You Won’t Believe What This CEO Did to Turn a Failing Company into a Billion-dollar Success Story!
Lou Gerstner, who served as CEO of IBM from 1993 to 2002, is known for his statement that “culture isn’t just one aspect of the game, it is the game.” Gerstner made this statement in reference to the role that culture played in the success of IBM during his tenure as CEO.
When Gerstner took over as CEO of IBM, the company was in a state of decline. It was facing financial difficulties and had lost its position as a leader in the technology industry. Gerstner recognised that in order to turn the company around, he would need to address the underlying cultural issues that were causing these problems.
One of the key cultural issues that Gerstner identified was the lack of a sense of urgency within the company. IBM had become complacent and was not reacting quickly enough to changes in the technology industry. Gerstner recognised that in order to be successful, IBM would need to move faster and be more adaptable.
To address this issue, Gerstner implemented a number of changes to IBM’s culture. One of the most significant changes was the elimination of the company’s bureaucratic structure. Gerstner streamlined the organisation and made it more decentralised, giving individual business units more autonomy and flexibility. This change allowed IBM to respond more quickly to changes in the market and to be more innovative.
Another key change that Gerstner made was to focus on customer service. IBM had a reputation for being difficult to do business with, and Gerstner recognised that this was a major obstacle to the company’s success. He implemented a number of changes to improve customer service, such as creating a dedicated customer service team and putting customer service representatives in key business units. This change helped to improve IBM’s reputation and made it easier for customers to do business with the company.
Gerstner also focused on building a more collaborative culture at IBM. He encouraged employees to work together across different business units and to share ideas and knowledge. This helped to foster a sense of teamwork and helped to improve communication and collaboration within the company.
Overall, Gerstner’s efforts to transform IBM’s culture were a key factor in the company’s success during his tenure as CEO. By addressing the underlying cultural issues, Gerstner was able to turn IBM around and restore it to a position of leadership in the technology industry. Gerstner’s statement that “culture isn’t just one aspect of the game, it IS the game” highlights the importance of culture in the success of any organisation.
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