RIP Lou Gerstner – IBM Whisperer

I was saddened to hear of the passing of Lou Gerstner who was CEO of IBM beginning in 1993. He was a powerful force and the first IBM CEO recruited from “outside.” Arguably he saved the company.

For those who didn’t live through it, it’s hard to convey just how close IBM came to disaster in those days – before Lou arrived. I was there. We knew we had a problem. The question was whether we were willing to face it.

I remember a meeting of Canadian sales managers – Toronto, circa 1990 – where a senior executive opened the event by reading a sombre ‘press release…’ IBM was being purchased by a Japanese company. Job loss was inevitable.

You could hear a pin drop.

After a few heavy minutes, the charade was exposed – it wasn’t real. “This could happen, and it will if we don’t change” we were told. It was a powerful lesson in creating a true burning platform.

I joined IBM Canada as a Sales Representative and Sales Manager in 1981, before Lou took the helm. A decade later I later became National Manager of Market Driven Quality. I was on the turnaround team. I remember organizing customer focus groups across Canada. Many were brutal. Customers were angry. We had stopped listening – and it showed.

The crisis wasn’t only cultural. We also failed to fully understand the rise of the PC and the importance of selling services. Big Blue sold big iron. But the market had already shifted. Lou Gerstner understood these forces. He knew that transformation requires a sense of crisis. He forced IBM to confront reality – and change.

IBM was my first real job, and an incredible one for which I am truly grateful. Great customers. Exceptional colleagues. Superior products. And a front-row seat to a remarkable turnaround.

Rest in peace, Lou.

Image Source: Globe and Mail and Kathy Willens/ Associated Press

Lou Gerstner Speaking

A shout out to social entrepreneurs

Social entrepreneurship is hot right now, especially among young people. Its evident in the class room when students talk about business and its evident from the growing numbers of social ventures in our communities. Social entrepreneurship is where monetary profit becomes a tool to accomplish people-centred objectives. More than economic activity, social entrepreneurs give society inspiring world-changing solutions. And we need them now more than ever. Social entrepreneurship matters because it maximizes social benefit for many rather than maximizing profit for a few.

A brilliant example of social entrepreneurship can be found in Hope Blooms who burst onto the national stage in 2008 winning the hearts of Canadians including most of the CBC Dragons. Only Kevin O’Leary was a hold out to their ask, sticking to his oft used excuse that he doesn’t invest in charity. He didn’t get it. Scrooge didn’t either until it was almost too late. The other Dragons were taken by the story, which is now regarded as one of the top ten Dragon’s Den pitches of all time. The Hope Blooms youth who made that first step were not unlike the ones who recently opened up the Toronto market so that Hope Blooms products can now be found at the Loblaws store in Maple Leaf Gardens. They are Halifax inner city kids. They are bold entrepreneurs.

Hope Blooms builds community and change. While they grow, transform, package, and sell food in the form of dressings and teas, what they really produce is people. Hope Blooms alumni are now attending post secondary institutions including Stanford University, University of Toronto, St. Francis Xavier University and others. When shoppers chose Hope Blooms dressings at their local Loblaws store they are investing in future leaders who will soon make our world a better, more inclusive, and loving place. They are investing in social entrepreneurs. Jessie Jollymore, Hope Blooms founder, is a classic social entrepreneur. Her dogged commitment to planting seeds and harvesting dreams is an inspiration to us all. Thank you Jessie and all the social entrepreneurs who are leading change in our economy and our world. Keep up the great work.