George Eastman is mainly remembered as the father of Kodak, seller of cheap cameras and the film-stock you use for your holiday snaps. Yet I am aware that many adults reading this will only be dimly aware of the days when you had to get your photos developed. The ability to do that, however, was a huge step forward. Who knows what Eastman would have made of the iPhone and Instagram.
George Eastman was born in upstate New York in 1854 and his father died when he was still at school. This meant leaving at 14, to get a job at an insurance company, but at the same time he studied accounting at home, with the hope of getting a better paid job; which he did.
In 1878, while working at the Rochester Savings Bank, he was introduced to photography, buying a load of then state-of-the-art equipment and learning how to use it. The big problem he saw was the need to develop images quickly, while the emulsion on the photographic plate was wet. His genius was to take a suggestion of using a dry, gelatine emulsion and find a way to make it work. In 880, he patented this innovation and one other: a machine to mass produce dry plates.
Eastman gave up his job at the bank and, with a new partner, George Strong, he founded The Eastman Dry Plate and Film Company in 1884. Eight years later, this was to be renamed The Eastman Kodak Company. In the time until his death, in 1932, Eastman proved himself a pioneer in six areas of management (at least), as well as a massive donor to academic, cultural and medical institutions across the US and in Europe.
In the final years of his life, Eastman suffered agonising pain from a spinal disorder that left him inactive and increasingly depressed. In March 1932, he committed suicide with a single gunshot through his heart. He left a short message: ‘My work is done – Why wait? GE.’
Six Pioneering Principles
1. Democratising Technology
When he took up photography, it was an expensive and complex niche pastime, that required much equipment and many skills. Eastman saw the potential to make it easier and less expensive. He took a new technology and, throughout its life, was actively involved in its maturation. Eastman wanted to ‘make the camera as convenient as the pencil’.
2. Crisis Management
Early on, some of the dry plates Eastman distributed were faulty. Without skipping a beat, he recalled everything and replaced them, using up all of his new business’s financial reserves. He recognised the value of reputation above all else:
‘Making good on those plates took our last dollar. But what we had left was more important – reputation’
3. Humanistic Management
At around the time when Frederick Winslow Taylor wanted to apply the principles of science to management, to create scientific management, Eastman took a different tack. It was a tack that would not become mainstream until Elton Mayo effectively knocked Scientific Management over and replaced it, in the 1930s, with Humanistic Management. In 1899, he started distributing a ‘wage dividend’ to all his workers, rewarding them all for their efforts in proportion to the dividend paid on the company’s shares. In 1919, he went further, handing a third of the company’s assets to his employees, and instituting life insurance, a disability benefit scheme, and a retirement plan.
4. Brand Recognition
The name Kodak is a made-up work – not a contraction, a translation or an acronym. It just sounded good to Eastman, who thought the K sound was strong (many English language comedians will also say that the K sound sounds funny – but not as funny as Q). He also chose the distinctive yellow and red colours of the logo. And the cherry on the cake was an innovative slogan, ‘you push the button, we do the rest’ that promised a new level of simplicity.
5. ‘Trust us’ marketing
That slogan is the basis of a style of marketing that is now commonplace: you can trust us, we’ll take care of it.
- ‘Don’t leave home without it’
- ‘If only everything in life was as reliable as a…
- ‘You give us 22 minutes, we’ll give you the world’
- ‘It does what it says on the tin’
You identify the brands.
6. Black-box Service Offering
No longer did people need to understand the equipment they were using. To take a photo, you needed a simple camera and a roll of film. Technologists would sort out the optics and the chemistry for you. We now live in a world where everyone from politicians to crazed loonies derides aspects of science, without stopping for a moment to wonder how a mobile phone can possibly make a voice and visual link to somebody thousands of miles away, access a billion articles, take still and moving photos, as well as add up your shopping basket, store your shopping list and ring an alarm when it is time to go.