK he must make his appointment through me and wait until Judge Gary can see him." The president of a Chicago wholesale house, working upon the principle that it is easier to keep callers out than to get them to go on time, admits no caller directly to his private office. Instead the president leaves his office, usually with some papers in his hand, and greets the caller who remains out- side the "dead line" railing. Should a short private discus- sion appear desirable, the president invites the caller inside the railing with some such remark as : "Come inside a minute or two." This time limit acts as a warning suggestion, which is reinforced by the handful of papers and, if necessary, by the president's statement that he must get back to his desk. "Once he lands in a chair, it's practically impossible to get a man out without dynamiting him until he has told the whole story," says this executive in explaining his procedure. Shortening the Caller's Stay Trouble may also be forestalled by granting the caller a definite amount of time in advance. "I have a meeting this morning at ten," a traction executive told his visitor, "which gives me fifteen minutes now. I will be back at half-past one and will then have a half-hour before two o'clock, when I have another engagement. If fifteen minutes will do, I wish you would come in now; if it will take longer, suppose you come around this afternoon." Such a simple and straightforward statement gives no offense, but it usually does condense into a few minutes what otherwise might be a prolonged interview. Once the caller has been admitted, the time should be spent profitably. The caller, it is presumed by the fact of his admit- tance, has a mission which the executive considers worth his while and upon this mission accordingly both men should focus their attention; irrelevancies are time wasters to be 15* avoided. "If you want to get the most from the other fel- low," says a newspaper executive, "never talk about your- self nor permit him to talk about you." In practice this policy may require a certain amount of planning for each interview; otherwise time is liable to be consumed on non-essentials while some main point possibly will be overlooked entirely. "I keep at hand," says a real estate executive, "a list of things to be taken up personally with different people who come into the office. When an habitual caller is announced, it takes but the time that he is walking from the outside office to my door to glance at his record card and prime myself for the interview. When he comes in I know exactly what I want to talk over with him and I shape the interview accordingly. "I never let a man saunter in and talk at random by way of preamble. I get my business through with him first, close it off, and have that much done, then I ask him what he wants of me and am able to get through with the rest of his call in record time." Closing the Interview The interview, even though kept in fruitful channels, after a time reaches the point when its prolongation would mean waste. How terminate it ? Various expedients will be mentioned. As to their use it may be said in general : ( i ) choose whichever expedient seems best suited to your own personality and that of your caller; and (2) commence with delicate hints and gradually work toward the more extreme measures, meanwhile balancing against the risks involved by the caller's possible resentment, your own certain loss in personal efficiency. A hint which suffices for some callers is a remark such as "I'm glad to have had this opportunity to talk with you," 152 THE DISPATCH OF A DAY'S WORK or "It's a pleasure to have met you. Come in again some time." Rising as a sign the interview is terminated, looking at the clock, or drawing out upon the desk in plain sight a formi- dable pile of work, are somewhat stronger hints that it is time to go. According to a certain charming method which, however, requires a high degree of diplomacy on the part of its user, the host rises, reaches out to shake hands, and then while cordially retaining the caller's handclasp gently leads him to the door with a few final words on the subject of the call and a pleasant farewell. The visitor finds himself outside though scarcely conscious of how he got there, and the door is closed. Since they recognize that any caller once comfortably seated in a quiet private office is liable to overstay, some executives contrive to give a visitor as he enters the sub- conscious feeling that he is just about to depart. It may be that no chairs are provided. The executive sits, the visitor stands, unless he is one to whom this would be a distinct dis- courtesy, in which case both men stand. Or again, the office door is left wide open and the caller is seated where he cannot avoid seeing that others are waiting outside. Should this not have the desired effect, the secretary is signaled to usher in one of those waiting and the newcomer, on being shown a seat, is informed he will receive attention in a minute or two. The Distress Signal Another general means for terminating the interview maj be called distress signals, to which executives in especially exposed positions sometimes have recourse. The most com- mon of these is the electric buzzer, concealed somewhere on the desk or floor where it may be pressed unobtrusively. As soon as the emergency signal has sounded outside, an assist- ant or secretary appears who apologizes for the interruption, DOING THE DAY'S WORK 153 but is obliged to bring up such and such a matter for imme- diate action, and he stands waiting as the caller makes his exit. Sometimes the assistant on receiving the signal calls up on the phone, representing himself as a house man desiring to settle an important matter and forcing from the executive a promise to confer with him inside of five minutes; the visitor, overhearing the conversation, takes hurried leave. The story is told of a prominent exporter who, wishing to terminate an interview, in the most charmingly informal manner lights a cigar, strolls over to a window, spreads his legs apart, and with hands folded behind his back seemingly prepares to continue the conversation at his ease. But to the secretary sitting just outside the glass door, this naive attitude of his employer constitutes a distress signal. He sweeps in with a huge handful of "important papers which must be attended to at once in order to catch a foreign mail." The caller thereupon is ushered out with expressions of regret. Who Else Is Waiting? In deciding whether or not to close the interview, the executive discovers oftentimes that much depends upon what callers, if any, are waiting outside to see him. In some cases the secretary is left in control of this matter, it being his function to signaj the employer by buzzer when an important caller has arrived. The chief may or may not communicate with him further before taking leave of his present caller, much depending upon the secretary's proficiency. For handling cases such as these the telautograph is use- ful. Should a caller be staying rather long, the executive by taking up his electric pencil inquires as to who is waiting out- side. The secretary, by using a similar pencil, replies that Mr. Blank is there; upon the receipt of the information the executive can arrange his time accordingly. After all is said, however, the reception of callers is one 154 THE DISPATCH OF A DAY'S WORK of the important duties of practically every man who has executive work. His purpose is to accomplish as much as possible during the time which his program permits. President Roosevelt and His Callers The classic example of successful management of callers is the account by George Fitch, in The American Magazine, of President Roosevelt in the White House. The writer of the account had called upon the President accompanied by his Congressman. As we finished our inspection, which included a view of the President's desk in his private office, the President came out and began working his way rapidly through the callers, taking one group at a time, and using both hands and voice incessantly. . . . As he worked each group he sorted out the visitors ard classified them. Some he merely greeted cordially. Others he asked to stand aside a minute for fur- ther remarks. Still others were asked to step into his office and wait for him. Then, after having rough-finished half a dozen groups, the president would go back and work over the debris. It was then that we saw him in real action. He told a story and arrived at the point with a deep, chuckly laugh which pervaded his entire system and was reflected from every tooth a regular mouthful of glee. He frowned tre- mendously and a pent-up epigram exploded with a loud bang; he suddenly reached forward and bit the atmosphere in two while emphasizing a word. He reached a woman caller and his entire personality dissolved and changed like a river mist. Bowing low as he shook hands, he greeted her with an old- fashioned courtesy and a soft-voiced deference to woman- kind that was most attractive. Passing on, he heard a propo- sition and dismissed it with two "noes" that would have cut a ship's cable in two all in good humor and friendliness. Then, remembering a group which he had sent into his office to be digested, he hurried in to them and considered their case. . . . The Congressman in seeking a better opportunity for his visitor to talk with the President blurted out, "Mr. Presi- dent, I am on the sub-committee on fortifications." Mr. DOING THE DAY'S WORK I55 Roosevelt immediately drew the little group into a corner, where he at once plunged into affairs of state. He took the lid right off of the international pot and let us look in. ... As I remember it now, we had really looked on open-mouthed for fifteen minutes a fear comes over me that it was really only two and that at the end of that time the President, having said what was uppermost in his mind, had terminated the interview. That is the funny thing about it. We came away feeling as if we had terminated the interview. They say everybody does that no one stays a minute longer than the President wants him to and yet no one knows how the President does it. At a certain moment the visitor clutches his hat convulsively and the President, overcoming his dis- appointment, manfully bids him goodbye. But what makes the visitor clutch his hat? The explana- tion is simple. Roosevelt himself dominated the interview. Dominating the Interview The spineless caller who hangs on rather than make the effort required to break away, must have his mind made up for him. The persistent stayer who remains to urge again and again a project against which his host has already decided, must have his views definitely reshaped. Positiveness of manner accomplishes this. If the executive impresses his callers as a man of infinite leisure, most of them will stay too long. If he does not get quickly to the point, many of them, if they do business, will have to stay too long. The best method of saving time in an interview is for the executive himself to serve as an example of what both men should do, viz., concentrate, decide, dispatch. EXERCISES Wasting Time Several salesmen met in Boston some time since for a little get- together. One of them, the manager of a New England territory, I5 6 THE DISPATCH OF A DAY'S WORK took the floor. His remarks are thus reported by an unofficial secre- tary: "He first pointed out that life consists of fads. He had one at the moment and it consisted of a constant analysis of the way he occupies his time. "He approached his topic by showing us how he had analyzed his expenditures over a period of two years; and the revelations that this analysis had exposed. For about two months he had carefully ana- lyzed his time in much the same way and the revelations were indeed startling. "Time, he pointed out, is our most valuable asset. Not alone in dollars and cents but in that far more valuable commodity mental growth. "He had divided his time into two parts productive and unpro- ductive. And these again he subdivided into logical divisions. "He quoted from memory and here is the result 1. Productive (a) Constructive business-getting time (b) Avocation (not mere diversion) (c) Reading (1) Solid (2) Light (d) Exercise etc., etc. 2. Unproductive (a) Meals (b) Bed (c) Chores (d) Diversion (e) Idleness etc., etc. "As a result he had discovered several important facts: "l. That he had been deceiving himself about the amount of work, business-getting work, that he had been doing. "2. That four hours each day were absolutely unaccounted for wasted in pure idleness. "3. That the daily round showed lack of steadiness. "As a matter of fact the real worth and object of such an analysis is to cultivate steadiness; the steadiness of the six-cylinder which keeps on chug-chugging all the time and not in spurts. "Bert had discovered that his days were irregular in the extreme. One day so much work done ; next day not nearly so much ; one day so much time given to meals; next day far too much. DOING THE DAY'S WORK 157 "His analysis showed him the necessity of proper allocation of time for work, meals, sleep, exercise, etc., each day." This salesman-manager has an income running well into five fig- ures, so he cannot very well be accused of being a mere theorist. He emphasized an idea well worth while ; time is a most valuable asset and everyone should make an analysis to see how his is being spent. For two or three days keep accurate record in minutes of all time spent from 9 A.M. to 5 P.M., or whatever your regular hours are. Do not postpone this recording until the close of the day, but jot down the minutes as you go along, five for mind wandering, ten for wor- rying, etc. Be honest with yourself in this, too; the question is not at all whether you like the showing made but solely what are the facts? The time spent on some of these things is not entirely wasted, as, for instance, during a ten-minute gossip something may be said which in the way it fits into the day's work may be worth two minutes; this two minutes accordingly would be placed in a second column as a credit. Your percentage of efficiency, however low it may be, undoubtedly shows higher in this computation than your working methods ac- tually justify. The reason is that even with the most careful re- cording a great many minutes will not be accounted for, probably wasted, whereas in the above records all time not accounted for is credited as being properly spent. Are you satisfied with this percentage of efficiency? Or do you find, as did this sales manager, that you have been deceiving yourself about the amount of time devoted to productive work? Your Own Record Do I or do I not dispatch my work on schedule time? Within the big organization where your working days are spent, you already have a reputation for promptness in meeting your obli- gations or you are known as a person whose laxness in dispatching continually delays the business game. Because so many men are addicted to this latter practice and yet wish to escape the conse- quences, poor dispatching naturally associates itself with countless attempts to "pass the buck." We shall employ Test Chart 8 as a check upon ourselves. The twelve pieces of work selected ought not to be trivial matters but tasks for which a fair amount of preparation is required. The first two causes of delay specified in the form have been discussed in the present chapter; the five factors in planning are object, methods, equipment, materials, and schedules; and the seven devils are pro- crastination, the day-dream, things forgotten, yesterday's loose ends, 158 THE DISPATCH OF A DAY'S WORK dilatory co-operation, interruptions by associates, and round-about methods. A delay may be due, of course, to more than one cause. Use check marks for the replies when this is possible. When Test Chart 8 has been completed, survey the result. Frankly, what is your opinion of yourself as a dispatcher? TWELVE PIECES OF WORK RE- CENTLY C M - PLETED CONDITION OF DISPATCH CAUSE OF DELAY COM- PLETED xw TIME NUMBER DELAYED TIME DELAYED FAULTY PLAN- NING SEVEN DEVILS OTHER CAUSES Test Chart 8. My Record as a Dispatcher Improvement Some improvement doubtless is in order. Follow the specific plans you have outlined for yourself according to Chapter V, and during the next month, two months, or whatever definite time you set for yourself, seek in every possible task to eliminate wastes in time. Use your specific plans in cutting directly to the goal, make every moment and every motion result getting. At the end of the period set, once more use Test Chart 8 to enter your record of accomplishment for two days or so. How goes your improvement? CHAPTER IX SHORT-CUTS A straight line is the shortest distance between two points. -Euclid. Amateur Versus Expert The man intent upon dispatching his day's work upon schedule time, but apparently unable to do so will discover possibly that like a Bostonian upon the winding streets of his city, he has been proceeding most indirectly to the goal. The solution here is a short-cut. The insistence upon short-cuts is not a foible of the scien- tific manager, but is based upon the very nature of things. Tyrus Cobb at the plate is much less given to motions than is the usual amateur batsman, but he has his eye on the ball and he "connects" with it. Tris Speaker in the outfield chases back and forth considerably less than the bush leaguer, but when he does move it is in the right direction. Rose Fritz, the world's champion typist, in her speed contests is apt to deceive the onlooker, for even as a record is being broken her fingers glide easily over the keys. The amateur, in general, attains his end by roundabout methods; the expert uses short-cuts. A Lesson from Animal Psychology The psychology upon which the principle of short-cuts is based is illustrated in a very interesting way by a series of experiments Professor Thorndike performed with a cat. The animal was placed inside a closed box, which was con- structed of slats and could be opened by means of a wire loop which hung from the ceiling. 159 160 THE DISPATCH OF A DAY'S WORK When first put into the box the cat commenced to struggle vigorously, tried to squeeze between the slats, clawed and bit at the bars, and even thrust its paws through the openings and clawed at whatever it could reach outside. In the course of its clawing and biting, it by and by attacked the suspended loop, whereupon the door opened and it was free. In suc- ceeding attempts, improvement was shown; the animal which in its first attempt to escape consumed 160 seconds, in its twelfth attempt consumed only 20, and in its twenty-fourth consumed but 7. The various non-successful motions were eliminated; the necessary motions were used at once. Short-Cuts Represent Perfected Methods What we have here, if the time periods required are plotted graphically, is a curve of learning. First attempts are found to be crude, wasteful, time consuming; succeeding attempts bring about continuous improvement until the minimum of time and effort is expended, which means that normally crude and wasteful methods are replaced by short-cuts. The prin- ciple involved is true even for the executive in his private office. The man who would be expert, no matter what his posi- tion, must adopt short-cuts. The following short-cuts are illustrative of a line of thought which may profitably be carried much further. Conservation of Time The buyer for a machinery jobbing house, who meets many callers, fitted out his office with two work places. "If I am talking to one man when another arrives," he explained, "I ask the second to go to the vacant desk and prepare what- ever he may have to show. "If the salesman I am talking with is inclined to overstay his welcome, I explain that I feel I should not keep the other SHORT-CUTS !6i man waiting. In this way I can excuse myself gracefully, leaving the first caller to put away his samples or photographs while I go to the other. "Similarly, when I am through w r ith the next man, I re- turn to the desk, while the second caller puts his paraphernalia away. You may not imagine that this saves me much time in the course of a day, but it does." Fill in the vacant periods : hoard the minutes. A trade paper, a book, some reports, routine correspond- ence, an unexpected caller, a short period of calisthenics, these are some of the many items which may be sandwiched into the vacant period. Keep 9:00 A.M. to 5:00 P.M. sacred for work, its minutes packed with accomplishment. Business Time for Business Keep free from personal visitors and personal matters during the business day. The firm in paying your salary has first claim to your time and energies. Some Things Not To Do Do not sharpen pencils, fill fountain pens, nor run errands. Your time is high-priced, and the firm loses whenever a high- salaried man performs low-priced tasks. Supervising from the Office Office partitions of clear glass enable a manager to work at his desk and supervise at the same time. These partitions afford him good light, air, warmth and comfort, and keep him in sight of his men. Words versus Check Marks Checking is quicker than writing, and for many purposes is entirely adequate. (See Figure 20.) In drawing up record blanks, routing sheets, reference forms, and the like, 1 62 THE DISPATCH OF A DAY'S WORK provide for checking instead of writing whenever a check mark will serve. Ref Mr u a a a tt OFFICE OF THE GENERAL MANAGER Date, December 20, 1918 erred to Alcorn Mr. Murrell Andler " Pearson Berwin " Peters Bickerstoff " Peterson Burger " Roswell Eldridge For attention Ewell approval Frome comment Harris " report Hylan " reading Mallory " reply direct Martin " return to G. M IV^onroe " file .. Figure 20. Checking System When a busy executive has a number of papers to pass along, the addressing of them for the inter-organization delivery and the noting upon each the directions required becomes a considerable task. The use of such a blank as here shown simpli- fies the process materially. Use of Both Hands Use both hands whenever the work can thereby be ex- pedited. Just because a man happens to be right-handed is no reason for the left hand to serve only as a paper weight. Head versus Heels In a wholesale grocery house which was suffering from rapid growth, each individual order was turned over to a clerk who checked off the items of that order consecutively as he filled them. This plan required many clerks and the stock- room was a scene of incessant activity with much rushing back and forth. The clerks were paid a very low wage ($8 per SHORT-CUTS 163 week), but the cost of filling orders was high; still they "had always done it that way." Finally the congestion and delay became too great and as the next move, each clerk was given six orders to fill simultaneously as he went from place to place. This and the installation of a general trucking system, caused a decided improvement. Following this, the stockroom was departmentalized, the required number of order fillers sta- tioned in each section, and the items of the order itself were distributed from the office to the departments and assembled in the shipping room. Wages were advanced twenty-five per cent, but the cost of filling orders was reduced fifteen per cent, because the clerks spent less time in walking and more time in taking goods from the shelves. Dispatch several items on one trip. Starting and Stopping The office manual and the office clock call for every minute of the business man's time with an interval for lunch from 9 in the morning till 5 in the evening. During these hours he should be pushing the business incessantly. But the average man is a trimmer. He starts tardily and quits over-early. It is true that the foes of system the seven little devils perched upon the desk all day long are 'especially insistent at these times; nevertheless, they can and should be ousted. Get under way promptly : keep under way to the close. Day's Work Plan for the Secretary The time spent in giving the secretary his directions can be cut down by arranging with him a day's work plan. Such a plan will care for all regular items and its flexibility permits the handling of specials. Filing Short-Cuts In filing large numbers of cards or other material, a pre- liminary assorting cuts down considerably the time required. 