#81 Henry Royce Founder of RollsRoyce

In the early 20th century, Henry Royce, a man of humble origins and self-taught engineering prowess, partnered with the aristocratic and business-savvy C.S. Rolls to create Rolls-Royce, Britain's most prestigious car company. Despite their contrasting backgrounds, both men shared a relentless pursuit of excellence and a prickly disposition. Royce's dedication to quality was so intense that he worked tirelessly, even on his deathbed, sketching an adjustable shock absorber the night before he passed away. Under the management of Claude Johnson, Rolls-Royce thrived, with Royce's engineering genius complemented by Johnson's knack for publicity and organization. Royce's obsession with perfection extended to every detail, from car components to toolkits, and his work ethos permeated the company culture. The partnership's legacy endured through Rolls-Royce's reputation for unmatched quality and the company's expansion into aero engine manufacturing during World War I, a testament to Royce's innovative spirit and commitment to his craft.

• Henry Royce and C. S. Rolls had significantly different upbringings.
• C. S. Rolls was educated at Cambridge and moved in London's high society.
• Henry Royce experienced poverty and hardship, with no formal university education.
• Both Royce and Rolls shared a trait of prickliness, possibly stemming from shyness rather than arrogance.

"The historic first meeting of Henry Royce and C. S. Rolls took place on May 4, 1904. The two men could have hardly come from more different backgrounds. C. S. Rolls had been educated at Cambridge and moved comfortably in London society. Among his aristocratic and wealthy friends, Henry Royce had known poverty and hardship all his life."

This quote highlights the contrasting backgrounds of Royce and Rolls, setting the stage for their unlikely partnership.

• C. S. Rolls was engaged in selling foreign cars and desired to sell English-made cars due to a growing client demand.
• Rolls was initially reluctant to manufacture cars himself due to his lack of experience and the risks involved.
• Upon meeting Henry Royce, Rolls found the partner he had been looking for to create high-quality English cars.

"Eventually, however, I was fortunate enough to make the acquaintance of Mr. Royce, and in him I found the man I had been looking for for years."

Rolls' quote expresses his sense of fortune in meeting Royce and identifying him as the ideal business partner to fulfill his ambition of selling English cars.

• Henry Royce was passionate about engineering, dedicating his life to it.
• The night before he died, Royce sketched an adjustable shock absorber, illustrating his lifelong dedication to innovation.
• Royce's work ethic was intense, often working to the point of exhaustion.

"The night before he died, he sat up in bed and drew a sketch on the back of an envelope, which he gave to his nurse and housekeeper, telling her to see that the boys in the factory got it safely."

This quote demonstrates Royce's unwavering commitment to engineering and innovation, even on his deathbed.

• Rolls was searching for high-quality British cars to sell.
• Edmonds introduced Rolls to Royce's work, which impressed Rolls despite his initial skepticism of two-cylinder engines.
• Royce's engineering skills were evident in the smooth and silent performance of his two-cylinder car, which won Rolls over.

"He came, he rode, and was conquered."

This succinct quote encapsulates Rolls' reaction to Royce's car, leading to his decision to partner with Royce.

• Henry Royce was born into a family with a history of farming and milling but faced financial difficulties.
• Royce began working at a young age to support his family, demonstrating an early work ethic.
• Despite setbacks, such as the withdrawal of financial support from an aunt, Royce persevered and found work in engineering.

"By the time Henry Royce was born in 1863, he was in financial trouble and was forced to mortgage the mill."

This quote provides context for the financial hardships that Royce faced from an early age, shaping his character and drive.

• Royce's interest in electricity and engineering led to significant innovations in the field.
• He established F. H. Royce and Company, which started with small electrical products and grew into a successful engineering firm.
• Royce demonstrated an ability to improve upon existing technologies, a trait that would define his career.

"In the early days, I discovered and demonstrated the cause of broken wires and dynamos through the deflection of the shafts by weight and magnetism."

Royce's quote reflects his innovative approach to solving engineering problems, which contributed to his later success.

• Royce faced many challenges in his early business ventures, including financial instability and the need to work tirelessly.
• Despite moments of despair, Royce's determination and refusal to give up were central to his eventual success.
• His work ethic and ability to endure hardship were key factors in the founding and success of Rolls-Royce.

"And I remember many times our position was so precarious that it seemed hopeless to continue."

This quote from Royce reveals the depth of the challenges he faced and his resilience in overcoming them to build a successful company.

• Humans are adaptable and can thrive in various environments.
• There is a concern about how to instill drive and determination in children who do not face hardships.
• Henry Royce did not have children, but if he did, they would not have experienced his economic struggles.

