In the 20th century, a select group

In the 20th century, a select group of leaders — General Motor’s Alfred Sloan, HP’s David Packard and Bill Hewlett, and GE’s Jack Welch — set the standard for the way corporations are run. In the 21st century only IBM’s Sam Palmisano has done so.

When Palmisano retired this month, the media chronicled his success by focusing on IBM’s 21% annual growth in earnings per share and its increase in market capitalization to $218 billion. But IBM hasn’t flourished because it kowtows to Wall Street. In fact, five years after Palmisano took over, IBM stock was stuck where it had been when his tenure began.

The real story behind IBM’s success is the course Palmisano set for 21st century global enterprises. Recognizing that the company’s command-and-control culture wouldn’t work in the 21st century, he defined leadership as leading by values and created a unique collaborative organizational structure.

In 2002 Palmisano succeeded a legendary leader in Lou Gerstner, who saved IBM from being broken up and put it on a viable course. Whereas Gerstner famously declared “the last thing IBM needs is a vision,” Palmisano had a clear vision for the company. He saw its unique strength as offering complete solutions tailored to customers’ needs — something no other company could match. To concentrate on customer solutions, Palmisano spun off personal computers and disk drives and acquired PriceWaterhouseCoopers’ consulting business.

Executing this strategy required seamless integration of IBM’s product capabilities with its geographic reach. This meant abandoning IBM’s existing organization, in which product silos and geographic entities operated independently and frequently were more competitive than collaborative. Palmisano reorganized IBM into a “globally integrated enterprise” focused on worldwide collaboration. He cajoled, pushed, and pulled the company into a client-centric, agile structure able to customize delivery of IBM’s software assets, hardware assets, and intellectual property.

With 440,000 employees in 170 countries, Palmisano recognized that IBM couldn’t be run solely from the top; rather, it needed thousands of leaders operating collaboratively around the globe to fulfill its customers’ diverse needs. His first act was to abolish IBM’s corporate executive committee.

Palmisano understood that reorganizing IBM’s formal structure wouldn’t be sufficient; he had to thoroughly transform the company’s culture and do so in a sustainable way. His ingenious first step toward creating a collaborative culture was a massive, global collaboration. In 2003 he launched an online, interactive “values jam” involving all employees for 72 hours to determine what IBM’s values should be. The three principles that emerged from that event guided decision-making throughout the organization, giving IBM’s huge, globally dispersed workforce the discipline necessary to execute the company’s new strategy.

Palmisano could not have succeeded at placing values at the center of IBM’s operations without strong principles of his own. These are the qualities I believe made him the best CEO, so far, of the 21st century:

Humility and openness. Palmisano has an engaging manner and keen sense of humor. Colleagues say his humility and humor are disarming. In a speech on IBM’s 100th anniversary, he said:

The old model of the heroic superman is increasingly archaic. The most active and successful leaders today see themselves as part of the global community and peer groups. They listen as well as they speak. Never confuse charisma with leadership. The first job of a leader is to enable an organization to survive without him or her. The key to that is to build a sustainable culture.

He practiced this by listening intently to employees throughout the organization. He also talked to customers on a daily basis and circumnavigated the globe six times a year to meet customers in person. These relationships were essential in gaining the confidence of customers who had qualms about outsourcing to IBM.

Patience and a long-term view. Palmisano warned against prioritizing shareholders or other constituents, calling this “a false choice,” and explaining that “Long-term management is a serious challenge in a world driven by short-term thinking. Forward-thinking leaders are not just achieving measurable success in the short-term. They are innovating in ways that create virtuous circles for a generation or more.” He was comfortable making smart bets to position IBM for decades-long growth, such as creating the Emerging Business Organization to incubate new businesses and shield them from P&L pressures. And his time leading IBM’s Asia-Pacific business taught him about the value of building long-term relationships, not just doing transactions.

Directness. Palmisano believes the technology industry requires “a high-performance, in-your-face, speak-your-mind culture.” He’s personable, but blunt. Known for walking out of long meetings to make sales calls, he shortened IBM’s two-month annual budget process to six days. Instead of formal performance reviews, he regularly engaged in short conversations, focusing on key initiatives. Many who know him cite his impatience as a strength; it kept him relentlessly focused on execution.