164 THE DISPATCH OF A DAY'S WORK A box fitted with press-board guides serves very well for arranging correspondence for filing, a distributor with fan- like leaves is handy if the classes are not numerous. An or- dinary sheet of cardboard properly ruled will handle small cards very well. Should the cards be 3 x 6-inch squares for example, mark off a 24 x 3O-inch cardboard into 4 x 6-inch squares and letter these in alphabetical order, the latter in each case being placed near the top line of the square. Sort the cards out upon the proper squares, then file them into the card index. Use of Symbols Multum in parvo is attained by using symbols. E. St. Elmo Lewis by jotting a figure on the pages of a trade paper in effect tells his secretary, "Clip this article at your convenience, place it among the other papers in the file basket, and later on when you dispose of these see that this one gets into the proper cabinet, behind the tab marked '21' ' Figures express his filing system in code. Professor Hotchkiss in correcting his English themes pro- vides his students a full lesson on the principles of business composition though he jots only a few figures on the page. These figures in each case refer to rules and references which appear in printed form upon the margin, and hence can readily be consulted. Standarize, then express the standard by a symbol. Preparation for Dictation When about to take up a batch of letters for disposal, many men without first ascertaining that they are ready to dic- tate, press the buzzer for a stenographer. It is only after the young lady appears, ready for her part of the task, that they discover that some necessary folder has not yet been secured from the file, that certain estimates are still to be decided upon, SHORT-CUTS 165 or perhaps that a required conference remains to be held. In short, they are not ready to dictate and they discover this fact too late. Always be ready to dictate when the stenographer is called. It is true that her time is less expensive than an official's, yet even less expensive time should not be wasted. Moreover, some of the worst offenders in this respect are usually men whose salaries are little beyond that of a first-class stenog- rapher. Speed in Dictating Dictate rapidly. The attempt itself stimulates thought, and is conducive to that quick, vigorous diction before which correspondence melts away. Elimination of Wasteful Details In answering a number of letters do not dictate the full name and address of each correspondent. This is time-con- suming because the stenographer must write much of it in long hand, and quite needless since such details can readily be copied from the letter replied to, if this is turned over to her. As you reply to letter after letter, number each in order and dictate merely this number. Dispatch in Handling Correspondence Men commonly read their mail twice, once to get a general idea of its import and urgency, and the second time to give it detailed consideration. Condense most of this into the first reading. Dispatch the easy ones with finality; assort the re- mainder into the day's work file, at the same time underscor- ing significant words or phrases. In dictating later on you will be saved time which would otherwise be spent upon irrele- vant details. 166 THE DISPATCH OF A DAY'S WORK Color Schemes A color scheme in the office can at times be made to serve a most useful purpose. One general manager, for example, assigns each department a color red for the purchasing, blue for the accounting, green for the production, etc. and the de- partmental color identifies all the forms and memoranda which are issued. Another employs colors to indicate different de- grees of urgency. Papers in red must receive immediate at- tention, those in blue are to be disposed of today, and the white in the regular routine. The scheme is really nothing more than a color code, the various colors as symbols, repre- senting whatever information has been previously decided upon. Carbon Copies Copying, which the use of carbon might have obviated, is unbusinesslike. It has become almost second nature for typ- ists in transcribing dictation to make one or more copies at the same time, but this is only one of the many uses to which carbon sheets can be put. In most offices there are many other chances for saving by means of carbon copies, which as yet are overlooked. Machines for Dictation The dictating machine possesses certain advantages. It is always ready ; whether one gets down to the office an hour ahead of his stenographic force or prefers to dictate after office hours or at home in the evenings, he need only start the machine and talk. The machine has no speed limit. The man who dictates like a "whirlwind" finds no brakes set upon his pace; the man who makes long stops in order to think out a hard letter or to hunt some necessary data, may do so without wasting anyone else's time. SHORT-CUTS 167 The accuracy of the typed matter is commonly increased. There is many a slip between what the dictator says and the stenographer types slight inaccuracies no doubt, but fre- quently embarrassing. The wax cylinder records faithfully what is entrusted to it and the typist, by using the back spacer, may have this repeated any number of times. The machine also frees the typist from interruptions. When busy with filing, typing, or other duties, she is not obliged to drop them upon signal that her employer has thought of a letter or memorandum he wants to get off his mind. Considerable criticism has been directed toward these ma- chines, both by typists and dictators. The real source of these criticisms probably lies in faulty dictation. The man who speaks directly into the mouthpiece and enunciates his words clearly, turns out cylinders which a typist has no diffi- culty in transcribing. The Automatic Correspondent Those who handle a large volume of correspondence, par- ticularly when the subject matter is limited, find themselves day after day going over pretty much the same ground. Orders, complaints, collections, sales talk each of these topics constitutes a class within which exists a certain sameness and the letters to a hundred men in this class are often practically identical. When the tongue slips into well-worn combinations of words and the task of dictation becomes monotonous, it is a signal that short-cuts are overdue. Many practical schemes are available to solve this prob- lem. These are occasionally subjected to criticism by those who claim the letters produced are inferior. But what con- stitutes a good letter? Is it not, after all, one that produces the desired effect? Does it give the inquirer the information he wants? Does it convince the prospect he needs the prod- !68 THE DISPATCH OF A DAY'S WORK uct? Does it get the money and yet retain the customer's good-will? Should a form letter with a fill-in prove able to do these things, it constitutes a good letter and hence is worth using. As a matter of practice, the man who analyzes his cor- respondence can frequently, without any loss in effectiveness, turn over a hundred names to a typist with the single state- ment, "Send them letter number 4." In an Eastern stove factory the overworked head of the correspondence department was prevailed upon to use these form paragraphs, and the account of his experience will sug- gest how they may be adapted to any business. As a start, the typists were instructed to make an extra carbon copy of every letter sent out during the next two weeks. The follow- ing subject outline was then drawn up : Sales : 1-199 Openers I- 24 Description of stoves 25- 49 Testimonials 50- 74 Price 75- 99 Service department 100-124 How to order 125-149 Miscellaneous 150-174 Closers 175-199 Orders: 200-399 Openers 200-224 Filled as ordered 225-249 Filled with changes 250-274 Cannot fill 2 75-299 Sending bill 300-324 Miscellaneous 325-374 Closers 375~399 Complaints: 400-599 Openers 400-424 Goods not received 425-449 Wrong goods sent 450-474 Damaged in transit 475~499 SHORT-CUTS 169 Dissatisfied with goods 500-524 Bill incorrect 5 2 5~549 Miscellaneous 550-574 Closers 575-600 The carbon copies were classified under the foregoing sub- ject headings and then cut up into paragraphs and sorted into piles according to the outline. These piles were next taken up in order, all paragraphs judged of poor quality excluded, and the remainder revised with care. The quality paragraphs, after being numbered consecutively in each class and copied, were bound in a loose-leaf binder and indexed. It may be well to add that in copying, paragraphs of two separate classes were never placed on the same sheet since this would have been confusing when it came to planning the index. A customer from up-state, let us say, writes in a long letter of complaint which boiled down means that he has received the wrong goods. The correspondent consults his form para- graphs a moment, jots a few figures upon a small card, clips this card to the customer's letter, and tosses it into the typist's tray. His part is done. The customer, however, receives an excellent four-para- graph letter, which adjusts the matter to his satisfaction, and he is not at all concerned with the manufacturer's form para- graph system. The use of form paragraphs offers certain practical ad- vantages : Speed. The correspondent can dispose of his letters more rapidly; the typist can transcribe faster. Low Cost. The speed with which letters are produced and the fact that a typist may be substituted for a first-class stenographer lowers the cost per page. (See Figure 21.) Accuracy. The slips which creep in as one dictates, and the errors made as the stenographer transcribes from notes are both reduced. 170 THE DISPATCH OF A DAY'S WORK ORDER PARA- GRAPHS INSERTIONS I 15 23d 2 400 3 471 4 581 Mr. Thomas 5 6 7 8 9 10 ENCLOSURES CHECKS FOR SPECIALS Figure 21. Card Used to Save Time of Dictating This small card, clipped to the letter, represents the answer as dictated by the auto- matic correspondent. The typist inserts the special items specified in the column at the right, in this way increasing the flexibility of the system. Quality. The paragraphs are well written, interesting, convincing, far superior to the grade of work usually turned out by the correspondent because they represent his one best way of putting a point. The sales argument, the acknowledg- ment of an order, or the reply to a complaint, once it has been standardized and reduced to form paragraphs, becomes inde- pendent of moods. An attack of indigestion or some hot altercation with a competitor does not disturb the per- suasiveness of the selling talk nor the smooth diplomacy of the collection appeal when these repose in a correspondent's manual. Freedom from Drudgery. There is no merit in chaining SHORT-CUTS 171 a high-class mind to the drudgery of grinding out the same monotonous phrases day after day. If freed from such rou- tine through the use of form paragraphs, the correspondent is more able to give special letters the hard, concentrated thought they deserve. Flexibility. When the stock of form paragraphs has at- tained the degree of completeness to which it appears feasible to extend it, the man who may have commenced the use of this system somewhat skeptically will be agreeably surprised at the facility with which through its use the most varied letters can be prepared. Moreover, a single paragraph can often be made to cover a number of cases, and in a distinctly individual way, by leaving blank a space for the date, the name of the article, its price, size, or color, the name of the prospect, etc. Such items are noted on the card at the time of dictating (See Figure 2 1 ) , and filled in by the typist. Form paragraphs may also be interspersed at will with paragraphs which are dictated, solely for the letter at hand. This plan need cause no confusion whether one uses a dictating machine or employs a stenographer. It is true that for the executive's correspondence the form letter usually proves inadvisable, yet the principle upon which it is based a standardized communication does apply with much force. Again and again several persons or firms are written concerning a certain subject in practically the same terms. What is in reality a form letter can be used if, after exercising care in dictating the first letter, the writer hands the stenographer the name and address cards of the remaining firms with the remark, "The same letter for these." The recipients of these letters concern themselves solely with the product laid before them. Is it a good letter? Form paragraphs unmodified will not, of course, serve for all letters, yet it requires only an analysis of his correspond- ence to convince the average man that the percentage of it 1 7 2 THE DISPATCH OF A DAY'S WORK which can be handled, and well handled, by form paragraphs is larger than he first suspected. 100 Per Cent Efficiency The foregoing suggestions illustrate in only a limited way the many short-cuts which the man intent upon the prompt dispatch of his duties will work out for himself. His atten- tion once directed into the short-cut channel, he will constantly speed up and eventually, as his "dispatch" efficiency ap- proaches 100 per cent, surprise even himself by the celerity with which he moves through the day's routine. In this respect his problem is similar in kind to that of a city fire department in cutting down the time elapsing between the receipt of an alarm and the departure of the firemen. The experiments conducted by such a department convey a telling message to business men complaining of "no time" while in- different to short-cuts. "At first," says R. T. Kent, "the horses stood in their stalls with their harness on them. The hitching of the horses required the fastening of several buckles. Some one then invented the drop harness, now universally used, and the num- ber of motions in hitching a horse was reduced to three snapping the collar round his neck, and the fastening of the two reins to his bridle by bit snaps. "Later the horses were moved from the rear of the house to a point alongside the engine, so that they had only to travel a matter of a few feet to be in position under the harness. Some one else then invented a device which released the horses from their stalls automatically with the sounding of the alarm on the fire-house gong, affecting a further saving in time and motion. 'Instead of having the firemen descend stairs from their sleeping quarters, the sliding pole was thought of, which elimi- nated a great number of individual motions and saved many SHORT-CUTS 173 seconds. And so on, as one device after another was per- fected which saved motions, and thereby time, it was adopted, until now the 'motion efficiency' in a fire house is one hundred per cent. It is useless to improve it further, because it has reached a point where the company is ready to start to a fire before it has received the number of the box." The Fire Department a Personal Incentive The various short-cuts of a fire department appeal to us because a burning building impresses everyone dramatically with the value of time. The lurid flames, the clanging en- gines, the shower of sparks, the hoarse shouts of firemen, all urge speed. Yet in a private office the sands of life are counted out, and here as elsewhere, used or unused, they re- turn no more. In its own way quite as dramatic as the burn- ing of a building into ashes, this twenty-four hours a day passes through our hands and then fades into the great be- yond. "Dost thou love life? Then do not squander time, for that is the stuff life is made of." The fact that short-cuts will save time, therefore, should assure their employment. The benefits are tangible, realiz- able. The adoption of the short-cut itself marks an increase in efficiency and the time saved when capitalized is a hand- some reward. The Daily Use of Short-Cuts To seek short-cuts is a worth-while principle. The execu- tive who adopts this principle t 1 I. Emphasizes results, not motions. 2. Plans his work, then works his plan. 3. Keeps alert for time-saving schemes. 4. Gives a task the time it is worth, then gets it done on time. 5. Concentrates, decides, and dispatches. I 7 4 THE DISPATCH OF A DAY'S WORK EXERCISES Short-Cuts in Use In order to secure the benefits which await you in short-cuts, check through the foregoing list, raising in each case these questions : Do I now make use of this short-cut? Compared with my former results, how much time approximately has its adoption saved me daily ? In case this particular short-cut is not now being used, should it be used ? Compared with my present methods, how much time approxi' mately would its adoption save me daily? What short-cuts do I now use which do not appear upon this list? What is their approximate time saving? What additional short-cuts can I profitably devise for myself? This exercise will provide the specific plans for driving directly to the goal; for making every moment and every motion result-getting. A Test of Progress Do you know at what speed you can really work, if necessary? As a test, try this exercise once in a while. Complete a day's work in your usual time, recording the various tasks undertaken together with the time when each was commenced and completed. File this record away for a month, or two months, or whatever time you like. Some day when your schedule can be arranged to duplicate the former day's work, use its records as today's quota. Concentrate, decide, dispatch; let finished tasks emerge from your hands with all possible speed and precision. Such a test when carried out properly reveals this profound truth, that within yourself are reservoirs of power commonly unused. By rousing these latent forces, personality mounts above its old self and accomplishment attains a new maximum. The efficient man my- self thus enters into his true heritage. The Short-Cut Point of View The matter of short-cuts has a deeper significance than simply the clipping of five minutes here, fifteen minutes there, throughout the day, valuable as that accomplishment may be. It means, whatever the object, its attainment with minimum wastage of time and effort, a proceeding toward it with a maximum of effectiveness. This deeper significance of short-cuts is indicated in the account of five salesmen engaged in the field selling of a specialty whose records have been compiled in chart 9. During the twenty-four days, D had called upon 300 prospects; A upon only in. But A, SHORT-CUTS 175 who used the telephone intensively in the making of appointments, got in a full presentation once out of every two calls made, whereas D succeeded in only one case out of ten in presenting his full sales argument. 