Alfred P. Sloan Quotes (47 quotes) | Quotes of famous people

Alfred P. Sloan: 47 quotes 0 likes

Famous Alfred P. Sloan Quotes

“There has to be this pioneer, the individual who has the courage, the ambition to overcome the obstacles that always develop when one tries to do something worth while, especially when it is new and different.”

Alfred P. Sloan

Variant: There has to be this pioneer, the individual who has the courage, the ambition to overcome the obstacles that always develop when one tries to do something worth while, especially when it is new and different.
Source: Adventures of a White-Collar Man. 1941, p. 127

“Having been connected with industry during my entire life, it seems eminently proper that I should turn back, in part, the proceeds of that activity with the hope of promoting a broader as well as a better understanding of the economic principles and national policies which have characterized American enterprise down through the years.”

Alfred P. Sloan

Alfred P. Sloan (1936); Cited in: " OBITUARY : Alfred P. Sloan Jr. Dead at 90; G.M. Leader and Philanthropist http://www.nytimes.com/learning/general/onthisday/bday/0523.html," the New York Times, February 18, 1966. This article comments:
Toward the end of the year [1936] Mr. Sloan made a substantial foray into philanthropy by endowing the Alfred P. Sloan Foundation with $10-million.

“Some see danger in bigness. They fear the concentration of economic power that it brings with it. That is in a degree true. It simply means, however, that industrial management must expand its horizons of responsibility. It must recognize that it can no longer confine its activities to the mere production of goods and services. It must consider the impact of its operation on the economy as a whole in relation to the social and economic welfare of the entire community. For years I have preached this philosophy. Those charged with great industrial responsibility must become industrial statesmen.”

Alfred P. Sloan

Source: "The Broadened Responsibilities of Industry's Executive," 1936, p. 358; Also in Sloan & Sparkes (1941, 145); Partly cited in: Roland Marchand (1997, p. 83)

“I hold that if companies are attacked simply because they are big then an attack on efficiency must be a corollary of that attack. If we penalize efficiency, how can we as a nation compete in the economy of the world at large?”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 514

“I had taken up the question of interdivisional relations with Mr. Durant [president of GM at the time] before I entered General Motors and my views on it were well enough known for me to be appointed chairman of a committee "to formulate rules and regulations pertaining to interdivisional business" on December 31, 1918. I completed the report by the following summer and presented it to the Executive Committee on December 6, 1919. I select here a few of its first principles which, though they are an accepted part of management doctrine today, were not so well known then. I think they are still worth attention.
I stated the basic argument as follows:
The profit resulting from any business considered abstractly, is no real measure of the merits of that particular business. An operation making $100,000.00 per year may be a very profitable business justifying expansion and the use of all the additional capital that it can profitably employ. On the other hand, a business making $10,000,000 a year may be a very unprofitable one, not only not justifying further expansion but even justifying liquidation unless more profitable returns can be obtained. It is not, therefore, a matter of the amount of profit but of the relation of that profit to the real worth of invested capital within the business. Unless that principle is fully recognized in any plan that may be adopted, illogical and unsound results and statistics are unavoidable …”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 49

“Get the facts. Recognize the equities of all concerned. Realize the necessity of doing a better job every day. Keep an open mind and work hard. The last is most important at all. There is no short cut.”

Alfred P. Sloan

Alfred P. Sloan in: The Magazine of Wall Street, (1927), Vol. 41, p. 480

Alfred P. Sloan Quotes

“Industry's responsibilities broaden. Its leaders must develop an enlightened and militant statesmanship, for progress in the solution of these problems is vital. If this responsibility is not assumed and discharged from within industry, it is bound to be superimposed from without.”

