Category: Historical Lessons

Tech Exec - leadership lessons from history Welcome to the Tech Historical Lessons category on tech2exec. History is a valuable teacher, and it has much to offer in terms of insights for tech executives. By looking back at past events, we can gain a better understanding of how certain decisions and actions have shaped the technological landscape we see today.

In this section, we will explore various historical events that have had a significant impact on the tech industry. We will delve into the stories behind these events and extract valuable lessons that can inform our present-day decisions as tech leaders.

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.

Success Can Lead to Failure: A Cautionary Tale

Here’s a cautionary tale about how success can lead to failure. In 1949, oilman Glenn McCarthy spent $21 million (over $200 million today) to build The Shamrock Hotel on Houston’s outskirts, far from downtown. At the time, it was the largest hotel built in the U.S. during the 1940s—a bold and ambitious undertaking.

The Shamrock Hotel in 1949 – Located Four Miles Outside Downtown Houston

Despite repeated warnings from friends and advisors about the hotel’s remote location, Glenn McCarthy dismissed their concerns. Confident in his instincts, he pointed to past triumphs, recalling how his gamble in the oil business had silenced skeptics and made him a fortune. His belief in replicating success fueled his conviction that the hotel’s grandeur would attract guests and prove critics wrong.

At the height of his career, McCarthy was a towering figure in Houston’s business scene. He owned nine thriving enterprises and enjoyed immense wealth and recognition. But whispers spread that he had finally taken on more than he could handle. Undaunted by the doubters, McCarthy leaned on his past victories and pressed forward with unwavering confidence.

That confidence, however, would ultimately betray him.

The Shamrock Hotel—his grand and ambitious venture—struggled to fill its rooms and rarely reached full occupancy. McCarthy spared no expense, borrowing heavily and investing in high-stakes projects to boost the hotel’s appeal. Yet, the anticipated crowds never came. As occupancy rates remained stubbornly low, his financial reserves evaporated. By 1952, burdened by mounting debts he could no longer repay, McCarthy defaulted, and the hotel changed hands. Over the years, the Shamrock was sold multiple times before being demolished in 1987.

The rise and fall of Glenn McCarthy and The Shamrock Hotel serve as a lesson in the dangers of overconfidence, reminding us that even ambitious dreams need pragmatism and careful risk assessment. While success breeds confidence, it can also blind us to the potential pitfalls that may lie ahead. Rather than embracing overconfidence, we should aim to stay humble and cautious in our personal and professional pursuits.

In today’s fast-paced world, where success is praised and failure frowned upon, it’s easy to become overconfident.

History shows that the greatest triumphs come from ambition, hard work, and modesty. As we pursue success, let’s remember that balance and self-awareness pave a more sustainable path to achieving our goals.

So, it is important to check our egos and always be open to constructive criticism and alternate perspectives. Only then can we truly learn from our mistakes and continue to grow as individuals.

We should also remember that failure is not something to be feared or avoided at all costs.

Rather, it is an opportunity for growth and learning. If we acknowledge our mistakes and adjust, even failures can lead to success.

In conclusion, the story of Glenn McCarthy and The Shamrock Hotel teaches us valuable lessons about the dangers of overconfidence. It reminds us to approach our goals with caution, humility, and self-awareness. This helps avoid the pitfalls of overconfidence and keeps us on track to achieve success without compromising integrity.

Click here for a post on how complacency with success can lead to failure.

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Complacency with Success Can Doom Your Company

This tale illustrates how complacency with success can lead to the downfall of even the largest companies. In 1949, during a downturn in the US stock market, the ten companies listed below offered dividends as high as 10%, with stocks priced below their working capital (not even counting their significant physical assets). Stockbrokers were puzzled by the lack of interest in these investments. Among the largest at the time, these ten companies are now defunct. It might be easy to assume that insider knowledge about their futures deterred investors, but that wasn’t the case. Each of these companies continued to operate at least until the mid-1950s.

If you let complacency with success rule your leadership team you are destined to be doomed. Top companies from 1949 that no longer exist today. — Undervalued stocks from early-1949

Ultimately, these companies were doomed by their complacency with success, stemming from their dominant market position and size.

