Harold Geneen
Encyclopedia
Harold "Hal" Sydney Geneen (January 22, 1910 — November 21, 1997), was an American
businessman most famous for serving as president of the ITT Corporation
.
, Hampshire
, England
and migrated to the United States
as an infant with his parents. He studied accounting at New York University
.
Between 1956–1959 he was Senior Vice President of Raytheon
, developing his management structure, allowing large degree of freedom for divisions while maintaining a high degree of financial and other accountability.
From 1959–1977 he was the president and CEO of International Telephone and Telegraph Corp.
(ITT). He grew the company from a medium-sized business with $765 million sales in 1961 into multinational conglomerate with $17 billion sales in 1970. He extended its interests from manufacturing of telegraph equipment into insurance
, hotels, real estate
management and other areas. Under Geneen's management, ITT became the archetypal modern multinational conglomerate. ITT grew primarily through a series of approximately 350 acquisitions and mergers in 80 countries. Some of the largest of these were Hartford Fire Insurance Company
(1970) and Sheraton Hotels.
ITT had many overseas interests. In Brazil, it owned the telephone company. Washington feared that president João Goulart
would nationalize it. Geneen was friends with the Director of Central Intelligence
John McCone
. The CIA
performed psyops against Goulart, performed character assassination
, pumped money into opposition groups, and enlisted the help of the Agency for International Development and the AFL-CIO
. The 1964 Brazilian coup d'état exiled Goulart and the military dictatorship of Humberto de Alencar Castelo Branco
took over. McCone went to work for ITT a few years later. The dictatorship lasted until 1985.
ITT also had some $200 million-worth of investments in Chile
. Under Geneen's leadership, ITT funneled $350,000 to Allende
's opponent, Jorge Alessandri
. When Allende
won the presidential election, ITT offered the CIA $1,000,000 to defeat Allende
, though the offer was rejected.
In 1977 Geneen retired as CEO and president of ITT, staying on as Chairman of the Board until 1979. His successors, starting with Rand Araskog
, steadily sold off parts of the business.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
businessman most famous for serving as president of the ITT Corporation
ITT Corporation
ITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...
.
Biography
Geneen was born on January 22, 1910 in BournemouthBournemouth
Bournemouth is a large coastal resort town in the ceremonial county of Dorset, England. According to the 2001 Census the town has a population of 163,444, making it the largest settlement in Dorset. It is also the largest settlement between Southampton and Plymouth...
, Hampshire
Hampshire
Hampshire is a county on the southern coast of England in the United Kingdom. The county town of Hampshire is Winchester, a historic cathedral city that was once the capital of England. Hampshire is notable for housing the original birthplaces of the Royal Navy, British Army, and Royal Air Force...
, England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
and migrated to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
as an infant with his parents. He studied accounting at New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...
.
Between 1956–1959 he was Senior Vice President of Raytheon
Raytheon
Raytheon Company is a major American defense contractor and industrial corporation with core manufacturing concentrations in weapons and military and commercial electronics. It was previously involved in corporate and special-mission aircraft until early 2007...
, developing his management structure, allowing large degree of freedom for divisions while maintaining a high degree of financial and other accountability.
From 1959–1977 he was the president and CEO of International Telephone and Telegraph Corp.
ITT Corporation
ITT Corporation is a global diversified manufacturing company based in the United States. ITT participates in global markets including water and fluids management, defense and security, and motion and flow control...
(ITT). He grew the company from a medium-sized business with $765 million sales in 1961 into multinational conglomerate with $17 billion sales in 1970. He extended its interests from manufacturing of telegraph equipment into insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, hotels, real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
management and other areas. Under Geneen's management, ITT became the archetypal modern multinational conglomerate. ITT grew primarily through a series of approximately 350 acquisitions and mergers in 80 countries. Some of the largest of these were Hartford Fire Insurance Company
The Hartford
The Hartford Financial Services Group, Inc. , usually known as The Hartford, is a Fortune 500 company and one of America’s largest investment and insurance companies...