Alfred P. Sloan

Source: "The Broadened Responsibilities of Industry's Executive," 1936, p. 362

Problem

“First let us ask whether our wealth-creating agencies, particular that of industry, are to be based upon private enterprise of policy management. I can not see how any intelligent observer can have any possible faith in the capacity of political management to provide either stability or progress if it should set out to operate the agencies of wealth creation, particularly industry. It is my firm conviction that any form of 'Government Regulation of Business' is bound to result in an ever-increasing interference with the broad exercise of initiative - the very foundation of the American system. That is the natural evolution of bureaucracy. If that be so, might not the ultimate logical result be the necessity for the socialization of industry through the break down of the profit system induced by the accumulative effect of the ever-increasing political management. We do not need to go far afield to see definite evidences of that possibility”

Alfred P. Sloan

as cited in: Thurman Arnold (2000, 72-73).
New York Times interview, 1935

Faith , Exercises , Intelligence , Business

“Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you hoped for, or for that matter to accept temporary losses. And, in times of inflation, the rate-of-return concept comes up against the problem of assets undervalued in terms of replacement. Nevertheless, no other financial principle with which I am acquainted serves better than rate of return as an objective aid to business judgment. This principle had governed the thinking of the Finance Committee of General Motors since 1917.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 140

Hope , Business , Problem , Thinking

“Take my assets — but leave me my organization and in five years I'll have it all back.”

Alfred P. Sloan

Alfred P. Sloan in the 1920s, cited in: Thomas S. Bateman, ‎Scott Snell (1999), Management: building competitive advantage. p. 276

“The business of business is business.”

Alfred P. Sloan

Widely attributed to Milton Friedman, and sometimes cited as being in his work Capitalism and Freedom (1962) this is also attributed to Alfred P. Sloan, sometimes with citation of a statement of 1964, but sometimes with attestations to his use of it as a motto as early as 1923.
Disputed

Motivational , Inspirational , Deep , Success

“Let me deal here with what General Motors includes and with the responsibility that rests on its management.”

Alfred P. Sloan

Alfred P. Sloan in The Turning Wheel, 1934

“A recovery after a depression is as inevitable as that day follows night. It can not be permanently suppressed. Its vitality is so powerful that it will break down the barriers set up by the most arbitrary dictator. Hence there is developing a new confidence and a new faith in those principles which have formed the the foundation of economic evolution and industrial progress during the last several decades — principles which we have been proud to call "American principles," and for which we have been reared with a wholesome respect. There are still lacking the assurances of a broad and definitely defined opportunity and the elimination of certain unsound economic policies, thus limiting the application of these vital principles we have always known and retarding their ability to accelerate our economic recovery.”

Alfred P. Sloan

Source: "The Broadened Responsibilities of Industry's Executive," 1936, p. 351; Lead paragraph.

Faith , Confidence , Night

“But as president of General Motors, I realized our thinking affected the lives of hundreds of thousands directly and influenced the economic welfare of many important communities, in some of which we were almost the sole provider. In some way, visible or invisible, as we expanded, the economic welfare of millions was becoming linked with the welfare of General Motors. Previously, when industry was smaller, the absorbing problems of industrial management were largely limited to the fields of engineering, production and distribution. Out of its endeavors in these fields had come a continuous stream of new products, providing new comforts and making possible better ways of living. General Motors was becoming large through a, but only because it was rendering a service to community. As its volume of business expanded it became able to do more for workers, stockholders and customers.”

Alfred P. Sloan

Source: Adventures of a White-Collar Man. 1941, p. 144

Way , Communication , Business , Problem

“I am sure we all realize that this struggle that is going on though the World is really nothing more or less than a conflict between two opposing technocracies manifesting itself to the capitalization of economic resources and products and all that sort of thing.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 438

World

“Gentlemen, I take it we are all in complete agreement on the decision here. Then, I propose we postpone further discussion of this matter until the next meeting to give ourselves time to develop disagreement, and perhaps gain some understanding of what the decision is all about.”

Alfred P. Sloan

Alfred P. Sloan. quoted in: " Alfred Sloan, Guru http://www.economist.com/node/13047099," economist.com, Jan. 30, 2009.

