The Importance of History of Managers

An Exploration of the Importance ofHistory to Managers:

The Meaningful,Manipulative, and

MemorableUses of Milestones

PAULA PHILLIPS CARSON KERRY DAVID CARSON

F or guild historians, the value of hind-sight lies not in simply persuading norunderstanding nor informing. Instead, it liesin inciting discussion about the potentiality ofa circumstance. In doing so, contemporariescome to appreciate history not only for itsescapist qualities, but also for its pragmaticutility and forensic capabilities. Yet businesshistory has not always been perceived asbeing practical, valuable or deserving ofthe commitment of scarce organizationalresources. Compelled by many reasons, com-panies have traditionally neglected therecording, preservation, and institutionaliza-tion of their heritage. These reasons included:(1) a general philosophy of zeitocentrism;(2) a reluctance to publicize and promulgatesocially and economically undesirable acts bythe company; (3) the belief, well-articulatedby historian Allen Nevins, that businessand industry were dull and sordid subjectsdriven wholly by greedy profit-maximizationimpulses; (4) a preoccupation with the short-term and here-and-now to the exclusionof the antiquated; (5) the general perceptionthat it was unfashionable in our future-oriented society to dwell on eras bygone;

(6) a self-fulfilling cycle of corporate amnesiaand lack of knowledge of the companys past;(7) a weak institutional memory exacerbatedby managerial mobility and reduced depen-dence upon written documentation; and (8) afailure to conceive of company heritage as aworthwhile corporate asset.

But that was then, and this is now.Indeed, business historiography is experien-cing a renaissance of sorts. As academics andscholars publicly dispute the validity of var-ious approaches to studying business his-tory, vacillating between the Chandlerianapproach (which focuses on institutionsthemselves) and the Foucauldian approach(which focuses on the founders of thoseinstitutions), businesses have quietly beenestablishing archives and commissioningcorporate biographies to preserve bothpersonal and organizational milestones.This type of remembering is referred to asapplied history, for the disciplines appar-ent ability to highlight trigger events andwaves of historical phenomenon that mightsuggest what the future holds.

Indeed, perceiving that there is evenmarginal advantage in an awareness of a

Organizational Dynamics, Vol. 32, No. 3, pp. 286308, 2003 ISSN 0090-2616/$ see frontmatter 2003 Elsevier Inc. All rights reserved. doi:10.1016/S0090-2616(03)00029-9www.organizational-dynamics.com

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business legacy requires remaining staunchin ones belief that, while history does notrepeat itself, the present is surely an extra-polation of events that have come beforerather than a series of accidental happen-stances. It requires believing that the future,by definition, is shaped in some form and tosome degree by the present. It currentlyappears that more and more organizationsare accepting such a viewpoint. In fact,because it is now seemingly embraced bythe managerial profession, an occupationwhich has repeatedly been criticized forbeing susceptible to faddism, some suggestthe current interest in corporate heritage isbut a fleeting fashion.

Others, more cynically, infer the present-day focus on historiography has less to dowith policy-making than with public rela-tions. A pre-eminent cause attributed to therecent spark in historical interest is funda-mentally a timing issuethat is, it has beenabout a century following the Americaniza-tion of the Industrial Revolution, an era whenmany of our most vital and dominant orga-nizations were founded. And, experiencing aping of nostalgia and sentimentality, organi-zations wish to commemorate this anniver-sary. Perhaps meaningfully coinciding withthis is the significant number of consultingfirms that now concentrate on researching anddisseminating corporate history, providingopportunities to outsource for those compa-nies with the interest but not the knowledge toconduct historiographic investigations. Busi-ness writers who traditionally specialized instaples such as annual reports, advertisingcopy, and product proposals are now branch-ing out to include corporate histories in theirportfolio of offerings. Full-service consultan-cies such as The Winthrop Group, HistoryAssociates, Business History Group, The Pro-logue Group, and The History Factory focuson corporate history from collection to pre-servation to presentation. And indeed, itappears that economic conditions and com-petitive positioning are allowing companiesto take advantage of such indulgences. Whatconsultancies like these are banking on is thatbusiness enterprises are increasingly coming

to recognize that company heritage is avalued, but highly perishable and generallyunder-exploited asset.

An assessment of whether devotingresources to an exploration of a companyspast is a beneficial venture can be aided byexamining how other enterprises have usedtheir corporate histories. It is the specificpurpose of this review to do just that. Byproviding examples taken directly fromaccessible corporate Web sites (usually com-pany history is found by following theAbout Us link), we endeavor to encouragereaders to validate our efforts as well asexplore additional links in these models.And while we cannot assert that our selectionprocess was scientific, we did strive toinclude companies from each of the domi-nant industry sectors.In exploring the uses ofhistory, it should be noted that companiesidentified for our research might value theirheritage for a multitude of reasons, while wefocus only on a single likely purpose for eachorganization. Further, companies may ormay not have originally intended that theirhistories become public for the reasons weinfer. However, intent may be less significantto our arguments than are the outcomes andmanifestations of their presented heritages.For organizational purposes, we have iden-tified three broad categories of uses of busi-ness history: (1) using the past to understandthe present, (2) using the past to create thepresent, and (3) using the past to improve thefuture.

Within each category, we provide speci-fic examples of enlightened, manipulative,and defensive motivations to use history,as well as identify companies that appearto capitalize on these articulated uses.Although attempting to be inclusive, weare fully aware from the outset that compil-ing a comprehensive listing of the intentionaland unintentional uses of history would beall but impossible. What we hope is that inoffering this compendium, we may leadreaders to recognize that glimpsing back intotheir past may prove to be a worthwhileexercise. In this vein, we undertake theaccomplishment of the following objectives:

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To demonstrate the potential impor-tance of corporate history to a variety ofstakeholders.

To provide examples of how compa-nies have strategically utilized history.

To establish the value of retaining,organizing, and presenting organizationalhistory.

USING THE PAST TOUNDERSTAND THE PRESENT

In academic circles, it is perhaps this categoryof usage that is subject to the most blindingcriticism, for descriptive histories solelydevoted to satisfying the understandingmotive are often labeled shallow and super-ficial, devoid of rigorous science, or compiledonly for purposes of organizational self-aggrandizement. Typically taking the formof corporate biographies, histories reviewedin this section simply target explanatory orsymbolic functions.

While it is a valid criticism that manycompanies exploit their past because of cor-porate vanity, generating propaganda and asuperficial mythology on glossy pages,efforts to humanize business may serve amore noble, or at least, functional purpose.As a article by George David Smith in Acrossthe Board concludes: The corporation hasnever enjoyed better public acceptance ofits role as the central institution of socialand economic development in an industria-lized society, and its history is a matter ofvital public interest . . .. This is important,

because the corporation, more than any otherinstitution in society, remains too generallyperceived as a distant, monolithic entity.While the narratives reviewed below maynot assist in the process of analytical deci-sion-making, the companies highlightedseem to have nevertheless identified benefi-cial uses for their histories. At times thesehistories may cross that nebulous borderbetween information-provision and atti-tude-shaping, but they are distinguishedfrom those in the following section by thedegree of intensity with which they intendto alter our thinking. These intend to do soto a lesser degree, and are more generallyrah-rah, goodwill-creating, public relationspieces.

To Make Sense of SomethingSeemingly Random orNonsensical

Rallying cries for reengineering efforts, chal-lenging the status quo, and fixing things evenif they arent broken permeate the corridorsof corporate offices. Since embracing thequality management movement in the1980s, workers have heeded the advice tonot accept all things at face value, and insteadto investigate why certain seemingly dys-functional practices are followed. But historyserves to remind us that there are oftenreasons why things are done the way theyare; there are reasons why the light switch istaped, or why we avoid vertical integration,or why an office is left unoccupied, or evenwhy a shoe company has a showbiz name.

Company: Kenneth Cole Productions, Inc.URL (Location of Business History Information): http://www.kennethcole.com/default.asp

Eighteen years ago, I wanted to open a shoe company with limited money . . .. At the time, a shoe companyhad two options. You could get a room at the Hilton and become 1 of about 1,100 shoe companies selling theirgoods. This didnt provide the identity or image I felt necessary for a new company, and it cost a lot moremoney than I had to spend. The other way was to do what the big companies do and get a fancy showroom inMidtown Manhattan not far from the Hilton. More identity, much more money, too. I had an idea. I called afriend in the trucking business and asked to borrow one of his trucks to park in Midtown Manhattan. He said


Sometimes environmental dynamicshave altered outdated preconditions, allow-ing us to modify, and hopefully improve, themanner in which we operate. Other times, wefind that it may be best to continue the waywe have. But without understanding whyand how precedents came into being, chan-ging can backfire.