(1970) and Sheraton Hotels.
ITT had many overseas interests. In Brazil, it owned the telephone company. Washington feared that president João Goulart
João Goulart
João Belchior Marques Goulart was a Brazilian politician and the 24th President of Brazil until a military coup d'état deposed him on April 1, 1964. He is considered to have been the last left-wing President of the country until Luiz Inácio Lula da Silva took office in 2003.-Name:João Goulart is...
would nationalize it. Geneen was friends with the Director of Central Intelligence
Director of Central Intelligence
The Office of United States Director of Central Intelligence was the head of the United States Central Intelligence Agency, the principal intelligence advisor to the President and the National Security Council, and the coordinator of intelligence activities among and between the various United...
John McCone
John McCone
John Alexander McCone was an American businessman and politician who served as Director of Central Intelligence during the height of the Cold War.- Background :...
. The CIA
Central Intelligence Agency
The Central Intelligence Agency is a civilian intelligence agency of the United States government. It is an executive agency and reports directly to the Director of National Intelligence, responsible for providing national security intelligence assessment to senior United States policymakers...
performed psyops against Goulart, performed character assassination
Character assassination
Character assassination is an attempt to tarnish a person's reputation. It may involve exaggeration, misleading half-truths, or manipulation of facts to present an untrue picture of the targeted person...
, pumped money into opposition groups, and enlisted the help of the Agency for International Development and the AFL-CIO
AFL-CIO
The American Federation of Labor and Congress of Industrial Organizations, commonly AFL–CIO, is a national trade union center, the largest federation of unions in the United States, made up of 56 national and international unions, together representing more than 11 million workers...
. The 1964 Brazilian coup d'état exiled Goulart and the military dictatorship of Humberto de Alencar Castelo Branco
Humberto de Alencar Castelo Branco
Marshal Humberto de Alencar Castelo Branco was a Brazilian military leader and politician.He was President of Brazil, as a military dictator, after the 1964 coup d'etat...
took over. McCone went to work for ITT a few years later. The dictatorship lasted until 1985.
ITT also had some $200 million-worth of investments in Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
. Under Geneen's leadership, ITT funneled $350,000 to Allende
Salvador Allende
Salvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....
's opponent, Jorge Alessandri
Jorge Alessandri
Jorge Alessandri Rodríguez was the 27th President of Chile from 1958 to 1964, and was the candidate of the Chilean right in the crucial presidential election of 1970...
. When Allende
Salvador Allende
Salvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....
won the presidential election, ITT offered the CIA $1,000,000 to defeat Allende
Salvador Allende
Salvador Allende Gossens was a Chilean physician and politician who is generally considered the first democratically elected Marxist to become president of a country in Latin America....
, though the offer was rejected.
In 1977 Geneen retired as CEO and president of ITT, staying on as Chairman of the Board until 1979. His successors, starting with Rand Araskog
Rand Araskog
Rand Vincent Araskog is a prominent U.S. businessman and an ex-CEO of ITT Corporation. Araskog is of Scandinavian origin; his grandfather emigrated from Sweden to Minnesota....
, steadily sold off parts of the business.
Quotes
- The worst disease which can afflict executives in their work is not, as popularly supposed, alcoholism; it's egotism.
- You can't run a business or anything else on a theory.
- Leadership is practiced not so much in words as in attitude and in actions.
- The only unforgivable sin in business is to run out of cash.
- In business, words are words; explanations are explanations, promises are promises, but only performance is reality.
- In the business world, everyone is paid in two coins: Cash and Experience. Take the experience first. The cash will come later.
- Better a good decision quickly than the best decision too late.
- Telephones, hotels, insurance—it's all the same. If you know the numbers inside out, you know the company inside out.
- Leadership cannot really be taught, it can only be learned.