Big Brown - Greg Niemann - E-Book

Big Brown E-Book

Greg Niemann

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Beschreibung

Although its brown vans are on every block and its delivery service reaches more than 200 countries, UPS is among the world's most underestimated and misunderstood companies. For the first time, a UPS "lifer" tells the behind-the-scenes story of how a small messenger service became a business giant. Big Brown reveals the remarkable 100-year history of UPS and the life of its founder Jim Casey--one of the greatest unknown capitalists of the twentieth century. Casey pursued a Spartan business philosophy that emphasized military discipline, drab uniforms, and reliability over flash--a model that is still reflected in UPS culture today. Big Brown examines all the seeming paradoxes about UPS: from its traditional management style and strict policies coupled with high employee loyalty and strong labor relations; from its historical "anti-marketing" bias (why brown?) to its sterling brand loyalty and reputation for quality.

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Veröffentlichungsjahr: 2010

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Table of Contents
Title Page
Copyright Page
Dedication
Introduction
Chapter 1 - THE CULT OF THE UPS DRIVER
The Mystique
The Rigor
The Brawn
The Goods
The Uniform
The Service
Chapter 2 - THE GREATEST AMERICAN CAPITALIST YOU’VE NEVER HEARD OF
Unflagging Concentration
Pioneer in People Development
Thrift and Humility
Deliberation, Not Boldness
A Life Without Distractions
The Stickler
Good Values Were in His Blood
Chapter 3 - BIRTH OF A DELIVERY SERVICE
The Emerald City
Klondike Fever!
An Eager Child Laborer
Tales of the Messenger Trade
Lessons in Partnership
Boom Town Messengers
Forerunner to UPS
Chapter 4 - THE FIRST BIG BROWN
An Environment for Opportunity
Outrunning the Competition
Partnering Leads to Growth
Establishing a Fleet
Flux and Triumph
Chapter 5 - DETERMINED MEN CAN DO ANYTHING
New City, New Name
The Most Roaring Metropolis of the Twenties
Saturating the Pacific Coast
Unionization
Tragedy Hits the Partnership
Chapter 6 - JOB FOR A LIFETIME
Profit Sharing
Management Incentive Plan
UPS Policy Book
Decentralization
Informality
UPS Benefits
Publications, Awards, and Communication
Promotion from Within
Job Commitment
Chapter 7 - GOING NATIONAL
Spoils of War
A Formidable Obstacle
A New Horizon
Changing of the Guard
Unworthy Opponent
Meeting the Demand
Euphoric States
The Golden Link
Chapter 8 - ADVANCING SOCIAL RESPONSIBILITY
Determined People
Education, UPS Style
Brown Is the New Green
Do Unto Others
Chapter 9 - THE WORLD’S NINTH-LARGEST AIRLINE
Deal Worth Millions
A Shocking Death to Absorb
Blue Label Air
Then FedEx Happened
Starting an Airline
Worldport in Louisville
Chapter 10 - BROWN AROUND THE GLOBE
A Lesson in German
End of an Era
Beyond Germany
The Chinese Dragon
A World Upside Down
Chapter 11 - A LEADER IN LOGISTICS
The Decision to Go Public
The Initial Public Offering
Package Flow
Logistics
Supply Chain Management—Enabling World Commerce
Chapter 12 - THE LEGACY OF JIM CASEY
Humility in the Twenty-First Century
Spreading the Wealth
Integrity
Politics
Respect for the Individual and Decentralization
Service
Core Values and Progress
Appendix A - UPS Glossary of Terms
Appendix B - Fact Sheet of UPS Operations
Bibliography
Acknowledgments
About the Author
Index
Greg Niemann
Copyright © 2007 by Greg Niemann
Published by Jossey-Bass A Wiley Imprint 989 Market Street, San Francisco, CA 94103-1741 www.josseybass.com
No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of the publisher, or authorization through payment of the appropriate per-copy fee to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400, fax 978-646-8600, or on the Web at www.copyright.com. Requests to the publisher for permission should be addressed to the Permissions Department, John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, 201-748-6011, fax 201-748-6008, or online at www.wiley.com/go/permissions.
Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.
Readers should be aware that Internet Web sites offered as citations and/or sources for further information may have changed or disappeared between the time this was written and when it is read.
Jossey-Bass books and products are available through most bookstores. To contact Jossey-Bass directly call our Customer Care Department within the U.S. at 800-956-7739, outside the U.S. at 317-572-3986, or fax 317-572-4002.