Understanding , Decision , Time

“You of course appreciate that this industry of ours the automotive industry is today the greatest in the world. Three or four years ago it passed, in volume, steel and steel products, the next largest industry. This means, expressed otherwise, that upon its prosperity depends the prosperity of many millions of our citizens and the degree to which it has become stabilized in turn has a tremendous influence on the stabilization of industry as a whole, and therefore on the prosperity and happiness of still many more of our citizens. Directly and indirectly, this industry distributes hundreds of millions of dollars annually to those who are connected with it, in one way or another, as workers. It also distributes hundreds of millions of dollars in the aggregate to those who have invested in its securities. The purchasing power of this total aggregation, as you must appreciate, is tremendous.
I believe that if you questioned many of your readers as to the present position of the automotive industry, they would tell you that it is growing by leaps and bounds. I believe further you would sense uncertainty as to what is going to happen in the industry when the so-called state of saturation is reached. I do not know whether you appreciate it or not, but the industry has not grown very much during the past three or four years. It is practically stabilized at the present time.”

Alfred P. Sloan

Source: Alfred P. Sloan in The Turning Wheel, 1934, p. 331-2: Speech by President Alfred P. Sloan, Jr., delivered to representatives of the automotive press at the Proving Ground on September 28, 1927.

World , Way , Question , Sense

“Only in more production and in new production can the American standard of living be increased and the economy be sound.”

Alfred P. Sloan

Alfred P. Sloan, quoted in: Forbes, Forbes Incorporated, (1959), p. 54

“Many associate the word scientific with physics. But it means much more than that. Scientific management means a constant search for the facts, the true actualities, and their intelligent, unprejudiced analysis. Thus, and in no other way, policies and their administration are determined. I keep saying to the General Motors organization that we are prepared to spend any proper amount of money to get the facts. Only by increased knowledge can we progress, perhaps I had better say survive. That is really research, but few realize research can and should be just as effectively used in all functional branches of industry as in physics”

Alfred P. Sloan

Source: Adventures of a White-Collar Man. 1941, p. 140

Money , Way , Search , Intelligence

“Manifestly, in any organization men should move from the bottom up to the top. That develops loyalty, ambition and talent, because there is a chance for promotion. Never inject a man into the top if it can be avoided. In a big organization to have to do that, I think, is a reflection on management. Of course there are always exceptional cases. As the years have passed, developing, as they naturally have, emergencies at times, I have been gratified to find that we have, with very few exceptions, been able to find right within ourselves some individual capable of assuming a greater responsibility, and he has always been given the opportunity.”

Alfred P. Sloan

Source: Adventures of a White-Collar Man. 1941, p. 137

Men , Nature , Thinking , Chance

“By The middle of The 1920s General Motors had accomplished some things, but apart from survival and reorganization, they were more in the realm of the mind than of reality. We knew, as I have related, the strategy with which we proposed to approach the car business, how we proposed to manage the enterprise financially, and the relationships we wanted to establish among persons in different roles. But by the end of 1924 little of this was reﬂected in Our activities in the automobile market. That our volume of business had increased after the slump of 1921 — and especially in 1923 — could be attributed less to our own wits than to the improvement in the general economy and the rising demand for automobiles. While internally we had made much progress, externally we had marked time. But the time had come to act.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 149

Cars , Business , Reality , Time

“Technological progress — and it is a pity more do not appreciate it — is the one sound approach to increased employment and higher wages. There is no other way. Irrespective of what is being said to the contrary, new industries can be created, present industries can be expanded, unemployment can be eliminated in a practical way”

Alfred P. Sloan

Source: Adventures of a White-Collar Man. 1941, p. 10; Published earlier in: Drugs, Oils & Paints, (1939). Vol. 54-55, p. 335

