Document 85aM7JZEDkRMyoadr1zgja4K

Covering the Earth 1885-1919 Theyoung company's most successfitlproduct was SWP, a preparedpaintfor architectural uses (below). The best advertisementsfor SWP were testimonialsfron professionalpainters and brightly colored Victorian buildings. ^ Sh er w in - Wil l iams PREPARE. J.\ *tfeior and in tenor Use on Bud ^ s h ad e k . 4 I Ch a p t e r 2 in che four decades after its entry into the rc.idy-mix paint business, the Sherwin- Williams Company grew to become the largest producer of paints and varnishes in the world, with substantial presences in Canada, England, Australia, and New Zealand. This was a remarkable achievement, for at its founding. Sherwin-Williams was but one of hundreds of small paint manufacturers based in the United States. It rose to prominence, moreover, amid older, larger, better endowed, and better established competitors. And although it gained from the rapidly growing economy of northeast Ohio, its leading competitors, based in the East and in Chicago, sold to markets that were growing still faster. To Williams, who reflected on the matter late in life, the source of the company's success was clear: it was "entirely due" to the policy adopted at the outset by the managers of the business, and which had been "adhered to, with very few changes, ever since." As he explained, This policy involved a thorough and comprehensive organization of the business to its minutest details: a determination to sell only such goods as were the best and which would be found to be so by our customers; and a representation in the way of traveling salesmen which should be of such a high quality as could not fail to make its force recognized by all with whom it might come in contact. In short, perfect organization, perfect goods and perfect and honest representation...persistently adhered rn.... Had he been asked, Williams might also have listed other reasons for the company's success, including the determination of its leaders to grow the business. As Shcrwin himself observed, competition "did not check our efforts for further extension, but on the contrary it served as a tonic, arousing our ambition to catch up and get ahead of the older houses." In his view', everyone "associated with me felt this new energy, which has never left us. To me, the whole thing became like a game or contest in which I took the keenest pleasure." Sherwin-Williams began to carve out a distinctive image at an early date. Although SWP, its most successful product by far, was used primarily as an exterior house paint, the company' sought to develop high-quality products for commercial and industrial applications. An early .slogan ran, "the right quality paint and varnish for every surface." The company sold coatings for use on railroad cars, carriages and buggies, manufacturing equipment, and ships and marine equipment, as well as for the interior and exterior of commercial and residential buildings. In pursuing this strategy, Sherwin-Williams positioned itself to rake advantage of the booming growch of the U.S. economy. The development of the 21 0007-SWP-000128452 0007-SWP-000128453 OlAITHt 2: CoV'KKI\<. Illi, F.AR III railroad and telegraph networks made it possible to break out beyond regional markets and to serve the growing national market. Sherwin-Williams was among the first American companies--and probably the first American paint company--to recognize the possibilities ofsuch an opportunity'. In 1887, Sherwin-Williams opened an office in New York, and signs of growth were apparent throughout the company. Sales of railway paints, for instance, grew spectacularly. The company could hardly have chosen a larger and more promis ing industry to serve. Railroads were the nation's first billion dollar industry; by 1880, investment in railroads amounred to *4.6 billion, a total that doubled wirhin the decade. Railroads were a particular interest of Williams who `attended many meetings of the Railway Master Car Builders and other railway operating executives.'' He also "followed closely the development of freight car paint, passenger car colors, and other railway specialties." In 1883, the company employed a full-time salesman dedicated to developing the market for railway paints. By 1888, profits were sufficiently robust to allow Sherwin-Williams to repay capital supplied by Murphy & Co. and to terminate its relationship with that New York concern. In the same year, the company completed its first acquisition, purchasing controlling interest in rhe Calumet Paint Company of Chicago from the Pullman Standard Car Company, maker of the famous railroad sleeping cars. This transaction yielded multiple dividends. Not only did it provide the steady business of supplying one ofAmericas largest companies bur ir also boosted Sherwin-Williams's presence in Chicago, home of the McCormick Harvesting Machinery Company (later better known as International Harvester and today, as Navistar) and the agricul tural equipment industry. Yet another benefit was the opportunity to employ a young, hard-charging Chicago paint-maker named George A. Martin, who eventually rose to become Shcrwin-Williams's third president. Sherwin-Williams posred its first $1 million sales year in 1890, while capital in the business had grown co $500,000. These milestones marked the way to continuing growth and prosperity. Two years later, the company cemented an important connection in Canada by establishing an agency relationship with Walter H. Cottingham, a Montreal paint-maker. Born, in 1866, the year when Sherwin entered the paint industry, Cottingham pursued a career that in many respects paralleled Sherwin's, but was marked by even greater ambition. According to an early biographer, Cottingham's "school days were not too numerous." Ac the age of 15 he worked as a clerk in a hardware store in Peterboro, Ontario. From there, he moved to Montreal, where he also traded in hardware and paints. By his 2.5th birthday, he had made himself into "a miniature captain of industry." He was proprietor in his own paint-making company, Walter H. Cottingham &C Co.; senior partner of Cottingham. Robinson & Co., a 23 0007-SWP-000128454 During the tenures of Walter H. Cottingham (left) ns general manager anti president (I898- /922), Sherwin- Williams expandedforty-fold. A mong Coiriugham ' fegat ie> wet e systematic organization- represented by a chan from 19th {above), and inspirational sales tactics, hi be drafted the Sherwin- William> Code ofPrinciples, a set of'hitsme^s and ethicalprecepts that touttune to guide the company today fhelmet. 0007-SWP-000128455 ('jiii'ri.K 2: Gj v t .k im. mi Ha h iii company that specialized in dyes and dyestuffs: proprietor of the Windsor Chemical Company, makers of gold paint and gold specialties; proprietor of the ht. Lawrence Canoe and Boar (Company, makers and dealers in canoes, boats, and fittings; and director of the Non-Chemical Laundry Company- Cottingham possessed outstanding gifts as a salesman, a quality that endeared him to his associates in Cleveland, k was said, for example, that "though his goods were higher priced than others, Mr. Cottingham argued that they were worth more and then and there proved his selling ability by making a success of the different lines." By 1897. the agency relationship between Cottingham and SherwinWilliams had blossomed, first into joint investment in a Montreal plant to manufacture SWP, and then into a full-fledged merger. The next year, Cottingham moved to Cleveland to assume duties as general manager of the company. From that time forward, until his retirement in 1922, he was the most dynamic force in the company. In >903, following Williams's death, he was elected vice president and general manager; in 1909, when Sherwin retired to become chairman of the board, Cottingham was named president. Under his leadership, Sherwin-Williams pursued a strategy of aggressive expansion. Cottingham is little known in business history, although as a salesman and organization builder, he bears comparison to such legendary figures among his contemporaries as John H. Patrerson, the charismatic leader of National Cash Register; Asa Candler, the leader who built Coca-Cola into a national brand: and Harley and William Procter, the architects of the modern Procter & Gamble. Indeed, Cottingham had few peers as an inspirational salesman. "Enthusiasm is- a good thing," he proclaimed. "It is good to be enthusiastic over rhe firm you represent. It is nor a bad thing to be enthusiastic over yourself." And he went on ro note, "But it is even greater if you can instill enthusiasm in others for your goods, your firm, and yourself Get into something where you can be enthusiastic; your chances of success will be even greater there." The themes of his messages and speeches to the sales force at SherwinWilliams were always uplifting: "Enthusiasm," "Pluck," "Courage," "Do It Now," "Staying Power," "Ambition," "The Fight is On," and "Forward Again!" were titles of his editorials in rhe employee magazine. The Chameleon. As one admirer noted, "Mr. Cottingham imparts enthusiasm to others as the sun warms chat which it shines on. Roads- that look steep, hazardous, and absolutely impassable, lose their horror after a five-minute talk with him." In fact, he explained, "the angle ofvision changes and barriers that appeared ro be made ofstone turn out to be only `near-stone' and not in the least formidable." A favorite Cottingham saying noted that "the way to get business is to go after it--don't wait for it to come ro you. Others are keen for business. Get there early. Get there first. Get our and hustle." 