3ALESMA] V ITEM A B c D E Total Calls in 24=; icn 300 i6q Partial Presentations Only Full Presentations 10 4i 71 51 A-l 4i tn AQ Calls Per Day Averaged 4-6 IO.2 A 2 12 5 6 8 Full Presentations Per Day Averaged 2 2 2 Q I 7 I 2 2 Total Orders Secured 22 21 10 7 J Average Full Presentations Per Order 2. =i 3 ? 2 2 A 2 16 i Average Time Per Full Pre- sentation (Minutes) 48 58 6l 60 W Average Time Spent Daily in Full Presentations (Hours and Minutes) I ''il 2 -SO I '2^ 1-26 i -48 Total Earnings $55 $525 $475 $17=) $75 Earnings Per Hour Spent in Full Presentations $12 -\6 $7 70 $10 80 $=;.io $1 .74 Test Chart 9. The Results of Twenty-four Working Days Compiled from the Records of Five Specialty Salesmen The quality of the full presentation made also must have differed considerably, judged by the very matter-of-fact test the average number of full presentations per order secured. C showed himself here of high grade, closing successfully almost every other man to whom he had presented his proposition ; E was here especially weak, being quite ready to accept, it seems, anything in the way of excuses the prospect had to offer. It does not suffice merely to have things under way; what counts is the work which is finished the name on the dotted line. These five salesmen, as they faced each new day, had certain hours and certain efforts which they sought to turn into money returns. The hours when real salesmanship was under way the time devoted to full presentations were whittled down in their respective cases 176 THE DISPATCH OF A DAY'S WORK to 1:51, 2:50, 1:25, 1:26, 1:48; the use of this time resulted in earnings per hour, varying from $1.74 to $12.36. The personal manager in his list of tasks scheduled for attention has, as it were, so many prospects upon whom to call. Shall he, in common with certain of these five salesmen, be led off into winding paths and be put off with subtle excuses for non-performance ; or shall he employ his time and effort in the direct presence of these prospects under those conditions of concentration, decision, and dis- patch which encourage full presentations and a strong close? CHAPTER X EFFICIENCY HABITS There is no more miserable human being than one in whom nothing is habitual. WILLIAM JAMES. Henry Ford and The Radiator Cap Habit has come to be almost a term of reproach in modern business. It is associated in popular thought with defective will or with imperfect intelligence. We speak of a man's bad habits, meaning practices of personal indulgence more or less questionable in themselves which impair his effective command of such powers as he has developed. Or we speak of his business life as ruled by habit, meaning usually that his mind is no longer active, that he is working mechanically and ineffectively, or, in brief, as somewhat of an "old fogy." This, however, is only a part of the matter, and the nega- tive part at that. The other side, that which gets at the real nature of habit, is revealed in a story told of Henry Ford, who in transforming automobile manufacture from a "splen- did adventure" into a process almost as certain as the tides, has taught us all the lesson of standardization and habit and incidentally amassed millions of dollars as part of his personal reward. A prominent consulting engineer once spent a day with Mr. Ford to discuss certain engineering problems. He noticed that during every spare moment of the morning Mr. Ford kept taking from his pocket a radiator cap and was apparently engaged in some calculation regarding it. On inquiry he learned that the part was of brass and cost half a cent too much to build. He suggested threading it in a slightly dif- 177 i;8 THE DISPATCH OF A DAY'S WORK ferent way, to which Mr. Ford replied: "Yes, that would be cheaper, but whenever the water boiled it would get hot and bind." To several other suggestions which he ventured, Mr. Ford immediately pointed out some difficulty, where- upon he realized that his host had studied *he problems in- volved far beyond any suggestions he might be able to make. During the afternoon Mr. Ford continued to give his atten- tion at odd moments to the cap, devoting several hours to its consideration. That evening the engineer remarked : "I cannot understand how this small part, costing two or three cents at the most, can be worth so much of your time. It is only a fourth or half a cent that you can save in each piece." "Yes, that is true," Mr. Ford replied, "but I am not think- ing of one radiator cap. We shall need one on each of 185,- ooo cars this year, besides 25,000 for repairs. That makes 210,000 for this year. We will make at least 50 per cent more cars next year. There, is a saving of $2,500, and when we get it settled it will be right for the next twenty years." Justifiable Expenditure The point of this story comes at the end. "Planning" that cap cost some hours, perhaps, of the time of a highly expensive man an extravagance taken by itself. But the expenditure was justifiable because once the operation was worked out it could be made a matter of indefinite repetition at a cost virtually negligible. Before it was thoroughly stand- ardized, there was need from time to time of tinkering and rearrangement by other upper officials which was expensive. Now it was "right for twenty years" and no one had to think about it. Habit does essentially the same thing for the individual's work, for the executive's personal routine. It transforms what is scientifically accurate into what is commercially prac- ticable. EFFICIENCY HABITS 179 In reality, therefore, habit represents the essential part of standardization. Standardization, we have seen, includes the planning of a process, etc., perhaps at the cost of much time, thought, money; and also dispatching it carrying through the operations determined upon perhaps at the cost of intense effort of will. But there must follow repetition of the new activity without change an indefinite number of times that is to say, the process must become automatic, unforgettable, a habit. The third stage is of vital importance to the practical man. Without it standardization would be merely a pompous and expensive way of doing what could be done perhaps as well by one swift guess. With it the improved method, the process which has been proved right becomes a permanent possession more efficient and more profitable with every repetition. The profit from a standardized operation does not begin to come until the operation has become a matter of course a habit. After that point the costs go steadily down and the profits increase. The Nervous System a Business Organization Consider a little the way in which the human mind works, or rather the structure and functions of the nervous system on which the working of the mind depends. Formidable psy- chological discussions in highly technical language may well leave the business man's mind confused and impatient with the whole subject. Yet psychology means nothing more than knowing how the mind works. Understanding its principles enables one to get better service from his own mind his nervous apparatus. The nervous system, as we call it, extends throughout the body. (See Figure 22.) Its various parts are composed of tiny plastic cells, which strike each other and rebound when messages those from the outside are called sensations are i8o THE DISPATCH OF A DAY'S WORK passed along. Study of the system and its operation will show in the first place its curious resemblance to the organiza- tion of an active business house, with subordinates, sub- executives, general manager, etc. The first impressions or sensations messages from the Nerves to left arm. Nerves to right arm. Nerves to back of left leg. Figure 22. Brain and Spinal Cord, with the Thirty-one Pairs of Spinal Nerves (Reproduced from Doty's "Prompt Aid to the Injured," by permission of D. Appleton & Company) outside come through the organs of sight, taste, smell, feel- ing, and hearing to the nerves. The nerves may be com- pared to the telephone and telegraph wires, the railroads, and the mails, which keep a business organization in touch with its materials and markets. EFFICIENCY HABITS jgi But these impressions or sensations do not travel very far along the nerves towards headquarters until they meet a little nerve knot, or ganglion, which passes upon their mes- sage. If 'it is of a routine sort merely, the ganglion decides the matter itself, just as an office boy might under similar cir- cumstances. A message of higher sort goes on by the gan- glion and quickly reaches the medulla oblongata. The medulla oblongata rests at the top of the spinal cord, as a sort of clearing house for automatic and semi-automatic actions. While it is of higher rank than the myriad ganglia, its functions are very much the same. It might be referred to as the chief of the routine department. Certain messages and orders are too important for dispatch by the medulla, of course, and these are passed on to the cerebellum. The cerebellum is the "little brain" lying just above the medulla, yet still far back and low in the brain case or skull. It has charge of the voluntary muscles, that is, over those which operate under the direction of our will. The beating of the heart goes on whether we think of it or not, but when we sign a contract the cerebellum directs the muscles. In general, the cerebellum might be called the seat of the action department. The cerebrum, crowning the nervous system both in size and function, acts as general manager in the nervous organi- zation. It fills almost all the brain case. Just as the most im- portant messages and orders come finally to the general man- ager, so the main business of the mind, its general policy so to speak, is transacted in the cerebrum. Habit is Standardized Nerve Action It is a striking feature of the business organization of the mind that work is constantly being shifted, as it be- comes familiar, from the higher faculties to the lower ones. The first time a certain action is performed, such as braking 182 THE DISPATCH OF A DAY'S WORK an automobile, so great is the difficulty encountered that the general manager himself must take a hand in directing the muscles. Under continued repetition, however, the nerve cells shape themselves in a more definite order the action is controlled by sub-officials until finally a habit is formed. As the motor car ahead of ours stops, we put pressure on the brake without in the least disturbing those creative business plans our cerebrum may be shaping up. This process by which actions that are often repeated come to be automatic, the process of the formation of habits, is going on all the time. It is regular and inevitable. The Efficient versus the Inefficient Way The efficient man keeps the big things in mind, as we have said, but he also keeps his mind free and open about them does not let himself form habits about matters of great im- portance. But the little things he standardizes according to a well-considered plan. The inefficient man does not reduce to habit the routine tasks of the day. The writing of every letter, the O K'ing of every order, the use of particular pencils or pens, the time of going out to lunch, the things he will eat, are to him all sub- jects of express volitional deliberation. His mind is ever harassed and distracted, and the reason is simple; the general manager is doing office boy work. Every useful action possible, such as ways of dressing, eating, working, in short, all the minor details of existence, should be made automatic and habitual. All such matters can then be turned over to the lower nervous systems for attention, leaving the general manager unfettered to transact the main business of life. The nervous system is designed for this very purpose and the man who would be efficient takes advantage of its wonderfully simple yet adequate organi- zation. EFFICIENCY HABITS 183 The insistence in former chapters upon what the reader may have considered small matters, is here explained. The man who does not keep the clips or the stamps or the envel- opes in certain definite places has to call in the higher brain center when he wants to find one of them. The man who does not "make a note of it," who refuses to employ a secretary, who will not use a filing system, also is insisting that the gen- eral manager do all the work. Double Waste There is another side to the matter. It is doubly waste- ful for the general manager to do office boy work : he is kept from doing his own work and he is less efficient at the routine work than the boy is. When a person has to put his conscious will upon braking the automobile he will not do it nearly so well as when it is taken care of by the automatic centers. So with every operation in life. Practice makes perfect, we say. The reason is that with practice an activity is taken over by the lower nerve centers, swift, steady, and serene. In the mental life quite as truly as among large corpora- tions, there is need for both general manager and office boy. But neither should do the other's work. Productive Power Capitalized The various plans outlined in previous chapters at times have called for the substitution in place of one's familiar rule- of-thumb method of standards more or less new. And it is true that this demand for substitution calls into action the higher brain centers and for the time being is inefficient. But not for long. The new habit is in truth an investment which once made will pay dividends long into the future. 'Trove all things," said the Apostle who reached every rank of peo- ple, but "hold fast that which is good." Whoever imbibes deeply in his nervous tissues the habits !84 THE DISPATCH OF A DAY'S WORK of truthfulness, cleanliness, industry, kindness, appreciation, moral integrity and hope, later lives upon these habits without price and without effort. Likewise he who by the sweat of his brow raises himself to a new level of personal efficiency hence- forth shall receive dividends from the most gilt-edge of securi- ties his own productive power capitalized as efficiency habits. In making such habits a man's own, there are certain sim- ple rules which if followed will be of great assistance. Some of these rules are discussed on the following pages. Habits Inevitable; Which Kind? In thinking over habits it is well to recognize that the nervous system as we grow older becomes less plastic. "Already at the age of twenty-five," says William James, "you see the professional mannerism settling down on the young commercial traveler, on the young doctor, on the young minister, on the young counselor-at-law. You see the little lines of cleavage running through the character, the tricks of thought, the prejudices, the ways of the 'shop,' in a word, from which the man can by-and-by no more escape than his coat-sleeve can suddenly fall into a new set of folds. On the whole, it is best he should not escape. It is well for the world that in most of us, by the age of thirty, the char- acter has set like plaster, and will never soften again." As far-sighted personal managers intent upon developing effectiveness in the highest degree, into what kinds of produc- ing methods shall we allow our nervous system gradually to harden? Into methods hit upon by chance? Then the attain- ment of our goal being left to accident, we are as mariners without compass ever on the verge of shipwreck. Right methods are not the result of chance, but the prod- uct of careful analysis and constructive thought. These right methods are called standards, the summum bonum in all at- EFFICIENCY HABITS 185 tempts to attain efficiency and the real goal in the formation of habits. Standardisation is the first step in the formation of habits. Thought Followed by Action The standard must not remain merely a thought, an ab- straction over which in the mental world we can sentimentalize and dream ourselves into the fond notion that somewhere, sometime, we really shall become efficient. "Hell is paved with good intentions." The efficient man sets about attaining his effectiveness now, and he attacks the first problem feasible no matter how small; he does not wait for the new year with its resolutions, nor until he be promoted to his present superior's desk. "The actual presence of the practical opportunity," says Bahnsen, "alone furnishes the fulcrum upon which the lever can rest, by means of which the moral will may multiply its strength, and raise itself aloft. He who has no solid ground to press against will never get beyond the stage of empty ges- ture-making." When the resolution to accomplish seizes you, when the glow of inspiration permeates your being through and through, reach for a sheet of paper and write down at least one specific, concrete order to yourself. Impractical, nerveless senti- mentalism, spineless indecision will then be avoided, and your fine resolution will begin to bear practical fruit. The habits you aspire to gain are reached not by moralis- ing or theorising but through concrete acts. Keeping Fully "Sold" On a Subject Salesmen are all familiar with the prospect who is about to sign on the dotted line, then suddenly draws back. Sometimes he signs but changes his mind and cancels the order before the salesman can get away; sometimes he wires l86 THE DISPATCH OF A DAY'S WORK the house the cancellation, sometimes he refuses the ship- ment, sometimes he returns the goods. In all these cases the salesman explains the difficulty by saying the prospect was not fully "sold." It is the same in forming habits; resolution is necessary, you must fully "sell" yourself on the new habit. "Accumulate all the possible circumstances which shall re-enforce the right motives," says William James, "put yourself assiduously in conditions that encourage the new way; make engagements incompatible with the old; take a public pledge, if the case allows; in short, envelop your resolution with every aid you know. This will give your new beginning such a momentum that the temptation to break down will not occur so soon as it otherwise might ; and every day during which a breakdown is postponed adds to the chances of its not occurring at all." Enter into the new habit with every possible incentive and resolution. The Road to Full Efficiency The best of incentives in the formation of habits is suc- cess. The man who dispatches an extraordinary day's work is thereby encouraged to surpass himself still further; the man who exceeds a hard schedule feels confident of his power to negotiate a harder schedule ; success has encouraged him. Success, however, is precisely what the efficiency enthusiast is most likely to deny himself. With a sudden realization of the heights to which he may attain, he draws up an impossible plan. Failure is inevitable, a gruesome failure, for the wicked habits just swept out return pell-mell, multiplied in number like the seven devils of old. The aspirant for efficiency has been ruined by attempting too much. In acquiring habits we are in the presence of two hostile powers : one the new standard, the other the old rule-of -thumb method. "It is necessary, above all things, in such a situa- EFFICIENCY HABITS 187 tion," says Professor Bain, "never to lose a battle. Every gain on the wrong side undoes the effect of many conquests on the right. The essential precaution, therefore, is so to regulate the two opposing powers that the one may have a series of uninterrupted successes, until repetition has fortified it to such a degree as to enable it to cope with the opposition, under any circumstances. This is theoretically the best career of mental progress." The path is clear. In moving toward personal effective- ness beware of undertaking too much at the start. The goal worth while is not to be attained in one day. Introduce one method, then another; mend your ways day by day. The brain cells are plastic and subject to modification, but they are no mushroom growth and cannot be reshaped over night. Proceed steadily though slowly, allow yourself to succeed again and again as you advance. While the full efficiency de- sired is a matter of years, not days, each time a thing is done well the next time it is made easier. Suffer no exception until the new habit is securely rooted in the nervous system. The Influence of Habit Upon Creative Work Whatever aversion the business man has to forming habits is commonly found upon investigation to be due to a fear that once bound by habit he may degenerate into old-fogyism and lose his power to do creative work. To a certain extent this fear is justified. A habit unchecked may in the end assert mastery and, as is often seen among older men, lead its once brilliant victim to a treadmill existence. Yet after all the danger is much the same when an office boy is engaged; he, too, if unchecked might oust the general manager. The remedy, however, is certainly not to dispense with office boys, but simply to exercise discipline over them. When this is done, the habits, over which in the beginning we have labored, 1 88 THE DISPATCH OF A DAY'S WORK are transformed into faithful subordinates, ever on call, ready to serve. System then exists in the man, embedded in his nervous tissues. What has this result to do with our all-round executive effectiveness? Asked to make a rough classification of his activities, the business man is likely to respond, "Routine work and creative work." Going further he will probably say, "Routine work takes more