To Reinforce a CompanysPatriot ism

In the wake of the September 11, 2001 tra-gedy, corporate America committed untoldfinancial resources to our nations recoveryefforts. For many business enterprises, thiswas just one more socially responsible act ina series of multi-faceted efforts aimed atdemonstrating patriotism. To intimate thatthey have long contributed to resolvingdomestic crises, many companies includein their histories a discussion of their war-time involvements. For example, in the

historic Greyhound (http://greyhound.-com) timeline, the 1942 entry reads, Grey-hound becomes a major carrier of troops headingto the East and West coasts. As more than 40%of its workforce is called to military service,Greyhound begins training women to drivebuses. General Motors Corp.s (http://www.gm.com) timeline similarly recordsthat during this era, it: converted 100% ofits production to the war effort. During WorldWar II, GM delivers more than $12,300,000,000worth of war material to lead the Allied wareffort, including airplane engines, airplanes andparts, trucks, tanks, marine diesels, guns, shellsand miscellaneous products. Walt DisneyStudios reminds browsers that, duringWorld War II, The Walt Disney Studio madepropaganda and training films for the military,as well as two goodwill pictures in SouthAmerica (Saludos Amigos? and The ThreeCaballeros?), at the request of the State Depart-ment. Harley-Davidson has a similarpatriotic entry.

sure, but good luck getting permission. I went to the Mayors office, Koch at the time, and asked how one getspermission to park a 40-foot trailer truck in Midtown Manhattan. He said one doesnt. The only people the citygives parking permits to are production companies shooting full length motion pictures and utility companieslike Con Ed or AT&T. So that day I went to the stationery store and changed our company letterhead fromKenneth Cole, Inc. to Kenneth Cole Productions, Inc. and the next day I applied for a permit to shoot a full lengthfilm entitled The Birth of a Shoe Company. With Kenneth Cole Productions painted on the side of the truck,we parked at 1370 6th Avenue, across from the New York Hilton, the day of shoe show. We opened forbusiness with a fully furnished 40-foot trailer, a director, models as actresses, and two of New Yorks finest,compliments of Mayor Koch, as our doormen. We sold 40 thousand pairs of shoes in two and a half days (theentire available production) and we were off and running. To this day the company is still named Kenneth ColeProductions, Inc. and serves as a reminder of the importance of resourcefulness and innovative problemsolving.

Company: Harley-DavidsonURL (Location of Business History Information): http://www.harley-davidson.com company/history

Promoting the companys patriotism, Harley-Davidson, founded in 1903, reviews how its cycles proved theirmilitary value in border skirmishes with Pancho Villa before being called to duty during WWI. As the site states,Almost half of all Harley-Davidson motorcycles produced are sold for use by the U.S. military in World War I.At Wars end, it is estimated that the Army used some 20,000 motorcycles in their efforts, most of which wereHarley-Davidsons. One day after the signing of the Armistice, Corporal Roy Holtz of Chippewa Falls,Wisconsin, is the first American to enter Germany. He is riding a Harley-Davidson.

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Cementing Core CompanyValues

Many companies deploy their histories tospell out the origin of long-held values. Indoing so, businesses can effectively usetheir heritage to create an organizationalsense-of-self, distinguishing between tran-sient and transcendent values. Imbuingmeaning into what otherwise might be con-ceived as hollow slogans, exhortations orpromises, by tying them to a foundersoriginal ideals or to a critical turning pointin the organizations past existence can rein-force important components of a companysculture.

Other organizations choose to communi-cate their values more indirectly. In an inter-esting twist on the traditional organizationaltimeline, the New York Stock Exchange(www.nyse.com/about/about.html) Websiteoffers visitors a chronology of market clos-ings from 1885 to the present. Included aremomentous events such as blizzards (in1888); presidential passings (McKinleysdeath in 1901); outbreaks of war (WWI in1914); logistical problems (heatless days in1918 and power failures in 1990); excessivelyheavy volume (in 1928); national mournings(one-minute Challenger disaster remem-brance in 1986); and the World Trade Center

attacks (in 2001). Using this approach subtlyconveys the exchanges commitment toremaining open, and to being a dependable,consistent, and predictable bellwether forbusiness.

Promote Good CommunityCitizenship

Most business enterprises dedicate some oftheir cyber-resources for promotion of civic,charitable, social, philanthropic, or environ-mental crusades. Indeed, as society hasnearly ordained benevolence, companiesare essentially obligated to support altruisticcauses. In the case of York International

Corporation (www.york.com/corp/olym/home.asp), manufacturers of cooling andrefrigeration systems, their sponsorship ofthe United States Olympic Luge Team seemsa natural link. In fact, for 40 years, York hasbeen involved in Olympic efforts. However,there are times when it is difficult to spec-ulate as to why some charities were selectedover the many others as recipients of corpo-rate giving. To explain why certain choiceswere made, some organizations look back totheir histories to justify decisions. Deployingits heritage, Maxwell House explains on itsweb site that companys decision to supportHabitat for Humanity.

Company: UPSURL (Location of Business History Information): http://www.ups.com/about/story.html

UPS corporate history is told in chronological narrative, with a focus on encouraging a sense of sharedunderstanding among employees as to how and why things operate the way they do today. The history states,In 1907, there was a great need in America for private messenger and delivery services. Few private homeshad telephones, so personal messages had to be carried by hand. Luggage and packages had to be deliveredprivately, too. The U.S. Postal Service would not begin the parcel post system for another six years. To helpmeet this need, an enterprising 19-year-old, James E. (Jim) Casey, borrowed US$100 from a friend andestablished the American Messenger Company in Seattle, Washington. With a handful of other teenagers,including his brother George Casey, Jim ran his service from a humble office located under the sidewalk.Despite stiff competition, the company did well, largely because of Jim Caseys strict policies: customercourtesy, reliability, round-the-clock service, and low rates. These principles, which guide UPS even today, aresummarized by Jims slogan: Best Service and Lowest Rates.


Honor and/or Glorify a Founderor Executive

Using their history site as a pulpit from whichto praise a founder or charismatic leader,

some corporations strive to relive momentsfrom that individuals glorious organizationalpast. These sites share a few common char-acteristics. First, the honoree is typicallydeceased, or at least, retired. Second, ratherthan presenting a balanced portrayal, the bio-graphies are predictably are hagiographic innature. And third, as opposed to presenting acomprehensive chronology spanning birth todeath, the choice is typically made to includeonly descriptions of a select few momentousevents involving heroic risk-taking, brilliantinsight, or resilient persistence in the face of

overwhelming obstacles. More fodder for4th-grade class reports than serious historio-graphy, such sites nevertheless attempt topersonify and inject humanism into other-wise distant figures.

To Provide an Exemplar of aCompany s Attention toDetail and Quality

To authenticate a meticulous and uncompro-mising devotion to fundamental ideals, orga-nizationswill sometimestakea lessonfromthepast as being symptomatic of contemporarybehavior. In doing so, such companies are ableto demonstrate that the evolution of currentpractices is well-orchestrated, based on expli-cit and intentional decisions made throughouthistory. At times, the target audience for such

Company: Maxwell House CoffeeURL (Location of Business History Information): http://www.kraftfoods.com/maxwellhouse/mstones.html

Maxwell House Coffee, named so because the companys first customer was the Maxwell House Hotel inNashville, Tennessee in 1892, is perhaps best known for its slogan, Good to the Last Drop, a phrase uttered byPresident Theodore Roosevelt in 1902 after having been served a cup of coffee while on a visit to TheHermitage. But that organizations decision to support Habitat for Humanity comes not from the slogan withwhich the company is so closely associated, but instead from a deeper self-identity: Maxwell House,Americas coffee, has helped bring families and communities together for more than 100 years. Thats why wehave teamed with Habitat for Humanity to make a difference in the lives of American families beginning with asafe and affordable place to call home.

