Rockefeller – An Effective Leader And Successful Businessman

Leadership, the ability to influence and support a group of people to reach a common goal, can be displayed in a multitude of different ways. Leaders are developed through their involvement in politics, business, public service, government, and more. All of us have our own definition of leadership, its style, and its goals. However, there are certain characteristics and attributes that can be analyzed and learned from some of our great leaders of the past who have demonstrated their worth and abilities. One man who has contributed greatly to the American economy and the business world as a whole, is John D. Rockefeller. His dominance in the oil industry can be traced back to his fundamental leadership skills of perseverance, benevolence, and charisma, which is why he was an effective leader.

John D. (Davison) Rockefeller was an American businessman and philanthropist, most famously known for his company, Standard Oil. From 1870 to 1911, it dominated the oil industry of the United States and controlled everything from production to marketing. In addition to the oil production, Rockefeller was highly involved in philanthropy, donating over $500 million dollars during his lifetime. His benefactions led to the creation of the Rockefeller Foundation, Rockefeller University, and the General Education Board. Moreover, his contributions allowed the now well respected institution, University of Chicago, to become possible and thrive. Despite all this, Rockefeller’s childhood was not adorned with endless opportunities and wealth. He was the son of a traveling salesman, and his family never had vast amounts of money, so he found ways to be industrious himself. He was determined to make a name for himself, despite having a “limited education because there were few opportunities and incentives”. Due to his humble upbringing, there is no doubt that Rockefeller was accustomed to hard work, and he turned every opportunity into another step towards becoming the richest man in the world.

Rockefeller was an extremely successful businessman, as was demonstrated by achieving a monopoly in the oil industry, and his leadership skills of perseverance and self-awareness contributed greatly to that affluence. Before he founded Standard Oil, he realized that the money in the industry was not in the drilling for oil, but the refining of it. However, refining was a challenge that many people believed was insurmountable because of the reactive waste created by the refining process. Despite this, Rockefeller “found many uses for the by-products and was able to sell them for a profit”. His perseverance allowed him to lead his company in a successful direction where he was not only able to solve the waste issue, but profited from it. He further expanded his then small empire by using that money to build higher end facilities, making his whole operation bigger and better. Those who worked for him sensed his perseverance, and it inspired them to keep their faith in the company and in Rockefeller himself. A strong, confident leader influences employees to become strong and confident themselves. I believe that effective leaders should be able to motivate and instill confidence in their employees, especially during difficult times, as Rockefeller demonstrated. Another fundamental aspect of his leadership that led to his success was his self-awareness. In the first reading for this class, we read about Musselwhite’s opinion on self-awareness and how it can lead to being an effective leader. He described it as being “conscious of what you’re good at while acknowledging what you still have to know”. Rockefeller did not enter the oil industry as an expert in all things, in fact he struggled immensely, but he had “great confidence in himself” was “not afraid of making mistakes, and [was] willing to learn from them.” As a leader, it is paramount to recognize when what you are doing is wrong, and it is even more important to be willing to learn from your mistakes so that you do not repeat them. In this case, instead of being afraid to take risks, Rockefeller embraced new opportunities. Although he made many missteps, he not only acknowledged his failures, but learned from them. This allowed him to find the best solutions for problems that arose, instead of the most convenient ones.

Rockefeller was not only a determined man, but a very benevolent leader. He believed in treating his employees fairly, making sure that they were comfortable and not overworked so that they could perform at their best. He “routinely praised his employees” and often “join[ed] them in their work” in order to “urge them on”. Praising the employees provides them encouragement and recognition for their hard work so that they do not feel as though they are working only for a paycheck. They are given a sense of value, motivating them to work harder which in turn leads to strong and healthy relationships that, in this case, helped contribute to the success of Standard Oil. In my opinion, Rockefeller was extremely clever in working alongside his employees because that made him seem like one of them in their eyes. Many people that work for large corporations never meet the owner, but Rockefeller’s practice overcame that barrier. This was one of the many examples of his use of soft power to be an effective leader. Instead of coercion and ultimatums, he earned respect through words and actions, therefore positively motivating his employees. Another way that he connected one on one with the workers of Standard Oil was through feedback. As an alternative to bringing problems or concerns to a lower level representative, employees were “invited to send complaints or suggestions directly to him, and he always took an interest in their affairs”. Dealing with these often difficult situations individually benefits both parties involved. For Rockefeller, he is able to receive effective feedback that can either be positive or negative. This shows that he is willing to learn and listen, another important trait of a successful leader. During class, we almost all collectively decided that one of the most important traits of being a good leader is being a good listener. It helps leaders connect with their constituents or employees and better understand the atmosphere so that they can improve upon concerns that require attention. Moreover, feedback is also extremely helpful in a large company because it fosters employee morale, making them feel as valued members of the company because their opinions are being recognized and responded to.