time but creative work is more im- portant." This is entirely correct. Creative work it is which enables a business man to rise to his full genius as an execu- tive but routine work must be done. It is precisely the systematization of this never-ending routine which the foregoing chapters have had in view. The big things in business, of course, do not center in details well handled, office layouts, private secretaries, short-cuts, daily plans and schedules; nevertheless, because they do care for his routine, the executive's personality is left unhampered to grapple with larger problems. Through their use he attains real freedom. The system with which we have been concerned to this point is thus the foundation of creative work. EXERCISES Standardizing Good Practice "Did I make the most of today?" It is a good question to raise. The man ambitious to forge ahead in business will put into the day's work his best, but, while this practically guarantees progress, as a matter of safety and satisfac- tion to himself he ought to check his results occasionally. Such a taking of stock let us make at this point. What we have sought in the preceding chapters is the systematization of the day's work, and we now desire to review in general terms our situation. This review is outlined in Test Chart 10. Suppose we grade our replies to the nine questions on the basis that standardization equals 100 per cent. Taking up each question in order we ask: "My present situation justifies what grade with EFFICIENCY HABITS 189 respect to this question?" When all the replies have been graded, add the percentages and divide by nine. What do you average? This average when collected in the square underneath the outline represents your attainment to date. The raising of the number steadily until it approaches 100 per cent constitutes our next prob- lem. We wish to solve this problem because the average represents our attainments capitalized as habits. SYSTEMATIZING MY WORK I. MY JOB II. MY DAY'S WORK III. MY METHODS For what duties am I held responsi- ble? What things have I to do today? Does each duty get its full time, and no more? How much time is Which of these are each worth? What obstacles hin- most important? der me, and how shall I deal with In what order shall them? Which of lesser I attack them? importance ? Is my mind system- atic in its work, What revision of my job's scope would make me more productive? are my efforts properly or- ganized? Average. Date Test Chart 10. The Systematization of the Day's Work is Here Reviewed in Nine General Questions Benjamin Franklin's Method A quaint example of how a person may utilize the ratchet prin- ciple of control through habits is found in Benjamin Franklin's "Autobiography," and the account is cited here, since the method adopted by Franklin worked successfully in a field where definite results are particularly difficult to secure and record. THE DISPATCH OF A DAY'S WORK "It was about this time," writes Franklin, "I conceived the bold and arduous project of arriving at moral perfection. I wished to live without committing any fault at any time ; I would conquer all that either natural inclination, custom, or company might lead me into. As I knew, or thought I knew, what was right and wrong, I did not see why I might not always do the one and avoid the other. But I soon found I had undertaken a task of more difficulty than I had imagined. While my care was employed in guarding against one fault, I was often surprised' by another; habit took the advantage of inattention; inclination was sometimes too strong for reason. I concluded, at length, that . . . the contrary habits must be broken, and good ones acquired and established. . . . For this purpose I therefore contrived the following method. I included under thirteen names of virtues all that at that time occurred to me as necessary or desirable, and annexed to each a short precept, which fully expressed the extent I gave to its meaning. "These names of virtues, with their precepts, were: "i. Temperance. Eat not to dullness; drink not to elevation. "2. Silence. Speak not but what may benefit others or yourself; avoid trifling conversation. "3. Order. Let all your things have their places; let each part of your business have its time. "4. Resolution. Resolve to perform what you ought ; perform with- out fail what you resolve. "5. Frugality. Make no expense but to do good to others or your- self; i.e., waste nothing. "6. Industry. Lose no time; be always employed in something useful; cut off all unnecessary actions. "7. Sincerity. Use no hurtful deceit; think innocently and justly; and, if you speak, speak accordingly. "8. Justice. Wrong none by doing injuries, or omitting the bene- fits that are your duty. "9. Moderation. Avoid extremes; forbear resenting injuries so much as you think they deserve. "10. Cleanliness. Tolerate no uncleanliness in body, clothes, or habitation. "n. Tranquillity. Be not disturbed at trifles, or at accidents com- mon or unavoidable. "12. Chastity. "13. Humility. "My intention being to acquire the habitude of all these virtues, I judged it would be well not to distract my attention by attempting the whole at once, but to fix it on one of them at a time; and, when EFFICIENCY HABITS 191 I should be master of that, then to proceed to another, and so on, till I should have gone through the thirteen. . . . "I made a little book, in which I allotted a page for each of the virtues. I ruled each page with red ink, so as to have seven col- umns, one for each day of the week, marking each column with a letter for the day. I crossed these columns with thirteen red lines, marking the beginning of each line with the first letter of one of the virtues, on which line, and in its proper column, I might mark, by a little black spot, every fault I found upon examination to have been committed respecting that virtue upon that day. "I determined to give a week's strict attention to each of the virtues successively. Thus, in the first week, my great guard was to avoid every least offense against temperance, leaving the other virtues to their ordinary chance, only marking every evening the faults of the day. Thus, if in the first week I could keep my first line, marked 'T,' clear of spots, I supposed the habit of that vir- tue so much strengthened, and its opposite weakened, that I might venture extending my attention to include the next, and for the following week keep both lines clear of spots. Proceeding thus to the last, I could go through a course complete in thirteen weeks, and four courses in a year. And like him who, having a garden to weed, does not attempt to eradicate all the bad herbs at once, which would exceed his reach and his strength, but works on one of the beds at a time, and, having accomplished the first, proceeds to a second, so I should have, I hoped, the encouraging pleasure of see- ing on my pages the progress I made in virtue, by clearing suc- cessively my lines of their spots, till in the end, by a number of courses, I should be happy in viewing a clean book, after a thir- teen weeks' daily examination." Whatever we may think of Franklin's undertaking, the method itself affords a good object lesson in personal management. Franklin : Set for himself a general purpose. Analyzed this general purpose into its constituent elements. Prepared definite plans, with written instructions. Checked his progress regularly. Few problems facing the executive, hard though they appear, are able to withstand such a systematic assault. Applying the Principle Suppose we utilize the principles here exemplified, applied in a simpler form to the problems immediately before us. The exercises which have been worked through in connection with preceding chapters will have revealed various possibilities, 192 THE DISPATCH OF A DAY'S WORK among which we may now select the choicest yet unrealized. What we wish to select are certain possibilities in which a given amount of time and effort is able to effect a maximum improvement. Use Test Chart n for recording your choices. These choices finally we proceed to realize in practice, employing for this purpose the rules of habit formation discussed in the present chapter. The check marks in the last column record our advance. TEN THINGS TO Do IN ATTAINING EFFICIENCY THE PROPER WAY TO Do EACH Is AS FOLLOWS HABITS I SHALL THUS FORM HABITS Now ES- TABLISHED - Test Chart n. Capitalizing Attainments as Habits PART IV THE THINKER IN BUSINESS He who hopes for success must organize, prepare, enlist method and science, if he would live upon the high plane which business has now reached. A. C. BARTLETT, Presi- dent of Hibbard, Spencer, Bartlett and Co. Keeping a little ahead of conditions is one of the secrets of successful business; the trailer seldom goes very far. CHARLES M. SCHWAB, Chairman, Bethlehem Steel Corpo- ration. CHAPTER XI INITIATIVE AND VISION Some men seem to have a golden touch. Everything to which they turn their hand yields miraculously. FRANK W. TAUSSIG, Harvard University. Routine and Constructive Thought The aim of the preceding chapters has been so to aid in systematizing the day's work that its necessary routine may be cleared away with ease and dispatch. While this act in itself is an attainment much to be desired, its most important result is the freeing of the executive's mind for constructive effort. The real leader in business is the man who thinks, in- vestigates, weaves new plans, and looks ahead. The succeeding chapters deal with the principles and methods through which this constructive effort is brought into most effective operation. The problems treated are diffi- cult because they concern highly complex elements in human nature and are vital because they concern the continued life and growth of the business or department of business over which the executive presides. The Perception of Opportunity The first question which the man who- intends to do really big things in business puts to himself is, "Where are my best opportunities for profits?" He raises this question in no narrow, sordid sense, because the ambition to do things worth while, to achieve distinction, to acquire knowledge and exer- cise skill, to play in a masterful way the two great games of business and life, constitute his persistent motive force. Granted, however, that these things, and not a sordid love of 195 196 THE THINKER IN BUSINESS money for itself alone, are what he would have, the way to attain them requires that first of all he locate the most profit- laden opportunities. He is not merely to "dig in" and look no further when the first prospects show. In the search for possibilities of superior service or, in other words, for opportunities for profits there are at best five broad lines which deserve consideration : /3 1. Exploitation of natural resources 2. Development of inventions 3. Improvements in production and distribution 4. Fluctuations in values 5. Supplying known wants i. Exploitation of Natural Resources "The world puts its richest prizes at the feet of great or- ganizing ability, enterprise, and foresight," says John D. Rockefeller, Jr., <7 Because such qualities are rare and yetjn^ dispensable to the development of the vast natural resources which otherwise would lie useless on the earth j s surface or in its hidden depths." In her oil fields, timber tracts, coal beds, mineral deposits, waterfalls and virgin land, nature has abundantly provided for the American. While these rich opportunities cannot last forever, they are not yet exhausted. Those which remain, however, require wiser and more economical management than has characterized much of their treatment in the past, which was well termed "exploitation," in the worst sense of the term. Those who controlled them usually considered that they were privileged to grind labor in production and at the other end extort the largest amounts possible from the con- sumer. The resources, such as forests, coal, and water-power which yet remain in the hands of the government will be guardedly leased to parties who desire to use them, and the INITIATIVE AND VISION 197 use of those already in private control is liable to be re- stricted. Nevertheless, all . of these natural resources are going to be utilized in the future more effectively than ever before. To manage and operate them under government lease or regulation will demand greater business ability and better executive capacity than in the past, when inefficiency in man- agement could be made good by an extra charge to the con- sumer. Both in reputation and in compensation the rewards will be sure and rich, although it is not likely that any aggre- gations of wealth such as the Rockefeller fortune will ever again come into the hands of an individual. 2. Development of Inventions John N. Willys who later was to enter a new field with great success, stood one day in 1899, looking out of a window in a Cleveland skyscraper, when he noticed a four-wheeled vehicle creeping along the street. No horse was attached to it. From where he stood it looked exactly like a carriage. Quoting Mr. Willys' own words in relating the incident, "I immediately said to myself, that machine has all the bicycles in the country beaten hollow I was then in the bicycle busi- ness. I made up my mind that I would get into this new field at the first moment possible. I investigated and found that I had seen a Winton car; but I did nnf tVipn o^t- 3 chance to The resolution thus quickly made, led Mr. Willys even- tually to his present place in the foremost ranks ot motor car manufacturers as President of the Willys-Overland Company. Mr. Willys is typical of men who discover, invent, or make available, new means of want-gratification. In the field of transportation, trolley cars, steam trains and automobiles have almost superseded horses and coaches. For purposes of communication, the telephone, the typewriter, and the telegraph replace the pen and the messenger boy. In the I9 8 THE THINKER IN BUSINESS home, the electric light, the refrigerator, the gas stove, the vacuum cleaner, the washing machine, the steam radiator, and the packages of breakfast food and bakery products, have all replaced the slower or less-efficient means. The moving picture industry has made fortunes for scores of men. The varied forms of the phonograph have built up great industries. The automobile industry has opened the way to success for countless men. The Ford Motor Car Company, the National Cash Regis- ter Company, the Burroughs Adding Machine Company, the Westinghouse Air Brake Company, the American Radiator Company, the Mergenthaler Linotype Company, and hundreds of other concerns based upon successful invention and now capitalized at many millions, were once without any tangible value whatever simply ideas. Since consumers invariably have more wants than can pos- sibly be gratified, the inventor or the man who wishes to make an invention commercially successful, must assure himself that it satisfies some of these ungratified wants. If he does this he founds his profit-seeking enterprise upon a most secure basis. 3. Improvements in Production and Distribution The business executive is now and will in the future -be subjected to- pressure exerted by the worker for a larger com- pensation and by the consumer for lower prices; or, what is the same thing, the consumer will demand more for what he spends. The executive must seek the solution of this problem along two chief lines: (i) by improvements in production, (2) by improvements in distribution. The most intelligent, the most alert, the most resourceful manufacturers and dealers are going to excel in this improve- ment of methods and will build up big businesses for them- selves. The less intelligent, the less teachable, and the too INITIATIVE AND VISION 199 conservative will fall behind and in the fierce struggle the com- petitors will unerringly align themselves, some far in the rear. With improved methods of production and distribution a certain price comes to be set for a commodity, which spells actual loss to the plodding and the unprogressive but gain to the enterprising, to whom the selling price still allows a com- fortable profit. Their use of improved methods gives them a lower cost and a wider margin for profit. 4. Fluctuations in Values Another opportunity for business gain is found in the fact that practically evUry commodity with which .the business man has to deal wheat,^cotton, oil, merchandise, metals, machin- ery, real estate, building materials, labor fluctuates in price from year to year and even from day to day. Such variations delight the shrewd bargainer since he thereby sees an opening for that oft-used principle of his, "buy low and sell high." "The only time I ever saw John Rockefeller enthusiastic," said an early acquaintance in commenting upon Mr. Rocke- feller's ability to drive a good bargain, "was when a report came in from the creek that his buyer had secured a cargo of oil at a figure much below the market price. He bounded from his chair with a shout of joy, danced up and down, hugged me, threw up his hat and acted so like a madman that I have never forgotten it." The industrial history of America for decades has been characterized by a series of alternating periods of prosperity and depression, which, despite certain highly commendable efforts to provide against them, doubtless will continue in the future. Such periods of prosperity and depression, whether accompanied by wars or peace treaties, droughts or bounteous crops, easy money or financial stringency, result in the up- heavals which profit-seekers 'heretofore have utilized to their 200 THE THINKER IN BUSINESS advantage. Whether he deals in real estate, securitieg^ grain or foreign exchange, the business man bases his operations upon the prevailing price level of the commodities in which he is interested. He estimates the future in terms of a changed price level and either buys or sells as the result of his estimate. 5. Supplying Known Wants In books on salesmanship and among groups of salesmen spinning yarns in hotel lobbies the "prospect" is often con- ceived as of jelly-fish mentality, it being the salesman's task to trick him deftly into buying something he does not want. A moment's reflection will show that most of the selling in the world is the sale of things that people want, are greatly interested in, and in fact must have. The great businesses of the world are the production and sale of necessary commo- dities to consumers who are anxious to get them. All of us spend the largest proportions of our income in supplying ourselves with the things we must have. Each human being requires food, shelter, clothes, fuel and light. These are the great necessities of life. Most of us make our living and what measure of fortune we can by producing or selling something to supply these diverse wants. People in the future are going to demand these same things in a fuller measure and of better quality, and all who desire business openings can find them in the production, the manufacture, and the distribution, not of the things people do not want, but of the things they do want. Here we have again the idea of service, which constitutes in business the great, never ceasing opportunity. Needs and the Law of Service In the location of opportunity it is significant to note that the leaders of business today, however different the particular commodity with which each deals, usually proceed upon one INITIATIVE AND VISION 2OI central principle. Men such as John Wanamaker and Mar- shall Field in merchandising, Frank A. Vanderlip and Otto Kahn among bankers, and Henry Ford and W. L. Douglas among manufacturers win their large profits through superior service. Upon the basis solely of such superior service, they have been able to keep friends, patrons, and employees; to build up strong, enduring business organizations ; and to shape for themselves notable careers as gainers of profits, in the best sense of that word. "This is the service the new business man now can render his day and his people," declares E. St. Elmo Lewis, "create_ a greater business in the service of the people." The Many Roads Upward The opportunities for profits, indicated in a general way by the foregoing paragraphs, are exceedingly numerous. In fact, the thirty largest fortunes of America, according to a tabulation recently made by Forbes' Magazine, had as their chief source, sixteen different businesses. The road to profits obviously is not a narrow, hedged-in path; it is not, indeed, a path at all, but a broad highway along which many types of vehicle may pass. "Do not hesitate to engage in any legitimate business," says Andrew Carnegie, "for there is no business in America, I do not care what, which will not yield a fair profit if it receives the unremitting, exclusive attention, and all the cap- ital of capable, industrious men." The Business Man's Task The Great War has revolutionized business methods and has inculcated certain business truths that will mean a per- manently changed business order. German efficiency, which before the war was rapidly possessing itself of the trade, the manufacturing, and the financing of the world will not find 202 THE THINKER IN BUSINESS its former rivals, France, Great Britain, and America, un- mindful of the new order. Purged of many an old ineffi- ciency the Allied nations will go forward upon a new basis. If we are to play our part as a great industrial nation, the de- mands on those who aspire to