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
Jules Fauteux 