Way

“It was not, however, a matter of interest to me only with respect to my divisions, since as a member of the Executive Committee, I was a kind of general executive and so had begun to think from the corporate viewpoint. The important thing was that no one knew how much was being contributed — plus or minus — by each division to the common good of the corporation. And since, therefore, no one knew, or could prove, where the efficiencies and inefficiencies lay, there was no objective basis for the allocation of new investment. This was one of the difficulties with the expansion program of that time. It was natural for the divisions to compete for investment funds, but it was irrational for the general officers of the corporation not to know where to place the money to best advantage. In the absence of objectivity it was not surprising that there was a lack of real agreement among the general officers. Furthermore, some of them had no broad outlook, and used their membership on the Executive Committee mainly to advance the interests of their respective divisions.
The important thing was that no one knew how much was being contributed—plus or minus—by each division to the common good of the corporation. And since, therefore, no one knew, or could prove, where the efficiencies and inefficiencies lay, there was no objective basis for the allocation of new investment.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 48-49

Money , Nature , Thinking , Time

“It looks as if the war in Europe is rapidly moving towards a conclusion. Probably I am wrong about that but I can't see how it can be otherwise. It seems clear that the Allies are outclassed on mechanical equipment, and it is foolish to talk about modernizing their Armies in times like these, they ought to have thought of that five years ago. There is no excuse for them not thinking of that except for the unintelligent, in fact, stupid, narrow-minded and selfish leadership which the democracies of the world are cursed with.
It is all very well as everybody is in the same position, but when some other system develops stronger leadership, works hard and long, and intelligently and aggressively—which are good traits—and, superimposed upon that, develops the instinct of a racketeer, there is nothing for the democracies to do but fold up. And that is about what it looks as if they are going to do.”

Alfred P. Sloan

Alfred P. Sloan Jr. (June 1940) cited in: David Farber (2003). Sloan Rules: Alfred P. Sloan and the Triumph of General Motors. p. 225

War , Stupidity , World , Democracy

“Roll a ball under your hand on a table and roll a pencil in the same manner. What you feel are "point" and "line" bearings. But to understand what mechanics mean by a surface "bearing," grasp a pencil in your hand and use your other hand to make it turn as a piece of shafting. Now, the lower half of the shaft is supported everywhere by contact with your hand — the upper half is not supported, merely covered. The advantages of ball and roller bearings were obvious many years ago to mechanical people… Solid steel rollers, being inflexible, were not satisfactory at that stage, but a Hyatt flexible roller bearing was different. We had something. Our spirally wound tube roller had a springlike quality, yielded to irregularities caused by poor manufacture, thus making automatic adjustments between housing and bearing.”

Alfred P. Sloan

Source: Adventures of a White-Collar Man. 1941, p. 13-14, as cited in: William Pelfrey (2006), Billy, Alfred, and General Motors: The Story of Two Unique Men, a Legendary Company, and a Remarkable Time in American History. p. 30-31; Sloan describing the Hyatt roller bearing product;

People , Feeling , Understanding , Support

“The industry has not grown much during the past three or four years. It is practically stabilized at the present [1927]. What has taken place is a shift from one manufacturer to another.”

Alfred P. Sloan

Source: Alfred P. Sloan in The Turning Wheel, 1934, p. 210. Sloan in his Proving Ground address in 1927 to automobile editors, in discussing the so-called saturation point.

Past

“In the 1920… the closed body rose to dominance, the Model T came to an end, and the upgrading of cars began. The events of the past few years of car market, I believe, have validated the General Motors product policy that we formulated in 1921. John Gordon, president of General Motors, recently observed that our slogan of “a car for every purse and purpose” is as appropriate as ever; indeed, we have never offered our customers greater variety and choice than we do today. In the 1963 model year the industry offers 429 models of domestically produced cars, compared with 272 in 1955; General Motor alone had 138 models in 1963, compared with 85 in 1955.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 512 (2015 edition)

Cars , Past

“Growth and progress are related, for there is no resting place for an enterprise in a competitive economy.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 15 (2015 edition)

“It is astonishing what you can do when you have a lot of energy, ambition and plenty of ignorance.”

