How Conrad Hilton Built a Hotel Empire

I recently read about Conrad Hilton and became curious about the origin of the “5 Points” in the name of Hilton Five Points hotels. I learned this concept reflected Hilton’s method for evaluating property value, helping him make smart purchasing decisions. As I explored his story, I discovered Hilton wasn’t just a hotel industry pioneer but also a man of strong ethics. What impressed me most was how he built a thriving hotel empire during a time when upscale accommodations were rare.

“To be haunted by past failures or satisfied with past successes is to arrest forward motion.” – Conrad Hilton

Hilton’s Five Points

Hilton’s five guiding principles were designed to ensure the success and profitability of each property:

  • The property’s location: This principle focuses on choosing prime locations that attract travelers and offer convenient access to key attractions or business hubs.

  • Its physical condition and upkeep: Hilton focused on cleanliness, aesthetics, and structural quality to ensure a consistent, comfortable guest experience.

  • The demand for a hotel in the area: Before investing, Hilton evaluated the area’s market demand, ensuring that the property met the needs of tourists, business travelers, or local events.

  • The cost to build or acquire compared to its income potential: Each property was analyzed to ensure the investment balanced costs with expected revenue.

  • The availability and terms of financing: Securing favorable financing terms was key to ensuring profitability, helping Hilton manage costs and focus on growth.

These principles formed the foundation of Hilton’s strategy, driving its reputation for quality and success worldwide.

Conrad Hilton believe in high quality of everything. Here he is testing a bed at the Waldorf-Astoria in NYC in 1949.
Conrad Hilton testing a bed at the Waldorf-Astoria in NYC

The Hilton Model

Hilton believed a successful business relied on great customer service and caring for employees. He emphasized treating employees with respect, providing fair wages, and ensuring they felt valued within the organization. This philosophy became the foundation of the “Hilton Model,” a business approach that prioritized employee satisfaction as key to the company’s success.

The Hilton Model included several key practices:

  • Paying employees above-average wages: Hilton believed that competitive pay not only attracted top talent but also motivated employees to perform at their best.

  • Offering extensive training and development programs: The company invested heavily in training to ensure employees had the skills and confidence needed to deliver exceptional service. Career development was also a focus, giving employees opportunities to grow within the organization.

  • Providing comprehensive employee benefits: Hilton introduced benefits like health insurance, retirement plans, and other perks to ensure their staff felt secure and supported, both personally and professionally.

This employee-centered approach helped Hilton build a loyal and motivated workforce. As a result, the company experienced lower turnover rates, higher productivity, and a stronger sense of teamwork. More importantly, satisfied employees led to happier guests, as their enthusiasm and dedication showed in the quality of service.

By prioritizing its people, Hilton became known for exceptional hospitality and set a standard that shaped the hotel industry. The Hilton Model proved that investing in employees was not just good ethics—it was good business.

Community Involvement

Furthermore, Conrad Hilton’s business strategies also emphasized the importance of community involvement and giving back. He firmly believed that businesses had a responsibility not only to generate profits but also to contribute positively to society. Hilton saw success as an opportunity to uplift the communities his hotels served.

Throughout his career, he implemented various philanthropic initiatives, supporting education, healthcare, and disaster relief efforts in numerous regions. For example, Hilton provided funding for schools and scholarships to give young people better opportunities, contributed to hospitals to improve access to medical care, and extended aid during natural disasters to support recovery efforts. His vision of corporate responsibility showed how businesses can make a lasting impact beyond their operations.

Hilton’s Innovations

Conrad Hilton was not just a visionary entrepreneur; he was a transformative force in the hospitality industry. Known for his ethical business practices and groundbreaking innovations, Hilton redefined how hotels operate on a global scale. His forward-thinking strategies continue to shape the industry today.

The Centralized Reservation System

Hilton was among the first hoteliers to introduce a centralized reservation system—a visionary idea that revolutionized the booking process. This system let guests book rooms across all his hotels from one central location, removing the need for lengthy calls to individual properties. By streamlining reservations, Hilton enhanced operational efficiency while significantly improving the guest experience. Travelers could now secure accommodations quickly and conveniently, setting a new industry standard. Over the years, this approach evolved into the global reservation systems we use today, cementing Hilton’s legacy as a hospitality pioneer.