Jossey-Bass also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books.
Library of Congress Cataloging-in-Publication Data
Niemann, Greg, 1939-
Big Brown : the untold story of UPS / by Greg Niemann.
p. cm.
Includes bibliographical references and index.
ISBN-13: 978-0-7879-9402-0 (cloth)
1. United Parcel Service. 2. Express service—United States. I. Title.
HE5903.U545N54 2007
388.3’243-dc22
2006037903
HB Printing
This book is dedicated to my UPS partners everywhere: past, present, and future.
A percentage of every book sold will go to the Casey Eye Institute (named after James and George Casey) in Portland, Oregon.
Introduction
UPS was half a century old in 1957. In June of that year, I was a seventeen-year-old Californian right out of high school and had already secured morning employment. Still, I complained to a neighbor who always wore a brown uniform that I needed an afternoon job too.
“Why don’t you go down to U.P.?” he said.
“Union Pacific?” I queried.
“No, United Parcel. They always need guys to load and unload in the afternoons.”
So in June, I became a UPSer, even though I wouldn’t be eighteen until July. “Close enough,” they said, and I was assigned to load the Arcadia trailer at the old 9th Street Sort in downtown Los Angeles, starting at $1.62 an hour. After a contractual increase and a promotion to router (sorter), I made $2.05 an hour. This was excellent pay at the time, and among my friends, I was the first to break the $2 barrier, making way more than any of them.
In August, the company gave us free cake and pamphlets commemorating the company’s fiftieth anniversary. In December we moved into the new state-of-the-art Olympic facility next door, where men in suits were always around checking things out. Another UPSer gave me the heads-up that one of them was company founder Jim Casey.
I sorted for UPS and attended a community college, but quit the company in January 1958, after which I entered the U.S. Army. As soon as I returned to Los Angeles in late 1960, I headed for UPS. By then I was twenty-one, and they hired me as a seasonal driver. On January 17, 1961, I was called back to join Hollywood Center as a regular UPS driver.
From the very beginning, I had heard stories about the company’s tireless founder, the guy who’d been pointed out to me a couple of years before. He was a living legend. Jim Casey, the son of Irish immigrants, working from the age of eleven to support a family of five. In 1907, in a basement beneath a Seattle saloon, he conceived the American Messenger Company, which eventually became United Parcel Service.
I drove for five years and two weeks, just barely enough time to get my gold UPS watch for five years’ safe driving. In 1966, I entered management and began to edit the local company publication. All the stories I’d heard about the company’s origins and history took on new clarity as I met and got closer to the great men who were leading UPS into new territories and increasingly better service, great men including Jim Casey. Though retired and living in New York, he was still a presence. After I got promoted to the region staff, I was fortunate enough to meet him on numerous occasions. His unwavering insistence on strong values kept UPS and its employees on course.
Much later, when I was finishing my career at UPS in the 1990s, books about big American companies and legendary American entrepreneurs were coming out in droves. Yet the story of our incredible company remained untold. UPS—Big Brown—was by then well known and yet a mystery.
I never planned to do a book on UPS, though in my retirement I had written two books on Baja California. A friend, Shirley Miller, who had been married to Jim Casey’s nephew, suggested back in 1999 that of anyone, I should be the person to write the UPS story. I mulled it over and realized that the company’s centennial loomed in the distance. It’s been on my mind ever since, even though I wrote a book about Palm Springs in the meantime.
It happened one step at a time, getting acquainted with Paul Casey and other members of the family and convincing them of my honorable objectives and purpose. It meant trips to Seattle, Washington, and to Candelaria and Goldfield in Nevada. Even in Ireland, I looked up the Casey family ancestral home.
