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Management philosophy and practices - by IBM Former CEO Louis V. Gerstner,Jr.

 Management philosophy and practices

Louis Gerstner joined IBN in 1993. In that time IBM was going through the big loss and its revenue was sinking like stone. The IBM was almost dead at that time. In that time Gerstner took over the company rein and applied his management skills to get back the company into profit. Some of his management philosophy and practices which helped the company to come out from this cumbersome situation are summarized here (In Gerstner own lines).

• I manage by principle, not by procedure.

•  The marketplace dictates everything we should do.
 

•  I’m a big believer in quality, strong competitive strategies and plans, teamwork, payoff for performance, and ethical responsibility.

•  I look for people who work to solve problems and help colleagues. I sack politicians.

•  I am heavily involved I strategy; the rest is yours to implement. Just keep me informed in an informal way. Don’t hide bad information – I hate surprises. Don’t try blow things by me. Solve problems laterally; don’t keep bringing them up the line.

•  Move fast. If we make mistakes, let them be because we are too fast rather than too slow.

•  Hierarchy means very little to me. Let’s put together in meetings the people who can help solve a problem, regardless of position. Reduce committees and meetings to a minimum. No committee decision making. Let’s have lots of candid. Straightforwardness communications.

•  I don’t completely understand the technology. I will need to learn it, but don’t expect me to master it. The unit leaders must be the translators into business terms for me.

  Reference : From the book "Who says Elephants Can't Dance?" by Louis V. Gerstner, Jr.

Louis V. Gerstner, Jr.

Louis Vincent Gerstner, Jr. was chairman of the board and chief executive officer of IBM from April 1993 until 2002 when he retired as CEO in March and chairman in December. He is largely credited with turning around IBM's fortunes. Wikipedia

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