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The concept of "global industry teams" was a key part of Gerstner's reorganization of IBM. Instead of organizing the company geographically, Gerstner decided to organize it according to global industry teams. He segmented customers into thirteen industry groups and reallocated all current customer accounts away from geographic heads and to the global industry heads. This ensured that each group had an adequate budget and personnel. The transition was not smooth, with many of the "old guard" refusing to relinquish control. However, after about three years, the reorganization was successfully implemented.
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Gerstner set out to organize IBM instead according to global industry teams. First, they segmented customers into thirteen industry groups. Then, Gerstner reallocated all current customer accounts away from geographic heads and to the global industry heads, ensuring each group had adequate budget and personnel. This did not go over with the "old guard" without a hitch. Many refused to relinquish control and directed their staff to do the same. In all, the geographic reorganization took about three years to implement successfully.
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Learn from one of the best turnaround leaders of our time, Lou Gerstner of IBM. Take a page from Gerstner’s playbook on how to reinvigorate a quickly...
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