Charles Coffin was the co-founder and the first President of General Electric from 1892 to 1912. He became Chairman of the Board of GE from 1913 to 1922 and is often referred to as one of the greatest CEO’s of all time for his tenacity and leadership skills. Charles was not always in the electrical engineering field; at 18 he joined his uncle’s shoe manufacturing company and later founded his own company of the same trade. In 1883, he was approached by a businessman to help a struggling company, American Electric Co., which eventually merged with Thomas Edison’s Thomas-Houston Electric Company, thereby forming General Electric in 1892, now known as one of the most famous companies in the history of the United States. Coffin was named the President and CEO of General Electric in the same year and he has since become a household name in leadership.
After becoming the first president of GE, Coffin “was one of the first leaders to use a style of leadership that allows workers to develop their own ideas. These people were given the freedom to create their own products and test them out. It took great vision to understand that by himself Coffin probably couldn’t think of as many inventions as Edison did by himself. With this new development system GE could get a higher volume of ideas from their scientists. Coffin essentially created the modern ideology of what a CEO needs to do and how a company should operate. Coffin was a pioneer for business leadership and his practices are still used frequently” (“Charles Coffin was one of the,” 2019). Coffin was very trusting of his employees and gave them the freedom to create a culture within the company which ultimately led to its success. He realized that although innovation was important, harboring an entrepreneurial spirit and gaining the trust of his employees was also equally important to the success of his organization
Coffin practiced a transformational leadership style. He was known as “a man born to command, yet who never issued orders” (“Charles Coffin was one of the,” 2019) and had a charismatic personality. He inspired his employees but also gave them the space and creativity to contribute to the company’s core values. “Coffin’s associates (and he always made a point of calling them ‘my associates’ not ‘my subordinates’) knew him as a gracious gentleman and delightful companion” (“Charles A. Coffin,” 2019). He practiced the ideals of inspirational motivation and intellectual stimulation, challenging his followers to think for themselves and pursue their own vision. Coffin set the principle for not only highlighting the products of his business, but also putting value on organizational design and managerial talent.
Charles Coffin made numerous leadership decisions that positively impacted the growth of General Electric, even boosting the company’s market capitalization from $35 million to $184 million during his tenure in the company. One of his most important impacts on the company was “during the depression of 1893. A cash shortage threatened GE’s existence and he negotiated a deal with J.P. Morgan whereby New York banks advanced the needed money as payment for utility stocks that GE held. The tactic saved the company and made possible its rapid recovery and growth during the remainder of his tenure. He retired from the board chairmanship in 1922 and it remains his greatest monument” (“Charles A. Coffin,” 2019). His ability to quickly think on his feet, as well as figure out a solution that was mutually beneficial to both companies, saved General Electric from collapse and bolstered it into the company it is today.
Charles Coffin was named as one of the greatest CEO’s of all time for good reason; he set the precedent for letting employees utilize their creativity while gaining their trust and admiration. He was highly respected by his employees, them often saying “no man exercised his leadership with greater simplicity, greater humility, greater regard for others. He dominated but never domineered. His dominance sprang from the confidence which other placed in him” (Graham, 2011). He was highly respected and recognized by his peers and colleagues for his leadership style which has carried on a century later.
References
Charles Coffin was one of the first leaders to use a style of leadership that | Course Hero. (2019). Retrieved 3 August 2019, from https://www.coursehero.com/file/p5gm74u/Charles-Coffin-was-one-of-the-first-leaders-to-use-a-style-of-leadership-that/
Charles A. Coffin. (2019). Retrieved 29 July 2019, from https://www.ge.com/about-us/leadership/profiles/charles-coffin
Graham, J. (2011). Charles Coffin, The Man Who Electrified GE. Retrieved 29 July 2019, from https://www.investors.com/news/management/leaders-and-success/charles-coffin-the-man-who-electrified-ge/
The Leadership of General Electric 