lead will not slacken. The business men of the future, the producers and distributors of commodities, will have man-sized jobs laid out for them, and the half-trained, uninformed slackers who are not ready to meet the new conditions will be crowded aside with scant ceremony. Alertness a Business Asset The large gains, the conspicuous careers wrought out in our country in the past and to be attained in the future by the young executives of the day, have resulted or will result, from change in conditions, from the exploitation of new projects by men of intelligence and daring originality. The average grade of ability under normal conditions will receive its conservative reward, but the executive not satisfied with that must needs cultivate something new and unusual; must take advantage of changes and new opportunities as they offer. Alertness to discover and seize opportunities at the right time constitutes a most valuable business asset. A Dayton merchant, suffering from a nervous breakdown due to overwork and worry in attempting to keep tabs on the details of his retail store, noticed in the engine room of the ship which was taking him to Europe a device which recorded the number of revolutions of the propeller shaft. Hundreds of other passengers had observed the same device without any particular consequence, but in the mind of Jacob Ritty this question at once arose, "Why not construct a machine that will record each coin put in the till?" Hurrying home to Day- ton, he set to work with his brother, a skilled mechanic, and evolved the first cash register. INITIATIVE AND VISION 203 TL2 crude yet novel machine soon afterwards came to the attention of a second alert intellect, in the person of a small- town merchant whose store was located some distance from Kitty's tiny factory at Dayton. Impressed by the vast possi- bilities of the device, this John H. Patterson took over the patents and founded the now world-famous National Cash Register Company. The thousands of visitors at the Centennial Exposition in 1876 considered the bicycle exhibited there merely a curiosity; Colonel Pope recognized in it the basis of a new industry and he returned to Hartford to enter upon his notable career as a manufacturer. The changes which took place in the sulphur-cured india- rubber accidentally dropped by Charles Goodyear upon a stove, meant nothing to his good-natured friends; to Goodyear it was a revelation the long-sought process of treating rubber gum. The streets black with telephone wires were for years in plain sight of thousands, yet it remained for Theodore Vail to dream of wires underground and at Attleboro to begin his first experiments. That wires should be underground now appears obvious but persons fifty years from now will wonder why persons today overlooked so many things to them equally obvious. Though they travel the same road together, men do not see the same things. As Russell Sage dryly remarked, ''Some people never see opportunity in anything and they never get along." The explanation which these ne'er-do-wells often advance is that opportunity knocks but once upon each man's door and, should he prove unresponsive, passes along never to return; they, unfortunately, failed to recognize the pres- ence, hence their present plight. Of the many absurd ideas which encumber the human mind this deserves high rank as the worst. Since business conditions are continually chang- 204 THE THINKER IN BUSINESS ing, the opportunity for an alert mind to seize upon enterprises at the psychological moment never is closed. Pioneer versus Followers The pioneer, with a mind alert to the significance of that which he sees, continually keeps tilling and harvesting in the most fertile fields, while the follower either contents himself with the former's once worked fields or, having once secured handsome returns in a certain venture, continues persistently in this same activity, oblivious of the fact that the field is worked out. The profit-maker keeps his facilities always mobilized, ready to move in whatever direction gain calls. Rockefeller's early success as a monopolist was founded upon railway rebates, but as soon as the independent refiners thought to best him by inducing a pipe line, he promptly eschewed railroads and the Standard was soon pumping oil to New York. Commodore Vanderbilt believed in sailing vessels, but after a time he saw the superiority of steam and turned to steamboats; and later, beginning to feel the effect of rail transportation, he sold his beautiful steamers and re- invested his money in the rusty iron rails and wheezy little locomotives of the competing railways. The Commodore was then an old man and his opinion of railroads prior thereto had been scarcely printable, but these things did not keep him from the profitable path. The Power of Initiative The profit maker is a cultivator of the new, a herald of things to come. The rapidity of his innovations outdistances competitors. Bankrupt railroads, overcapitalized factories, problematic inventions, or offerings of novelty shoes and spring hats he evaluates in terms of the future. "We take pleasure in the success of everybody in busi- INITIATIVE AND VISION 205 ness," says John Wanamaker, "and even when instant dupli- cation of our methods is attempted we hope that tomorrow we shall be as fresh as todau. and shall be in the future as in the past attempting to do what has hitherto been unat- tempted." The present is obvious, and as such is usually found to have been already exploited. Even a new plan, in its day considered highly original, assures no permanent hold; com- petitors abound and their advances gradually undermine the prosperity of any stationary concern. Only through initia- tive, the power to produce new ideas continually, is perma- nent advantage possible. They copied all they could follow, But they couldn't follow my mind; And I left them sweating and stealing A year and a half behind. The Fresh Viewpoint Thejiew iflefl is a magn^f drawing- profits to its pOSSCSSOr. It attracts unto itself money, men, an7T..ma.terials ; expresses its presence in unique designs, prompt deliveries, low costs and satisfactory service ; and, the real soul of the organization, de- termines the onward career of office, store, or factory. The organization manned by creative thinkers is founded upon a rock. The great value of ideas to men in business is coming to be more fully appreciated. The executives in the front ranks, in fact, are even now past the stage of discussion, and instead are intent upon the best methods of systematically cultivating new ideas. An excellent first suggestion is offered by the history of inventions. The cotton-gin was the work not of a southern planter, as might have been expected, but of a Connecticut schoolmaster; the idea of the Jenney car coupler was evolved from the brain of an illiterate French-Canadian, who knew 206 THE THINKER IN BUSINESS more about brands of whiskey than railroads; the Bessemer process was formulated by a man who had no connection with the iron and steel trade, and knew little or nothing of metal- lurgy. "Persons wholly unconnected with a particular busi- ness," declared Bessemer in explaining how he had entered upon his career untrammeled by notions, "are the men who make all the great inventions of the age." The outsider's fresh viewpoint accounts for this paradox- ical fact. Men engaged in a particular business are, too com- monly, mere diligent workers, plodders who perform their daily routine without a comprehensive system, without inven- tive or constructive ability sterile workers who lack vision. These workers in a rut cannot see anything but the day's work ahead. In an executive position they are digging their busi- ness graves. In order to seek out, attain and utilize the fresh viewpoint for himself, the executive must keep himself free from en- tangling masses of detail. Vacations, rest periods, and change of occupation keep a man fit and provide the condi- tions under which the development of new ideas is encouraged. In addition, he should -by conference, by discussion and similar methods, get the opinions of others on his problems. An open-minded attitude at these conferences and elsewhere will yield a rich harvest. At times, it may be worth while to get in an auditor or efficiency expert to examine and report any- thing that may be wrong or lacking. If a new man is taken on, his impressions before he settles into the existing routine will often supply a valuable corrective. The Raw Material of Ideas It cannot be too strongly emphasized that the mind can- not shape up new ideas unless it is supplied with appropriate raw material. Corporation heads oftentimes complain that their junior executives are sterile, but they do not appreciate INITIATIVE AND VISION 207 the fact that the junior's mind, however eager, cannot pro- duce if starved. The executive anxious to cultivate the power of initiative in himself and in those working under him, ought in justice to all concerned, to see that the necessary materials for thinking are provided. What are some of the sources of these raw materials ? A noted advertising man advertising of all businesses being one which demands originality clips every illustra- tion which contains a figure, a pose, a layout, or an idea of any kind that he finds stimulating. Material of value can be found in the educational trip, the late books, the trade paper, the magazine article, the conference, the new friend. "When I get hold of a man who is versed in the Word of God," said Moody, "I just pump him." John Jacob Astor gained from a loquacious immigrant the idea of that fur trade upon which his fortune was to be founded; James J. Hill, a shipping clerk at St. Paul, drew from the journals of Lewis and Clark and Irving's "Astoria" the materials which fired his imagination to be empire builder of the northwest; George Pullman, forced one night to lie awake as the bunk car in which he rode jolted along from Buffalo to Westfield, gained the experience which was to bring about a new sleeping car. The Search for Business Ideas In modern factory and office practice, suggestion box, questionnaire, and call to conference, are among the means employed in securing new ideas or new applications of old ideas. Early in his railroading career young Cassatt, late presi- dent of the Pennsylvania system, made it his business to be the most approachable of division superintendents. No man was ever more sought after by cranks and geniuses alike, with their models of automatic couplers, sleeping cars, tank- 2o8 THE THINKER IN BUSINESS ing and signaling systems, than was Cassatt. He was willing to seek through chaff to find wheat. He made it a rule, moreover, to be even more accessible to his own petty en> ployees. Brakemen, switch tenders, trackmen, all found the door to his private office open, and their practical suggestions enabled many an innovation to reach its highest value. "Bringing this down to actual factory management," says Superintendent Field of the Illinois Steel Company, "we try to get this feeling into our men by always stimulating the initiative in them. We are ready to pay the cost of any- thing that any of our men makes in our line and then the patent belongs to him, we having the shop rights and he having the right to sell the patent or to receive royalty from its use anywhere else he chooses." Some executives have carried this plan so far that the thought atmosphere of the establishment has been transformed. All become co-operators in the development of new ideas. Imagination, a Quality of Empire Builders The supply of materials, however necessary, constitutes but the preliminary step in the development of a new idea. The crude materials, though nuggets in the rough, are to be re- fashioned under the impress of the imagination. It is true that business men have too often regarded the imagination as a faculty required only by poets, novelists, musicians, and painters. Thinking of it merely in terms of the bizarre flights of fancy that sometimes steal upon one in reverie or in sleep after eating overmuch, it is not strange that they have con- sidered "imaginative" synonymous with "impractical," and their greatest dread has been to be called visionary. Not so with great leaders. The men who have made their lasting impress upon industry empire builders such as Cecil Rhodes and James J. Hill, creators of new products like Cyrus McCormick and George Westinghouse, financial organ- INITIATIVE AND VISION 209 izers like J. Pierpont Morgan, founders of famous enterprises such as George Pullman, Andrew Carnegie, and George East- man have in every case possessed power of imagination. They saw more than other men saw. The vast expanses of territory left unoccupied, the neglected mineral deposits, the small struggling organizations with inadequate capital, or the poor and inefficient plant equipment at which these men gazed were, by the intensity of their creative imagination, trans- formed into those greater things to be. The solid realities which later appeared listed upon the balance sheets represented the materialization only of those mental pictures which shaped themselves before their constructive minds. Development of New Ideas The imagination creates and develops, not merely repro- ducing the raw materials with which the mental shelves have been stored. Its creations are often as different from the original materials as are crude metals ancTTmished time- pieces, or raw cocoons and dainty silken garments. This process of mental elaboration, the manufacture of new thought products, well deserves the serious interest of an executive. He cannot safely be too busy to think. A certain stockholder of the Standard Oil Company so runs a story told by a president of the Illinois Manufacturers' Association was much annoyed upon glancing from his office window to the offices of the oil company across the way to observe one of its department managers day after day standing with his hands in his pockets, gazing out into the street for the greater part of his time. "Here is a man who draws a five-figure salary," thought the stockholder, "who is loafing on the job." In the end, feel- ing it his duty to do so, since he was a stockholder and cer- tain his efforts would be appreciated, he communicated the matter to the Standard's acting head. 210 THE THINKER IN BUSINESS "Mr. Jones," the acting head of the company addressed the stockholder with a smile, "I sincerely thank you for the interest you have shown in the maintenance of our efficiency. I appreciate the fact that, from your window, Mr. Smith appears every bit as idle as you say. "But from your window it is impossible for you to see what is going on inside of Mr. Smith's head. My experi- ence with Mr. Smith has been such that I know it would be highly profitable to this company to hire a dozen other similar Smiths if we could get them pay them similarly large salaries to stand with their hands in their pockets, looking out of their windows thinking thoughts as valuable as those which Mr. Smith thinks and crystallizes." Thought as a Business Force The reply of the acting head was both good business and good psychology. The great storehouse of impressions, how- ever received, is the subconscious. Within its mystic cham- bers are packed all our yesterdays. In the rearranging of these subconscious thought materials lies the possibility of a new and effective combination, the bringing forth of original conceptions. This usually is the fruit of musing and solitude. The brilliant schemes of Cecil Rhodes were in the main de- veloped during morning rides over the mountains in South Africa. Riding alone across the deserted slopes, with the stupendous works of nature frowning down upon him, Rhodes was able to commune with himself in peace. He recognized what many a harassed executive has not yet grasped, the supreme value of an idea well matured. The brilliant minds which for centuries found in philos- ophy, literature, or science the intellectual element they craved are to be from now on in steadily increasing numbers attracted by the business career. For business does afford scope for the fertile intellect, and the view, long current, that the busi- INITIATIVE AND VISION 211 ness man was merely a diligent worker who at best plodded through the day's routine without a comprehensive system, with neither imagination nor a constructive mind, must ac- cordingly give way to the conception of the executive as crea- tive thinker. The drudge may fret and tinker, Or labor with lusty blows, But back of him stands the thinker, The clear-eyed man who knows. Might of the roaring boiler, Force of the engine's thrust, Strength of the sweating toiler, Greatly in thee we trust. But back of them stands the schemer, The thinker who drives things through, Back of the job the dreamer, Who's making the dream come true. BERTON BRALEY. EXERCISES Intelligent Observation The efficient man by no means goes about open-eyed, staring at everything, but he does observe, and observe intently, the things that concern him. The way profits are made in your particular field vitally concerns you. In working through the exercise which follows, you will secure some good suggestions and improve your power to observe in places where observation is well worth your while. List on Chart 12 twenty instances in which profits appealing to you as entirely satisfactory were made. Confine this list of course to your own vocation. In compiling it you may consult daily papers, trade papers, your associates, or any other source of information applicable in your particular occupation, and the full list need not be secured at once. Simply keep alert to how profits are being made in your field and the list after a time will be completed. Do not fill out the third column until after the list of specific instances has been compiled, since its purpose is to yield you certain general principles illustrated in the concrete instances. 212 THE THINKER IN BUSINESS Keeping the Mind Alert and Active 1. Are you careful to see that your mind is in the main stream of ideas, where it can be continually stimulated? "When I want to discover something," says Thomas A. Edison, "I begin by reading up everything that has been done along that line in the past. I see what has been accomplished at great labor and expense in the past. I gather the data of many thousands of ex- periments as a starting point, and then I make thousands more." In other words, Mr. Edison in evolving those new projects which have made him world-famous as an inventor nourishes his mind in the accumulated experience of other men. He does not go it alone, a hermit shut away in some remote cave. 2. Are you open-minded, ready to receive a good idea from what- ever source it may come? "There is a principle which is a bar against information, which is proof against all arguments, and which cannot fail to keep a man in everlasting ignorance," says Herbert Spencer; "this principle is contempt prior to examination." 3. Do you talk with men who stimulate you? The ideas upon which John Jacob Astor laid the foundations of his great fortune were gained from an American furrier with whom as an immigrant he talked on shipboard. The young executive will find talking with bigger men than he a continual stimulus and source of inspiration. Join a trade club or engineers' club where men of affairs gather be a good listener and a pertinent questioner. Absorb ideas relating to your job and never miss an opportunity to study and understand the men higher up in your own concern. 4. Do you read the trade papers and books? The story of Astor's career as written in Irving's "Astoria" fired the imagination of a steamship clerk, James J. Hill, and the bound- less stretch of fertile and untilled land in the northwest became his life theme. 5. Do you use an idea file? The philosopher Hobbes took his own intellectual processes with all seriousness. "He walked much," says his friend Aubrey, "and contemplated and he had in the head of his staffe a pen and inke home, carried always a note-book in his pocket, and as soon as a thought darted, he presently entered it into his book, or otherwise he might perhaps have lost it." INITIATIVE AND VISION 213 President Patterson of the National Cash Register Company is in this respect a worthy follower of Hobbes. His brain works day and night and he sees to it that its ideas do not escape him. Even at his bedside he has a pencil and pad to which he commits ideas the instant they enter his head. Every morning he dictates to a secretary dozens of orders to be transmitted to the various heads of departments. "All the great orators of the world have planned out their creation to the smallest details," says Clarence M. Woolley, President of the American Radiator Company, "all great achievements have first existed in the mind of some man." One of these great achievements may germinate within your mind today. Welcome it. Jot it down, dictate it in a memo to yourself, file it; by all means do not let that idea escape for it is stuff out of which profits are made. 6. Do you meditate upon what you have heard and read? Each person is unique, with a life purpose all his own ; and an TWENTY SPECIFIC INSTANCES IN EACH CASE THE PROFIT WAS MADE AS FOLLOWS THESE VARIOUS WAYS FOR MAKING PROFITS REDUCE THEM SELVES TO Test Chart 12. How Profits are Being Made in My Field 214 THE THINKER IN BUSINESS idea from outside is not really his and ready to meet his needs until it has passed through the crucible of his own thought. Meditation accomplishes this. Such meditation is purposeful, not the mere won- dering about what may happen, over which so much time is con- sumed. "Our most useful cogitations are not pure reveries, absolute driftings," says James, "but revolve about some central interest or topic to which most of the images are relevant, and toward which we return promptly after occasional digressions." This constitutes fruitful thinking. 