25 0007-SWP Mix in g Co n f id e n c e w it h Pa in t hi the 1880b salesmen such as Lewis, C.S. Wheeler, D.E. Fisher, andA. W. "Judge*Bedbtrd (pictured set bottom) were assigned regional territories in which to peddle Sherwin-Williamspoints. Letter, the company supplemented its wholesale trade with retail establishments, such as Walter Cottingham s agency in Montreal (tap, pictured in 1895) and a store in Binghamton, New York (middle, putteredin 1910). In 1897, Sherwin published an editorial in The Chameleon that captured his business philosophy and his folksy directness in lour brisk paragraphs. Called "Mixing Confidence with Paint,'* it ran as follows: "Ninety-nine out of ewery one hundred persons whom wc ineel know very little about puintv and colors. Few people have occasion to consider the subject of house painring oftener than once in five years. Unscrupulous manufacturers of, or dealers in, painr have raken advantage of this common luck ofknowledge, and by gross misrep resentation have induced the gullible to buy the most worthless stuffwhich is guaranteed in the strongest terms to be the best paint. "`Once bit, twice shy.' is characteristic ofthe msn who has bought `dope' labeled 'mixed paint.1 It is pointedly true ofpaint, that`You can ford all of the people some ofthe time; you can fool some ofthe people all of the time) but you can't fool all ofthe people all of the time.' "Wc have believed that it was good paint policy to fool none of the people nooc ofthe time. "We have sTndioosfy tried to mix confidence with our paints and colors. At every opportunity wc have tried m impteu upon all who sell our products that the most important thing t o teach the paintusing public in connection srith our name was confidence in anything that bears our label." w 0007-SWP-000128457 Ch a p it r j : Co v e r in g t h p . I'.a k t h Cottingham's talents extended Far beyond rhetoric, and his business strategy and methods proved remarkably effective. They began with a vision to cover the earth with Sherwin-Williams paints. This notion, which advertising manager George W. Ford had sketched as early as 1893, was eventually captured in a new corporate logo. The official change came in 15)05. when Cottingham persuaded Sherwin to abandon the chameleon logo. Sherwin had initially balked at the "Cover the Earth" image, not because he disliked it, but because he believed that it was inaccurate. At that time, the company's business focused exclusively on North America. Cottingham countered by agreeing that the new symbol was not strictly accurate, but he argued that it soon would be. Cottingham also displayed a genius for organization. "Business without system is like a ship without a rudder," he said. "System insures a straight course and a smooth successful voyage over the sea of commerce." For Sherwin-Williams, this meant an organizational structure and supporting policies that encouraged efficient production and helped promote sales. The factories in Cleveland, Chicago, and Montreal were the responsibility ofJ.C. Beardslce, who served as general superintendent from 1886 to 1910. Distribution and sales were handled by dealers and agents who were given exclusive rights to sell Sherwin-Williams products in their trading area. Following Cotringhams arrival in. Cleveland, the company established dealerships and opened warehouses throughout North America at a furious dip. By 1904, when the company printed its first organization chart, distribution and sales were organized on a regional basis, with the United States and Canada divided into five districts, each consisting of several divisions that included depots, warehouses, and, in a few rare instances, retail agencies. These agendes were established by SherwinWilliams in small-to-medium-size towns such as Worcester, Massachusetts; San Diego, California (1890 population of16,159); and Binghamton, New York. These retail outlets transacted business under their own names and sold Sherwin-Williams products directly to consumers. Some warehouses also induded retail stores, although the company did not encourage this practice. More important than the formal structure of Sherwin-Williams was the spirit that animated it. As Cottingham put it, "the greatest factor in building a large business is organization" and "the greatest factor in organization, in my estimation, is the human factor." He pointed our that "the reputation of the Company depends quite as much upon the character of men who represent us as it does upon the character of our goods and our office methods." Accordingly, the company took pains to recruit employees with qualities similar to those of its leaders: industry, honesty, courtesy, sobriety, and, of course, enthusiasm. To offset the seasonal swings of die business--most painting occurred in the warm weather months--Cottingham launched annual efforts in the spring to 27 I 0007-SWP -iw .. ih u pm1^ T "Trr pnwjinip'UP" ~r>- ' ii *1: *.' i 0007-SWP-000128459 * 4 Ch a p per i: Co v e r in g t h e Ea r t h