"But how do you have your child have that drive and determination that may have been spawned on with the early life realization that, oh, shit, I'm in a bad spot, and if I don't get my stuff together, my life is going to go poorly."

The quote reflects on the challenge of imparting resilience and ambition to children who grow up without experiencing significant adversity. It suggests that the experience of overcoming hardships can be a powerful motivator.

• Royce's company initially prospered in the late 1880s.
• Post-war economic slump and competition with cheaper products posed a challenge.
• Royce valued quality over price and maintained high standards in his products.

"After the war, there was a general slump of trade, and then there was cheaper dynamos and cranes."

The quote highlights the economic difficulties faced by Royce's business post-war, including increased competition from cheaper alternatives, which impacted the company's prosperity.

• Royce entered the car industry by chance due to his perfectionism.
• He saw potential in the motorcar industry and aimed to improve upon existing designs.
• Royce's approach to innovation was to enhance current products rather than create entirely new ones.

"Royce turned his attention to motor cars as a potential new product for the company."

This quote signifies Royce's strategic pivot to motor cars, viewing them as a promising avenue for his company's growth and diversification.

• Royce and James Dyson both became innovators out of frustration with existing products.
• They focused on improving established markets with high-quality products.
• This approach is presented as a model for entrepreneurs to identify and exploit opportunities.

"He says there was nothing revolutionary about Royce's car. He had taken the best of current automobile design and improved on every aspect of it."

The quote encapsulates Royce's strategy of refining and perfecting existing designs to create superior products, which is a valuable lesson for entrepreneurs looking to enter and excel in a market.

• Royce's early work on motor cars involved significant development and redesigning.
• His meticulous attention to detail resulted in exceptional product quality.
• The focus on perfection and detail could be both a strength and a potential hindrance.

"He paid great attention to the smallest detail, and the result of his personal consideration to every little thing resulted in the whole assembly being of a very high standard of perfection."

This quote conveys Royce's philosophy that excellence in the smallest components leads to the overall superiority of the final product, emphasizing the importance of thoroughness in craftsmanship.

• Royce's perfectionism drove him to high standards, but also made him a demanding leader.
• He was hard on others, but even harder on himself, setting a rigorous example.
• The balance between confidence and self-criticism is crucial for personal and professional growth.

"To many, he would have seemed a hard taskmaster in those hectic days. But it is only fair to add that he drove no one harder than himself."

This quote reflects on Royce's demanding nature as a leader, but also acknowledges his equal dedication to his own work, which can be inspiring and challenging for those around him.

• Royce's commitment to quality established a strong reputation for Rolls-Royce.
• The company's reputation for quality may have benefited from the compounding effect over time.
• Royce's hands-on approach extended to designing factory buildings and influencing the company's direction.

"Quality is probably going to be the word that's most used in this podcast. It's over and over again. It's basically like the most important thing to him."

The quote underscores Royce's unwavering commitment to quality, which became synonymous with his name and the Rolls-Royce brand, illustrating its centrality to his philosophy and the company's success.

• Entrepreneurs often seek control over their products and processes.
• Royce's desire for control extended to the minutiae of factory design and product development.
• The balance between control and delegation is a recurring theme for founders and business leaders.

"Royce, though he was deeply engaged in the development of a six-cylinder car, still found time to design most of the factory buildings himself."

This quote exemplifies Royce's hands-on approach and desire for control, showing his involvement in both product development and the physical infrastructure of his company.

• Professional research is seen as a fundamental duty for entrepreneurs and practitioners of any craft.
• Detailed study and understanding of the industry, including historical and technical aspects, are essential.
• This approach is exemplified by Danny Meyer's research for his high-end barbecue restaurant.

"That is your obligation as an entrepreneur, as whatever craft you're doing, even if you're not doing it for yourself when you're not working, to also study whether you're studying the pioneers of the industry, the history of the industry."

The quote emphasizes the importance of continuous learning and research as an intrinsic part of being an entrepreneur or a professional in any field. It suggests that one should go beyond their immediate work and delve into the broader context of their industry.

• Royce's meticulous approach to manufacturing cars involved in-depth study of materials and design.
• His focus on the scientific design of car components led to the development of opinions on hot and cold rivets and other technical details.
• The analogy to the documentary "Jiro Dreams of Sushi" highlights the importance of intimate knowledge of one's craft.

"So let's go and study scientific design of the metals, of rivets... The difference between hot and cold rivets and the deficiency of both."