7. Are you giving to creative work the time it justly leserves? Ideas are intangible, and in an age of machinery and materialism their significance is, no doubt, obscured. Yet ideas are true assets, the real basis of profit, and they can be produced systematically. These questions open the way to profits with a realness which unless you fill out Test Chart 12 you cannot appreciate. This exercise provides you certain general principles and concrete suggestions which will increase your own profit-making power. Does it not convince you that conspicuous gains are associated with new enterprises and new methods? CHAPTER XII THE FEASIBLE PROJECT It is surprising how many bright business men go into im- portant undertakings with little or no study of the con- trolling conditions they risk their all upon. JOHN D. ROCKEFELLER. The Commercial Instinct The man of creative ability, the possessor of initiative and vision as these qualities have been discussed in the preceding chapter, runs the risk of becoming so captivated by the ideas which flash through his brain that he develops nothing sys- tematically. A creature of enthusiasm, he perhaps lacks practical sense and, in the more pronounced cases, while in want himself, sees the fruits of his inventions enrich the more prosaic but better balanced men by whom these inventions were commercialized. Such a man was Charles Goodyear, an inventor who be- lieved in the then useless india-rubber as a saint believes in heaven. His friends regarded him as a monomaniac. In spite of poverty, family sickness, loss of friends, ridicule, and a series of disastrous experiments, he kept on for years testing different methods of manufacture, even dressing him- self in clothes made of his samples in the hope of proving its durability and of securing some advertising. He was certainly an odd figure and in his appearance quite justified the remark of one of his friends who, upon being asked how Mr. Goodyear could be recognized, replied: "If you see a man with an india-rubber coat on, india-rubber shoes, an india-rubber cap, and in his pocket an india-rubber purse, with not a cent in it, that is Goodyear." 215 2i6 THE THINKER IN BUSINESS After having firmly established the merits of india-rubber, he was still too thoroughly an inventor and too little the man of business to protect himself from schemers who plundered him of the profits of his invention. The United States Com- missioner of Patents, in 1858, thus spoke of his losses: "No inventor, probably, has ever been so harassed, so trampled upon, so plundered by that sordid and licentious class of infringers known in the parlance of the world, with no exaggeration of phrase, as 'pirates.' The spoliation of their incessant guerrilla warfare upon his defenceless rights has, unquestionably, amounted to millions." Notwithstanding the epoch-making character of his in- vention, which brought millions to others, Goodyear himself died insolvent and left his family heavily in debt. The long career of Thomas A. Edison, on the other hand, so richly and variously productive, is evidence of what can be achieved when originality is directed by the sense of what is practical. An experience of his suggests the value of the early "hard knock" which earnest men have so frequently turned to good account. Mr. Edison's first invention was a device for registering votes promptly and automatically; each legislator had only to press a button and in a flash the final result "Aye" and "No" was set forth. The proud young inventor demonstrated the machine before a committee of the National House, in the full expectation that its merit would at once be appre- ciated. An experienced legislator with two sentences dismissed the device over which the young man had toiled for months : "Young man, if there is any invention on earth that we don't want down here, it is this. One of the biggest weapons in the hands of a minority to prevent bad legislation is filibus- tering on votes, and this instrument would prevent it." The idea was unique, but not wanted. THE FEASIBLE PROJECT 217 Edison and Commercial Availability A man less shrewd might have raved against "the un- appreciative public," but not Edison. On the contrary, he made the decision upon which his later remarkable achieve- ments in large measure depend, viz., his inventive faculties henceforth were to be devoted only to things for which there was a genuine demand. "The point in which I am different from most inventors," said Mr. Edison not long since, "is that I have, besides the usual inventor's make-up, the bump of practicality as a sort of appendix, the sense of the business or money value of an invention. Oh, no, I didn't have it naturally. It was pounded into me by some pretty hard knocks. Most inventors who have an idea never stop to think whether their invention will be salable when they get it made. Unless a man has plenty of money to throw away, he will find that making inventions is about the costliest amusement he can find. Commercial availability is the first thing to consider." Reflection Performs an Essential Service Success in the conduct of business requires sound, cau- tious judgment. No man can get on, of course, without alert- ness of mind, the power to think of things to do. But there is no man who can carry the responsibility of building a business, or directing the work of other men unless he has a shrewd sense of what it is safe, wise, and profitable to do. The man of phenomenal creative power, therefore, requires an extremely heavy balance wheel. Such a balance wheel, the machine of analysis and trained judgment, is reflection. Under its control the native impulse to act upon whatever idea may have captivated the mind is to some extent checked and thrown back upon itself. Selective thinking ensues; in conse- quence of its searching tests numberless ideas of inferior 2i8 THE THINKER IN BUSINESS worth are sternly subordinated or weeded entirely from the mind so that the most practical may hold sway. Andrew Carnegie on Business Judgment The business man might of course put all his ideas into operation as they were first conceived and try them out by the test of actual experience. Experience, though valuable, is proverbially a dear teacher, and her charge ought to be an- ticipated rather than recklessly incurred in testing impracti- cable ideas. Such ideas can no more produce profits than figs can grow upon thistles. Their ultimate end is disaster, and the chief purpose of reflection is to restrict such disaster to the mental world; to have done there with impractical ideas, rather than have them externalized as costly mistakes in brick and mortar, steel girders or long-term contracts. "Those who fail may say that this or that man had great advantages, the fates were propitious, the conditions were favorable to him. Now, there is very little in this," declares Andrew Carnegie; "one man lands in the middle of a stream which he tries to jump, and is swept away, and another tries the same feat, and lands upon the other side. "Examine these two men. "You will find that the one who failed, lacked judgment; he had not trained himself; could not jump; he took the chances. He was like the young lady who was asked if she could play the violin; she said she 'did not know, she had never tried.' Now, the other man who jumped the stream had carefully trained himself ; he knew about how far he could jump, and there was one thing 'dead sure' with him. He knew he could, at any rate, jump and try again. He had shown judgment." Because among the numerous projects available it selects those most likely to succeed, reflection constitutes a wonderful short-cut to results. THE FEASIBLE PROJECT 219 The "Sure Thing" Delusion The selection of projects most likely to succeed, while es- sential, does not satisfy the cupidity of the simple-minded ex- pecting the discovery of a highly profitable "sure thing." These persons are beset by a vain delusion. Changing con- ditions in business, as every man who makes money sooner or later comes to recognize, while they provide the profit-seeker with opportunity, afford him no real guarantee that his ventures will prove successful. Should he take hold, he incurs risk. Since prices do fluctuate, what is easier than to buy low and sell high, and thereby reap a fortune? Nothing, so runs the amateur's opinion. And he has no difficulty in pointing out what would have been had he dealt in wheat or copper or stocks. In actual practice, price changes prove difficult to forecast and have entailed disaster incessantly to the un- skilled operator. Inventions have brought wealth to their respective in- ventors in only a very small percentage of cases, while millions of dollars are squandered in the promotion of devices which are complete failures from the business standpoint. Neither do improved methods of production represent certain gain, since continual outlays for experiment and installation are involved and competition is thereby sharpened. Nor does the exploitation of natural resources guarantee gain with no possibility of loss. In the more highly speculative ventures, such as gold-mining, it is questionable if more wealth has not been wasted in non-paying mines than has been secured from rich strikes. The Risks of Business In short, whatever be the source of profits utilized, risk characterizes every business enterprise. "It is often a heart- breaking undertaking," observes John D. Rockefeller, "to 220 THE THINKER IN BUSINESS convince men that the perfect occasion which would lead to the perfect opportunity would never come even if they waited until the crack o' doom." The wise executive recognizes risk as a factor which can never be avoided and, instead^ of de- ceiving himself with the idea of a "sure thing," he accepts each venture as a chance whose hazard is to be guarded against and reduced by deliberate, systematic thought. The existence of risk means nothing more than that cer- tain essential factors are _shrouded in uncertainty. Its sys- tematic reduction calls for a mind able to carve its way into this maze and4ay bare the factors at issue/S This power and the habit of anaylsis was developed to a high degree in Abraham Lincoln and its possession was un- doubtedly the chief cause of his astonishing advancement. His mind (we are told by W. H. Herndon, who was for many years Lincoln's law partner) ran back behind facts, principles, and all things to their origin and first cause to that point where forces act at once as effect and cause. He would stop in the street and analyze a machine. Clocks, omnibuses, languages, paddle-wheels, and idioms never escaped his obser- vation and analysis. Before he could form an idea of any- thing, before he would express his opinion on a subject, he must know its origin and history in substance and quality, in magnitude and gravity. He must know it inside and out- side, upside and downside. He was remorseless in his analysis of facts and principles. When all these exhaustive processes had been gone through with he could form an idea and express it; but no sooner. He had no faith in, and no respect for, say-so's, come though they might from tradi- tion or authority. Thus everything had to run through the crucible, and be tested by the fires of his analytic mind ; and when at last he did speak, his utterances rang out with the clear and keen ring of gold upon the counters of the under- standing. The Problem-Solving Type of Mind This power which Lincoln cultivated so zealously of thinking things out thoroughly, the average man perhaps THE FEASIBLE PROJECT 221 envies, yet seldom will he subject himself to the discipline required for making it his own. Although popularly termed thinking animals, hardly any of us really like to think; when- ever possible we all dodge the task. Nevertheless, the guid- ance of the large-scale modern enterprise raises problems which only persistent thought can solve and it is to be noticed that the executives who under the new regime advance themselves into captaincies of industry have not dodged the task. These men in business exhibit the same problem-solving type of mind as did Lincoln in politics. In his thirst for information, E. H. Harriman dug deep into the inner workings of his railroads, studied rates, towns, territories, bridges, locomotives, rails, ties, and men. Charles Mellen, when unexpectedly appointed railroad superintendent, proceeded to make his. home in the switchyards, baggage cars, and roundhouses, counseling with switchmen, trainmen, engi- neers, firemen, and roundhouse foremen, and in general put- ting in eighteen to twenty hours' intensive study daily. So insatiable in analyzing the Great Northern's prospects was James J. Hill that his knowledge of its territory became al- most that of a stage-driver. While other men were regarding the idea of a transcontinental railroad as entirely chimerical, Collis P. Huntington proposed that a definite survey be made, and supplied a large portion of the funds required. When Grover Cleveland accepted the trusteeship of the reorganized Equitable Life Assurance Society he studied the matter in his thorough, painstaking way until, as one of the young life insurance presidents used to say, "the old man knew more about insurance than any of us." Convinced years ago that science was to play an important role in steel-making, Charles Schwab says: "In my own house I rigged up a laboratory and studied chemistry in the evenings, determined that there should be nothing in the manufacture of steel that I would not know. Although I had received no technical education, 222 THE THINKER IN BUSINESS I made myself master of chemistry and of the laboratory, which proved of lasting value." The Mastery of a Business These men all possessed the problem-solving type of mind which, early utilized in dealing with small matters, enables the business man to move with firm confidence in large affairs. For the vagueness in which these large enterprises at first ap- pear enshrouded disappears upon analysis and there is revealed instead a number of questions so specific that the mind cannot fail in due time to assert its mastery over them. "Forty years ago I was impressed with the value of analysis in business," says John H. Hanan, the Brooklyn manufacturer, "and that hour was the beginning of whatever success I have had." The outstanding fact about the problem-solving mind is that it is invariably the result of a considerable period of train- ing and practice. A man can not develop a sound judgment overnight, but he can in time develop it through solving the actual problems of the small place, the limited job. The sub- ordinate position, in consequence, is not only a perfectly ade- quate place to learn to handle the big enterprises; it is practi- cally the only place. Getting at the Essentials Each problem the executive is called upon to solve con- stitutes a little world in itself within whose labyrinths the reflecting mind could stay interminably running over the numberless phases of the question at issue, seeking out fresh points of view, developing whole crops of new suggestions, guessing, and comparing. The true executive invariably cuts short this Hamlet-like process. With him the selection and survival of fit thoughts, the elimination of the unfit, is vigor- ously attended to; he thinks with a purpose. THE FEASIBLE PROJECT 223 The following incident, chosen from many of its kind, in the career of Thomas A. Edison well illustrates positive thought in operation. On this occasion Mr. Edison had de- cided to study a certain part of the mechanism of typewriters. "Have a model here next Tuesday of every typewriter made," he said to one of his assistants. "Have each com- pany send an expert to explain its machine. And get me out all the books in the library about this piece of mechanism." Monday evening the assistant called Mr. Edison's atten- tion to a stack of books several feet high, and reminded him of the appointment next day. "Send the books up to the house. I'll look them over to- night," said Mr. Edison. The next morning he appeared at the exhibition, and so thoroughly had he read the books that he frequently corrected the experts' explanation of how their own machines worked. The assistant, out of curiosity, tried reading the references that Mr. Edison had absorbed in one evening, and it took all his spare hours for eleven days. Mr. Edison in his swift pace had cut straight to the mark. This method is characteristic of men who do things ; they push directly along the great highways of thought. Keeping the Right Road In the business world, which to the beginner seems a maze and which is sufficiently complex even to the officials of great and successful corporations, the importance of dis- tinguishing essentials from non-essentials increases year by year. The ability to manage a business demands the applica- tion to its problems of the same habits of thought which in the physical and natural sciences have again and again demon- strated their effectiveness. In other words, the business men advancing to the helm of affairs in this country must be scientists not that they must work in laboratories, but that 224 THE THINKER IN BUSINESS they must apply the method common to all branches of learn- ing, the procedure of a logically trained mind. Amid phenomena mingled in endless diversity, as we find it in business, science has for its aim the discovery of true relationships. Order and system normally follow in its train however diverse may be the field, since the scientific mind, immersed as it may be in apparently heterogeneous details, is alert in detecting similarities and differences, in weighing the evidence for and against any idea or statement which may present itself. Those items which are not essential in a given case are eliminated and those which are actually of importance are revealed. In this process the scientific mind is first of all ever on its guard against weaknesses within itself: indolence, prejudice, fear of looking unpleasant facts in the face. All these are errors to which human nature in every age is subject. "Men believe easily what they wish to believe," said the greatest man of the greatest empire of antiquity, Julius Caesar. Lord Bacon's Warning Centuries afterward Lord Bacon elaborated the warning in his "Novum Organum." The human understanding, when any proposition has been once laid down (either from general admission and belief, or from the pleasure it affords), forces everything else to add fresh support and confirmation; and although most cogent and abundant instances may exist to the contrary, yet it either does not observe or despises them, or gets rid of and rejects them by some distinction, with violent and injurious prejudice, rather than sacrifice the authority of its first conclusions. It is the peculiar and perpetual error of the human understanding to be more moved and excited by affirmatives than negatives, whereas it ought duly and regularly to be impartial ; nay, in establishing any true axiom the negative instance is the more powerful. The human understanding resembles not a dry light, but admits a tincture of the will and passions, which generate THE FEASIBLE PROJECT 225 their own system accordingly; for man always believes more readily that which he prefers. He, therefore, rejects difficulties for want of patience in investigation ; sobriety, be- cause it limits his hope ; the depths of nature, from super- stition ; the light of experiment, from arrogance and pride, lest his mind should appear to be occupied with common and varying objects; paradoxes, from a fear of the opinion of the vulgar; in short, his feelings imbue and corrupt his understanding in innumerable and sometimes imperceptible ways. The Danger of Deceiving Oneself The danger so impressively pointed out here is real. The inevitable consequence, should one not take the proper steps to avoid it, is the appearance of that most serious of all defects in the otherwise practical man self-deception. "When a man's affairs are not going well, he hates to study the books and face the truth," says Mr. Rockefeller in explaining his procedure. "From the first, the men who managed the Standard Oil Company kept their books intelli- gently as well as correctly. We knew how much we made and where we gained or lost. At least, we tried not to deceive ourselves." "Things and actions are what they- are, and the conse- quences of them will be what they will be; why then should we desire to be deceived?" asks Bishop Butler. The victim of this ostrich-like ignoring of the facts is able to make no satisfactory reply to the Bishop. We as business men must recognize the warping effects upon the judgment both of prejudice and of prepossessions, must seek to retain the open-mindedness with which as chil- dren we were endowed, and yet, in fulfillment of the respon- sibilities resting upon us, must investigate systematically and without ceasing each problem which is ours to solve. "Separate the problem from yourself; think of it as a fascinating episode that happened years ago/' is the advice 226 THE THINKER IN BUSINESS of Dean Gay of the Harvard School of Business Administra- tion. Procedure at the General Electric Plant When the problem-solving type of mind faces some new problem, what, in general, is its method of operation? The answer to this question, in terms familiar to the business man, appears clearly in this incident which took place in the shops of the General Electric Company. The manager of one of the departments had observed the need for a new type of circuit breaker, as the breaker then in use an electrical switch con- sisting of a handle and three copper prongs fitting into grooves was not satisfactory. His procedure according to the ac- count in World's Work was thus : At eleven o'clock an idea occurred to him and by two in the morning he had worked out three definite forms. The next morning, he called in one of his assistants, explained his third form to him, and told him not to report at the works again until he had made the sketches that would put it in shape to be explained to the management. Two days later the assistant brought in the sketches. The two men discussed them. Changes had to be made. Two more trials were necessary before the sketches were in shape to show to the technical director of the works. Then the invention went through these steps; a confer- ence with the sales department to determine at what price the device must be sold to be successful; an appropriation to cover the development of the device (working drawings and models) ; the making of an original set of working drawings ; discussion of the drawings by the management and their approval ; the making of a model by the model shop; another conference on objections from the sales de- partment to the form of the device ; tests of the model for practical work; the correction of the defects shown by the model in practice ; the correction of the drawings to corre- spond to the revised model ; the designing of models of the device in different sizes; an appropriation for the manufac- turing of the device in lots of 100 for general sale ; the draw- ing up and filing of an application for a patent; the giving of instructions how to build it, from the engineering de- THE FEASIBLE PROJECT 227 partment to the factory; the inventing and building of the machinery necessary to manufacture the device in large lots ; and a test of the first product. From the manager's idea to the completion of the first commercial sample took six months ; and from the comple- tion of the sample to the time when the device was being manufactured in all sizes as a commercial product, took two months more. To perfect the invention and carry it to the point where the first lots were put on sale, cost the com- pany $4,000. The Systematic Elimination of Risk The problem-solving type of mind faced with a newly created problem in general concerns itself with : 1. Analysis; what are the factors at issue? 