How can startups learn from Lou Gerstner's strategy to maintain market share?

Startups can learn from Lou Gerstner's strategy by focusing on stopping the 'hemorrhaging of cash' and maintaining market share. This can be achieved by making tough decisions, reevaluating financials, and working with investment bankers if necessary. It's also important to tackle outdated organizational structures and reinvigorate the company, as Gerstner did with IBM.

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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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When his tenure started, there was a flurry of activity cleaning up financials and working with investment bankers to prepare for individual IPOs. He quickly put an end to that and began making a series of tough decisions to stop the "hemorrhaging of cash" and maintain a quickly-eroding market share.

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Lou Gerstner implemented several cultural changes at IBM that played a crucial role in the company's turnaround. Firstly, he shifted the company's focus from hardware to services, which was a significant departure from IBM's traditional business model. Secondly, he fostered a customer-centric culture, emphasizing the importance of understanding and meeting customer needs. Thirdly, he dismantled the company's bureaucratic structure, promoting a more collaborative and agile work environment. These changes not only helped IBM recover from its financial crisis but also repositioned it as a global leader in the IT services industry.

1. Prioritize financial stability: Gerstner halted the hemorrhaging of cash at IBM, demonstrating the importance of financial health for any organization.

2. Make tough decisions: Gerstner wasn't afraid to make difficult choices to maintain market share, showing that effective leadership often requires courage and decisiveness.

3. Challenge outdated structures: Gerstner's turnaround of IBM involved tackling outdated organizational structures, suggesting that entrepreneurs and managers should be willing to innovate and adapt.

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