Company: NikeURL (Location of Business History Information): http://www.info.nike.com/story/hist_bower.shtml

Even prior to his recent death, company founder Bill Bowerman was the focus of Nikes historical overview. Asits web site states, It was in the quest for better performance that Mr. Bowerman will be forever known. Hewanted a lighter running shoe for his athletes, one not bound by heavy leather and stiff soles. By hiscalculation, for every ounce that was removed from the shoes weight, 200 cumulative pounds would be liftedfrom the runner over the course of a one-mile race. By now the story is lore: With some latex, leather, glue andhis wifes waffle iron, Mr. Bowerman developed the first lightweight outsole that would revolutionize therunning shoe. His durable, stable and light Waffle sole set a new standard for shoe performance. Some of thebest athletes in the world were winning major races wearing shoes made in Bowermans garage, Phil Knightsaid. In fact, Knight was able, by 1972, to make the claim that four of the top seven finishers in the 1972Olympic Marathon were wearing Nike shoes.

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histories is clearly employees. However, inother cases, the intended consumer of thehistory is indeed the intended consumer ofthe organizationsproductsorservices.Suchisthe casewith theRitz-CarltonHotelCompany.

Simply Document and PreserveCorporate Memory

Instead of adorning history sites with accountsof bold entrepreneurial risks, colorful pastevents, or amusing and ingenious anecdotes,some companies elect a simple unembellishedaccounting of organizational milestones.These compendiums appear to be includedas an obligatory component of the corporateweb site, and seem to offer little value beyondarchiving where the company has been. Inshort, they are a repository of events thatmay be important to remember, but it isunclear why. Then, there are those organiza-tions that elect to preserve corporate memoryto merely explain why choices were made,without any particular pretense toward insti-tutionalizing them or discouraging change.

USING THE PAST TO CREATETHE PRESENT

Histories explored not for the purpose ofunderstanding, but rather for defending,

manipulating, cajoling, posturing, or persuad-ing are categorized in this section. In many ofthese cases, history is selectively remembered,recorded, or even invented to ensure that thepast isprologue.Becausehistory appropriatedfor such purposes is strategically intended toaccomplish a specific impression manage-ment goal, narratives tend to be narrower, lessinclusive, cautiously worded, and overlyinterpretive. The designated audience for con-sumption of such histories similarly seems tobe carefully considered. At times, internalstakeholders appear to be targeted, while inother cases, persuasion tactics are aimed atthose external to the organization. In oneextreme case, the now-defunct Enrons(www.enron.com) 15-year corporate mile-stone and history page was accessed throughthe link entitled Fast Facts for the Media.

Company: The Ritz-Carlton Hotel CompanyURL (Location of Business History Information): http://www.ritzcarlton.com/html_corp/about_us/

Regarding the hotels well-known Cobalt Blue Goblets, the companys web-site states, Every Dining Roomand Cafe at Ritz-Carlton hotels and resorts worldwide set their table with the signature cobalt blue glasses. Foras long as The Ritz-Carlton, Boston has been in existence, blue goblets have been part of the place setting.These goblets were designed to match the blue Czechoslovakian crystal chandeliers in The Dining Roomwhere they still hang today. Coincidentally, blue glass was considered a status symbol in 1920s Boston.Window glass imported from Europe underwent a chemical reaction when hitting the Boston air and turnedblue. Blue glass windows meant the homeowners could afford imported glass. The Ritz-Carlton, being quitefashionable, ordered glasses in this color.

Company: Campbell SoupURL (Location of Business History Information): http://www.campbellsoup.com/center/history/default.cfm

As the famous condensed soup-maker site states: Many familiar aspects of the Campbells brand are rootedin history. In 1898, a company executive named Herberton Williams attended the traditional football gamebetween rivals Cornell University and the University of Pennsylvania. For Williams, the game was nearly asexciting as Cornells brilliant new red and white uniforms. Unable to shake the striking image they made on thefootball field that day, he convinced the company to adopt the colors as their own by changing the labels oncans of Campbells Soups.


Psychologically Differentiate aProduct or Service inConsumer s Minds

With the retro-advertising resurrection ofCharmins Mr. Whipple (who, in 1978, wasnamed the third best-known American justbehind former President Richard Nixon andBilly Graham), and Alka Seltzers Speedy, itappears marketers have an obvious penchantfor the past. At times, historical ad campaigns,slogans, and mottos are employed to remindconsumers how much they used and liked aproduct (as with Ovaltine and Shake n Bake)before a dizzying array of competing alterna-tives were introduced. In other cases, suchas with Wells Fargo & Co., the company reliesupon its history to differentiate itself as astalwart fixture in an industry of homoge-neous competitors in financial services.

Publicize Lit t le KnownAccomplishments

While some companies enjoy widespread,household name recognition, others seem

to survive silently beyond the glow ofthe limelight. Some companies may beidentified with one product line or service,while their remaining offerings persistunacknowledged. For companies frustratedby this, history can be presented under theguise of trivia or fun, but is perhapsintended to serve the more serious purposeof consumer enlightenment. One exampleof this presentation style is Tupperware,which focuses not only on the developmentof a convenient and sturdy storage pro-duct, but also on the companys contribu-tions to marketing by pioneering the homeparty concept. Another is Crayola, whichinforms viewers of its history Web site thatit was that companys idea to add blackpigment to the rubber used to make tires,rendering them safer and more durable. Aparticularly effective application of this use

of history can be found at the Web site ofJust Born, a company with a name fewwould recognize, but which produces anovel, if not tasty, product for holidayseasons.

Company: Wells FargoURL (Location of Business History Information): http://www.wellsfargo.com/about/stories/ch2.jhtml

Conveying that their stagecoach logo is not a meaningless graphic created by a modern ad agency, but insteadsymbolizes a long history of dependable service, Wells Fargos history link takes viewers to this story about itsicon: Nothing is more evocative of the Old West than a stagecoach. In the heyday of overland staging, the1850s and 60s, Wells Fargo boasted a line of 1,500 horses and 150 Concord coaches. Stagecoaching was notthe sole province of Wells Fargo, nor was it Wells Fargos only business enterprise . . . (But) today, the WellsFargo stagecoach is one of the most visible corporate logos in America. What makes it unique is its tangibleconnection to the Old West. It reaches beyond its meaning as a corporate symbol and links us to a time whenthe heroic seemed commonplace.

Company: Just BornURL (Location of Business History Information): http://www.marshmallowpeeps.com/history_print.html

Prominently displaying a history linkage from its home page, Just Born is evidently quite proud of its heritage.With an entertaining and informative site, Just Born establishes as its historical objective the desire to make allmarshmallow lovers come to know just who manufactures or hatches the popular Peeps and Bunnies.Awarded the keys to San Francisco for inventing the Born Sucker Machine, which mechanically inserted sticksinto lollipops, the companys founder expanded to become the worlds largest producer of noveltymarshmallow treats, producing more than two million Peeps each day. Peeps are hailed as the top-sellingnonchocolate Easter candy. In 1953, it took 27 hours to create one Peep. Today it takes six minutes.

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Demonstrate an Organization sResil ience and Abili ty toSurvive Trauma

Historical testimony documenting the survi-val of past trauma can reinvigorate thosefrustrated by difficult environments orchange initiatives. Providing inspiration tobeleaguered employees through bolsteringself-efficacy in such situations can supplythe spark needed for continued effort inturbulent times. In some cases, historicalperseverance is presented in a light-heartedmanner. For example, the Taco Bell Web site(www.tacobell.com) reminisces about Mr.Glen Bells poor timing as he choose to opena hamburger stand in San Bernardino, Cali-fornia in 1948, the same place and time thelegendary McDonald brothers chose to openup their first unit. The narrative continues toshow Mr. Bells links to a variety of other fastfood startups that he let get away, includingDer Weinerschnitzel and Del Taco. Finally,Mr. Bell, certain of a prosperous future in fastfood, opened a taco stand in the middle of aMexican neighborhood. He chose his sitebased on the fact that if he did finally suc-ceed, it would be attributable to the loca-tionnot the food or specially fried tacoshellsthereby discouraging emulators!

In a variation on this theme, Mary KayInc. is adopting the approach to mitigate anypotential adverse effects the passing of itsfounder may have on operations (Mary KayAsh died on November 2, 2001). By focusingon Mark Kays resilient personality, the orga-nizations electronic history (www.mary-kaytribute.com/HerLife1.htm) includes thefollowing:

After a lengthy and successful careerin direct sales, Mary Kay Ash retiredin 1963for a month. During thosefour weeks, she decided to write abook to help women thrive in themale-dominated business world. Sit-ting at her kitchen table, she madetwo lists: one contained the goodthings she had seen in companiesfor which she had worked, the other

featured things she thought could beimproved. When she reviewed thelists, she realized that she had inad-vertently created a marketing plan fora successful dream company. Withher life savings of $5,000 and thehelp of her 20-year-old son RichardRogers, she launched Mary Kay Cos-metics on Friday, September 13, 1963.The Company she founded remainstoday one of the greatest success stor-ies in the annals of business.

