Lesson #4: Leadership Means More than Just Being Loud

Around the Kodak offices, Eastman was known for one thing. It was not his innovative mind or his drive, nor was it his passion for photography. What Eastman’s staff new about him was that he swore – a lot. Whenever something went wrong, anyone within earshot could hear Eastman’s infamous blue streak.

Eastman was not particularly well liked by his employees. He was not a fan of layers of hierarchy, instead preferring people to answer directly to him. He placed his office near the women’s bathroom in order to monitor the frequency with which his female employees took bathroom breaks. He had specific instructions for the way in which janitors were to use their brooms. So, too, did he want his pencils to be sharpened in a specific way by his office clerks. Eastman also did not give out praise very easily.

But while he might not have been a staff favourite, what Eastman can be credited for is running a tight ship. He focused on efficiency and reducing waste at all costs, two things which helped push his company forward. Eastman made sure his factories had the exact amount of emulsion they needed at the exact time they needed them so as not to slow down the process. He was also energy-efficient in making sure lights that were not in use were always turned off.

And, Eastman’s leadership around the Kodak Park should not be mistaken for a lack of regard for his staff. Indeed, Eastman was ahead of his time in extending significant benefits to his workers. He always believed that employees deserved much more from their jobs than just their wages.

To that end, Eastman began implementing a “Wage Dividend” for all of his staff. An innovation for its time, this made sure that each employee would receive a bonus on top of their wages in proportion to the yearly dividend on the company stock. Outsiders questioned Eastman’s policy since it made up a large part of the distribution of the company’s annual profits. But, Eastman was convinced that it was doing more harm than good by way of motivating his workers and building a sense of loyalty. Indeed, he regarded workers’ goodwill as being a far more important factor in a company’s success than any of its innovations or patents.

In 1899, Eastman gave each and every one of his workers a cash bonus with money straight out of his own pocket. In 1919, he also gave nearly one-third of his own company stock, valued at $10 million, to his employees. On top of cash incentives, Eastman also created beefy retirement packages, life insurance, and disability plans. He thought that by ensuring his workers a secure future, they would do the same for his company.

Eastman might have been a tough boss who liked to curse, but he knew what it was to be a leader. It was not just about being strict with keeping people in line. It was also about fostering a sense of democracy and pride within his company, two things that would keep his staff happy and hard at work.



Lesson #4: Leadership Means More than Just Being Loud

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