They were industry leaders yet failed to adapt to changing times. Take Lima-Hamilton, for example, which produced steam locomotives. As diesel engines gained popularity, Lima stubbornly clung to steam technology until their downfall. Similarly, Pullman, dominating the luxury sleeper car market for trains, did not foresee the decline in business due to rising automobile and airplane travel, leading to their demise.

Like Pullman, if you do not stay up on industry trends and adjust your business strategy you will fail. — Pullman Car Advertisement from 1949

The stock chart from that period is fascinating. Brokers were puzzled over why these seemingly undervalued stocks weren’t selling. The market was, in fact, grappling with the recession of 1949, which lasted 11 months—from November 1948 to October 1949. The real question is: why didn’t the executives of these leading companies anticipate the changes and adjust their market strategies to ensure their survival? The answer lies in a mindset of complacency and resistance to change.

The downfall of these companies serves as a cautionary tale for businesses today.

In today’s rapidly evolving market, it is crucial for companies to not only adapt but also stay ahead of the curve. The rise and fall of once-prominent companies such as Blockbuster, Kodak, and Sears have proven that no company is too big or successful to fail if they do not innovate and evolve with the times.

Moreover, this historical event highlights the importance of continuous learning and staying informed about market trends. Complacency with success can doom a company. It is essential for business leaders to constantly reassess their strategies and be open to new ideas, technologies, and consumer preferences. As the saying goes, “change is the only constant,” and those who resist it will eventually be left behind.

Here are some tips for businesses to avoid the fate of these defunct companies:

Conduct regular market research and stay up to date on industry trends
Invest in innovation and constantly look for ways to improve products or services
Encourage employee creativity and foster a culture of continuous improvement
Diversify revenue streams to reduce reliance on a single product or service
Embrace technology and integrate it into business operations
Be open to feedback from customers, employees, and industry experts to identify areas for improvement.

By implementing these strategies, businesses can not only survive but also thrive in an ever-changing market. Let us learn from the mistakes of the past and use them as steppingstones towards a more successful future.

In conclusion, the downfall of these ten once-successful companies serves as a reminder that no business can afford to become stagnant. Complacency with success must not cause a company to avoid innovating. Companies must always be willing to evolve and adapt in order to stay relevant and competitive in an ever-changing market. Those who fail to do so risk being overtaken by their more innovative and forward-thinking competitors.

Here is what the ten companies on the list made and when they went out of business:

Bigelow-Stanford – manufacturing and selling electric refrigerators. They went out of business in 1955.
E. W. Bliss – manufacturing and selling machine tools, presses, and dies. They went out of business in 1953.
Cincinnati Milling – also known as “The Mill,” manufacturing and selling milling machines. They went out of business in 1953.
Douglas Aircraft – manufacturing and selling aircraft. They were acquired by McDonnell Aircraft Corporation in 1967 and became a division of McDonnell Douglas until their final demise in 2006.
Foster Wheeler – engineering and construction, as well as manufacturing boilers and turbines. They were acquired by Amec Foster Wheeler in 2014 and later renamed to Wood plc in 2017.
Lee Rubber & Tire – manufacturing and selling rubber products. They went out of business in 1969.
Lima-Hamilton – manufacturing and selling steam locomotives. They were acquired by Baldwin Locomotive Works in 1947 and phased out operations by the early 1950s.
Montgomery-Ward – retail, selling a wide range of products. They went out of business in 2001.
N. Y. Shipbuilding – building ships for the US Navy and commercial clients. They went out of business in 1967.
Pullman – luxury sleeper cars for trains. They went out of business in 1969 after facing financial struggles due to the decline in train travel.

Click here for a post on how to not let success ruin your career.

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The Importance of Understanding the Economic Baseline

After my article, “The Danger of leaders Not Listening“, I was asked why I thought many see the economy as struggling, despite signs of growth. I believe this sentiment stems largely from the significant changes brought about by COVID-19. When comparing pre-COVID prices to current ones, they are indisputably higher, reflecting an increased cost of living. The economic baseline from before COVID no longer applies.