Customer Satisfaction: The Heart of the Hilton Brand

In the competitive world of hospitality, Hilton understood that prioritizing customer satisfaction was essential for sustained success. His philosophy centered on delivering exceptional service and creating personalized experiences that made every guest feel valued. Hilton’s focus on more than basic accommodations set the brand apart, earning a reputation for excellence with travelers worldwide.

To achieve this, Hilton emphasized the importance of luxurious amenities, warm atmospheres, and above all, well-trained staff. By focusing on the guest experience, Hilton built a loyal customer base and proved that prioritizing customers is key to building trust, loyalty, and growth.

A Commitment to Excellence

Conrad Hilton’s relentless pursuit of excellence was the cornerstone of his success. He believed that every detail mattered, from selecting prime locations for his hotels to ensuring staff were meticulously trained. His uncompromising standards elevated the quality of Hilton properties, setting a benchmark for the entire hospitality industry.

Hilton’s commitment to exceptional service set his brand apart and inspired other businesses to match his standards. His focus on exceeding guest expectations made Hilton a global leader in hospitality and a model for excellence.

The Power of Well-Trained Staff

Hilton firmly believed that a hotel’s success depended on the quality of its employees. For him, frontline staff were the face of his brand, playing an essential role in delivering memorable guest experiences. Recognizing this, Hilton invested heavily in staff training programs to ensure his team was equipped to provide world-class service.

Well-trained employees, Hilton discovered, were more confident, efficient, and motivated. This translated directly into higher productivity, greater customer satisfaction, and ultimately, increased profitability. By focusing on his team’s growth, Hilton improved the guest experience and set his hotels up for long-term success.

A Lasting Legacy

Conrad Hilton’s innovations and principles revolutionized the hospitality industry, establishing new standards for service, efficiency, and excellence. From pioneering technologies like the centralized reservation system to fostering a guest-first culture, Hilton’s legacy shows the impact of visionary leadership. His dedication to quality and customer care proves that true success comes from putting people first.

Lessons from Conrad Hilton’s Success

Conrad Hilton’s remarkable journey offers timeless insights for aspiring entrepreneurs and leaders. Here are five key lessons from his life and career:

1. Persevere in the Face of Challenges

Hilton’s path to success was anything but smooth. Despite encountering numerous setbacks and failures, he never wavered in his pursuit of his dreams. His relentless determination and unwavering belief in his vision were pivotal in turning his goals into reality. Hilton’s story underscores the importance of resilience and perseverance in achieving success.

2. Take Calculated Risks

Hilton had an exceptional ability to see opportunities where others only saw obstacles. He wasn’t afraid to take calculated risks to realize his ambitions. His willingness to embrace uncertainty helped him seize growth opportunities others might have missed, driving his business expansion. For leaders, taking smart risks can be the key to unlocking extraordinary success.

3. Lead with Integrity and Honesty

Integrity and honesty were central to Hilton’s business philosophy. He firmly believed that trust was essential for building long-term relationships with employees, customers, and partners. Even in difficult situations, he prioritized ethical decision-making and transparency.

Hilton’s example reminds us that true leadership is built on a foundation of trust and accountability. In today’s fast-paced world, staying true to core values builds lasting success and inspires loyalty.

4. Embrace Diversity and Inclusion

Hilton recognized the immense value of diversity in driving innovation and growth. He valued inclusivity, knowing that diverse perspectives and experiences drive creativity and a dynamic workplace.

In an increasingly globalized world, embracing diversity is not only a moral imperative but also a strategic advantage. Businesses that prioritize inclusivity are better positioned to understand and serve diverse customer needs, paving the way for greater success.

5. Give Back to the Community

A dedicated philanthropist, Hilton believed in the importance of making a positive impact on society. He actively supported charitable causes and contributed to the well-being of the communities his business touched.

Leaders today can learn from Hilton’s example by prioritizing social responsibility. Supporting local charities, creating opportunities for underprivileged individuals, or sponsoring community initiatives strengthens stakeholder relationships and boosts the company’s reputation. Furthermore, fostering a culture of giving can boost employee morale and instill a sense of purpose within an organization.

Conclusion

Conrad Hilton’s legacy serves as a timeless lesson in leadership, vision, and values. His life shows that true success goes beyond personal or business achievements—it’s about making a meaningful, lasting impact on the world.

