louis gerstner jr

LEADERSHIP AND PROFESSIONAL DEVELOPMENT Assignment Leader’s traits

Submitted to Prof. Amjad Ali

Submitted B Ali Murtaza L1F12BBAM0445

Se!tion E

Person"

Louis Vin!ent #erstner $r% (born March 1 1!42 in Min"ola #"$ %or&' i an Am"rican

 buin"man b"t &no$n for hi t"nur" a chairman of th" board and chi"f ")"cuti*" offic"r  of +BM from A,ril 1!!- until 2002 $h"n h" r"tir"d a E/ in March and chairman in "c"mb"r. " i lar"l3 cr"dit"d $ith turnin around +BM fortun". " $a form"rl3 E/ of 6 #abico and alo h"ld "nior ,oition at Am"rican E),r" and Mc7in"3 8 om,an3. " i a raduat" of haminad" ih 9chool (1!5!' artmouth oll"" (1!:-' and hold an MBA from th" ar*ard Buin" 9chool. " i a form"r m"mb"r of th" 9t""rin ommitt"" of th" Bild"rb"r ;rou,.

Introdu!tion and &i'e (istor"

" too& o*"r a E/ in 1!!- a 3"ar th" com,an3 ,ot"d an <= billion lo and +BM har" that had old for <4- in 1!=> could b" had for <12. +BM? @,ro,"ct for ur*i*al ar" *"r3 bl"a& $rot" th" author of th" boo& Computer Wars. h" Economist   doubt"d $h"th"r @a com,an3 of  +BM? iz" ho$"*"r oraniz"d can "*"r r"act Cuic&l3 "nouh to com,"t". And Larr3 Ellion of  /racl" comm"nt"dD @+BM " don?t "*"n thin& about tho" u3 an3mor". h"3?r" not d"ad  but th"3?r" irr"l"*ant. " d"clin"d th" job $h"n it $a firt off"r"d h" a3 b"cau" h" f"lt h" didn?t ha*" th" t"chnical &no$Gho$ to handl" it. But it turn"d out that hi mot im,ortant d"ciion $"r"n?t ba"d on t"chnolo3 but on hi ,at "),"ri"nc" a an +BM cutom"r. For ;"rtn"r th" firt ord"r of buin" $a ma&in th" com,an3 ol*"nt. Hnd"r hi uidanc" +BM cut billion in "),"n" (,artl3 throuh mai*" la3off' and rai"d cah b3 "llin a"t. ;"rtn"r a3 that f"$ ,"o,l" "*"n und"rtood ho$ ,"riloul3 clo" th" firm $a to runnin out of cah. +n 1!!- mor" than !0I of +BM? ,rofit cam" from it mainfram" al" $hich $"r" in&in fat. on*"ntional $idom had it that th" main fram" $a im,l3 loin out to ,"ronal com,ut"r. But ;"rtn"r? 11 3"ar a h"ad of Am"rican E),r"? tra*"lGr"lat"d "r*ic" di*iion told him oth"r$i".

%ou can?t run a $orldG$id" cr"dit card buin" on a P. %ou can?t run an airlin" on a P. Main fram" $"r" till n""d"d. +BM? ,robl"m h" l"arn"d $a not ,roduct but ,ric". " a&"d $h3 th" com,an3 hadn?t lo$"r"d it ,ric" to m""t th" com,"tition. @B"cau" $"?ll lo" ubtantial r"*"nu" and ,rofit $h"n $" n""d th"m badl3 h" $a told. #ot ")actl3 lonGt"rm thin&in. @;"t m" a ,ric" r"duction ,lan in t$o $""& h" aid. Plan to br"a& u, +BM into mall"r u,,o"dl3 mor" nimbl" buin"" $"r" $"ll und"r$a3 $h"n ;"rtn"r arri*"d. hat mad" no "n" to him a a form"r cutom"r h" aid. +t $a tru" that cutom"r no lon"r $ant"d to b" loc&"d into a inl" u,,li"r li&" +BM for all th"ir information t"chnolo3 n""d. But n"ith"r did th"3 r"lih th" ta& of ,ic&in and chooin from amon thouand of u,,li"r to build a $or&in 3t"m. @At th" "nd of th" da3 in "*"r3 indutr3 th"r"? an int"rator ;"rtn"r $rit". And h" f"lt that +BM $ith it iz" and r"ach $a uniCu"l3 ,oition"d to fill that rol".