This quote describes Royce's attention to detail and his commitment to understanding every aspect of his product, down to the materials and methods used in its creation.

• Royce and Rolls Royce's early strategy was to focus on perfecting a single car model before diversifying.
• The Silver Ghost was the result of this strategy and became a highly successful model.
• Claude Johnson's role in marketing the Silver Ghost demonstrated the power of innovative marketing techniques in the early 1900s.

"Once he [Royce] proved that successful, then the entire organization backs him up on that. Instead of diluting his skills over three or four models, Royce could concentrate on bringing one model to perfection."

This quote outlines the strategic decision to focus on a single model, which allowed Royce to perfect the product and the company to rally behind this focused effort.

• Rolls Royce used creative marketing strategies to demonstrate the quality and reliability of the Silver Ghost.
• The demonstrations included placing a penny on the chassis and a glass of water on the bonnet to show the car's smoothness.
• A 15,000-mile nonstop drive between London and Glasgow showcased the car's reliability and resulted in minimal replacement costs.

"To prove its smoothness and lack of vibration... a penny would be placed on the end of its chassis while the engine was running, or a glass full of water placed on the bonnet while the engine was taken up to 1600 revolutions per minute and not a drop spilt."

This quote illustrates the innovative marketing techniques Rolls Royce used to physically demonstrate the superior quality of their cars to potential customers.

• Regulations in Britain, influenced by the railroad industry, impeded the development of the automotive industry.
• The Locomotive Act of 1865 and subsequent legislation introduced onerous restrictions on early motorists.
• Thomas Edison criticized British legislation for hindering the development of the motor industry.

"In Britain, development was held back by laws designed to protect a former way of life... the interest of the railway companies passed the 1865 Locomotive Act."

The quote discusses the negative impact of protectionist laws on the advancement of the automotive industry in Britain, highlighting the conflict between new technologies and established interests.

• Early motorists faced hostility from those invested in horse-drawn vehicles.
• Queen Victoria expressed her distaste for cars, reflecting the societal resistance to the new technology.
• The nascent automotive industry grappled with fundamental design questions and public skepticism.

"On more than one occasion, I've had drivers of horse-drawn vehicles... slash at me with their whips as I've passed them on the road."

This quote captures the direct hostility and resistance early motorists faced from individuals whose livelihoods were threatened by the advent of motor vehicles.

• Royce's intense work ethic led to a severe illness due to neglect of his health.
• Internal company memos revealed concerns about Royce's focus on minute details and the need for him to delegate to maximize his inventive potential.
• Royce's illness ultimately led to a shift in his working style, which proved beneficial for the company.

"Long years of overwork and neglect of the needs of his body... finally took their toll."

The quote describes the personal cost of Royce's dedication to his work, leading to a health crisis that forced a change in how he approached his work.

• The importance of maintaining control over a company is highlighted through a failed hostile takeover attempt and advice from Rolls' father.
• The value of visionary leadership and the impact of losing enthusiasm for the craft are discussed.
• The departure of talented engineers from Napier to Rolls Royce is cited as evidence of the importance of maintaining quality and passion.

"Control is essential to the peace of mind not only of the head of a business, but of the humblest employee."

This quote underscores the significance of control within a company, not just for those at the top but for all employees, as it contributes to a stable and focused work environment.

• Royce's foray into designing airplane engines during World War I was marked by the same meticulous approach he applied to car engines.
• Despite initial board resistance, Royce proceeded with the design of the Eagle engine.
• The Eagle engine exceeded expectations in power and performance, demonstrating Royce's genius.

"Royce was testing every part to destruction... So impressive were the instructions that Royce... had Royce's memos on the subject, printed and bound in a limited edition of 100 copies."

The quote highlights Royce's thorough testing process and the high regard for his detailed instructions, which were deemed valuable enough to be published as a book.

• The transcript reflects on how new technologies are met with resistance and the slow but certain progress of industries.
• It provides a perspective on the early days of the automotive and aviation industries and the challenges they faced.
• The discussion serves as a reminder of the recurring patterns of human behavior in response to innovation.

"Every time a new technology is presented, humans act the same way. A reminder that humans are silly, flawed creatures."

This quote provides a philosophical commentary on the predictable nature of human reactions to new technologies, suggesting a cyclical pattern in human behavior.

• Rolls Royce engineers documented their work meticulously to serve as a study guide for future engineers.
• Documentation provides a tangible example of engineering excellence.
• The practice is recommended for all company builders to preserve knowledge.

"rectors decide to have them printed and bound in order that the copies may be available for study and as an example, to all grades of Rolls Royce engineers, present and future."