Refocus Attention Away from aTrauma

Relatedly, it is important to note the compa-nies (of which there are very few, because ofthe deft skill required in accomplishing thisfeat) that are able to use history to turn a pasttrauma into a not-so-traumatic event. Thereare some sites that masterfully downplayhistorical tragedies by handling them withkid glovesnot necessarily ignoring them,but certainly putting a positive spin on them.Johnson & Johnsons handling of the Tylenolcrises of 1982 and 1986, when their productwas adulterated with cyanide, resulting inthe death of 7 customers, is a classic exam-ple. In the www.jnj.com site Company Historylink, no mention is made of the crises in overfive pages of narrative text. However, thereis an addendum history page, which requiresbrowsers to link through the Credo win-dow to text subtitled The History of theJohnson & Johnson Credo. In this some-what inconspicuous location, the Tylenolcrises is discussed in detail, with an empha-sis on showing how close adherence to thecompany credo inspired countless decisionspreserving the company reputation duringthis difficulty.

Philip Morris Companies Inc. chose torefocus negative publicity regarding its legalembattlement not by burying information,nor by shedding positive light on it, butrather by completely ignoring the case. Itshistory site focuses instead on its other, lesscontroversial, and more healthful, nonto-bacco product lines.


Obviously striving to dissociate its imagefrom ongoing criticism, the company took aneven bolder step in this direction in Novem-ber 2001, by formally segmenting its tobaccoproduct lines from the others in its portfolio.A press release posted on its Web site late in2001 reads:

NEW YORK, November 15, 2001Philip Morris Companies Inc., parentto tobacco, food and beer producingcompanies, today announced it willask shareholders to approve chan-ging its name to Altria Group, Inc . . ..The proposal to clarify the parentcompany identity comes two yearsafter a successful effort to improvethe image of the Philip Morris familyof companies. Research indicates thatthe companies are viewed as chan-ging for the better and becoming amore responsible corporate citizen,among other indicators of favorablepublic opinion.

Defend a Pattern of Continuingor Escalat ing Commitment

While success in business is often defined bya companys willingness to undertake risksand persist in uncertain courses of action,companies may nonetheless become targetsof criticism for their strategies, even if care-fully planned, evaluated, and implemented.To aid such critics in understanding an enter-prises decision to focus on a differentiatedproduct, a precise geographic locale, oreven a small target market, some companies

employ history to explain the evolution oftheir seemingly limited niche.

Kirkman has been manufacturingvitamins and dietary supplementsfor more than 52 years. Our involve-ment with the autistic communityfirst came in 1967 with an urgentrequest by Dr. Bernard Rimland,founder of the Autism ResearchInstitute, for help in manufacturingspecial vitamin formulations. Hebelieved that sufferers of autism,a disorder that at the time was notwell-known, could be helped by par-ticular vitamin combinations. Dr.Rimlands proposal that vitamintherapy could play a role in the treat-ment of such an invasive biologicaldisorder as autism was revolution-ary in many ways. We were moved,however, by Dr. Rimlands tenacityand enthusiasm for finding solutionsfor the autistic which prompted acollaboration that has lasted for morethan 30 years . . .. With the risingincidences of autism occurringworldwide (now reported to be 1in 150 children), it became evidentthat developing effective treatmentsfor the autistic required Kirkmansfull commitment. We are the onlymanufacturing company completelydevoted to developing therapeuticdietary supplements for the autistic.We have been fortunate enough towork with the worlds leadingresearchers, doctors and scientists

Company: Philip MorrisURL (Location of Business History Information): http://www.philipmorris.com/corporate/timeline

Embattled in unprecedented lawsuits over producing a product known to have disastrous health effects, PhilipMorris chose to omit its legal entanglement from its 1854 to 2001 historic time line of significant events.Instead, the time line focuses on such topics as celebratory occasions (100th anniversary of Jell-O in 1997)and even the healthiness of its product line (the introduction of Capri Sun, an all-natural fruit drink). There isno discussion of the companys involvement in the multi-billion dollar tobacco lawsuit settlements, despitewidespread publicity surrounding the topic.

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in the field of autism to develop ourproducts. Our mission is to offer themost up to date and effective nutri-tional and dietary treatments knownto aid the autistic. At Kirkman, ourcompany motto is, Are we doing allwe can? (www.kirkmanlabs.com/general/about/default.htm)

To Correct Misperceptions

Abiding by the adage that any press is goodpress, some companies include in their cor-porate histories anecdotes (and retorts) aboutnegative coverage received in the past. Oneprime example is retailer Neiman MarcusGroup Inc., who would obviously prefer tobe known for founder Herbert Marcus slo-gan, Its never a good sale for NeimanMarcus, unless its a good buy for the cus-tomer (www.neimanmarcus.com). Instead,

half of that companys history page isdevoted to dispelling the Neiman MarcusChocolate Chip Cookie urban legend, whichgoes something like this:

My daughter & I had just finished asalad at Neiman-Marcus Cafe in Dal-las & decided to have a small dessert.Because our family is such cookielovers, we decided to try the Nei-man-Marcus Cookie. It was so excel-lent that I asked if they would giveme the recipe and they said with asmall frown, Im afraid not. Well, Isaid, would you let me buy therecipe? With a cute smile, she said,Yes. I asked how much, and she

responded, Two fifty. I said withapproval, just add it to my tab. Thirtydays later, I received my VISA state-ment from Neiman-Marcus and itwas $285.00. I looked again and Iremembered I had only spent $9.95for two salads and about $20.00 for ascarf. As I glanced at the bottom ofthe statement, it said, CookieRecipe$250.00. Boy, was I upset!!

Allegedly, the woman was so irate shedevoted herself to ensuring that as manypeople as possible would receive the recipefrom her gratis. The Neiman site does notrecount the legend, as they say, if youhavent heard the story, we wont perpetuateit here. But the history page does include thefull recipefor free! In a similar, but moreserious incident, General Motors includes thefollowing entry in its 1993 timeline.

Alleviate Guilt

It has been suggested that collective amnesiamay be induced by collective guilt. Ininstances when companies have engaged inquestionable practices, ignoring them mayseem to be the most expedient method forerasing such events from public memory.Such is the case with NBC, who unlike Gen-eral Motors, does not mention the 1993 liveapology in the networks historic timeline.But in other cases, travesties are rememberedeven if the perpetrator would prefer they bepassively forgotten. When such salient atro-cities are integral scars on a companys past,they are typically recognized and simulta-neously addressed through some positive

Company: General MotorsURL (Location of Business History Information): http://www.gm.com/company/corp_info/history

First timeline entry for the Year of 1993: The NBC television network issues a live on-the-air apology andretraction for having aired video footage in its Dateline program purporting to show that fuel tanks in GMpickup trucks built from 19731987 were prone to catch fire in side impact collisions. The Dateline producershad actually used remote-controlled incendiary devices to try to ensure that a fire would erupt, seemingly dueto the collision. This was the first time any television network had ever issued such a live apology andretraction on the air.


intervention. Although Daimler-Benz AGdid not merge with Chrysler until 1998, backin 1983 that company recognized its regret-table involvement in forced labor duringWorld War II and still today uses its currenthistory site to elaborate on reparations.

Support a Merger

Acquisitions and mergers have long beenblamed for atrophy and even subordination

of institutional memory. In blending not onlythe operations of independent companies,but also the histories, the premerger tradi-tions of the partners often decay, deemedas less important than the future of the amal-gamated entity. In contrast, some merging

institutions highlight premerger traditions todemonstrate compatibility between the two.This is the approach chosen by JP MorganChase.

