Lou_Garstner (1)

Abstract
“In the early 1990s, IBM had hit a wall. It was hemorrhaging money as well as losing market share, a victim of the trend toward personal computers and away from IBM’s mainframes.” But new IBM’s CEO, Louis V. Gerstner, who did not have an insight into computer industry, but clearly understood the new globalized fast-changing world. He could identify IBM’s customer orientation problem. In this article, our team tries to explain how Lou Gerstner taught the elephant to dance.

IBM: Technologies through Centuries

Welcome to the Company!
“Gerstner was appalled by the lack of customer orientation he found at the ultrapolitical and heavily bureaucratic IBM…”
https://www.mbiconcepts.com

The Main Problem 1: Hyper-centralization and Bureaucracy
The job description of assistant personal director consist of 60 pages, including dress code and the pocket content.
https://diplomaticreview.com

How do you think, how many pages were in the HR manager assistant’s job description?
60 pages
Photo: RIA news/Aleksey Vetvitsky

The Main Problem 2: Losing Touch with the Customers and Useless Assets
https://www.ibm.com

Steps of Lou’s Decision-making