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A manufacturing company could apply Gerstner's approach by reorganizing its structure based on global industry teams rather than geography. This would involve segmenting customers into different industry groups and reallocating resources accordingly. The company would need to ensure each group has adequate budget and personnel. This process may face resistance from those accustomed to the old structure, and it could take several years to implement successfully. However, this approach could help the company to better meet the needs of its customers and adapt to global market trends.
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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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