increase business, and charged representatives `not only to bold and increase old trade, but to prosecute a campaign for new accounts." As a company manual put it, Remember that good paints and varnishes are worth a good price. Quality always has a value. The best salesmanship, as well as the best manufacturing and merchandising successes have been built upon quality with a fair price ibr it. No permanent or satisfactory success is ever made by selling goods for less than they are worth or in pushing a business on a price basis alone. There is no middle road. You must either build a business on quality and get the price for it, or build on price and make the 3uality to fit it Hie Sberwin-Williaxm Co., at its start, chose te first, and have adhered to it ever since, and they expect and demand chat their representatives should stand for the same principle. Be a quality man. Think quality, talk quality, sell quality. Ifyou back up die goods, the goods will back you up. Like Sherwin, Cottingham was a stickler for detail, order, and neatness. Also like Sherwin, who had established the first company lunchroom, Cottingham insisted on providing congenial conditions ofwork for employees, including `the best oflighting, heating and ventilating facilities* as well as "dean and attractive cloak rooms, lockets, and lavatories." He insisted that "there should also be, ifpossible, lunch rooms, reading rooms, and rest rooms." Such investments, Cottingham believed, made good business sense: "This sort ofwork should never be done in the spirit of charity or in a patronizing kind ofway, but solely on the basis that a good staffis deserving ofthe best and Surest kind oftreatment, and that anything that increases the efficiency ofthe staff is profitable to the business." Cottingham approached the training and motivation ofemployees with characteristic thoroughness. Annual meetings ofmanagers and sales representatives to exchange news and information had started in 1881. Under Cottingham, these meetings grew into conventions during which management reviewed the year's results and offered projections for the coming year, and speakers made formal presentations and led discussions on important business topics. Cottingham instituted other meetings and organizations to help improve business skills and build morale. The Get-Together Club, which consisted ofdeportment heads and their assistants, started as a debating society to help members hone speaking and presentation abilities and grew into a kind ofgeneral management committee. A similar organization, the Foreman's Club, assembled every two weeks Tor instruction and entertainment" and provided an opportunity for supervisory personnel to become better acquainted with each other and their work. In 1911, reflecting die company's successful national advertising campaign around the theme "Brighten Up Finishes," female employees in the different divisions organized "Brighten Up Girls" dubs. Affectionately known as "BUG dubs," these groups supported charitable activities and engaged in volunteer service. Ocher 29 0007-SWP-000128460 S-W-P! Ra h ! Ra h ! Ra h ! During the 1980s, when Americans searched for (he secret ofJapanese success in global competition, some observers pointed to the cohesive cultures ofJapanese companies. These analysts cited the practice in some Japanese companies of encouraging employees to sing company songs as accounting for pan ofthis cohesive spirit. In this respect, the Japanese were following old American examples. Starting in the late nineteenth century and for many yean thereafter, Sherwin-Williams' annual conventions of managers and sales representatives kicked off with the company cheer and inspirational songs. A sample: Ra in b o w M \k e r s Tune: "Let M, t lail You SwceihvarT Lef's bring in the orders For good old S.W.P. Let's paint all creation As it really ought to be Show the world our colors. That will never lade, Sherwin-Williams Products Are the choicest made. On w a r d Sh e r w in -Wil l ia ms Tune: 'On Wisconsin' Sherwin-Williams! SherwinWilliams! Flashed in nightly flame. Old and trusted standards practiced Have spread wide your fame. Sherwin-Williams! SherwinWilliams! Grander dreams begin Strive, staunchly strive For greater fields to win. And one n! lb, few songs net composed .ihnui venual integration: We Co v e r Th e Ea r t h lore "' w.iuiT Kin-. All 'round (his wide, wide wniiil >>f ours. Our paints do flow Where dies withstand the rain .md sunshine And all the gales that blow. C'.hono: All the world knows Slierwin Williams Everywhere ynu go That's V .liise we wnlk and play together Thai's why wv grow and gnos. Second Yersc: Down from tlie darkest mines our paints come. From pine woods tall: From countless magic sources gathered We're sure to know them all. Chorus: All the world is glad and cheery Everywhere we roll Painted with Sherwin-Williams rainbows That reach from pole to pole. /* 1915, theaanpmrryi "Brighten Up "udn c*mp*igrr nlivrrtnl the dnlUmtivn ofits retell start in Columbus, Ohio. t>* 71d. 1 0007-SWP-000128461 Ch a p t e r 2: Co v e r in g t h f . Ea r t h company-sponsored organizations included a glee club, a debating dub, a baseball team, and a benefit society. Many meetings and events were launched by shouting the company cheer--"Sis--! Boom! Ah--h--h! S-W-P! Rah! Rah! Rah!