Client:
Cummins Engine
Company
Project/product:
The Engine That
Could
Cummins, the world's leading producer of diesel engines
above 200 horsepower, hired us to research and write their
75th anniversary history. With business historian David B.
Sicilia, we conducted more than 100 interviews, researched
thousands of primary documents, and wrote a book that was
published by the Harvard Business School Press.
This project led to several others, including a
video based on the history and a
history-oriented annual report insert.
Excerpt:
Clessie goes to Washington
The War Production Board called a meeting of the Industrial
Liquid-Cooled Engine Advisory Committee in the second week
of January 1943. At that meeting, the assembled gasoline
and diesel engine manufacturers were told once again of the
dire need to increase engine production. They were invited
to select one of their own to serve as the WPB's
diesel-engine consultant, whose job it would be to help the
Board break existing production logjams. The group chose
[Cummins Engine Company president] Clessie L. Cummins.
"WILL HEAD U.S. DIESEL OUTPUT," read the headline in the
January 25, 1943 edition of the Columbus Evening
Republican. The accompanying article suggested that Clessie
had been chosen first because of his long experience in the
diesel field, and second because the Engine Company
recently had been awarded the Navy's prestigious "E" award,
recognizing excellence in production. "As director of
production," the article went on to say, "Mr. Cummins will
have almost unlimited power."
Clessie later recalled in his autobiography that he "went
to Washington to watch over an industry and to be watched,
in turn, by my doctor." The latter certainly was true. By
now, Clessie had experienced three serious bouts of his
inner-ear ailment, which at its worst rendered him
incapable of even standing up unassisted. (When Clessie
suffered his second attack in San Francisco, passersby
mistook him for a drunk.) But a Washington, D.C.-based
doctor who had the same affliction—and also had Cummins H
engines in his yacht—agreed to take the ailing inventor in
his care.
For public consumption, Clessie cited the "splendid
cooperation" received from the participating companies, who
helped him tremendously in his task of "scheduling
production of all diesel and gasoline engines, with the
exception of aircraft engines." Privately, he had less kind
things to say about the government. Speaking off-the-cuff
to the advisory group in October 1943, nine months after
his relocation to Washington, Clessie expressed frustration
that had been building for many months. "For the first
three months on the job as consultant I snooped around,
learning all I could. I had no desk assigned to me for
months. When someone in the Internal Combustion Branch was
absent or attending conferences, I slid into their chairs .
. . .
"The facts are indisputable," Clessie stated bluntly.
"Either you must cut schedules back to meet material, or
get us the material to meet schedule." But the WPB, which
officially was supposed to "control production and the flow
of material," was failing to do so. During a September
meeting with his increasingly disgruntled colleagues,
Clessie recommended that they collectively send a telegram
to "Engine Charlie" Wilson, the General Motors executive
who served as executive vice chairman of the WPB, "asking
him to give us a hearing."
The steps Clessie had taken to circumvent the bureaucracy
and help his industry were in many ways typical of his
approach to business: unconventional, impulsive, and
tolerant of risk. The fact that Wilson attended the October
1943 meeting and sat through Clessie's sweeping
denouncement of his Board bespeaks the importance that the
government assigned to engine production. And Clessie was
not alone. Waukesha's president J.N. Delong complained
about excessive paperwork. Hercules president Charles
Balough bristled at the implication that his company might
have exaggerated its capacity: "We have not oversold our
own capacity, but can very definitely state that our
difficulty in keeping to our schedule has been the result
of the unfavorable material situation."
In the week following this hearing, government bureaucrats
worked overtime trying to confirm or deny the comments made
by Clessie and his peers. The bureaucrats admitted the
problems of materials shortages and bad planning on the
part of the government. But they also faulted the engine
companies for doing precisely what Balough had denied they
were doing. "The present practice of industry is to accept
orders for deliveries considerably beyond any reasonable
anticipation of capacity," said one summary report.
"Evidence indicates that overloaded manufacturers are
continually accepting additional business, and that, when
such business is accepted for indefinite or unsatisfactory
delivery dates, pressure quickly develops to expedite such
orders at the expense of others."
