Knowledge of history can make you top of the business class

KNOWLEDGE of history produces better, more skilful and well-rounded business people, with a firmer grasp of the big picture.

A KNOWLEDGE of history produces better, more skilful and well-rounded businesspeople, who are likelier to bring a big picture and mature perspective to the ­issues they face. There is much that can be learned from history to lift business productivity.

For decades British business has hired graduates and executives who do not have traditional backgrounds in fields such as engineering, accounting, law and business management — but rather, in areas such as the arts, history and philosophy.

The emphasis has been on ­finding people with good degrees, with a sound intellect, who can then be taught the business.

The number of history graduates in top business positions is remarkable. Bob Reid, who headed Shell’s global downstream oil operations — a highly technical area — has a history degree from St Andrews University.

Brian Moynihan, chief executive of Bank of America, the second biggest bank in the US, is a Brown University history graduate. Former Hewlett-Packard chief Carly Fiorina, American Express boss Ken Chenault and IBM chief executive Sam Palmisano also are history graduates.

MBA courses now emphasise the need for executives to have a broader perspective and to think beyond the bottom line. Critics say recent business graduates are trained to solve single problems but often miss the big picture.

History provides a broad viewpoint that adds a macro perspective to a businessperson’s skill base. Historic examples also provide excellent case studies in how to respond to diverse issues.

The victor of Waterloo, Arthur Wellesley, the Duke of Wellington, said the secret of military success was “attention to detail”. Persistent scrupulousness is vital for continuing business success.

Abraham Lincoln’s two-­minute Gettysburg Address is an immaculate example of concise com­munications.

Executives should motivate and arouse by their choice of crisp, written and oral communications. People want to be inspired.

Charles Rolls and Henry Royce had vastly different but complementary skills, producing a business team that founded Rolls-Royce. Look to build teams where each member is different.

Empress Maria Theresa of Austria and her “love of the why of things” showed an inquiring mind.

The adverb why — meaning “for what reason” — is not a declaration of stupidity but a prophylactic against corporate groupthink where hearty, mutually agreed positions on issues can lead to lemming-like outcomes.

As with Bismarck and his brooding, team members should be encouraged to reflect constantly on the business matters before them. New and better ways of doing things can then rise to the surface, be reviewed and potentially implemented.

Napoleon’s maxim to his generals against “forming a picture” is relevant as business conditions are always fluid. Inflexibility in the face of constantly variable markets invites pitfalls.

Executives must not assume success in one venture guarantees victory in all others. Ferdinand de Lesseps was acclaimed over the Suez Canal, but his involvement in the Panama Canal was a disaster.

History is replete with charismatic figures who inspired loyalty, commitment and exceptional performance. Businesspeople should work on their charisma.

The great figures of history were dynamos. Winston Churchill’s wartime motto of “Action this day” and BHP’s Essington Lewis’s desk sign “I am work” represent a philosophy of continuous output, which should be at the heart of all high-achieving, peak productivity businesses.

Richard Craig advises on learning from history at historywow.com/business.