Hilton’s principles of hospitality have endured through generations, remaining as relevant today as ever in our fast-paced business landscape. By prioritizing customer satisfaction, fostering excellence, embracing diversity, and supporting the community, businesses can follow his lead. These values not only drive success but also lay the foundation for a legacy that transcends time.

Click here for a post on how to retain your staff.

Impact of Tariffs on US Businesses

We are witnessing interesting times with the introduction of new tariffs by the US. Naturally, these measures are likely to provoke retaliation from the affected countries. The current administration has expressed interest in adopting a similar approach to that of President McKinley, who in the late 1800s and early 1900s used tariffs as a means to grow federal revenue. McKinley even referred to himself as the “tariff president.”

The context during the Second Industrial Revolution was vastly different from today. At the time, the United States was undergoing rapid economic expansion, building industries from scratch. Many of these industries operated independently, as the interconnected global economy we now know hadn’t yet emerged.

Fast forward to today, and we see a much more interconnected global economy, with supply chains spanning across multiple countries. The introduction of tariffs not only affects the targeted country but also has ripple effects on businesses and consumers around the world. In fact, many argue that imposing tariffs can ultimately hurt one’s own economy.

Tariffs as a Hammer

One proposed strategy to revitalize domestic manufacturing is to impose higher costs on goods imported into the U.S., incentivizing businesses to relocate production back home. Take semiconductors as an example: U.S. companies heavily depend on semiconductors produced abroad, as well as raw materials essential for manufacturing processes. By introducing tariffs on these imports, companies might choose to establish operations in the U.S. to avoid the added expense.

This raises an important question: Are tariffs still an effective tool in today’s globalized economy, or do they cause more harm than good? Many economists argue that tariffs are an outdated strategy, poorly suited for fostering international relationships and largely ineffective in a modern economic landscape. In fact, many experts believe that tariffs hinder economic growth by increasing the cost of goods for consumers and businesses alike.

Benefits of Tariffs

However, there are also arguments in support of using tariffs as a means to protect domestic industries and promote fair trade practices. Some argue that without tariffs, countries with lower labor and production costs can unfairly undercut domestic producers, leading to job losses and potential harm to the economy. Tariffs can also be used strategically as a negotiating tool to address trade imbalances and other issues.

Tariffs, like any economic policy, come with both advantages and disadvantages. Policymakers must carefully assess their potential consequences before implementing such measures. In today’s interconnected global economy, it’s equally important to consider their ripple effects on other nations and their industries.

Industries That Could Benefit from Tariffs

  • Agriculture: Tariffs can shield domestic farmers from being undercut by cheaper imports, preserving their livelihoods and fostering local agricultural growth.

  • Steel and Aluminum: These industries have suffered from intense foreign competition, resulting in job losses and plant closures. Tariffs could encourage domestic investment and help revitalize these sectors.

  • Textiles: Similar to steel and aluminum, tariffs can support the struggling domestic textile industry, safeguarding jobs and promoting a resurgence in local manufacturing.

  • Automotive: Globalization has driven many automakers to move production overseas, leading to significant job losses in the U.S. Tariffs could incentivize companies to invest in domestic manufacturing, creating more jobs for American workers.

Industries That Could Be Harmed by Tariffs

  • Retail: Tariffs on imports could raise prices for consumers, dampening demand and potentially leading to job losses in the retail sector.

  • Technology: Many tech companies depend on global supply chains to source materials and components. Tariffs could increase production costs, which may translate to higher prices for consumers and potentially stifle innovation.

  • Tourism: Retaliatory trade barriers imposed by other countries could make it more expensive for Americans to travel abroad, negatively impacting the tourism sector and related industries.

  • Construction: Key materials like lumber, steel, and aluminum are vital for construction projects. Tariffs on these materials could drive up building costs, affecting both residential and infrastructure development.

The Wider Implications of a Tariff War

A tariff war poses significant risks, particularly for industries like consulting. During an economic slowdown, businesses often prioritize essential operations, cutting back on non-critical services. This shift in spending can heavily impact external service providers, such as consultants, who are typically among the first to feel the effects of tightened budgets.

Moreover, could there be a lasting impact on the overall economic growth of the United States? If global trade is disrupted, this could lead to a slowdown in the economy and decreased consumer spending. This would have a ripple effect on various industries, potentially leading to job losses and even a recession.

