In 1939, the United States was hardly a military power. Its army ranked behind Portugal’s. Factories were geared for cars, refrigerators, and radios – not tanks, planes, or ships.
Yet by 1945, America had become the “arsenal of democracy”, producing two-thirds of all Allied equipment. Planes rolled off assembly lines by the hour. Ships were launched in days. Tanks and jeeps came by the millions.
How did that transformation happen so quickly? Arthur Herman’s Freedom’s Forge tells the story. More importantly, the principles behind this industrial miracle are just as relevant for today’s mid-market businesses facing growth challenges.
Here are eight timeless lessons – brought to life with modern examples.
1. Clarity of Mission Beats Perfection of Plan
The U.S. government defined the what but left the how to industry.
Today: Leadership teams often over-specify strategies. Better to set a bold, clear mission – and empower teams to execute.
Example: Canva, now global but once a mid-sized Australian startup, didn’t map out every feature. Its mission – “empower the world to design” – was clear enough to guide teams, flexible enough to spark explosive innovation.
2. Adapt Existing Strengths to New Markets
Auto makers turned mass-production skills into bomber production.
Today: Growth often comes from redeploying existing competencies.
- Example: RM Williams leveraged craftsmanship and brand heritage into apparel and accessories, broadening markets without diluting core strengths.
Example: Aussie Broadband used its service-driven culture to expand from retail internet into wholesale and enterprise solutions.
3. Simplify to Scale
The Jeep’s power was in rugged simplicity.
Today: Simplification drives efficiency and customer adoption.
- Example: Afterpay stripped complex credit products into a simple “pay in four” model – fueling rapid global adoption.
- Example: A regional cabinetry business I advised cut its custom line from 60 SKUs to 25, doubling throughput and improving margins.
4. Build Flexible Supply Chains
When bottlenecks emerged, Henry Kaiser built new suppliers and processes.
Today: Mid-market firms can’t outmuscle giants – but they can out-adapt them.
- Example: Cochlear diversified manufacturing and suppliers during the pandemic, keeping production running while larger medtech firms stumbled.
- Example: Australian wholesalers like Bidfood source from both local farms and global markets, ensuring resilience during climate or logistics shocks.
5. Mobilize the Whole Workforce
WWII factories trained millions of new workers.
Today: With talent tight, widen the funnel.
- Example: BlueScope Steel reskills workers from other industries, building loyalty instead of relying solely on poaching.
- Example: Atlassian, long before it scaled globally, embraced distributed teams – proving new pools of talent fuel growth.
6. Treat Failure as Data, Not Disaster
Factories fixed problems fast by iterating.
Today: Mid-market leaders must avoid perfection paralysis.
- Example: Who Gives A Crap launched with imperfect supply chains and packaging, but improved quickly. The “launch, learn, improve” rhythm built both speed and customer loyalty.
7. Leadership Is Orchestration, Not Control
Knudsen and Kaiser weren’t the best engineers – they were connectors.
Today: CEOs should focus less on technical brilliance, more on alignment.
Example: Adore Beauty scaled not by inventing new products but by orchestrating suppliers, marketing, and customer experience. Leadership aligned the ecosystem, not just the team.
8. Build for More Than Yourself
America produced for its allies as well as itself.
Today: Companies that expand their circle of value win.
Example: Xero built not just accounting software, but a partner ecosystem of bookkeepers, accountants, and app developers. Growth multiplied because success was shared.
Practitioners Insights
Freedom’s Forge shows how ordinary businesses achieved extraordinary scale through clarity, simplicity, flexibility, and inclusivity. Mid-market firms today can do the same.
You don’t need wartime urgency – but you do need the same clarity of mission and bias for speed.
As Bill Knudsen famously said:
“We are going to build what we can build, and build it fast.”
For mid-market leaders, the call is clear: mobilize your strengths, simplify your focus, and scale with purpose.
And in many ways, the practices of Freedom’s Forge foreshadow what we now call Deming’s 14 Principles, Lean, and the Theory of Constraints. The relentless focus on quality, simplification, waste reduction, and bottleneck elimination that transformed wartime industry are the very disciplines modern companies use to drive continuous improvement and sustainable growth today.
TED BONEL, SCALING UP PRACTITIONER – STRATEGY & EXECUTION BUSINESS ADVISORS
Are you looking to scale your business and execute strategy with clarity and impact? I help CEOs and founders turn big ideas into real-world results, guiding small to mid-market companies through tailored strategic insights that drive growth.
My expertise lies in simplifying complexity – bridging high-level strategic frameworks with the practical realities of running a business. Unlike many consultants who focus solely on theory or execution, I specialise in both—translating strategy into actionable, transformative steps that deliver lasting results.
Let’s explore how I can help your team achieve its objectives. Contact me at tedb@strategyandexecution.com.au to schedule a free 30-minute discovery meeting.
ABOUT STRATEGY & EXECUTION
For over 20 years, Strategy & Execution has supported leaders and organisations in developing and executing winning strategies. We provide expert facilitation, executive education, and hands-on consulting to help businesses refine their strategic direction and implement it effectively.
Using proven methodologies like Scaling Up, E-Myth Mastery, Outthinker, and more, we challenge conventional thinking and equip organisations with the tools to accelerate growth. Our approach is dynamic—combining deep business experience with practical execution. We don’t just advise; we roll up our sleeves and work alongside you to make strategy happen.
If you’re preparing for a strategy development or execution challenge and are committed to creating real value, we’d love to hear from you. Learn more about our work or upcoming workshops.
