information technology:
architectural control
and e-business, see e-business
networked model
information technology industry:
competition in, see competition
294 / LOUIS V. GERSTNER, JR.
connectivity
convergence
detachment from customers
disaggregation
IBM as leader of
Internet in, see Internet
product loyalty
services-led
see also computer industry
Informix
integrated circuits
integration:
as a bet-the-company strategy
in centralized enterprises
corporate culture against
measurement systems in
integrity
Intel
intellectual property
International Business Machines Corporation, see IBM
International Monetary Fund (IMF)
Internet:
access to
arrival of
and e-business, see e-business
future of
IBM’s commercials about
impact of
as mass medium
networked applications
protocols
Internet Division
ISSC (Integrated Systems Services Corporation) JD Edwards
Jobs, Steve
Johnson, Lyndon B.
WHO SAYS ELEPHANTS CAN’T DANCE? / 295
Johnson & Johnson
Jordan, Vernon
Joyce, John, foreword
Justice Department, U.S.
Kalis, David
Kasparov, Garry
keeping IBM together, see also integration KKR (Kohlberg Kravis Roberts & Co.)
Knight, Chuck
Kodak
Kohnstamm, Abby, foreword
Kravis, Henry
Kroc, Ray
Kuehler, Jack
Leadership Competencies
Lederberg, Joshua
lifelong employment
Linux
Loral Corporation
Lotus Development Corporation
Lotus Notes
McKinsey & Company
McNealy, Scott
magnetic recording
mainframes:
cannibalization of
centralized computing
CMOS technology
declining market share of
early priorities and planning
growing IBM’s business around
price reductions
repositioning
rumored demise
System
296 / LOUIS V. GERSTNER, JR.
System
Makihara, Minoru
malfeasance
Malone, John
management:
boards of directors
management ( cont. )
culture changes
leadership by
Management Committee
Manzi, Jim
marketing and sales
matrix management
MCI
media:
Gerstner’s press conferences
IBM communications department
stories about Gerstner
stories about IBM
Memorial Sloan-Kettering Cancer Center
memory chip, invention of
memory chips (DRAMs)
merchant market
mergers:
and acquisition fever
downside
see also integration
Metz, Frank
microelectronics business
Microsoft:
competition from
domination of PC industry
and IBM PCs
and Internet
software
Windows operating system
Wintel duopoly
WHO SAYS ELEPHANTS CAN’T DANCE? / 297
Morris, Charles
Motorola
Murphy, Tom
NCR Company
Neff, Tom
Netscape
networked computing
as e-business, see also e-business
network computing blueprint
strategic vision for
New Economy
New York Times, The
New York Times Company
nonconcur system
Nortel
Noto, Lou
Novell
OECD (Organization for Economic Cooperation and Development) OEM (Original Equipment Manufacturer) business Ogilvy & Mather
on-demand computing
Opel, John
open architecture
open standards
Operation Bear Hug
Oracle
OS/2
OS/2 Warp
overhead projectors
Ozzie, Ray
Palmisano, Sam, foreword
as Gerstner’s successor
as ISSC president
Partnership for a Drug-Free America
passion
298 / LOUIS V. GERSTNER, JR.
paternalism
Patrick, John
PCs:
client/server segment in
commercials
and company image
competition for market share in
distribution of
emerging market model of
IBM PowerPC
IBM’s entry into market
IBM missteps
and networked model
operating systems
PeopleSoft
Personal Business Commitments (PBCs) of
personal computers, see PCs
personal leadership
Philip Morris
PowerPC
Principles
Gerstner’s description of
leadership via
marketplace as driving force
measures of success
needs of employees and community
quality commitment
restless self-renewal
strategic vision
teamwork
urgency
priorities, strategic, see strategy privacy
Procter & Gamble
PROFS (internal messaging system)
proprietary technology
WHO SAYS ELEPHANTS CAN’T DANCE? / 299
public relations
quality:
customer ratings
focus on excellence
IBM commitment
Reagan, Ronald
real estate
reengineering
relational database
Research Division
respect for the individual
Rizzo, Paul
R. J. Reynolds Tobacco Company
RJR Nabisco
Robinson, Jim
Roche, Gerry
Rockefeller, John D.
ROLM
SAP
Schrempp, Juergen
Seagate
search committee
Sears, Roebuck
semiconductor business
semiconductor chips
Senior Leadership Group (SLG)
September 11 attacks:
implications of
Server Group
services:
building the organization around
discipline in management of
and economies of scale
future of
integrating solutions for customers
300 / LOUIS V. GERSTNER, JR.
product-based business VS.
self-renewal capacity
SGI
shareholders:
dividends
IBMers as
meetings of
value to
Siebel, Tom
Siebel Systems
Silicon Valley ethos
Social Security System, U.S.
/> societal change
Socony Mobil Oil Co.
software
acquisitions
application-specific
IBM sales
middleware
open standards
operating systems
Software Group
“Solutions for a Small Planet,”
Sony Corporation
Spencer Stuart Management Consultants N.V.