Company: Daimler-ChryslerURL (Location of Business History Information): http://www.daimlerchrysler.com

Postmerger, Daimler-Chrysler developed an interesting history page which shows the parallel evolution of thetwo combined companies. However, there is a significant divergence in how the past is handled by the newallies during the World War II period due to Daimler-Benzs involvement in forced labor. As the site states:Forced labor is a tragic part of the history of the Second World War, and Daimler-Chrysler also deeply regretswhat happened in the former Daimler-Benz AG during the time of the Third Reich. The former Daimler-Benz AGmoved as one of the first German Companies to confront its history in the years of the Third Reich and to tacklethe issue of forced labor. As early as 1983, Daimler-Benz entrusted the Society for Entrepreneurial History(GUG) with the task of performing academic research on the history of the company during the years ofNational Socialism. After intensive discussion, Daimler-Chrysler came to the conclusion that it is of utmostimportance to keep up a dialogue with people who suffered under programs of forced labor in the past and tohonor the memory of those victims . . .. The company has transferred the reappraisal of its history to externalacademic institutions and, furthermore, has opened up its company archives to academics all over theworld . . .. In deciding to commission the historians, the company was concerned both with revealing thehistorical truth and honoring the memory of those who suffered during this period. Just as important, however,was to make clear that although the present generation is not responsible for what happened back then, itmost certainly is for whatever lessons it draws from the bitter legacy of its history.

Company: JP Morgan Chase & Co.URL (Location of Business History Information): http://www.jpmorganchase.com/chase/gx.cgi

Merging Pathways: Chase and JP Morgan is the banner running across the companys history link.Presumably to support the merger of these two institutions in September of 2000, the companys timeline,dating back to 1799 as the Bank of Manhattan, focuses on the numerous combinations and acquisitionsengaged in by the enterprise. As the narrative states, When the merger of Chase and JP Morgan wasannounced . . . the new firm created a global workforce of nearly 100,000 and joined two institutions withremarkable histories reaching back over 200 years. This exhibit explores the origins of both institutions,highlighting joint efforts that led to significant achievements for both firms, the financial industry, and NewYork City. The milestone timeline reports that in the first half of the 20th century, Chase acquired over 20banks and thus the tactic served to establish it as a solid financial institution.

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To Alter History

In responding to criticism, companies con-strue their histories in many ways: to denypast actions, to defend them, to counterargueagainst them, to accept them . . . or, to ignorethem. Abiding by Winston Churchills tacticwhen he suggested, history will be kind tome for I intend to write it, some businessenterprises seemingly elect to documenttheir histories as they wish they were, ratherthan how they actually were. Although it isunderstandable that a company may elect toavoid dwelling on past failures, there areoccasions when absence of mention of anevent can be construed as an intentionaleffort to deceive, to convince consumers thatit never happened. While still in litigationover accusations about defective FirestoneWilderness AT tires, which would likelymake the company wary of assuming unne-cessary responsibility and liability exposure,the Bridgestone/Firestone Company never-theless excludes any mention of the circum-stances surrounding the injuries or deathsallegedly linked to their product.

To be fair, Bridgestone/Firestone is notby any means the only corporate entity toadopt such a concealment approach. NBC, asdiscussed earlier, also did so when failing toacknowledge its apology to GM. PepsiCo.Inc. adopted such an approach when itexcluded from its product line chronologyany mention of the flopped Crystal Pepsi,identified by Time magazine as one of the100 Worst Ideas of the Century. And,Pinkerton (http://www.pinkertons.com/companyinfo/history) did it when the com-pany completely omitted from its elaborateand colorful history any mention of thatagencys involvement in any of the violentand lengthy labor conflicts during the 1800s.

For nearly 150 years, Allan Pinkertonand his pioneering detective agencyhas been a central thread in the his-toric tapestry of the United States ofAmerica. From before the civil war,Pinkertons story is so intertwinedwith legend and truth, it is sometimesdifficult to know where the fiction

ends and the history begins. We atPinkerton are proud of our past, andwould like to share with you thisglimpse at our real history. So startsthe Pinkerton history page. Amusinganecdotes (how the company coinedthe phrase stick em up), insights(how the Pinkertons saved PresidentLincolns life), and revelations (howPinkerton was a forerunner of todaysSecret Service) are offered, but noneare controversial.

Legit imation of Past and FutureBehaviors

Citizen advocacy groups, funding agencies,inquisitive media outlets, and politicians haveall been blamed for having a short memorywhile simultaneously demanding unreason-able measures of accountability. Because ofthe elevated scrutiny and excess public pres-sure some organizations face, there is a realneed to ensure both past and future behaviorsare perceived as legitimate. Some use theirhistories to forcefully convey this message.Take, for example, Argonne National Labora-tory, one of the U.S. Department of Energyslargest research centers and the nations firstnational laboratory, chartered in 1946.

Argonne is a direct descendant of theUniversity of Chicagos Metallurgi-cal Laboratory, part of the WorldWar Two Manhattan Project to buildthe atomic bomb before the Nazisdid. It was at the Met Lab where,on December 2, 1942, Enrico Fermiand his band of about 50 colleaguescreated the worlds first controllednuclear chain reaction in a squashcourt at the University of Chicago.After the war, Argonne was giventhe mission of developing nuclearreactors for peaceful purposes.Over the years, Argonnes researchexpanded to include many otherareas of science, engineering andtechnology . . . Argonne is not andnever has been a weapons laboratory.


In addition to justifying the labs present-value to the international community, theArgonne site also contains a link to clarifyand dispel myths associated with its contro-versial past.

USING THE PAST TO IMPROVETHE FUTURE

What historians had over the makersof history was hindsight, the abilityto understand the context of eventsand activities as was not possiblewhile they were taking place. Tradi-tions purpose lay not in futile anti-quarianism, but in improving thepresent, and by extension, the future.(T.S. Eliot)

In the preceding two sections, this manu-script has elaborated on the uses of historythat may be alleged to be at the fringe of the

true value of that discipline. In the first sec-tion, history was used to help organizationscontemplate and understand their baseline.In the second section, history was used toalter our current understanding or to other-

wise influence our perceptions of companies.While both function in appropriate situa-tions, it is in this third section, elaboratingon the productivity-enhancing uses of his-tory, that companies can capture the essenceof what historians hope for when their dis-cipline is deployed. As George David Smithand Laurence E. Steadmans 1981 HarvardBusiness Review article suggests, history canguide behavior. As suggested by that articleover two decades ago, the logical mediatingmechanisms may be as follows:

History must become not only known,but also embedded into corporate identity tobe of optimal forensic value. Companies

Company: Argonne National LaboratoryURL (Location of Business History Information): http://www.anl.gov/OPA/history/cp1list.html

Fifty-one people were present in a converted squash-racquets court at the University of Chicagos abandonedStagg Field on December 2, 1942, when the first nuclear reactor went critical. To refute the myth that all thepeople at the first reactor died of cancer, Argonne National Laboratorys Office of Public Affairs is compiling alist of where they (The Chicago Pile 1 Pioneers) are now. The type of cancer typically associated with this typeof external radiation exposure is leukemia. To the best of our knowledge, no CP-1 pioneer has yet died ofleukemia. Here is the information collected so far (last updated August 6, 2001):

Harold M. Agnewretired, living in California.Samuel K. Allisondied of heart attack in 1965.Herbert L. Andersondied in 1988 of berylliosis.Thomas Brillliving in Colorado.Robert F. Christyon faculty at the California Institute of Technology.Stewart Foxliving in the Bahamas.

[Authors Note: The list continues but was truncated for preservation of space.]

history | ! heritage | ! tradition | ! culture | ! values | ! behaviorexperienced

pastthe companys

discoverablehistory

selective transmissionof heritage or thecompanys surfacememory

long-standinghabits

ways ofbelieving

mannerof acting

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highlighted in the following sections appearto have internalized this position.

Learn from Mistakes

Innate human nature seems to compel livingbeings to be more inclined to learn frommistakes of others than from those madeby themselves. And while vicarious obser-vation of others failures certainly containsthe potential for learning, it is a deep under-standing of ones own imperfections that canlend the greatest value. Many institutions,such as Kimberly-Clark Corp., recognize thisprinciple when it comes to past productfailures. In its quest to create the best forconsumers, Kimberly-Clark has consistentlybeen a leader in bringing innovative productsto the marketplace, the 125-year-old com-panys history page states. And, whenhe retired in 1992 as Kimberly-ClarksChairman of the Board, former CEO DarwinSmith paid special tribute to the productsthat have contributed to the companysgrowth and success. Here is part of whatMr. Smith said as he reflected on the changesKimberley-Clark made during his 20 yearsas CEO.

