Lou Gerstner, Who Says Elephants Can’t Dance (2002)
The American Gerstner (pictured right) was IBM's chief executive 1993- 2002 and transformed its
profits.
The book describes how he did it.
Book summary
How Gerstner transformed IBM’s profits
1. “Maniacal” customer focus
Creating a customer obsessed corporate culture.
2. Leadership
Gerstner was successful at IBM because of his:
a) self-motivation
This came from his
b) visibility
Daily contact with:
c) toughness
Making difficult decisions like axing thousands of jobs.
d) example
- winning people’s respect.
e) strategy implementation
Successfully implementing a new customer focused strategy based on selling customer
services (see point 3).
3. Making change happen
IBM’s new strategy was effectively put into action through:
a) communication
Clear communication of the strategy.
b) motivation
Motivating people through:
- high performance standards (for teams and individuals).
- responsibility for results.
c) urgency
Creating urgency was made easier by IBM’s financial crisis in 1993 when Gerstner took over.
d) valuing key people
Gerstner particularly valued IBM’s research staff, because technological expertise was its
main advantage over competitors.
Key quote on corporate culture
Culture isn’t just one aspect of the game – it is the game.
Key quote on strategy
Execution is really the critical part of a successful strategy.
Key quote on leadership
Execution – getting the task done, making it happen – is the most unappreciated skill of an effective business
leader.
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