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THE FOUR-WAY TEST
IN 1932 DURING THE GREAT DEPRESSION, THE
JEWEL TEA CO WAS ABOUT TO MAKE HERBERT
TAYLOR ITS PRESIDENT. HIS LONG AND VERY
SUCCESSFUL BUSINESS CAREER WAS ABOUT TO PAY
OFF WITH A PRESTIGEOUS AND LUCRATIVE
POSITION. AT THE SAME TIME, HOWEVER, THE
BOARD OF DIRECTORS OF THE CLUB ALUMINIUM CO.
ASKED HIM TO REVIVE THE NEAR BANKRUPT
COMPANY THAT OWED $400,000 MORE THAN IT HAD
IN ASSETS.
HE LOOKED HARD AND LONG AT THE CHALLENGE AND
DECIDED TO TAKE IT AND, HE GOT RIGHT TO
WORK. AFTER SURVEYING THE SITUATION, HE
DECIDED TO CUT HIS OWN SALARY BY 80% AND
INVESTED OVER $6,000 OF HIS OWN MONEY INTO
CLUB. STILL, HE KNEW THIS WAS NOT ENOUGH.
SURE, BETTER OPERATING EFFICIENCIES WERE
ESSENTIAL, BUT MORE THAN THAT, THE CO.
NEEDED A DIFFERENT CULTURE, GUIDED BY
DIFFERENT MORAL AND ETHICAL STANDARDS.
HERB LISTED SEVEN PRINCIPLES HE WANTED ALL
THE EMPLOYEES TO FOLLOW. THEN HE THOUGHT
THAT WAS TOO LONG SO HE REDUCED THEM TO JUST
24 WORDS: WORDS THAT EVERYONE COULD
MEMORIZE. HE RAN THE LIST BY HIS SENIOR
MANAGERS, ALL FROM DIFFERENT FAITHS. THEY
AGREED THAT THE LIST NOT ONLY COINCIDED WITH
THEIR RELIGIOUS BELIEFS, IT ALSO PROVIDED AN
EXEMPLARY GUIDE FOR EVERYONE’S PERSONAL AND
BUSINESS LIFE. THOSE 24 WORDS SET THE MORAL
COMPASS FOR CLUB ALUMINIUM.
SHORTLY THEREAFTER, THE ADVERTISING DEPT
DROPPED WORDS LIKE, “BEST, BETTER, GREATEST
AND FINEST” FROM COMPANY ADS, BECAUSE THEY
COULD NOT PROVE IT. THE COMPANY ALSO DROPPED
NEGATIVE REFERENCES TO ITS COMPETITION. IT
SIMPLY AND HONESTLY DESCRIBED THEIR
PRODUCTS.
ONE DAY THE SALES DEPT REPORTED THAT A NEW
CUSTOMER WANTED TO BUY $50,000 WORTH OF
PRODUCT. THE STRUGGLING CO. BADLY NEEDED THE
ORDER, BUT LATER THE SALES MGR LEARNED THAT
THE POTENTIAL BUYER WAS GOING TO SELL
EVERTHING AT CUT-RATE PRICES AND HURT THEIR
REGULAR DEALERS. AS TOUGH AS THE DECISION
WAS, THE CO. TURNED DOWN THE ORDER.
A SHORT TIME LATER, A LOCAL PRINTING CO. BID
AND WAS AWARDED A JOB. THEN IT REALIZED IT
HAD MISCALCULATED ITS BID BY $500. CLUB HAD
EVERY RIGHT TO FORCE THE ISSUE, BUT IF IT
DID, IT WOULD HAVE FORCED THE PRINTER OUT OF
BUSINESS. INSTEAD, CLUB LET THE PRINTER
RESUBMIT ITS BID. IT DID AND IT STILL WON
THE CONTRACT AND HERB TAYLOR MADE A FRIEND
FOR LIFE.
THE CORPORATE COUNSEL TOLD HERB, “IF I
FOLLOWED THOSE GUIDELINES, I’D STARVE.” HERB
RESPONDED, “WELL JACK, IF YOU DON’T FOLLOW
THESE GUIDELINES, YOU WON’T BE OUR COUNSEL.”
HERB’S 24 WORDS GUIDED EVERY ASPECT OF
CLUB’S BUSINESS. BY DOING SO, IT CREATED A
CLIMATE OF TRUST AND GOODWILL AMONG ITS
DEALERS, CUSTOMERS, AND EMPLOYEES. SOON CLUB
TURNED ITSELF AROUND. IT PAID OFF ITS DEBT.
OVER THE NEXT 15 YEARS, IT DISTRIBUTED OVER
$1 MILLION IN DIVIDENDS AND ITS NET WORTH
CLIMBED TO OVER $2 MILLION.
OF COURSE, TODAY WE KNOW THOSE 24 WORDS AS
THE “FOUR-WAY-TEST.” HERB TAYLOR TRANSFERRED
THE COPYRIGHT TO ROTARY INTERNATIONAL IN
1955. SINCE THEN IT GUIDES ROTARIANS IN
THEIR BUSINESS AND PERSONAL DEALINGS. TODAY
THAT INCLUDES 1.3 MILLION ROTARIANS IN OVER
200 COUNTRIES AROUND THE WORLD.
THE SELF-EXAMINING QUESTIONS ARE SIMPLE,
STARIGHT FORWARD AND TIMELESS.
PLEASE JOIN ME IN RECITING THE TEST. IF,
HOWEVER, YOU ARE SUFFERING FROM A TEMPORARY
BUT ACUTE CASE OF AMNESIA . . . JUST MUMBLE.
IS IT THE TRUTH?
IS IT FAIR TO ALL CONCERNED?
WILL IT BUILD GOODWILL AND BETTER
FRIENDSHIPS?
WILL IT BE BENEFICIAL TO ALL
CONCERNED?
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