Change and progress are not new toKimberly-Clark. Many of the pro-ducts we manufactured in 1971 havebeen discontinued just as those man-ufactured when the company wasfounded had been discontinuedbefore the end of its fifth decade.Many of the products we manu-facture today did not exist in 1972.Staying competitive is a must.Change is the only way to do it.

Consistent with this message, the sitehistorically reviews products which havesince ceased production. They range fromthe 1918 introduction of cellucotton (a cottonsubstitute produced for bandages and sup-plied to the Army and Red Cross duringWWI, with the technology later adaptedand used in the development of Kotex fem-inine napkins) to the 1966 introduction of the

paper dress (which sold for $1.25 to demon-strate the flexibility of their product lineofferings). Many other companies similarlydirect history browsers to failed, outdated, orobsolete products, not solely for amusementpurposes, but also for practical ones. For, asGeorge Santyana proselytized in 1905, thosewho cannot remember the past are doomedto repeat it.

To Make Important Strategicand Operational Decisions

Unlike business leaders, it appears that ourelected officials and public sector adminis-trators have traditionally possessed a greaterappreciation of the pasts ability to inform thefuture. The seminal text by Richard E. Neus-tadt and Ernest R. May, entitled Thinking inTime (Free Press, 1988), suggests that govern-ment officials need to be sensitive of theinterrelationships between the past and thepresent in order to more effectively plan forthe future. Those authors also remind read-ers how diplomats undergo intensive histor-ical training on the regions to which they areassigned, as such insight has proven valuablewhen evaluating the potentialities of inter-national situations. In contrast, it has beensuggested that an ahistorical bent fosters aclimate of illogical susceptibility to faddismwhich precludes, or even excuses, criticalthinking.

One organization which avoids this pit-fall, and which provides a very interestingapplication of the use of history for guidingoperational decisions comes, is the MiltonHershey School, an educational institutionwith a $5 billion dollar endowment (makingit one of the richest three educational institu-tions in the United States). In accordancewith his wife Kittys wishes, Milton Hersheyused his significant fortune to createwhat is now the largest residential pre-Kthrough 12 school in the United States.The nearly 1,200 students of the MiltonHershey School are provided with free edu-cation, career training, housing, clothing,sustenance, health care and counseling. TheHershey Industrial School was established


through a deed of trust in 1909 to provide anurturing environment for poor, healthy,white, male orphans between the ages of 8through 18 years of age. Implicit in thisdeed was that funds could only be used toserve the population outlined by the Her-sheys. However, in the intermittent cen-tury, many social, political, and economictransformations have taken place, leavingthe schools contemporary administrationwith the challenge of meshing todayspractical and legal conditions with theconstraints of the outdated deed. Indeed,the board has effectively employed historyto accomplish that, as is shown in thisexample:

What the deed said ! Students must beorphaned.Explanation of original intent ! Orphanswas intended to mean children whosefather was deceased or pure biologicalorphans. In 1933, those with a father butnot a mother were also admitted becauseit was determined that fathers were notparticularly well-equipped to manage in asingle-parent home during that era. In1920, there were 6,400,000 orphans (16%of the child population) in the US, in 1988that number had declined to 2,213,000,reducing the demand and need for orphancare settings.Contemporary interpretation ! Expansionof definition of orphan to include thosewho are social or societal orphans,meaning that one or both parents areunable to adequately care for the child.Criticism ! Orphaned should be broa-dened to include any child who isdependent or at-risk.

Internal Public Relations andEnhancement of CorporateLoyalty

In every business, the time comes whencompetitive or technological or environmen-tal forces demand an alteration in the mannerin which work is performed. To aid staffmembers in understanding, accepting, andanticipating such demands, companies can

effectively use their history to demonstratethat in the absence of change, the companymay well become obsolete. This is theapproach subtly adopted by the manufac-turers of Elgin Street Sweepers (http://www.elginsweeper.com/).

Elgin sweepers have been cleaningroadways since 1914picking upand disposing harmful andunsightly debris. It all began at theturn of the century with inventorJohn Murphy in Elgin, Illinois.Streets were in terrible conditionand most were unpaved creatingdust, mud and disease-producingbacteria. Mr. Murphy recognizedthese serious health hazards causedby polluted streets and invented theworlds first machine that automati-cally picked up street debris. In 1914,Boise, Idaho, received the firstmotorized Elgin street sweeper. Thisremarkable piece of equipmenteliminated the need for a man witha shovel and helped solve the sanita-tion problems of the day. Murphysdistinctive three-wheel design man-euvered around horses, carriagesand automobiles. Debris was col-lected into a front hopper, makingit easy to dump. As society changed,the demands on sweepers also chan-ged. Litter, dust, leaves and grassstill remain. Add to that sand andsalt from the winters snow removaland metal and rubber from cars andtrucks. Airport runways must bekept immaculate; a small piece ofmetal on a runway can wreak havocwith a jet engine. As times changed,so did Elgin. The 1950s StreetKing brought to street sweeping anew level of performance with thefirst hydraulic brooms. Once again,Elgin proved its commitment todesigning and manufacturing inno-vative street sweepers that helpsolve our communities public worksneeds.

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Facil i tate NewcomerOrientat ion by EnhancingAssimilation and Expedit ingSocial ization

The pervasive benefits of inducing employ-ees emotional attachment to their employingcompany have long been touted in the man-agement literature. Surely, an understandingabout who the company is, what it stands for,and why it does what it does can enhanceaffective loyalties. But interestingly, recog-nizing the warning of organizational beha-viorists that assimilation is more difficult inenterprises which produce goods of ques-tionable societal value, firms that do so oftenseem to slant their histories toward the per-haps unimagined value and benefits of thecompanys offerings. For example, ArrowInternational, Inc. (http://www.arrowinter-national.com), a manufacturer of gamingproducts, emphasizes how its 2,000 employ-ees are dedicated to the production of bingo-related products targeted to charitable insti-tutions for fund-raising. Similarly, Colts(www.colt.com/colt/html/i1a_historyof-colt.html) Web site states:

Abe Lincoln may have freed all men,but Sam Colt made them equal. Thispost-Civil War slogan would havebeen music to Sam Colts ears hadhe lived long enough to hear it. Yet,even before his death at the age of 47,he knew that his invention of aweapon capable of firing withoutreloading was a tremendous successthroughout the world. Some 19th-century historians have gone so faras to say that Sam Colts inventionaltered the course of history. Butwhen all was said and done, noman could deny that Sam Colt hadachieved a level of both fame andfortune known to few other inven-tors. As a direct result of his inventionand the marketing and sales successthat followed, Sam Colt and his fire-arms played a prominent role in thehistory of a developing America. So

popular was the Colt revolver duringthe latter half of the 1800s that it wasperhaps the best-known firearm notonly in this country but also inCanada, Mexico, and many Europeancountries. To this day, the name Coltsuggests firearms to most Americans.

By reframing perceptions and equatingwork at the firearms manufacturer as beingmore closely related to freedom, Americaningenuity, and globalism, as opposed todeath, destruction, and conflict, Colt is betterpositioned to resolve any apprehension anddissonance newcomers may have regardingtheir employment.

Guide Innovation and ProductDevelopment

To avoid diversification into areas where thecompany lacks competencies, some organi-zations carefully examine the history of theirproduct portfolios to suggest future offer-ings. In doing so, firms may better graspwhich characteristics of their products havemost contributed to market acceptance. TheWm. Wrigley Jr. Co., for example, uses itshistory to reinforce the notion that the man-ufacture of chewing gum is its central skill.Instead of expanding into other candy/snackitems, Wrigley has elected to remain in chew-ing gum and explore the potential of theproduct as a delivery device for medicalpurposes. As that companys Web site states(http://www.wrigley.com/wrigley/about):

The Wrigley Healthcare Divisionwas established in 2000 to developand market products that use chew-ing gum to deliver active ingredientsthat provide health benefits. Its firstproduct, SURPASS, is a great-tasting,fast-acting way to treat heartburn.

Similarly, Crayolas timeline focuses onthe logical and progressive evolution ofrelated productsall centered on providingstudents different media with which towrite. Commencing with pencils, then chalk,


crayons, markers, and finally paint, Crayolasproduct development centers on: (1) improv-ing the attributes of current products (mar-kerswashable markers); (2) increasing thechoices of product variations (8 differentcrayon colors96 colors); and (3) providingmore sophisticated media as a child agesand matures (pencilspaint). Past offeringsmust always be salient and recalled for theseobjectives to be met.