Sperry-Burroughs
standards:
corporate-wide
of integrity
Internet protocols
open
stock options
Stock Options Program
stock prices
stock splits
Stockholders, see shareholders
strategy:
WHO SAYS ELEPHANTS CAN’T DANCE? / 301
acquisitions
in allocating resources
big bets
brand renewal
clarity
competitive, see competition
customer focus
e-business
execution
focus
inspection
open technology
priorities and key decisions
quality commitment
quantitative analysis
reflections
vision
Sun Microsystems
System/360 mainframes
System/390 mainframes
systems management software
Taurel, Sidney
taxation
teamwork
Technology Group
telecommunications
terrorism
ThinkPad
Thoman, Rick, foreword
Thompson, John M., foreword
Tivoli Systems
T. J. Watson Research Center
Toshiba
Toyota
Trotman, Alex
Unisys
United Nations (UN)
302 / LOUIS V. GERSTNER, JR.
Univac
University of Pennsylvania
UNIX
USA Today
utility computing
values
variable pay
Vest, Chuck
vision statements
Wall Street Journal, The
Wal-Mart
Walton, Sam
Wang Corporation
Watson, Thomas J., Jr.
Watson, Thomas J., Sr.
Web hosting
Websphere
Weil, Ulric
Welch, Jack
Welsh, Dennie, foreword
win, execute, and team
Windows operating system
Wintel duopoly
Wladawsky-Berger, Irving
World Bank
Worldwide Management Council (WMC)
World Wide Web
Wu, David
Xerox Corporation
York, Jerry, foreword
Yorktown Heights, New York, IBM Research
About the Author
Louis V. Gerstner, Jr., served as chairman and chief executive officer of IBM from April 1993 to March 2002, when he retired as CEO. He remained chairman of the board through the end of 2002. Before joining IBM, Mr. Gerstner served for four years as chairman and CEO of RJR Nabisco, Inc. He received a bachelor’s degree in engineering from Dartmouth College and an MBA from Harvard Business School.
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WHO SAYS ELEPHANTS CAN’T DANCE?. Copyright © 2002 by Louis V. Gerstner, Jr. All rights reserved under International and Pan-American Copyright Conventions. By payment of the required fees, you have been granted the non-exclusive, non-transferable right to access and read the text of this e-book on-screen. No part of this text may be reproduced, transmitted, down-loaded, decompiled, reverse engineered, or stored in or introduced into any information storage and retrieval system, in any form or by any means, whether electronic or mechanical, now known or hereinafter invented, without the express written permission of PerfectBound™.
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Adobe Acrobat eBook Reader November 2005 ISBN 0-06-113426-0
Library of Congress has catalogued the hardcover edition as follows: Gerstner, Louis V.
Who says elephants can’t dance? : inside IBM’s historic turnaround/Louis V. Gerstner, Jr.
p. cm.
International Business Machines Corporation – Management. 1. International Business Machines Corporation – History. 3. Computer industry – United States– History. 4. Electronic office machine industry – United States– History. 5. Corporate turnarounds– United States–
Case Studies. 1. Title.
HD9696.2.U6412545 2002
004.’068–dc21
ISBN 0-06-052380-8 (pbk.)
10 9 8 7 6 5 4 3
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Document Outline
Cover Image
Title Page
Dedication Page
Contents Foreword
Introduction
Part One: Grabbing Hold Chapter One: The Courtship
Chapter Two: The Announcement
Chapter Three: Drinking from a Fire Hose
Chapter Four: Out to the Field
Chapter Five: Operation Bear Hug
Chapter Six: Stop the Bleeding (and Hold the Vision)
Chapter Seven: Creating the Leadership Team
Chapter Eight: Creating a Global Enterprise
Chapter Nine: Reviving the Brand
Chapter Ten: Resetting the Corporate Compensation Philosophy
Chapter Eleven: Back on the Beach
Part Two: Strategy Chapter Twelve: A Brief History of IBM
Chapter Thirteen: Making the Big Bets
Chapter Fourteen: rvices-the Key to Integration
Chapter Fifteen: Building the World’s Already Biggest Software Business
Chapter Sixteen: Opening the Company Store
Chapter Eighteen: The Emergence of e-business
Chapter Nineteen: Reflections on Strategy
Part Three: Culture Chapter Twenty: On Corporate Culture
Chapter Twenty-One: An Inside-Out World
Chapter Twenty-Two: Leading by Principles
Part Four: Lessons Learned Chapter Twenty-Three: Focus—You Have to Know (and Love) Your Business
Chapter Twenty-Four: Execution-Strategy Goes Only So Far
Chapter Twenty-Five: Leadership Is Personal
Chapter Twenty-Six: Elephants Can Dance
Chapter Twenty-Seven: IBM-a Farewell
Appendices
Appendix A
Appendix B
Index
About the Author
Copyright Notice
About the Perfectbound
/> Louis V. Gerstner, Jr., Who Says Elephants Can't Dance?: Leading a Great Enterprise through Dramatic Change
Who Says Elephants Can't Dance?: Leading a Great Enterprise through Dramatic Change Page 27