This quote highlights the decision to document engineering work for the benefit of current and future engineers, emphasizing the value of preserving knowledge and expertise within a company.

• Founder's stories provide insights that are rare and valuable.
• There is a vast number of companies, but limited documentation on their founders' thoughts.
• The speaker expresses a desire to find and read such detailed accounts.

"I would love to get a copy of that book. I haven't looked for it. I got to see if I can try to find it. But I think this is something that everybody should do."

The speaker is expressing a personal interest in obtaining a book that documents the founder's thoughts, suggesting that such resources are not only of personal interest but also of wide educational value.

• The Rolls Royce "Bible" is a famous book that served as an engineering guide.
• It received attention from the media and praise from international engineers.
• The book exemplifies the foresight and skill of its designers.

"The book became famous. The book I was just referencing as the Rollsroyce Bible."

This quote refers to the nickname given to the book that documents the engineering achievements of Rolls Royce, indicating its significance and impact.

• Rolls Royce prioritized quality over speed, even under pressure from the government.
• Claude Johnson and Royce were willing to face imprisonment rather than compromise on quality.
• Their stance nearly led to the company being nationalized.

"Claude and Royce refused. And it says, when the Ministry of Munitions tried to force Royce to get a dozen or so firms to make their engines, the very great man Claude Johnson, took the bold stand that he would tear up every drawing and go to prison rather than to agree to risk inferior skills of other companies."

The quote demonstrates the extreme commitment to quality that Rolls Royce's leadership had, to the point of risking imprisonment rather than allowing their standards to be compromised.

• Customer feedback is important for companies.
• A driver for the French War Minister provided a glowing review of Rolls Royce cars.
• The review highlighted the cars' performance in challenging conditions.

"Both our two cars traveled without a single breakdown and always behaved perfectly."

The quote is a testament to the reliability and quality of Rolls Royce cars as conveyed through a customer's experience, emphasizing the importance of product quality in customer satisfaction.

• After WWI, Rolls Royce had to decide between manufacturing cars, planes, or both.
• They had a strong reputation with the Silver Ghost car before the war.
• The post-war period presented a unique challenge for industry strategy.

"The return of peace after four years of slaughter, the like of which have never been seen in the world before, brought the directors of Rolls Royce face to face with the need to plan the whole strategy of the company."

This quote captures the pivotal moment for Rolls Royce in deciding their post-war strategy and the challenges associated with resuming business after a significant disruption.

• Royce planned for post-war changes by designing cars with electric self-starters.
• A smaller, more affordable car was developed in response to market conditions and taxes.
• The company considered but ultimately rejected mergers with other car companies.

"Royce had already begun to work on the design of a smaller car before the end of the war."

The speaker notes Royce's foresight in adapting designs to post-war market conditions, highlighting the importance of anticipating and responding to external economic factors.

• Royce was a peerless engineer, and Johnson excelled in organizing and publicity.
• Johnson's management skills and understanding of human relationships were crucial.
• Both men were essential to the success of Rolls Royce.

"Without Johnson's organizing ability and flair for publicity, there would probably have been no company to exploit the cars and aero engines."

This quote illustrates the interdependence of Royce's engineering talent and Johnson's business acumen, showing how both skill sets were necessary for the company's success.

• Royce was a perfectionist who influenced the company culture.
• He was involved in every detail, which could be both beneficial and detrimental.
• Royce's dedication to perfection is a legacy still present in the company.

"His near fatal illness in 1911 and 1912 May, from the company's point of view, have been a blessing in disguise."

The quote reflects on how Royce's illness inadvertently benefited the company by allowing him to focus on his strengths in design, underscoring the impact of individual focus on a company's direction and success.

• Rolls Royce operated with a distributed structure in the 1920s.
• Royce made all technical decisions, often from remote locations.
• The company's design process was highly centralized under Royce's direction.

"In 1923, the control of the company was vested in three widely dispersed groups."

The speaker describes the unique organizational structure of Rolls Royce, with Royce's central role in design decisions, highlighting the early adoption of distributed work practices.

• Royce's engineering genius was recognized and celebrated.
• The partnership with C. S. Rolls allowed Royce's talents to have a global impact.
• Royce's work ethic set a high standard within the company.

"Royce was quite simply a genius. And thanks to a meeting with CS roles, the benefits of his genius were spread and shared by the whole country, indeed by the world at large."

The concluding quote summarizes the profound influence of Henry Royce and his collaboration with C. S. Rolls, which led to the worldwide recognition of Rolls Royce's engineering excellence.