While benevolent, Rockefeller was also the epitome of a charismatic self-made man. While many of his critics labeled him as ruthless, selfish, and greedy, those who worked alongside and for him held other opinions. During class earlier in the semester, we were asked to define charisma. I defined it as the ability to influence and inspire people while also attracting them through the strength of a leader’s personality. Charisma is an important trait of many influential leaders, as we learned in class because it inspires action in others and helps them believe in a common cause or goal. Many of Rockefeller’s employees loved his personality, and one refinery worker reminisced that “he always had a nod and a kind word for everybody. He never forgot anyone… I’ve never seen Mr. Rockefeller when he was not friendly and kind and unruffled”. Being polite and courteous is a major characteristic of being a charismatic leader, and Rockefeller did not fail in that. This was also another way in which he incorporated soft power leadership style. He led by example, earning the respect of his employees which in turn made them more willing to work hard and do what he wanted. Additionally, he went one step further by acknowledging everybody and never forgetting anyone, which helped him build a positive rapport with others. Many people do not want to follow someone who is rude or unpleasant, but are more likely to help and do things if they are treated kindly and respectfully. The employee mentions how Rockefeller was “unruffled,” meaning that he was not easily phased or frustrated. A large part of being charismatic is to exude confidence to others around you, implying that you are optimistic. This not only encourages others to believe in their leader, but it also helps when problems arise because they have more trust and positivity towards achieving a good outcome.

Although Rockefeller was revered and respected by many in the business world, he was labeled a ‘Robber Baron,’ and one of the most disliked ones at that. Leaders, specifically business owners, must be able to set a good example as the face of their company. Rockefeller faltered in this aspect, as journalist and muckraker Ida Tarbell revealed. She exposed Rockefeller and his Standard Oil Company to be involved in what she believed to be collusive schemes. She accused him of taking part in secret deals with major railroad companies that eventually put her father’s own oil company out of business, arguing that “‘Mr. Rockefeller had employed force and fraud to secure his ends’” (Weinberg, 224). She even criticized him despite his philanthropic efforts that, to many, made him seem like a good man. She asserted that the money was tainted and that “Rockefeller could have contributed more to society by playing fair in business than by doling out ill gained money to needy institutions and individuals'. These accusations of cheating and scheming - which he eventually owned up to - no doubt tarnished his reputation and that of Standard Oil. He set a negative example for his employees because his actions showed them that committing wrongdoings was okay. They could now believe that if Rockefeller did it and is as successful and wealthy as he is, then maybe they could do it too. Consequently, this hurt Standard Oil because now there were employees that were willing to commit wrongs. Moreover, the company lost valuable employees, shareholders, and consumers whose values did not condone cheating and malpractice. John D. Rockefeller was not able to overcome Tarbell’s muckraking revelations or the public’s negative opinion. The Supreme Court ruled that Standard Oil violated the Sherman Antitrust Act and his monopoly was broken into many smaller companies, some of which include today’s ExxonMobil and Chevron. Even though his monopoly was lost, Rockefeller was not thought of as a criminal by everybody and many believed that “the image of Standard Oil as a kind of criminal enterprise, due mostly to Tarbell, was never accurate'.

From my perspective, supported by the evidence and analysis of Rockefeller’s life, I believe that he was an effective leader which allowed him to become a highly successful businessman. We can learn an abundance of lessons about leadership from his life as a business magnate. From his humble beginnings to his creation of Standard Oil, we can learn that one must be decisive and persistent in their visions and goals. To build on that, an effective leader should be able to motivate and inspire their employees through tough times, and Rockefeller did that through his reassuring words and actions. Lastly, despite criticism from others, an effective leader must remain true to himself. Rockefeller faced many judgements from others, as they called him ruthless and robotic. However, he never changed the way that he acted, and instead earned respect from many by being himself. On top of all of this, in my opinion, great leaders should be able to have their work continue and impact others even after they are gone. Rockefeller succeeded in this, and his leadership style was more transformational than incremental. He revolutionized the oil industry, specifically through the refining process. He found ways to make a profit from an industry that was deemed unprofitable and today, oil is one of the most coveted nonrenewable resources with a GDP of $87.5 trillion, making up 2% to 3% of the global economy. Rockefeller was confident enough in himself and in his abilities to attempt this difficult task, and was determined enough to carry out his plan despite facing countless obstacles throughout his life. Finally, his imprint on the world can still be felt today. He was a self-made man who not only created a name for himself, but began a dynasty of successful Rockefellers. There are many notable family members, including Nelson Rockefeller, who was Governor of New York and Vice President of the United States. John D. Rockefeller’s grandson, David Rockefeller, was the chief executive of the Chase Manhattan Corporation, otherwise known as Chase Bank. John D.’s success has provided endless opportunities for his family and has allowed the Rockefeller name to continue to be both powerful and influential today.

Without a doubt, John D. Rockefeller was highly successful and an effective leader despite the setbacks he was confronted with. He used a soft power leadership style through his confidence, determination, benevolence, and charisma in order to create Standard Oil and productively lead his employees. In addition, he revolutionized the oil industry through his transformational goals and has left an influential imprint on the world. We can learn many things about being an effective leader from this man, and many aspiring business leaders today often study Rockefeller and his practices in order to become successful themselves.