Andrew Carnegie

I’ve always enjoyed reading about great leaders (especially business leaders). I love reading about their triumphs, failures, strengths, weaknesses, wisdom, folly, and their overall contradictions. That’s why I loved reading Carnegie by Peter Krass. It’s an excellent biography of Andrew Carnegie, the man who created his fortune in the steel industry and gave it all away at the end of his life.

Admittedly, though he had good business practices he had questionable ones too:

1. He made his first fortune through insider trading
2. He saw his workers as costs to be managed
3. He was known to “influence” a politician or two

And etc…

“So what exactly could he teach Christian entrepreneurs?!”

Well remember: he also “had good business practices.”  His garden had both wheat and tare. We can learn from the wheat.

• He always practiced his ABC’s–ABC is an old sales acronym: Always Be Closing. Carnegie was a consummate salesman. He was always out looking for business, he never waited for it to come it him. He knew this: if something was to happen it was up to him to make it happen! Know this: “A dream comes with much business.” (Ecclesiastes 5:3 English Standard Version) Nothing happens unless you make it happen; and nothing happens without a sale. If your dream is to become reality it’s going to take a lot of business to make it reality.

• He surrounded himself with the best– Carnegie had a knack for attracting and retaining the most talented and competent people. Many historians believe Carnegie was a management guru–but many of the management innovations he’s famous for were thought of by his lieutenants. He always tried to find the best partners, best managers, best workers…he always looked for the best! Saul and David had that same characteristic: to find and recruit the best people. Saul’s problem was that while he wanted the best he was intimidated by the best. David, on the other hand, was comfortable with having Mighty Men around him. To become the best, you have to find the best, and get the best out of them.

• He found his greatest success through focus not diversity–Early on he had holdings in oil, sleeping cars, railroad, iron bridges, bonds, and telegraphy. But he was wearing himself thin (and he knew it) so he focused all his efforts on one industry: steel. Diversity has its merits– “Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” (Ecclesiates 11:2 Today’s New International Version)–but true success will be found in focusing your efforts on one thing that has the greatest rate of return. Warren Buffet once said, “Diversity is protection against ignorance. It makes very little sense for those who know what they’re doing.” In other words, “If you don’t know what you’re doing: diversify; if you do: don’t.”

• He was rabid about costs–He instituted revolutionary accounting methods that detailed the cost of every item–even small nails. He accounted for every single expense and then found ways to reduce them. One exasperated partner said, “Carnegie never wanted to know about profits. He always wanted to know the costs!” This cost cutting practice gave him immense power to set prices and gain new market share. He knew that if he took care of the costs the profits would take care of themselves.

• He was willing to sacrifice short term profit for long term gain– He constantly reinvested: in new machinery, the latest technology, in improved practices, and etc. In fact, sometimes he would find it “exceedingly difficult” to convince his partners to fore go the short term gain. They wanted their money now, he wanted more money later. Unlike a wise man that reinvests“…a foolish man devours all he has.” (Proverbs 21:20 New International Version) When it came to money Carnegie was no fool!

• He saw the end first–Carnegie started out with this end in mind: be the best steel company in the world. All resources, capital, labor, intellect, time, and etc were geared toward that goal (and the smaller goals leading up to it). Vision is a necessity for business leaders. The Bible says, “A wise man thinks ahead; a fool doesn’t and even brags about it.”(Proverbs 13:16 The Living Bible)  In other words, a fool brags about not having goals!! Carnegie saw greater and therefore pushed his company to greater heights.

While Andrew Carnegie  was not a “saint” in his initial business practices there still is a lot we can learn from him. List a few business moguls that you’ve learned from in the past. Who are your favorites? What do you think about Andrew Carnegie? I’d love to know your thoughts in the comments below.

About the Author

Mike Holmes

Mike Holmes is the author of I Shall Raise Thee Up: Ancient Principles for Lasting Greatness. He’s also a blogger that writes on business and leadership development from a Biblical perspective. When he’s not writing blogs or speaking he can be found writing bios in the third person. Check out his website/blog here.

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