Historical events like the post-WWII growth period show how economic baselines need reassessment after major disruptions.

The impact on cost of living during the two world wars. Need to understand the economic baseline. — The Impact on Cost of Living During the Two World Wars

Unfortunately, no one has clearly explained to the average American how COVID-19 affected the cost of living (and GDP). People blame the government for not controlling costs, but it’s challenging amid such upheavals. After events like COVID-19, a major realignment occurs, and the economy begins to grow again from this new baseline.

One major factor in the economy’s struggle is the shift to a more digital and remote lifestyle.

This transition was accelerated by COVID-19, forcing many businesses and industries to adapt quickly in order to survive. This resulted in job loss for some and increased competition for others, leading to financial instability and uncertainty.

Additionally, the pandemic highlighted existing inequalities within our society, particularly in terms of access to resources and opportunities. COVID-19’s economic impact hit marginalized communities harder, making recovery from the pandemic’s disruptions even more difficult.

Furthermore, there were concerns about inflation as a result of the massive amounts of government stimulus put into place during the pandemic. This led to fears of rising prices and a decrease in purchasing power for individuals and businesses.

To understand the economic struggles, we must also consider COVID-19’s psychological impact on consumer behavior.

Many people were more cautious with their spending, prioritizing essential items over non-essential purchases. This change in consumer behavior greatly affected businesses and their ability to thrive in that economic climate.

Overall, it is clear that COVID-19 had a significant impact on the economy and its recovery. Leaders must acknowledge the challenges and find sustainable solutions for both current struggles and long-term impacts. As we continue to navigate the pandemic’s impact, individuals should educate themselves on economic changes and adapt. Only then can we work towards a more stable and resilient economic future.

The effects of COVID-19 will be felt for years, so leaders should listen to concerns and address them proactively.

This includes supporting those most affected by the pandemic and implementing policies that promote economic growth and stability.

WWII as a Disruptive Event

The last major event to impact the economy like COVID (rapid GDP swings), with widespread business shutdowns and supply limitations, was World War II. Before WWII, the cost of living was lower due to economic stability and fewer disruptions. However, the war introduced significant shifts in production, supply and demand, and heightened government intervention, all of which influenced prices. After the war ended and production returned to normal, prices remained higher than before, resulting in a new economic baseline.

Like COVID-19, the aftermath of WWII required reassessing economic baselines for growth and stability. This teaches us to focus not only on short-term recovery but also on long-term solutions for a sustainable economy. Leaders then had to listen to individuals’ concerns, and it’s crucial for leaders today to do the same to guide us through uncertainty.

What Is Gross Domestic Product (GDP)?

Gross domestic product (GDP) represents the total monetary value or market worth of all finished goods and services produced within a country during a specific time period. Serving as a broad indicator of a nation’s overall economic output, GDP acts as a comprehensive measure of the country’s economic health.

Before World War II, the U.S. GDP was stable, but it surged as the country ramped up production for a wartime economy, retooling factories and hiring workers. After the war, GDP experienced a significant decline as factories adapted to a peacetime economy, leading to reduced production and substantial layoffs.

GDP fluctuation during and after WW2. The economic baseline changed. — GDP Fluctuation During and After WW2

Before COVID, the U.S. GDP was stable following the recovery from the 2008 financial crisis. However, when the pandemic struck, GDP plummeted as production halted and businesses closed. As the pandemic receded, GDP soared with the resumption of business activities, restaurant openings, and more. This resurgence caused a notable increase in GDP, leading to a higher cost of living and rising prices.

The chart illustrates that from 2020 to 2024, there were fluctuations reflecting the adverse cost of living impacts faced by the average American.

GDP fluctuation during and after COVID. The economic baseline changed. — GDP Fluctuation from 2020 to 2024

Volatile GDP fluctuations challenge wage growth, making it hard to keep pace. Despite GDP surpassing pre-COVID levels, wage and price stabilization is only now emerging. As the economy continues to recover, workers continue to grapple with stagnant wages and increasing living costs.

