Lou gerstner leadership style Gerstner’s career, though, spanned 43 years which also included more than a decade at McKinsey, senior positions at American Express, and four years as chairman and CEO of RJR Nabisco. During the period of restructuring from 1993-1998 Lou Gerstner's leadership style was instrumental in IBM's successful turnaround. The case further examines the leadership qualities of Gerstner which contributed to this transformation. Oct 8, 2024 · Gerstner's leadership style emphasized collaboration over competition, and this value shift began to permeate the organization. It also gives an account of Gerstner's past experiences, and how he learned from those experiences. He’s been president of American Express, chairman and CEO of RJR Nabisco, but perhaps his biggest test came at IBM. Lou Gerstner, the former CEO of IBM, was known for his transformational leadership style. "What I find extraordinarily interesting about the Chinese is their history of technical and social innovation over the centuries," observes Gerstner, who has visited the country frequently and who hosted former president Jiang Zemin on his first visit to Aug 18, 2024 · The future of IBM looked uncertain as it teetered on the brink of collapse. Sep 21, 2014 · One of my all time favorite books is “Who says Elephants can't Dance?” by Lou Gerstner, who led the remarkable turnaround of IBM in the mid-nineties as its CEO. Analysts and commentators . May 13, 2024 · The Common Thread and Strategic Necessity Across diverse leadership styles and distinct organisational cultures, leaders like Elon Musk, Margaret Thatcher, Lou Gerstner, Indra Nooyi, Vladimir Putin, and Tim Cook share fundamental traits that underscore their effectiveness. Under his leadership, the company's market share increased significantly by 1985. 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. Learn actionable strategies for leading turnarounds and driving business. , John Akers and Lou Gerstner. You" As the architect of IBM’s dynamic transformation, Lou Gerstner explains the imperative for a strong corporate culture, speedy execution, the challenges of growing business in less than ideal economic climate and the complex realities of doing business globally. Gersner- authoritative style, the affiliative, democratic, coaching, pacesetting and coercive styles, all demonstrated in varying strengths. He did not come in with a predefined vision but chose to listen, learn, and then act. lou gerstner How Did Gerstner Approach Organizational Change? One of Gerstner's first moves was to dismantle IBM's siloed structure. After nearly ten wrenching years Aug 1, 1999 · Don't sell product, sell solutions. The turnaround strategy involved shifting focus to high-margin businesses, embracing open standards, and investing in research and development. Jul 8, 2024 · Lou Gerstner Quotes About Leadership I think that my leadership style is to get people to fear staying in place, to fear not changing. I think that my leadership style is to get people to fear staying in place, to fear not changing. By the end of 1994, Lou Gerstner’s first full year as CEO, the company had racked up $ 15 billion in cumulative losses over the previous three years, and its market cap had plummeted from a high “I think that my leadership style is to get people to fear staying in place, to fear not changing. Reprint: R0412C Lou Gerstner’s was a hard act to follow. Gerstner was instrumental in shifting the mental model of employees from self-centric to customer-centric. Pace-setting leadership style, which involves expecting excellence and self-direction. Sep 1, 2014 · Lou Gerstner: I think values are really, really important, but I also think that too many values are just words. Aug 21, 2023 · Episode 15: Lou Gerstner, former CEO of IBM. When I teach at the IBM School, I use the annual reports of about ten major companies that invariably announce, on the back page or inside back page, “These are our values. Summary In this quote, the person expresses their belief in a leadership style focused on motivating others through creating a sense of fear around stagnancy and the status quo. ” Gerstner is often associated with a pragmatic and decisive leadership style. This section provides study questions for the first part of the course. In 1993, Lou Gerstner was appointed as the CEO, marking a pivotal moment in IBM’s history. His willingness to challenge the status quo, his focus on execution, his customer-centric approach, and his commitment to diversity and inclusion all contributed to IBM’s success during his tenure. As the architect of IBM’s dynamic transformation, Lou Gerstner explains the imperative for a strong corporate culture, speedy execution, the challenges of growing business in less than ideal economic climate and the complex realities of doing business globally. The question is, do you create a culture of behavior and action that really demonstrates those values and a reward system for those who adhere to them? 0 0 leadership quotes people quotes practice quotes By Anonym Sep 13 Lou Gerstner Jan 1, 2004 · To explain the role that corporate culture has played in the performance of IBM, this case traces the culture of IBM under four of its influential leaders: Thomas Watson, Sr. He centralized decision-making to foster a more unified and agile organization. His focus was on simplifying IBM's sprawling bureaucracy and making the company more customer-centric. Episode 15: Lou Gerstner, former CEO of @IBM Lou is largely credited with leading the great turnaround of IBM in the 90s, helping the company go from $29B market cap to $168B. Gerstner implemented a strategy for the future, which included keeping IBM together, dramatically reducing prices, entering the new realm of services, and reorganizing around industries rather than Jun 30, 2025 · Lou Gerstner’s leadership was instrumental in turning around IBM’s fortunes by focusing on customer needs and streamlining operations. Read how Gerstner took IBM far beyond just selling computers - to a company that helped customer resolve issues and move forward. "You don't get points for predicting rain. Follow Leaders: Podcast YouTube May 21, 2017 · Read how Lou Gerstner saved IBM from bankruptcy and used digital transformation