Lessons from A Titan
I have just read April 9th The New Yorker’s excellent article ‘ Gusher: The power of Exxon Mobil‘.
Ever since reading ‘Titan – The Life of John D. Rockeffeller‘ I have been intrigued how far a well run organization, tracking results, and following and implementing a plan can go.
Governments Come and Governments Go
Exxon Mobil are a creation of the State. Standard Oil was broken up by the US State. Being broken up did little to stop the company. At the the time, Standard Oil It was the largest and richest oil firm in the US. Today, it is the largest and most profitable privately owned oil firm in the world. In US Politics, it has been on the winning side of major bills, often supported by the White House, like Climate Change.
Where is Your Operating Manual?
How did ExxonMobil manage this?
It seems to come down to a very simple idea that in practice is very hard to deliver – they are very (very) well organized. They deliver on what they said they will do.
With the Help of A Little Black Binder
How many firms or NGOs can emulate this level of preparedness?
The author, Steve Coll, writes about Kenneth P.Cohen, ExxonMobil’s vice president for public and government affairs:
“His operating manual for political strategy is a dark binder that is kept on a shelf in his second-floor office at the Irving headquarters. The first page carries the title “Public Policy Issues”. A list of about two dozen subjects follows, from climate change to government subsidies for gasoline alternatives such as ethanol. For each policy area, the notebook contains a summary of ExxonMobil’s lobbying position; which the corporation’s public-affairs teams support worldwide, often using common man gauge and PowerPoint slides. The notebook also provides a guide for judging American politicians”.
The Farley file and the issue binder are staples for serious political professionals. Every Presidential hopeful has one. Tony Blair imposed it on his UK Labour Party.
It Works in Business, So Why Not Try it in Politics?
In Titan, you learn of J.D. Rockefeller as a young man thought up a plan to take a ramshackle and chaotic US oil industry and dominate it in 10 years. He had a plan and he stuck to it. It worked. He delivered early – it took 5 years. He tracked the actions and measured the results.
It’s a useful lesson. It gets Exxon Mobil what they want. Others could copy them. Few do. Why? It is a lot of work to be as prepared and thorough as them.But, hardest of all is developing a plan and sticking to it. A lesson that works well in business and politics.