Category: Historical Lessons

Welcome to the 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.

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.

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.

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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