Phillip McFarren is an experienced journalist and corporate leader with an amusing history of investing decades in the media and the steel industry. His professional journey started as an investigative reporter, where he improved his skills in discovering truths and encouraging accountability in government and business. This basis laid the groundwork for his advanced role at U.S. Steel, where he dealt with tough corporate challenges and built powerful bonds with key political characters.
Embedded Files
Phillip McFarren discusses his latest book,
“The Hidden Challenges of Big Steel".
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Lost — 25 Years of Trust
Lost — 25 Years of Trust
The ability to overcome the "impossible" has long been a hallmark of American democracy and free enterprise. Few stories exemplify that spirit better than the history of Andrew Carnegie, whose leadership helped create what became United States Steel Corporation.
Robert Tyson, former chairman of U.S. Steel's Corporate Finance Committee, began his career in New York City during the era when Carnegie had relocated there from Pennsylvania and built a residence for his wife. Carnegie frequently worked with financier J. P. Morgan, whose influence over much of the nation's railroad network helped shape the American steel industry.
When I joined U.S. Steel, Tyson made a special trip to Chicago for a dinner meeting at the Union League Club, where we met for the first time. During our conversation, he concluded that the company needed to change the way it handled relationships with local governments.
After a frank discussion criticizing the company's existing policy, I challenged him.
"If you think enough of me to hire me," I said, "you should allow me to address these problems immediately without first obtaining clearance from the corporate public relations staff."
Tyson considered the proposal and replied, "Young man, we're going to give that a try."
For the next 25 years, that directive became accepted company policy in carrying out my responsibilities. It gave me the authority to work directly with state and local officials and resolve issues without unnecessary corporate delays. My recently released book, The Hidden Challenges of Big Steel, describes many of the successful results that stemmed from this significant change in corporate policy.
Looking back, Tyson's decision reflected the management philosophy that had characterized U.S. Steel during its formative years, when trust and confidence were considered essential ingredients for success.
By the end of my 25-year career, however, that philosophy had changed. The chairman of U.S. Steel negotiated my buyout as the company closed regional offices, including mine in Harrisburg, Pennsylvania. The move was one of several cost-cutting efforts that also had the effect of further distancing corporate leadership from state government officials.
One final incident illustrated how dramatically the corporate culture had shifted.
When I requested a copy of my personnel file, the company's chief personnel director handed me a folder in the presence of the chairman. Inside was a single sheet of paper containing nothing more than my name.
"Mr. McFarren," he said, "as of today, that is your entire personnel file."
If that statement was accurate, it meant that my entire 25-year history with U.S. Steel had effectively been erased from the company's official records.
Additional details about these experiences are presented in The Hidden Challenges of Big Steel — details at phillipmcfarren.com.
~Phillip McFarren
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