Question
The turnaround story of IBM under Lou Gerstner's leadership challenges existing paradigms of organizational structure and culture in several ways. Firstly, it shows that even a company with a deeply ingrained culture and structure can change and adapt to new market realities. Secondly, it demonstrates the importance of customer focus, as opposed to internal politics, in driving success. Lastly, it underscores the need for strong performance metrics and accountability in fostering a high-performance culture.
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A phenomenon of working at a company that had enjoyed long-term market dominance for some time was that the culture had become inoculated from many of the pressures of competitors and surviving in a typical marketplace. Customer needs were easily ignored, employees were more focused on internal politics than in beating back competitors, and performance ratings and their implications were weak.
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