Pragmatism. When the U.S. government cut back on work permits for foreign nationals, IBM had thousands of Indian employees forced to return to their home country. He turned that problem into competitive advantage by relocating most of IBM’s software operations to India as its Indian operations grew from 3,000 to 100,000 employees. He also forced partners and distributors to commit in writing to uphold IBM’s strict ethical standards. In 2009 he called off the $7 billion acquisition of Sun Microsystems in part due to Sun’s egregious golden parachutes.

As Palmisano built IBM into the world’s leading information technology company, its competitors dithered. HP suffered from a progression of strategic missteps and failed leaders. Microsoft’s enterprise services stagnated. Cisco now sells mostly commoditized products. In contrast, IBM kept laser-like focus on building the global organization to execute its strategy, and financial results followed.

Palmisano once said, “The CEO is not the brand! It is not about you. You are a temporary steward of a wonderful enterprise, so leave it in better shape than you find it.” As he concludes his career, he leaves his successor, Virginia Rometty, with an iconic giant poised to dominate its industry for decades to come.

This post draws upon several resources, including: the IBM archives; Palmisano’s own article, “The Globally Integrated Enterprise” in Foreign Affairst and his speech on the Future of Leadership; a Harvard Business Review interview with Palmisano, “Leading Change When Business is Good;” Rosabeth Moss Kanter’s case on IBM and Joseph Bower and Sonja Ellington Hout’s case on IBM. The author and Sam Palmisano together serve on the board of directors of the Exxon Mobil Corporation.

Kết quả (Việt) 1:

In the 20th century, a select group of leaders — General Motor’s Alfred Sloan, HP’s David Packard and Bill Hewlett, and GE’s Jack Welch — set the standard for the way corporations are run. In the 21st century only IBM’s Sam Palmisano has done so.When Palmisano retired this month, the media chronicled his success by focusing on IBM’s 21% annual growth in earnings per share and its increase in market capitalization to $218 billion. But IBM hasn’t flourished because it kowtows to Wall Street. In fact, five years after Palmisano took over, IBM stock was stuck where it had been when his tenure began.The real story behind IBM’s success is the course Palmisano set for 21st century global enterprises. Recognizing that the company’s command-and-control culture wouldn’t work in the 21st century, he defined leadership as leading by values and created a unique collaborative organizational structure.In 2002 Palmisano succeeded a legendary leader in Lou Gerstner, who saved IBM from being broken up and put it on a viable course. Whereas Gerstner famously declared “the last thing IBM needs is a vision,” Palmisano had a clear vision for the company. He saw its unique strength as offering complete solutions tailored to customers’ needs — something no other company could match. To concentrate on customer solutions, Palmisano spun off personal computers and disk drives and acquired PriceWaterhouseCoopers’ consulting business.Thực hiện chiến lược này yêu cầu các tích hợp liền mạch của sản phẩm của IBM đạt được khả năng với địa lý của nó. Điều này có nghĩa là bỏ của IBM sẵn có tổ chức, trong đó sản phẩm silos và các tổ chức địa lý hoạt động một cách độc lập và thường xuyên cạnh tranh hơn so với hợp tác. Palmisano tổ chức lại IBM thành một "doanh nghiệp toàn cầu tích hợp" tập trung vào nghiên cứu khoa học trên toàn thế giới. Ông cajoled, đẩy và kéo công ty thành một cấu trúc Trung tâm khách hàng, nhanh nhẹn thể tùy chỉnh phân phối các tài sản phần mềm, phần cứng tài sản và tài sản trí tuệ của IBM.440.000 nhân viên trong 170 quốc gia, Palmisano công nhận rằng IBM không thể chạy hoàn toàn từ đầu; thay vào đó, nó cần thiết hàng nghìn nhà lãnh đạo hoạt động hợp tác toàn cầu để đáp ứng nhu cầu đa dạng của khách hàng của mình. Hành động đầu tiên của mình đã là bãi bỏ Ban chấp hành công ty của IBM.Palmisano hiểu rằng tổ chức lại cơ cấu chính thức của IBM sẽ không được đầy đủ; ông đã hoàn toàn biến đổi văn hóa của công ty và làm như vậy trong một cách bền vững. Bước đầu tiên của ông khéo léo hướng tới việc tạo ra một nền văn hóa hợp tác là một sự hợp tác toàn cầu lớn. Năm 2003, ông đưa ra một trực tuyến, tương tác "giá trị giơ" liên quan đến tất cả nhân viên trong 72 giờ để xác định giá trị của những gì IBM nên. Ba nguyên tắc nổi lên từ sự kiện đó đã hướng dẫn các quyết định trong suốt tổ chức, cho của IBM rất lớn, trên toàn cầu phân tán lực lượng lao động kỷ luật cần thiết để thực hiện chiến lược mới của công ty.Palmisano không có thể đã thành công tại đặt giá trị ở trung tâm của IBM hoạt động mà không có các nguyên tắc mạnh mẽ của mình. Đây là những phẩm chất mà tôi tin rằng làm cho anh ta tốt nhất tổng giám đốc, cho đến nay, của thế kỷ 21:Khiêm tốn và cởi mở. Palmisano đã một cách hấp dẫn và các cảm giác quan tâm của hài hước. Đồng nghiệp nói sự khiêm nhường và hài hước của mình là disarming. Trong một bài phát biểu ngày kỷ niệm 100 năm của IBM, ông cho biết:Mô hình cũ của anh hùng superman là ngày càng cổ. Các nhà lãnh đạo hoạt động và thành công nhất hôm nay xem mình như là một phần của các nhóm cộng đồng và đồng đẳng toàn cầu. Họ nghe cũng như họ nói. Không bao giờ gây nhầm lẫn uy tín với lãnh đạo. Công việc đầu tiên của một nhà lãnh đạo là để cho phép một tổ chức để tồn tại mà không có anh ta hoặc cô ấy. Điều quan trọng đó là xây dựng một nền văn hóa bền vững.Ông thực hiện điều này bằng cách lắng nghe chăm chú để các nhân viên trong suốt tổ chức. Ông cũng đã nói chuyện với khách hàng trên cơ sở hàng ngày và circumnavigated toàn cầu sáu lần một năm để đáp ứng khách hàng trong người. Các mối quan hệ được thiết yếu trong việc đạt được sự tự tin của khách hàng có qualms về gia công phần mềm IBM.Patience and a long-term view. Palmisano warned against prioritizing shareholders or other constituents, calling this “a false choice,” and explaining that “Long-term management is a serious challenge in a world driven by short-term thinking. Forward-thinking leaders are not just achieving measurable success in the short-term. They are innovating in ways that create virtuous circles for a generation or more.” He was comfortable making smart bets to position IBM for decades-long growth, such as creating the Emerging Business Organization to incubate new businesses and shield them from P&L pressures. And his time leading IBM’s Asia-Pacific business taught him about the value of building long-term relationships, not just doing transactions.Directness. Palmisano believes the technology industry requires “a high-performance, in-your-face, speak-your-mind culture.” He’s personable, but blunt. Known for walking out of long meetings to make sales calls, he shortened IBM’s two-month annual budget process to six days. Instead of formal performance reviews, he regularly engaged in short conversations, focusing on key initiatives. Many who know him cite his impatience as a strength; it kept him relentlessly focused on execution.Pragmatism. When the U.S. government cut back on work permits for foreign nationals, IBM had thousands of Indian employees forced to return to their home country. He turned that problem into competitive advantage by relocating most of IBM’s software operations to India as its Indian operations grew from 3,000 to 100,000 employees. He also forced partners and distributors to commit in writing to uphold IBM’s strict ethical standards. In 2009 he called off the $7 billion acquisition of Sun Microsystems in part due to Sun’s egregious golden parachutes.As Palmisano built IBM into the world’s leading information technology company, its competitors dithered. HP suffered from a progression of strategic missteps and failed leaders. Microsoft’s enterprise services stagnated. Cisco now sells mostly commoditized products. In contrast, IBM kept laser-like focus on building the global organization to execute its strategy, and financial results followed.Palmisano once said, “The CEO is not the brand! It is not about you. You are a temporary steward of a wonderful enterprise, so leave it in better shape than you find it.” As he concludes his career, he leaves his successor, Virginia Rometty, with an iconic giant poised to dominate its industry for decades to come.This post draws upon several resources, including: the IBM archives; Palmisano’s own article, “The Globally Integrated Enterprise” in Foreign Affairst and his speech on the Future of Leadership; a Harvard Business Review interview with Palmisano, “Leading Change When Business is Good;” Rosabeth Moss Kanter’s case on IBM and Joseph Bower and Sonja Ellington Hout’s case on IBM. The author and Sam Palmisano together serve on the board of directors of the Exxon Mobil Corporation.