2. Evidence; what are the facts involved? 3. Experience; what results are shown in practice? These three processes analysis, the use of evidence, and the test of practice as evolvers of the practical idea proceed together, inextricably interwoven. Their combined effect is the systematic elimination of risk. How far shall the elimination of risk be pursued in the case of those stirring new projects proffered us more or less continually by the creative impulse? Since even to the most conservative, who in consequence must be satisfied with the smallest of returns, the proposition 100 per cent certain con- tinues to exist as an ideal unrealized, the business man does not hesitate to accept a certain degree of risk. His aim is simply the reduction of risk until, in proportion to the chances for profit, it becomes reasonable; and the use of his problem- solving machinery beyond that point represents unprofitable expenditure. "The trained mind," as Professor Dewey points out, "is the one that best grasps the degree of observation, forming of ideas, reasoning, and experimental testing required in any 228 THE THINKER IN BUSINESS special case, and that profits the most, in future thinking, by mistakes made in the past." Superior Reasoning Ability in Practice Let us assume that the financing of three industrial enter- prises, the propositions similar in all essential respects, is laid before bankers A, B, and C respectively. Under ideal condi- tions the investigation required would cost $20,000; A, whose problem-solving machinery works at an efficiency of 90 per cent, spends $22,222, whereas B, whose similar efficiency is 80 per cent, requires $25,000, and C, whose rating is but 50 per cent, needs $40,000. In comparison with A, B is handi- capped $2,222 and C $17,778. Or on the other hand, sup- posing that the three expend the same amounts, B and C will still be handicapped in that they will be assuming more serious risks than A. The problem-solving type of mind, because of the superior effectiveness with which it operates in this respect as com- pared with the average intelligence, secures its possessor equal risk at less cost in time and effort or less risk at equal cost. EXERCISES First Ideas Ideas for the making of profits are continually occurring to you. Our exercise concerns these. Make a list of the first ten such ideas as they come to your mind entering them upon Test Chart 13. Do not examine them critically; in fact, do not examine them at all, but simply make a note of each in order as they appear until ten have been collected. Next put each through the tests outlined in this chapter. In their original form, do your ideas possess high or low chances of winning you the profits desired? The Sifting of Ideas Men will differ in the percentages shown, the imaginative mind which tumbles out projects ceaselessly showing naturally a higher THE FEASIBLE PROJECT 229 mortality rate in its ideas than the slower, more methodical thinker. What does this exercise reveal to you regarding the relative im- portance for profit making of original ideas and the means for VENTURE AS FIRST CONCEIVED MODIFICATIONS I SUBSEQUENTLY MADE IN IDEA TOTAL PROFITS SECURED OF PROFITS ORIGINAL IDEA CONTRIB- UTED THIS PERCENTAGE i. 2. 3- 4- 5- 6. 7- 8 9- 10. AVERAGE PER C ENT DUE TO ORIGINAI .. IDEA ..% Test Chart 13. History of Ten Ventures rendering them practical? Does your strength lie primarily in initiative or in judgment? Practical ideas, we may conclude, are those fitted to survive .the struggle for existence which takes place among the ideas evolved within the mind. They represent at all times the result of a more or less persistent, oftentimes laborious and painful, process of selec- tion. This is necessarily so. ''Roasted pigeons don't fly into one's mouth," is the way Daniel Guggenheim, President of the American Smelting and Refining Com- pany, puts it. "You have' to find a pigeon, you have to be able to shoot him, then you must clean him and roast him before you can eat him. So it is with business." The severe death rate which prevails among the products of our creative impulse is by no means peculiar to executives but holds true 230 THE THINKER IN BUSINESS of all men producing ideas at once original and practical. The business man loath to train his problem-solving apparatus upon some idea with which he for the time being is captivated, may ponder with profit, therefore, the words of the famous scientist Michael Faraday : "The world little knows how many of the thoughts and theories which have passed through the mind of a scientific investigator, have been crushed in silence and secrecy by his own severe criticism and adverse examination ; that in the most successful instances not a tenth of the suggestions, the hopes, the wishes, the preliminary conclusions have been realized." CHAPTER XIII TESTS OF REASONING We must not then add wings but rather lead and ballast to the understanding, to prevent its jumping and flying. SIR FRANCIS BACON. Exact Knowledge Needed "Modern scientific management," says Vice-President Peck of the Link Belt Company, "is exactly what the name implies management based on knowledge on ascertained facts rather than on opinions, however brilliant, of workman, fore- man, superintendent, or manager." The last word has the significance. The wise executive, while relying ultimately on his own judgment, checks up his own opinion by the opinions of others who approach the problem from different angles. But more than opinion he seeks information, definite and clear statements of observed facts bearing on the case in hand. Sources of Information Where is such information to be derived? Where not? Reports of every description come to hand, from within the organization and from outside. Information comes through visits of inspection and investigation; through conferences both official and informal; through correspondence, official and personal; through reading of trade papers, government publications, and books. The range of persons concerned in providing information for the executive is equally great. It includes his fellow officers. It includes his subordinates of all ranks, who are perhaps nearest to actual conditions. Then there are the official investigators and examiners the auditor, the field 231 232 THE THINKER IN BUSINESS investigators, the lengthening list of specialists : statisticians, chemists, cost experts, etc. Finally, in the case of most shrewd and successful executives, there are counselors on the outside whom he calls in when necessary. Testing the Evidence The information which these several sources focus upon the executive's desk varies widely in value. Part of it is truth itself, part the beliefs of misguided yet sincere persons, part the work of deliberate falsifiers. The testimony must be subjected to searching criticism before final acceptance. Criticism, analysis, is the necessary complement of imagi- nation. Imagination sees the whole in the part the finished work in the specimen. It says: What I have seen leads me to believe that the whole enterprise (or article) will be valua- ble, sound, profitable, etc., providing the portions yet to be filled in are up to certain standards of execution, etc. Analysis makes sure that the parts are all filled in and that they are up to specifications. It takes an inventory. It cross-examines the new plan. It goes over every item of the proposition and tests it out sternly, making no allowances, assuming in order to be safe that what is not present perhaps is wrong, unfa- vorable, hostile. How can we test our ideas, test that deliberately controlled sequence of ideas which we call thinking? Chiefly by going over the steps of the process to see whether we have made mistakes. This is the method which all of us use. The scientist does the same things as the untrained man, only more carefully and systematically. The untrained man rarely takes a trial balance of the evidence for and against a certain view. He assumes as a matter of course that his mental processes are accurate and sufficient and acts accordingly, whereas the scientist tests his thought constantly, making sure of every step he takes. TESTS OF REASONING 233 Systematic and Accurate Procedure When the untrained man does test his thought, moreover, he is apt to do it unsystematically, whereas the scientist is careful to use orderly, even procedure. Knowing the prone- ness of the mind to jump the track, the scientist observes strictly the rules of the game while analyzing; he is careful to pin down each idea in a set place and order. But the most important difference is this the scientist strikes for essentials and thereby makes his analysis at once swifter and more accurate. Analysis, criticism, is not mere faultfinding. Mere fault- finders are often among the most easily deceived; they do not know where the weak spots are. When the Twentieth Century stops at junction points in its wonderful run, train- men with torch and hammer go along tapping wheels and axles, here and there. It is quickly done just a light tap at a certain point. Untrained men, merely because they do not know the critical points where the strain comes, might tap all over the wheel yet miss the weak spot . Analysis for the Executive The system of analysis or critical method which the man in an executive position is to use, if it is to secure him superior results, should have three characteristics : 1. It should be reliable and accurate. 2. It should be generally applicable to all sorts of ideas, problems, etc. 3. It should be simple and quick. The man in an executive position is obliged to decide many different kinds of questions. In most cases he cannot pretend to expert knowledge, since knowledge in any line comes only after long, specialized study and experience. He has all kinds of problems put up to him by his subordinates, all of whom 234 THE THINKER IN BUSINESS are individuals with divergent information and different view- points. It is necessary, unless the business is to slump or the tenure of his job is to be terminated, for him to give sub- stantially the right answer to question after question. The executive faced with these various problems never for- gets also that he is in charge of a going concern, which means that decisions must be prompt. He is in a very different posi- tion from that of the scientist in his laboratory, or the judge in a court of law. The judge, for instance, has practically all the time he wishes, and he has at hand a carefully selected and classified array of the opinions of other judges on this point. The executive needs, in order to make headway, a reliable working apparatus for testing ideas, proposals, and methods. If the plan passes this scrutiny, and if it is important in any way, it may then be tested more deliberately by the persons of special knowledge who are familiar with the case. What Does the Idea Mean? The first step in .testing an idea, method, or proposal, is to see what it means. Express it in terms of your habitual ac- tivity so that you are sure of just what is implied by every part of it. This would seem a matter of course, and yet hardly any step is more neglected in common life. The lawyer scruti- nizes at once the language of the statute, or the contract on which his case depends. The chemist proceeds at once to an analysis of elements in the specimen placed in his hands. But the "busy" executive often jumps at the meaning of a pro- posal without translating it with any definiteness into the terms of his actual business life. A large proportion of the difficulties and misunderstandings which the executive has to adjust come from neglect on someone's part to grasp the exact significance of a proposal, or order, or explanation. It is as if a purchasing agent were to order goods on every TESTS OF REASONING 235 requisition placed in his hands without troubling himself to see whether they are already in the stores department. The fact is that many proposals, improved methods, etc., reveal their futility at once when we grasp their plain meaning. The psychologists call this part of the testing process "definition of terms." The phrase is useful if we keep in mind that we are concerned here not with words but with ideas. Lincoln was particularly good at this, and it con- tributed largely io^ his success. A man who sees clearly the object which is held before his eyes knows at once, in most cases, whether or not he likes it. So when a person com- prehends what a proposed business plan implies he can gen- erally decide at once whether it is worth investigating. Time and care spent at this point will invariably save time and effort later on. Furthermore, it is the necessary basis for other tests. When the Government's coal order came in the winter of 1918, stopping work on Mondays, the suggestion was made to lengthen the working day for the rest of the week to an equivalent extent. The office manager had to consider vari- ous items before he understood the meaning of that proposal. "TTwould involve altered arrangements for light and heat, janitor and elevator service, and the making of new shipping and mailing schedules, etc. It would involve also the difficul- ties, real and fancied, which employees might have in adjust- ing themselves to the changed hours. When he knew what the proposal really meant, for his business, he was prepared to consider its value. Competence of the Witness Once we know what an idea means the next question is usually : Who brings it up ? Merchandising plans suggested by the advertising manager of Wanamaker's will arrest the attention of any merchant. The fact that a plan brings an introduction from a good source does not prove that we 236 THE THINKER IN BUSINESS should accept it, but it is warrant for admitting it to the waiting room for closer scrutiny. In estimating the credibility of a witness we consider mainly : 1. His General Intelligence and Standing. A matter brought up by a trusted official of the company has the pre- sumption of an attentive and favorable hearing so with one brought up by an old customer in good standing, or the repre- sentative of a well-known firm, even though there have been no previous dealings with him. 2. His Knowledge of the Particular Case in Hand. The opinion of an expert on his specialty of the head bookkeeper regarding ledger systems, the janitor regarding ventilation, cleaning, etc., the clerks in the mailing department regarding stamping or letter-opening machines merits always careful consideration. 3. His Freedom from Bias. This is a necessary check on the preceding test; the expert is usually more or less swayed by prejudice regarding his specialty. One who is "on record" with regard to a particular matter is not often entirely open-minded in his attitude. 4. His Honesty; How Far He is Swayed by Self-Interest. This test is constantly in use by the man in an executive posi- tion. Most of the proposals of all sorts which come before him are some way bound up with intentions of profit for someone. He must decide how far the statement or the con- duct of a person concerned is to be taken as sincere; to be relied on. Often the expert, of even high intelligence, must lie under suspicion because of the possibility of self-interest. The Idea Itself i. Its Apparent Reasonableness. A third test considers the idea by itself. Does it for one thing appear consistent with well-established experience; with other known facts in TESTS OF REASONING 237 the caee; with itself? As a rule this test, like the preceding, gives only presumption. Nearly every original idea seems more or less unreasonable, inconsistent, at first sight. Never- theless, the test is of great practical usefulness, in warning us to be cautious as to further investigation. Sometimes it is decisive, revealing fatal dishonesty or error. The lawyers use it constantly in this way. On one occasion Lincoln was defending a man charged with murder the Grayson case. He obtained from the chief witness for the prosecution the sworn statement that he had himself seen the shooting by the light of the moon. Then Lincoln proved from an almanac that there was no moon on the night in question. 