So, here i am, ready to tell you the story of the revival of ibm. Gerstners father, louis gerstner jr, 71, became the ceo of ibm in 1993. Lou gerstner and the business turnaround of the decade by doug garr, harper business, 1999, 351 pages when doug garr was hired by ibm get reporto be a speechwriter for personal. Gerstner is the author of who says elephants cant dance, the bestselling account of ibms transformation. Gerstner, the rjr nabisco executive who became ibms ceo and chairman in 1993, righted the ship, taught the elephant to dance, and insert. The decline and fall of ibm audiobook by robert cringely. Gerstner jrs memoir about the turnaround of ibm and his. For most of its long history, ibm symbolized american ingenuity and corporate power.
Lou gerstner born 1942 rescued ibm, the worldslargest computer maker, when he became its ceo in 1993. Lou gerstner, american businessman best known for the pivotal role he played in revitalizing the ailing ibm in the mid1990s. This content is no longer being updated or maintained. Former ibm ceo and chairman lou gerstner discusses company turnarounds and his tenure at ibm. Gerstner came on board as chairman and ceo almost a decade ago. Gerstner was a great leader who made important changes in ibm, but didn. Oct 26, 2015 former ibm ceo and chairman lou gerstner discusses company turnarounds and his tenure at ibm.
Gerstner started by changing the companys funereal dress code and eventually redirected the company to provide computer services. Well cover the lessons lou gerstner can teach you about leadership and. Gerstners career, though, spanned 43 years which also included more than a decade at mckinsey, senior positions at american express, and four. Another of the gerstner insight was that every big industry is built around open standards. The company got in trouble back in the 1990s and had to hire for the first time an outside ceo, lou gerstner, to save the day. Mw ibm on tuesday tapped president sam palmisano to replace lou gerstner as ceo, handing the reins of the worlds largest computer company to. The firsthand story of an extraordinary turnaround, a unique case study in managing a crisis, and a thoughtful reflection on the computer industry and the principles of leadership, who says elephants cant dance. Louis gerstner iii passed away last wednesday while dining alone at lenox hill grill. His system was first used at the atlanta olympics in 1996.
Offering a unique case study drawn from decades of experience at some of americas top companies mckinsey, american express, rjr nabisco gerstners insights into management and leadership are applicable. Taking readers deep into the world of ibms ceo, gerstner recounts the high. His career has been a study in corporate strategy and how to turn ailing companies around. Its hard not to look at the ibm of 2018 and the disastrous tenures of gerstners successors as ceo sam palmisano and ginni rometty to wish for the halcyon days of the 1990s when lou turned around the great ship known as ibm. The answers to the question of how gerstner saved ibm. Ibm researcher lloyd treinish developed a hyperlocal weather forecasting capability that combined algorithms, computer modeling and visualization to predict shortrange, very local weather. Oct, 2009 the firsthand story of an extraordinary turnaround, a unique case study in managing a crisis, and a thoughtful reflection on the computer industry and the principles of leadership, who says elephants cant dance. Gerstner, the rjr nabisco executive who became ibms ceo and chairman in 1993, righted the ship. Mst adds annex bulletin 9329 quote lou gerstners book. For the first time, gerstner answered critics who have charged that his. Learn more about gerstners life and career, including his work with other businesses.
Dec 01, 2017 this was ceo lou gerstner s book title back in 2003 about bringing ibm back from the brink of insolvency to lead the computer business once again. Gerstner served for four years as chairman and ceo of rjr nabisco, inc. Who says elephants cant dance inside ibms historic. Shortly after lou gerstner was introduced as ibms ceo in the spring of 1993, he met with the companys corporate management board roughly the top 50 people in the company. Ibm is finally a buy, says alphaone capitals dan niles. Lou gerstner shares some blame for ibms current mess, according to new book. Gerstner was a great leader who made important changes in ibm, but didnt go far enough.
By understanding and anticipating weather patterns, businesses and government agencies could better utilize resources, reduce costs and curtail. Recently, a relaxed gerstner met with businessweek associate editor ira sager. He remained chairman of the board through the end of 2002. Big blue, as the company is known, tends to rely for its success on magical thinking but that magic ran out a long time ago. In this video tribute, friends and colleagues share memorable moments and. The most important choice facing ibms new ceo arvind krishna. Part iistrategy 111 12 a brief history of ibm 1 making the big bets 121 14 servicesthe key to integration 128 15 building the worlds already biggest software business 6 16 opening the company store 146 17 unstacking the stack and focusing the portfolio 153 18 the emergence of ebusiness 165 19 reflections on strategy 176 part iiiculture 179 20 on corporate culture 181. Its hard not to look at the ibm of 2018 and the disastrous tenures of gerstner s successors as ceo sam palmisano and ginni rometty to wish for the halcyon days of the 1990s when lou turned around the great ship known as ibm. Jun 09, 2014 the conventional wisdom about ibm is that louis v. Gerstner had been a customer of ibm when he was the ceo.
