Iron Horse Saves the King: Lou Gerstner on IBM

Author: Tan Dizhou
Publisher:
Publish Date: 2005-05-01
Features: At IBM, I believe I did my best work by creating IBM's leadership team. —, the ailing "Blue Giant," discovered the root of the problem, made four key decisions, corrected all deviations, restructured the organization, reformed the compensation system, and industrialized services. Watch "Cookie Monster" take on heavy responsibilities alone, and uncover how the "technologically clueless" leader brought the Blue Giant back to life.
■ I manage according to principles rather than procedures;
■ Behavior aligns with the market;
■ I believe in quality, strong competitive strategy and rules, teamwork, performance-based pay, and business ethics responsibility.
■ Actions should be swift. Don't fear making mistakes; even if mistakes are made, they should be due to our speed rather than slowness.
■ I am not technically proficient; I need to learn, but don't expect me to become a technical expert. Divisional heads must be able to explain various business terms to me.
In fact, IBM chose not as a temporary measure but because of his strong background — holds an MBA from Harvard Business School and joined the renowned McKinsey & Company management consulting firm after graduation, becoming a rising star. He was known for his ability to quickly absorb vast amounts of information and immediately summarize corporate issues, which allowed him to become a partner in just five years. His career in the business world left him with the mark of a professional CEO. Before joining IBM, he had successfully served as CEO and Chairman of Nabisco and as CEO of American Express. However, these credentials did not ease people's concerns. A critical reason was that lacked computer technology expertise and familiarity with the industry. Compared to "technologically-oriented leaders" like Bill Gates of Microsoft and Andy Grove of Intel, was an undeniable outsider. IBM entrusting its life-or-death fate to an "outsider" seemed truly unbelievable.