How Louis Gerstner Got an Elephant to Dance....

There is no doubt in many people's minds that Louis V. Gerstner Jr did turn a behemoth around in the early 1990's. It was initially in the news, which is what the public heard and learned of what he needed to do (and did) and there were those who "lived it" (as I and thousands of others did).

I won't go into too many details in this article, as you can read his book "Who says Elephants Can't Dance?". A first hand detailed account for which this writer (and thousands of others) can testify as to its accuracy. For those interested, it is a good read"... I will cover a level of details that I believe are relevant to the topic and points to make related to why you are most likely reading this.

By the time the board voted Louis Gerstner into the company, things happened very quickly and were in pretty bad shape...In retrospect (and some comparisons to some well known corporate downfalls), it did have some similarities to Enron and WorldCom (without the corruption factor). The troubles were more focused on the corporations operational model getting completely turned over in favor of new emerging technologies that the world believed was "better". I am talking about the differences of making and selling propriatary hardware and software (mainframe technology) geared towards large enterprises (and governments) to "Personal Computer" hardware and a myriad of new hardware and (more open) software with the promise of lowering computing costs enterprise solution development and implementation (Client Server technology). Looking back it am seemed to change SO fast...

When Louis Gerstner came on-board, the legacy management team had already "given up" on its traditional operating model and decided to slice the company up into pieces that they thought were "strengths"and of value (and sellable) and began acting upon them. For example, they formed an Education Company, a Consulting Company etc.

The stock price drops were in the "billions"... The media was pressing Gerstner "hard" for his "Vision" for the company for which he made statements such as "the last thing" this company "needs now is a vision". The company "bleeding" each and every day for which "I" need to stop first...

However, . one unique aspect Lou had in his favor coming into a dire situation is that he KNEW he had the complete backing of the board and that "things had to happen"....

COMMUNICATION

Louis Gerstner first started by leaning about the corporations culture. He then made immediate changes to those aspects that he thought was "wrong" or needed improvement. The one thing I distinctly remember was his immediate change to communicating with the entire corporation worldwide... He learned about our internal ( Mainframe) "PROFS" email system, got an ID and immediately began to write us.... ALL of us.... This was NEVER done before.... At this point in time, he did it im in a very personal way.. He shared his observations and his personal thoughts...

EMPOWERMENT

Lou was big on empowerment which was also a topic in many follow on emails. One that I distinctly remember ( took to heart mysel) and used in a client "situation", was one based on doing "what was right for the customer" regardless of internal processes and bureaucracy at the time. Based on what he wrote in the note, I "KNEW" I could write him directly if I was internally challenged and that he "had my back". I am positive many others did similar things that "made a difference" in our overall performance during that period of time.

DECISION

After getting beyond the media "hounding him" for his vision and strategy for a/the turnaround, once he had time to breath, he quickly DID a deep dive analysis on the existing strategy of the legacy leadership came to the conclusion (and decision) that the company still had great strength and value in the world due to its resources, skills, size and global reach. He thought/believed breaking up the company into pieces was a mistake and took up the challenge to reverse what was already in motion. lookout back today, this was the right thing to do.

He used the personal email communication I referenced to communicate the decision to all, and put the wheels in motion to "Pull the company back together as one" and move forward. I personally experienced this decision and rapid change as I " fell into" a consulting spin-off called ISSC. At this point in time, we officially moved over to it for one week and received first (and one and only) ISSC paycheck when the email came out. We were" back into the company" the following week into what eventually became Business Consulting Services followed by a later name change to Global Business Services. Things happened quickly back then.... They had to...

VISION AND STRATEGY

Once the decision too "pull the company back together" was made and some quick "corrections" acted upon , the official "Turnaround Vision and Strategy" was refined and upon upon to "stop the bleeding" and begin the rebuilding for which the "Elephant could be taught to dance" through a more organised and structured approach.

Many more changes took place all around the world in the few years that followed. The stock began to stabilize, the media was more "forgiving" and "the Turnaround" took place...

LESSONS LEARNED

Louis Gerstner could "Make the Elephant Dance" because he was a "man of decision" (good ones based on his history and experience). He was inquisitive, a logical thinker, a good communicator. He was an empower-er of people who had the backing of key people and company entities that allowed him to be bold and make quick and tough decisions that could/did "make a difference" in a dire situation.

While not all business situations need to be dire to drive dramatic or major changes, some of the lessons learned from Louis Gerstner and what he did. No matter whether you need to "Make an Elephant Dance, turn a/the Ship around or make Business changes or any type", you can/will be successful by doing what Lou did that was /is relevant to almost any business scenario:

A) Be prepared to be a decision maker (or ensure you have some in place are in place for the effort)

B) ACT with a sence of urgency in all that is done with the effort. This makes people "act" as well.

C) Have the backing/support/buy-in of key people or entities relevant to the effort)

D) Be inquisitive to learn about the deeper details so analysis and decisions for change can be "decided" upon.

E) Select a good (and the right) communication channel to get the thoughts and information out to the right audience

F) Be an empower-er of people. Communicate it and encourage it. You will be surprised on the positive results and outcomes this can/will produce.

"A" is paramount and critical to driving change (with the other points in place and support of a)