2. Its Importance. This test of the importance of an idea is used constantly by every man in practical life. Supposing that a given statement is true or that a suggested plan will work, what difference will it make on the whole? Is the amount at stake in one or another way sufficient to justify possible interference with other matters? Does it justify even further investigation? Many a project, irreproachable but trivial, is shown the door at this point. On the other hand, the executive with insight sometimes perceives a profoundly important issue at stake in something which appears to be trivial as Henry Ford did in the case of the radiator cap. (See Chapter X.) Correctness of the Process of Reasoning Finally, we may test the reasoning, the accuracy that is to say, of the process by which one thought leads to another. This is the most certain, but the most difficult way of testing. Reasoning consists of a series or chain of judgments. You know or believe that a certain thing is true. You discover that that thing depends upon another so closely that if the first is true the second must be equally true. This in its turn you discover depends with equal closeness upon a 238 THE THINKER IN BUSINESS third. You accept the third accordingly as equally true, and so on. Psychologists and lawyers, who must do their work thor- oughly, have carefully worked out and classified the more frequent defects of reasoning, the ways in which we may be deceived in passing from one judgment to another, and have indicated convenient methods of detecting these errors. The difficulty is that these classifications made by psychologists and logicians for their own use are far too detailed and com- plicated for the busy executive. They are to be used by specialists. We may simplify these "rules," "tests," "canons," etc., applied to the process of reasoning somewhat as follows : When we seek to test the soundness of any argument, any process of reasoning whatever, we should apply to it the following three questions in as much detail as seems necessary. Correctness of Premises 1. Are the "premises," that is, the successive statements as to fact, accurate, correct? This is really applying to the single statements the test applied above to the whole idea. Often errors are discovered at this point. Take for example the argument: Interference with another man's business is illegal. Underselling interferes with another man's business. Therefore bargain sales are illegal. Here, as a little reflection shows, the term "interference with another man's business" is used in two different senses in the first and second statements. Incorrect Sequence Analogy 2. Do the premises really lead to the conclusion offered? Under this come at least two possible cases: TESTS OF REASONING 239 (a) Is the apparent connection of premises with con- clusion merely accidental ; for instance, is the rela- tion of premises and conclusion merely one of analogy? The following instance seems so extravagant as to be quite improbable, yet we have all known apparently sensible persons to reason just as hastily: "I positively refuse to employ any cashier in this bank who wears rubber heels," declared the president of a fairly prominent bank. "Such a man is dishonest." It was found that a former cashier, who wore rubber heels, had absconded with funds sufficient to entail a heavy loss upon the institution. In advocating business plans the temptation to use analogy is constant. It is not always so easily detected as in the fol- lowing from a prospectus: "The history of the Standard Oil Company is known by everybody from Maine to California," announces a promoter, with much truth. "It is the greatest money-making industry in the world. The X Y Z Company does not expect to achieve such great financial success as the Standard Oil Company, but it is in the same line of business refining and therefore its stock should be purchased for the very great profits that seem to be assured for those who invest now in its treasury stock." Of course the fact that one oil company has succeeded is by no means proof positive that another will do so. Incorrect Sequence Evidence Not Sufficient The second case under this head is even more troublesome : (b) Is the inference of conclusion from premises based upon too few instances, or upon those which are not representative? This is one of the chief causes of faulty reasoning in life 240 THE THINKER IN BUSINESS and in business. It is important but often difficult to recollect that one swallow does not make a summer. The apparent success of a plan in a few cases, of which we have heard, cannot safely be taken as conclusive. In important matters a decision should be based on instances which are sufficient. The following is from an advertisement of a school of advertising : Walter McMillan will serve as a good illustration of a young man who "woke up." He was employed as a clerk by the Armour Packing Company of Kansas City, with nothing in prospect but the desk with its endless drudgery. He read the signs correctly, and after careful investigation decided that the Carlton College of Advertising could give him the thorough, practical advertising education he craved. Al- most immediately after completing the course he was re- ferred by the college to the Kansas City Journal, where he started at just four times the salary he was receiving in his former position. He is there today and has been still further advanced. What Mr. McMillan has done you can do. Interesting but not conclusive. The formula "clerk -f- Carlton College of Advertising course = newspaper position +4 times former salary" is far from universal. An engineering company constructing a large power-plant dam was investigating the local rainfall and flood conditions. All the records for 18 years back showed moderate, even rain- fall and no floods. But the investigators were not satisfied; they went back further yet; and they found that for the preceding 1 8-year period the records showed heavy rains and repeated floods. In all matters upon which statistics are supposed to be the final authority it is well to note whether or not these statistics cover sufficient cases to justify the conclusions drawn from them. The police reports in a certain Massachusetts town showed that its Turkish population was criminal to the aston- ishing degree of 300 per cent ! Inquiry elicited the fact, how- ever, that said Turkish population consisted of one man, who TESTS OF REASONING 241 had been jailed for drunkenness three times J Errors of this nature have been responsible for the famous remark that there were three grades of liars; plain liars, d d liars, and statisticians ! Factors Overlooked 3. Have other and presumably important factors in the case been left out of consideration? This is the most frequent and most troublesome error for the business executive. The question he has to decide con- cerns the future is it probable that such and such an action will be on the whole beneficial, profitable? Where human action is involved the factors are many and variable. "The winter before our ventilation system was installed," so runs the advertisement of a well-known manufacturer, "in this insurance company 27^2 per cent of the employees were absent owing to illness; the installation of our system the next winter cut this down to 7^ per cent." Not proved. Perhaps a mild winter, or the absence of epidemics, or the engagement of a company physician, or the installation of a different heating system, etc., may have been even more responsible than the ventilation system for this de- crease from 275/2 to 7^ per cent. This example could be paralleled no doubt in the daily ex- perience of almost every executive. The prudent man learns to look on all sides of a proposal before he lets his mind come to a final conclusion. Validity of These Tests This system described, we must repeat, consists merely in applying more deliberately and systematically the same sort of tests which we all apply in matters of daily life; whether or not to carry an overcoat this morning, whether to take this road or that, on a drive. In most of these little personal 242 THE THINKER IN BUSINESS matters our mental action is so swift as to be practically auto- matic they are attended to by the lower nerve centers, as explained in Chapter X yet if we check up our actions we find that we are really applying these tests of thinking one by one, until we are satisfied. The same tests expressed in more formal, complete, lengthy terms constitute a very important part of the subject matter of psychology and logic, the sciences which deal espe- cially with the way the human mind works. These tests accu- rately and systematically applied whether the statement of them be elaborate or brief will guide us safely in estimating business methods and projects. In fact, there are no other tests for careful human thinking. EXERCISES Problems in Analysis As an exercise for developing the judgment let us consider certain problems in analysis. In the process of analysis, similarities and differences are detected and upon these as a basis classifications are made. Study the following rules, noting, of course, the errors used for purpose of illustration and preparing answers to the questions: 1. Every division is based upon differences in some attribute com- mon to all the members of the whole to be divided. In classifying businesses as individual proprietorships, partnerships, or corporations, what has been taken as the common attribute? A statistical com- pany recently issued a circular in which industrial stocks were re- ferred to as coppers, leathers, oils, steels, motors, and marines. What was the basis of classification here chosen? 2. Each division in order to be consistent must rest upon one com- mon attribute. Should businesses be classified as individual pro- prietorships, partnerships, and monopolies, what is the basis of clas- sification taken for the first two? for the third? 3. The various groups must be mutually exclusive. A young em- ployment manager in his report was found to have classified the factory's employees into administrative, machine shop, foundry, as- sembly, and Austrians. In another instance the purchasing agent TESTS OF REASONING 243 referred to belting, oil, copper, and metals. What fallacies were involved? How would you have avoided them? 4. The division must be complete, so that the various groups when combined will equal the whole. A merchant estimated his rent, sala- ries, spoiled merchandise, and bad accounts as totaling 16 per cent and, since a profit of 20 per cent was desired, marked his goods at an advance of 36 per cent. In what respect was this figure fallacious? Let us now apply our tests concerning evidence to certain examples which have been drawn from the current newspapers and magazines. These examples have been stripped of all non-essential matter in order that the fallacies that is, the errors in reasoning may be more readily exposed. Since as a usual thing fallacies are imbedded in the midst of long statements and much perfectly good reasoning, you will find it helpful likewise to reduce questionable arguments to their barest outlines. What, boiled down to its essence, does this speaker or this article claim? Lack of ideas is fatal to business success. This efficiency expert has many ideas. Therefore you should not oppose the policies he advocates. Whatever harms people should be avoided. A tariff on steel girders harms building contractors. Therefore the protective tariff should be avoided. Bankruptcy is proof that wrong procedure was followed. Jones is a bankrupt. Therefore to succeed do just the opposite to what Jones advises. Lawsuits should be avoided. Collecting this bill from Smith involves a lawsuit. Therefore this bill should not be collected. A federal Bureau of Business Practice we declare would be un- constitutional. Things which are unconstitutional cannot become law. Therefore you should oppose a bill authorizing such bureau. War is a dreadful thing. Johnson discharged his employees who joined the militia. Therefore Johnson is a true humanitarian. The best accountant I ever employed had red hair. This accountant has red hair. Therefore I shall engage him. 244 THE THINKER IN BUSINESS Our advertising manager expected sales to exceed $150,000 per week. They have not passed 'beyond $125,000. Therefore he should be discharged. Mill's Five Canons The famous writer on political economy, John Stuart Mill, in his "System of Logic," has formulated five "canons" or rules for the discovery of "causal relations." The business man who masters these five canons, utilizing the illustrations given herewith, will find that he has definitely gained in his power of getting at the essentials. First Canon, the Method of Agreement. "If two or more instances of the phenomenon under investigation have only one circumstance in common, the circumstance in which alone the instances agree, is the cause (or effect), of the given phenomenon." An example of this method often cited by logicians is the experi- ment carried on by Sir David Brewster in his attempt to find the cause for the colors seen upon mother-of-pearl. These were quite naturally supposed to be due to the chemical or physical nature of the substance itself, but Sir David, happening to take an impression of the mother-of-pearl in wax, found that although the substances were entirely different the colors were exactly the same. He next took impressions in balsam, gum-arabic, resin, etc., and afterwards marked a metal surface with very fine, close grooves, in every case producing the same iridescent colors found with mother-of-pearl. The form of the surface, therefore, which had been the only factor remaining the same throughout, and not the chemical or physical composition, which had varied in each case, was by the method of .agreement very properly concluded to be the cause sought. Second Canon, the Method of Difference. "If an instance in which the phenomenon under investigation occurs and an instance in which it does not occur, have every circumstance in common save one, that one occurring only in the former; the circumstance in which alone the two instances differ is the effect, or the cause, or an indispensable part of the cause of the phenomenon." This is the method of experiment and its utility, as Jevons points out, depends mainly upon the precaution of varying one circum- stance only at a time, all other circumstances being maintained just as they were. The instance of the star salesman who protested against being charged with any advertising expense whatever, claiming that the sales were not due to advertising influence but to his own ability, illustrates very nicely the use of this canon. TESTS OF REASONING 245 "Very well," returned the sales manager, "you are to have Ohio as your territory then, on your old commission. We have not as yet advertised there and shall not, now that it is to be your territory." The salesman, well pleased with himself, sallied forth to conquer the Ohio territory. But business proved hard to get, with commis- sions as a consequence small, and, although for six weeks he marched and countermarched across various sections of that territory, in the end he returned thoroughly beaten to headquarters. Advertising, he was convinced, did help him on the firing line. The full validity of this proof concerning the influence of adver- tising obviously depends upon its being the only circumstance which varied. This searching question is to be borne in mind, therefore, in securing accurate results through the method of difference: Do other conditions remain unchanged? Third Canon, the Joint Method of Agreement and Difference. "If two or more instances in which the phenomenon occurs have only one circumstance in common, while two or more instances in which it does not occur have nothing in common save the absence of that circumstance; the circumstance in which alone the two sets of in- stances differ, is the effect, or the cause, or an indispensable part of the cause of the phenomenon." What we have here is a double application of the method of agree- ment, first to a number of instances where an effect is produced and secondly to a number of quite different instances in which the effect is not produced. A manufacturer, let us say, has experienced considerable trouble from complaints concerning defective rear wheels in wagons which he placed on the market. The foreman declares the difficulty is due to overloading in the wheat regions; the works manager thinks pos- sibly the relatively inexperienced mechanics engaged in one depart- ment (Department B) following a strike may have turned out some poor work which escaped detection ; while the sales manager gives it as his opinion that the dry climate in certain sections is responsible. Complaints are tabulated from several sections as follows: Complaint A: Broken wheel made by Dept. B farm use dry region. Complaint B : Loose hub made by Dept. B lumber camp damp region. Complaint C : Defective bands made by Dept. B coal delivery average climate. Complaint D: Cracked spokes made by Dept. B dairy use damp climate; etc., etc. 246 THE THINKER IN BUSINESS The returns concerning these various wagons reveal the fact that only one circumstance is invariably present, "made in Dept. B." That this is the cause sought is probable, but in order to render the conclusion still more definite, it is decided to investigate negative instances, or in other words, cases in which the wagons had proved entirely satisfactory. This reveals that the wagons made by depart- ments other than B are being used under widely varying conditions of climate and load, and that uniformly they are giving satisfaction. This information shows that where no complaints had been received one and only one condition was invariably absent; viz., the work of Department B. This confirms the previous investigation. Fourth Canon, the Method of Concomitant Variations. "What- ever phenomenon varies in any manner whenever another phenome- non varies in some particular manner, is either a cause or an effect of that phenomenon or is connected with it through some fact of causation." The directors of a certain large baking concern in their delibera- tions at a particular meeting not long since illustrated how this canon is applied. The instance, it will be recognized, has been stated in much simpler terms than actually existed for obviously no bakery's success is dependent upon three factors alone. But otherwise the conditions remain unchanged. This was the evidence placed before them: Kansas City plant run-down business. Coming of Supt. Smith= improving business. Pittsburgh plant high costs. Coming of Supt. Smith=improving business. Boston plant factional quarrels. Coming of Supt. Smith=improv- ing business. According to detailed records submitted by the firm's accountants it was clear that the increasing week by week tenure of this par- ticular executive and a plant's gradual reaching of its standard in capacity and costs were in close causal connection. The board pro- ceeded to elect Superintendent Smith general manager, and the same ability which enabled him to put plant after plant into condition is now operating successfully in a wider field. Inasmuch as business problems very frequently are characterized by change, it is found convenient to utilize this method of detecting causes from the study of concomitant variations. Fifth Canon, the Method of Residues. "Subduct from any phe- nomenon such part as is known by previous iuductions to be the TESTS OF REASONING 247 effect of certain antecedents and the residue of the phenomenon is the effect of the remaining antecedents." This method was employed by Sir Isaac Newton in an ingenious experiment in which he sought to determine the elasticity of sub- stances by allowing balls made of these various substances to swing against each other, and then observing how far they rebounded in comparison with their original fall. This loss of motion, however, Sir Isaac was well aware, is due only in part to imperfect elasticity, since the resistance of the air also enters in to effect the result. He determined the strength of this resistance by allowing the balls to swing without striking each other and observing how much each variation was less than the last. By being enabled in this way to compute the quantity which must be deducted for the resistance of the air, he had at the same time determined the elasticity of the substances under investigation, since these were expressed by the residue. It may very likely be that after the effects of all the known causes have been subtracted from a given phenomenon a residue still continues to exist. One is tempted to pass over such residue with- out further investigation, since to the average mind at least residual phenomenon are usually obscure and seemingly unimportant. Never- theless, this final canon emphasizes the importance of a complete and precise solution of the problem at hand. PART V AIDS TO EFFICIENT CONTROL OF BUSINESS To judge your business fairly, you must review the past, know the present, and judge the future from what you have done and what you are doing, coupled with a careful survey of the field in which you operate. HENRY CLEWS. Properly classified records act as a measure of efficiency; they point definitely to either a profit or a loss. LEO GREENDLINGER. CHAPTER XIV CONTROL THROUGH STATISTICS To the keen, analytical mind in business there is scarcely such a thing as chance, for this reading of the future by analysis removes the elements of uncertainty in any enter- prise. JOHN H. HANAN, President of Hanan and Son. The Problem of Control The trained mind, reasoning along the lines suggested in the preceding two chapters, depends constantly for accurate results upon statistical information. Facts, verifiable evi- dence of every operation from the purchase of raw materials to the collection of bills due, have in every progressive business establishment fairly effectively ousted Dame Chance ; the man- ager applying the best practice of today has become convinced he cannot continually guess nor wait for year-end inventories, but must exercise day-to-day control. The necessity for this close control becomes apparent upon an examination of cost data, compiled under the competitive conditions which prevail today in industry. A commodity which the manufacturer, let us say, puts upon the market for $160 has entailed the various items of expense shown in Fig- ure 23. Here expenditures of $150 yield a profit of $10 67/10 per cent on the cost price or 6 3/10 per cent on the selling price. The narrow margin speaks in no uncertain terms of competi- tion, and it emphasizes at the same time the important in- fluence upon the results of what managers of the old time school refer to contemptuously as little things; a five dollar reduction in any of these cost items increases net profits 50 per cent; a ten dollar accumulation of small wastes wipes out profits en- 251 252 EFFICIENT CONTROL OF BUSINESS tirely. These items, in short, concern the business too vitally to be left subject to chance. "In the game of business as in the game on the diamond," declares John T. Wolff, of the L. Wolff Manufacturing Com- pany, with much truth, "it is the man who keeps score on re- PROFIT SjO GENERAL EXPENSE INDIRECT EXPENSE *50 SELLING PRICE fACTOF *iz !Y C05T 15 TOTAL *yj . C05T )0 *ie 10 DIRECT LABOR PRIME COST *7 5 MATERIAL Figure 23. The Elements of Costs (Adapted from Nicholson's "Cost Accounting Theory and Practice" by permission of the publishers.) suits who follows most closely the progress and the profits of his work." The problem of statistical control is (a) how to secure the needed data most easily and quickly, and (b) how to utilize it with effectiveness in the management of a business. CONTROL THROUGH STATISTICS 253 u (O !? U (X C Q- t a: S u ^