;"rtn"r call hi d"ciion to &"", +BM to"th"r @th" mot im,ortant d"ciion + "*"r mad" J not  jut at +BM but in m3 "ntir" buin" car""r. %"t h" alo ma&" it cl"ar that it $a on" of th" "ai"t. For ;"rtn"r th" touh"t chall"n" h" fac"d in r"ju*"natin +BM J and th" ubj"ct of mot of  hi boo& J $a chanin th" +BM cultur". @ultur" in?t jut on" a,"ct of th" am" h" $rit". @+t is th" am". hat do" th" cultur" r"$ard and ,unih J indi*idual achi"*"m"nt or t"am ,la3 ri& ta&in or con"nu buildin h"n h" arri*"d h" found a com,an3 totall3 focu"d on it int"rnal rul" and conflict. @Hnit com,"t"d $ith "ach oth"r hid thin from "ach oth"r. u" taff ,"nt countl" hour d"batin and manain tranf"r ,ricin t"rm b"t$""n +BM unit int"ad of facilitatin a "a ml" tranf"r  of ,roduct to cutom"r. " found h" $a ,r"idin o*"r a $orldG$id" coll"ction of ,o$"rful fi"fdom "ach on"  j"aloul3 uardin it o$n ,ri*il"" and ,r"roati*". " dico*"r"d that Euro,"an "m,lo3"" $"r"n?t r"c"i*in hi "Gmail b"cau" th" h"ad of +BMGEuro," $a int"rc",tin th"m. h" ")"c had d""m"d th" m"a" @ina,,ro,riat" for hi "m,lo3"". ;"rtn"r ummon"d th" ")"c to

Armon& to inform him that tho" "m,lo3"" h" ,r"um"d to ,rot"ct didn?t b"lon to him but to +BM. ;"rtn"r found a com,an3 that $a o,"ratin a if +BM till rul"d th" com,ut"r $orld. And h"?d had ,"ronal "),"ri"nc" $ith $hat that could m"an to cutom"r. h"n h" $a at Am"rican E),r" ;"rtn"r r"call"d an +BM r",r""ntati*" $ithdr"$ all u,,ort for a mai*" cr"dit card data c"nt"r b"cau" th" mana"r th"r" had intall"d a inl" Amdahl com,ut"r in a facilit3 that  ,r"*ioul3 had b""n 100I +BMG"Cui,,"d. h"n ;"rtn"r arri*"d at +BM h" dico*"r"d that +BM not Microoft $a th" bi"t oft$ar" com,an3 in th" $orld but non" of th" oft$ar" +BM old $or&"d $ith an3thin oth"r than +BM hard$ar". ;"rtn"r ot a lot of ,ublicit3 for abolihin +BM? famou $hit" hirt and ti" dr" cod" but that $a th" l"at of hi chan"Gth"Gcultur" "ffort. " launch"d +BM on it ucc"ful trat"3 of  off"rin @olution to cutom"r that in *iolation of hitoric +BM tradition miht $"ll includ" hard$ar" and oft$ar" manufactur"d b3 +BM com,"titor. " committ"d +BM to o,"n tandard o that it ,roduct could b" u"d b3 com,"titor and *ic" *"ra. " d"cid"d that ,ro*idin com,utin "r*ic" J @tranf"r 3our + o,"ration to u J $a mor" im,ortant to +BM? futur" than ,ro*idin hard$ar".  #on" of thi $"nt do$n "ail3. @hanin th" attitud" and b"ha*ior of thouand of ,"o,l" i *"r3 *"r3 hard to accom,lih ;"rtn"r $rit". @%ou can?t im,l3 i*" a cou,l" of ,""ch" or $rit" a n"$ cr"do for th" com,an3 and d"clar" that a n"$ cultur" ha ta&"n hold. %ou can?t mandat" it can?t "nin""r it. hat 3ou can do i cr"at" th" condition for tranformation ,ro*id" inc"nti*". ;"rtn"r "nt out a t"ad3 tr"am of "Gmail to +BM "m,lo3"" to &"", th"m ,ot"d about $hat $a oin on. (" includ" a am,lin of tho" communication in an a,,"ndi).' " chan"d th" com,"nation 3t"m o that r"$ard $"r" ba"d on total cor,orat" ,"rformanc" rath"r than di*iion or unit ,"rformanc". " chan"d th" rul" for "ttin ,romotion. ;"rtn"r t"ll of a&in on" of +BM? mot "nior ")"cuti*" to i*" him a d"tail"d anal3i of a mon"3 loin buin". hr"" da3 lat"r $h"n h" a&"d about it th" ")"c aidD @+?ll ch"c& $ith th" t"am and "t bac& to 3ou. Aft"r t$o mor" imilar r",on" ;"rtn"r told th" ")"cD @h3

