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John Henry PattersonBusinessman, founder of the National Cash Register Company
Date of Birth: 13.12.1844
Country:  USA |
Content:
Biography of John Henry Patterson
John Henry Patterson, a businessman and the founder of the National Cash Register Company (NCR), was born in 1844 in Dayton, Ohio, to a family of farmers. After graduating from Dartmouth College, John entered the coal business. In 1884, he managed to acquire a controlling stake in the Ritty company from its owner, James Ritty. Interestingly, James Ritty had invented the cash register in 1879 but struggled to mass-produce and sell it. Fortunately, the company ended up in the hands of John, who, despite his youth, displayed all the signs of a talented businessman and wise investor. After the acquisition, Patterson renamed the company to NCR.
Recognizing the future potential of cash registers, Patterson believed that their use in trade would reduce losses and decrease missed profits. He understood that cash registers would play a crucial role in business and commerce in the near future. The early cash registers were entirely mechanical, but in 1906, NCR engineers invented an electric motor-operated device. Soon, the NCR factory was flooded with orders for electric cash registers, as numerous traders and entrepreneurs wanted to automate their businesses. By 1911, NCR had sold over a million cash registers, employed nearly 6,000 people, and controlled about 95% of the cash register market by 1917.
Innovations in Business
In addition to manufacturing and selling cash registers, Patterson made significant contributions to the world of business. He developed and implemented innovative sales organization methods, such as dividing the country into regions with one person responsible for sales in each region. Patterson introduced a system of quotas and points for sales agents. He also pioneered employee training in sales methods and held conventions to evaluate progress and exchange experiences. John Henry Patterson was the first to write a sales manual, which clearly outlined the fundamental principles of successful sales. He developed general principles of presentation, introduction, handling objections, closing deals, organizing sales, and controlling salespeople – the basics of successful transactions today.
Patterson believed that the most valuable asset of his company was its employees. Consequently, he aimed to provide the best working conditions for them. The NCR factory in Dayton was equipped with excellent ventilation and lighting systems, and there were bathrooms and showers for the workers. NCR was also one of the first companies to offer hot meals to its employees. Moreover, Patterson implemented a well-designed system of rewards for employees who made suggestions for improving various aspects of the company's operations. However, there were rumors that he was almost tyrannical in his management style.
Legacy
John Henry Patterson was inducted into the Junior Achievement U.S. Business Hall of Fame in 1979. He passed away on May 7, 1922, and was buried in Woodland Cemetery in Dayton. Interestingly, he did not leave his heirs a vast fortune due to his spending on social programs within his company. His son, Frederick Beck Patterson, succeeded him as the leader of the company. John Henry Patterson is often only known as a businessman, and his innovative personality is often overlooked. "To succeed in business, you have to make others see things as you see them," Patterson once said.
