A business lesson from a master

By John Corban

Charles M Schwab was a master at managing and inspiring employees. Let me share his simple but powerful management approach to see how you can apply it today.

By John Corban

Schwab, one of the world’s most successful business leaders during the last century, ran a U.S. steel corporation with thousands of employees. Its owner, Andrew Carnegie, paid him an enormous amount of money each year to run US Steel. His unique approach to understanding, connecting with, and inspiring his employees was highly admired throughout the world. Here is a summary of Schwab’s approach.

He avoided criticism and used encouragement

Schwab believed the way to get the best out of people was through genuine encouragement. He didn’t focus on what people were doing wrong. Instead, he looked for something, anything, they were doing right and praised them.

‘I never criticise anyone. I believe in giving a man incentive to work. I am keen to praise but loath to find fault. I can get more out of a man by appealing to his desire to do better than by giving him orders.’

That attitude made people want to give their best. They weren’t working out of fear; they were working because they felt valued and appreciated.

He walked the floor and listened
Unlike distant, aloof executives, Schwab was present. He frequently walked through the mills and plants, chatting with workers, not about quotas, but about them. He remembered names, asked about families, and listened without judgement. This made workers feel like they mattered as people, not just as tools for production.

Above all, Schwab believed in human potential. He said, ‘The man who does not know the heart of his workers cannot be their boss.’

Ask instead of tell
Schwab was interested in building self-esteem and confidence in his workers. He would ask instead of barking orders all day. He said I ask questions that guide employees to think for themselves, such as:

• What do you think needs to happen next on this job?
• How would you approach this if I weren’t here?

This subtle shift turns passive workers into active problem-solvers. You’re not just delegating tasks, you’re developing leaders.

He set clear goals that people could own
Rather than barking orders, Schwab believed in giving employees something to aim for and then stepping back. When employees knew what completed jobs looked like, they could motivate themselves.

He’d say: ‘A man will go along with you if you just show him that you consider him a partner and not a cog in a wheel.Ownership creates energy. People stop feeling idle and start feeling like contributors.’

He treated each worker as important and part of something bigger
Schwab wasn’t into command and control. He thought like an employee who wanted autonomy, respect, and purpose. He explained why things mattered and asked for input, making people feel like they were part of something bigger. His leadership developed trust, loyalty, initiative and teamwork.

He would build friendly competition to enhance teamwork and productivity
Schwab would break down big goals into smaller ones, and celebrate and acknowledge clear wins. He used competition to build identity, not tear people down. He enjoyed creating friendly competition between teams like the night shift and the day shift, but would do it in clever ways. The story: He visited a steel mill and asked the day shift how many heats (batches of steel) they produced. They said six. Schwab then chalked a big “6” on the floor before he left.

When the night crew saw it, they asked what it meant. Once they heard, they felt challenged and produced seven heats. The next day, the day shift upped it again.

Managing a team isn’t just about getting jobs done and making a profit. It’s about creating a culture where people feel proud to contribute, feel valued, and are inspired to stay. The Charles Schwab approach reminds us that people thrive on encouragement, respect, value, and understanding.

John Corban
Business Coach for Landscapers, Horticulturists and Nursery owners
Mob: 0433 27 1980
www.landscaperscoach.com.au