Prior to the holidays, one of the great CEO’s in Corporate History passed away. Lou Gerstner led one of the most significant turnarounds in history at the helm of IBM from 1993-2002. The stock grew by 800% in his time as leader. He was the first outsider to be the leader of IBM with no background in technology, other than being a former customer.
Thirty years ago, in January of 1996, I was hired at IBM as an Inside Account Manager, part of the Inside Sales Organization, three years after Lou Gerstner was hired as CEO of IBM. It was an exciting time as the business was a heading in its new direction and a time of growth. I felt empowered that we could actually make a difference in the business being on the front line with customers.
It had been awhile since I read “Who says Elephants Can’t Dance” so I did a refresh over the holidays. I do remember key quotes and excerpts from the book that I can relate to my close to 10 years of experience as an IBM’er which brings a smile to my face being part of an amazing turnaround in the corporate history books.
As I moved through different organizations in my career, three C’s or themes were always in my thoughts: Customers, Compensation, and Culture.
On Customers
“The Last Thing IBM Needs is a Vision”
This famous statement was actually a defense of the customer. He argued that “vision” was often just an internal executive exercise. He believed that instead of dreaming about the future, IBM needed to win the “battle on the customer’s premises” every day.
He said, “Everything starts with the customer.” If you solve their immediate, painful business problems, the “vision” for the company’s future will naturally emerge from those market realities.
I remember a fond moment of reviewing a deal with my manager and she telling me in times of highly competitive situations Lou would clasp his hands together in excitement and believed that is when IBM did our best to step up and create value for customers.
On Compensation
When he arrived, Gerstner discovered that despite the “Teamwork” banners on the walls, the pay structure told a different story. He famously remarked: “I asked, ‘How do people get paid?’ They told me, ‘We pay people based on individual performance.’ I said, ‘Then don’t tell me you have teamwork.'” Lou G.
On Culture
“I came to see, in my time at IBM, that culture isn’t just one aspect of the game, it is the game.” , Lou Gerstner
I will always be proud to be an xIBM’er. I recall a recruiter in the industry who said to me once “that there are two types of companies in the IT Sector, IBM and everyone else”. As one progresses through their career that still resonates with me.
Leadership can make or break a company. Choose wisely.
Charley