Lincoln Electric Company in Cleveland, Ohio, manufactures arc welding equipment. Lincoln has the highest paid workers in this extremely competitive market, and it is protected neither by patents nor by price supports. In spite of this, Lincoln Electric controls 40% of the arc welding market. How is this possible? Lincoln Electric outperforms its competitors in both quality and productivity. By way of comparison, Lincoln Electric has sales in excess of $167,000 per employee, while the industry average is $70,000 per employee.

This is accomplished by applying, in the age of high technology, the following leadership principles set forth by James F. Lincoln in 1895:

. Viewing people as the company’s most valuable asset

. Practicing Christian ethics

. Making decisions based on principles

. Observing simplicity in all things

. Competing

. Focusing on the customer 

QUESTION

Compare these principles with the leadership principles explained in this chapter. How are they similar or different?