While tariffs may provide some short-term benefits for certain industries, it’s important for policymakers to carefully consider the potential long-term consequences. In today’s interconnected world, every decision made by one country can have a significant impact on others. Collaboration and open communication are vital in finding fair and sustainable solutions that benefit all parties involved. Ultimately, it is crucial for governments to strike a balance between protecting domestic industries and maintaining healthy international relationships.

The Role of Innovation

In today’s fast-paced world, innovation plays a crucial role in ensuring economic growth and competitiveness. Tariffs may provide temporary relief for certain industries, but they do not address fundamental issues such as lack of innovation or outdated business models. Instead, governments should focus on investing in research and development, promoting entrepreneurship, and fostering a culture of innovation. This not only creates new opportunities for growth but also helps industries adapt and thrive in an ever-changing global market. Rather than relying on protectionist measures, countries should encourage and support their own industries to embrace change and stay ahead of the curve.

Conclusion

In conclusion, while tariffs have historically served as a tool to generate revenue and protect domestic industries, their relevance and effectiveness in today’s globalized economy remain the subject of significant debate. Policymakers must thoroughly assess all factors before resorting to such measures, carefully weighing the potential consequences on both domestic markets and international relationships.

As the world becomes increasingly interconnected, collaboration among nations is more critical than ever. Rather than relying on protectionist measures like tariffs, countries should prioritize finding mutually beneficial solutions that balance the need to protect domestic industries with the importance of fostering fair trade practices. Striking this balance should be a top priority for policymakers navigating the complexities of the modern global economy.

By working together toward shared goals, we can pave the way for progress and build a more equitable global economy—one that benefits all parties involved and supports a sustainable future.

Click here for a post on understanding the economic baseline.

Political Correctness Has Evolved

I couldn’t help but laugh when I saw the picture below. It reminded me of how much the concept of political correctness has evolved over time. Today, it’s not just about avoiding offensive language—it’s about being deeply mindful of our words and their impact on others. Navigating this space requires awareness, skill, and empathy, especially for leaders striving to foster inclusion.

Political correctness has evolved over time
Political Correctness from the Past

Good Intentions Require Thoughtful Execution

I vividly recall a moment that reshaped my understanding of inclusivity. During a presentation on diversity and inclusion, I made a deliberate effort to use gender-neutral language, believing it would foster a sense of belonging for everyone. Afterward, a colleague approached me with thoughtful feedback. While my intentions were good, I had unintentionally overlooked the unique identities and lived experiences of transgender individuals. That conversation was eye-opening, teaching me an invaluable lesson: inclusivity isn’t just about playing it safe with language—it’s about deeply understanding and respecting the complexities of others’ identities.

This experience reinforced that leadership is about more than careful communication. It demands active empathy, a readiness to listen, and the humility to learn from mistakes. Inclusive leadership means cultivating an environment where everyone feels valued, heard, and respected. It’s about being mindful of the words we use, seeking out diverse perspectives, and committing to ongoing education on diversity and inclusion.

Embrace Mistakes with Honesty

Mistakes are inevitable, even with the best intentions. What truly matters is how we respond. When harm is unintentionally caused, taking responsibility and offering a sincere apology is essential. Reflecting on these missteps allows us to grow into more self-aware, compassionate, and effective leaders.

However, inclusivity is about more than words—it requires deliberate action. This means prioritizing diversity and representation at all levels. It involves diversifying hiring practices, ensuring equal opportunities for career advancement, and amplifying diverse voices in decision-making spaces. True progress happens when inclusivity is embedded into the very fabric of an organization, not treated as a surface-level initiative.

Navigating External Challenges to Inclusion

In today’s climate, diversity, equity, and inclusion (DE&I) face increased scrutiny amidst shifting perspectives and political tensions. Yet, these principles are far from fleeting trends—they are essential to building an equitable and just society. As leaders, we have a duty to cultivate inclusivity within our organizations and communities. By continuing to educate ourselves, dismantle systemic barriers, and champion diversity, we can create a world where differences are celebrated, not feared. Embracing change and evolving with the concept of inclusivity is key to shaping a better future for everyone. Together, we can learn, listen, and take meaningful actions toward a more inclusive and equitable world.

But what happens when external forces, such as calls to scale back DE&I initiatives, challenge your values? Or when workplace dynamics test your commitment to personal beliefs? These situations are often complex and uncomfortable, with no easy solutions.