I reestablished contact with numerous UPS retirees through e-mail. I dug up all my old annual reports, old company publications, and any piece of paper that had brown on it. I learned to research on the Internet and delighted in several “ah-ha” moments. As my manuscript shifted from a primarily historical narrative to a more all-encompassing story, I talked to drivers and current managers.
Big Brown: The Untold Story of UPS will be the first business biography written regarding this elusive yet highly successful corporation. I’m proud of these pages—an epic snapshot of American business and culture over the past hundred years—as I’m proud of having worked for such a great company.
You’ll read how United Parcel Service grew on the heels of the robber barons and the Wild West gold rush euphoria, by providing delivery service for department stores, then how it evolved into a common carrier. Led by determined men, the company expanded into new cities and states against the background of the Roaring Twenties, the Depression, and the rise of the labor movement. The book shows how the delivery business became “Big Brown” as it burgeoned across our continent through World War II, the postwar suburban years, and the civil rights unrest.
Today, UPS grapples with the need to conserve energy sources. It works to alleviate environmental problems. It maximizes the use of technology in its now-global presence with stunning innovations in package sorting, interstate commerce, and finally, international commerce with its customs brokering, freight forwarding, and supply-chain solutions. UPS no longer just delivers; it now enables global commerce. And Jim Casey remains the center of the UPS universe.
The rise of corporatism, reflected in present lobbyist influence, has pulled the shipping giant into Washington, D.C., in its drive to maintain what has always been the company’s most pressing agenda—outstanding service for its customers. UPS’s commitment to keep Americans working with insourcing, its largely employee-owned stock, and the means by which UPS’s century-old business model continues to perform in today’s global economy are just a few of the book’s fascinating themes.
As I put the finishing touches on this book—which actually represents a lifetime of work, not just for me, but for all UPSers—Jim Casey’s dream of excellence and unstoppable determination enriches the spirit that now serves nearly 8 million people daily. UPS still upholds Casey’s decades-old corporate values to the tune of huge profits, $3.87 billion last year. How could the reading public respond other than marvel over how this occurred? How could the example of UPS’s cautious and continual rise not enormously benefit other businesspeople? Marveling and enormous benefit are my hopes behind Big Brown.
Note: A lot of the background research for Big Brown: The Untold UPS Story is available for interested readers. Several supplemental stories about UPS are printed on the author’s Web site. For this more detailed accounting and more historical information, please go to www.gregniemann.com.
1
THE CULT OF THE UPS DRIVER
In every community of America and in more than two hundred countries abroad, brown-garbed drivers in brown vehicles delivering brown packages are a welcome feature of everyday life. They represent the public face of a company that has changed the world, delivery by delivery, for a hundred years.
UPS drivers are strong. They’re dependable. They’re polite. They’re determined. And they nearly always bear an object of desire! No wonder UPS drivers capture our imagination. They meet expectations more than 10,000 times a minute, every day, worldwide. Talk about delivering the goods!
In a world of dashed hopes and diminishing returns, these dutiful UPS drivers are refreshing anomalies. Some would say they are anachronisms. Diligence, dedication, job commitment, and polite-ness? Hardly the stuff we experience in most service industries today. Yet these old-fashioned values support UPS’s impressive century-old success and by no small measure inspire the UPS drivers’ cult status.

The Mystique

The drivers, a majority of whom are male, all aged at least twenty-one, are charming but elusive. An irresistible combination. The UPS driver mystique takes effect swiftly. There’s the eye contact. The good manners. Maybe the driver gives your pet a treat. Maybe he even endears himself to your children. Then whoosh. After the fleeting exchange, you stand there, holding the package, remembering the sincerity and consideration... and efficient vigor. Therein lies the UPS mystique.

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