How Small Changes Yield Huge Results
John D. Rockefeller Sr. was the founder of Standard Oil, and one of the wealthiest men in America.
He was known for continuous improvement, frugality, and immaculate accounting, which is not surprising since he started his career as a book keeper.
A story from Rockefeller’s early Standard Oil days highlights his knack for efficiency.
While inspecting one of his New York City plants, Rockefeller paused to observe a machine that filled kerosene cans and sealed their lids.
“How many drops of solder are used to seal the can?” Rockefeller asked his employee.
“40 drops, sir,” the employee replied.
“Have you ever tried 38?” asked Rockefeller.
Of course they had not.
Upon Rockefeller’s instruction, the employees began using 38 drops of solder to seal the kerosene lids. This caused some of the cans to leak, so they settled on 39 drops.
Reflecting on this moment in his later years, Rockefeller recalled,
“That one drop of solder saved $2,500 the first year; but the export business kept on increasing after that and doubled, quadrupled – became immensely greater than it was [originally]; and the saving has gone steadily along, one drop on each can, and has amounted since to many hundreds of thousands of dollars.”
This took place in the 1870s, when several hundred thousand dollars was the equivalent of several million dollars today.
If Rockefeller cut only one drop of solder and saved millions of dollars, what tiny changes can we make in our lives and businesses to realize the “million-dollar benefit”?
If you are trying to lose weight, maybe it is cutting that afternoon can of soda.
If you are trying to save money, maybe it is canceling that monthly wine subscription (sorry Gary V).
If you are trying to cut costs on your rental business, maybe it is installing high efficiency shower heads in every unit.
These changes may seem tiny, but as Rockefeller illustrated, sometimes a tiny change can make a huge difference.
Which of your excesses are keeping you from achieving your goals? What is your 40th drop?
If you want to read more about John D. Rockefeller, Titan by Ron Chernow is an excellent choice.
