Who Says Elephants Can't Dance?: Leading a Great Enterprise through Dramatic Change (35 page)

Customer Forum, Chantilly, Va.

customers:

IBM focus on

integrating solutions for

quality ratings by

satisfaction of

cyber terrorism

290 / LOUIS V. GERSTNER, JR.

Czarnecki, Gerry

DaimlerChrysler

Data General

“Dear Colleague” memos

decentralization VS. centralization

Deep Blue

Dell

deregulation

digital divide

Digital Equipment Corporation (DEC)

Dinah Shore Golf Tournament

Disney Company

divestitures

Domino Web Server

Donofrio, Nick, foreword

Dormann, Juergen

dot-com mania

DRAMs

dress code

Eastman Kodak

e-business

ad campaign

coining of term

future direction

IBM as agenda setter in

information infrastructure of

Economist, The

Ellison, Larry

EMC

EMEA (Europe, Middle East, and Africa)

employee communications

entrepreneurship

European Union

excellence

execution:

accountability for

WHO SAYS ELEPHANTS CAN’T DANCE? / 291

clarity in

in high-performance culture

and IBM’s turnaround

and inspection

leadership in

of shared activities

translation of strategies into

Executive Committee

executives:

compensation

evaluation

leadership qualities of

leading by example

Exley, Chuck

Father, Son, and Co.
(Watson)

Federal Systems Company

Ferguson, Charles

Financial Times

First Data Resources

Fisher, George

focus

on acquisitions

allocating resources in

on competitive analysis

on core business

on detailed analysis

on strategies VS. vision

foils

Ford, Henry

FORTRAN

Fortune

Fujitsu computers

Gates, Bill

GATT (General Agreement on Tariffs and Trade) General Electric (GE)

General Motors (GM)

292 / LOUIS V. GERSTNER, JR.

genome mapping

Gerstner, Dick

Gerstner, Louis V., Jr.:

birth and family background

challenges

decision to join IBM

early career

employment contract with IBM

first days at IBM

lessons learned,
see also
observations management philosophy

as outsider

reflections on first year at IBM

retirement

strategy of,
see
strategy

Global Network

Global Services

globalization

go-to-market model

grid computing

Grove, Andy

Hammer, Michael

Harvard Business School

Heidrick & Struggles International, Inc.

Helyar, John

Hewlett Packard (HP)

high-bandwidth networks

Hitach:

competition from

hard-disk-drive business divested to

Home Depot, The

Honeywell, as competitor

IBM:

acquisitions

as American icon

antitrust scrutiny

WHO SAYS ELEPHANTS CAN’T DANCE? / 293

brand

breakup

bureaucracy

cash position

changing economic model

community service

as counterintuitive corporation

culture of,
see
corporate culture

customer focus

decline

as global institution

go-to-market model

history

image,
see also
media

as industry leader

media stories

morale

operational and financial performance (1992-2001) right-sizing

strategy of,
see
strategy

survival

IBM Board of Directors

IBM principles

IBMers:

CEO’s communication with

compensation of,
see
compensation

culture of,
see
corporate culture

increases in workforce

layoffs of

morale

information superhighway

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.