In such moments, open and honest conversations become essential. Engaging with colleagues, leadership, and HR allows us to voice concerns and collaborate on solutions, fostering an environment where diverse perspectives can thrive. Political correctness has evolved to reflect a deeper, more positive understanding of inclusivity. Working in diverse teams may bring differing opinions, but it also provides the opportunity to build bridges, find common ground, and create workplaces rooted in mutual respect and equity.

Inclusivity isn’t just an ideal—it’s a shared responsibility. Together, we can rise to the challenges, embrace the opportunities, and drive meaningful change.

Conclusion

Political correctness has evolved significantly over time, offering leaders a powerful opportunity to shape workplaces that not only embrace diversity but actively celebrate it. By fostering such environments, we cultivate stronger, more innovative teams while setting an example for others to follow.

While political correctness began as a movement against offensive language, it has grown to address the intricate realities of diverse identities. It calls for empathy, understanding, and meaningful action from leaders. Though the process may sometimes feel uncomfortable or challenging, it is essential for building a more inclusive and equitable society.

As we navigate this ever-changing landscape, we must remember that inclusivity requires both intentional effort and thoughtful consideration. Mistakes will happen, but each one is a chance to learn and grow. Let us work toward a future where diversity is not just acknowledged but truly valued and celebrated.

Our words and actions carry immense power. Let’s wield them wisely to foster inclusion and create a world where everyone feels seen and respected. Change is the only constant, so let us meet it with curiosity, openness, and a commitment to building a better tomorrow.

Click here for a post on why DEI has become a derogatory term.

Adaptability is a Necessity for Businesses to Thrive

It’s true, adaptability is a necessity for businesses to thrive. I recently came across an article about Sears, Roebuck and Co., detailing its incredible journey from a modest watch and mail-order company in 1892 to becoming the largest retail chain in the U.S. within just 50 years. Similar to Walmart’s later ascent to global retail dominance, Sears experienced rapid expansion, surpassing 600 stores by the mid-20th century—a testament to its extraordinary growth and innovation.

But what went wrong? How does a company that once reigned as the largest retailer vanish completely? It’s a question that also looms over Macy’s, whose slow decline raises similar concerns. Observing these trends, one can’t help but ask: could Walmart eventually face the same fate?

“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.” – Charles Darwin

Sustaining success over decades is no small challenge. How do businesses adapt to remain relevant in constantly evolving markets? Is it complacency, arrogance, or perhaps both that ultimately leads to the downfall of giants like Sears? These are the crucial lessons companies must confront if they hope to avoid repeating history.

Sears opening in Rio with great fanfare in 1949

The Importance of Adaptability in Business

In today’s fast-changing world, adaptability is a necessity for business success and longevity. Iconic retailers like Sears and Macy’s once dominated their industry but failed to adjust to shifting consumer preferences and technological advancements. Their decline serves as a powerful reminder: no company is exempt from disruption.

To remain competitive, businesses must consistently innovate and evolve. This means staying attuned to emerging consumer trends, adopting new technologies, and continuously refining products and services. Here are some actionable strategies leaders can use to foster adaptability and drive innovation:

  • Cultivate a culture of innovation: Encourage employees to think creatively and share ideas, creating an environment where failure is treated as a learning opportunity, not a setback.

  • Monitor the competition: Keeping a pulse on what competitors are doing can inspire fresh ideas and help maintain a competitive edge.

  • Embrace change: Rather than resisting it, view change as a growth opportunity. Be open to experimentation and take smart, calculated risks.

  • Prioritize customer feedback: Customers offer invaluable insights into their needs and expectations. Regularly seek feedback to refine offerings and improve the overall customer experience.

By embracing adaptability, businesses can avoid the pitfalls of stagnation. Walmart’s continued dominance exemplifies how evolving with the times, rather than resisting them, is key to sustained success.

The Dangers of Complacency

Complacency is a silent killer of even the most successful businesses. When companies reach the top of their industry, overconfidence or arrogance can creep in, stifling innovation and limiting their ability to respond to changing market conditions.

To guard against complacency and ensure lasting success, leaders should adopt the following measures:

  • Promote continuous learning and improvement: Foster an environment where employees are encouraged to develop new skills and refine their expertise.

  • Stay vigilant about market trends: Regularly monitor industry shifts and evolving consumer demands to stay ahead of the curve.

