Book Summary: Titan – The life of John D. Rockefeller
Personal life
Excessive reflection upon unpleasant but unalterable events only weakened one’s resolve in the face of enemies
Rockefeller was the sort of stubborn person who only grew more determined with rejection
He took internal monitoring to an advanced stage. He scrutinized his daily activities and regulated his desires, hoping to banish spontaneity and unpredictability from his life. Whenever his ambition was about to devour him, his conscience urged restraint.
Wealthy Cleveland businessmen have an understated style that he studied very attentively during his formative stage of his life – they went about their business without any display of power or money
He possessed a sense of calling in both religion and business, with Christianity and Capitalism forming the twin pillars.
A boy must ever be careful to avoid the temptations which beset him, to select carefully his associates and give attention as well to his spiritual, mental and material interests
Humility: It is very important to remember what other people tell you, not so much what you yourself already know
A natural leader: the more agitated others became, the calmer he grew
Friendship founded on business is superior to friendship founded on business
Love beautiful, useful things
hates frills, affectations mere pretenses of something very fine
To be fiercely revolutionary in business, he needed to be utterly conventional at home. Preferred staying at home instead of going to clubs
Every hour was tightly budgeted and rigidly compartmentalized. Daily rituals helps deal with underlying tension
We fail to achieve big things because we lack concentration – the art of concentration of the mind on the thing to be done at the proper time and to the exclusion of everything else
Always a nod and kind word for everyone and never forgot anyone
Control of self wins the battle, for it means control of others
Puritan influence
making money and delivering value to the masses as the highest level of good one could do in the service of God
I believe it is my duty to make money and still more money, and to use the money for the good of my fellow man according to the dictates of my conscience
Puritans had produced a religion that validated worldly activities, with the making of money by acquisition as the ultimate purpose of life.
Tithing instill habits of thrift, self-denial and careful budgeting – all valuable assets for any aspiring capitalist
Unlimited greed for gain is not identical with capitalism and is still less in spirit
Capitalism may even be identical with the restraint, rational tempering of irrational impulses
The man who would be rich must be thrifty
He inhabited a stoic universe in which it was considered a sign of strength and mental health to banish your cares and forget ahead instead of morbidly dwelling on your parent’s failings
He carries intimate conversations with himself
keep your eyes open. Don’t lose your balance
he fears for his own capacity for excess
he does strenuous introspection
The Oil industry
Early years
Profiles: daredevils and pioneering speculators
gold-field rush where great fortunes were made by some of the first adventurers
everything was done in a helter-skelter way
Cycle
Legions of investors lured by easy profits, rushed into new fields
big glut develops from over production
impossible to recoup investments
the higher the peaks, the deeper the deeper the troughs
John D Rockefeller period
the second more rational stage of capitalist development,
men who had grown up in the hard school of life, calculating and daring at the same time
We should borrow whenever we can safety extend the business by doing so
temperate and reliable
shrewd and completely devoted to their business
strictly bourgeois opinions and principles
distrust unfettered competition
fears booms as well as busts
preferred moderate growth
forestall potential competitors through low prices and minimize risks and chance of disruptions
Purchasing refineries and assembling a managerial team – very eager to retain original owners of the companies he acquired
On Management
Got a lot of the best men on to his team
he was big, broad and patient
worked by subtle hints, doling out praise sparingly and nudging them along
tested them exhaustively, once trusted them, bestowed enormous power upon them and didn’t intrude unless something radically misfired
his greatest talent was to manage and motivate his diverse associates
the quieter he was the more forceful his presence
Submerge his identify in the organization
preferred outspoken colleagues to weak-kneed sycophants
he would listen carefully to each person and never say a word. He would digest the whole proposition and worked out the answer
On Strategy
he was like a projectile, once launched, could never be stopped, never recalled, never diverted
There was a time to think and then a time to act
brooded over problems and quietly matured plans over extended periods
Postwar America
No more zigzags or squandered energy
Single minded focus on objectives that would lead him to achieve his goals
Continued to innovate
Valued autonomy from outside suppliers
Figure out ways to cut costs
He kept going visiting bank to bank until he managed to secure the funds he could lay his hands on to acquire the asset he needed
Always contented but never satisfied
Kept investing in infrastructure needs of his business
warehouses,
terminals
loading platforms
railroad facilities
Kept quiet on where their real source of revenue is coming from
Unflappable style and conservation of energy
Consolidation of Oil industry allow them to put a strangling hold on the RailRoad industry
Always invited employees to send complaints and suggestions directly to him. He always took an interest to their affairs
Never did anything haphazardly and wrote hundreds of thoughts of business letters that were models of concision and balanced phrasing through painstaking revision
Passion for excellence originated from him and radiated throughout the organization
Accounting
managed a decentralized empire through coordinating a vast array of data – the ledger book
reduced varied systems to a command standard
accepted harsh verdicts without hesitation
chartered the course by figures, nothing but figures
every cost computed down to several decimal places
down play the significance of technical knowledge in business – can always hire a scientist
toured the plants always asking questions and soaking in information
always jotted down ways to improve
always followed up
Assumptions on the benefits of Monopolies
Suitable for times of depression and new rapidly shifting industries
make fortresses out of otherwise centers for devastations
produce steadier and increasing outputs
Free market when left completely to their own devices could become terribly unfree
Raising offsprings
he needed to accumulate wealth while inculcating in them the values of his threadbare boyhood
he kept his kids ignorant of his affluence
they never visited his office or refineries
he trained them as miniature household workers
listen calmly, thoroughly inquire and investigate very detail of the transaction without a syllable of reproach
Wealth management
Great wealth is a great burden and a great responsibility. A great blessing or a great curse
Need to figure out how to manage the petitioners for the use of wealth
invest deeply in one big cause rather than in many feeble causes
needed a larger more efficient method for disposal of his fortune
people start assuming things of you just because you have money to spend
how to buy stocks without pumping up the price or selling them without dragging the price down
Give away money without promoting dependence
Public relations
Tell the truth because the public will find out soon either way
To constantly reinvent himself at every stage of his life.
