Charles M. Schwab: Handling People

Charles M. Schwab: Handling People

No, I am not talking about Charles Schwab, the founder of the nation’s largest discount broker. I am talking about Charles M. Schwab (1862-1939), the first person in the U.S. to be paid a salary of $1M a year by Andrew Carnegie to run U.S. Steel.  Carnegie did not pay Schwab that salary because he was a brilliant operator. He paid him that amount because of his ability to effectively“handle people.” Schwab was a man known for having outstanding people skills. He was an example of the widely-held belief that success is determined 80% by people skills and 20% by technical skills. Accordingly, below is an excerpt from Dale Carnegie’s book “How to Win Friends and Influence People,” where Schwab’s ability to positively influence people was successfully illustrated.

“One day . . . Schwab was walking through one of his steel mills when he came across a group of men smoking directly under a sign that said No Smoking. Do you suppose that Charles Schwab pointed at the sign and said, “Can’t you read?” Absolutely not, not that master of human relations. Mr. Schwab chatted with these men in a friendly way and never said a word about the fact that they were smoking under a No Smoking sign. Finally he handled them some cigars and said with a twinkle in his eye, “I’d appreciate it, boys, if you would smoke these outside.” That is all he said. Those men knew that he knew that they had broken a rule, and they admired him because he had not called them out. He had been such a good sport with them that they in turn wanted to be good sports with him.”

Leadership is influence. The greater your influence, the greater your effectiveness. Make the decision today to invest more of your time in personal leadership development. When investing financially, the growth of compounding money is always much more significant than non-compounding money. The same is true with leadership development.

All contents copyright © 2010, Josh Lowry. All rights reserved.


3 Responses to Charles M. Schwab: Handling People

  1. Patty Ott says:

    Good information. Lucky me, I ran across your site by chance. I have saved it for later!


  2. Ellie Farlow says:

    I never knew who Charles M. Schwab was until I read your post. I am planning to read more about him. Thanks for posting.


  3. Angela Flannery says:

    I really liked this post! 🙂


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