don?t 3ou jut i*" m" th" nam" of th" ,"ron doin th" $or&. +?ll ,"a& dir"ctl3 to him. " "),lain that "nior ")"cuti*" at +BM $"r" "),"ct"d to ,r"id" to r"*i"$. h"3 didn?t do th" $or&. /f cour" h" chan"d that too. ;"rtn"r $ho t",,"d do$n a E/ in March and r"tir" a chairman of th" board in 6anuar3 a3 h" $a luc&3 at +BM b"cau" d",it" it inular cultur" th" ,lac" $a rich $ith cr"ati*" tal"nt that onl3 n""d"d to b" "t loo". " not" that th" h"ad of "*"r3 major buin" unit toda3 i a lonGtim" +BM"r a i hi ucc"or a E/ 9al Palmiano. Mi)"d in $ith m"mori" of +BM ar" ;"rtn"r? o,inion on uch ubj"ct a in*"tm"nt ban&"r. " dili&" th"m. @h"3 ma&" mon"3 comin and oin. h"3 ma&" hu" f"" t"llin A8 to  bu3 u, "*"r3thin in iht th"n ma&" mor" hu" f"" h"l,in A8 "ll off "*"r3thin. " lo" no o,,ortunit3 to ni," at Microoft. " r"lat" ho$ Bill ;at" @$an?t ha,,3 $h"n an +BM "curit3 uard fail"d to r"coniz" him and a*" him th" $ron id"ntit3 bad". h"r" ar" critic $ho a3 that +BM? turnaround in?t a t"rrific a ;"rtn"r $ould ha*" 3ou thin& ("*"n thouh lat 3"ar? ,rofit $"r" <= billion' b"cau" r"*"nu" $a boot"d b3 a contro*"rial $itch in th" +BM ,"nion ,lan and th" toc& ,ric" $a inflat"d b3 a major   bu3bac& "ffort

Leaders(i) traits"

1. Ins)ire a!tion" i action in,ir" "m,lo3"" to $or& hard and com,"t" th"ir chall"n"r a th"3 $"r" facin d"clin". +t i cl"ar from ca" ho$ h" moti*at"d "m,lo3"" and d"*"lo, ucc"ful trat"i" to m""t obj"cti*". 2. (a*e integrit" " ,o" int"rit3 in him a h" mad" cl"ar action to brin bac& +BM from road of  d"clin" to ucc". houh h" don?t ha*" an3 t"chnical bac&round a tat"d h" $or&"d hard to unit" "m,lo3"" b3 "ttin ")am,l". +%  Moti*ator" " moti*at" "m,lo3"" to $or& hard. " "t com,"nation $ith th"ir ,"rformanc" in ord"r to ma&" "m,lo3"" $or& mor" "ffici"ntl3 a com,an3 at that tim" n""d"d in a lot ,%  -on'ident"