In conclusion, both COVID-19 and World War II serve as prominent examples of major events that have significantly disrupted the economy. These disruptions not only create short-term challenges but also require a reassessment and adaptation to new economic baselines in order for long-term stability and growth to occur. Understanding the impacts of these events on GDP is crucial in navigating through these changes and creating sustainable solutions for the future. So, it is essential to constantly monitor GDP and make necessary adjustments in response to major disruptions, ensuring a stronger and more resilient economy for all.

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Clarence Darrow and the Importance of Presentation

Clarence Darrow is celebrated as one of history’s most accomplished lawyers, largely due to his distinctive courtroom style. More than an eloquent speaker, his flair for dramatic performances was pivotal to his success. His ability to captivate juries with a commanding presence significantly boosted his extraordinary achievements. Learning from Darrow, the way you present yourself in business can enhance your chances of success.

Judge overlooking Clarence Darrow’s theatrics in court – 1924

Darrow’s courtroom style was renowned for its passion and persuasiveness.

He believed in the power of storytelling and often used anecdotes to connect with juries and evoke empathy. This approach not only made him a master advocate but also revolutionized legal presentations.

“The world is made up for the most part of morons and natural tyrants, sure of themselves, strong in their own opinions, never doubting anything.” – Clarence Darrow

Beyond the courtroom, Darrow’s legacy continues to inspire professionals from all walks of life. His powerful public speaking skills serve as a valuable lesson for business leaders who want to make a strong impression on their audience. By using storytelling, personal anecdotes, and captivating delivery, one can effectively convey a message and influence others. Darrow’s fearless approach to tackling challenging cases also teaches us the importance of taking risks and standing up for what we believe in, even if it goes against societal norms.

In business, telling a compelling story can be crucial in securing deals, partnerships, or funding.

People are more likely to remember and be swayed by a well-crafted narrative than by dry facts and figures. Additionally, a strong, commanding presence can leave a lasting impression on potential clients or investors.

Beyond his theatrical performances, Darrow was recognized for his unwavering dedication to defending the underdog and fighting for justice. He took on unpopular cases and challenged societal norms, often facing backlash. Yet, his resolve to fight for his beliefs earned him respect from both colleagues and opponents.

In the business world, standing up for your values and beliefs, even when they diverge from popular opinion, is vital. By staying true to your principles, you can earn respect from peers and establish yourself as trustworthy.

Clarence Darrow’s legacy teaches us that powerful storytelling, a strong presence, and dedication can lead to success in both the courtroom and boardroom. When presenting or pitching an idea, channel your inner Clarence Darrow and captivate your audience with your unique style. As Darrow himself said, “The only real lawyers are trial lawyers.” In business, effective communication and persuasion can make all the difference in achieving your goals.

In conclusion, Clarence Darrow’s influence extends far beyond the realm of law. His mastery of storytelling, commanding presence, and steadfast beliefs are valuable lessons for anyone looking to excel in their field. By embracing these qualities and incorporating them into your own style, you too can achieve extraordinary success in both personal and professional endeavors. So instead of viewing Darrow as solely a “lawyer,” let us remember him as a trailblazer and inspiration for all professionals striving for excellence.

But was Clarence Darrow considered a good person?

It is debatable whether Clarence Darrow was considered a good person. While he undoubtedly had a great legal mind and made significant contributions to the field of law, his personal life and actions have been highly controversial. He often defended clients accused of heinous crimes, including murder, which some viewed as morally questionable. Additionally, Darrow was known for taking on cases purely for publicity or financial gain rather than solely for justice. However, others argue that his dedication to defending the underprivileged and fighting against social injustices outweigh any negative aspects. Ultimately, it is up to individual interpretation whether Darrow can be considered a “good” person or not. So, while he may have been a master in the courtroom, his character remains a topic of debate.

Nevertheless, Darrow’s impact on the legal profession cannot be denied. His defense of controversial clients and his use of innovative tactics set a precedent for future lawyers to challenge traditional methods and push boundaries. In addition, Darrow’s belief in rehabilitation instead of harsh punishment greatly influenced criminal justice reform movements. He was also an advocate for civil rights and fought against discrimination based on race and religion.

Click here for a post on building presentation and communication skills.