PowerPoint Presentation

Who says elephants cant dancePresented by Thirumeninathangrabbing holdstrategyculturelessons Learnedobservationslegacy

. . . Grabbing holdevaluatein a fish bowlimportant decisionshold the visionreengineerrevive the brandpay for performanceIBMBad pressToo many competitors Angry customersBureaucratic approachLosing money and negative cash flows

Lou GerstnerManagement consultancy in McKinseyExperience in highly charged corporate environmentsHas experience as an IBM customerProven change agent

. . . evaluate

Symbolized American technology might and R & D prowess Leader in the industry and too many customers had a stake in survivalNational treasure many competitors in the hardware, software, middleware markets watching every move . . . in a fish bowlFirst ImpressionsImmediate stepsCFO & HR hiring Culture reset

. . . important decisions

Stop the spin-offs Change the economic model cut wasteReengineer from milking the cow to growing market shareSell underproductive assets to raise cash. . . important decisions

Bringing the B back into focus

Tough market minded strategies for every business instead of a grand over-arching vision

More integrated solutions (rather than less)

Improve customer responsiveness, time to market. . . hold the vision

Phase out Management Council push power to CEC / WMCBuild a new boardEmployee Communications

Creating a global enterprisePower bases and fiefdomsFocus on global relationship

. . . reengineer

Revitalize the brandCentralize branding effortsOne agency for unified messagingCoherence in brand building across geographies more bang for the buck

Some successful campaignsSolutions for the small planeteBusiness

. . . branding

. . . pay for performanceOld rewards common, fixed rewards, internal benchmarks, entitlementNew rewards variable rewards, differentiation, external benchmarks and based on performance

Stock options as rewards rather than aligning the executives with share holders.

. . . strategiesmaking the betsservices businesssoftware businessresearch and licensingfallacies and myths

. . . making the betsEmerging trendsServices basedNetwork computing orientedA post PC world. . . services business

The key to integration servicesBuilding the organizationAbility to recommend competitors productsLending the balance-sheet Recruitment, training, compensation and HR processesNegotiate profitable contracts, price skills, assess risks and walk away from bad contracts and bad deals. . . software business

OS/2 vs Windows4000 software productsReduction of 30 labs to 8Consolidated 60 brands to 6Focus on middleware (blue ocean)Lotus acquisition. . . research and licensingInability to convert inventions into products for the market placeLicensing gives the capability to set standardsR & D expenses recouped with new revenue streamsExiting businesses which does not make senseDRAM businessApplication software business partnership with SiebelTelco IBM network AT & TChallenges to exit the PC market

. . . fallacies and mythsThe fallacy that the best technology always wins a bitter but vital lesson OS/2Myth of account control and the efforts to maintain itApplication software

. . . culturebasic beliefsculture of noleading by principlesIBMs moonshot. . . basic beliefsExcellence in everything we do quest for perfection, led to checks and balances, bureaucracy Superior customer service became more administrative did not look at what customers needed and their businesses neededRespect for the individual reflected in the compensation and evaluation system not in sync with the times

Dress code the whyFollowing basic beliefs as a ritual without understanding the why

. . . the culture of noNon-concurr management systemSoft request I did not agree with youDysfunctional bureaucracy and jockeyingIBM-ismsPresiders over process

. . . leading by principlesMore customer oriented rather than IBM focussedMore passionate about competition and loss of market share, leadership position and downsizingCustomer satisfaction and shareholder value are the driving factorsSense of urgencySenior leadership Group to focus on leadership and change

. . . the moonshotKeeping the crisis as the focus of attentionMarket place based missioneBusiness the whole organization focussed on winning customer mind share as the moonshot

. . . lessons learnedknow and love your businessall about executionleadership is personaland elephants can dance. . . know and love thy businessFocus on core businessGrowth through acquisition only when there is value for both and not for acquiring new market position or new marketsMarket intelligence wins warsGood strategy long on details, allocate resources and zero sum planning every few years to weed out (sunk costs / survival of the fattest)

. . . tis all about executionInspection not expectation translation of strategy to resultsSolid processes to achieve key success factors for e.g. product designFeeling a high performance culture

. . . Leadership is personalPrerequisites of the next CEOHigh EnergyStrong bias for actionStrategic senseAbility to motivate othersStrong team builderOrg culture which tends to ask for forgiveness rather than permission destroys soon

. . . and elephants can danceDecentralization for faster decision making was meant for another eraOrg wide changes lead to turf battles and become costly affairsOverheads are high without real value addsScale of economiesFor true integration and clustering resources around the needs of the customers shift powerMeasure and reward the future not the pastWalk the talk

. . . observationsthe industrycorporations and the community. . . the industryIndustryNo common industry associations for IT hyper competitiveAnnihilation of competitors, increasing returns and networking effect Constant hunt for the next big waveSystemToo focused on short term gainsBoard only of external directorsHigh taxation on speculative trading and bring back ownership based economy

. . . corporations and the communityThe media trolls, rumor mongers, biased ignoreUnder promise and outperform talk to reporters with an insightful story line on the industryAnalysts and the 90 day myopiaBeyond check book philanthropy engage in real change

. . . legacy

. . . Thank you!!!