Give Employees a Sense ofBelonging to Something Largerthan Themselves

While job enrichment is perhaps a moreeffective mechanism for enhancing intrinsicmotivation, some companies seem to believethat recasting employee functions in terms ofsomething more than their actual tasks issimilarly effective. In these organizations,teachers are encouraged to think of them-selves as eliminators of ignorance; greetingcard designers as agents of happiness;and railroad laborers as brave pioneers. Assuch, consider the Union Pacific Railroad(www.uprr.com/aboutup/history) site.

Designed to impart a sense of impor-tance about the American rail sys-tems and UPs critical involvementin the development of rail travel, theUP history page states, For many, arailroad was considered the key towestward expansion and the futureof the country. A transcontinentalroute would greatly reduce the timeit took to cross the continent, developthe nations vast interior, encouragesettlement, promote trade and fuelindustry. Congress determined thata railroad linking the Atlantic andPacific Oceans was also essential tonational defense.

Ray-Ban, manufacturer of sunglasses tothe stars, similarly slants its history. Focusingnot on the companys transactional past, buton the starring roles assumed by its productson the silver screen (from 1961 in Breakfast at

Tiffanys to 1998 in Theres Something AboutMary), Ray Ban positions itself as an Amer-ican icon. Comparably, Tag Heuer, anotherproducer of expensive luxury items, useshistory to provide an indelible link betweenits goods and the spirit of competitivenessand accomplishment. Hence, Tag Heuerbecomes more than a simple watchmaker;instead, it becomes a medium for document-ing and preserving the unparalleled athleticfeats of the worlds finest competitors.

To Avoid Straying Too Far fromCore Competencies

While success can appropriately breed self-confidence, it may do so to the extreme offostering grandiosity. When companies gen-eralize accomplishment in certain endeavorsto others unrelated to the firms core compe-tencies, history may be used to eliminateimminent failure. Southwest Airlines Co.(www.swa.com), positioned as a short-haul,low-fare, high frequency, point-to-point car-rier, is fervently aware of what its marketniche is, and how precisely serving that nichetranslates into operational effectiveness andfinancial gains.

Included in Southwest Airlines time-line is why the decision was made in1972 to transfer Houston operationfrom IAH to Houston Hobby. Whyshould our Customers have to drive45 minutes to take a 40-minute flight?asked Herb Kelleher, the legendaryCEO of that airline. To do so results indowntimethe reduction of which isa major objective of Southwest. Thisdrives many operational decisions,including expansion into new cities,which typically include not majorhubs but regional airports.

While Southwest has consistentlyadhered to its historical mission, other orga-nizations have strayed but then used theirheritage to point them again in the directionof appropriate targets. As an example ofthis, Club Med, recently opened a property

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(OYYO) which symbolized a return to thatcompanys original roots. Deviating from itsoriginal purpose, Club Med saw its futurenot in its pricey, lavish resorts, but instead inthe stripped-down vacation properties itsfounder envisioned when he chartered thecompany.

To Reinforce the Importance ofCompany Identi ty

Many companies have learned the hard waythe answer to the perennial question whatsin a name? They have found that answer is agreat deal. Not only is it directly costly tochange names (it is estimated that Accenture,formerly Anderson Consulting, will spend$2.3 million executing its required namechange), doing so may result in a loss ofconsumer confidence and loyalty. Indeed, acorporate name, as an integral component ofoverall image and reputation, can be a sig-nificant asset. Demonstrating that corporatenaming conventions, and relatedly, identity,are critical operational consideration, NameTrade (www.nametrade.com), a professionalcorporate naming service, suggests the fol-lowing:

A compelling name is the soul ofcommunicative identity. It embodiespersonality, culture and value. It isstrategic in sight and sound. It is

your best ally, positioning you abovethe noise. The name is undoubtedlyone of the most important factors inboth how quickly a company, pro-duct or service becomes successful,as well as the eventual degree ofsuccess it enjoys.

As naming is a decision undertaken withserious intent, some companies remindbrowsers of the significance of their originalname selection in the company chronology.One example of this is IKEA (http://www.ikea-usa.com/about_ikea/timeline/years_1940.asp), a name considered highly appro-priate for English-speakers as it is shortand easy to pronounce according to NameTrade. The IKEA web site states:

IKEA is founded by Ingvar Kam-prad. In 1943, when Ingvar was17, his father gave him a gift forsucceeding in his studies. The giftwas used to establish his own busi-ness. The name IKEA was formedfrom the founders initials (I.K.)plus the first letters of Elmtarydand Agunnaryd, the farm and vil-lage where he grew up. IKEA ori-ginally sold pens, wallets, pictureframes, table runners, watches, jew-ellery and nylon stockingswhat-ever Ingvar found a need for that

Company: Club MedURL (Location of Business History Information): http://www.clubmed.com

On a cold winter day in 1950, a man by the name of Geerard Blitz marched into the police office in Corsicaand filed a charter for a new association. Its official purpose: to develop an appreciation for the outdoor life andthe practice of physical education and sports. He called it Club Meediterraneee . . .. Armed with nothing morethan his passion, Blitz, along with his tent supplier and friend, Gilbert Trigano, would build the foundation forwhat Club Med is today . . .. Through word-of-mouth and modest advertising campaigns, the Clubs popularitywould grow. And its image would change. But its spirit, the essence of a Club Med vacation, would remain.Despite government intervention and violent tropical storms, the Clubs spirit would eventually take on a life ofits own; enthralling everyone that came in its path. That original spirit was recalled when Club Med envisioningthe new OYYO resort, a stripped down, inexpensive property on the Mediterranean coast of Tunisia whichtargets 1835 years olds who seek an antidote to civilizationthe basis of Club Meds original formula.


he could fill with a product at areduced price.

Sometimes, however, corporate namesare in need of changing. For example, Sun-beam was originally named Chicago FlexibleShaft Company to reflect their product line ofmechanical horse clippers and sheep shear-ing equipment. When irons were introducedto offset the seasonal nature of the clippingbusiness, the need to expand the identity ofthat company was recognized. Other compa-nies find after a step back in time, that such asignificant departure from the past identityof the company may backfire, as is the casewith Goodrich.

Policy Development andEvaluation

There are those who speculate that an aware-ness of the past will serve as a crutch, as anexcuse for mindlessly projecting the past intothe future. But, indeed, history demands theopposite. It requires caution in prediction byfocusing not only on the events that occurredbut the context in which they occurred,including environmental, cultural, tech-nological, regulatory, political, economic,

competitive market, and labor market char-acteristics. Further, history makes scenarioplanning richer and better informed by sug-gesting causes and effects, intentions andoutcomes. It has been argued that if historyteaches anything, it is that certain cycles orbehavioral patterns may exist, but the futurewill under no conditions impersonate thepast. However, it may mirror or reflect it.Given these circumstances, then, history mayprovide a rational basis upon which to guidepolicy development. Hallmark Cards Inc.subscribes to this belief, using its history toremind contemporary company executiveswhy the company should not be offered upfor public sale.

Hallmark (http://www.hallmark.-com), a company founded by aman named Joyce C. Hall in 1910,professes as one of its core corporatebeliefs that, our private ownershipmust be preserved. This is seen asnecessary to sustain Halls philoso-phy that financial performance is notan end in itself, but a means toaccomplish that companys broadermission of enriching peoples lives.Hall wrote, If a man goes into

Company: GoodrichURL (Location of Business History Information): http://www.goodrich.com/history.asp

Adopting the slogan, One of Americas oldest companies is now one of its newest, Goodrich maintains acomprehensive electronic heritage archive, including transcripts of CEO annual meeting remarks. In 2001,CEO David L Burner included these comments in his speech: We are in our 131st year since our creation in1870 by Benjamin Franklin Goodrich, and just as the world has changed, the Goodrich of old has changed. Thetechnologies of the 19th century were replaced by the dynamics of the 20th century. Now, as we embark intothe 21st century, we find that our heritage has continued to provide a firm foundation for success. We are anew companya new Goodrichwith the same values that were instilled into this great company over thosemany years. Values that are imbedded in the 23,000 people devoted to their future and to our success. [Todaywe launch] a new namea new lookand a new company. However, we have retained an importantconnection to our past and to our values. Goodrichwith or without Benjamin Franklins initialsstands forintegrity, quality and respect. For our customers, our shareholders, and ourselves. The answer for our searchfor a new identity was too obvious. In our desire to separate ourselves from the vintage businesses that are nolonger a part of our futurewe searched for an identity that would also separate us from our past. And, overtime, the answer became very clearthe heritage and values of our enterprise were far more important than anew and novel name.

