Books I’ve Read

Greulich portrays the essential beliefs -focused culture as wonderful — and surely they were for most employees. But were they a highly effective business approach in terms of any meaningful metrics beyond employee loyalty and attitude? For instance: if the culture was so excellent, why were there so many layers of management, therefore much bureaucracy, resulting in such a higher administrative and general expenditure? How is it that the firm made so many errors that it found itself at the brink of bankruptcy (just prior to Lou Gerstner’s turn as CEO in 1993)?

Why could it be that main action items which Mr. Gerstner discovered for IBM’s recovery was to refocus the entire firm on client success? This even though the compass had discovered service to the customer as a basic belief explicitly. It doesn’t appear difficult to assume why someone would believe that it is time to eliminate this ineffective constitution.

To spend significant funds “just” to make sure workforce loyalty and pleasure may have appeared irrelevant to him. He was earned to “fix the figures explicitly,” therefore the key question is, so how exactly does a “historical IBM basic beliefs method of the labor force” help the combination of margin improvement, revenue generation, and new product investment necessary to succeed? This would be considered a very interesting research topic.

In the post-Gerstner command era at IBM, Mr. Palmisano (and then Ms. Rometty) got over as CEO. Unlike Mr. Gerstner, these were very long time IBM employees; they could remember the basic values that Mr. Greulich details as IBM’s constitution. Mr. Palmisano chooses to restructure those basic values using insight from his “ideals jam” to rebuild them.

  • 6 years ago from New Delhi, India
  • Microsoft Excel
  • The credit crisis limited financing associated with international trade
  • TrustNow Essentials
  • Oregon – Indiana ACO
  • 2015-01-02 Dividend on 43.65075 stocks at 67¢ per share: $29.25
  • Oval lower – this style of diamond looks marvellous on everyone
  • Mainstream global companies

Presumably he thought that approach would resonate with his employee base. The net was: commitment to every client’s success, the technology that matters, and trust and personal responsibility in every relationship. Notably though, Mr. Palmisano’s list was all about how exactly the employees should respond and not about how the company should act towards those employees.

Why might this be the case? What adaptations might allow a loyal employee base and not unreasonable add to costs highly? The key difference between these questions and the ones in (2) above are that here the lead executives were quite familiar with the old culture, instead of Mr. Gerstner who had no prior IBM employment experience.

As much as IBM had been an anomaly in its corporate and business culture before the early 1990s, in the 21st hundred years today’s IBM seems to act with the norm. Most (if not absolutely all) US companies eliminated their described benefit pension plans within the last twenty years. Recent college graduates are told they should expect to change careers frequently rather than sticking with the same firm for decades (as their parents might have). Is this propaganda to reflect the discontinuation of great benefit models that would encourage a long-term labor force, or is it a representation of the changing values of American companies (i.e., towards a service provider -like, transactional and short-term romantic relationship with employees)? Are there US -centered companies today that reveal the “old IBM culture” – and if so, how are they doing on any metrics? Does Costco fit the model? If so, is their retention rate a consequence, and a significant benefit? How about companies in the rest of the world?

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