I consider my ability to arouse enthusiasm among men the greatest asset I possess. The way to develop the best that is in a man is by appreciation and encouragement.

Charles M. Schwab (1862–1939), the steel executive associated with Carnegie Steel and later U.S. Steel and Bethlehem Steel, was widely quoted in the early 20th century for his views on management and motivating workers. This remark reflects the era’s growing interest in “human relations” in industry—how leadership, morale, and recognition could increase productivity beyond mere technical efficiency. The wording is commonly presented as Schwab describing what he believed distinguished his leadership: not superior technical knowledge, but the capacity to inspire people through praise and encouragement rather than criticism.

The quote argues that a leader’s most valuable “asset” is the ability to kindle enthusiasm—an emotional and social force that makes people invest more of themselves in their work. Schwab frames motivation as something cultivated through appreciation: recognizing effort and potential draws out a person’s best qualities, whereas fault-finding tends to shrink initiative and loyalty. The underlying claim is pragmatic as well as ethical: encouragement is not sentimental but strategic, because it produces better performance and stronger commitment. In a broader sense, the line captures a managerial philosophy that treats morale and dignity as central levers of organizational success.