  • Encourage fresh perspectives: Openness to new ideas and emerging technologies can spark innovation and drive progress.

  • Embrace change and experimentation: View change as an opportunity for growth, and support bold, calculated experiments to keep the business agile and forward-thinking.

By addressing complacency head-on, businesses can remain dynamic, innovative, and prepared to thrive in today’s ever-evolving landscape. Adopting these practices ensures companies are not just surviving but excelling in the face of constant change.

The Importance of Continuous Learning

To stay competitive, companies must cultivate a culture of continuous learning. This goes beyond occasional training sessions; it requires fostering an environment where employees are encouraged to seek new knowledge, stay updated on industry trends, and embrace innovative ideas and approaches.

Continuous learning equips organizations to adapt swiftly to shifting market demands, technological advancements, and evolving customer expectations. By embracing this mindset, companies not only enhance resilience but also uncover fresh opportunities for growth and innovation. This proactive approach positions them to thrive amid challenges and uncertainty.

The Role of Leadership

The success of any organization ultimately hinges on its leadership. Strong leaders do more than steer the company—they define its culture and values. To remain competitive in a dynamic market, leaders must exemplify adaptability and champion innovation and improvement.

Great leaders challenge the status quo, question outdated practices, and embrace change when needed. They create an environment where progress and growth flourish. By inspiring their teams and making bold, forward-thinking decisions, they lay the foundation for sustained success.

Conclusion

Adaptability is a necessity. The rise and fall of companies like Sears and Macy’s serve as cautionary tales for businesses across industries. In order to avoid a similar fate, it is essential for companies to maintain adaptability, guard against complacency, have strong leadership, and foster a culture of continuous learning. Only then can they hope to sustain long-term success in an ever-changing market.

So let this be a lesson: no company is too big or too successful to fail if they are not willing to evolve and adapt with the times. The key to survival lies in the ability to embrace change and continuously strive for improvement. In today’s fast-paced world, adaptability is a necessity for businesses to thrive. So let us take heed from the failures of others and make sure our own companies are always evolving and adapting to stay relevant and successful in the long run.

As business leaders, it is our responsibility to ensure that our companies possess this crucial trait in order to survive and thrive in an ever-changing market.

Click here for a post on why complacency with success can cause failure.

From NCSS 3200 to Z16 – My Career Evolved with the Mainframe

An image recently appeared on my computer, taking me back to 1979—my first year in IT as an operator on a National CSS (NCSS) 3200. Nicknamed the “mini-370,” it had more memory than IBM’s System/370 and ran VP/CSS, an advanced version of IBM’s CP/CMS developed by NCSS. IBM later incorporated VP/CSS’s innovative architecture into CP/CMS, which was far ahead of its time. Later, NCSS simplified the name by referring to VP/CSS as CP/CMS.

Evolution of a career from NCSS 3200 to Z16
Dean in 1979 at the NCSS 3200 Computer Terminal

First Virtual Machines

In this role, I learned about virtual machines (VMs), a key innovation in modern cloud computing. CP/CMS utilized a control program to fully virtualize the underlying hardware, enabling the creation of multiple independent virtual machines. Each user was provided with a dedicated virtual machine, operating as a standalone computer capable of running compatible software, including complete operating systems. This approach let programmers share hardware, test code, and refine work in isolated virtual environments.

VP/CSS stood out for supporting far more interactive users per machine than other IBM mainframe operating systems of the time. This performance likely influenced IBM’s decision to add virtualization and virtual memory to the System/370, responding to the commercial success of National CSS and its time-sharing model.

Coding Goes Online

Back in the day, programming was a meticulous and labor-intensive process. Code was first handwritten on programming sheets, then transcribed onto punch cards. COBOL programmers were restricted to running only one or two compilations per day because the NCSS 3200 was primarily dedicated to production tasks. A single error on a punch card could set back an entire day’s progress. My role involved feeding these punch card decks into the NCSS 3200 for compilation, a critical yet unforgiving task.

Over time, we adopted a more interactive approach, allowing developers to edit and test COBOL code in real-time. While punch cards remained a tool for initial input, programmers could effortlessly refine, edit, and recompile their work within virtual CMS environments, streamlining the entire process. A symbolic debugger also let them input test data and debug interactively—a revolutionary feature at the time.

