A small business can use the strategies employed by Lou Gerstner at IBM in several ways. Firstly, they can challenge traditional values and practices that may be hindering growth or innovation. This could involve reevaluating company culture, dress codes, benefits, and hierarchical structures. Secondly, they can implement a system where ideas are not easily vetoed, promoting a culture of innovation and risk-taking. Lastly, they can ensure that employees have opportunities for growth and development within the company, such as through mentorship programs or opportunities to work closely with top executives.

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

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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Gerstner inherited a culture of traditional values. Employees wore white shirts and dark ties and received generous benefits. Part of moving upwards at IBM required becoming an administrative assistant to top executives for a time, sitting at the back of meetings and taking notes while at the beck and call of your boss. Other odd practices were in place, too, like the fact that almost anyone could veto any proposal along its way to fruition. One simply had to state that they were "non-concurring," and a project would be stopped in its tracks.

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A small business can implement the winning strategy and culture behind IBM's successful turnaround by adopting a few key practices. First, it's important to challenge traditional values and practices that may be hindering progress. This could mean changing dress codes, benefits, or hierarchical structures that are outdated. Second, it's crucial to eliminate practices that allow for unnecessary roadblocks in decision-making processes. For example, IBM had a practice where almost anyone could veto a proposal, which often led to projects being stopped in their tracks. By eliminating such practices, a small business can ensure smoother operations and quicker decision-making. Lastly, it's important to foster a culture of change and adaptability, as this was a key factor in IBM's turnaround.

Startups can learn several strategies from IBM's turnaround to tackle outdated organizational structures. Firstly, they can adopt a culture of change and flexibility, as opposed to sticking to traditional values and practices. Secondly, they can implement a system where decisions are not hindered by unnecessary bureaucracy, as was the case with IBM where any proposal could be vetoed. Lastly, they can ensure that the path to upward mobility within the organization is based on merit and performance, rather than on serving as an administrative assistant to top executives.

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