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business only with the idea of mak-ing money, chances are he wont. Butif he puts service and quality first, themoney will take care of itself. Produ-cing a first-class product that is a realneed is a much stronger motivationfor success than getting rich. Indeed,during the 56 years which Mr. J.C.was at the helm of the company, not asingle greeting card would reach themarketplace until it possessed theO.K.J.C. imprimatur.

Gibson, manufacturer of precisionstringed musical instruments, similarly usesits sometimes rocky history to shape futuredecisions. As that companys Web site states:

Orville Gibson, as well as the crafts-men and engineers who followedhim, believed that handwork andmanufacturing could produce largenumbers of high-quality instru-ments. Two basic policies were estab-lished at Gibson which continue tothis day. Buy or invent machines for

dangerous or repetitive operationsrequiring great accuracy. Employ ahighly skilled worker when thehuman touch or the musicians earis needed. This unique combinationof man and machine is one of themain reasons Gibson has enduredso long and well: A Gibson is builtwith a careful combination of highprecision tools and craftspeople wholove their work. Theyre built bymusicians, for musicians.

And cascading from macro to more microlevel decisions, such as the choice of a newplant location, Gibson does not forsake butrather looks to its history to guide behavior.

In Closing

In 1875, Otto Von Bismarck reminded hisconstituents that history is simply a pieceof paper covered with print; the main thing isstill to make history, not to write it. But then,as now, these two acts are not mutually ex-clusive. Todays events become tomorrows

Company: Gibson GuitarURL (Location of Business History Information): http://www.gibson.com/folks/hstory/early/

While working in his tiny Kalamazoo, Michigan shop on a hot summer afternoon in 1894, Orville Gibson couldnot have known the affect his instruments would have on the music world. Starting with strong convictionsabout instrument design and quality, Orville created a whole new family of guitars and mandolins and laterinspired generations of craftsmen to produce some of the finest instruments the world has ever heard or seen.In attempting to identify a new location for operations recently, Gibson managers looked more closely atOrvilles relocation from New York to Kalamazoo about 100 years earlier. In conducting their research, theyconcluded that Orville, a dedicated and pure musician located strategically in Western Michigan in the midst ofthe furniture belt, an area known for having the best woodworking machines available as well as a pool ofexceptionally talented woodworkers. In 1990, as Gibson was preparing to select a new location for the tediousand precise manufacture of acoustic instruments, they recalled the importance of the geographic decision anddecided to locate in Bozeman, Montana where the dry climate made building conditions ideal. As their web sitestates, Even though they might get a little more snow up there, the environs of Bozeman, Montana are aguitar builders dream come true. Extreme heat and high humidity are natural enemies of wood. Bozeman hasneither. The fine spruces, maples, mahoganies and rosewoods are carefully cured and environmentallymaintained during the building process. There are other advantages to Montana in addition to its ideal climate.Gibsons acoustic guitars rely heavily on its builders sense of creativity and concentration. Living in Big SkyCountry appears to nurture both of these needs. It seems that looking out over a range of snow coveredmountains every morning makes for inspired guitar buildingwhich, in turn, makes for inspired guitars.


history, and indeed it may be difficult torealize the implications of present actionsuntil much further in the future. History hasbeen defined as the reconstruction of the pastfor the purpose of learning. Indeed, embark-ing on a voyage of historical discovery can befull of surprise, excitement, and enlighten-ment. The problem, however, is that bad orincomplete history, if used to drive organiza-tional decisions, is more dangerous than nohistory at all. History can perhaps be mostharmful if it serves to reinforce resistance tochange, institutionalize inappropriate stereo-types or biases, or consecrate a deviant ordysfunctional past. To discourage this unde-sirable fate, we trust that in the end readerswho are exposed to the various manifestationsof corporate legacies will insightfully distin-guish between effective and subversiveappropriations of history. We simultaneouslyendeavor to alter the thinking of many mod-ern managers who disassociate the past fromthe present from the future; and who concep-tualize the progression of time as discon-tinuous, and eras as mutually exclusive.

Douglas Adams, creator of the variousiterations of the Hitchhikers Guide to theGalaxy, once observed that human beings,who are almost unique in having the abilityto learn from the experiences of others, arealso remarkable for the apparent disinclina-tion to do so. A couple of centuries earlier,Hegel (17701831) observed the same dis-turbing phenomenon when he suggested:History is, indeed, little more than the reg-ister of the crimes, follies, and misfortunes ofmankind. But what experience and historyteach is thisthat peoples and governmentshave never learned anything from history, oracted on principles deduced from it. Wehope that by providing information on theuses of history by dozens of corporate enti-ties, we compel readers to not only reflect onthe experiences of others, but also recognizehow they may capitalize on their own per-sonal and organizational pasts.

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Company History and Business History inthe 1990s, by Geoffrey Jones of the Universityof Reading, as delivered at the Erhuervsarki-vets 50th Anniversary Conference in Athus,Denmark, succinctly reviews business con-temporary focus on establishing and demon-strating a legacy. James Cortados articleentitled The Case for Applied History inthe World of Business: A Call for Action toHistorians, published in The Historian in thesummer of 2000, is a unique piece of researchdirected toward academic historians whohave yet to realize the importance of studyingbusiness history as a serious, significant, andpotentially lucrative research domain.

George David Smiths 1986 Across theBoard article entitled, Why CompaniesCant Afford to Ignore the Past, summarizeswhy the preservation of business history is ofvital importance to corporations themselvesas well as to other stakeholders, including thegeneral public. The Present Value of Cor-porate History, by George David Smith andLaurence E. Steadman, as published in theNovember/December, 1981 issue of theHarvard Business Review is a seminal pieceof research and the original articulation ofhow companies might effectively employtheir heritage.

Paula Phillips Carson, Ph.D., SPHR, is a professor of management at theUniversity of Louisiana at Lafayette. She has served as program chairand division chair of the Management History Division of the Academyof Management, as well as track chair for management history in two ofthe Academys regional associations. Her historical works have beenpublished in a variety of outlets including Business Horizons, The Academyof Management Journal, TQM Magazine, Management Decision, and theJournal of Management History. She has twice been recognized with theJohn F. Mee award for her historical management research.

Kerry David Carson, Ph.D., SPHR, is a professor of management at theUniversity of Louisiana at Lafayette. He teaches organizational behaviorand human resource management, with research interests in manage-ment history, management fashions, and performance management. Hehas coauthored a textbook with two manuals as well as three professionalbooks. In addition he has published 50 journal articles in such outlets asthe Journal of Vocational Behavior, Quality Progress, Academy of ManagementExecutive, and Journal of Occupational and Organizational Psychology.


An Exploration of the Importance of History to Managers:The Meaningful, Manipulative, and Memorable Uses of MilestonesUSING THE PAST TO UNDERSTAND THE PRESENTTo Make Sense of Something Seemingly Random or NonsensicalTo Reinforce a Company's PatriotismCementing Core Company ValuesPromote Good Community CitizenshipHonor and/or Glorify a Founder or ExecutiveTo Provide an Exemplar of a Company's Attention to Detail and QualitySimply Document and Preserve Corporate Memory

USING THE PAST TO CREATE THE PRESENTPsychologically Differentiate a Product or Service in Consumer's MindsPublicize Little Known AccomplishmentsDemonstrate an Organization's Resilience and Ability to Survive TraumaRefocus Attention Away from a TraumaDefend a Pattern of Continuing or Escalating CommitmentTo Correct MisperceptionsAlleviate GuiltSupport a MergerTo Alter HistoryLegitimation of Past and Future Behaviors

USING THE PAST TO IMPROVE THE FUTURELearn from MistakesTo Make Important Strategic and Operational DecisionsInternal Public Relations and Enhancement of Corporate LoyaltyFacilitate Newcomer Orientation by Enhancing Assimilation and Expediting SocializationGuide Innovation and Product DevelopmentGive Employees a Sense of Belonging to Something Larger than ThemselvesTo Avoid Straying Too Far from Core CompetenciesTo Reinforce the Importance of Company IdentityPolicy Development and EvaluationIn Closing

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The Importance of History of Managers

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