Alfred P. Sloan

Source: Adventures of a White-Collar Man. 1941, p. 18

“In the spring of 1920, General Motors found itself, as it appeared at the moment, in a good position. On account of the limitation of automotive production during the war there was a great shortage of cars. Every car that could be produced was produced and could be sold at almost any price. So far as any one could see, there was no reason why that prosperity should not continue for a time at least. I liken our position then to a big ship in the ocean. We were sailing along at full speed, the sun was shining, and there was no cloud in the sky that would indicate an approaching storm. Many of you have, of course, crossed the ocean and you can visualize just that sort of a picture yet what happened? In September of that year, almost over night, values commenced to fall. The liquidation from the inflated prices resulting from the war had set in. Practically all schedules or a large part of them were cancelled. Inventory commenced to roll in, and, before it was realized what was happening, this great ship of ours was in the midst of a terrific storm. As a matter of fact, before control could be obtained General Motors found itself in a position of having to go to its bankers for loans aggregating $80,000,000 and although, as we look at things from today's standpoint, that isn't such a very large amount of money, yet when you must have $80,000,000 and haven't got it, it becomes an enormous sum of money, and if we had not had the confidence and support of the strongest banking interests our ship could never have weathered the storm.”

Alfred P. Sloan

Source: Alfred P. Sloan in The Turning Wheel, 1934, p. 185-6; Retrospective vein President Alfred P. Sloan, Jr., addressing the automobile editors of American newspapers at the Proving Ground at Milford, Michigan in 1927.

Money , War , Cars , Confidence

“Starting in 1918 at General Motors I found to my surprise] that if I followed the prevailing practice of intercorporate relations I would no longer be able to determine the rate of return on investment for these accessory divisions individually or as a group. This would necessarily mean that I would lose some degree of managerial control over my area of operations. At that time, material within General Motors was passing from one operating division to another at cost, or at cost plus some predetermined percentage. My divisions in the United Motors Corporation had sold both to outside customers and to their allied divisions at the market price. I knew that I operated a profit-making group, and I wished to continue to be able to demonstrate this performance to the general management, rather than to have my operating results on interdivisional business swallowed up in the extra bookkeeping profits of some other division. It was a case of keeping the information clear.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 48

Business , Time

“Some have an idea that the reason we in this country discard things so readily is because we have so much. The facts are exactly opposite-the reason we have so much is simply because we discard things so readily. We replace the old in return for something that will serve us better.”

Alfred P. Sloan

Alfred P. Sloan, in: General Motors, News and Views. (1945), p. 1;

Idea , Country

“My father was in the wholesale tea, coffee, and cigar business, with a firm called Bennett-Sloan and Company. In 1885 he moved the business to New York City, on West Broadway, and from the age of ten I grew up in Brooklyn. I am told I still have the accent. My father's father was a schoolteacher. My mother's father was a Methodist minister. My parents had five children, of whom I am the oldest. There is my sister, Mrs. Katharine Sloan Pratt, now a widow. There are my three brothers — Clifford, who was in the advertising business; Harold, a college professor; and Raymond, the youngest, who is a professor, writer, and expert on hospital administration. I think we have all had in common a capability for being dedicated to our respective interests.
I came of age at almost exactly the time when the automobile business in the United States came into being. In 1895 the Duryeas, who had been experimenting with motor cars, started what I believe was the first gasoline-automobile manufacturing company in the United States. In the same year I left the Massachusetts Institute of Technology with a a BS. in electrical engineering, and went to work for the Hyatt Roller Bearing Company of Newark, later of Harrison, New Jersey. The Hyatt antifriction bearing was later to become a component of the automobile, and it was through this component that I came into the automotive industry. Except for one early and brief departure from it, I have spent my life in the industry.”

Alfred P. Sloan

Source: My Years with General Motors, 1963, p. 37