Charles Schwab, who supervised all of Andrew Carnegie’s steel mills, had a mill manager whose men were not producing their quota at work.
“I’ve coaxed them; I’ve pushed them; I’ve threatened them with being fired, “the manager told Schwab, “but nothing works. They just don’t produce.”
It was the end of the day, just as the day shift was leaving and the night shift was coming on. Schwab took a piece of chalk and then, turning to the nearest man he asked, “How many production runs did your shift make today?”
“Six.”
Without another word Schwab chalked a big figure 6 on the floor and walked away. When the night shift came in, they saw the 6 and asked what it meant. “The big boss was in here today,” the day-shift men said, “and he chalked on the floor the number of production runs we made.”
The next morning Schwab walked through the mill again. The night shift had rubbed out 6, and replaced it with a big 7. When the day shift reported for work the next morning they saw the big 7 chalked on the floor. So the night shift thought they were better than the day shift, did they? Well, they would show them a thing or two. The men pitched in with enthusiasm and when they quit that night, they left behind them an enormous, swaggering 10. Things were stepping up.
Shortly, this mill, which had been lagging way behind in production, was turning out more than any other steel mill in the industry. And what was the reason? Here is Schwab’s reasoning: “The way to get things done is to stimulate competition. I do not mean is a sordid, money-getting way, but in the desire to excel.”
“I consider my ability to arouse enthusiasm among my people,” said Schwab, “the greatest asset I possess, and the way to develop the best that is in a person is by appreciation and encouragement. There is nothing else that so kills the ambition in a person as criticisms from superiors. I never criticize anyone. I believe in giving a person incentive to work. So I am anxious to praise but loathe to find fault. If I like anything, I am heart in my approbation and lavish in my praise.”
[Note: Source: Dale Carnegie, How to Win Friends and Influence People, p.46-47]
Alan Loy McGinnis, Bringing Out The Best in People, p.126-127 also Dale Carnegie, How to Win Friends and Influence People, p.192-193

