What challenges did Gerstner and Welsh face in changing IBM's culture and how did they overcome them?

Gerstner and Welsh faced the challenge of changing IBM's culture from a technology-focused company to a services-oriented company. This was a significant shift as it required changing the mindset of the employees and the overall direction of the company. They overcame this challenge by leveraging their backgrounds and experiences. Gerstner, as a former IBM customer, understood the need for holistic technology solutions. Welsh, on the other hand, had the vision for a services company. Together, they worked to implement this new strategy, despite the resistance they faced from the existing IBM culture.

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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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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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