A small business can apply Gerstner's decision to keep IBM together by focusing on integration and synergy among its various units or departments. Instead of breaking apart the business into separate entities, the business should strive to work as a cohesive unit, leveraging the strengths of each part to create a more robust and versatile whole. This approach can help the business meet a broader range of customer needs and adapt more quickly to market changes. It's also important to note that this strategy requires strong leadership and a clear vision, as demonstrated by Gerstner at IBM.
This question was asked on the following book summary:
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...
Go to dashboard to download stunning resources
Download
Text this question was asked on:
From the beginning, Gerstner's vision in a united IBM with a strong services arm was at the forefront of his leadership. One of the first decisions he made upon coming into IBM was the decision to keep IBM together rather than sell off the individual business units. Industry analysts suggested that IBM would be able to best realize shareholder value by breaking apart and showing their cards with their more valuable units. However, in a world where there were endless companies offering "puzzle pieces" but few players willing and able to be the "integrator," Gerstner knew IBM would meet a valuable need by staying together and playing that role. He was confident in his position because of his previous experience being an IBM customer as head of American Express and later RJR Nabisco.
Ask another question
How can you evolve your organization for the better while carrying out the changes seamlessly and effectively? Use our Change Management presentation to plan out a smooth and well-organized handling of changes within your organization.
Change can be difficult. But effective management of the change process can lead to long-lasting improvements for both the business and its people. From principles to implementation, use our Change Management deck to welcome a culture of positive evolution.
How can you drive higher team productivity, lower risk, and faster time to market in today's digital space? Follow this Agile Method for Digital Product presentation to innovate traditional approaches and do more with what you have.
Tap into new markets and achieve higher returns for your investments. Use our Emerging Markets presentation to inspire expansion at global level for your organization and reap impressive rewards that outweigh market volatility.