*--or by singing SherwinWilliams songs, with inspirational or amusing lyrics about the company set to popular tunes ofthe day. As the company grew larger, the officers (bund it useful to distribute information about the company in written form "to let the staffknow what we are driving at." In 1897, The Chameleon made the first of its regular monthly appearances. It reported information on the business, offered advice and instruction to sales people, and included news of organization and personnel changes. Shcrwin edited die first several issues, which sought "to keep everyone in the organization interested in what die company is doing as a whole." In November 1906, at the banquet opening the annual convention, (Nottingham introduced "The Sherwin-Williams Code ofPrinciples," ten points that embodied the company's general philosophy. "We put them into die hands of every man who comes into the concern, that he may know what the Sherwin-Williams concern is striving for and what they stand for." The company's aids for sales representatives were exceptionally compre hensive. The Representative's Handbook, introduced in 1907, ran neatly 450 pages in length and coveted virtually every aspect ofthe Sherwin-Williams organization and operation. "The boys call it the Sherwin-Williams Bible," remarked Cottinghom, who added char "We expect them to know it a good deal better than the average man knows his Bible." A stream ofofficial bulletins offering news ofnew products, tips on selling, and changes in organization and procedures supplemented the handbook. To stimulate still better sales, (Nottingham created the "Top-Notchcr* list. Employees who exceeded sales forecasts by the greatest margin, or who otherwise contributed measurably to the company's success had their names inscribed on a trophy and were awarded bonuses. (Nottingham's inspirational leadership and sales innovations accounted for much ofSherwin-Williams growth during the quarter century after he assumed the position ofgeneral manager. A strong believer in die value ofa diverse product line, (Nottingham defined the company's business as making "finishing materials for all uses" and "not one paint for all purposes but a special paint for each purpose." SherwinWilliams manufactured a dazzling variety ofaver 600 distinct products: paints, varnishes, colors, stains, and enamels. In fact, a company publication noted, "the only thing of the kind that the Sherwin-Williams Co. doesn't make is artists' colon." The company remained at the forefront ofpaint-making and varnishmaking technology, lb gain greater control over the raw materials it needed, SherwinWilliams made a series of investments and acquisitions between 1890 and 1910. This vertical integration started on a modest scale, with che company making in own wooden boxes for shipping cans of paint. (The company had made its own paint containers since 1874.) In 1890, the company purchased a steamship, che A.G. Lindsey, to carry Under Cottiugham V leadership Sherwin-Williams expanded aggressively, supplying its reqnitemeatsfor United oilat aplant along tbe Cuyahoga Riper in Cleveland. utmaoL lire company's affiliation with Lewis Hrrger & Sons efLondon provided access to markets throughout the British Contmonwesdth. Pictured: pmbably else laboratory at Berger & Sons in the early 20th century. 0007-SWP-000128463 Ch a p t e r z: Co v e r in g t h e Ea r t h lumber for these boxes Bom Minnesota across the Great Lakes to Cleveland. Far more ambitious was an investment in 1902. to build a linseed oil plant in Cleveland. Two peats later, the company acquired a mine in Magdalena, New Mexico, to produce zinc a oxide, and a smelter in Joplin, Missouri; soon thereafter, the company built a new smelter in Coffeyville, Kansas; And in 1910, Sherwin-Williams purchased a Detroit pigment manufacturer. Expansion was not limited to vertical integration. During the same period, Sherwin-Williams built new paint and varnish factories in Newark, New Jersey, and Oakland, California. In pursuit of Cottingham's dream tx> supply SherwinWilliams paints around the globe, the company forged an alliance with the wellregarded London firm oF Lewis Betger & Sons, Ltd., in 1905. Berger Sc Sons, whose origins stretched back to the eighteenth century, was renowned as a maker offine paints and high-quality colon for coaches. The company brought to Sherwin-Williams, or soon added, operations and outposts in Canada, Australia, New