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Gerstner and Welsh anticipated several challenges in implementing their new strategy against IBM's existing culture. The primary challenge was the entrenched culture of IBM, which was resistant to change. The company had a long history of operating in a certain way, and shifting towards a service-oriented approach was a significant departure from their traditional business model. Additionally, they had to convince the employees, stakeholders, and customers about the viability of this new direction. The transformation also required significant investment in new skills, technologies, and processes, which was another major challenge.
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Gerstner's background as an IBM customer informed his decisions both to keep the company together and to invest heavily in becoming a services player. While customers were faced with an endless supply of technology solutions, no one was effectively stepping up to the plate to help them put it all together, solving their business problems with technology solutions. Gerstner wanted to take them there, shoulder to shoulder with Dennie Welsh, who's heading up IBM's Integrated Systems Services Corporation. Welsh was the one to initially come to Gerstner with the vision for a services company. The type of service offering he pitched to Gerstner fit precisely with the strategy both to remain an integrated IBM as well as matched the need for holistic technology solutions that Gerstner had experienced as a CEO in other industries. However exciting, both men agreed it would be an uphill battle working against IBM culture to implement the new strategy. Despite all the extra effort it required, th...
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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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