" don?t ha*" t"chnical bac&round in ,it" of that h" mad" man3 d"ciion that ta&" +BM to ucc" ,ath li&" do$nizin brinin all unit to"th"r chan" of cultur" ar" f"$ of   bold t", ta&"n b3 him $hich ho$ h" $a Cuit" confid"nt about ma&in d"ciion. .%  -ommuni!ati*e" " join"d all ,art of +BM and communicat" $ith all oth"r unit of +BM outid" Am"rica. " u" to mail "*"r3 "m,lo3"" about all th" chan" and d"ciion ta&"n in +BM h"adCuart"r. /%  Passion" " ur"l3 ha*" ,aion of ta&in +BM bac& to ucc" rout". i d"ciion totall3 ho$ hi ,aionat" natur" about hi job. 0%  Inno*ator"

h"n h" join"d +BM h" imm"diat"l3 chan" oal of +BM. " d"in"d n"$ trat"i" for com,an3. " ad*i"d to r"d"in ,roduct or launch n"$ ,roduct. For cot cuttin and "arl3 r"*"nu" "n"ration h" ord"r to "ll ")tra thin. 1%  Patien!e"

h"n h" d"in"d n"$ road ma, for th" com,an3 h" ha to fac" critic. " fac"d all critic $ith ,ati"nc" and humbl"n". Lat"r on hi d"ciion $"r" ,ro*"d to b b"t for th" com,an3. 2%  trustab&e"

h"n h" mad" n"$ oal and im,l"m"nt th"m on oranization at that tim" h" ha to fac" lot of critic. But h" r"main tuc& to it oal and uid" oranization to ucc" ,ath. hi ho$ that h" $a lo3al to th" com,an3 and can b" trut"d in crii tim". 34% -ommunit bui&der"

" mad" com,an3 a a communit3 of t"chnolo3 $h"r" job $"r" ain"d accordin to  ,"rf"ction. B"for" him all d",artm"nt $"r" com,"tin $ith "ach oth"r but aft"r him +BM $a li&" a am" unit. 33%  Visionar"

h"n h" join"d +BM h" mad" n"$ trat"i" to achi"*" oal. " mad" uch oal that can l"ad com,an3 to ,rofit. " introduc" n"$ thin in mar&"t that a*" ri" to +BM. hrouh thi $" can und"rtand hi *iionar3 ,o$"r for l"ad"rhi,. 35% Dri*e to a!(ie*e"

i ,olici" and d"ciion l"d ,"o,l" to o aaint him. But h" r"main $ith hi d"ciion. +n th"n "nd hi d"ciion l"d com,an3 to ucc". " ta&" com,an3 to ,rofit ta" aain. hi ho$ hi ,o$"r that l"ad to achi"*"m"nt. 3+% Persone& !(risma"

h"n h" join"d +BM h" ha to fac" criticim from "m,lo3"" b"cau" of hi ,olici". but till hi ubordinat" follo$ him in hi *iion $hich ultimat"l3 l"ad com,an3 to ucc". " ha om"thin that attract ,"o,l" to$ard him and ma&" th"m follo$ him r"ardl" of th"ir li&in and dili&in. hi ho$ h" ha charima in him that $a ur"l3 hi ,"ronn"l charima. 3,%  Tena!it"

" ha to fac" criticim b"cau" of hi la3off and all oth"r trat"i" hi r"main tic& to hi oal and ,olici" that ho$ hi t"nacit3 abilit3.

3.%  Auto!rati!"

i ,olici" $h"n h" join"d +BM ho$ that h" $a autocratic l"ad"r a h" do $hat h" thouht of doin no matt"r $hat "*"r h" ha to fac".