Zealand, South Africa, India, and China. The arrangement called for the two companies "to work entirely separately, bur to aid one another where help was needed or likely to assist in bringing in new business," Sherwin-Williams also established agencies in Puis and Berlin and shipped paints t several pons in the Caribbean and in South America. The character ofpaint manufacturing was changing dramatically in this period. The age-old practice of mixing paints Bom natural raw materials was giving way to more scientific and controlled paint-making, using chemically refined ingredients. A sign ofchanging times was the career of E.G. Holton, who was hired to replace Neyman as chiefchemist in 1892. The company's research lab at this time was essentially a one-man operation that focused on testing samples and quality conttoL In 1896, with encouragement from senior managers, Holton supervised the production of dry colon from basic and intermediate chemicals, making an cosine Vermillion at Cleveland. Three years later, die manufacture ofdry colors was relocated g o more spacious quarters in Chicago. By then, colon included chrome greens, iron blues, and many others. Production ofdry colon marked a significant technological advance. In 1898, Sherwin-Williams readied another important technical milestone when it began making varnishes under in own labeL These products also required dose chemical control and by 1906, Holton directed a technical team that induded nine paint and color chemists. The experimental department then induded "a complete paint factory on a small scale devoted cxdusivdy to the making ofexperimental and sample batches ofall dasses ofpaint." During World War I, the technology of paint-making was further transformed. Before 1914, American manufacturers relied heavily on dyes and dyestuffs imported Bom Germany to make dry colors. Once fighting began, however, these 33 0007-SWP-000128464 i i II I ] The Martht-Senour Company of Chicagojoinedthe Sherwin- starts anda reputationfir producingpaints with outstanding III IP Williamsfamily in 1917, bringing colors. f hr own network offactories and \ I 0007-SWP-000128465 (')IAPTI'.R 1: Oj v k r in c rill- tlAR 111 chemicals were subject to embargo, and American chemical companies and paint-makers scrambled to supply their own requirements. The imported dyes were derived From coal tar, and their production demanded a high level ofsophistication in chemistry and chemical engineering. With Coctinghams blessing, Sherwin-Williams established a Chemical Products Department staffed by organic chemists, including Nathan E. van Stone and several other chemists recruited from abroad. After "Very exhaustive research work," the company, in 1915. "developed a complete line of intermediates and dyes for color making equal in every respect to the previously imported material.'' During the war, Sherwin-Williams also built a plant to make lithopone, an inorganic white pigment, and supplied organic chemicals to the textile industry. Between 1900 and 1919, Sherwin-Williams revenues soared from S2.3 million to 134.2 million. This performance reflected both the booming growth of the economy and Cottingham's relentless drive to enlarge the business. During the war, for example, the company not only supplied huge amounts of coatings for ships and military purposes, but it also extended the range ofits commercial businesses. Between 1911 and 1914, Sherwin-Williams opened its first retail stores carrying the company name outside Cleveland, in San Antonio, New York, Pittsburgh, Peoria, and Fort Worth. These stores were nor designed to compete with wholesale dealers but rather to support diem by serving as a source of inventory and a testing-site for new ideas and techniques in merchandising. Sherwin-Williams also completed two significant acquisitions during World Wax I. In 1917, it purchased the Martin-Senour Company ofChicago, a wellknown maker of premium quality paints. Two years later, Sherwin-Williams acquired Hemingway Be Company, a Bound Brook, New Jersey-based chemical maker. All of the companies Sherwin-Williams purchased continued to operate as independent subsidiaries, each with its own brands and lines of products; its own research, manufacturing, and sales organizations; and its own distribution outlets. At the close of World War I, Sherwin-Williams was a company remark ably changed From its early decades. It now supplied a enormous variety ofcoatings and chemicals from factories throughout the United States and Canada, and in England. It was a giant manufacturing corporation, functionally-organized and vertically integrated from extraction of raw materials through to final distribution ofproducts to consumers. With sales of more than *34 million, it was also a vast enterprise char was making good on its promise to cover the earth. 35 0007-SWP-000128466 0007-SWP-000128467