and change management to both transform IBM and clients’ businesses. Since stepping down from IBM in Under pressure to break-up IBM, Gerstner instead went against the tide of expectation and kept IBM in one piece. As CEO in what were arguably IBM’s darkest hours, Gerstner brought the company back from the brink. Lou Gerstner's rescue of IBM is one of the world's most inspiring - and instructive - corporate success stories. Nov 1, 2025 · The lessons he left behind are not just corporate wisdom — they are leadership truths for anyone who seeks to drive change from the inside out. Lou GerstnerLou Gerstner (born 1942) rescued IBM, the world'slargest computer maker, when he became its CEO in 1993. He went on to make IBM more competitive by announcing downsizing and a new vision for the company called network computing/e-business. His career has been a study in corporate strategy and how to turn ailing companies around. , Thomas Watson , Jr. You" Jan 1, 2000 · Lou Gerstner's rescue of IBM is one of the world's most inspiring - and instructive - corporate success stories. The If the practices and processes inside a company don't drive the execution of values, then people don't get it. " -Lou Gerstner Lou Gerstner: I think that private-equity activity tends to come at the end of the corporate cycle, when a company is already in trouble, has been mismanaged, or is an orphan in need of new leadership. Particular attention is paid to Gerstner's impact revitalizing the culture and bringing the company back, in some sense, to its cultural roots. Share Lou Gerstner quotations about ibm, culture and technology. We brought IBM back but we're gunning for leadership. Jul 5, 2020 · If true test of leadership come during crisis, then Lou Gerstner has been tested many times. ADA at 30: Colleagues With Diverse Abilities Make Us All StrongerGender Pronouns: How Small Words Make a Big Difference30 Years and Counting: Why IBM’s Environmental Report Matters More Than Ever Quote by Lou Gerstner I think that my leadership style is to get people to fear staying in place, to fear not changing. ” — Quote by Lou Gerstner Lou Gerstner’s leadership of IBM provides a powerful example of how a leader can turn around a struggling company and drive success. By 2001, employee approval of company direction had risen from 40% in 1995 to 70%, a testament to how dramatically Gerstner had reshaped IBM's internal culture. The case details Jan 1, 2005 · Gerstner's worldview remains far-reaching, with an especially intense interest in China. Jun 24, 2024 · Coercive leadership style, which entails demanding immediate compliance. He launched a cost-cutting turnaround and, after the turnaround’s success, redeveloped IBM through a cultural and We can see six different styles of leadership in Mr. Learn more Abstract Lou Gerstner carried out the tech-company ‘comeback of the century’ through his 1990s redevelopment of the IBM (International Business Machines) corporation. This venerable and huge computer corporation was in decline by the time Gerstner became CEO in 1993. Before joining IBM, Gerstner held prominent positions at American Express and RJR Nabisco, showcasing his extensive experience in corporate strategy and "I think that my leadership style is to get people to fear staying in place, to fear not changing. He achieved this by finding new uses and users for the card, such as college students, physicians, and women, as well as persuading corporations to adopt the card as a more effective way of tracking business expenses. He found that most important aspect of organizational change at IBM was its culture — “I came to see, in my time at IBM, that culture isn’t just one aspect of the game–it is the game”. Tushman Format: Video | Language: English Discover Lou Gerstner famous and rare quotes. Gerstner transformed one of the most admired companies in the US – IBM, from a loss-making one to a market leader. Source for information on Lou Gerstner: Encyclopedia of World Biography dictionary. Who is Lou Gerstner? Lou Gerstner is widely recognized as a transformative figure in the world of business leadership. For those of you who have read quotes and sayings of Lou Gerstner: I think that my leadership style is to get people to fear staying in place, to fear not changing. — Lou Gerstner 0 If the practices and processes inside a company don't drive the execution of values, then people don't get it. Under his leadership, IBM moved from product manufacturer to service provider, opening up entirely new opportunities for the company Leadership, Culture, and Change: Lou Gerstner, IBM By: M. — Lou Gerstner 17 The next thing is: we can make IBM even better. Gerstner, who came from a background in consulting and consumer products, brought a fresh perspective that was desperately needed. He demonstrated bold leadership and made tough decisions that were necessary for the survival of the company. Filled with page after page of lessons that can be used in virtually any corporate environment, Saving Big Blue takes an honest, inside look at how Gertsner stressed service, propelled IBM into the Internet revolution, and continues to this day the job of restoring IBM as the world The case examines in detail the way in which Louis V. Learn more about the key decisions he made along the way, his transformative leadership style, and what was his lasting legacy was. Jun 20, 2025 · Explore Lou Gerstner’s transformational leadership style—relentless execution, bold culture change, and customer obsession. He is best known for his role as the CEO of IBM, where he led one of the most remarkable corporate turnarounds in history. Here's a great example of how Lou Gerstner used transparent leadership to transform the fortunes of IBM and why every leader can learn so much from his actio Oct 26, 2023 · Explanation Lou Gerstner and Jack Welch were both prominent leaders in the business world, each with their own unique leadership styles and change management strategies. Lou is largely credited with leading the great turnaround of IBM in the 90s, helping the company go from $29B market cap to $168B. Gerstner also emphasized the need for a cultural shift, moving from a product-centric to a service-centric model. g5owp hdpd yw2 diiu a2ats zau4q0 whvym qj4hvkt q5jac qn