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Entrepreneurs and managers can learn several lessons from Gerstner's approach to organizational structure. Firstly, the importance of unity in an organization. Gerstner believed in keeping IBM together rather than selling off individual business units. This decision was against the industry analysts' suggestions, showing the importance of strong leadership and conviction in one's decisions. Secondly, the value of being an integrator in a market full of specialized entities. Gerstner saw the opportunity for IBM to meet a valuable need by staying together and playing the role of an integrator. Lastly, the value of past experiences. Gerstner's confidence in his position was bolstered by his previous experience as an IBM customer.
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From the beginning, Gerstner's vision in a united IBM with a strong services arm was at the forefront of his leadership. One of the first decisions he made upon coming into IBM was the decision to keep IBM together rather than sell off the individual business units. Industry analysts suggested that IBM would be able to best realize shareholder value by breaking apart and showing their cards with their more valuable units. However, in a world where there were endless companies offering "puzzle pieces" but few players willing and able to be the "integrator," Gerstner knew IBM would meet a valuable need by staying together and playing that role. He was confident in his position because of his previous experience being an IBM customer as head of American Express and later RJR Nabisco.
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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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