Gerstner was looking for an exit from rjr nabisco, where he was chairman and chief executive. Ibm needed more than just a talented executive when it hired lou gerstner in 1993. Louis v gerstner, jr 1942 ibm ceo 19932002 sign in louis gerstners office. But as he told mba students at harvard business school, he wasnt the only one responsible for the change. Lou gerstner created a global enterprise based on capitalizing ibms ability to integrate all the parts for the customers. Taking readers deep into the world of ibm s ceo, gerstner recounts the high. Boasting about ibm boards courtship in 1992, he reveals how ibm board misled the public. Aug 21, 20 the 41yearold son of a former ceo of ibm has died after choking on a piece of steak at a new york city diner. Lou gerstner thought the enormous corporate elephant could dance as gracefully as its much smaller competition. Gerstner led ibms transformation from geographical organization to a global, customeroriented organization. At the time, the technology giant was in dire straits, but gerstner was able to transform the struggling company on the verge of bankruptcy into a profitable business. Gerstner, one of the most accomplished chief executives of his time, knows this.
Who says elephants cant dance leading a great enterprise. Gerstner pushed ibm into services with spectacular results but this hurt the company, too. The answers to the question of how gerstner saved ibm, the major business decisions, are known. Nov 11, 2002 after months of courting, gerstner took over as chairman and ceo of ibm on april fools day of 1993. Gerstner took over as chairman and ceo of ibm on april fools day of. In his nineyear tenure as ceo of big blue, gerstner lifted ibm out of disarray and. He is largely credited with turning ibms fortunes around.
Lou gerstnerlou gerstner born 1942 rescued ibm, the worldslargest computer maker, when he became its ceo in 1993. Lou gerstner shares some blame for ibms current mess. Louis v gerstner ceo ibm 19932002 management style and. A well rendered selfportrait of a ceo who made spectacular change on the strength of. He took over ibm at the request of the board of directors, who realized the company was in trouble, and turned the company around. Gerstner had already led turnarounds at american express and rjr nabisco, and, as saving big blue details, he proved to be the right man for the job. This was ceo lou gerstners book title back in 2003 about bringing ibm back from the brink of insolvency to lead the computer business once again. Gerstner started by changing the companys funereal dress code and eventually redirected the company to provide computer services rather than just computers. Lou gerstner on how to turnaround a company bloomberg. It has been there before and recovered when lou gerstner famously led the change from hardware to service.
The company held a special place in the hearts and minds of the public and. Lou gerstner has succeeded in writing a book which both provides valuable insights into the computer industry and the situation and success of ibm, as well as providing a roadmap for leaders seeking to effect strategic change in any industry. The 41yearold son of a former ceo of ibm has died after choking on a piece of steak at a new york city diner. Lou gerstner saved ibm from a previous crisis in the 1990s, and then went on to set the company up for the crisis of today.
The conventional wisdom about ibms ibm is that louis v. He retired from that position in october 2008 and remains a senior advisor to. Well cover the lessons lou gerstner can teach you about leadership and the most important qualities for a successful leader. Ibm had become like a musicpublishing company run by deaf people. Jun 07, 20 the first paragraph of every obituary on louis v. Leading a great enterprise through dramatic change louis v. Of course, this book would never have appeared without the heroes among my ibm colleagues who helped me restore ibm to a position of leadership. Financial challenges, a rigid corporate culture and a. Jun 09, 2014 in a book excerpt posted on recode, cringely writes. In a book excerpt posted on recode, cringely writes. Dec 09, 2002 1292002 ibm was in deep trouble when louis v. Jun 08, 2014 lou gerstner saved ibm from a previous crisis in the 1990s, and then went on to set the company up for the crisis of today. Having lived through the ibm turnaround myself at the coalface as a very humble employee i found it interesting and enlightening to read this book of how it had looked from the ivory tower of corporate management and especially as seen through the eyes of an outsider, for lou gerstner was the first ceo who had not grown up in ibm. He is a graduate of chaminade high school, dartmouth college and holds an mba from the harva.
When lou gerstner was named as ibms ceo in march 1993, the company which had virtually invented business computing in the 1960s had just 100 days left before the cash ran out. After months of courting, gerstner took over as chairman and ceo of ibm on april fools day of 1993. In january 2003, he assumed the position of chairman of the carlyle group, a global private equity firm located in washington, d. Who says elephants cant dance louis gerstner meine. Lou gerstner will always be known as the man who saved ibm after resuscitating, then reinvigorating, the near bankrupt com pany when he took over as chairman and ceo in 1993. I believe it might be of interest to briefly outline of his achievements so as to draw some conclusions about sound management practices. Gerstner was the first outsider to take on this role since thomas watson sr. Lou gerstner ibms digital transformation change master. All that changed when lou gerstner was named ceo of ibm in 1993.