Historical Patterns in Enterprise Ways of Working: Key Lessons from Industrial Revolutions Past

In a compelling keynote address at the 2024 Enterprise Technology Leadership Summit, Jon Smart, former head of ways of working at Barclays and author of Sooner, Safer, Happier, revealed surprising parallels between historical management innovations and modern enterprise challenges. Drawing from extensive research spanning nearly two centuries of industrial evolution, Smart unveiled three critical patterns that continue to shape—and challenge—organizational effectiveness today.

Smart’s presentation, based on his analysis of over 60 historical publications dating from 1776 to 1950, highlighted how modern organizations repeatedly struggle with lessons that were first learned during previous technological revolutions. His research, part of an upcoming book on the centuries-long evolution of working methods, demonstrates that despite technological advancement, core management principles remain remarkably consistent across eras.

The Cyclical Nature of Innovation

Smart began by contextualizing his findings within Carlotta Perez’s framework of technological revolutions, which identifies five major technological waves starting from 1771. Each wave, from the first industrial revolution through the current digital age, follows a similar pattern: initial investment and speculation, followed by a recession, and ultimately leading to new management innovations.

These management innovations have evolved from factory systems in the 1770s through middle management in the railway era, scientific management in the steel age, and Fordism/Toyota Production System in the mass production era, to today’s agile and lean methodologies. Smart emphasized that modern organizations often operate with structures and mindsets that originated several technological revolutions ago, particularly in their approach to role-based silos and project management.

Three Critical Patterns

The heart of Smart’s presentation focused on three fundamental patterns that organizations consistently need to relearn:

1. The Data Feedback Loop

Drawing from the example of Daniel McCallum, who created the world’s first organizational chart in 1855, Smart emphasized the importance of clear responsibilities, delegated autonomy, and rapid feedback systems. McCallum’s innovative approach at the New York and Erie Railroad included daily reports and transparent performance metrics—practices that Smart argues are still underutilized in modern enterprises.

Smart advocated for measuring “better value, sooner, safer, happier” through metrics encompassing quality, value delivery time, throughput, flow efficiency, and continuous compliance. He stressed that these measurements should be treated as organizational metrics rather than purely technical ones.

2. Continuous Improvement

Through the example of Andrew Carnegie, Smart illustrated how relentless focus on improvement drove unprecedented business success. Carnegie’s approach to steel production, which included hiring scientific expertise and optimizing end-to-end flow, led to his company becoming the world’s largest and most profitable steel producer within just 15 years.

Smart pointed out that despite this historical evidence of success, few modern organizations effectively incentivize continuous improvement. He cited Charles Sorenson’s work at Ford, where weekend experimentation led to the moving assembly line, as another example of how dedicated improvement initiatives can dramatically enhance productivity.

3. Humanity and Respect

Perhaps the most surprising pattern Smart uncovered was the historical emphasis on human dignity and autonomy. He highlighted Henry Gantt’s critique of autocratic management methods—an ironic revelation given the modern use of Gantt charts as rigid planning tools. Smart also shared insights from Kōnosuke Matsushita, founder of Panasonic, who, at age 88, criticized Western firms for following the Taylor model too rigidly, emphasizing instead the importance of mobilizing intelligence throughout the organization.

Modern Implications

Smart concluded that these historical patterns have direct relevance for modern enterprise leaders. He advocates for:

• Implementing comprehensive data feedback systems that go beyond technical metrics to measure organizational effectiveness.
• Creating explicit mechanisms and incentives for continuous improvement rather than allowing teams to remain “busy being busy.”
• Nurturing humane ways of working through long-lived multidisciplinary teams, high alignment with OKRs, and enabling leadership stances.

The presentation revealed an interconnected network of historical figures influencing each other’s thinking about management and organizational effectiveness. Smart’s research uncovered previously unrecognized connections between industrial-era innovators like McCallum, Carnegie, Thurston, and Gantt, suggesting that management innovation has always been a collaborative endeavor.

For modern enterprise leaders, the message is clear: while technology continues to evolve, the fundamental patterns of organizational success remain consistent. Smart’s research suggests that rather than constantly seeking new management innovations, organizations might benefit more from properly implementing these time-tested principles of data-driven feedback, continuous improvement, and human-centered leadership.

As enterprises continue to navigate the digital age, Smart’s insights provide a valuable historical perspective on the persistent challenges of organizational effectiveness. By understanding and applying these historical patterns, modern leaders can avoid repeatedly relearning painful lessons and instead focus on building upon the wisdom of past innovations.

You can watch Smart’s full presentation in the IT Revolution Video Library here.

- About The Authors

IT Revolution

Trusted by technology leaders worldwide. Since publishing The Phoenix Project in 2013, and launching DevOps Enterprise Summit in 2014, we’ve been assembling guidance from industry experts and top practitioners.

Follow IT Revolution on Social Media

• 
• 
• 

Jon Smart

Jon is co-founder and CEO of Sooner Safer Happier. Jon is a business agility practitioner, thought leader, and coach. Jon has been an agile and lean practitioner since the early 1990s. Jon helps large organizations deliver better value sooner, safer and happier through better ways of working. He is the lead author of the award-winning and bestselling Sooner Safer Happier: Patterns and Antipatterns for Business Agility.

Follow Jon on Social Media

• 
•