The CMS platform greatly enhanced development flexibility, supporting both standard IBM COBOL compilers and the 370 Assembler. This efficient environment helped programmers work more effectively, streamlining development and enabling groundbreaking innovations.

It’s remarkable how the principles of virtualization, introduced in the 70’s, have endured and become essential to modern computing. These early systems and visionary minds revolutionized development and paved the way for today’s technologies.

My Start as a Programmer

The NCSS 3200, pictured above, was where I first learned to program in COBOL and Fortran—an experience that shaped my career in technology. It led to job offers from companies like Aetna (now CVS), CIGNA, and Desco Data Systems. At 20, I entered the programming world with excitement and ambition, ready for the opportunities ahead.

I clearly remember the interviews with Aetna and Desco, each leaving a strong impression with very different recruitment approaches. At Aetna, the process was polished and welcoming. A senior executive greeted me warmly and took me to lunch in their elegant dining room at the Hartford, CT, headquarters. The conversation was cordial, free of challenging questions, and seemed designed to emphasize the prestige of their organization. Soon after the meeting, I was offered a programmer analyst position with a starting salary of $14,500 per year—generous for the time.

Desco provided an entirely different experience. Upon arrival, I was ushered into a cramped, cluttered conference room without much ceremony. After a short wait, I was given a worksheet with 20 logic and algebra problems—no instructions or time limit. I did my best, knowing I wouldn’t solve them all. Later, I met with an HR representative who asked me to explain my thought process. It became clear that my reasoning had left an impression. Not long after, Desco extended me an offer, though the starting salary—$12,700—fell short of what Aetna had proposed.

Ultimately, I chose Aetna for its higher pay, a decision I’ve never regretted. That choice marked the start of a fulfilling career that profoundly shaped both my professional journey and personal growth. Reflecting on those early days, I’m deeply grateful for the experiences and opportunities that came my way. Working on innovative systems like the NCSS 3200 taught me programming fundamentals and provided lessons that still inspire me today.

Mainframe Evolution

Over the years, I’ve learned a lot, and it’s fascinating to reflect on how far technology has come. In 1979, the IBM/370 had 500 KB of RAM, 233 MB of storage, and ran at 2.5 MHz. This massive machine occupied an entire room. By today’s standards, it could barely store a small photo collection—and accessing those files would be painfully slow.

Fast forward to now: IBM’s cutting-edge Z16 mainframe is a marvel of modern engineering. It can hold 240 server-grade CPUs, 40 terabytes of error-correcting RAM, and petabytes of redundant flash storage. Built for handling massive data with 99.999% uptime, it has less than five minutes of downtime per year.

The evolution is staggering. It’s no wonder the mainframe is experiencing a resurgence—or perhaps it never truly disappeared. This versatile machine has adapted to the changing times, evolving from a bulky production-focused system to a sleek, high-performing powerhouse. Today, mainframes are used for everything from running banking systems and air traffic control to powering e-commerce giants like Amazon. And with advanced features like virtualization and cloud integration, they continue to push the boundaries of what’s possible.

Bridging the Gap Between Old and New

One of the biggest impacts of mainframe technology is its ability to connect old and new systems. Many organizations want to adopt newer technologies but struggle to integrate them with legacy applications and mainframe data. Modern efforts like cloud integration and DevOps allow mainframes to remain crucial for seamless operations.

In conclusion, my career has come a long way since 1979 and so has the world of mainframe technology. From learning to program on an NCSS 3200 to working with cutting-edge systems, I’ve seen how this powerful technology has evolved and made an impact. As we push the boundaries of what’s possible, I’m excited to see how mainframes will shape our digital future.

Note

I was asked to explain CP/CMS since there are many people who were not aware of it. So, CP/CMS, short for Control Program/Cambridge Monitor System, was introduced in the late 1960s and served as the foundation for IBM’s VM operating system, which debuted in 1972. CP handled the virtual machine functionality, while CMS operated as a lightweight, user-friendly operating system, running in a separate virtual machine for each user. This setup enabled users to easily create and edit files within their own isolated environments.

The CP/CMS system was a revolutionary milestone in operating system design, allowing multiple users to run individual virtual machines on a single physical computer. This groundbreaking concept, now known as virtualization, has since become a cornerstone of modern computing, powering countless advancements in efficiency and resource management.

Click here for a post on the evolution of computer programming.

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